Accounting Policies of Supreme Facility Management Ltd. Company

Mar 31, 2025

1 Corporate information

Supreme Facility Management Private Limited was
incorporated on 19 May, 2005. Presently, the issued
and paid-up capital of the company is 2,48,29,200
Equity shares of '' 10 each. From 1st March 2024 the
company has been converted from Private Limited
to Public Limited.The Company is having registered
office situated at "Kohinoor World Tower, Tower - 3,
10th Floor, Office No. 1002 To 1005, Old Pune Mumbai
Highway, Chinchwad East, Pune - 411019" & is
engaged in Integrated Facility Management,
Employee Transportation, Production Support
Services and Supply Chain Management. Integrated
Facility Management Includes Housekeeping,
Manpower Supply, Staffing and Other Services related
to Facility Management.

2.1 Basis of accounting and preparation of financial
statements

The financial statements of the Company have been
prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) to
comply with the Accounting Standards notified under
Section 211 (3C) of the Companies Act, 1956 ("the
1956 Act") (which continue to be applicable in respect
of Section 133 of the Companies Act, 2013 ("the 2013
Act") in terms of General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs)
and the relevant provisions of the 1956 Act /the 2013
Act, as applicable. The financial statements have been
prepared on accrual basis under the historical cost
convention on a going concern basis.

2.2 Use of estimates

The preparation of the financial statements in
conformity with Indian GAAP requires the
Management to make estimates and assumptions
considered in the reported amounts of assets and
liabilities(including contingent liabilities) and the
reported income and expenses during the year. The
Management believes that the estimates used in
preparation of the financial statements are prudent
and reasonable. Future results could differ due to
these estimates and the differences between the
actual results and the estimates are recognised in the
periods in which the results are known / materialised.

2.3 Inventories

Inventories are valued at the lower of cost (on FIFO /
weighted average basis) and the net realisable value
after providing for obsolescence and other losses,
where considered necessary. Cost includes all charges
in bringing the goods to the point of sale, including
octroi and other levies, transit insurance and receiving
charges. Work-in-progress and finished goods include
appropriate proportion of overheads and, where
applicable, GST.

2.4 Cash and cash equivalents (for purposes of Cash
Flow Statement)

Cash comprises cash on hand and demand deposits
with banks. Cash equivalents are short-term balances
(with an original maturity of three months or less from
the date of acquisition), highly liquid investments that
are readily convertible into known amounts of cash
and which are subject to insignificant risk of changes
in value.

2.5 Cash flow statement

Cash flows are reported using the indirect method,
whereby profit / (loss) before extraordinary items and
tax is adjusted for the effects of transactions of non¬
cash nature and any deferrals or accruals of past or
future cash receipts or payments. The cash flows from
operating, investing and financing activities of the
Company are segregated based on the available
information.

2.6 Depreciation and amortisation

Depreciation has been provided on the Straight Line
method as per the rates prescribed in Schedule II (Sec.
123) to the Companies Act, 2013

2.7 Revenue recognition

The Company derives business primarily from
Integrated Facility Management, Employee
Transportation, Production support services. Revenue
is recognised upon transfer of control of promised
product or services to the customer in an amount
that reflects the consideration the company has
received or expects to receive in exchange for these
products or services. Revenue is recognised to the
extent that it is possible that the economic benefits
will flow to the Company and the revenue can be

reliably measured regardless of when the payment is
being made. Goods and Services Tax (GST) is collected
by company on behalf of the government and the
same is deposited on the due dates as per the GST
Laws. Thus the same is excluded from revenue.

2.8 Other income

Interest income is accounted on accrual basis. Rental
Income is recognized based on the rent due as per
the contract.

2.9 Tangible fixed assets

Fixed assets are carried at cost less accumulated
depreciation and impairment losses, if any. The cost
of fixed assets includes interest on borrowings
attributable to acquisition of qualifying fixed assets
up to the date the asset is ready for its intended use
and other incidental expenses incurred up to that
date. Exchange differences arising on restatement /
settlement of long-term foreign currency borrowings
relating to acquisition of depreciable fixed assets are
adjusted to the cost of the respective assets and
depreciated over the remaining useful life of such
assets. Machinery spares which can be used only in
connection with an item of fixed asset and whose use
is expected to be irregular are capitalised and
depreciated over the useful life of the principal item
of the relevant assets. Subsequent expenditure
relating to fixed assets is capitalised only if such
expenditure results in an increase in the future
benefits from such asset beyond its previously
assessed standard of performance.Fixed assets
acquired and put to use for project purpose are
capitalised and depreciation thereon is included in
the project cost till commissioning of the project.

Fixed assets acquired in full or part exchange for
another asset are recorded at the fair market value
or the net book value of the asset given up, adjusted
for any balancing cash consideration. Fair market
value is determined either for the assets acquired or
asset given up, whichever is more clearly evident.
Fixed assets acquired in exchange for securities of
the Company are recorded at the fair market value of
the assets or the fair market value of the securities
issued, whichever is more clearly evident.

Fixed assets retired from active use and held for sale
are stated at the lower of their net book value and
net realisable value and are disclosed separately in
the Balance Sheet.

Capital work-in-progress:

Projects under which assets are not ready for their
intended use and other capital work-in-progress are
carried at cost, comprising direct cost, related
incidental expenses and attributable interest.

2.10 Foreign currency transactions and translations

Transactions in foreign currencies entered into by the
Company and its integral foreign operations are
accounted at the exchange rates prevailing on the
date of the transaction or at rates that closely
approximate the rate at the date of the transaction.

Measurement of foreign currency monetary items at
the Balance Sheet date

Foreign currency monetary items (other than
derivative contracts) of the Company and its net
investment in non-integral foreign operations
outstanding at the Balance Sheet date are restated
at the year-end rates.In the case of integral operations,
assets and liabilities (other than non-monetary items),
are translated at the exchange rate prevailing on the
Balance Sheet date. Non-monetary items are carried
at historical cost. Revenue and expenses are translated
at the average exchange rates prevailing during the
year. Exchange differences arising out of these
translations are charged to the Statement of Profit
and Loss.

Treatment of exchange differences

Exchange differences arising on settlement /
restatement of short-term foreign currency monetary
assets and liabilities of the Company and its integral
foreign operations are recognised as income or
expense in the Statement of Profit and Loss. The
exchange differences on restatement / settlement of
loans to non-integral foreign operations that are
considered as net investment in such operations are
accumulated in a "Foreign currency translation
reserve" until disposal / recovery of the net
investment.The exchange differences arising on
restatement / settlement of long-term foreign
currency monetary items are capitalised as part of
the depreciable fixed assets to which the monetary
item relates and depreciated over the remaining
useful life of such assets or amortised on settlement
/ over the maturity period of such items if such items
do not relate to acquisition of depreciable fixed assets.
The unamortised balance is carried in the Balance
Sheet as "Foreign currency monetary item translation
difference account" net of the tax effect thereon.

Accounting of forward contracts

Premium / discount on forward exchange contracts,
which are not intended for trading or speculation
purposes, are amortised over the period of the
contracts if such contracts relate to monetary items
as at the Balance Sheet date.

2.11 Government grants, subsidies and export
incentives

Government grants and subsidies are recognised
when there is reasonable assurance that the Company
will comply with the conditions attached to them and
the grants / subsidy will be received. Government
grants whose primary condition is that the Company
should purchase, construct or otherwise acquire
capital assets are presented by deducting them from
the carrying value of the assets. The grant is
recognised as income over the life of a depreciable
asset by way of a reduced depreciation charge.

Export benefits are accounted for in the year of
exports based on eligibility and when there is no
uncertainty in receiving the same.

Government grants in the nature of promoters''
contribution like investment subsidy, where no
repayment is ordinarily expected in respect thereof,
are treated as capital reserve. Government grants in
the form of non-monetary assets, given at a
concessional rate, are recorded on the basis of their
acquisition cost. In case the non-monetary asset is
given free of cost, the grant is recorded at a nominal
value.Other government grants and subsidies are
recognised as income over the periods necessary to
match them with the costs for which they are intended
to compensate, on a systematic basis.

2.12 Investments

Long-term investments (excluding investment
properties), are carried individually at cost less
provision for diminution, other than temporary, in the
value of such investments. Current investments are
carried individually, at the lower of cost and fair value.
Cost of investments include acquisition charges such
as brokerage, fees and duties. Investment properties
are carried individually at cost less accumulated
depreciation and impairment, if any. Investment
properties are capitalised and depreciated (where
applicable) in accordance with the policy stated for
Tangible Fixed Assets. Impairment of investment
property is determined in accordance with the policy
stated for Impairment of Assets.

2.13 Employee benefits

Employee benefits include provident fund,
superannuation fund, gratuity fund, compensated
absences, long service awards and post-employment
medical benefits.

Defined contribution plans

The Company''s contribution to provident fund and
superannuation fund are considered as defined
contribution plans and are charged as an expense as
they fall due based on the amount of contribution
required to be made.

Short-term employee benefits

The undiscounted amount of short-term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognised
during the year when the employees render the
service. These benefits include performance incentive
and compensated absences which are expected to
occur within twelve months after the end of the period
in which the employee renders the related service.
The cost of such compensated absences is accounted
as under :(a) in case of accumulated compensated
absences, when employees render the services that
increase their entitlement of future compensated
absences; and(b) in case of non-accumulating
compensated absences, when the absences occur.

Long-term employee benefits

Compensated absences which are not expected to
occur within twelve months after the end of the period
in which the employee renders the related service are
recognised as a liability at the present value of the
defined benefit obligation as at the Balance Sheet
date less the fair value of the plan assets out of which
the obligations are expected to be settled. Long
Service Awards are recognised as a liability at the
present value of the defined benefit obligation as at
the Balance Sheet date.

2.14 Borrowing costs

Borrowing costs include interest, amortisation of
ancillary costs incurred and exchange differences
arising from foreign currency borrowings to the extent
they are regarded as an adjustment to the interest
cost. Costs in connection with the borrowing of funds
to the extent not directly related to the acquisition of
qualifying assets are charged to the Statement of
Profit and Loss over the tenure of the loan. Borrowing
costs, allocated to and utilised for qualifying assets,

pertaining to the period from commencement of
activities relating to construction / development of
the qualifying asset upto the date of capitalisation of
such asset is added to the cost of the assets.
Capitalisation of borrowing costs is suspended and
charged to the Statement of Profit and Loss during
extended periods when active development activity
on the qualifying assets is interrupted.

2.15 Segment reporting

The Company identifies primary segments based on
the dominant source, nature of risks and returns and
the internal organisation and management structure.
The operating segments are the segments for which
separate financial information is available and for
which operating profit/loss amounts are evaluated
regularly by the executive Management in deciding
how to allocate resources and in assessing
performance.

The accounting policies adopted for segment
reporting are in line with the accounting policies of
the Company. Segment revenue, segment expenses,
segment assets and segment liabilities have been
identified to segments on the basis of their
relationship to the operating activities of the segment.
Inter-segment revenue is accounted on the basis of
transactions which are primarily determined based
on market / fair value factors. Revenue, expenses,
assets and liabilities which relate to the Company as
a whole and are not allocable to segments on
reasonable basis have been included under
"unallocated revenue / expenses / assets / liabilities".

2.16 Leases

Where the Company as a lessor leases assets under
finance leases, such amounts are recognised as
receivables at an amount equal to the net investment
in the lease and the finance income is recognised
based on a constant rate of return on the outstanding
net investment.Assets leased by the Company in its
capacity as lessee where substantially all the risks and
rewards of ownership vest in the Company are
classified as finance leases. Such leases are capitalised
at the inception of the lease at the lower of the fair
value and the present value of the minimum lease
payments and a liability is created for an equivalent
amount. Each lease rental paid is allocated between
the liability and the interest cost so as to obtain a
constant periodic rate of interest on the outstanding
liability for each year.Lease arrangements where the
risks and rewards incidental to ownership of an asset
substantially vest with the lessor are recognised as
operating leases. Lease rentals under operating leases
are recognised in the Statement of Profit and Loss
on a straight-line basis.

2.17 Earnings per share

Basic earnings per share is computed by dividing the
profit / (loss) after tax (including the post tax effect
of extraordinary items, if any) by the weighted average
number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing
the profit / (loss) after tax (including the post tax effect
of extraordinary items, if any) as adjusted for dividend,
interest and other charges to expense or income
relating to the dilutive potential equity shares, by the
weighted average number of equity shares considered
for deriving basic earnings per share and the weighted
average number of equity shares which could have
been issued on the conversion of all dilutive potential
equity shares. Potential equity shares are deemed to
be dilutive only if their conversion to equity shares
would decrease the net profit per share from
continuing ordinary operations. Potential dilutive
equity shares are deemed to be converted as at the
beginning of the period, unless they have been issued
at a later date. The dilutive potential equity shares
are adjusted for the proceeds receivable had the
shares been actually issued at fair value (i.e. average
market value of the outstanding shares). Dilutive
potential equity shares are determined independently
for each period presented. The number of equity
shares and potentially dilutive equity shares are
adjusted for share splits / reverse share splits and
bonus shares, as appropriate.

2.18 Taxes on income

Current tax is the amount of tax payable on the
taxable income for the year as determined in
accordance with the provisions of the Income Tax Act,
1961.Minimum Alternate Tax (MAT) paid in
accordance with the tax laws, which gives future
economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there
is convincing evidence that the Company will pay
normal income tax. Accordingly, MAT is recognised
as an asset in the Balance Sheet when it is probable
that future economic benefit associated with it will
flow to the Company.Deferred tax is recognised on
timing differences, being the differences between the
taxable income and the accounting income that
originate in one period and are capable of reversal in

one or more subsequent periods. Deferred tax is
measured using the tax rates and the tax laws enacted
or substantially enacted as at the reporting date.
Deferred tax liabilities are recognised for all timing
differences. Deferred tax assets in respect of
unabsorbed depreciation and carry forward of losses
are recognised only if there is virtual certainty that
there will be sufficient future taxable income available
to realise such assets. Deferred tax assets are
recognised for timing differences of other items only
to the extent that reasonable certainty exists that
sufficient future taxable income will be available
against which these can be realised. Deferred tax
assets and liabilities are offset if such items relate to
taxes on income levied by the same governing tax
laws and the Company has a legally enforceable right
for such set off. Deferred tax assets are reviewed at
each Balance Sheet date for their realisability.

Current and deferred tax relating to items directly
recognised in equity are recognised in equity and not
in the Statement of Profit and Loss.

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Mar 31, 2024

Standalone Data Not Available