Accounting Policies of TMT (India) Ltd. Company

Mar 31, 2024

Note: 17 - Accounting Policies under Ind AS:

(A) Significant Accounting Policies

1. Statement of Compliance and basis of preparation of Financial Statements

The financial statements have been prepared in accordance with Indian Accounting Standards
(Ind-AS) as notified by Ministry of Corporate Affairs, Government of India vide Notification
dated February 16, 2015. Accounting policies have been applied consistently to all periods
presented in these financial statements. The Financial Statements are prepared under historical
cost convention from the books of accounts maintained under accrual basis except for certain
financial instruments which are measured at fair value and in accordance with the Indian
Accounting Standards prescribed under the Companies Act, 2013.

2. Application of Indian Accounting Standards (Ind-AS)

All Listed companies are required to adopt Ind AS.

All amounts included in the financial statements are reported in of Indian Rupees (Rupees in
thousands) except number of equity shares and per share data, unless otherwise stated.

3. Use of estimates and judgment

The preparation of financial statements requires judgments, estimates and assumptions to be
made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities
on the date of financial statements and the reported amount of revenues and expenses during
the reporting period. Difference between the actual results and estimates are recognised in the
period in which the results are known/materialised.

4. Functional and presentation currency

These financial statements are presented in Indian rupees, the national currency of India,
which is the functional currency of the Company.

5. Revenue Recognition

i) Trading Income

Revenue from the sale of goods is measured at the fair value of the consideration received
or receivable, net of returns and allowances, trade discount and volume rebates. Revenue
is recognized when the significant risks and rewards of ownership have been transferred
to the buyer, it is probable that economic benefits associated with the transaction will flow
to the entity, the associated costs incurred or to be incurred in respect of the transaction
can be measured reliably and there is no continuing management involvement with the
goods. The point of transfer of risks and rewards depends upon the terms of the contract
of sale with individual customers.

ii) Other Operating Revenue

The income relating to the core activities of the company which are not included in revenue
from sales/services for e.g. dispatch earned, subsidy, claims against losses on trade

transactions, interest on credit sales and trade related advances (other than on overdue)
etc., which are derived based on the terms of related trade agreements with business
associates or schemes on related trade, are accounted for under ''Other Operating
Revenue''.

iii) Claims

Claims are recognized in the Statement of Profit & Loss (Net of any payable) on accrual
basis including receivables from Govt. towards subsidy, cash incentives, reimbursement
of losses etc, when it is not unreasonable to expect ultimate collection. Claims recognized
but subsequently becoming doubtful are provided for through Statement of Profit and
Loss. Insurance claims are accounted upon being accepted by the insurance company.

iv) Service Income

When the outcome of a transaction involving the rendering of services can be estimated
reliably, revenue associated with the transaction shall be recognized by reference to the
stage of completion (Percentage of Completion Method) of the transaction at the end of
the reporting period. The outcome of a transaction can be estimated reliably when all the
following conditions are satisfied:-

a) The amount of revenue can be measured reliably;

b) It is probable that the economic benefits associated with the transaction will flow to
the company;

c) The stage of completion of the transaction can be measured reliably; Costs incurred
for the transaction and to complete the transaction can be measured reliably.

v) Dividend and interest income

Dividend income from investments is recognized when the Company''s right to receive
payment is established and it is probable that the economic benefits associated with the
transactions will flow to the Company and the amount of income can be measured reliably.

Interest income is recognised on a time proportion basis taking into account the amount
outstanding and the effective interest rate, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to the gross carrying
amount of a financial asset.

vi) Revenue Recognition on Actual Realization

Revenue is recognized on accrual basis except in the following items which are accounted
for on actual realization since realizability of such items is uncertain, in accordance with
the provisions of Ind AS-115 :-

a) Duty credit / exemption under various promotional schemes of EXIM policy in force,
Tax credit, refund of custom duty on account of survey shortage, and refund of
income-tax/service tax / sales-tax /VAT and interest thereon etc.

b) Decrees pending for execution/contested dues and interest thereon, if any:

c) Interest on overdue recoverable where realizability is uncertain.

d) Liquidated damages on suppliers/underwriters.

6. Property, Plant and Equipment

All Property, Plant and Equipment (PPE) are stated at carrying value in accordance with previous
GAAP, which is used as deemed cost on the date of transition to Ind AS using the exemption
granted under Ind AS 101.

The cost of an item of property, plant and equipment is recognized as an asset if, and only if it
is probable that future economic benefits associated with the item will flow to the company and
the cost of the item can be measured reliably. The cost of an item of PPE is the cash price
equivalent at the recognition date. The cost of an item of PPE comprises:

i) Purchase price, including import duties and non-refundable purchase taxes, after deducting
trade discounts and rebates.

ii) Costs directly attributable to bringing the PPE to the location and condition necessary for
it to be capable of operating in the manner intended by management.

iii) The initial estimate of the costs of dismantling and removing the item and restoring the
site on which it is located, the obligation for which the company incurs either when the
PPE is acquired or as a consequence of having used the PPE during a particular period
for purposes other than to produce inventories during that period.

The carrying value of assets held by the company has fallen below the residual value and
hence no depreciation has been charged.

7. Non-Current Assets Held for Sale

The company classifies a non-current asset (or disposal group of assets) as held for sale if its
carrying amount will be recovered principally through a sale transaction rather than through
continuing use. The non-current asset (or disposal group) classified as held for sale is measured
at the lower of its carrying amount and the fair value less costs to sell.

8. Depreciation

The carrying value of assets held by the company has fallen below the residual value and
hence depreciation has been charged on WDV basis.

9. Borrowing Costs

The Company capitalizes borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying asset as a part of the cost of the asset.

The Company recognizes other borrowing costs as an expense in the period in which it incurs
them.

A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for
its intended use or sale.

10. Foreign currencies

Transactions in currencies other than the functional currency are recognized at the rates of
exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are re¬
translated at the rates prevailing at that date. Non-monetary items carried at fair value that are
denominated in foreign currencies are re-translated at the rates prevailing at the date when

the fair value was determined. Non-monetary items that are measured in terms of historical
cost in a foreign currency are not re-translated.

Foreign currency monetary items (except overdue recoverable where realizability is uncertain)
are converted using the closing rate as defined in the Ind AS-21. Non-monetary items are
reported using the exchange rate at the date of the transaction. The exchange difference gain/
loss is recognized in the Statement of Profit and Loss.

Liability in foreign currency relating to acquisition of fixed assets is converted using the closing
rate. The difference in exchange is recognized in the Statement of Profit and Loss.

11. Inventory

Inventories are valued at lower of cost or net realizable value.

Basis of determination of cost remain as follows: First in first out basis