Accounting Policies of Triliance Polymers Ltd. Company

Mar 31, 2025

2. Significant accounting policies

The financial statements have been prepared using the significant accounting policies and
measurement basis summarized below. These were used throughout all periods presented in the
financial statements, except where the Company has applied certain accounting policies and
exemptions upon transition to Ind AS.

2.1. Compliance with Indian Accounting Standards

The financial statements of the Company have been prepared in accordance with Indian
Accounting Standards ("Ind AS") notified under the Companies (Indian Accounting Standards)
Rules, 2015 and relevant provisions of the Companies Act, 2013 ("the Act"). The policies set out
below have been consistently applied during the year presented.

For all periods up to and including the year ended 31 March 2017, the Company has prepared its
financial statements in accordance with the accounting standards notified under Companies
(Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act
("Previous GAAP").

2.2. Basis of Preparation and Presentation
Historical cost convention

The financial statements have been prepared under the historical cost convention, as modified
by the following:

i. Certain financial assets and financial liabilities are valued at fair value;

Functional and Presentation Currency

The financial statements are presented in INR, which is also the Company''s functional currency
and all amounts are rounded to the nearest thousand, unless otherwise stated.

Classification of Assets and Liabilities into Current/Non-Current

The Company presents assets and liabilities in the balance sheet based on current/ non-current
classification.

An asset is treated as current when it is:

i. Expected to be realised or intended to be sold or consumed in normal operating cycle

ii. Held primarily for the purpose of trading

iii. Expected to be realised within twelve months after the reporting period, or

iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

i. It is expected to be settled in normal operating cycle

ii. It is held primarily for the purpose of trading

iii. It is due to be settled within twelve months after the reporting period, or

iv. There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their
realisation in cash and cash equivalents. The company has identified twelve months as its
operating cycle.

2.3. Use of Estimates

The preparation of the financial statements is in conformity with Ind AS requires management
to make estimates, judgments and assumptions. These estimates, judgments and assumptions
affect the application of accounting policies and the reported amounts of assets and liabilities,
the disclosures of contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the period. Accounting estimates could
change from period to period. Actual results could differ from those estimates. Appropriate
changes in estimates are made as management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the financial statements in the
period in which changes are made and, if material, their effects are disclosed in the notes to the
financial statements

2.4. Property, Plant and Equipment (PPE)

Property, plant and equipment, if any are stated at cost, less accumulated depreciation and
impairment, if any. Costs directly attributable to acquisition are capitalized until the property,
plant and equipment are ready for use, as intended by management.

An item of property, plant and equipment and any significant part initially recognised is
derecognized upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition of the asset is included in the Statement of
Profit or Loss when the asset is derecognized.

2.5. Intangible Assets

Intangible assets, if any are stated at acquisition cost and other cost incurred, which is
attributable to preparing the asset for its intended use, less accumulated amortization and
accumulated impairment losses, if any. The cost of intangible assets acquired in a business
combination is recorded at fair value on the date of acquisition. Intangible assets are amortised
on straight line basis over their estimated useful economic life not exceeding ten years. An item
of Intangible Asset is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on derecognition of the asset is
included in the Statement of Profit or Loss when the asset is derecognized. The residual values,
useful lives and methods of amortisation of Intangible Assets are reviewed at each financial year
end and adjusted prospectively, if appropriate.

2.6. Financial Instruments

i. Investments and other financial assets
Initial recognition and measurement

The Company recognizes financial assets when it becomes a party to the contractual
provisions of the instrument. All financial assets are recognized at fair value on initial
recognition. Transaction costs that are directly attributable to the acquisition or issue of
financial assets, which are not at fair value through profit or loss, are added to the fair
value on initial recognition. Regular way purchase and sale of financial assets are
accounted for at trade date.

Subsequent measurement

For purposes of subsequent measurement, the Company classifies its financial assets in
the following measurement categories:

• those to be measured subsequently at fair value (either through other
comprehensive income, or through profit or loss), and

• those measured at amortized cost.

The classification depends on the entity''s business model for managing the financial
assets and the contractual terms of the cash flows. For assets measured at fair value,
gains and losses will either be recorded in profit or loss or other comprehensive income.
For investments in debt instruments, this will depend on the business model in which
the investment is held. For investments in equity instruments, this will depend on
whether the Company has made an irrevocable election at the time of initial recognition
to account for the equity investment at fair value through other comprehensive income.

Equity investments

The Company subsequently measures all equity investments at fair value. Where the
Company''s management has elected to present fair value gains and losses for an equity
investments, that is not held for trading, in other comprehensive income, there is no
subsequent reclassification of fair value gains and losses to profit or loss. Dividends
from such investments are recognised in profit or loss as other income when the
Company''s right to receive payments is established. Changes in the fair value of
financial assets at fair value through profit or loss are recognised in the statement of
profit and loss. Impairment losses (and reversal of impairment losses) on equity
investments measured at FVOCI are not reported separately from other changes in fair
value.

Derecognition

A financial asset is derecognised only when:

• the rights to receive cash flows from the asset have expired, or

• the Company has transferred its rights to receive cash flows from the asset or
has assumed an obligation to pay the received cash flows to one or more
recipient

Where the entity has transferred an asset, the Company evaluates whether it has
transferred substantially all risks and rewards of ownership of the financial asset. In
such cases, the financial asset is derecognised. Where the entity has not transferred
substantially all risks and rewards of ownership of the financial asset, the financial asset
is not derecognised.

Where the entity has neither transferred a financial asset nor retains substantially all
risks and rewards of ownership of the financial asset, the financial asset is derecognised
if the Company has not retained control of the financial asset. Where the Company
retains control of the financial asset, the asset is continued to be recognised to the extent
of continuing involvement in the financial asset.

Offsetting Financial instruments

Financial assets and liabilities are offset and the net amount reported in the balance
sheet when there is a legally enforceable right to offset the recognized amounts and
there is an intention to settle on a net basis, or realize the asset and settle the liability
simultaneously.

ii. Financial Liabilities

Classification as debt or equity

Debt and equity instruments, if any issued by the Company are classified as either
financial liabilities or as equity in accordance with the substance of the contractual
arrangements and the definition of a financial liability and an equity instrument. An
equity instrument is any contract that evidences a residual interest in the assets of an
entity after deducting all of its liabilities.

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and
borrowings including bank overdrafts, financial guarantee contracts and derivative
financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described
below:

Borrowings: Borrowings are subsequently carried at amortized cost; any difference
between the proceeds (net of transaction costs) and the redemption value is recognized
in the statement of profit and loss over the period of the borrowings using the effective
interest method. Fees paid on the establishment of loan facilities are recognized as
transaction costs of the loan to the extent that it is probable that some or all of the
facility will be drawn down. In this case, the fee is deferred until the draw-down occurs.
To the extent there is no evidence that it is probable that some or all of the facility will
be drawn down, the fee is capitalized as a pre-payment for liquidity services and
amortized over the period of the facility to which it relates. They are subject to
confirmation and reconciliation and consequential adjustments, if any.

Trade and other payable: These amounts represent obligations to pay for goods or
services that have been acquired in the ordinary course of business from suppliers. They
are subject to confirmation and reconciliation and consequential adjustments, if any.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged
or cancelled or expires. When an existing financial liability is replaced by another from
the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the de¬
recognition of the original liability and the recognition of a new liability. The difference
in the respective carrying amounts is recognised in the statement of profit or loss.

iii. Share Capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the
issue of new shares or options are shown in equity as a deduction, net of tax, from the
proceeds.

Revenue is measured at the fair value of the consideration received or receivable. Amount
disclosed as revenue are inclusive of duty and net of discounts, returns and value added taxes
and amount collected on behalf of third party. The Company recognizes revenue when the
amount of revenue can be reliably measured; when it is probable that future economic benefits
will flow to the entity; and when specific criteria have been met, as described below.

Revenue from sales of goods

Revenue from sale of goods is recognized when all the following conditions have been satisfied:

i. The company has transferred to the buyer the significant risks and rewards of the
ownership of the goods;

ii. The company retains neither continuing managerial involvement to the degree usually
associated with ownership nor effective control over the goods sold;

iii. The amount of revenue can be measured reliably;

iv. It is probable that the economic benefits associated with the transaction will flow to the
company; and

v. The cost incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from Contract Income

Revenue from construction contracts is recognized by reference to the stage of completion of the
construction activity as on Balance Sheet date, as measured by the proportion that contract cost
incurred for work performed to date bear to the estimated total contract cost.

Where the outcome of the construction cannot be estimated reliably, revenue is recognized to
the extent of the construction cost incurred if it is probable that they will be recoverable. In the
case of the contract defined with mile stones and assigned price for each mile stone, it recognize
the revenue on transfer of significant risks and rewards which coincides with achievement of
mile stone and its acceptance by the customers.

Provision is made for all losses incurred to the balance sheet date. Any further losses which are
foreseen in bringing contracts to completion are also recognized.

Contract Revenue earned in excess of billing has been reflected in other current Assets and
Billing in excess of contract revenue has been reflected under Current Liabilities in the Balance
Sheet.

Other Revenue is recognized as follow:
i. Finance Income:

Finance income is recognised as it accrues using the Effective Interest Rate (EIR) method.
EIR is the rate that exactly discounts the estimated future cash payment or receipts over
the expected life of the financial instruments or a shorter period, where appropriate, to

the net carrying amount of the financial asset or liability. Finance income is included in
other income in the profit & Loss Account.

ii. Dividend

Dividends are recognized in profit or loss only when the right to receive payment is
established, it is probable that the economic benefits associated with the dividend will
flow to the Company, and the amount of the dividend can be measured reliably.

2.8. Inventories

Inventories, if any have been measure at lower of Cost and Net Realizable Value.

2.9. Cash and Cash equivalents

Cash and cash equivalents include cash at bank and in hand and deposits held at call with
banks. For the purpose of the cash flows statements, cash and cash equivalents consist of cash
and short-term deposits, as defined above, net of outstanding bank overdrafts as they are
considered an integral part of the Company''s cash management.

2.10. Income Tax

Income tax expense comprises current and deferred income tax. Income tax expense is
recognized in net profit in the statement of profit and loss except to the extent that it relates to
items recognized directly in equity, in which case it is recognized in other comprehensive
income. Current income tax for current and prior periods is recognized at the amount expected
to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have
been enacted or substantively enacted by the balance sheet date. Deferred income tax assets
and liabilities are recognized for all temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets
are reviewed at each reporting date and are reduced to the extent that it is no longer probable
that the related tax benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have
been enacted or substantively enacted by the balance sheet date and are expected to apply to
taxable income in the years in which those temporary differences are expected to be recovered
or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is
recognized as income or expense in the period that includes the enactment or the substantive
enactment date. A deferred income tax asset is recognized to the extent that it is probable that
future taxable profit will be available against which the deductible temporary differences and
tax losses can be utilized. The company offsets current tax assets and current tax liabilities,
where it has a legally enforceable right to setoff the recognized amounts and where it intends
either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Short-term / long term obligations

All employee benefits, if any payable wholly within twelve months of rendering the service
including performance incentives and compensated absences are classified as 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 charged off to the Statement of
Profit and Loss/ Capital Work-in-Progress, as applicable. The employee benefits which are not
expected to occur within twelve months are classified as long term benefits and are recognised
as liability at the net present value.

Defined contribution plan

Contributions to defined contribution schemes such as provident fund, Employees State
Insurance and Pension Plans are charged off to the Statement of Profit and Loss/ Capital s, as
applicable, during the year in which the employee renders the related service.

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Mar 31, 2024

Background

Triliance Polymers Limited (formerly known as Leena Consultancy Limited) is a company limited by shares domiciled in India and incorporated under the provisions of the Companies Act 1956. The registered office of the Company is located at 14th Floor, 1420-B, B & C Wing,

C/66 G Block, One BKC, Opp Bank Of Baroda, Bandra (E), Mumbai City, Mumbai,

Maharashtra, India, 400051. The Company is engaged in the business of Trading. The Company is listed on the Bombay Stock Exchange (BSE)).

Summary of Material Accounting Policies

This note provides a list of the material accounting policies adopted in the presentation of these financial statements.

1.01 BASIS OF PREPARATION

(i) Compliance with Ind AS :

The financial statements comply in all material aspects with Indian Accounting Standards ("Ind AS") notified under Section 133 of the Companies Act, 2013 ("the Act"), and relevant rules issued thereunder . In accordance with proviso to the Rule 4A of the Companies (Accounts) Rules, 2014, the terms used in these financial statements are in accordance with the definitions and other requirements specified in the applicable Accounting standards.

(ii) Authorization of financial statements

The financial statements were approved for issue by Board of Directors on May 30, 2024

(iii) Historical cost convention :

The financial statements have been prepared on a historical cost basis, except certain financial assets and liabilities is measured at fair value.

1.02 FUNCTIONAL AND PRESENTATION CURRENCY

These financial statements are presented in India Rupees (INR), which is also the company''s functional currency. All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs, except where otherwise indicated.

1.03 CLASSIFICATION OF ASSETS AND LIABILITIES INTO CURRENT/NON CURRENT

All assets and liabilities have been classified as current or non-current as per Company''s normal operating cycle. Based on the nature of operations, the Company has ascertained its operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities.

1.04 USE OF JUDGEMENTS, ESTIMATES & ASSUMPTIONS

While preparing financial statements in conformity with Ind AS, the management makes certain estimates and assumptions that require subjective and complex judgments. These judgments affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses, disclosure of contingent liabilities at the statement of financial position date and the reported amount of income and expenses for the reporting period. Financial reporting results rely on our estimate of the effect of certain matters that are inherently uncertain. Future events rarely develop exactly as forecast and the best estimates require adjustments, as actual results may differ from these estimates under different assumptions or conditions. The management continually evaluate these estimates and assumptions based on the most recently available information.

Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are as below:

Key sources of estimation uncertainty

i) Financial instruments; (Refer note 19)

1.05 CASH AND CASH EQUIVALENTS

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

1.06 FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are recognized when a Company becomes a party to the contractual provisions of the instruments.

Initial Recognition and Measurement - Financial Assets and Financial Liabilities

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss and ancillary costs related to borrowings) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in the Statement of Profit and Loss. However, trade receivables that do not contain a significant financial component are measured at transaction price.

Classification and Subsequent Measurement: Financial Assets

The Company classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income ("FVTOCI") or fair value through profit or loss ("FVTPL") on the basis of following:

-the entity''s business model for managing the financial assets and -the contractual cash flow characteristics of the financial asset.

Amortized Cost:

A financial asset is classified and measured at amortized cost if both of the following conditions are met:

-the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

FVTOCI:

A financial asset is classified and measured at FVTOCI if both of the following conditions are met:

-the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

FVTPL:

A financial asset is classified and measured at FVTPL unless it is measured at amortized cost or at FVTOCI.

All recognized financial assets are subsequently measured in their entirety at the amortized cost or fair value, depending on the classification of the financial assets.

Impairment of Financial Assets :

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

Classification and Subsequent measurement: Financial Liabilities

The Company''s financial liabilities include trade payables and other financial liabilities.

Financial Liabilities at FVTPL:

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition as FVTPL. Gains or losses on financial liabilities held for trading are recognized in the Statement of Profit and Loss.

Other Financial Liabilities:

Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortized cost using the effective interest method.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest

rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

Derecognition of Financial Assets and Financial Liabilities:

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred. If the Company enters into transactions whereby it transfers assets recognized on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognized.

A Financial liability is derecognized when the obligation under the liability is discharged or Cancelled or expires.

Write-off:

The gross carrying amount of a financial asset is written off when there no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company''s procedures for recovery of amounts due.

1.07 PROVISIONS

Provisions are recognized when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized for future operating losses.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a current pre-tax rate. The increase in the provision due to the passage of time is recognized as interest expense.

CONTINGENT LIABILITIES

Contingent liabilities are disclosed in the case of:

• a present obligation arising from the past events, when it is not probable that an outflow of resources will be required to settle the obligation;

• a present obligation arising from the past events, when no reliable estimate is possible;

• a possible obligation arising from past events, unless the probability of outflow of resources is remote.

CONTINGENT ASSETS

Contingent Assets is disclosed when inflow of economic benefits is probable.

1.08 REVENUE RECOGNITION Interest

Interest income, if any, is recognized using the effective interest rate method taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the Statement of Profit and Loss.

1.09 EARNINGS PER SHARE (EPS)

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders is adjusted for after income tax effect of interest and other financing cost associated with dilutive potential equity shares and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2010

The Companys accounting policies are as follows :

a) Method of accounting :

The accounts are prepared on the basis of Going Concern Concept and under the historical cost convention. The Company adopts accrual basis in preparation of its accounts to comply in all material aspects with applicable accounting principles in India, the Accounting Standards notified vide Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

b) Use of estimates:

The preparation of financial statement in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of the assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results get materialized.

c) Investments:

Long term investments are stated at cost. Provision for diminution in value of investments is made, if such diminution is of permanent nature in the opinion of the management. Earning from investments is taken into revenue on accrual.

d) Revenue Recognition

The Company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except in case of significant uncertainties about ultimate realization of revenue.

e) Provisions & Contingent liabilities:

Provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. Contingent liabilities are disclosed when the Company has possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

f) Taxation:

i) Provision for Current Tax is made on the basis of taxable profits computed for the current accounting period in accordance with the Income Tax Act, 1961.

ii) Deferred Tax is calculated at the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date and is recognized on timing differences that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets, subject to consideration of prudence, are recognized and carried forward only to the extent that they can be realized.

g) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by number of equity shares outstanding during the period.