Accounting Policies of Tusaldah Ltd. Company

Mar 31, 2024

1.4. Summary of 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.

The standalone financial statements are presented in Indian Rupees, which is the Company''s functional and
presentation currency and all amounts are in Rupee, except as stated otherwise.

a. Current versus non-current classification

The Company presents assets and liabilities in statement of financial position based on current/non -current
classification.

The Company has presented non-current assets and current assets before equity, non-current liabilities and
current liabilities in accordance with Schedule III, Division II of Companies Act, 2013 notified by MCA.

An asset is classified as current when it is:

a. ) Expected to be realised or intended to be sold or consumed in normal operating cycle,

b. ) Held primarily for the purpose of trading

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

d. ) Cash or cash equivalent unless restricted from being exchanged or used to settle liability for at least

twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when it is:

a. ) Expected to be settled in normal operating cycle

b. ) Held primarily for the purpose of trading,

c. ) Due to be settled within twelve months after the reporting period, or

d. ) There is no unconditional right to defer the settlement of the liability for at least twelve months after

the reporting period. All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash
and cash equivalents.

Accordingly, Project related assets& liabilities have been classified in to current & noncurrent based on
operating cycle of respective projects.

All other assets and liabilities have been classified into current and noncurrent on a period of twelve months.
Deferred tax assets and liabilities are classified as non-current assets and liabilities."

b. Inventories

Finished goods:

Finished goods are valued at lower of cost or net realizable value. Cost includes direct materials and labor
and a portion of manufacturing overhead based on normal operating capacity.Net realizable value is the
estimated selling price in the ordinary course of business, less estimated costs of completion and estimated
costs necessary to make the sale. Finished Goods are measured with FIFO method.

WIP and Stores & Spares:

Raw materials, components, stores and spares and work-in progress are valued with FIFO method.

c. Statement of cash flows

Cash flows are reported using the method as prescribed in IND AS 7 ''Statement of Cash flows'', where by net
profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of
past or future operating cash receipts or payments and item of income or expense associated with investing
or financial cash flows. The cash flows from operating, investing and financing activities of the Company are
segregated.

The indirect method of Cash Flow is used by the Company

d. Prior period errors

Prior period errors include omissions and misstatements arising from a failure to use reliable information that
was available or could have been obtained when financial statements for those periods were approved for
issue.

Prior period errors relating to the last comparative period will be shown by restating the comparative figures
of Balance sheet and Profit and loss, wherever necessary. Thus, it will be disclosed in the comparative
financial statements as if the error had not even occurred.

e. Revenue recognition and other income
Revenue on sale of Products

• The Company recognizes revenues on accrual basis and measured it at the fair value of the consideration
received or receivable, net of discounts, volume rebates, GST.

• Effective 01 April 2018, the Company has adopted Indian Accounting Standard 115 (Ind AS 115) -''Revenue
from contracts with customers''

• Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised products
or services to customers in an amount that reflects the consideration the Company expects to receive in
exchange for those products or services.

• The Company does not expect to have any contracts where the period between the transfer of the promised
goods or services to the customer and payment by the customer exceeds one year. As a consequence, it does
not adjust any of the transaction prices for the time value of money.

Other income

• Interest

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the
expected life of financial asset to that asset''s net carrying amount on initial recognition.

• Dividend

Dividend income is recognized when the right to receive dividend is established.

f. Property, plant and equipment

Property, plant and equipment are tangible items that:

(a) are held for use in the production or supply of goods or services, for rental to others, or for administrative

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(b) are expected to be used during more than one period.

On transition to IND AS, the Company has adopted optional exemption under IND AS 101 for carrying
amount of property, plant and equipment.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as
appropriate, only when 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 carrying amount of the replaced part is
derecognised. All other repairs and maintenance are charged to the income statement during the financial
period in which they are incurred.

The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sales proceeds and the carrying amount of the asset and is
recognized in the Statement of Profit and Loss on the date of disposal or retirement.

Capital work-in-progress includes cost of assets at sites, construction expenditure and interest on the funds
deployed.

Depreciation on Property, Plant and equipment''s

Assets are stated at cost less accumulated depreciation/amortization /deletion and impairment loss, if any.
Depreciation is charged on the basis of Straight Line Method over the estimated useful lives based on
technical estimates. Assets residual values and useful lives are reviewed at each financial year end
considering the physical condition of the assets and benchmarking analysis or whenever there are indicators
for review of residual value and useful life. Freehold land and land exceeding 90 years lease are not
depreciated. Estimated useful lives of the assets are as follows:

Categories of Assets Estimated of useful life (in years)

Office Building 30

Plant and Machinery 15

Office equipment, operating and others 5

Computer equipment 3-6

Office furniture and equipment 10

Vehicles 10

Other Assets

(i) Cost of leasehold Improvements is amortized over the lease period,

(ii) Other Tangible assets - Useful lives as specified in Schedule II of Companies Act 2013,

(iii) Buildings being used for project purpose are amortized over the expected period of project completion.

(iv) Assets costing up to Rs.5000/- are fully depreciated in the year of purchase only.

(v) Intangible assets are amortized over a period of five years.

g. Leases

The company evaluates if an arrangement qualifies to be a lease as per the requirements if Ind AS 116.
Identification of a lease requires significant judgement in assessing the lease term (including the anticipated
renewals) and the application discount rate.

The company determines the lease term as the non-cancellable period of lease, together with both period of
lease, together with both periods covered by an option to extend the lease if the company is reasonably
certain to exercise that option; and periods covered by an option to terminate the lease if the company is
reasonably certain to exercise an option to extend lease, or not to exercise an option to terminate a lease, it
considers all relevant facts and circumstances that create an economic incentive for the company to exercise
an option to extend lease, or not to exercise an option to terminate the lease. The company revises the lease
term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated
or for a portfolio of leases with similar characteristics.

h. Employee benefits

Short - term Employee Benefits:-

All employee benefits payable wholly within twelve months of rendering the service are classified as short¬
term employee benefits and they are recognised in the period in which the employee renders the related
services

The Company recognises the undiscounted amount of short-term employee benefits expected to be paid in
exchange for services rendered as a liability after deducting any amount already paid.

Post-employment Benefits:-

Defined Benefit Plan and Other Long-Term Benefits: Retirement benefits in the form of gratuity is determined
on the basis of an actuarial valuation using the projected unit credit method as at Balance Sheet date.

Other long-term benefits in the form of leave encashment is provided based on the percentages notified by
Government guidelines.

Provision for gratuity is made on the basis of actual accrued liability if any.

i. Borrowing cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalized as
part of the cost of such assets. A qualifying assets is one that takes necessarily substantial period of time to
get ready for its intended use. All other borrowing cost are charged to revenue.

j. Earnings Per Share

Basic earnings per share are computed using the net profit for the year attributable to the shareholders'' and
weighted average number of shares outstanding during the year.

Diluted Earnings per share is computed by dividing the profit/(loss) after tax as adjusted for dividend, interest
and other charges to expense or income (net of any attributable taxes) 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 share which could have been issued on conversion of all dilutive
potential equity shares.

k. Impairment of non-financial assets

An asset is considered as impaired when at the date of Balance Sheet there are indications of impairment and
the carrying amount of the asset, or where applicable the cash generating unit to which the asset belongs
exceeds its recoverable amount (i.e. the higher of the net asset selling price and value in use).The carrying
amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the
Statement of Profit and Loss. The impairment loss recognized in the prior accounting period is reversed if
there has been a change in the estimate of recoverable amount. Post impairment, depreciation is provided on
the revised carrying value of the impaired asset over its remaining useful life.

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Mar 31, 2015

A Fixed Assets are stated at cost of acquisition/ construction less accumulated depreciation. The cost includes all the pre-operative expenses and the financing cost of borrowings related to the pre production period. In case of revaluation of assets cost of acquisition is substituted by appropriate value in terms of valuation by competent professional.

B Pursuant to requirement of Schedule II of the Companies Act, 2013 (the Act), Company has revised the useful and residual life of assets and depreciation rates as prescribed under the Schedule II of the Act w.e.f. 1st April, 2014. In case of fixed assets where the residual useful life was nil as at 01-04-2014, the Company has adjusted the net written down values aggregating to Rs. 12,94,848 from retained earnings. Further, due to applicability of Schedule II of the Act during the year, the depreciation for the year is lower by Rs. 1,81,690/-.

C Foreign Currency Transactions:

i Export Sales- At the rates as on the date of negotiation or collection ,where export bills are negotiated after the close of the year, then at the year end rate when not covered by forward contract.

ii Expenditure- At the rates as on the date of transaction, receivables, creditors and outstanding liabilities are translated at the rate as at the close of the year, or at forward contract rate, wherever applicable.

iii Foreign Currency Loans for acquiring Fixed Assets and outstanding at the close of the Financial Year - At the contracted /prevailing rate of exchange, at the close of the year. The gain or loss due to decrease/increase in rupee liability due to fluctuations in rates of exchange is adjusted to the cost of the assets acquired through these loans. The depreciation on such increase/decrease in value of assets is provided for prospectively on residual life of the assets.

D Investments are stated at cost.

E Stock of Raw Material, spare parts and work in process are valued at cost.Finished goods are valued at lower of direct cost or net realisable value.

F Expenditure During Construction Period : Expenditure incurred on projects during implementation is capitalised and apportioned to various assets on commissioning of the project.

G Preliminary, Capital Issue and Deferred Revenue Expenses Preliminary, capital issue expenditure are written off in 10 years from the year of commercial production.

H Retirement Benefit : Gratuity:- Provision for gratuity is made on the basis of actual accrued liability if any.

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Mar 31, 2014

A Fixed Assets are stated at cost of acquisition/ construction less accumulated depreciation. The cost includes all the pre-operative expenses and the financing cost of borrowings related to the pre production period. In case of revaluation of assets cost of acquisition is substituted by appropriate value in terms of valuation by competent professional. B Depreciation on Fixed Assets is provided on straight line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on assets acquired during the year is charged on pro rata basis & part of the month is considered as a full month. Depreciation on revalued assets is recomputed so as to write off the entire value in residual life of assets. C Foreign Currency Transactions:

i Export Sales- At the rates as on the date of negotiation or collection ,where export bills are negotiated after the close of the year, then at the year end rate when not covered by forward contract. ii Expenditure- At the rates as on the date of transaction, receivables, creditors and outstanding liabilities are translated at the rate as at the close of the year, or at forward contract rate, wherever applicable. iii Foreign Currency Loans for acquiring Fixed Assets and outstanding at the close of the Financial Year - At the contracted /prevailing rate of exchange, at the close of the year. The gain or loss due to decrease/increase in rupee liability due to fluctuations in rates of exchange is adjusted to the cost of the assets acquired through these loans. The depreciation on such increase/decrease in value of assets is provided for prospectively on residual life of the assets. D Investments are stated at cost. E Stock of Raw Material, spare parts and work in process are valued at cost.Finished goods are valued at lower of direct cost or net realisable value.

F Expenditure During Construction Period : Expenditure incurred on projects during implementation is capitalised and apportioned to various assets on commissioning of the project.

G Preliminary, Capital Issue and Deferred Revenue Expenses :Preliminary, capital issue expenditure are written off in 10 years from the year of commercial production.

H Retirement Benefit : Gratuity:- Provision for gratuity is made on the basis of actual accrued liability.

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Mar 31, 2013

A Fixed Assets are stated at cost of acquisition/ construction less accumulated depreciation. The cost includes all the pre-operative expenses and the financing cost of borrowings related to the pre production period. In case of revaluation of assets cost of acquisition is substituted by appropriate value in terms of valuation by competent professional.

B Depreciation on Fixed Assets is provided on straight line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on assets acquired during the year is charged on pro rata basis & part of the month is considered as a full month. Depreciation on revalued assets is recomputed so as to write off the entire value in residual life of assets.

C Foreign Currency Transactions:

i Export Sales- At the rates as on the date of negotiation or collection ,where export bills are negotiated after the close of the year, then at the year end rate when not covered by forward contract.

ii Expenditure- At the rates as on the date of transaction, receivables, creditors and outstanding liabilities are translated at the rate as at the close of the year, or at forward contract rate, wherever applicable.

iii Foreign Currency Loans for acquiring Fixed Assets and outstanding at the close of the Financial Year - At the contracted /prevailing rate of exchange, at the close of the year. The gain or loss due to decrease/increase in rupee liability due to fluctuations in rates of exchange is adjusted to the cost of the assets acquired through these loans. The depreciation on such increase/decrease in value of assets is provided for prospectively on residual life of the assets.

D Investments are stated at cost.

E Stock of Raw Material, spare parts and work in process are valued at cost.Finished goods are valued at lower of direct cost or net realisable value.

F Expenditure During Construction Period :

Expenditure incurred on projects during implementation is capitalised and apportioned to various assets on commissioning of the project.

G Preliminary, Capital Issue and Deferred Revenue Expenses :Preliminary, capital issue expenditure are written off in 10 years from the year of commercial production.

H Retirement Benefit : Gratuity:- Provision for gratuity is made on the basis of actual accrued liability.

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Mar 31, 2012

A. Fixed Assets are stated at cost of acquisition/construction less accumulated depreciation. The cost includes all the pre-operative expenses and the financing cost of borrowings related to the pre production period. In case of revaluation of assets cost of acquisition is substituted by appropriate value in terms of valuation by competent professional

B. Depreciation on Fixed Assets is provided on straight line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on assets acquired during the year is charged on pro rata basis & part of the month is considered as a full month.. Depreciation on revalued assets is recomputed so as to write off the entire value in residual life of assets.

C. Foreign Currency Transactions

i. Export Sales- At the rates as on the date of negotiation or collection, where export bills are negotiated after the close of the year, then at the year end rate when not covered by forward contract.

ii. Expenditure- At the rates as on the date of transaction, receivables, creditors and outstanding liabilities are translated at the rate as at the close of the year, or at forward contract rate, wherever applicable.

iii. Foreign Currency Loans for acquiring Fixed Assets and outstanding at the close of the Financial Year - At the contracted/prevailing rate of exchange, at the close of the year. The gain or loss due to decrease/ increase in rupee liability due to fluctuations in rates of exchange is adjusted to the cost of the assets acquired through these loans. The depreciation on such increase/decrease in value of assets is provided for prospectively on residual life of the assets.

D. Investments are stated at cost.

E. Stock of Raw Material, spare parts and work in process are valued at cost . Finished goods are valued at lower of direct cost or net realisable value.

F. Expenditure During Construction Period : Expenditure incurred on projects during implementation is capitalised and apportioned to various assets on commissioning of the project.

G. Preliminary, Capital Issue and Deferred Revenue Expenses Preliminary, capital issue expenditure are written off in 10 years from the year of commercial production.

H. Retirement Benefit : Gratuity:- Provision for gratuity is made on the basis of actual accrued liability.

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Mar 31, 2010

A The financial statements have been prepared under the historical cost convention In accordance with generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted by the Company

B The Company generally follows mercantile system of accounting, recognises significant items of income and expenditure on accrual basis

B. Fixed Assete and Depreciation

A Fixed Assets are stated at cost of acquisition/ construction less accumulated depreciation. The cost includes all the pre-operative expenses and the financing cost of borrowings related to the pre production period. In case of revaluation of assets cost of acquisition is substituted by appropriate value in terms of valuation by competent professional B Depreciation on Fixed Assets is provided on straight line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on assets acquired during the year is charged on pro rata basis & part of the month is considered as a full month.. Depreciation on revalued assets is recomputed so as to write off the entire value in residual life of assets.

C Foreign Currency Transactions

A Export Sales- At the rates as on the date of negotiation or collection .where export bills are negotiated after the close of the year, then at the year end rate when not covered by forward contract. B Expenditure- At the rates as on the date of transaction, receivables, creditors and outstanding liabilities are translated at the rate as at the close of the year, or at forward contract rate, wherever applicable. C Foreign Currency Loans for acquiring Fixed Assets and outstanding at the close of the Financial Year -At the contracted /prevailing rate of exchange, at the close of the year. The gain or loss due to decrease/increase in rupee liability due to fluctuations in rates of exchange is adjusted to the cost of the assets acquired through these loans. The depreciation on such increase/decrease in value of assets is provided for prospectively on residual life of the assets.

D. Investments : Investments are stated at cost.

E Inventories: Stock of Raw Material, spare parts and work in process are valued at cost . Finished goods are valued at lower of direct cost or net realisable value.

F. Expenditure During Construction Period Expenditure incurred on projects during implementation is capitalised and apportioned to various assets on commissioning of the project.

G. Preliminary, Capital Issue and Deferred Revenue Expenses : Preliminary, capital issue expenditure are written off in 10 years from the year of commercial production. H. Retirement Benefit : Gratuity:- Provision for gratuity is made on the basis of actual accrued liability.