Accounting Policies of Uma Converter Ltd. Company

Mar 31, 2025

1 Corporate Information

Uma Converter Limited (Formerly known as Uma Converter Private Limited (the "Company") is a public limited
company domiciled in India and was incorporated on 18th July,1999 under the provisions of the Companies Act,

1956 applicable in India. Its registered office is located at Block No. 868, Vill. Santej, Ta. Kalol, Dist. Gandhinagar
(Gujarat). The Company is primarily engaged in the business of manufacturing and trading of flexible packaging

2 Significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of the Financial
Statements. These policies have been consistently applied to all the years/period presented, unless otherwise

(a) Basis of Preparation of Restated Financial Statements

(i) Statement of Compliance with Ind AS

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notofied
under Section 133 of the Companies Act, 2013 (the " Act") read with the Companies ( Indian Accounting
Standards) Rules, 2015 and Companies (Indian Accounting Standards) Ammendment Rules, 2016.

Accounting policies have been consistently applied to all the years presented except where a newly issued
accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the
accounting policy hitherto in use.

(ii) Basis of measurement

The Financial Statements have been prepared on a historical cost convention on accrual basis, except certain
financial assets and liabilities measured at fair value.

(iii) Current and non current classification

All assets and liabilities have been classified as current and non-current as per the Company''s normal operating
cycle and other criteria set out in Schedule III to the Act.

(iv) Use of estimates

The preparation of Financial Statements in conformity with Ind AS requires the management to make estimate
and assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date, reported
amount of revenue and expenses for the year and disclosure of contingent liabilities as at the Balance sheet date.

The estimates and the assumptions used in the accompanying financial statements are based upon the
management evaluation of the relevant facts and cirucumstances as at the date of the fianacial statements. Actual
results could differ from these estimates. Estimates and underlying assumption are reviewed on periodic basis.

Revision to accounting estimates, if any, are recognised in the year in which the estimates are revised and in any
I future years affected._

(b) Property, plant and equipment

Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.

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 measure reliably .The carrying amount of any component accounted for as a separate asset
is decognised when replaced.All other repairs and maintenance are charged to Statement of Profit and Loss during

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is
classified as capital advances under other non-current assets and the cost of assets not put to use before such date

Transition to ind AS

On transition to Ind AS, the Company had elected to continue with the carrying value of all of its property, plant
and equipment recognised as at 1st April 2019 measured as per the Indian GAAP and used that carrying value as a

Depreciation methods, estimated useful lives

The Company depreciates property, plant and equipment over their estimated useful lives using the straight line
method. The estimated useful lives of assets are taken as prescribed useful lives under Schedule II to the
Companies Act, 2013. The management believes that such estimated useful lives are realistic and reflect fair

Depreciation on addition to property plant and equipment is provided on pro-rata basis from the date of
acquisition. Depreciation on sale/deduction from property plant and equipment is provided up to the date
preceding the date of sale, deduction as the case may be. Gains and losses on disposals are determined by

(c) Investment properties

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition,
investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.

(d) Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the
asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest
and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an adjustments to the borrowing cost.

(e) Foreign Currency Transactions

(i) Functional and presentation currency

Items included in the Financial Statements are measured using the currency of the primary economic environment
in which the entity operates (''the functional currency''). The Financial Statements are presented in Indian rupee

(ii) Transactions and balances

On intial recognition , all foreign currency transactions are recorded by applying to the foreign currency amount
the exchange rate between the functional currency and the foreign currency at the date of the transaction.
Gains/Losses arising out of fluctuation in foreign exchange rate between the transcation date and the settlement
date are recognised in the Statement of Profit & Loss. All monetary assets and liabilities in foreign currencies are

Non monetary items that are measured in the terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the intial transcations.

(f) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
Financial assets

(i) Initial recognition and measurement

At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not at fair
value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction cost of financial asset carried at fair value through profit or loss are expensed in Profit and Loss.

¦ .

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(ii) Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

a) at amortized cost; or

b) at fair value through other comprehensive income; or

c) at fair value through profit or loss.

The classification depends on the entity''s business model for managing the financial assets and the
contractual terms of the cash flows.

(iii) Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at
amortised cost and FVOC1 debt instruments. The impairment methodology applied depends on whether there has

(iv) Derecognition of financial assets

A financial asset is derecognized only when

a] the rights to receive cash flows from the financial asset is transferred or

b) retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual
obligation to pay the cash flows to one or more recipients.

Financial liabilities

[i] Recognition and measurement

Financial liabilities are classified as financial liabilities at fair value through profit or loss and at amortized cost, as
appropriate. The measurement of financial liabilities depends on their classification, as described below:

(ii) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon intial recognition as at fair value through profit or loss. Separated embedded
derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Loans and borrowings

After intial recognition interest-bearing loans and borrowings are subsequently measured at amortized cost .

Gains and losses are recognized in Statement of Profit and Loss when the liabilities are derecognized .

(iii) Derecognition

A financial liability is derecognized 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
derecognition of the of the original liability and the recognition of a new liability. The difference in the respective

(g) Revenue Recognition

The company derives revenues primarily from sale of manufactured goods, traded goods and job work.

Revenue is recognised when the amount of revenue can be reliably measured, it is probable that future economic
benefits will flow to the entity and specific criteria have been met for each of the company''s activities as described

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue
are net of trade allowances, rebates and amounts collected on behalf of third parties and is not recognised in
instances where there is uncertainty with regard to ultimate collection . In such cases revenue is recognised on

Sale of products;

Revenue from sale of products is recognised when significant risks and rewards in respect of ownership of
products are transferred to customers based on the terms of sale. Revenue from sales is based on the price
specified in the sales contracts, net of trade discounts, returns and goods & service tax at the time of sale.

(h) Taxes

Tax expense for the year, comprising current tax and deferred tax, are included in the determination of the net
1 profit or loss for the year._

(a) Current income tax

Current tax assets and liabilities are measured at the amount expected to be recovered or paid to the taxation
authorities in accordance with the relevant prevailing tax laws. Tax expenses relating to the items in profit & loss
account shall be treated as current tax as part of profit and loss and those relating to items in other comprehensive

(b) Deferred tax

Deferred income tax is recognised for all the temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in Financial Statements. Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantially enacted by the end of the year and are expected to apply when

(i) Assets classified as held for sale

The Company classifies non-current assets (or disposal group) as held for sale if their carrying amounts will be
recovered principally through a sale rather than through continuing use.

Non-current assets (or disposal group) held for sale are measured at the lower of their carrying amount and the
fair value less costs to sell. Assets and liabilities (or disposal group) classified as held for sale are presented
separately in the balance sheet. Property, plant and equipment and intangible assets once classified as held for sale

(j) Leases

Operating lease payments are recognised as an expense in the Statement of Profit and Loss on a straight line basis
over the lease period except where another systematic basis is more represntative of time pattern in which
economic benefits from leased assets. In case of financial lease, the payment of rentals is recognised as an expense

(k) Inventories

Valuation of Inventories and costs incurred in bringing each product to its present location and condition
are accounted for as follows:

Raw materials, finished goods, semi finished goods, trading goods and stores and spare parts are valued at lower of
cost and net realizable value. Cost includes purchase price, (excluding taxes those subsequently recoverable by the
enterprise from the concerned revenue authorities), freight inwards and other expenditure incurred in bringing
such inventories to their present location and conditions. Scrap and wastages are stated at net realisable value. In

(l) Impairment of assets

The carrying value of assets / cash generating units at the Balance Sheet date are reviewed for impairment, if any
indication of impairment exists. If the carrying amount of the assets exceed the estimated recoverable amount, an
impairment is recognised for such excess amount. The impairment loss is recognied for such excess amount.

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Mar 31, 2024

2 Significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of the Financial Statements. These policies have been consistently applied to all the years/period presented, unless otherwise stated.

(a) Basis of Preparation of Restated Financial Statements

(i) Statement of Compliance with Ind AS

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notofied under Section 133 of the Companies Act, 2013 (the Act"]| read with the Companies ( Indian Accounting Standards) Rules, 2015 and Companies (Indian. Accounting Standards) Ammendment Rules, 2016.

Accounting policies have been consistently applied to all the years presented except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

(i i) Ba s is of m easu rement

The Financial Statements have been prepared on a historical cost convention on accrual basis, except certain financial assets and [labilities measured at fair value.

(in) Current and non current classification

All assets and liabilities have been classified as current and non-current as per the Company''s normal operating cycle and other criteria set out in Schedule ill to the AcL

(iv) Use of estimates

The preparation of Financial Statements in conformity with Ind AS requires the management to make estimate and assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date, reported amount of revenue and expenses for the year and disclosure of contingent liabilities as at the Balance sheet date. The estimates and the assumptions used in the accompanying financial, statements are based upon the management evaluation of the relevant facts and cirucu instances as at the date of the fianada! statements. Actual results could differ from these estimates. Estimates and underlying assumption are reviewed on periodic basis. Revision to accounting estimates, if any, are recognised in the year in which the estimates are revised and in any future years affected.

(b) Property, plant and equipment

Property, plant and equipment are stared at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are inriuded 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 measure reliably.The carrying amount of any component accounted for as a separate asset is decognised when replaced.AU other repairs and maintenance are charged to Statement of Profit and Loss during the year in which they are incurred.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under other non-current assets and the cost of assets not put to use before such date are disclosed under''Capital work in progress"

Transition to Ind AS

, On transition to ind AS, the Company bad elected to continue with the carrying value of all of its property, plant and equipment recognised as at 1st April 2019 measured as per the Indian GAAP and used that carrying value as a deemed cost of property, plant & equipment.

Depreciation methods, estimated useful lives

The Company depreciates property, plant and equipment over their estimated useful lives Using the straight line method. The estimated useful lives of assets are taken as prescribed useful lives under Schedule II to the Companies Act, 2013. The management believes that such estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

Depreciation on addition to property plant and equipment is provided on pro-rata basis from the date of acquisition. Depreciation on sale/deduction from property plant and equipment is provided up to the date preceding the date of sale, deduction as the case maybe. Gains and losses on disposals are determined by comparing proceeds with carrying amount These are included in the statemnt of Profit & Loss under other income/ Other expenses

(c) Investment properties

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at costless accumulated depreciation and accumulated impairment loss, if any.

(d) Borrowing cost

Borrowing costs direcdy attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustments to the borrowing cost.

(e] Foreign Currency Transactions

(i] Functional and presentation currency

Items included in the Financial Statements are measured using the currency of the primary economic environment in which the entity operates (''the functional currency"]. The Financial Statements are presented in Indian rupee (INR), which is the Company''s functional and presentation currency.

(ii) Transactions and balances

0‘n intial recognition.. all foreign currency transactions .are recorded by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction. Gains/Losses arising out of fluctuation in foreign exchange rate between the transcation date and the settlement date are recognised in the Statement of Profit & Loss. All monetary assets and liabilities tn foreign currencies are restated at the year end at the exchange rate prevailing at the year end and the exchange differences are recognised in the Statement of Profitfi. Loss.

Non monetary items that are measured in the terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the intial transcations.

(f] Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

(i) Initial recognition and measurement

At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not at fair vaEue through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset Transaction cost of financial asset carried at fair value through profit or loss are expensed in Prof t and Loss.

(ii) | Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in foil owing categories:

a) at amortized cost; or

b) at fair value through ocher comprehensive income; or

c) at fair value through profit or loss.

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

(iii) '' impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised costand FVOCE debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk

(iv) Derecognition of financial assets

A financial asset is derecognized only when

a] the rights to receive cash flows from the financial asset is transferred or

b] retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Financial liabilities

[i] Recognition and measurement

Financial liabilities are classified as Financial liabilities at fair value through profit or loss and at amortized cost, as appropriate. The measurement of financial liabilities depends on their classification, as described below:

(ii] Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial, liabilities designated upon intial recognition as at fair value through profit or loss. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the Statement of Profit and Loss.

Loans and borrowings

After intial recognition interest-bearing loans and borrowings are subsequently measured at amortized cost. Gains and losses are recognized in Statement of Profit and Loss when the liabilities are derecognized. fiiij Derecognition

A financial liability is derecognized 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 derecognition of the of the original liability and the recognition ofa new liability.

The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss as finance cost

[g] Revenue Recognition

The company derives revenues primarily from, sale of manufactured goods, traded goods and job work.

Revenue is recognised when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company''s activities as described below:

Revenue Is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of trade allowances, rebates and amounts collected on behalf of third parties and is not recognised in instances where there is uncertainty with regard to ultimate collection. In such cases revenue is recognised on reasonable certainity of collection.

Sale of products:

Revenue from sale of products is recognised when significant risks and rewards in respect of ownership of prodocts are transferred to customers based on the terms of sale. Revenue from sales is based on the price specified in the sales contracts, net of trade discounts, returns _and goods & service tax at the time of sale.__

(h) Taxes

Tax'' expense for the year, comprising current tax and deferred tax, are included in the determination of the net profit or lass for the year.

(a] Current income tax

Current tax assets and liabilities are measured at the amount expected to be recovered or paid to the taxation authorities in accordance with the relevant prevailing tax laws. Tax expenses relating to the items in profit & loss account shall be treated as current tax as part of profit and loss and those relating to items in other comprehensive income shall be recognised as part of 0C1,

(b) Deferred taix

Deferred income tax fs recognised for all the temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in Financial Statements. Deferred income tax is determined using tax rates (and laws] that have been enacted or substantially enacted by the end of the year and a.re expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

(i) Assets classified as held for sale

The Company classifies non-current assets (or disposal group] as held for sale if tiheir carrying amounts will be recovered principally through a sale rather than through continuing use.

Non-current assets (or disposal group] held for sale are measured at the lower of their carrying amount and the fair value less costs to sell. Assets and liabilities [or disposal group) classified as held for sale are presented separately in the balance sheet. Property, plant and equipmentand intangible assets once classified as held for sale are not depreciated or amortized.

(j) Leases

Operating lease payments are recognised as an expense in the Statement of Profit and Loss on a straight line basis over the lease period except where another systematic basis is more represntative of time pattern in which economic benefits from leased assets. In case of financiaflease, the payment of rentals is recognised as an expense in the Statement of Profit & Loss Account

(k) Inventories

Valuation of Inventories and costs incurred in bringing each product to its present location and condition are accounted for as follows:

Raw materials, finished goods, semi finished goads, trading goods and stores and spare parts are valued at lower of cost and net realizable value. Cost includes purchase price, (excluding taxes those subsequently recoverable by the enterprise from the concerned revenue authorities], freight inwards and other expenditure incurred in bringing such inventories to their present location and conditions. Scrap and wastages are stated at net realisable value, In determining the cost FIFO method is used.

(l) Impairment of assets

The carrying value of assets / cash generating units at the Balance Sheet date are reviewed for impairment, if any indication of impairment exists. If the carrying amount of the assets exceed the estimated recoverable amount, an impairment is recognised for such excess amount. The 3 mp a i rm e nt I oss i s re-cogn ied fo r su ch ex c e ss a mo u n t

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Mar 31, 2023

48 SIGNIFICANT ACCOUNTING POLICIES AND EXPLANATORY NOTES TO THE RESTATED FINANCIAL STATEMENTS

1 Corporate Information

Lima Converter Limited (Formerly known as Uma Converter Private Limited (the "Company"] is a public limited company domiciled in India and was incorporated on 18th July,1999 under the provisions of the Companies Act, 1956 applicable in India, its registered office ls located at Block No. 868, VilLSantej, Ta. Kalol.Dist Gandhinagar (Gujarat). The Company is primarily engaged in the business of manufacturing and trading of flexible packaging materials.

2 Significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of the Financial Statements. These policies have been consistently applied to all the years/period presented, unless otherwise stated.

(a) Basis of Preparation of Restated Financial Statements

(i) S tatemen t of Co m pi iance wi th I nd AS

These financial statements have been prepared in accordance with Indian Accounting Standards ( Ind AS) notofied under Section 133 of the Companies Act, 2013 (the " Act") read with the Companies ( Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Ammendment Rules, 2016.

Accounting policies have been consistently applied to all the years presented except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

(ii) Basis of measurement

The Financial Statements have been prepared on a historical cost convention on accrual basis, except certain financial assets and liabilities measured at fair value.

piij Current and non current classification

All assets and liabilities have been classified as current and non-current as per the Company''s normal operating cycle and other criteria set out in Schedule Eli to the Act.

(iv) Use of estimates

The preparation of Financial Statements in conformity with Ind AS requires the management to make estimate and assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date, reported amount of revenue and expenses For the year and disclosure of contingent liabilities as at the Balance sheet date. The estimates and the assumptions used in the accompanying financial statements are based upon the management evaluation of the relevant facts and cirucumstances as at the date of the fianacial statements. Actual results could differ from these estimates. Estimates and underlying assumption are reviewed on periodic basis. Revision to accounting estimates, if any, are recognised in the year in which the estimates are

[b] Property, plant and equipment

The Company had applied for the one time transition exemption of considering the carrying cost on the transition date i.e. 1st April, 2019 as the deemed cost under IND AS, Hence regarded thereafter as historical cost.

Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. ,

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 ofthe item can he measure reliably.The carrying amount of any component accounted for as a separate asset is decognised when reptaced.All other repairs and maintenance are charged to Statement of Profit and Loss during the year in which they are incurred.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under other non-current assets and the cost of assets not put to use before such date are disclosed under ''Capital work in progress¹¹

Depreciation methods, estimated useful lives

The Company depreciates property, plant and equipment over their estimated useful lives using the straight line method. The estimated useful lives of assets are taken as prescribed useful lives under Schedule II to the Companies Act, 2013. The management believes that such estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

Depreciation on addition to property plant and equipment is provided on pro-rata basis from the date of acquisition.

Depreciation on sale/deduction from property plant and equipment is provided up to the date preceding the date of sale, deduction as the case may be. Gains and losses on disposals are determined by comparing proceeds with carrying amount These are included in the statemnt of Profit & Loss under other income/ Other expenses

'' c) Investment properties

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition,

Investment properties are stated at costless accumulated depreciation and accumulated impairment loss, if any.

[dj Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost ofthe asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of Interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent _regarded as an adjustments to the borrowing cost__

[ e] Foreign Currency Transactions ----

(i) Functional and presentation currency

Items included in the Financial Statements are measured using the currency of the primary economic environment in which e entity operates (''the functional currency’]. The Financial Statements are presented in Indian rupee (INR), which is the Company s functional and presentation currency.

(ii] Transactions and balances

°n initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction. Gains/Losses arising out of fluctuation in foreign exchange rate between the transcation date and the settlement date are recognised In the Statement of

Front & LOSS.

All monetary assets and liabilities in foreign currencies are restated at the year end at the exchange rate prevailing at the year end and the exchange differences are recognised in the Statement of Profit & Loss.

Non monetary items that are measured in the terms of historical cost in a foreign currency are translated using the exchange races at tne dates of the intial transcations.

(f) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

[i] Initial recognition and measurement

At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction cost of financial asset carried at fair value through profit or loss are expensed in Profit and Loss.

(ii] Su b s e q u ent m eas u rern ent

For purposes of subsequentmeasurement, financial assets are classified in following categories-

a) at amortized cost; or

b) at fair value through other comprehensive income; or

c) at fair value through profit or loss.

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cashflows.

(iii) Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCi debt instruments. The impairment methodology applied depends on whether there has been a significant increase In credit risk.

(ivj Derecognition of financial assets

A financial asset is derecognized only when

a] the rights to receive cash flows from the financial asset is transferred or

b] retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Financial liabilities O''] Recognition and measurement

Financial liabilities are classified as financial liabilities at fair value through profit or loss and at amortized cost, as appropriate. The measurement of financial liabilities depends on their classification, as described below;

(ii) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon intial recognition as at fair value through profit or loss. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the Statement of Profit and Loss.

Loans and borrowings

After intial recognition interest-bearing loans and borrowings are subsequently measured at amortized cost. Gains and -I losses are recognized in Statement of Profit and Loss when the liabilities are derecognized . _

(iii) Derecognition

A financial liability is derecognized 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 derecognition of the of the original liability and the recognition of anew liability. The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss as finance cost ¹

(g) Revenue Recognition

The company derives revenues primarily from sale of manufactured goods, traded goods and job work.

Revenue is recognised when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company''s activities as described below:

Revenue is measured at the fair value of the consideration received or receivable, Amounts disclosed as revenue are net of trade allowances, rebates and amounts collected on behaLf of third parties and is not recognised in instances where there is uncertainty with regard to ultimate collection. In such cases revenue is recognised on reasonable certainity of collection.

Sale of products:

Revenue from sale of products is recognised when significant risks and rewards in respect of ownership of products are transferred to customers based on the terms of sale. Revenue from sales is based on the price specified in the sales contracts, net of trade discounts, returns and goods & service tax at the time of sale.

(h) Taxes

Tax expense for the year, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the year.

[a) Current income tax

Current tax assets and liabilities are measured at the amount expected to be recovered or paid to the taxation authorities in accordance with the relevant prevailing tax laws. Tax expenses relating to the items in profit &. loss account shall be treated as current tax as part of profit and loss and those relating to items in other comprehensive income shall be recognised as part ofOCI.

[bj Deferred tax

Deferred income tax is recognised for all the temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in Financial Statements. Deferred income taxis determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the year and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liabilty is settled.

(i) Assets classified as held for sale

The Company classifies non-current assets (or disposal group) as held for sale if their carrying arnounts will be recovered principally through a sale rather than through continuing use.

Non-current assets (or disposal group) held for sale are measured at the lower of their carrying amount and the fair value less costs to sell. Assets and liabilities (or disposal group] classified as held for sale are presented separately in the balance sheet,

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.

0) Leases

Operating lease payments are recognised as an expense in the Statement of Profit and Loss on a straight line basis over the lease period except where another systematic basis is more represntative of time pattern in which economic benefits from leased assets. In case of financial lease, the payment of rentals is recognised as an expense in the Statement of Profit & Loss _Account._

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00 Inventories

“~^nVen“" "^{d in bri}"^{EinS each} ''= *«*> and condition =™ accounted for

“^7 ^ann^d “^d •” 1“ ” — «lower of cost and

the concerned revenue authorities^ freight F H h ^ °^{S6 subsec}I^uently recoverable by the enterprise from

—_o„di_Bon^“^

(1] Impairment of assets

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