ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Green Asia Impex Ltd.

1.1 Material Accounting Policy Information

The company has assessed the materiality of the accounting policy information which involves
exercising judgements and considering both qualitative and quantitative factors by taking into
account not only the size and nature of the item or condition but also the characteristics of the
transactions, events or conditions that could make the information more likely to impact the
decisions of the users of the financial statements.

1.2 Basis of preparation of financial statements

The Financial Statements have been prepared in accordance with the generally accepted
accounting principles in India. The company has prepared these financial statements under the
historical cost convention on accrual basis to comply in all material respects with the accounting
standards specified under section 133 of the Companies Act, 2013 read with Rule-7 of the
Companies (Accounts) Rules, 2014 as amended. The accounting policies have been consistently
applied by the company. All assets and liabilities have been classified as current or non-current as
per the company''s normal operating cycle. The company has ascertained its operating cycle as 12
months for the purpose of current/non-current classification of assets and liabilities.

1.3 Current and Non-Current Classification

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,

* Expected to be realised or intended to be sold or consumed in normal operating cycle;

« Held primarily for the purpose of trading;

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

« 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:

* It is expected to be settled in normal operating cycle;

* It is held primarily for the purpose of trading;

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

» 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.

1.4 Functional and presentation currency

These financial statements are presented in Indian Rupees lakhs (INR lakhs), which is the
Company''s functional currency.

1.5 Critical accounting estimates, Assumptions arid Judgements

The preparation of the financial statements requires management to make judgments,
assumptions and estimates, that affect the reported balances of assets and liabilities and
disclosures as at the date of the Financial Statements and the reported amounts of income and

expense for the periods presented.

The estimates and related assumptions are based on historical experience and other factors that
are considered to be relevant. Actual results may differ from these estimates under different
assumptions and conditions.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and future periods are
affected. The estimates and assumptions that have a significant risk causing a material
adjustment to the carrying values of assets and liabilities within the next financial year are
discussed below.

1.5.1 Useful lives of property, plant and equipment (PPE'') and intangible assets

Management reviews the estimated useful lives and residual value of PPE and Intangibles at the
end of each reporting period. Management also engages technical experts to reassess the useful
lives of key plants and machineries.

Factors such as changes in the expected level of usage, technological development, units-of-
production and product life cycle, could significantly impact the useful economic lives and the
residual values of these assets. Consequently, the future depreciation and amortisation charge
could be revised and may have an impact on the profit of future years.

1.5.2 Valuation of finished goods

The production process of the company involves producing finished goods of various varieties
having different processes of production. Significant management judgment is involved in
allocating the cost of raw material to various sizes and in allocating the common overheads both
fixed and variable to various varieties.

1.5.3 Employee Benefit obligations

Employee benefit obligations are determined using actuarial valuations. An actuarial valuation
involves making various assumptions that may differ from actual developments. These include
the estimation of the appropriate discount rate; future salary increases and mortality rates. Due
to the complexities involved in the valuation and its long-term nature, the employee benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at
each reporting date.

1.6 Material accounting policies

The preparation of financial statements requires the management of the Company to make
estimates, judgements and assumptions that affect the reported balances of assets and liabilities
and disclosures of contingent liabilities at the date of the financial statements and reported
amounts of income and expense during the year. Management believes that the estimates used
in the preparation of the financial statements are prudent and reasonable. Accounting estimates
could change from period to period. Actual results could differ from those estimates. Changes in
estimates are reflected in the financial statements in the period in which the changes are made
and, if material, their effects are disclosed in the notes to financial statements

This note provides a list of material accounting policies adopted during the preparation of these
financial statements which have been consistently applied to all the years presented, unless
otherwise staled

1.6.1 Foreign currency translation

On initial recognition, all foreign currency transactions are translated into the functional currency
using the exchange rates prevailing on the date of the transaction. As at the reporting date,
foreign currency monetary assets and liabilities are translated at the exchange rate prevailing on
the Balance Sheet date.

Exchange differences arising on settlement or translation of monetary items are recognised in
Statement of Profit and Loss except to the extent of exchange differences which are regarded as
an adjustment to interest costs on foreign currency borrowings that are directly attributable to
the acquisition or construction of qualifying assets which are capitalised as cost of assets.

In case of an asset, expense or income where a non-monetary advance is paid/ received, the date
of transaction is the date on which the advance was initially recognised. If there were multiple
payments or receipts in advance, multiple dates of transactions are determined for each payment
or receipt of advance consideration.

1.6.2 Government Grant

Government grants that require compliance with certain conditions related to the Company''s
operating activities or are provided to the Company by way of financial assistance on the basis of
certain qualifying criteria.

Government grants are recognised when there is reasonable assurance that the grant will be
received upon the Company complying with the conditions attached to the grant. Accordingly,
government grants:

(a) related to or used for assets, are deducted from the carrying amount of the asset.

(b) related to incurring specific expenditures are taken to the Statement of Profit and Loss on a
systematic basis over the periods in which the entity recognises as expenses the related costs for
which the grant is intended to compensate.

(c) by way of financial assistance on the basis of certain qualifying criteria are recognised as they
become receivable.

In the unlikely event that a grant previously recognised is ultimately not received, it is treated as a
change in estimate and the amount cumulatively recognised is expensed in the Statement of
Profit and Loss.

1.6.3 Taxes on income

Current Tax

Current tax in the Statement of Profit and Loss is provided as the amount of tax payable in
respect of taxable income for the period using tax rates and tax laws enacted during the period,
together with any adjustment to tax payable in respect of previous years.

Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities and the amounts used for taxation purposes (tax base), at the tax rates and tax laws
enacted or substantively enacted by the end of the reporting period.

Deferred tax assets are recognised for the future tax consequences to the extent it is probable
that future taxable profits will be available against which the deductible temporary differences
can be utilised.

Income tax, insofar as it relates to items disclosed under other comprehensive income or equity,
is disclosed separately under other comprehensive income or equity, as applicable.

1.6.4 Cash and Cash Equivalents

Cash and cash equivalents comprise of cash on hand, cash at banks, short-term deposits and
short-term highly liquid investments that are readily convertible to known amounts of cash, and
which are subject to an insignificant risk of changes in value.

1.6.5 Non - Current Investments

Long-term investments are accounted at cost and carried at cost. If there is a decline, other than
temporary, in the value of a long term investment, the carrying amount is reduced to recognise
the decline.

Cost of an investment includes acquisition charges such as brokerage, fees and duties. Current
investments may be carried at the lower of cost and net realizable value.

On disposal of an investment, the difference between the carrying amount and the disposal
proceeds, net of expenses, is recognised in the profit and loss statement.

When disposing of a part of the holding of an individual investment, the carrying amount to be
allocated to that part is to be determined on the basis of the average carrying amount of the total
holding of the investment.

1.6.6 Inventories

Items of inventories are measured at lower of cost determined on FIFO basis and net realizable
value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs
incurred in bringing them io their respective present location and condition.

1.6.7 Revenue recognition

Revenue from Customers is recognized when the control of goods or services is transferred to the
customer, in an amount that reflects the consideration to which the Company expects to be
entitled in exchange for those goods or services.

Revenue is measured based on the transaction price specified in the contract with the customer
and excludes amounts collected on behalf of third parties (such as goods and services tax).

The Company derives revenue primarily from the following sources:

i. Export of Processed Shrimp:

Revenue is recognized upon shipment of goods or upon delivery, based on the iricoterms agreed
with the customers. Export incentives, if any, are recognized on accrual basis when there is
reasonable assurance of collection.

ii. Sale of Biological Produce (Harvested Shrimp):

Revenue is recognized on delivery of goods to customers.

iii. Freight and Insurance Recovery:

Where such services are included in the sale agreement and are distinct performance obligations,
they are accounted for separately and recognized over the period of service delivery.

iv. Revenue from Government Subsidies/lncentives:

Recognized when there is reasonable assurance that the entity will comply with the conditions
and the incentives will be received.

v. Other Income:

Other income comprises primarily interest income on margin money deposits, inter corporate
loans, dividend income, gain/ (loss) on disposal of property, plant and equipment. Any gain or
loss arising on de-recognition of property, plant and equipment is calculated as the difference
between the net disposal proceeds and the carrying amount of the asset.

Other items of income are accounted as and when the right to receive such income arises and it is
probable that the economic benefits will flow to the Company and the amount of income can be
measured reliably.

1.6.8 Property, Plant and Equipment:

a) Property, Plant and Equipment

The Initial cost of property, plant and equipment comprises its purchase price, including non-
refundable duties and taxes, attributable borrowing costs of bringing an asset to working
condition and location for its intended use. It also includes the present value of the expected cost
for the decommissioning and removing of an asset and restoring the site after its use, if the
recognition criteria for a provision are met.

Expenditure incurred after the property, plant and equipment have been put into operation such
as repairs and maintenance are normally charged to the statement of profit and loss in the period
in which the costs are incurred. Major inspection and overhaul expenditure is capitalized if the
recognition criteria are met. When significant parts of plant and equipment are required to be
replaced at intervals, the Company depreciates them separately based on their specific useful
lives. All other repair and maintenance costs are recognized in the statement of profit and loss as
incurred.

Gains and losses on disposal of an item of property, plant and equipment are determined by
comparing the proceeds from disposal with the carrying amount of property, plant and
equipment, and are recognized net within other income/ other expenses in statement of profit
and loss.

An item of property, plant and equipment and any significant part initially recognized is
derecognized upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the
statement of profit and loss, when the asset is derecognized.

The residual values, useful lives and methods of depreciation of property, plant and equipment
are reviewed at each financial year end and adjusted prospectively, if appropriate.

b) Capital Work in progress

Assets in the course of construction are capitalized to capital work in progress account. At the
point when an asset is capable of operating in the manner intended by the management, the cost
of construction is transferred to the appropriate category of property, plant and equipment.

Costs associated with the commissioning of an asset are capitalized when the asset is available
for use.

c) Depreciation

Assets in the course of development or construction and freehold land are not depreciated.
Depreciation is provided on other property, plant and equipment when the assets are ready for
their intended use. Depreciation is calculated on the depreciable amount, which is the cost of an
asset less its residual value. Depreciation on tangible assets has been provided on the Written
Down Value method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

Depreciation methods, useful lives and residual values are reviewed at each financial year end
and changes in estimates, if any, are accounted for prospectively.

1.6.9 Impairment of Assets

The company assesses at each balance sheet date whether there is any indication that an asset
any be impaired. If any such indication exists, the company estimates the recoverable amount of
the assets. If such recoverable amount of the cash generating unit to which the asset belongs is
less than its carrying amount, the carrying amount is reduced to its recoverable amount.

The reduction is treated as an impairment loss and is recognized in the profit and loss account. If
at the balance sheet date there is an indication that a previously assessed impairment loss no
longer exists, the recoverable amount is reversed and reflected at the recoverable amount
subject to a maximum of depreciated historical cost.

1.6.10 Borrowing Cost

Borrowing costs are interest and other costs (including exchange differences relating to foreign
currency borrowings to the extent that they are regarded as an adjustment to interest costs)
incurred iri connection with the borrowing of funds.

Borrowing Cost directly attributable to the acquisition, construction or production of a qualifying
asset are capitalized during the period of time that is required to complete and prepare the asset
for its intended use. Qualifying assets are those assets that necessarily take a substantial period
of time to get ready for their intended use. Other borrowing costs are recognized as an expense
in the period in which these are incurred.