ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Sanghvi Brands Ltd.

Mar 31, 2025

a) Company overview

Sanghvi Brands Limited (formerly known as Sanghvi Brands Private Limited) is a public
company, domiciled in India. It was incorporated on 16 February, 2010 under the provisions of
Companies Act, 1956. The Company is in the business of branding of national and international
brands, dealing in goods and services of such brands and providing spa services. The
Company has its registered office at Shivajinagar, Pune.

The Company is listed with BSE Limited on SME platform from November 22, 2017.

b) Basis of preparation of financial statements

The financial statements are prepared in accordance with the Generally Accepted Accounting
Principles ("GAAP") in India under the historical cost convention on an accrual basis, and are in
conformity with mandatory accounting standards, as prescribed under Section 133 of the
Companies Act, 2013(''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, the
provisions of the Act.

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

All assets and liabilities have been classified as current or non-current as per the Company''s
normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013.
The Company has ascertained its operating cycle as twelve months for the purpose of current
and non-current classification of assets and liabilities.

c) Use of Estimates

The preparation of the financial statements in conformity with generally accepted accounting
principles requires Management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial
statements and the results of operations during the reporting period end. Although these
estimates are based upon Management''s best knowledge of current events and actions,
actual results could differ from these estimates.

d) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured.

Service income is recognized net of duties and taxes, as and when services are rendered.
Revenue in respect of Technical fees is recognised as the related services are performed.

As per agreement entered by the Company with certain Franchisees, the Company is obliged
to refund technical fees received in case of termination of its licensing arrangement with the
licensors of the brand within a specified period which ranges from 1 to 2 years. As per
management, refund of technical fees is not likely.

e) Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation until the date
of the balance sheet and impairment losses if any. Cost comprises the purchase price and
any attributable cost of bringing the asset to its working condition for its intended use. Such
costs include taxes, duties, freight and incidental expenses relating to the acquisition and
installation of Property, Plant and Equipment. Cost also includes the interest paid/ payable
during the period of construction in respect of borrowed funds pertaining to construction/
acquisition of qualifying Property, Plant and Equipment.

f) Depreciation and Amortization

Depreciation on Property, Plant and Equipment is provided on the Straight-line Method (SLM)
over the useful lives of assets as prescribed in Schedule -II of the Companies Act 2013.
Depreciation for assets purchased / sold during a period is proportionately charged. Intangible
assets are amortized on SLM basis over their estimated useful life.

g) Current Assets, loans & advances

Current Assets, loans and advances are approximately of the value stated, if realized in the
ordinary course of business.

h) Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any
indication of impairment based on internal/external factors. An impairment loss is recognized
wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable
amount is the greater of the asset''s net selling price and value in use.

After impairment, depreciation is provided on the revised carrying amount of the asset over its
remaining useful life.

i) Income Tax

Tax expense comprises of current and deferred. Current income tax is measured at the
amount expected to be paid to the tax authorities in accordance with the Indian Income Tax
Act. Deferred income taxes reflect the impact of current year timing differences between
taxable income and accounting income for the year and reversal of timing differences of
earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively
enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that
there is reasonable certainty that sufficient future taxable income will be available against
which such deferred tax assets can be realized.

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Mar 31, 2024

22. SIGNIFICANT ACCOUNTING POLICIES:

a) Company overview

Sanghvi Brands Limited (formerly known as Sanghvi Brands Private Limited) is a public company, domiciled in
India. It was incorporated on 16th February 2010 under the provisions of the Companies Act, 1956. The
Company is in the business of branding of national and international brands, dealing in goods and services of
such brands and providing spa services. The Company has its registered office at Shivajinagar, Pune.

The Company is listed with BSE Limited on SME platform from November 22, 2017.

b) Basis of preparation of financial statements

The financial statements are prepared in accordance with the Generally Accepted Accounting Principles (“GAAP”)
in India under the historical cost convention on an accrual basis, and are in conformity with mandatory
accounting standards, as prescribed under Section133 of the Companies Act, 2013(‘Act’) read with Rule 7 of the
Companies (Accounts) Rules, 2014, the provisions of the Act .

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

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating
cycle and other criteria set out in the Schedule II to the Companies Act, 2013. The Company has ascertained its
operating cycle as twelve months for the purpose of current and non-current classification of assets and
liabilities.

c) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires
Management to make estimates and assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent liabilities at the date of the financial statements and the results of operations during the
reporting period end. Although these estimates are based upon Management’s best knowledge of current events
and actions, actual results could differ from these estimates.

d) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured. Service income is recognized net of duties and taxes, as and when
services are rendered. Revenue in respect of technical fees is recognised as the related services are performed.

As per agreement entered by the Company with certain Franchisees, the Company is obliged to refund technical
fees received in case of termination of its licensing arrangement with the licensors of the brand within a
specified period which ranges from 1 to 2 years. As per management, refund of technical fees is not likely.

e) Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation until the date of the balance
sheet and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use. Such costs include taxes, duties, freight and incidental
expenses relating to the acquisition and installation of Property, Plant and Equipment. Cost also includes the
interest paid/ payable during the period of construction in respect of borrowed funds pertaining to construction/
acquisition of qualifying Property, Plant and Equipment.

f) Depreciation and Amortization

Depreciation on tangible assets is provided on the Straight-line Method (SLM) over the useful lives of assets as
prescribed in Schedule -II of the Companies Act 2013. Depreciation for assets purchased / sold during a period
is proportionately charged. Intangible assets are amortized on SLM basis over their estimated useful life.

g) Current Assets, loans & advances

Current Assets, loans and advances are approximately of the value stated, if realized in the ordinary course of
business.

h) Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment
based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater of the asset’s net selling price and value
in use.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful
life.

i) Income Tax

Tax expense comprises of current and deferred. Current income tax is measured at the amount expected to be
paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflect the
impact of current year timing differences between taxable income and accounting income for the year and
reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the
balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such deferred tax assets can be realized.

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Mar 31, 2018

1. SIGNIFICANT ACCOUNTING POLICIES:

a) Company overview

Sanghvi Brands Limited (formerly known as Sanghvi Brands Private Limited) is a public Company, domiciled in India. It was incorporated on 16th February 2010 under the provisions of Companies Act, 1956. The Company is in the business of branding of national and international brands, dealing in goods and services of such brands and providing spa services. The Company has its registered office at Shivajinagar, Pune. The Company was listed with BSE Limited on SME platform from November 22, 2017.

b) Basis of preparation of financial statements

The condensed financial statements are prepared in accordance with the Generally Accepted Accounting Principles (“GAAP’’) in India under the historical cost convention on an accrual basis, and are in conformity with mandatory accounting standards, as prescribed under Section133 of the Companies Act, 2013(‘ Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014 as amended and the provisions of the Act. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or to a revision an existing accounting standard requires a change in the accounting policy hitherto in use. All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule II to the Companies Act, 2013. The Company has ascertained its operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities.

c) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon Management’s best knowledge of current events and actions, actual results could differ from these estimates.

d) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Service income is recognized net of duties and taxes, as and when services are rendered. Revenue in respect of Technical fees is recognised as the related services are performed.

As per agreement entered by the Company with certain Franchisees, the Company is obliged to refund technical fees received in in case of termination of its licensing arrangement with the licensors of the brand within a specified period which ranges from 1 to 2 years. As per management, refund of technical fees is not likely.

e) Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation until the date of the balance sheet and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Such costs include taxes, duties, freight and incidental expenses relating to the acquisition and installation of fixed assets. Cost also includes the interest paid/ payable during the period of construction in respect of borrowed funds pertaining to construction/ acquisition of qualifying fixed assets.

f) Depredation and Amortization

Depreciation on tangible assets is provided on the Straight line Method (SLM) over the useful lives of assets as prescribed in Schedule -11 of the Companies Act 2013. Depreciation for assets purchased / sold during a period is proportionately charged. Intangible assets are amortized on SLM basis over their estimated useful life.

g) Current Assets, loans & advances

Current Assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business.

h) Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/ external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset’s net selling price and value in use. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

i) Income Tax

Tax expense comprises of current and deferred. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

j) Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event and it 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 best 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 best estimates.

k) Earnings per Share

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