ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Shree Ram Twistex Ltd.

Mar 31, 2024

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENT

These financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (Indian
GAAP) including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013, which are
mandatory for Small & Medium Company. Accounting policies have been consistently applied in the year, except where a
newly issued accounting standard is initially adopted or revision to existing accounting standard require a change in the
accounting policy hereto in use. The financial statements are prepared on accrual basis under historical cost convention.
The financial statements are presented in Indian rupees rounded to nearest rupee Lacs.

2.2 USE OF ESTIMATES

The preparation of these financial statements in conformity with Indian GAAP requires the management to make estimates,
judgements and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent liabilities
on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in the period in which the results are
known/materialized. The management believes that the estimates used in the preparation of financial statements are
prudent and reasonable.

2.3 PROPERTY, PLANT & EQUIPMENT
PROPERTY, PLANT 8. EQUIPMENT

Property, plant & equipment (PPE) are stated at cost of acquisition, net of recoverable taxes, trade discounts and rebates
less accumulated depreciation and impairment loss, if any. The cost of property, plant & equipment comprises of its
purchase cost, borrowing cost, other cost, direct/indirect attributable and/or incidental, incurred to bring them to working
condition for its intended use at their present location.

Subsequent expenditures related to any item of property, plant & equipment are added to its book value only if they
increases the future benefits from the existing asset beyond its previously assessed standard of performance.

In respect of additions or extensions forming an integral part of existing assets and insurance spares, including incremental
cost arising on account of translation of foreign currency liabilities for acquisition of assets, depreciation is provided as
aforesaid over the residual life of the respective assets.

When any part or item of property, plant & equipment is disposed, the gain / loss is recognized as net within other income
/ expense in Statement of Profit and Loss. Gain/loss is determined by comparing the proceeds from disposal with the
carrying amount of the disposed asset as on the date of disposal.

CAPITAL WORK IN PROGRESS

Property, plant & equipment which are not ready for their intended use at the reporting date, if any, are disclosed under
Capital Work-in-Progress.

2.4 INTANGIBLE ASSETS

Intangible assets are stated at cost of acquisition, net of recoverable taxes, trade discounts and rebates less accumulated
amortization/depletion and impairment loss, if any. The cost of intangible asset comprises of its purchase cost and other
cost directly attributable to making of asset ready for its intended use. The cost that are directly attributed in
generating/developing the assets including the cost of material consumed, services used and employment cost of
personnel directly involved and overheads that are necessary and that can be allocated on a reasonable and consistent
basis to the assets.

2.5 DEPRECIATION AND AMORTISATION

Depreciation on property, plant & equipment assets is provided to the extent of depreciable amount on the Written Down
Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the
Companies Act, 2013.

Depreciation for the assets purchased / sold during the period is charged on pro-rata basis with reference to the date
when asset is put to use.

Amortization of intangible assets is done during its estimated useful life on basis of Straight-line Method (SLM). Estimated
useful life taken for amortization of each asset is as under:

2.6 IMPAIRMENT OF ASSETS

The management periodically assess whether there is an indication that an asset may be impaired. An asset is treated as
impaired when the carrying cost of asset exceeds its recoverable value. The recoverable value is the higher of the assets''
net selling price or value in use, which means the present value of future cash flows expected to arise from the continuing
use of the assets and its eventual disposal.

An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired.
The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of
recoverable amount.

2.7 FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction or
rate that approximates the actual rate at the date of transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates in effect at the Balance
Sheet date. Non-monetary assets and liabilities denominated in foreign currencies are carried at cost.

Any gains or losses on account of exchange differences either on settlement or on translation is recognized in Statement
of Profit and Loss, unless as per company''s accounting general policy on borrowing cost, they are regarded as borrowing
cost as adjustment to interest cost.

Exchange differences arising from foreign currency borrowing and considered as borrowing costs are those exchange
differences which arise on the amount of principal of the foreign currency borrowings to the extent of the difference
between interest on local currency borrowings and interest on foreign currency borrowings.

2.8 INVESTMENTS

Investments that are readily realisable and intended to be held for not more than 12 months from the date of acquisition
are classified as current investment. All other investments are classified as non-current investment. Current investments
are carried at lower of cost and quoted / fair value on individual investment basis. Non-current investments are stated at
cost. Provision for diminution in the value of Non-current investments is made only if such decline is other than temporary.

On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited
to the Statement of Profit & Loss.

2.9 GOVERNMENT GRANTS AND SUBSIDIES

Government grant is recognised only when there is reasonable assurance that the company will comply the conditions
attached them to and the grants will be received. Government grant related to specific fixed assets has been shown as
deduction from the gross value of the respective asset and the depreciation on the same is adjusted accordingly.
Government grants related to revenue has been recognised as income in Statement of Profit and Loss on a systematic
basis over the period necessary to match them with the related cost which they are intended to compensate. Government
grants which are refundable are shown as liabilities in the Balance Sheet.

2.10 REVENUE RECOGNITION

Revenue from sale of goods is recognized on transfer of significant risk and rewards of ownership to buyer that coincides
with the delivery of goods. The company present revenue net of goods and service tax in its Statement of Profit and Loss.

Revenue from operations includes sale of goods, services and other income from operations.

Export incentives on sales under various schemes notified by the Government has been recognised on accrual basis in the
year of export. Other incentives and subsidies under various schemes notified by the Government has been recognised on
the basis of amount received.

Interest income is recognised on time proportion basis taking into account the amount outstanding and rate applicable.

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.

2.11 INVENTORIES

Item of inventories are valued at lower of cost and net realisable value after providing for obsolescence, if any, except in
case of by-product / scrap / wastage which are valued at net realisable value. However, materials and other items held
for use in the production of finished goods are not valued below cost, if finished products in which they will be incorporated
are expected to sold at or above cost.

Cost of inventories comprises of cost of purchase, duties and taxes (other than those subsequently recoverable), cost of
conversion and other cost including manufacturing overheads net of recoverable taxes incurred in bring them to their
respective location and condition.

Cost of raw materials, process materials, stores and spares, packing materials, trading and other products are determined
on latest purchase price (FIFO) basis.

Work-in-progress and finished and semi finished goods are valued at lower of cost or net realisable value.

Provision of obsolescence on inventories is considered on the basis of management''s estimate based on demand and
market of the inventories.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion
and the estimated costs necessary to make the sale. The comparison of cost and net realizable value is made on item by
item basis.

2.12 BORROWING COST

Borrowing costs include interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings
and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to
the interest cost.

Borrowing costs that are attributable to the acquisition, construction or production of any qualifying assets are capitalized
as part of the cost of such assets. A qualifying assets is one that necessarily takes substantial period of time to get ready
for its intended use. All the other borrowing costs are charged to Statement of Profit and Loss in the period in which they
are incurred.

2.13 INCOME TAXES

Tax expense comprises of current tax and deferred tax. Current tax is measured at amount expected to be paid to the tax
authorities, using the applicable tax rates and considering the benefits admissible under provisions of Income Tax Act,
1961.

Deferred income tax reflects the current period timing differences between taxable income and accounting income and
reversal of timing differences of earlier years / period. Deferred tax asset is recognised and carried forward only to the
extent that there is reasonable certainty that the sufficient future income will be available except that deferred tax assets,
in case there is unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable
income will be available to realise the same.

Deferred tax assets and liabilities are measured using tax rate and tax law that have been enacted or substantially enacted
as on the balance sheet date.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence
that the company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet
date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence
to the effect that the company will pay normal income tax during the specified period.