ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Shree Refrigerations Ltd.

2. SIGNIFICANT ACCOUNTING POLICIESa. Basis of preparation of Financial Statements

The financial statements of the company have been
prepared in accordance with generally accepted
accounting principles in India and 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
and the relevant provision of the Companies Act, 2013.

The financial statements have been prepared under
the historical cost convention on an accrual basis.
The accounting policies applied by the Company are
consistent with those used in the previous year unless
otherwise specified.

The financial statements provide comparative
information in respect of the previous period. The
financial statements are presented in Indian National
Currency Rupee (Rs.) which is functional currency of
the Company and all values are rounded off to the
nearest Lakhs, except where otherwise indicated.

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 Act. Based on the nature of operations and time
difference between the sale of products and services
and realization of cash and cash equivalents, the
company has ascertained its operating cycle as 12
months for the purpose of the purpose of current and
non-current classification of assets and liabilities.

Use of estimates

The preparation of financial statements in conformity
with Indian GAAP requires the management to make
judgments, estimates and assumptions that affect
the reported amounts of revenue, expenses, current
assets, non-current assets, current liabilities, non¬
current liabilities and disclosure of the contingent
liabilities at the end of each reporting period. Although
these estimates are based on management''s best
knowledge of current events and actions, uncertainty
about these assumptions and estimates could result
in the outcomes requiring a material adjustment to
the carrying amount of assets or liabilities in future
periods.

b. Inventories

Cost of Inventories have been computed to include
all cost of Purchases, Cost of Conversion and Other
Costs incurred in bringing the inventories to their
present location and condition:

a. Raw materials and components, stores and spares
are valued at cost. The costs are ascertained using
the FIFO method, except in case of slow moving
and obsolete material, at lower of cost or estimated
realisable value.

b. Work-in-Progress and finished goods are valued at
the lower of cost or estimated realisable value.

c. Scrap is valued at estimated realisable value.

d. Goods in transit are stated at actual cost upto the
date of Balance Sheet.

c. Statement of Cash Flow

Cashflows are reported using the indirect method,
whereby profit/(loss) before extraordinary items and
tax is adjusted for the effects of transactions of non¬
cash nature and any deferrals or accruals of past or
future cash receipts or payments. The cashflows
from operating, investing and financing activities of
the Company are segregated based on the available
information.

Cash and cash equivalents for the purpose of cashflow
statement consists of cash in hand and cash at bank
and short-term investments with an original maturity
of three months or less.

d. Events occurring after Balance sheet date

Events occurring after the balance sheet date are those
significant events, both favorable and unfavorable, that
occur between the balance sheet and the date on which
the Standalone financial statements are approved by
the Board of Directors. Adjustments to assets and
liabilities are required for events occurring after the
balance sheet date that provide additional information
materially affecting the determination of the amounts
relating to conditions existing at the balance sheet
date. To that extent Assets and Liabilities are adjusted
for events occurring after the balance sheet date
which indicates that the fundamental accounting
assumption of going concern is not appropriate.

e. Depreciation

Depreciation on fixed assets has been provided in a
manner that amortizes the cost of the assets over their
estimated useful lives on Written down value method as
per the useful life prescribed under Schedule-II to the
Companies Act, 2013 except in following cases where
the management based on a technical evaluation have
estimated the life to be different than the life prescribed
in Schedule-II as under:

f. Revenue recognition

Revenue is recognized to the extent it is probable that

the economic benefits will flow to the company and

the revenue can be reliably measured.

i. Sale of products and services are recognized when
the significant risks and rewards of ownership
of the goods have passed to the buyer and when
services are rendered.

ii. Interest income is recognized on a time proportion
basis determined by the amount outstanding and
the rate applicable.

iii. Dividend income is not recognized in the profit and
loss statement until the right to receive payment is
established in the reporting period.

iv. Other income is recognized on an accrual basis
in accordance with the terms of the relevant
agreement.

g. Property, Plant and Equipment

i. Property, Plant and Equipment are stated at cost
less accumulated depreciation and accumulated
impairment, if any. The cost of a fixed asset
comprises its purchase price and any attributable
cost of bringing the asset to its working condition
for its intended use.

ii. Borrowing costs are attributable to construction or
acquisition of qualifying fixed assets for the period
up to the completion of construction or acquisition
of such fixed assets are included in the gross book
value of the asset to which they relate.

iii. Capital work in progress is stated at cost. All the
directly attributable expenditure till the asset is
commissioned is accounted for as Capital work-
in-progress and is classified as the appropriate
categories of fixed assets when completed and
ready for intended use.

iv. Gains and losses arising from derecognition of fixed
assets are measured as the difference between the
net disposal proceeds and the carrying amount of
the asset and are recognized in the statement of
profit and loss when the asset is derecognized.

h. Foreign currency transactions

A foreign currency transaction is recorded on initial
recognition in the reporting currency by applying to the
foreign currency amount, the exchange rate between
the reporting currency and the foreign currency at the
date of the transaction.

At the year end, monetary items denominated in foreign
currencies are converted into rupee equivalents at the
year-end exchange rates. All exchange differences
arising on settlement/conversions on foreign currency
transactions are included in the Profit and Loss
Statement.

i. Government Grants

Grants and subsidies from the government are
recognized if there is reasonable assurance that the
Company will comply with the conditions attached
to it and such benefits are earned and reasonable
certainty exists of the collection.

Government grants are recognized in accordance with
the terms of the respective grant on accrual basis
considering the status of compliance of prescribed
conditions and ascertainment that the grant will be
received.

j. Investments

Investments are classified as trade when investment is
made in the shares or debentures of another company
for the purpose of promoting the trade or business of
the company.

Investments that are readily realizable and intended to
be held for not more than a year from the date on which
such investment is made are classified as current
investments. All other investments are classified as
long-term investments.

Current investments are carried at lower of cost and
fair value determined on an individual investment
basis.

Long-term investments are carried out at cost.
However, provision for diminution in value is made to
recognize a decline other than temporary in the value
of such investments.

k. Employee benefitsShort-term Employee Benefits

Short-term employee benefits expected to be paid
wholly within twelve months in exchange for the
services rendered by employees are recognized
undiscounted during the period employee renders
services.

Post-Employment benefits
Defined contribution plans

The Company''s contribution to provident fund,
employee state insurance scheme, Pension scheme
etc. are considered as defined contribution plans and
are charged as an expense as they fall due based on
the amount of contribution required to be made and
when services are rendered by the employee.

Defined benefit plans

Company''s contribution for the period to defined
contribution retirement benefit schemes are
charged to statement of profit and loss. Company''s
liability towards defined benefit plan viz; gratuity is
determined using the Projected Unit Credit Method as
per actuarial valuation carried out at the balance sheet
date. The Company covers its liability by contributing
to an employee gratuity fund established with Life
Insurance Corporation of India, based on actuarial
valuation carried out at the end of each financial year.

Other long term employee benefits

The obligation for long-term employee benefits such
as long-term compensated absences is determined
using the Projected Unit Credit Method as per actuarial
valuation carried out at the balance sheet date.
Accumulated leaves that are expected to be utilized
within the next 12 months are treated as short term
employee benefits.

l. Borrowing Costs

Borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying
asset are capitalized as part of the cost of those assets
up to the date when such assets are ready for their
intended use. Other borrowing costs are recognized
as an expense in the period in which they are incurred.

m. Segment Reporting

The company operates in a single business segment
and primarily within the geographical boundaries of
India. Accordingly, the requirements of Accounting
Standard 17 "Segment Reporting" are not applicable.

n. Leases

Lease arrangements where the risks and rewards
incidental to ownership of an asset substantially vest
with the lessor are recognized as operating leases.
Operating lease rentals are expensed with reference to
lease terms and other considerations. Lease rentals
are recognized on straight line basis. There are no
finance leases.

o. Earnings per share

For the purpose of calculating basic earnings per
share, the net profit or loss for the period attributable
to equity shareholders after deducting any attributable
tax thereto for the period is divided by weighted number
of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable
to equity shareholders and the weighted average
number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity
shares.

p. Taxes on Income

Tax on income for the current period is determined
on the basis of taxable income after considering the
various deductions available under The Income Tax
Act, 1961.

Deferred tax is recognized on timing differences
between the accounting income and the taxable
income for the year. The tax effect is calculated on
the accumulated timing differences at the end of the
accounting period based on prevailing enacted or
subsequently enacted regulations.

Deferred tax liabilities are recognized for all timing
differences. Deferred tax assets are recognized for
deductible timing differences only to the extent there
is reasonable certainty that sufficient future taxable
income will be available against which such deferred
tax assets can be realized. At each reporting date the
company reassesses the unrecognized deferred tax
assets and reviews the deferred tax assets recognized.

q. lntangible Assets

The company has computer software as acquired
intangible asset. It is amortized at the rate of 40% p.a.
on written down value method.

Expenditure incurred during the year that is expected
to generate long-term benefits for the Company are
treated as Deferred Revenue Expenditure and are
capitalized. Such expenditure is amortized over
subsequent financial years on a pro-rata basis in
proportion to the estimated revenue generated from
the related benefits.

At present, the Company has the following expenses
as Deferred Revenue Expenditure:

• Expenditure incurred in relation to Project P17A
has been capitalized and is amortized on a pro-rata
basis in proportion to the revenue recognized from
the respective orders.

• Expenses related to issue of further capital
Expenses incurred in connection with the issue of
further capital have been capitalized and are being
amortized on a straight-line basis over a period
of five years, commencing from the financial year
2021-22.

• As of 31-03-2026, there is ‘nil'' unamortised deferred
revenue expenditure.

r. Impairment of assets

The Company tests for impairments at the close of the
accounting period, if and only if, there are indications
that suggest a possible reduction in the recoverable
value of an asset. If the recoverable value amount of
an Asset, i.e. the net realisable value or the economic
value in use of a cash generating unit, is lower than the
carrying amount of the Asset, the difference is provided
for as impairment. However, if subsequently, the
position reverses and the recoverable amount become
higher than the then carrying value, the provision to
the extent of the then difference is reversed, but not
higher than the amount provided for.

1. Corporate information :-

Shree Refrigerations Limited (the "Company") was incorporated in India as a Private Limited company with its operating office in Karad. The company was converted into a Public Limited company with effect from 05-12-2023. The Company is engaged in the manufacturing of Multi-Product Refrigeration and Air-conditioning Appliances and testing equipment for Refrigeration and Air-conditioning industry.

CIN of the Company is U29191PN2006PLC128377.

2. Significant accounting policies a. Basis of preparation :-

The accompanying financial statements are prepared in Indian rupees and comply in all material aspects with the Accounting Standards notified under Section 133 of the Companies Act, 2013, read with Companies (Accounts) Rules, 2014. Financial Statements have been prepared on accrual basis under the historical cost convention

b Use of estimates :-

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumption to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Any revision between actual results and estimates are recognized in the period in which the results are known or materialized.

c. Inventories :-

• The inventories of Raw Materials are Valued at Cost or Net Realisable Value, whichever is less, Work-in-Progress and Finished Goods are valued at Cost plus Manufacturing Cost.

• Inventories are valued on FIFO Basis.

d. Revenue recognition :-

• Revenue from sale of Refrigeration and air conditioning appliances is recognized as and when the risk and rewards in relation to the product is transferred to the buyer, and it happens on dispatch of the goods. The sales are made ex-factory.

• Revenue from Services is recognized, when the performance of such services is completed.

• Interest on fixed deposits with Banks/ Financial Institutions is recognized on accrual basis.

• The revenue from Subsidies is recognized when the subsidies are sanctioned by the relevant authority.

e. Fixed assets and depreciation :-

• Fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of purchase price, inward freight and installation expenses, net of discounts, if any. The taxes paid on acquisition of fixed assets in respect of which set-off is available as per the provisions of relevant statute are not included in cost of asset. The borrowing costs are capitalized, if the relevant requirements for capitalisation are met in respect of qualifying assets, as per AS-16.

• When any Fixed Asset is sold/ disposed off, the difference between carrying value (i.e. the cost of acquisition of the fixed asset reduced by the total depreciation provided on the said fixed asset till the date of sale) and the consideration on sale of the fixed asset is recorded as Profit / Loss on the sale of Fixed Asset in the Statement of Profit and Loss.

• The tangible fixed assets have been depreciated on written down value basis, considering their useful lives and the Scrap Value, as estimated by the management, as per the requirements of Schedule II to the Companies Act, 2013. The depreciation for the current period has been provided pro-rata to the annual depreciation chargeable for the current financial year, based on the position until the end of current period.

• The management believes that the depreciation provided on tangible fixed assets fairly reflects the useful lives of such assets, although the useful lives considered may be different from the useful lives specified in Schedule II to the Companies Act, 2013.

• The useful lives estimated by the management in respect of tangible Fixed Assets are as follows :

The depreciation for the current period has been provided pro-rata to the annual depreciation chargeable for the current financial year, based on the position until the end of current period.

• Depreciation on the fixed assets acquired during the year has been provided on pro-rata basis from the date of acquisition of the asset.

f. Amortisation :-

• Expenditures incurred during the year, which have long-term benefits on the revenue of the Company are treated as Deferred Revenue and are capitalised.

• Such expenses are amortised in subsequent financial years pro-rata based on the estimated revenue to be generated for which the expenditures have been incurred.

• Capitalised expenses are bifurcated into Current and Non-Current Assets as on the date of Financial Statements, based on the estimated amortisation in subsequent financial year.

• At present, the Company has capitalised following expenses :

i. The expenses incurred towards the Project P17a for which the company has orders in hand. The same will be amortised pro-rata to the revenue generated from the order.

ii. The expenses in connection with issue of further capital. The same will be amortised on straight line basis over the period of 5 years starting from FY 2021-22.

g. Foreign currency transactions :-

i. Initial recognition :-

Transactions in foreign currencies are recorded in reporting currency (i.e. Indian Rupee) by applying to the foreign currency amount, at the exchange rate prevailing as at the date of the transaction between the reporting currency and the foreign currency.

ii. Conversion as on Reporting Date :-

At the year end, monetary assets and liabilities denominated in foreign currencies are retranslated at the rates of exchange prevailing at the reporting date.

iii. Exchange Differences :-

The exchange difference arising upon the settlement of the foreign currency transaction and/ or the retranslation as on the reporting date is recognized as income or expense in the Statement of Profit & Loss.

h. Employee benefits :-

1. Benefits in the Provident Fund and Pension Schemes whether in pursuance of law or otherwise which are defined contributions is accounted on accrual basis and charged to Profit & Loss Account of the year.

2. Gratuity: Payment for present liability of future payment of gratuity is being made to approved gratuity funds, which fully cover the same under cash accumulation policy of the Life Insurance Corporation of India. The employee''s gratuity is a defined benefit funded plan. The present value of the obligation under such defined benefit plan is determined based on the actuarial valuation using the Projected Unit Credit Method as at the date of the Balance Sheet and the shortfall in the fair value of the plan Assets is recognised as an obligation.

3. Privilege Leave Benefits: Privilege Leave Benefits or compensated absences are considered as long term unfunded benefits and is recognised on the basis of an actuarial valuation using the projected Unit Credit Method determined by an appointed Actuary.

4. Termination benefits: Termination benefits such as compensation under voluntary retirement scheme are recognized as a liability in the year of termination.

i. Leases :-

• Operating lease expenses are recognized in the statement of profit and loss on a straight line basis over the lease term, as and when they arise.

• The Company has no financial commitments in respect of non-cancellable operating leases. j Earnings per share :-

The Company does not have any potential equity shares outstanding during the year. The basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by weighted average number of equity shares outstanding during the year. k. Taxation :-

Provision for current tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961.

Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enactive on the balance sheet date. Deferred tax assets are recognized and carried forward to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

L Impairment of assets :-

At each balance sheet date, the Company reviews the carrying amount of its assets to assess whether there is an indication that those assets may be impaired. If any such indication exists, the Company makes an estimate of the asset''s recoverable amount. If the recoverable amount of the asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Any impairment loss is immediately recognized in the profit and loss.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset in the prior years.

m. Provisions: -

A provision is recognised when the Company has a present obligation as a result of past event; it is 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.

n. Deferred Tax :-

The company recognises deferred tax liability or deferred tax asset provision arising on account of timing differences between the profit as per the Financial Statements and the income taxable under the provisions of Income Tax Act, 1961. For the current period, the Deferred Tax has been provided on the Depreciation.

o. Segment Reporting: -

As the Company''s business activity falls within a single primary business segment namely, manufacturing of air conditioning and refrigeration appliances, and a single geographical segment, the disclosure requirements of Accounting Standard AS-17 on Segment Reporting as under Companies (Accounting Standards) Rules, 2006 are not applicable.

p. Investments: -

• Investments which are readily realisable and intended to be held for not more than one year from the date of making such investments are classified as Current Investment.

• Current Investments are carried at cost or fair market value, whichever is less.

• Long-Term Investments are carried at cost. Provision for the diminution, if any, in the value of investment is made, unless such diminution is of temporary nature.

3. Additional Regulatory Disclosures: -

a) The company has not revalued its Property, Plant and Equipment during the year.

b) During the year, the company has not made any investments in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

c) No proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

d) The Company has not defaulted in repayment of any loan or other borrowings or any interest due thereon to any lender. The company has not been a declared willful defaulter by any bank or financial institution or other lender.

e) The company has registered the charge with Registrar of Companies in respect of term loans sanctioned during the year.

f) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g) No funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

h) Company does not have any relation or transitions with Struck of Companies.

i) As at March 31, 2024, the provisions of section 135 of the Act relating to Corporate Social Responsibility are applicable to the Company. Accordingly, the company has formulated a CSR policy and established a committee for allocation of funds earmarked for CSR initiatives in the current financial year.

((i) amount required to be spent by the company during the year: Rs.18,20,259.00

(ii) amount of expenditure incurred: Rs.20,94,400.00

(iii) shortfall at the end of the year: Nil

(iv) total of previous year''s shortfall: Nil

(v) reason for shortfall: Nil

(vi) amount carried forward for next year: Rs. 2,74,141.00

_(vi) nature of CSR activities:_

j) The company has not done any trading or investing in crypto currency or virtual currency.

k) No scheme of arrangement is applied in the company.

l) The company has complied with number layers of companies. Trezor Technologies Private Limited is only a subsidiary company of Shree Refrigerations Limited.

Previous Year figures: -

As required, the figures of the previous year/ period have been regrouped/ reclassified/ restated to correspond with the figures of the current year/ period.