N B Footwear Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Note 1 Corporate Information

NB Footwear Limited is a Public Limited company incorporated in India and has its registered office at Vellore,
Tamilnadu. As per our report of even date attached, the company is engaged in the business as tanners,
processors, manufacturers, importers, exporters, agents, representatives, dealers and consultants in hides,
skins of all animal leather, leathergoods and footwear of all kinds.

Note 1.1 Basis of Preparation

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), under the
historical cost convention on the accrual basis except for certain financial instruments which are measured at
fair values, the provisions of the Companies Act, 2013 (''the Act'') (to the extent notified) and guidelines issued
by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act
read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the relevant amendment
rules issued thereafter.

Effective April 1,2017, the Company has adopted all the Ind AS standards and the adoption was carried out in
accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards, with April 1, 2017 as the
transition date. The transition was carried out from Indian Accounting Principles generally accepted in India
as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014
(IGAAP), which was the previous GAAP.

Accounting policies have been consistently applied 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.

Note 1.2 Use of estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires the Management to make
estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application
of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets
and liabilities at the date of the financial statements and reported amounts of revenues and expenses during
the period. The application of accounting policies that require critical accounting estimates involving
complex and subjective judgments and the use of assumptions in these financial statements have been
disclosed in Note 1.4. Accounting estimates could change from period to period. Actual results could differ
from those estimates. Appropriate changes in estimates are made as the Management becomes aware of
changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial
statements in the period in which changes are made and, if material, their effects are disclosed in the notes
to thefinancial statements.

Note 1.3 Critical Accounting Estimates
a. Non Curent Assets

For the purposes of current/non-current classification of assets and liabilities the company has ascertained
its normal operating cycle as twelve months. This is based on nature of service and the time between the
acquisiting of assets or inventories for processing and their relaization in cash and cash equivalants.

b Cash and Cash Equivalents

Cash and cash equivalents are short-term (three months or less from the date of acquisition), highly liquid
investments and deposits with the banks that are readily convertible into cash and which are subject to an
insignificant riskof changes in value,
c Earnings Per Share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the
Company by the weighted average number of equity shares outstanding during the period. Diluted earnings
per equity share is computed by dividing the net profit attributable to the equity holders of the Company by
the weighted average number of equity shares considered for deriving basic earnings per equity share and
also the weighted average number of equity shares that could have been issued on conversion of all dilutive
potential equity shares are adjusted for the proceeds receivables had the equity shares been actually issued
at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares
are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity
shares are determined independently for each period presented.

Nature of Reserves

(a) Capital Reserve

The Company recognises profit or loss on purchase, sale, issue or cancellation of the
Company''s own equity instruments is transferred to capital reserve.

(b) Securities Premium Reserve

The amount received in excess of face value of the equity shares is recognised in securities
premium reserve. The reserve is utilised in accordance with the provision of the Companies
Act, 2013.

(c) Retained Earnings

Retained earnings comprise of the undistributed earnings after taxes.

J

As per report of even date attached For & Behalf of the Board of Directors of

For K. Gopal Rao & Co. n B Footwear Limited

Chartered Accountants

FRN : 000956S

(CA Madan Gopal Narayanan) (S.Krishnan) (Kannan Yadav) (Rajen K. Desai)

Partner (ED, CFO & Company Secretary) (Managing Director & CEO) (Director)

M No. 211784 DIN: 00583985 DIN: 00249225 DIN: 00382740

Place: Chennai Place: Mumbai ,

Date : 20.04.2024

1 These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance with all materials aspects, with the generally accepted in India ("Indian GAAP) and comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 which continue to apply under Section 133 of the Companies Act, 2013 ("the Act") read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of the Companies Act, 1956 to the extent applicable. „

1. Current/Non Current Classification

Any asset or liability is classified as current if it satisfies any of the following conditions

i) it is expected to be realized or settled or is intended for sale or consumption in the Company's normal operating cycle;

ii) it is expected to be realized or settled within twelve months from the reporting date

iii) In the case of an asset,

it is primarily held for the purpose of being trades; or

it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liabilitty for at least twelve months after the reporting date.

in the case of liability, the Company does not have an unconditional right to defer settlement of the liability for at leat twelve months from the reporting date. All other assets are classified as non-current.

For the purposes of current/non-current classification of assets and liabilities, the Company has ascertained its normal operating cycle as twelve months. This is based on nature of service and the time between the acquisition of assets or inventories for processing and their realization in cash and cash equivalents.

2. Tangible Fixed Assets

Expenditure which are of a capital nature are capitalised at cost. As the entire block of assets were sold in the year 2011-12 itself' provision of depreciation does not arise.

3. Revenue Recognition

Revenue is recognised excepting for significant uncertainty as to its determination or realisation.

Interest income is recognized on the time proportion basis.

Employee Benefits

There are no permanent employees eligible for reitrement benefits and hence no provision has been made in the accounts for Gratuity, Leave encashment and other retirement benefits.

(annexed to and forming part of the financial statements for the year ended 31.03.2014)

1 These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance with all materials aspects, with the applicable accounting principles in India, the applicable accounting standards notified under Section 211 (3C) and the other relevant provisions of the Companies Act 1956.

All the 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 Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertained its operating cycle to be less than 12 months.

(I) FIXED ASSETS AND DEPRECIATION

Expenditure which are of a capital nature are capitalised at cost. As the entire block of assets were sold in the year 2011-12 itself, provision of depreciation does not arise.

(ii) REVENUE RECOGNITION

Revenue from sales and conversion charges is recognised at the point of despatch of goods to customers.

(iii) RETIREMENT BENEFITS

Contribution to Provident Fund is made monthly at a predetermined rate to the authorities and debited to the Profit and Loss Account on accrual basis.

Gratuity has not been provided in the books of accounts.

I) All the 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 Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertained its operating cycle to be less than 12 months.

ii) FIXED ASSETS AND DEPRECIATION

Expenditure which are of a capital nature are capitalized at cost. As the entire block of assets were sold in the year 2011 -12 itself, provision of depreciation does not arise.

fish REVENUE RECOGNITION

Revenue from sales and conversion charges is recognized at the point of dispatch of goods to customers.

RETIREMENT BENEFITS

Contribution to Provident Fund is made monthly at a predetermined rate to the authorities and debited to the Profit and Loss Account on accrual basis.

Gratuity has not been provided in the books of accounts.

The accounts are prepared under the historical cost convention and materially comply with the mandatory accounting standards.

The significant accounting policies followed by the company are as stated below:

(i) FIXED ASSETS AND DEPRECIATION

Expenditure which are of a capital nature are capitalised at cost. Depreciation is charged on straight-line method in accordance with the rates specified under Schedule XIV to the Companies Act, 1956. Full years depreciation is provided in the year of addition and no depreciation is provided in the year of sale/disposal.

(ii) REVENUE RECOGNITION

Revenue from sales and conversion charges is recognised at the point of despatch of goods to customers.

(iii) RETIREMENT BENEFITS

Contribution to Provident Fund is made monthly at a predetermined rate to the authorities and debited to the Profit and Loss Account on accrual basis. Gratuity has not been provided in the books of accounts.

The accounts are prepared under the historical cost convention and materially comply with the mandatory accounting standards.

The significant accounting policies followed by the company are as stated below:

FIXED ASSETS AND DEPRECIATION

Expenditure which are of a capital nature are capitalised at cost Depreciation is charged on straight-line method in accordance with the rates specified under Schedule XIV to the Companies Act, 1956. Full years depreciation is provided in the year of addition and no depreciation is provided in the year of sale/disposal.

REVENUE RECOGNITION

Revenue from sales and conversion charges is recognised at the point of despatch of goods to customers.