Sawaliya Food Products Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as
amended) and the relevant provisions of the Companies Act, 2013. The accounts of the company are prepared under the historical
cost convention and in accordance with the applicable accounting standards, except where otherwise stated. For reorganization of
Profit & Loss, mercantile system of accounting is followed except Rebate & Discount on Sales/Purchases, where accounting is done on
payment/ receipt basis.

1.2 Use of estimates

The Preparation of financial Statements in conformity with generally accepted accounting principles ("GAAP") requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities
on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is
recognized prospectively in current and future periods.

1.3 Inventories

Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realisable value after providing for
obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale,
including octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate
proportion of overheads and, where applicable, excise duty.

1.4 Depreciation and amortisation

Depreciation on Fixed Assets has been provided on Straight Line Method based on useful life of the assets as prescribed in Schedule II
to the Companies Act, 2013. Depreciation on additions is on the basis of days the assets was used and the same practice is followed for
deletions as well.

1.5 Revenue recognition

Sale of goods

Sales of goods ie accounted on accrual basis and are recognised, net of returns and trade discounts, on transfer of significant risks and
rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but
exclude sales tax and value added tax.

1.6 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.7 Tangible fixed assets

Fixed assets, are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest
on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other
incidental expenses incurred up to that date. Machinery spares which can be used only in connection with an item of fixed asset and
whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets.
Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits
from such asset beyond its previously assessed standard of performance.

1.8 Employee benefits

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post¬
employment medical benefits.

Defined contribution plans

The Company''s contribution to providentfund and superannuation fund 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.

1.9 Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to
the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of
the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities
relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the
assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when
active development activity on the qualifying assets is interrupted.

1.10 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) aftertax (including the post tax effect of extraordinary items, if any)
by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the
profit / (loss) aftertax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges
to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for
deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion
of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would
decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as
at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted forthe
proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive
potential equity shares are determined independently for each period presented. The number of equity shares and potentially
dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

1.11 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the
Income Tax Act, 1961.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that
originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates
and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing
differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is
virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised
for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be
available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income
levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are
reviewed at each Balance Sheet date for their realisability.

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and
Loss.

1.12 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of
impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these
assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in
use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is
indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such
reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.