Shivashrit Foods Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

IB Summary of Significant accounting policies

i) Basis of Preparation of Financial Statements

These financial statement arc prepared in accordance with Generally Accepted Accounting Principles in India (“Indian GAAP”) to comply with the
Accounting Standard ("AS") specified under section 133 of the Companies Act 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the
relevant provisions of the Companies Act, 2013. The financial statements have been prepared in accordance with revised Schedule III requirements
including previous year comparatives. The financial statements have been prepared under historical cost convention on an accrual basis in accordance with
accounting principles generally accepted in India. The accounting policies have been consistently applied by the company and are consistent with those
used in previous year

The financial statements arc presented in Indian rupees unless otherwise stated.

ii) Use of estimates

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of
assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and
expense dunng the year. Examples of such estimates include provisions for doubtful receivables, provision for income taxes, the useful lives of depreciable
fixed assets and provision for impairment. Future results could differ due to changes in these estimates and the difference between the actual result and the
estimates are recognized in the period in which the results arc known / materialise

iii) Current-non-current classification

All assets and liabilities are classified into current and non-curreni.

Assets

An asset is classified as current when it satisfies any of the following entena.

i. It is expected to be realized in, or is intended for sale or consumpuon in. the Company''s normal operating cycle;

u. It is held primarily for the purpose of being traded;

iii It is expected to be realized within 12 months after the reporting date; or

iv. It is cash or cash equivalent unless it is restricted from being exchanged or used to setde liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets All other assets arc classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:
i. It is expected to be settled in the Company''s normal operating cycle;
u. It is held pnmarily for the purpose of being traded;
in It is expected to be settled within 12 months after the reporting date; or

iv. The Company docs not have an unconditional nght to defer setdemem of the liability for at least 12months after the reporting date. Terms of a liability
that could, at the option of the counterparty, results in its setdemem by the issue of equity instruments do not affect its classification.

Current Labilities include the current portion of non-currcnt financial liabilities. .All other liabilities are classified as non-current.

iv) Property, Plant and Equipment

Property, Plant & Equipment are stated at cost of acquisition/construction less accumulated depreciation, amortization and impairment loss, if any Cost
composes of purchase pricc/cost of construction that relate direedy to the specific assets, duties and other non-refundablc taxes or levies and any other
incidental expenses dirccdy attributable to bringing the asset to the working condition for its intended use.

v) Depreciation

Depreciation is provided on Wnttcn Down Value Method over its economic useful lives prescribed under Schedule II of the Companies Act, 2013

y~~ iv

vi) Revenue Recognition
Sale of Goods

Sale of goods is recognized when significant risks and rewards of ownership of goods have been transferred to the buyer for a consideration. The amount
of revenue arising from a transaction is usually determined by an agreement between the parties involved in the transaction excluding value added tax/
goods and services tax, after deducting discount and allowances.

Other Income

All other Income arc recognized on an accrual basis based on the effective rate.

vii) Foreign Currency Transactions

Initial recognition

Foreign currency transactions arc recorded 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

Conversion

Foreign currency monetary items are reported using the closing rate. Non-monetary items which arc earned in terms of histoncal cost denominated in a
foreign currency are reported using the exchange rate at the date of the transaction, and non-monetary items which are earned at fair value or other similar
valuation denominated in a foreign currency arc reported using the exchange rates that existed when the values were determined.

Exchange Differences

Exchange differences arising on the settlement of monetary items ot on reporting monetary items of the Company at rates different from those at which
they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses tn the year in which they
arise.

viii) Retirement and Other Employee Benefits

Liabilities in respect of benefits to employees arc provided as follows:

Short-term employee benefits

Short term employee benefits such as salary and wages, bonus including non monetary benefits that are expected to be setded with in 12 months after the
end of period in which employee rendered the related services arc recognised at undiscounted value of expected compensation payable and shown as
liability (accrued expense), after dcducung any amount already paid. Where the amount already patd exceeds the undiscounted amount of the benefits, such
excess is recognised as an asset (prepaid expense)

Long term employee benefits

The company has a policy that postive balance of paid absence (paid leaves) enmlcd by an employee shall neither be accumulated for future compensated
absence nor be encashed during the term of employement or even after termtnanon.

Post seperation employee benefit plan

(i) Defined Benefit Plan

The cos, of defined benefit plan t.e. gratuity liability and present value of defined benefit obligation are based on .actuanal *ej^ted

credit method. An actuanal valuation involves making various assumpuons .ha, may differ from aciual developments in .he funire. *e

determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved m the valuation and its longterm nature
defined benefit obligation is highly sensitive to changes in these assumptions. All assumpuons are reviewed at each reportmg date Actuanal gams/losse.
immediately taken to the statement of profit and loss and arc not deferred.

(11) Defined Contribution Plan

Company''s contribuUon to Provident Fund, which is a defined contribution plan, is charged to the statement of profit and loss and the amount no,
deposited as on the reporting date is shown as liability under the head Other Current Liabilities.

^1X) Ratine 1 eases Rentals are expensed on a straight line basis wilh reference to the lease terms and other considerations.

_{t F}^_ance 1® _{Thc ]owcr} of Ihe fair value of the assets and present value of the minimum lease rentals is capitalised as Fixed Assets with corresponding
amount disclosed as lease liability. Thc pnneipal component in the lease rental is ad.usted agatns, the lease liability and the .merest component « charged o
Profit and I-oss Statement.

x) Taxation

Income-tax expense comprises current tax. deferred tax charge or credit

current tax ,s made for the tax liability payable on taxable income after cons.denng tax allowances, deductions and exempuons determined in
orcPti^w^Kh the prevailing tax laws

Deferred tax liability or asset is recognized for timing differences between the profits/losses offered for income tax and profits/losses as per the financial
statements Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted at the Balance
Sheet date.

Deferred tax asset is recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed
depreciation or carried forward loss under taxation laws, deferred tax asset is recognized only if there is a virtual certainty of realization of such asset.
Deferred tax asset is reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be
realized.

xi) 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. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to
parucipate in dividends relative to a fully paid equity share during the reporting period. The weighted average numbers of equity shares outstanding dunng
the period are adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation
of shares).