Sylvan Plyboard (India) Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

C. Statement of Significant Accounting Policies

The material accounting policies applied by the Company in the preparation of its financial statements are listed below. Such
accounting policies have been applied consistently to all the periods presented in these financial statements, unless otherwise
indicated.

Basis of Preparation of Financial Statements:

The financial statements have been prepared to comply in all material aspects with the Generally Accepted Accounting Principles in
India (Indian GAAP), including the Accounting Standards prescribed under section 133 of the Companies Act, 2013 (Act) read with
Rule 7 of the Companies (Accounts) Rules, 2021, the provisions relating to the Act (to the extent notified) and other accounting
principles generally accepted in India, to the extent applicable. The financial statements are prepared on accrual basis under the
historical cost convention. The financial statements are prepared under Division I of the Schedule III of the Companies Act, 2013
(as amended). The functional and presentation currency of the Company is Indian Rupee ("INR”) which is the currency of the primary
economic environment in which the Company operates.

Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires management to make judgments, estimates and
assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial
statements and the reported amount of revenues and expense during the reporting period. Accounting estimates could change from
one period to another. Actual results could differ from those estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods as and when the Management becomes aware of the changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the year in which the changes are made and, if material, their
effects are disclosed in the notes to the financial statements.

Operating Cycle

Based on the nature of products/activities of the company and the normal time between acquisition of assets and their realization in
cash or cash equivalents, the company has determined its operating cycle as 12 months for the purpose of classification of its assets
and liabilities as current and non-current.

Current and Non-Current Assets:

a) Assets:

An asset is classified as current when it satisfies any of the following criteria:

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

b) It is held primarily for the purpose of being traded;

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

d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at-least 12 months after
the reporting date.

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

b) Liabilities:

A liability is classified as current when it satisfies any of the following criteria:

a) It is expected to be settled in the Company''s normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within 12 months after the reporting date; or

d) The Company does not have an unconditional right to defer settlement of the liability for atleast 12 months after the reporting
date.

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

c) Deferred tax assets or liabilities are classified as non-current assets and liabilities.

Property, Plant and Equipment and Depreciation:

Property, plant and equipment are carried at cost of acquisition or construction net of recoverable taxes, trade discounts and rebates
less accumulated depreciation and/or accumulated impairment loss, if any. The cost of an item of property, plant and equipment
comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of
bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the
purchase price. Subsequent expenditures related to an item of property, plant and equipment (except land) are added to its book
value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. The
valuation and recognition is done by keeping in view the provisions of the Accounting Standard 10 on "Accounting for Property, Plant
and Equipment". None of Fixed Assets have been revalued during the Year.

Depreciation on Tangible Fixed Assets has been provided on Written down Value Method over the useful lives of Assets as
prescribed in Schedule II of the Companies Act, 2013. Depreciation for Assets purchased/sold during a period is proportionately
charged.

Property, plant and equipment is eliminated from the financial statements on disposal or when no further benefit is expected from its
use and disposal. Losses arising from retirement or gains or losses arising from disposal of property, plant and equipment which are
carried at cost are recognized in the Statement of Profit and Loss.

The Details of estimated life of each category of assets are as under¬
Land- Nil, Factory Building- 30 Years, Office Building- 60 years, Plant & Machinery- 15 years, Furniture- 10 Years, Motor Vehicle- 8
Years, Computer & Printer- 3 Years

Intangible assets and amortization:

Patents, trademarks and software costs are included in the balance sheet as intangible assets when it is probable that associated
future economic benefits would flow to the Group. In this case they are measured initially at purchase cost and then amortized on a
straight-line basis over their estimated useful lives.

Intangible assets are evaluated for recoverability wherever there is any indication that their carrying value may not be recoverable.
If any such indication exists, the recoverable amount is higher of fair value less costs to sell and value in use is determined on an
individual asset basis under the asset that does not generate cash flow that are largely independent from the assets. In such cases,
the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs. If the recoverable value of an
asset (CGU) is estimated to be less than it carrying amount, the carrying amount of the asset (CGU) is reduced to its recoverable
value. An impairment loss is recognized in the statement of profit and loss.

Inventories:

Inventories comprise the followings: a) Raw materials, b) Work-in-progress, c) Finished and semi-finished goods d) Stock-in-trade,
and e) Stores and spares.

Inventories are recorded at the lower of cost and net realizable value. Cost is ascertained on a weighted average basis. Costs
comprise direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the
inventories to their present location and condition.

Net realizable value is the price at which the inventories can be realized in the normal course of business after allowing for the cost
of conversion from their existing state to a finished condition and for the cost of marketing, selling and distribution. Provisions are
made to cover slow moving and obsolete items based on historical experience of utilization on a product category basis, which
involves individual businesses considering their product lines and market conditions.

Employee Benefits:

Short-term employee benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee
benefits. These benefits include salaries and wages, bonus and ex-gratia.

Contributions under defined contribution plans are recognized as expense for the period in which the employee has rendered service.
Payments made to state managed retirement benefit schemes are dealt with as payments to defined contribution schemes where
the Company''s obligations under the schemes are equivalent to those arising in a defined contribution retirement benefit scheme.

For defined benefit retirement schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with
actuarial valuation being carried out at each year-end balance sheet date. Remeasurement gains and losses of the net defined
benefit liability/(asset) are recognized immediately in other comprehensive income. The service cost and net interest on the net
defined benefit liability/(asset) are recognized as an expense within employee costs. Past service cost is recognized as an expense
when the plan amendment or curtailment occurs or when any related restructuring costs or termination benefits are recognized,
whichever is earlier. The retirement benefit obligations recognized in the balance sheet represents the present value of the defined
benefit obligations as reduced by the fair value of plan assets.

Investments:

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

On initial recognition, all investments are measured at cost. The cost comprises of purchase price and directly acquisition charges
such as brokerage, fees and duties.

Long -term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than
temporary in the value of the investments. On disposal of investments, the difference between its carrying amount and net disposal
proceeds is charged or credited to the statement of profit & loss.

Recognition of Revenue and Expenditure:

Revenue Recognition: Revenue is recognized as and when the economic benefits will flow to the company.

Sale of Goods:

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed
to the buyer, usually on delivery of the goods, The Company collects GST on behalf of the government and, therefore, these are not
economic benefits flowing to the Company. Hence, they are excluded from Revenue.

Interest:

Interest benefits are recognized on a time proportion basis taking into account the amount outstanding and the applicable interest
rate. Interest income is included under the head "Other Income" in the statement of Profit and Loss.

All other Income and Expenditure to the extent considered receivable and payables unless specifically stated are accounted for on
accrual and prudent basis.

Foreign Currency Translation:

Initial recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount
with the exchange rate between the reporting currency and the foreign currency at the date of the transaction. The rate of conversion
used is the rate prescribed by the CBEC.

Conversion: Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non¬
monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange
rate at the date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated in
a foreign currency, are translated using the exchange rate at the date when such value was determined.

Exchange differences:

The transactions in foreign exchange are accounted at the exchange rate prevailing on the date of the transaction. Assets &
liabilities denominated in foreign currency are restated at the year-end adopting the contracted/ year end rates as applicable. Any
exchange gains or losses arising out of subsequent fluctuations are accounted in the Profit & Loss Statement.

Translation of foreign exchange transaction:

Company follows AS - 11 (Revised) in respect of Foreign Currency Transaction applying the principle of most likely
realizable/disbursable amount.

Forward Contracts:

The Company enters into forward contracts in order to hedge its foreign currency exposures. As per Para 36 of AS11, premium or
discount arising at the inception of such a forward exchange contract have been amortized as expense or income over the life of
the contract. Exchange differences on such contracts have been recognized in the statement of profit and loss in the reporting
period in which the exchange rates change. The contracts are entered for a short-term period of less than 12 months.

Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted number
of equity shares outstanding during the period is adjusted for events that have changed the number of equity shares outstanding,
without a corresponding change in resources.

Accounting for Taxes on Income:

Tax expense comprises of Current Tax and Deferred Tax. Current Tax is measured as the higher of the amount expected to be paid
to the tax authorities, using the applicable tax rates.

Deferred Income Tax reflect the current period timing differences between taxable income and accounting income for the period and
reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a reasonable
certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or
losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.

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Mar 31, 2024

3. Statement of Significant Accounting Policies

The accounting policies set out below have been applied consistently to the year presented in these financial statements.

Basis of Preparation of Financial Statements:

The financial statements have been prepared to comply in all material aspects with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards prescribed under section 133 of the Companies Act, 2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions relating to the Act (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable. The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees. The financial statements are prepared under Division I of the Schedule III of the Companies Act, 2013.

The financial statements are presented in Indian rupees, which is the functional currency of the country and all values are rounded off to Lacs except when otherwise indicated.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and the reported amount of revenues and expense during the reporting period. Accounting estimates could change from one period to another. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods as and when the Management becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are reflected in the year in which the changes are made and, if material, their effects are disclosed in the notes to the financial statements.

Operating Cycle

Based on the nature of products/activities of the company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

Current and Non-Current Assets:

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

Assets:

An asset is classified as current when it satisfies any of the following criteria:

a) It is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle;

b) It is held primarily for the purpose of being traded;

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

d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at-least 12 months after the reporting date.

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

Liabilities:

A liability is classified as current when it satisfies any of the following criteria:

a) It is expected to be settled in the Company''s normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within 12 months after the reporting date; or

d) The Company does not have an unconditional right to defer settlement of the liability for atleast 12 months after the reporting date.

Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Property, Plant and Equipment and Depreciation:

Property, plant and equipment are carried at cost of acquisition or construction net of recoverable taxes, trade discounts and rebates less accumulated depreciation and/or accumulated impairment loss, if any. The cost of an item of property, plant and equipment comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditures related to an item of property, plant and equipment (except land) are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. The valuation and recognition is done by keeping in view the provisions of the Accounting Standard 10 on "Accounting for Property, Plant and Equipment". None of Fixed Assets have been revalued during the Year.

Depreciation on Tangible Fixed Assets has been provided on Written down Value Method over the useful lives of Assets as prescribed in Schedule II of the Companies Act, 2013. Depreciation for Assets purchased/sold during a period is proportionately charged.

Property, plant and equipment is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal. Losses arising from retirement or gains or losses arising from disposal of property, plant and equipment which are carried at cost are recognized in the Statement of Profit and Loss.

The Details of estimated life of each category of assets are as underLand- Nil, Factory Building- 30 Years, Office Building- 60 years, Plant & Machinery- 15 years, Furniture- 10 Years, Motor Vehicle-8 Years, Computer & Printer- 3 Years

Impairment 0f Assets:

There is no indication of any impairment based on internal/external factors in relation to the assets of the Company and as such, this Standard is not applicable in case of the Company.

Inventories:

Stock of Raw Materials, Stores and spare parts are valued at cost and Direct Expenses; and of those in transit, at port and at Bonded Warehouse related to these items are valued at cost to date.

Goods-in-process is valued at cost of materials and direct expenses incurred for production of the goods till that stage.

Stock of Finished goods and semi-finished goods are valued at cost or net realizable value whichever is lower.

Waste and scraps are accounted at estimated realizable value.

Cost of inventories is generally ascertained on the ''weighted average'' basis. Goods-in process, finished and semi-finished goods are valued on absorption cost basis.

Employee Benefits:

Short-term employee benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus and ex-gratia.

Employee benefits in the form of Provident Fund and ESI are considered as defined contribution plan and the contributions to Employees'' Provident Fund Organization established under The Employees'' Provident Fund and Miscellaneous Provisions Act 1952 and Employees'' State Insurance Act, 1948, respectively, are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due.

For payment of Gratuity to employees under the Payment of Gratuity act 1972 the company has created a trust fund with LIC, as a defined contribution plan.

Construction Contracts:

This Standard is not applicable to our Company.

Investments:

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

On initial recognition, all investments are measured at cost. The cost comprises of purchase price and directly acquisition charges such as brokerage, fees and duties.

Long -term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. On disposal of investments, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit & loss.

Recognition of Revenue and Expenditure:

Revenue Recognition: Revenue is recognized as and when the economic benefits will flow to the company.

Sale of Goods:

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods, The Company collects GST on behalf of the government and, therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from Revenue.

Interest:

Interest benefits are recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "Other Income" in the statement of Profit and Loss.

All other Income and Expenditure to the extent considered receivable and payables unless specifically stated are accounted for on accrual and prudent basis.

Foreign Currency Translation:

Initial recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount with the exchange rate between the reporting currency and the foreign currency at the date of the transaction. The rate of conversion used is the rate prescribed by the CBEC.

Conversion: Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Nonmonetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

Exchange differences: The transactions in foreign exchange are accounted at the exchange rate prevailing on the date of the transaction. Assets & liabilities denominated in foreign currency are restated at the year end adopting the contracted/ year end rates as applicable. Any exchange gains or losses arising out of subsequent fluctuations are accounted in the Profit & Loss Statement.

Translation of foreign exchange transaction: Company follows AS - 11 (Revised) in respect of Foreign Currency Transaction applying the principle of most likely realizable/disbursable amount.

Forward Contracts: The Company enters into forward contracts in order to hedge its foreign currency exposures. As per Para 36 of AS11, premium or discount arising at the inception of such a forward exchange contracts have been amortised as expense or income over the life of the contract. Exchange differences on such contracts have been recognised in the statement of profit and loss in the reporting period in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such forward exchange contracts have been recognised as income or as expense for the period. The contracts are entered for a short term period of less than 12 months.

Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted number of equity shares outstanding during the period is adjusted for events that have changed the number of equity shares outstanding, without a corresponding change in resources.

Accounting for Taxes on Income:

Tax expense comprises of Current Tax and Deferred Tax. Current Tax is measured as the higher of the amount expected to be paid to the tax authorities, using the applicable tax rates and Minimum Alternate Tax Calculated on the Book Profits.

Deferred Income Tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.