HRS Aluglaze Ltd. कंपली की लेखा नीति

Mar 31, 2025

A. Significant Accounting Policies:

The financial statements are prepared under historical cost convention on an accrual basis and
comply with the accounting standards (AS) notified by the Companies (Accounting Rules), 2006.
The preparation of financial statements requires the management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including other contingent liabilities) as
of the date of the financial statements and the reported income and expenses during the reporting
period. The management believes that the estimates used in preparations of the financial statements
are prudent and reasonable. Future results could defer from these estimates. The significant
accounting policies adopted in the presentation of the accounts are as under :-

B. Revenue Recognition:

i) Revenue in respect of sales is recognised on the basis of actual execution of work contracts or as
and when work contracts is certified.

ii) Income from job work is recognized upon completion of the job and delivery of the processed
goods to the customer or as per the terms of the contract.

iii) Revenue in respect of sale of product is recognised when the risk and rewards are transferred to
the buyer

ii) Interest income is recognized on time proportion basis.

All income are recognised net of trade discount & GST collected.

C. Property, Plant & Equipments & Intangible Assets

i) Tangible Asset - Property Plant & Equipment''s are stated at actual cost of acquisition net of
recoverable taxes less accumulated depreciation. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for its intended use and net charges on
foreign exchange contracts and adjustments arising from exchange rate variations attributable to the

assets

ii) Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated

amortisation/depletion and impairment loss, if any. The cost comprises purchase price, borrowing
costs, and any cost directly attributable to bringing the asset to its working condition for the
intended use and net charges on foreign exchange contracts and adjustments arising from exchange
rate variations attributable to the intangible assets

iii) Capital work- in- progress includes cost of property, plant and equipment
under development as at the balance sheet date.

Depreciation/amortization :

i) In respect of assets of the company, depreciation is provided on straight line method based on
estimated useful life of an asset as specified in schedule II to the Companies Act, 2013 except for
the free hold land, leasehold land and investment properties, which are not being amortized.

ii) Intangible assets are amortised over the life of underlying assets. Computer software and
Trademark are amortised over a period of 3 Years.

D. Inventories:

i) Raw Material are valued at lower of Cost or net realisable value.

ii) Work in Progress and Finished Goods are valued at lower of cost or net realisable value. Cost of
inventories comprises of cost of purchase, cost of conversion and other costs including
manufacturing overheads incurred in bringing them to their respective present location

and condition.

E. Investments:

Investments that are intended to be held for more than a year, from the date of acquisition, are
classified as long term investment and are carried at cost less any provision for diminution in value
other than temporary. Investments other than long term investments being current investments are
valued at cost or fair value whichever is lower.

F. Taxes on income:

(a) Income tax is computed in accordance with Accounting Standard 22 - ‘Accounting for Taxes on
Income’ (AS - 22). Tax expenses are accounted in the same period to which the revenue and
expenses relate.

(b) Provisions for current income tax is made for the tax liability payable on taxable income and the net
profit or loss before tax for the period as per the financial statements are identified and the tax effect
of timing differences is recognized as a deferred tax asset or deferred tax liability. The tax effect is
calculated on accumulated timing differences at the end of the accounting period based on effective
tax rates substantially enacted by the Balance Sheet date that would apply in the periods in which
the timing differences are expected to reverse.

(c) Deferred tax assets, other than on carried forward depreciation, are recognized only if there is virtual
certainty that they will be realized in the future and are reviewed for the appropriateness of their
respective carrying values at each balance sheet date.

G. Borrowing Cost:

Interest and other borrowing costs on specific borrowings, attributable to qualifying assets, are
capitalized as part of cost of assets and all other borrowing costs are charged to revenue.

H. Transactions in Foreign Exchange:

Transactions in foreign currencies are recorded at the exchange rat prevailing con the date of the
transaction.

(a) Monetary items outstanding at the balance sheet date are translated at the exchange rate prevailing at

the balance sheet date and the resultant difference is recognized as income or expense.

(b) Non-monetary items outstanding at the balance sheet date are reported using the exchange rate at the
date of the transactions.