India Radiators Ltd. कंपली की लेखा नीति

Mar 31, 2024

1.1. Company Overview

India Radiators Limited ( IRL) is a public limited company incorporated and domiciled in India and has its registered office
at Chennai, Tamilnadu India.

1.2. Basis of Preparation of Financial Statements:-

These financial statements are prepared in accordance with Indian Accounting Standard (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 relevant amendment rules issued there after.

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.

The year end figures are taken from the source and they are rounded to the nearest digits.

1.3. Use of estimates

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. Accounting estimates could change
from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as
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 the financial statements.

1.4. Cash Flow Statement

Cash Flows are reported using the indirect method whereby profit/loss before extraordinary items and tax is adjusted for
the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.
The cash flows from operating investing and financing activities of the company are segregated based on the available
information.

1.5. Critical accounting estimates

A) Revenue recognition

Revenue is recognised on accrual method on rendering of services when the significant terms of the arrangement are
enforceable, services have been delivered and collectability is reasonably assured.

a. Revenue is recognised based on the contract with customers.

b. Interest income is recognised based on accrual basis

c. Other Income were accounted on accrual basis

B) Expenditure

Expenses are accounted on accrual basis and provisions are made for all known losses and liabilities.

1.6. Property, Plant and Equipment and Intangible Assets

The land and properties of the company are stated at fair value and depreciation provided on straight line method over the
estimated useful lives of the assets. Property, plant and equipment are stated at cost, less accumulated depreciation and
impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready

for use, as intended by the management. The Company depreciates property, plant and equipment over their estimated
useful lives using the Straight line method.

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end.

Amounts paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date and
cost of property, plant, and equipment not ready for intended use before such date are disclosed under capital work-in¬
progress. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that
future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably.
Repairs and maintenance costs are recognized in the Statement of Profit and Loss when incurred. The cost and related
accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant
gains or losses are recognized in the Statement of Profit and Loss. Assets to be disposed off are reported at the lower of
the carrying value or the fair value less cost to sell.

1.7. Impairment

Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that
their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the
higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset
does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable
amount is determined for the CGU (Cash Generating Unit) to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and Loss is
measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the
asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used
to determine the recoverable amount. The carrying amount of the asset is adjusted to its revised recoverable amount,
provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated
depreciation) had no impairment loss been recognized for the asset in prior years.

1.8. Financial Instruments

1. Initial recognition

a. The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual

provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except
for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities, that are not at fair value through profit or loss,
are added to the fair value on initial recognition. Loans, borrowings and payables are recognised net of directly
attributable to the transaction costs.

2. (i) Financial assets carried at amortized cost if it is held within a business model whose objective is to hold

the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

(ii) They are presented as current assets except for those maturing later than 12 months after the reporting
date which are presented as non-current assets. Financial assets are measured initially at fair value plus
transaction costs and subsequently carried at amortized cost using the effective interest method less any
impairment loss.

(iii) Financial assets at amortised cost are represented by trade receivables, security deposits, cash and cash
equivalents, employee and other advances and eligible current and non-current assets.

(iv) Cash and cash equivalents comprise cash on hand and in banks.

3. Financial assets at fair value through other comprehensive income :

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a
business model whose objective is achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

4. Financial assets at fair value through profit or loss:

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or
loss.

5. Financial liabilities:

Financial liabilities are measured as per IND AS 109 and subsequently carried at amortized cost using the effective
interest method, and is measured at fair value through profit or loss. For trade and other payables maturing within
one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these
instruments.

1.9. Employee benefit

Compensated absences: The employees of the company are entitled to compensated absences. The employees can
carry forward a portion of the unutilized accumulated compensated absences and utilize it in future periods or receive cash
at the end of each financial year.

1.10. Foreign Currency Transactions

There are no such transactions in the current financial year.

1.11. Segment Reporting

The Company operates in only one segment - Renting of Properties.

1.12. Income tax

Income tax comprises current and deferred tax. Income tax expense is recognized in the statement of profit and loss except
to the extent it relates to items directly recognized in equity or in other comprehensive income.

(a) Current income tax: Current income tax for the current and prior periods are measured at the amount expected to
be recovered from or paid to the taxation authorities based on the taxable income for the period. The tax rates and
tax laws used to compute the current tax amount are those that are enacted or substantively enacted by the reporting
date and applicable for the period. The company offsets current tax assets and current tax liabilities, where it has a
legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to
realize the asset and liability simultaneously.

(b) Deferred income tax: Deferred income tax is recognized using the balance sheet approach. Deferred income tax
assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of
assets and liabilities and their carrying amount in financial statements, except when the deferred income tax arises
from the initial recognition of goodwill, or an asset or liability in a transaction that is not a business combination and
affects neither accounting nor taxable profits or loss at the time of the transaction.

Deferred income tax asset are recognised to the extent that it is probable that taxable profit will be available against which
the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is
no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be
utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the
asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date.

1.13. Recent Pronouncements:

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. The impact of the amended Rules, 2022 is given below:

IND AS 103 - Reference to Conceptual Framework

IND AS 16 - Proceeds before intended use

IND AS 37 - Onerous Contracts - Costs of Fulfilling a Contract

IND AS 109 - Annual Improvements to IND AS (2021)

IND AS 116 - Annual Improvements to IND AS (2021)

The above amendments have no impact in the financial statements.