Parin Enterprises Ltd. कंपली की लेखा नीति

Mar 31, 2025

SIGNIFICANT ACCOUNTING POLICIES

1. Corporate information

PARIN ENTERPRISES LIMITED (the ‘Company'') is a public limited company domiciled in India. Its shares are listed on the
National Stock Exchange (‘NSE''). The Company is mainly engaged in the business of manufacturing of All types of
Furniture Items.

2. Summary of basis of compliance, basis of preparation and presentation, critical accounting estimates,
assumptions and judgements and significant accounting policies

(a) Basis of Preparation of Financial Statements

The financial statements are prepared in accordance with India Generally Accepted Accounting Principles (GAAP) under
the historical cost convention on the accrual basis except for certain financial instruments which area measured at fair
values. GAAP comprises mandatory accounting standards as prescribed under section 133 of the Companies Act, 2013
(‘Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and
guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently
applied except where a newly issued accounting standard is initially adopted or a revision to an existing standard requires
a change in the accounting policy hitherto in use.

(b) Basis of preparation and presentation

The Company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis
except in case of significant uncertainties.

The Standalone Financial Statements have been prepared on the historical cost basis. Historical cost is generally based
on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and
other criteria set out in the Schedule III to the Act.

(c) Critical accounting estimates, assumptions and judgements

The preparation of the standalone financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the
period. Examples of such estimates include computation of percentage of completion which requires the Company to
estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended, provisions for
doubtful debts, future obligations under employee retirement benefit plans, income taxes, post-sales customer support
and the useful lives of fixed tangible assets and intangible assets.

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

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying values of
assets and liabilities within the next financial year are discussed below

(1) Deferred income tax assets and liabilities

The Deferred Tax asset is recognized and carry forward to the extent that there is a reasonable certainty that the
assets will be realise in future. However, where there is unabsorbed depreciation or carry forward loss under
taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realisation of assets.

(2) Useful lives of property, plant and equipment (‘PPE'') and intangible assets

Management reviews the estimated useful lives and residual value of PPE and Intangibles at the end of each
reporting period. Factors such as changes in the expected level of usage, technological developments and product
lifecycle, could significantly impact the economic useful lives and the residual values of these assets.
Consequently, the future depreciation charge could be revised and may have an impact on the profit of the future
years.

(3) Employee benefit obligations

Employee benefit obligations are determined using actuarial valuations. An actuarial valuation involves making
various assumptions that may differ from actual developments. These include the estimation of the appropriate
discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its
long-term nature, the employee benefit obligation is highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

(4) Provisions and contingencies

From time to time, the Company is subject to legal proceedings, the ultimate outcome of each being subject to
uncertainties inherent in litigation. A provision for litigation is made when it is considered probable that a payment
will be made and the amount can be reasonably estimated. Significant judgement is required when evaluating the
provision including, the probability of an unfavourable outcome and the ability to make a reasonable estimate of
the amount of potential loss. Litigation provisions are reviewed at each accounting period and revisions made for
the changes in facts and circumstances. Contingent liabilities are disclosed in the notes forming part of the
Standalone Financial Statements. Contingent assets are not disclosed in the Standalone Financial Statements
unless an inflow of economic benefits is probable

(d) Foreign currency translation

The functional currency of the Company (i.e. the currency of the primary economic environment in which the
Company operates) is the Indian Rupee in (Rs.). The financial statements have been rounded off to the nearest
Rs. Lakh.

On initial recognition, all foreign currency transactions are recorded at exchange rates prevailing on the date of the
transaction. Monetary assets and liabilities, denominated in a foreign currency, are translated at the exchange rate
prevailing on the balance sheet date and the resultant exchange gains or losses are recognised in the Standalone
Statement of Profit and Loss.

(e) Property, plant and equipment

An item of property, plant and equipment (‘PPE'') is recognized as an asset if it is probable that the future economic
benefits associated with the item will flow to the Company and its cost can be measured reliably. These recognition
principles are applied to the costs incurred initially to acquire an item of PPE, to the pre-operative and trial run costs
incurred (net of sales), if any and

also to the costs incurred subsequently to add to, replace part of, or service it and subsequently carried at cost less
accumulated depreciation and accumulated impairment losses, if any.

The cost of PPE includes interest on borrowings directly attributable to the acquisition, construction or production of a

qualifying asset. A qualifying asset is an asset that necessarily takes a substantial period of time to be made ready for
its intended use or sale. Borrowing costs and other directly attributable cost are added to the cost of those assets until
such time as the assets are substantially ready for their intended use, which generally coincides with the
commissioning date of those assets

Machinery spares that meet the definition of PPE are capitalised and depreciated over the useful life of the principal
item of an asset.

"All other repair and maintenance costs, including regular servicing, are recognised in the Standalone Statement of
Profit and Loss as incurred. When a replacement occurs, the carrying value of the replaced part is de-recognised.
Where an item of property, plant and equipment comprises major components having different useful lives, these
components are accounted for as separate items."

PPE acquired and put to use for projects are capitalised and depreciation thereon is included in the project cost till the
project is ready for commissioning.

Depreciation methods, estimated useful lives and residual value

Depreciation on PPE (except leasehold improvements) is calculated using the written-down value method to allocate
their cost, over their estimated useful lives. Freehold land is not depreciated.

Schedule II to the Act prescribes the useful lives for various class of assets. For certain class of assets, based on
technical evaluation and assessment, Management believes that the useful lives adopted by it reflect the periods over
which these assets are expected to be used. Accordingly for those assets, the useful lives estimated by the
management are different from those prescribed in the Schedule. Management''s estimates of the useful lives for
various class of PPE are as given below:

Useful lives of assets are reviewed at the end of each reporting period

Losses arising from the retirement of, and gains or losses arising from disposal/adjustments of PPE are
recognised in the Standalone Statement of Profit and Loss.

(f) Intangible Assets

(g) Retirement benefits to employees

- Gratuity

The company provides for gratuity, a defined benefit retirement plan covering eligible employees. The gratuity plan
provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an
amount based on the respective employee''s salary and tenure of employment with the company.

- Provident Fund

Eligible employees receive benefits from a provident fund, which is a defined benefit plan. Both the employee and the
company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee''s
salary.

(h) Inventories

Inventories of Traded Goods are stated at cost or net realizable value, whichever is lower. Cost comprises all cost of
purchase and other costs which are being incurred in bringing the inventories to their present location and condition.

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation of Financial Statements

The financial statements are prepared in accordance with India Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which area measured at fair values. GAAP comprises mandatory accounting standards as prescribed under section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing standard requires a change in the accounting policy hitherto in use.

(b) Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as

at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include computation of percentage of completion which requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended, provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed tangible assets and intangible assets.

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

(c) Revenue Recognition

Revenue on sale of products is recognised when the products are delivered to customers, all significant contractual obligations have been satisfied and the collection of the resulting receivable is reasonably expected. Sales & Purchases are stated net of trade discount, returns and taxes collected.

(d) Provisions and contingent liabilities

A provision is recognized, if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date.

(e) Fixed Assets & Depreciation thereon

i) Fixed assets are stated at cost of acquision as reduced by accumulated depreciation. The cost of assets

includes

other direct/ indirect and incidental cost incurred to bring them into their present location.

ii) Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as

specified in Schedule II,

(f) Retirement benefits to employees

- Gratuity

The company provides for gratuity, a defined benefit retirement plan covering eligible employees. The gratuity plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and tenure of employment with the company.

- Provident Fund

Eligible employees receive benefits from a provident fund, which is a defined benefit plan. Both the employee and the company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee''s salary.

(g) Inventories

Inventories of Traded Goods are stated at cost or net realizable value, whichever is lower. Cost comprises all cost of purchase and other costs which are being incurred in bringing the inventories to their present location and condition.

(h) Provision for Current Tax & Deferred Tax

Provision for income tax is made on the basis of estimated taxable income for the year at current rates.Tax expenses comprises of Current Tax, and Deferred Tax at applicable enacted or substantively enacted rates. Current Tax represents the amount of Income Tax payable/recoverable in respect of the taxable income/loss for the reporting period. Deferred Tax represents the effect of timing difference between taxable income and accounting income for the reporting

period that originates in one period and are capable of reversal in one or more subsequent periods. The Deferred Tax asset is recognized and carry forward to the extent that there is a reasonable certainty that the assets will be realise in future. However, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realisation of assets.

(i) Investments

Company''s Investments are Non-Current Investments in nature being Investment in Subsidiary Company. Non-Current Investments are stated at cost. A provision for diminution in the value of Investments is made for each investment individually if such decline is other than temporary.

(j) Current Assets, Loans and Advances & Liabilities

In the opinion of the Board of Directors, the Current Assets, Loans and Advances and Current Liabilities are approximately stated if realized in the ordinary course of business. As no confirmatory letters were submitted from Debtors and Creditors, their balances are reflected in the Balance Sheet as appearing in the books. The provisions for all other liabilities is adequate and not in excess of the amount reasonably necessary.

(k) Regrouping of Previous Year figures

The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.