Accounting Policies of Coral Newsprints Ltd. Company

Mar 31, 2024

III Significant accounting policies for the year ended March 31,2024.

(i) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured. The specific recognition criteria described below also be met before
revenue is recognized.

Sale of goods Revenue from the sale of goods is recognized, when all the significant risks and rewards of
ownership of the goods have passed to the buyer, the Company no longer has effective control over the goods
sold, the amount of revenue and costs associated with the transaction can be measured reliably and no
significant uncertainty exists regarding the amount of Consideration that will be derived from the sales of
Goods. Revenue from the sale of goods is measured at the fair value of the consideration received or
receivable, net of returns and allowances, trade discounts and volume rebates. The sales include the excise
duty and exclude Value added tax/sales tax. Export incentives, Duty drawbacks and other benefits are
recognized in the Statement of Profit and Loss.

Interest Income

Interest income is recognized on time proportion basis using the effective interest method.

Dividend Income

Dividend income is recognized when the right to receive payment is established, which is generally when
shareholders approve the same.

(ii) Inventory valuation

Inventories such as Raw Materials, Work-in-Progress, Finished Goods, Stock in Trade, Stores & Spares are
valued at the lower of cost and net realizable value (except scrap/waste which are value at net realizable value).
The cost is computed on weighted average basis. Finished Goods and Process Stock include cost of
conversion and other costs incurred in bringing the inventories to their present location and condition

(iii) Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand, cash at bank and demand deposits with banks with an
original maturity of three months or less which are subject to an insignificant risk of change in value.

(iv) Property, Plant and Equipment (PPE)

Property, Plant and Equipment are carried at cost less accumulated depreciation and accumulated losses, if
any. Cost includes expenditure that is directly attributable to the acquisition of the items.

Property, plant and equipment acquired are stated at cost net of tax/duty credit availed less accumulated
depreciation and accumulated impairment losses, if any. Cost includes expenses directly attributable to
bringing the asset to the location and condition necessary for it to be capable of operating in the manner
intended by management.

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 costs to the item can be
measured reliably. Repairs and maintenance costs are recognized in net profit in the statement of profit and loss
when incurred. The cost and related accumulated depreciation are eliminated from the financial statements
upon sale of retirement of the asset and the resultant gain or losses are recognized in the statement of profit and
loss.

Depreciation on Buildings, Plant & Machinery and Other Assets is provided as per straight line method over the
useful lives as prescribed under Schedule Il of Companies Act, 2013. Depreciation will be charged from the date
me assets is available for use, i.e., when it is in the location and condition necessary for it to be capable of
operating the manner intended by management. The residual values.useful lives and methods of depreciation
of property: plant and equipment are reviewed at each financial year end and adjusted prospectively, if
appropriate.

v) Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfillment of the
arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use
the asset or assets, even if that right is not explicitly specified in an arrangement.

Finance lease

Finance Lease that transfer substantially all of the risks and benefits incidental to ownership of the leased item,
are capitalized at the commencement of the lease at the fair value of the leased property or, if lower, at the
present value of the minimum lease payments. However not any is on finance lease during the financial year
2023-24.

Operating lease

Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by
lessor are classified as operating leases. Initial direct costs incurred in negotiating and arranging an operating
lease are added to the carrying amount of the leased asset. Payments under operating lease are recorded in the
Statement of Profit and Loss on a straight line basis over the period of the lease unless the payments are
structured to increase in line with expected general inflation to compensate for the expected inflationary cost
increases.

vi) Impairment

The carrying amount of Property, plant and equipment, Intangible assets and Investment property are
reviewed, at each Balance Sheet date to assess impairment if any, based on internal / external factors. An asset
is treated as impaired, when the carrying cost of asset exceeds its recoverable value, being higher of value in
use and net selling price. An impairment loss is recognized as an expense in the Statement of Profit and Loss in
the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is
reversed, if there has been an improvement in recoverable amount

vii) Financial assets & liabilities

A Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

At initial recognition, all financial assets are measured at fair value. Such financial assets are subsequently
classified under following three categories according to the purpose for which they are held. The classification is
reviewed at the end of each reporting period.

a) Financial assets at amortized cost

At the date of initial recognition, are held to collect contractual cash flows of principal and interest on
principal amount outstanding on specified dates. These financial assets are intended to be held until

maturity. Therefore, they are subsequently measured at amortized cost by applying the Effective Interest
Rate (EIR) method to the gross carrying amount of the financial asset. The EIR amortization is included
as interest income in the profit or loss. The losses arising from impairment are recognized in the profit or
loss.

b) Financial assets at Fair value through other comprehensive Income

At the date of initial recognition, are held to collect contractual cash flows of principal and interest on
amount outstanding on specified dates, as well as held for selling. Therefore, they are subsequently
measure each reporting date at fair value, with all fair value movements recognized in Other
Comprehensive income Interest income calculated using the effective interest rate (EIR) method,
impairment gain or loss and foreign exchange gain or loss are recognized in the Statement of Profit and
Loss. On Derecognition of the as cumulative gain or loss previously recognized in Other Comprehensive
Income is reclassified from the OCI to Statement of Profit and Loss.

c) Financial assets at Fair value through profit or loss

At the date of initial recognition, financial assets are held for trading, or which are measured neither at
Amortized Cost nor at Fair Value through OCI. Therefore, they are subsequently measured at each
reporting date at all value, with all fair value movements recognized in the Statement of Profit and Loss.

d) Trade Receivables

A Receivable is classified as a trade receivable if it is in respect to the amount due from customers on
account on goods sold or services rendered in the ordinary course of business. Trade receivables are
recognized initially at fair value and subsequently measured at amortized cost using the effective interest
method, less provision for impairment. Impairment is made on the expected credit losses, which are the
present value of the cash shortfalls over the expected life of financial assets. The estimated impairment
losses are recognized in a separate provision for impairment and the impairment losses are recognized
in the Statement of Profit and Loss within other expenses.

Subsequent changes in assessment of impairment are recognized in provision for impairment and the
change in impairment losses are recognized in the Statement of Profit and Loss within other expenses.

De - recognition

Financial Asset is primarily derecognized when:

a) The right to receive cash flows from asset has expired, or

b) The Company has transferred its right to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a " pass-through"
arrangement and either:

c) The Company has transferred substantially all the risks and rewards of the asset, or

d) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.

When the Company has transferred its right to receive cash flows from an asset or has entered into a pass
through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues to recognize the transferred asset to the extent of
the Company''s continuing involvement. In that case, the Company also recognizes an associated
liability. The transferred asset and the associated liability are measured on a basis that reflects the rights
and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the
Company could be required to repay.

Financial Liabilities

Initial Recognition and measurement

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables,
hey of directly attributable transaction costs. The Company''s financial liabilities include trade and other
payables, loans and borrowings including bank overdrafts, and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

a) Financial liabilities at Fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading. The
Company has not designated any financial liabilities upon initial measurement recognition at fair value
through profit or loss. Financial liabilities at fair value through profit or loss are at each reporting date with
all the changes recognized in the Statement of Profit and Loss.

b) Financial liabilities measured at amortized cost

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized
cost using the effective interest rate method ("EIR") except for those designated in an effective hedging
relationship. The carrying value of borrowings that are designated as hedged items in fair value hedges
that would otherwise be carried at amortized cost are adjusted to record changes in fair values
attributable to the risks that are hedged in effective hedging relationship.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fee or
costs that are an integral part of the EIR. The EIR amortization is included in finance costs in the
Statement of Profit and Loss.

c) Loans and borrowings

After initial recognition, interest-bearing borrowings are subsequently measured at amortized cost using
the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the
redemption amount is recognized in profit or loss over the period of the borrowings using the effective
interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of
the loan to the extent that it is probable that some or all of the facility will be drawn down.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer
settlement of the liability for at least twelve months after the reporting period.

d) Trade and other payables

A payable is classified as ''trade payable'' if it is in respect of the amount due on account of goods
purchased or services received in the normal course of business. These amounts represent liabilities for
goods and services provided to the Company prior to the end of financial year which are unpaid. Trade
and other payables are presented as current liabilities unless payment is not due within 12 months after
the reporting period. They are recognized initially at their fair value and subsequently measured at
amortized cost using the effective interest method.

De-recognition of Financial Liability

A Financial Liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. The difference between the carrying amount of a financial liability that has been extinguished or
transferred to another party and the consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognized in profit or loss as other income or finance costs.

Offsetting of Financial Instruments

Financial Assets and Financial Liabilities are offset and the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the recognized amounts and there is an intention to
settle on a net basis, to realize the assets and settle the liabilities simultaneously.

viii)Employee benefits

A. Defined contribution plan

The Company does not make any defined contribution to any Funds.

B. Defined benefit plan

The Company''s Liabilities on account of Gratuity and Earned Leave on retirement of employees are determined
at the end of each financial year on the basis of Management calculation in accordance with the measurement
procedure as per Indian Accounting Standard (IND AS)-19. ''Employee Benefits''. The costs of providing benefits
under these plans are also determined on the basis of management calculation at each yearend. Actuarial gains
and losses for defined benefit plans are recognized through OCl in the period in which they occur. Re¬
measurements are not reclassified to profit or loss in subsequent periods.

The Provident Fund Contribution other than contribution to Employees'' statutory Provident Fund, is made to
statutory provident fund.

The Defined Benefit Plan can be short term or Long terms which are defined below.

i) Short-term employee benefit

All employees'' benefits payable wholly within twelve months rendering services are classified as short
term employee benefits. Benefits such as salaries, wages, short-term compensated absences,
performance incentives etc., and the expected cost of bonus, ex-gratia are recognized during the period
in which the employee renders related service.

ii) Long-term employee benefits

Compensated absences which are not expected to occur within 12 months after the end of the period in
which the employee renders the related services are recognized as a liability at the present value of the
defined benefit obligation at the balance sheet date.

C. Termination benefits

Termination benefits are recognized as an expense in the period in which they are incurred. The Company shall
recognize a liability and expense for termination benefits at the earlier of the following dates:

(a) When the entity can no longer withdraw the offer of those benefits; and

(b) When the entity recognizes costs for a restructuring that is within the scope of Ind AS 37 and involves the
payment of termination benefits.

ix) Earnings per Share (EPS)

Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the
company by the weighted average number of equity shares outstanding during the period.

Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the
company by the weighted average number of equity shares considered for deriving basic earnings per equity share
and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive
potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity
shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive
potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date.
Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods
presented for any share splits and bonus shares issues including for changes effected prior to the approval of the
financial statements by the Board of Directors.

x) Income tax

Current income tax Current income tax assets and liabilities are measured at the amount expected to be recovered
from or paid to taxation authorities. The tax rates and tax laws used to compute the amount are those that are
enacted on substantively enacted, at the reporting date.

Current income tax relating to items recognized directly in equity is recognized in equity and not in the Statement of
profit and loss. Management periodically evaluates positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax

Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between
the tax bases of assets and liabilities and their carrying amounts for financial reporting purpose at reporting date.
Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted on
substantively enacted by the balance sheet date and are expected to apply to taxable income in the years in which
those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred
income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the
substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future
taxable profit will be available against which the deductible temporary differences and tax losses can be utilized.
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 settle the
liability simultaneously.

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Mar 31, 2014

A. BASIS OF ACCOUNTING:

The accounts of the company are prepared under the historical cost convention on accrual basis of accounting in accordance with the accounting principles generally accepted in India and in compliance with the provisions of Companies Act1956, and comply with the mandatory accounting standards specified in Companies (Accounting Standard) Rules 2006, prescribed by the Central Government.

B. FIXED ASSETS:

Fixed assets are stated at cost less accumulated Depreciation. The cost of an asset comprises its purchase price and any directly attributable cost of bringing the assets to working condition for its intended use.

C. DEPRECIATION

Depreciation on fixed assets has been provided on straight line method at the rate specified in schedule XIV of the Companies Act, 1956 on monthly pro-rata basis.

D. INVENTORY

Inventories are valued at Cost or Net realisable value whichever is lower.

E. RETIREMENT BENEFITS

Provision is made for value of unutilised Leave due to employees at the end of the year and also for gratuity. The Company is paying contribution of Employee''s pension and Provident fund.

F. SALES

Sales are exclusive of Cess, CST, VAT & Entry Tax.

G. TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of estimated taxable income and in accordance with the provisions as per income tax Act,1961. Deferred Tax is recognised using the enacted tax rates and laws as on the Balance Sheet date, subject to the consideration of prudence in respect of deferred tax assets, on all timing, difference, between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2013

A. BASIS OF ACCOUNTING : The accounts of the company are prepared under the historical cost convention on accrual basis of accounting in accordance with the accounting principals generally accepted in India and in compliance with the provisions of Companies Act, 1956 and comply with the mandatory accounting standards specified in Companies (Accounting Standard) Rules 2006, prescribed by the Central Government.

B. FIXED ASSETS : Fixed assets are stated at cost less accumulated Depreciation. The cost of an asset comprises its purchase price and any directly attributable cost of bringing the asset to working condition for its intended use.

C. DEPRECIATION : Depreciation on fixed assets has been provided on straight line method at the rate specified in schedule XIV of the Company Act, 1956 on monthly pro-rata basis.

D. INVENTORY : Inventories are valued at Cost or Net realisable value whichever is lower.

E. RETIREMENT BENEFITS : Provision is made for value of unutilised Leave due to employees at the end of the year also for gratuity. The Company is paying contribution of Employee''s pension and provident fund.

F. SALES : Sales are exclusive of Cess, CST, VAT & Entry Tax.

G. TAXES ON INCOME :

Current tax is determined as the amount of tax payable in respect of estimated taxable income and in accordance with the provisions as per Income Tax Act 1961. Deferred tax is recognised using the enacted tax rates and laws as on the Balance Sheet date, subject to the consideration of prudence in respect of deferred tax assets, on all timing, differences, between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2011

A. BASIS OF ACCOUNTING : The accounts of the company are prepared under the historical cost convention on accrual basis of accounting in accordance with the accounting principals generally accepted in India and in compliance with the provisions of Companies Act, 1956 and comply with the mandatory accounting standards specified in Companies (Accounting Standard) Rules 2006, prescribed by the Central Government.

B. FIXED ASSETS : Fixed assets are stated at cost less accumulated Depreciation. The cost of an asset comprises its purchase price and any directly attributable cost of bringing the asset to working condition for its intended use.

C. DEPRECIATION : Depreciation on fixed assets has been provided on straight line method at the rate specified in schedule XIV of the Company Act, 1956 on monthly pro-rata basis.

D. INVENTORY : Inventories are valued at Cost or Net realisable value whichever is lower.

E. RETIREMENT BENEFITS : Provision is made for value of unutilised Leave due to employees at the end of the year also for gratuity. The Company is paying contribution of Employee's pension and provident fund.

F. SALES : Sales are exclusive of Cess, CST, VAT & Entry Tax.

G. TAXES ON INCOME :

Current tax is determined as the amount of tax payable in respect of estimated taxable income and in accordance with the provisions as per Income Tax Act 1961. Deferred tax is recognised using the enacted tax rates and laws as on the Balance Sheet date, subject to the consideration of prudence in respect of deferred tax assets, on all timing, differences, between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2010

A. BASIS OF ACCOUNTING : The accounts of the company are prepared uhder the historical cost convention and in accordance with Applicable accounting standards. For recognition of income and expenditures, Mercantile System is followed.

B. FIXED ASSETS : Fixed assets are stated at cost less accumulated Depreciation. The cost of an asset comprises its purchase price and any directly attributable cost of bringing the asset to working condition for its intended use.

C. DEPRECIATION : Depreciation on fixed assets has been provided on straight line method at the rate specified in schedule XIV of the Company Act, 1956 on monthly pro-rata basis.

D. INVENTORY : Inventories are valued as Cost or Net realisable value whichever is lower.

E. RETIREMENT BENEFITS : Provision is made for value of unutilised Leave due to employees at the end of the year also for gratuity. The Company is paying contribution of Employees pension and provident fund.

F. SALES : Sales are exclusive of Cess, CST, VAT & Entry Tax.

G. TAXES ON INCOME :

Current tax is determined as the amount of tax payable in respect of estimated taxable income for the year and in accordance, with the provisions as per Income Tax Act 1961. -Deferred tax is recognised using the enacted tax rates and laws as on the Balance Sheet date, subject to the consideration of prudence in respect of deferred tax assets, on all timing, differences, between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.