Accounting Policies of Gajanand International Ltd. Company

Mar 31, 2025

2. Summary of Significant Accounting Policies

2.1. Basis of Preparation

The financial statements have been prepared in accordance with the generally
accepted accounting principles in India under the historical cost convention on
accrual basis. The financial statements have been prepared to comply in all material
aspects with the accounting standards notified under Companies (Accounts) Rules,
2014, as amended from time to time and other relevant provisions of the Companies
Act, 2013 except as stated in the notes below.

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
Companies Act, 2013. Based on the nature of products and services and the time
between the acquisition of assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12 months for the
purpose of current/non-current classification of assets and liabilities.

The preparation of the financial statements in conformity with Indian GAAP requires
the Management to make estimates and assumptions considered in the reported
amounts of assets and liabilities (including contingent liabilities) and the reported
income and expenses during the year. The Management believes that the estimates
used in preparation of the financial statements are prudent and reasonable. Future
results could differ due to these estimates and the differences between the actual
results and the estimates are recognised in the periods in which the results are
known/materialise.

2.2. Presentation of Financial Statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented
in the format prescribed in the Schedule III to the Companies Act, 2013 ("the Act").
The Cash Flow Statement has been prepared and presented as per the requirements
of Accounting Standard (AS) 3 "Cash Flow Statements. The disclosure requirements
with respect to items in the Balance Sheet and Statement of Profit and Loss, as
prescribed in the Schedule III to the Act, are presented by way of notes forming part
of accounts along with the other notes required to be disclosed under the notified
Accounting Standards and the SEBI (Listing Obligations & Disclosure Requirements)
Regulations, 2015.

2.3. Plant, Property and Equipment and Depreciation

2.3.1. Plant, Property and Equipment

a. Tangible Assets

All tangible assets are stated at cost of acquisition, less accumulated
depreciation and accumulated impairment losses, if any. Direct costs are
capitalised until the assets are ready for use and includes freight, duties,
taxes and expenses to acquisition and installation.

Subsequent expenditures related to an item of tangible asset are added to
its book value only if they increase the future benefits from the existing
asset beyond its previously assessed standard of performance.

Losses arising from the retirement of, and gains or losses arising from
disposal of tangible assets which are carried at cost are recognised in the
Statement of Profit and Loss.

2.3.2. Depreciation

a. Tangible Assets

Depreciation is provided on a pro-rata basis on the straight-line method
(''SLM'') over the useful lives of the assets specified in Schedule II of the
Companies Act, 2013.

b. Impairment

The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. For the purposes of assessing
impairment, the smallest identifiable group of assets that generates cash
inflows from continuing use that are largely independent of the cash
inflows from other assets or groups of assets, is considered as a cash
generating unit. If any such indication exists, the Company estimates the
recoverable amount of the asset. If such recoverable amount of the asset
or the recoverable amount of the cash generating unit to which the asset
belongs is less than its carrying amount, the carrying amount is reduced to
its recoverable amount. The reduction is treated as an impairment loss and

is recognised in the Statement of Profit and Loss. If at the Balance Sheet
date there is an indication that if a previously assessed impairment loss no
longer exists or may have decreased, the recoverable amount is
reassessed, and the asset is reflected at the recoverable amount.

2.4. Investments

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

Long-term investments are stated at cost, except where there is a diminution
in value (other than temporary) in which case the carrying value is reduced to
recognise such a decline. Current investments are carried at lower of cost and
fair value, computed separately in respect of each category of investment.

2.5. Inventories

Inventories comprise of raw materials, packing materials, finished goods
(manufactured and traded). Inventories are valued at the lower of cost and the
net realisable value after providing for obsolescence and other losses, where
considered necessary. Cost is determined on First-In-First-Out basis. Cost
includes all charges in bringing the goods to their present location and
condition, including octroi and other levies, transit insurance and receiving
charges. The cost of manufactured finished goods comprises of materials,
direct labour, other direct costs and related production overheads as
applicable.

Net realizable value is the estimated selling price in the ordinary course of
business less the estimated costs of completion and the estimated costs
necessary to make the sale.

2.6. Employee Benefits

a. Defined Contribution Plans

The Company''s contribution to provident fund (in case of contributions to
the Regional Provident Fund office), pension and employee state insurance
scheme are considered as defined contribution plans, as the Company
does not carry any further obligations apart from the contributions made
on a monthly basis and are charged as an expense based on the amount of
contribution required to be made.

b. Defined Benefit Plans

The Company contributes to Defined Benefit Plans comprising of Gratuity
Fund and Leave Encashment.

Gratuity

The Company provides for gratuity, a defined benefit plan (the "Gratuity
Plan"), administered by an insurer, covering eligible employees in

accordance with the Payment of Gratuity Act, 1972. 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 the tenure of employment. The
Company''s liability is actuarially determined (using the Projected Unit
Credit method) at the end of each year. Actuarial losses/gains are
recognized in the Statement of Profit and Loss in the year in which they
arise.

Leave Encashment

The Company provides for leave encashment on actual payment basis only.

c. Short-term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees is recognised in
the year during which the employee rendered the services.

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Mar 31, 2024

2. Summary of Significant Accounting Policies

2.1. Basis of Preparation

The financial statements have been prepared in accordance with the generally
accepted accounting principles in India under the historical cost convention on
accrual basis. The financial statements have been prepared to comply in all material
aspects with the accounting standards notified under Companies (Accounts) Rules,
2014, as amended from time to time and other relevant provisions of the Companies
Act, 2013 except as stated in the notes below.

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
Companies Act, 2013. Based on the nature of products and services and the time
between the acquisition of assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12 months for the
purpose of current/non-current classification of assets and liabilities.

The preparation of the financial statements in conformity with Indian GAAP requires
the Management to make estimates and assumptions considered in the reported
amounts of assets and liabilities (including contingent liabilities) and the reported
income and expenses during the year. The Management believes that the estimates
used in preparation of the financial statements are prudent and reasonable. Future
results could differ due to these estimates and the differences between the actual
results and the estimates are recognised in the periods in which the results are
known/materialise.

2.2. Presentation of Financial Statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented
in the format prescribed in the Schedule III to the Companies Act, 2013 ("the Act'').
The Cash Flow Statement has been prepared and presented as per the requirements
of Accounting Standard (AS) 3 "Cash Flow Statements. The disclosure requirements
with respect to items in the Balance Sheet and Statement of Profit and Loss, as
prescribed in the Schedule III to the Act, are presented by way of notes forming part
of accounts along with the other notes required to be disclosed under the notified
Accounting Standards.

2.3. Plant, Property and Equipment and Depreciation
2.3.1. Plant, Property and Equipment

a. Tangible Assets

All tangible assets are stated at cost of acquisition, less accumulated
depreciation and accumulated impairment losses, if any. Direct costs are
capitalised until the assets are ready for use and includes freight, duties,
taxes and expenses to acquisition and installation. ^

Subsequent expenditures related to an item ot tangible asset are added to
its book value only if they increase the future benefits from the existing
asset beyond its previously assessed standard of performance.

Losses arising from the retirement of, and gains or losses arising from
disposal of tangible assets which are carried at cost are recognised in the
Statement of Profit and Loss.

2.3.2. Depreciation

a. Tangible Assets

Depreciation is provided on a pro-rata basis on the straight-line method
(''SLM'') over the useful lives of the assets specified in Schedule II of the
Companies Act, 2013.

♦Based on future projections, the Company has estimated the economic
life of these assets as stated above and accordingly these assets have been
amortized.

b. Impairment

The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. For the purposes of assessing
impairment, the smallest identifiable group of assets that generates cash
inflows from continuing use that are largely independent of the cash
inflows from other assets or groups of assets, is considered as a cash
generating unit. If any such indication exists, the Company estimates the
recoverable amount of the asset. If such recoverable amount of the asset
or the recoverable amount of the cash generating unit to which the asset
belongs is less than its carrying amount, the carrying amount is reduced to
its recoverable amount. The reduction is treated as an impairment loss and
is recognised in the Statement of Profit and Loss. If at the Balance Sheet
date there is an indication that if a previously assessed impairment loss no
longer exists or may have decreased, the recoverable amount is
reassessed, and the asset is reflected at the recoverable amount.

2.4. Investments

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

Long-term investments are stated at cost, except where there is a diminution
in value (other than temporary) in which case the carrying value is reduced to
recognise such a decline. Current investments are carried at lower of cost and
fair value, computed separately in respect of each category of investment.

2.5. Inventories

Inventories comprise of raw materials, packing materials, finished goods
(manufactured and traded). Inventories are valued at the lower of cost and the
net realisable value after providing for obsolescence and other losses, where
considered necessary. Cost is determined on First-In-First-Out basis. Cost
includes all charges in bringing the goods to their present location and
condition, including octroi and other levies, transit insurance and receiving
charges. The cost of manufactured finished goods comprises of materials,
direct labour, other direct costs and related production overheads as
applicable.

Net realizable value is the estimated selling price in the ordinary course of
business less the estimated costs of completion and the estimated costs
necessary to make the sale.

2.6. Employee Benefits

a. Defined Contribution Plans

The Company''s contribution to provident fund (in case of contributions to
the Regional Provident Fund office), pension and employee state insurance
scheme are considered as defined contribution plans, as the Company
does not carry any further obligations apart from the contributions made
on a monthly basis and are charged as an expense based on the amount of
contribution required to be made.

b. Defined Benefit Plans

The Company contributes to Defined Benefit Plans comprising of Gratuity
Fund and Leave Encashment.

Gratuity

The Company provides for gratuity, a defined benefit plan (the "Gratuity
Plan"), administered by an insurer, covering eligible employees in
accordance with the Payment of Gratuity Act, 1972. 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 the tenure of employment. The
Company''s liability is actuarially determined (using .tbe^Pfej^ct^d Unit

Credit method) at the end of each year. Actuarial losses/gains are
recognized in the Statement of Profit and Loss in the year in which they
arise.

Leave Encashment

The Company provides for leave encashment on actual payment basis only,

c. Short-term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees is recognised in
the year during which the employee rendered the services.