Accounting Policies of HRS Aluglaze Ltd. Company

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.

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Mar 31, 2024

2 SIGNIFICANT ACCOUNTING POLICIES
a Basis of Preparation

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (''Indian
GAAP'') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, as applicable. The
financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial
instruments which are measured at fair value.

b Use of estimates

The preparation of financial statements requires the management of the Company to make estimates and assumptions that
affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the
financial statements and reported amounts of income and expense during the year. Examples of such estimates include
provisions for doubtful receivables, provision for income taxes, the useful lives of depreciable Property, Plant and Equipment
and provision for impairment. Future results could differ due to changes in these estimates and the difference between the
actual result and the estimates are recognised in the period in which the results are known / materialise.

c Property, Plant and Equipment

Fixed Assets are stated at cost less depreciation/amortization and impairment losses, if any. Cost includes expenses incidental to
the installation of assets and attributable borrowing and proportionate cost incurred.

d Depreciation / amortisation

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.

e Leases

Assets taken on lease by the Company in its capacity as lessee, where the Company has substantially all the risks and rewards of
ownership are classified as finance lease. Such a lease is capitalised at the inception of the lease at lower of the fair value or the
present value of the minimum lease payments and a liability is recognised for an equivalent amount. Each lease rental paid is
allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability
for each vear.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are
recognised as operating leases. Lease rentals under operating leases are recognised in the statement of profit and loss on a
straight-line basis.

f Impairment

At each balance sheet date, the management reviews the carrying amounts of its assets included in each cash generating unit to
determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount
of the asset is estimated in order to determine the extent of impairment. Recoverable amount is the higher of an asset''s net
selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the
asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market
assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognised as income in the
statement of profit and loss.

g Investments

Long-term investments and current maturities of long-term investments are stated at cost, less provision for other than
temporary diminution in value. Current investments, except for current maturities of long-term investments, comprising
investments in mutual funds, government securities and bonds are stated at the lower of cost and fair value.

h Revenue recognition

Sales is recognized when the property in the goods is passed on to the buyers net of trade discount / GST collected if any. Labour
Income is recognized when the services are rendered to the clients. Interest income is recognized on time proportionate method.
Dividend on Investment is recognised when the right to receive the payment is established.

i Taxation

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.

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 year 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 year based on
effective tax rates substantially enacted by the Balance Sheet date that would apply in the years in which the timing differences
are expected to reverse.

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.

j Foreign currency transactions

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign
currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the
exchange rate prevailing on the balance sheet date and exchange gains and losses are recognised in the statement of profit and
loss. Exchange difference arising on a monetary item that, in substance, forms part of an enterprise''s net investments in a non¬
integral foreign operation are accumulated in a foreign currency translation reserve.

k Inventories

Raw materials are carried at the lower of cost and net realisable value. Cost is determined on a FIFO basis. Purchased goods-in-
transit are carried at cost. Work-in-progress is carried at the lower of cost and net realisable value. Finished goods produced or
purchased by the Company are carried at lower of cost and net realisable value. Cost includes direct material and labour cost and
a proportion of manufacturing overheads.