Accounting Policies of Pushpsons Industries Ltd. Company

Mar 31, 2024

1. GENERAL INFORMATION

Pushpsons Industries Limited (CIN: L74899DL1994PLC059950) is engaged in the business of manufacturing
of Carpet & Made-ups. The Company is a public limited company and has its registered office at New Delhi.
The Company has its listing with BSE Limited.

These financial statements have been approved by the Board of Directors, at their meeting held on 22nd May,
2024.

2. BASIS OF PREPARATION

The financial statements have been prepared in accordance with and in compliance, in all material aspects,
with Indian Accounting Standards (“Ind- AS”) notified under section 133 of the Companies Act, 2013 (Act) read
along with Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions
of the Act. The presentation of the Financial Statements is based on Ind AS Schedule III of the Act.

The financial statements prepared under the historical cost convention, on a going concern basis and accrual
method of accounting, except for certain financial assets and liabilities as specified in defined benefit plans
which have been measured at actuarial valuation as required by relevant (Ind-AS). The accounting policies
applied are consistent with those used in the previous year, except otherwise stated. The Company as required
by (Ind-AS) presents assets and liabilities in the balance sheet based on current/non-current classification
based on the criteria of realization/settlement within a period of twelve-month period from the balance date.

The statement of cash flows have been prepared under indirect method, whereby profit or loss is adjusted for
the effects of transactions of a non-cash nature, and deferrals or accruals of past or future operating cash
receipts or payments of items of income or expense associated with investing or financial cash flows. The cash
flows from operating, investing and financial activities of the Company are segregated.

3. Use to estimates and judgements

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires
management to make estimates and assumptions that affect the reported amounts assets and liabilities and
disclosure of contingent liabilities at the date of the financial statements anad the results of operations during
the reporting period. Although these estimates are based upon management''s best knowledge of current
events and actions, actual results could differ from these estimates. Revisions to accounting estimates are
recognized prospectively.

4. Property, plant and equipment

Property, plant and equipment (PPE) are carried at historical cost of acquisition less accumulated depreciation
and accumulated impairment losses, if any. Cost comprises of purchase price and all directly attributable cost
of acquition. Subsequent expenditure is capitalized only if it is probable that the future economic benefits
associated with the expenditure will flow to the Company. The carrying amount of an item of PPE are derecognized
on disposal or when no future economic benefits are expected from its use or disposal. The repairs and
maintenance are charged to statement of profit and loss during the financial year in which they are incurred.

5. Depreciation

Depreciation is provided as per Schedule II to the Companies Act, 2013, on straight line method with reference
to the useful life of the assets specified therein. Land is not depreciated.

6. Impairment of tangible assets

The carrying amounts of assets/cash generating units are reviewed at each balance sheet date if there is any
indication of impairment based on internal/external factors. An impairment loss is recognized in the statement
of profit and loss whenever the carrying amount of an asset or cash generating unit exceeds its recoverable
amount. The recoverable amount of the assets (or where applicable, that of cash generating unit to which the
asset belongs) is estimated as the higher of its net selling price and its value in use. A previously recognized
impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value
after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation
if there was no impairment.

7. Inventories

Inventories are valued at the lower of cost and net realisable value. Finished goods and work in progress are
valued at lower of cost and net realizable value.

8. Cash and Cash Equivalent

Cash and cash equivalent in the financial statements comprise cash at bank and on hand, short-term deposits
with an original maturity of three months or less and highly liquid investment that are readily convertible into
known amount of cash and which are subject to insignificant risk of changes in value.

9. Foreign currency transaction / translations

Transactions in foreign currency including acquisition of fixed assets are recorded at the prevailing exchange
rates on the date of the transaction. All monetary assets and monetary liabilities in foreign currencies are
translated at the relevant rates of exchange prevailing at the year-end. Exchange differences arising out of
payment/restatement of long-term liabilities relating to property, plant and equipment are capitalized and in
other cases amortised over the balance period of such long-term monetary items. The unamortized balance
is carried in the Balance Sheet as “Foreign currency monetary items translation difference account” as a
separate line item under “Other equity”.

10. Financial liability

i) Initial recognition and measurement:

Financial liabilities are recognized initially at fair value plus any transaction cost that are attributable to
the acquisition of the financial liability except financial liabilities at FVTPL that are measured at fair value.

ii) Subsequent measurement:

Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial liabilities
carried at fair value through profit or loss are measured at fair value with all changes in fair value
recognized in the statement of profit and loss.

iii) De-recognition:

A financial liability shall be de-recognized when, and only when, it is extinguished i.e., when the obligation
specified in the contract is discharged or cancelled or expires. The difference between the carrying
amount and fair value of the liabilities shall be recognized in the statement of profit and loss.

11. Taxation

i) Current Tax:

Provision for current tax is recognized based on the estimated tax liability computed after taking credit
for allowances and exemptions in accordance with the Income Tax Act, 1961.

ii) Deferred tax:

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary
differences between the financial statements'' carrying amount of existing assets and liabilities and their
respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates or tax
rates that are substantively enacted at the balance sheet dates. The effect on the deferred tax assets and
liabilities of a change in tax rate is recognized in the period that includes the enactment date. Deferred
tax assets are recognized only to the extent there is virtual certainty of realization in future.
Transaction or event which is recognized outside Profit or Loss, either in Other Comprehensive Income
or in equity, is recorded along with the tax as applicable.

j. Employees Benefits:

1. Retirement benefits in the form of the company''s contribution to Provident Fund are charge to the
Statement of Profit & Loss for the year when the contributions to the fund are due.

2. Short-term Employee benefits:

i) All employee benefits payable wholly within twelve months of rendering the service are classified
as short-term employee benefits. These benefits include compensated absences such as paid
annual leave. The undiscounted amount of short-term employee benefits expected to be paid
in exchange for the services rendered by employees is recognized during the period.

ii) Post-employment benefits:

Retirement benefits in the form of the Company''s contribution to Provident Fund are charged
to the statement of Profit and Loss of the year when the contributions to the respective funds
are due.

The liability in respect of defined benefit plan (Gratuity) is calculated using the Projected Unit
Credit method and spread over the period during which the benefit is expected to be derived
from employees Services.

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Mar 31, 2014

A. Basis of accounting:

1. These financial statements have been prepared on an accrual basis and under the historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under the provisions of the Companies Act, 1956.

B. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known / materialised.

C. Fixed Assets, Depreciation and impairment:

1. The Fixed Assets of the Company are stated at cost comprising purchase price and other costs which are directly attributable to bringing the asset to its working condition for the intended use.

2. Depreciation on Fixed Assets of the Company is provided on the basis of Straight Line Method in accordance with Schedule XIV read with Section 205 (2) (b) of the Companies Act, 1956.

3. Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company''s fixed assets. If any indication exists, an asset''s recoverable amount is estimated. Impairment is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

D. Conversion of Foreign Currency items:

All transactions in foreign currencies, are recorded at the rate of exchange prevailing on the dates when the transaction takes place.

E. Inventory Valuation:

Inventories are valued at cost except finished goods and work in progress. Finished Goods are valued at lower of cost or market value. Work-in-progress is valued at estimated cost.

F. Sale:

Sales and exports are net of returns and rebates and booked on the basis of dispatches from the factory.

G. Taxation

Income tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of provisions of the Income Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting is accounted using current tax rates. Deferred tax asset is recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each Balance Sheet date based on developments during the year.

H. Retirement Benefits:

Reti;ement benefits in the form of the company''s contribution to Provident Fund are charge to the Statement of Profit & Loss for the year when the contributions to the fund are due.

I. Provisions and Contingencies

A provision is recognized when there is a present obligation as result of past event, that probably requires an out flow of resources and a reliable estimate can be made to settle the amount of obligation. Provision is not discounted to its present value and is determined on the last estimate required to settle the obligation at the year end. Contingent liabilities are not recognized but disclosed in the financial statements.

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Mar 31, 2013

A. Basis of accounting :

1. These financial statements have been prepared on an accrual basis and under the historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under the provisions of the Companies Act, 1956.

B. Use of Estimates :

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known / materialised.

C Fixed Assets, Depreciation and Impairment :

1. The Fixed Assets of the Company are stated at cost comprising purchase price and other costs which are directly attributable to bringing the asset to its working condition for the intended use.

2. Depreciation on Fixed Assets of the Company is provided on the basis of Straight Line Method in accordance with Schedule XIV read with Section 205 (2) (b) of the Companies Act, 1956.

3. Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company''s fixed assets. If any indication exists, an asset''s recoverable amount is estimated. Impairment is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

0. Conversion of Foreign Currency items :

All transactions in foreign currencies, are recorded at the rate of exchange prevailing on the dates when the transaction takes place.

E. Inventory Valuation :

Inventories are valued at cost except finished goods and work in progress .Finished Goods are valued at lower of cost or market value .Work -in-progress is valued at estimated cost ..

F. Sale :

Sales and exports are net of returns and rebates and booked on the basis of dispatches from the factory.

G. Taxation :

Income tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of provisions of the Income Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting is accounted using current tax rates. Deferred tax asset is recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each Balance Sheet date based on developments during the year.

H. Retirement Benefits :

Retirement benefits in the form of the company''s contribution to Provident Fund are charge to the Statement of Profit & Loss for the year when the contributions to the fund are due.

l. Provisions and Contingencies :

A provision is recognized when there is a present obligation as result of past event, that probably requires an out flow of resources and a reliable estimate can be made to settle the amount of obligation. Provision is not discounted to its present value and is determined on the last estimate required to settle the obligation at the year end. Contingent liabilities are not recognized but disclosed in the financial statements.

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Mar 31, 2012

A. Basis of accounting:

1. These financial statements have been prepared on an accrual basis and under the historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under the provisions of the Companies Act, 1956.

B. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known / materialised.

C. Fixed Assets, Depreciation and Impairment:

1. The Fixed Assets of the Company are stated at cost comprising purchase price and other costs which are directly attributable to bringing the asset to its working condition for the intended use. -

2. Depreciation on Fixed Assets of the Company is provided on the basis of Straight Line Method in accordance with Schedule XIV read with Section 205 (2) (b) of the Companies Act, 1956.

3. Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. Impairment is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

D. Conversion of Foreign Currency items:

All transactions in foreign currencies, are recorded at the rate of exchange prevailing on the dates when the transaction takes place.

E. Inventory Valuation:

Inventories are valued at cost except finished goods and work in progress .Finished Goods are valued at lower of cost or market value .Work -in-progress is valued at estimated cost.

F. Sale:

Sales and exports are net of returns and rebates and booked on the basis of dispatches from the factory.

G. Taxation

Income tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of provisions of the Income Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting is accounted using current tax rates. Deferred tax asset is recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each Balance Sheet date based on developments during the year.

H. Retirement Benefits:

Retirement benefits in the form of the company's contribution to Provident Fund are charge to the Statement of Profit & Loss for the year when the contributions to the fund are due.

I. Provisions and Contingencies

A provision is recognized when there is a present obligation as result of past event, that probably requires an out flow of resources and a reliable estimate can be made to settle the amount of obligation. Provision is not discounted to its present value and is determined on the last estimate required to settle the obligation at the year end. Contingent liabilities are not recognized but disclosed in the financial statements.

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Mar 31, 2011

A. Basis of accounting:

1. The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

2. The Financial Statement has been prepared under the historical cost convention, except otherwise stated, and on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

B. Fixed Assets, Depreciation and Impairment:

1. The Fixed Assets of the Company are stated at cost comprising purchase price (net of rebates and discounts) and other costs which are directly attributable to bringing the asset to its working condition for the intended use.

2. Depreciation on Fixed Assets of the Company is provided on the basis of Straight Line Method in accordance with Schedule XIV read with Section 205 (2) (b) of the Companies Act, 1956.

3. Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. Impairment is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

C. Conversion of Foreign Currency items:

Transactions in foreign currencies are translated at the exchange rate prevailing on the day of transaction.

D. Inventory Valuation:

Inventories are valued at cost except finished goods and work in process. Finished Goods are valued at lower of cost or Market value. Work- in- process is valued at estimated cost.

E. Sale:

Sales and exports are net of returns and rebates and booked on the basis of dispatches from the factory.

F. Taxation

Income tax expense comprises current tax and deferred tax charge or credit. The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each Balance Sheet date based on developments during the year.

G. Retirement Benefits:

Retirement benefits in the form of the company's contribution to Provident Fund are charge to the Profit & Loss account for the year when the contributions to the fund are due.

H. Provisions and Contingencies

The company creates a provision when there is a present obligation as result of past event that probably requires an out flow of resources and a reliable estimate can be made of the amount of obligation. A disclosure of contingent liability is made when there is a possible obligation of a present obligation that will probably not require outflow of the resources or where a reliable estimate of the obligation cannot be made.

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Mar 31, 2010

A. Basis of accounting:

1. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. The Financial Statement has been prepared under the Historical Cost Convention, in accordance with the generally accepted accounting policies and the provisions of the Companies Act, 1956.

B. Fixed Assets, Depreciation and Impairment:

1. The Fixed Assets of the Company are stated at Cost comprising purchase price (net of rebates and discounts) and other costs which are directly attributable to bringing the asset to its working condition for the intended use.

2. Depreciation on Fixed Assets of the Company is provided on the basis of Straight Line Method in accordance with Schedule XIV read with Section 205 (2) (b) of the Companies Act, 1956.

3. Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company’s fixed assets. If any indication exists, an asset’s recoverable amount is estimated. Impairment is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

C. Conversion of Foreign Currency items:

All realizations/ payments of foreign currency are made on actual receipt / payment basis.

D. Inventory Valuation:

Inventories are valued at cost except finished goods and work in process. Finished Goods are valued at lower of cost or Market value. Work- in- process is valued at estimated cost.

E. Sale:

Sales and exports are net of returns and rebates and booked on the basis of dispatches from the factory.

F. Taxation:

Income tax expense comprises current tax and deferred tax charge or credit. The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each Balance Sheet date based on developments during the year.

G. Retirement Benefits:

Contribution to Provident Fund is accounted on accrual basis.