A provision is recognised if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimatedreliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. Where discounting is
used, the increase in the provision due to the passage of time is recognized as a finance cost.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. Where there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of resources is remote, no provision
or disclosure is made.

Contingent assets

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed
continually and if it is virtuallycertain that an inflow of economic benefits will arise, the asset and
related income are recognised in the period in which the changeoccurs.

6) Revenue Recognition
Sale of goods and services
Sale of goods

Revenue from the sale of goods shall be recognized when all the followingconditions have been satisfied:

(a) the entity has transferred to the buyer thesignificant risks and rewards of ownership of the goods;

(b) the entity retainsneither continuing managerial involvement to the degree usually associated
withownership nor effective control over the goods sold; (c) the amount of revenuecan be measured
reliably; (d) it is probable that the economic benefits associatedwith the transaction will flow to the
entity; and (e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

When the outcome of a transaction involving the rendering of services can beestimated reliably, revenue
associated with the transaction shall be recognized by reference to the stage of completion of the
transaction at the end of thereporting period.

7) Tax Expenses

Tax expense consists of current and deferred tax.

Income Tax

Income tax expense is recognized in the statement of profit and loss exceptto the extent that it relates
to items recognized directly in equity, in which case it is recognized in equity. Current tax is the
expected taxpayable on the taxable income for the year, using tax rates enacted or substantively enacted
at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred Tax

Deferred tax is recognised using the balance sheet method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to the
temporary differenceswhen they reverse, based on the laws that have been enacted or substantively
enacted by the reporting date. Deferred tax assets andliabilities are offset if there is a legally enforceable
right to offset current tax liabilities and assets, and they relate to income taxes leviedby the same tax
authority on the same taxable entity, or on different tax entities, but they intend to settle current tax
liabilities and assetson a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be
available against which the temporary difference can be utilized. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that the related tax
benefit will be realized.

Dividend distribution tax arising out of payment of dividends to shareholders under the Indian Income
tax regulations is not consideredas tax expense for the Company and all such taxes are recognized in
the statement of changes in equity as part of the associateddividend payment.

8) Earnings Per Share

The Company presents basic and diluted earnings per share (“EPS”) data for its ordinary shares. Basic
earnings per share is computed by dividing the net profit after tax by the weighted average number of
equity shares outstanding during the period.Diluted earnings per share is computed by dividing the
profit after tax by the weighted average number of equity shares considered for deriving basic earnings
per share and also the weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.

9) Trade receivables

Trade receivables are initially recognized at fair value and subsequently measured at amortised cost
using effective interest method, less provision for impairment.

10) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of
the financial year which are unpaid. The amounts are unsecured and are presented as current liabilities
unless payment is not due within twelve months after the reporting period. They are recognized initially
at fair value and subsequently measured atamortized cost using the effective interest method.

As per our report of even date

For NSVR & ASSOCIATES LLP For and on behalf of Board

Chartered Accountants SUPRA TRENDS LIMITED

FRN: 008801S/S200060

Sd/- Sd/- Sd/-

Rama Rao Talluri MVK Sunil Kumar Girish Shivaram Gaonkar

Partner (Managing Director) (Company Secretary &

M.No.219207 DIN:03597178 Compliance Officer)

UDIN:24219207BKAQPL6247

Place : Hyderabad
Date : 28/05/2024