Accounting Policies of Ausom Enterprise Ltd. Company

Mar 31, 2018

1. Significant accounting policies

1.1 Basis of Preparation

Statement of Compliance with Indian Accounting Standards {Ind AS):

The financial statements have been prepared in accordance with Ind AS notified under the Companies (‘Indian Accounting Standards) Rules, 2015 as amended and notified under Section 133 ofthe Companies Act, 2013 (“the Act”) and other relevant provisions of the Act and other accounting principles generally accepted in India. These a re the Company’s first Ind AS financial statements. The date of transition to Ind AS is April 1,2016.

Up to the financial year ended March 31, 2017, the Company prepared its financial statements in accordance with the requirements of the previous applicable GAAP, which included the Standards notified under the Companies (Accounting Standards) Rules, 2006 notified under Section 133 of the Act and other relevant provisions ofthe Act.

First-time adoption:

In accordance with Ind AS 101 on First-time adoption of Indian Accounting Standards, the Company’s first Ind AS financial statements include, three balance sheets viz. the opening balance sheet as at April 1, 2016 and balance Sheets as at March 31, 2017 and 2018, and, two statements each of profit and loss, cash flows and Changes in equity for the years ended March 31, 2017 and 2018 together with related notes. The same accounting policies have been consistently applied to all year presented, [except where the Company has made use of exceptions or exemptions allowed under Ind AS 101 in the preparation ofthe opening Ind AS balance sheet which have been disclosed in note no. 45]

Historical cost convention:

The financial statements have been prepared on historical cost basis, except for certain financial assets and liabilities thatare measured atfairvalue.

1.2 Useof estimates and judgments

The preparation of financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The difference between the actual results and estimates are recognized in the period in which the results are known or materialised. Continuous evaluation is done on the estimation and judgments based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognised prospectively.

1.3 Critical accounting estimates

A. income taxes

The Company’s tax jurisdiction is India. Significant judgments are involved in determining the provision for income taxes including amounts to be recovered or paid for uncertain tax positions. Management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timingand the level of futuretaxable profits.

B. Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystalisingorare very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognised.

1.4 Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue is recognised when it is earned and no significant uncertainty exists as to its realisation or collection.

A. Revenue from sale of goods is recognised at the point of dispatch to the customers when risk and reward stand transferred to the customers. Sales are inclusive of freight wherever it is charged.

B. Dividend income is recognised when the right to receive the dividend is established.

C. Operating and other Interest income on FDR is recognised on the time proportion basis taking into account of the amount outstanding and rate applicable.

D. SharesTransactions

(i) Where share trading purchase and share trading sales is settled within the same settlement, only net gain orlossis booked atfairvalue.

(ii) Where share trading purchase and share trading sales is not settled within the same settlement, each transaction is accounted as purchase and sales respectively at fair value.

E. Units of Mutual Funds

Units of Mutual Fund transactions are accounted at fair value as Sales or Purchase as and when it is committed.

F. DerivativeTransactionsin Future and Option

(i) Future or Option transactions in Equity/Index/Currency/Commodity with no hedging relationship are accounted expiry date wise separately and are recognised and measured at fair value in the balance sheet. The fair value of the derivative contract is marked to market through Statement of Profit and Loss and included in “Profit /(loss) on Derivative transactions (Net}”.

(ii) When future or option contract settled with actual delivery, the same is accounted for respective contract wise as purchase/salesatfairvalue.

G. Other Income

Revenue in respect of other income is recognized when no significant uncertainty as to its determination or realization exist.

1.5 Property, Plant & Equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises the purchase price (Net of Cenvat and VAT credit/GST input credit wherever applicable) and any attributable cost of bringing the assets to its working condition for its intended use. Such cost also includes the borrowing costs if the recognition criteria are met.

Depreciation on Tangible assets has been provided on straight line method as per useful life prescribed in Schedule II to the Companies Act, 2013. Depreciable amount for assets is the cost of an asset or other amount substituted for cost less its estimated residual value.

The residual values, useful lives and methods of depreciation of Property, plant and equipment are reviewed at the end of each reportingperiodandadjusted prospectively, if appropriate.

Capital work-in-progress:

Assets those are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost and related incidental expenses.

1.6 Inventories

(i) Trading Goods are valued at Cost or Net Realizable value whichever is lower. Cost is arrived at by using FIFO method.

(ii) Shares and Securities a re valued at fair value through Profit and Loss Account.

1.7 Cash Flow

The cash flow Statement reported using indirect method and presents cash flows by operating, investing and financing activities of the Company. Cash and cash equivalents presented in the cash flow statement consist of cash on hand and balances in current and demand deposit with banks. Bank overdrafts that are repayable on demand and form an integral part ofthe Company’s cash management are included as a component of cash and cash equivalent for the purpose of statement of cashflow.

1.8 Retirement and other Employee Benefits

Short-term employee benefits are recognized as expenses in the Statement of Profit and Loss of the year in which the related service is rendered atthe undiscounted amount as and when it accrues.

Defined contribution plans: Provident fund

Eligible employees ofthe Company receive benefits from a Provident fund, which is defined contribution plan. Both the eligible employees and the Company make monthly contributions to the provident fund equal to a specified percentage of the covered employee’s salary. Company’s contributions are charged as an expense in the Statement of Profit and Loss as they fall due based on the amount of contribution required to be made and when services are rendered by the employee.

Defined benefit plans: Gratuity

The Company provides for gratuity, a defined benefit retirement plan (‘the Gratuity Plan’) covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on respective employee’s salary and tenure of employment with the Company.

Liabilities with regard to Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using projected unit credit method.

The Company recognises the obligation of a defined benefit plan in its Balance Sheet as a liability by corresponding recognised as an expense in the Statement of Profit and Loss.

Gains and lossesthrough remeasurements ofthe defined benefit liability are recognised in other comprehensive income.

1.9 Taxes

Income tax expense comprises current income tax and deferred income tax. Income tax expense is recognised in the Statement of Profit and Loss except to the extent it relates to items recognised directly in equity, in which case it is recognised in other comprehensive income or other equity as the case may be.

Current income tax

Current tax is the amount of tax payable based on the taxable profit for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profits.

Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences, the carryforward of unused tax credits and any unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carryforward of unused tax credits and unused tax losses can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part ofthe deferred tax asset to be utilised.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off tax assets against tax liabilities.

1.10 Financial instruments

(a) Non-derivative financial instruments:

Initial recognition and measurement

All financial assets and liabilities are initially recognised at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised usingtradedate accounting.

Subsequent measurement

Financial assets carried at amortised cost

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of thefinancial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through other comprehensive income (FVOCI)

Afinancial asset is measured at FVOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through profit or loss (FVTPL)

Afinancial asset which is not classified in any of the above categories are measured at FVTPL.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.

(b) Derivative financial instruments

Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in statement of profit and loss immediately.

Derecognition of financial instruments Financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control thetransferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay.

On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in statement of profit and loss if such gain or loss would have otherwise been recognised in statement of profit and loss on disposal ofthat financial asset.

Financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

1.11 Impairments Impairment of financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal tothe 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date tothe amount that is required to be recognised is recognized as an impairment gain or loss in the statement of profit and loss.

Impairment of non-f inancial assets:

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the statement of profit and loss. When an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years. A reversal of impairment loss is recognised immediately in the statement of profit and loss.

1.12 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit and loss.

1.13 Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control ofthe Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognise a contingent liability but discloses its existence in the financial statements.

1 .14 Foreign Currency Transactions and Translations Functional currency

The functional currency ofthe Company is the Indian rupee. These financial statements are presented in Indian rupees.

Transactions and balances

Foreign currency transactions are recorded in the functional currency by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction. All foreign currency monetary assets and monetary liabilities as at the Balance Sheet date are translated into the functional currency at the applicable exchange rates prevailing on that date. All exchange differences arising on translation, are recognised in the Statement of Profit and Loss. Non-monetary assets and non-monetary liabilities denominated in foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date ofthe transaction.

Gain or losses upon settlement of foreign currency transactions are recognised in the Statement of Profit and Lossforthe period in which the transaction is settled.

1.15 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue;

Bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares). For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the yea rare adjusted for the effects of all dilutive potential equity shares.

1.16 Borrowing Costs

Borrowing costs are interest and other cost incurred in connection with borrowing of fund. Borrowing cost attributable to acquisition or construction of an asset which necessary takes a substantial period of time to get ready for their intended use are capitalised as part of cost of asset. All other borrowing costs are recognised to the Statement of Profit and Loss as an expense in the period in which they are incurred.

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Mar 31, 2016

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention, on accrual basis in accordance with Generally Accepted Accounting Principle (GAAP), and comply with the Accounting Standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.

1.2 Use of estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

1.3 Tangible fixed assets

Fixed Assets are stated at cost less accumulated depreciation. The cost comprises of purchase price, duties, levies and any directly attributable cost of bringing the assets to its working condition for the intended use.

1.4 Depreciation

Depreciation on tangible fixed assets has been provided on straight line method as per useful life prescribed in Schedule II to the Companies Act, 2013. Depreciable amount for assets is the cost of an asset or other amount substituted for cost less its estimated residual value.

1.5 Inventories

(i) Trading Goods are valued at Cost or Net Realizable value whichever is lower. Cost is arrived at by using FIFO method.

(ii) Shares and Securities are valued at Cost or Net Realizable value whichever is lower. Cost is arrived at by using FIFO method.

1.6 Cash Flow

The cash flow Statement is prepared by the indirect method set out in Accounting Standard-3 on Cash Flow Statement and presents cash flows by operating, investing and financing activities of the Company. Cash and cash equivalents presented in the cash flow statement consist of cash on hand and balances in current and demand deposit with banks.

1.7 Revenue Recognition

A. Revenue from sales is recognized at the point of dispatch to the customers when risk and reward stand transferred to the customers. Sales are inclusive of freight wherever it is charged.

B. Dividend income is recognized when the right to receive the dividend is established.

C. Operating and other Interest income on FDR is recognized on the time proportion basis taking into account of the amount outstanding and rate applicable.

D. Shares Transactions

(i) Where share trading purchase and share trading sales is settled within the same settlement, only net gain or loss is booked.

(ii) Where share trading purchase and share trading sales is not settled within the same settlement, each transaction is accounted as purchase and sales respectively.

E. Derivative Transactions in Future and Option

(i) Future or Option transactions in Equity/Index/Currency/Commodity are accounted expiry date wise separately.

(ii) Contracts for future or option in Equity/Index/Currency/Commodity are marked to market and losses are recognized in the Statement of Profit and Loss. Gains arising on the same are not recognized until realized on grounds of prudence.

(iii) when future or option contract settled with actual delivery, the same is accounted for respective contract wise as purchase/sales.

F. Other Income

Revenue in respect of other income is recognized when no significant uncertainty as to its determination or realization exist.

1.8 Purchase

Purchase cost of shares, securities and Units of Mutual Funds does not include other incidental charges except brokerage charges.

1.9 Employee Benefits

Short-term employee benefits are recognized as expenses in the Statement of Profit and Loss of the year in which the related service is rendered at the undiscounted amount as and when it accrues.

Long term employee benefits and post-employment benefits both funded and non-funded are recognized as expenses in the Statement of Profit and Loss of the year in which the related service is rendered based on actuarial valuation.

i. Company’s Contribution towards provident fund are accounted for at pre-determined rates and deposited into an EPFO.

ii. Gratuity is accounted for on the basis of actuarial valuation.

1.10 Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax assets is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

1.11 Provisions, Contingent Liabilities and Contingent Assets

Provision is recognized when there is a present obligation as a result of past event that probably requires an outflow of resources and reliable estimate can be made of the amount of the obligation. Disclosure for Contingent Liabilities is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. No provision is recognized or disclosure for Contingent Liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote. Contingent Asset is neither recognized nor disclosed in the financial statements.

1.12 Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior period is reversed if there has been a change in the estimate of recoverable amount.

1.13 Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of transaction.

(b) Monetary items denominated in foreign currencies at the year-end are restated at year-end rates.

(c) Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

(d) Foreign currency transactions hedged through forward contracts, the premium on such forward contracts is amortized over the life of the contract.

1.14 Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as Current investments. All other investments are classified as non-current investments. Current Investments are carried at lower of cost and quoted/fair value determined on category/item wise. Non-current investments are stated at cost. However, Provision for diminution in the value of long-term investment is made only if such a decline is other than temporary.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

1.15 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit and Loss.

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Mar 31, 2014

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention, on accrual basis in accordance with Generally Accepted Accounting Principle (GAAP), and comply with the Companies (Accounting Standard) Rules 2006 and relevant provisions of the Companies Act 1956 to the extent applicable and the Provisions of the Companies Act, 2013 to the extent notified.

1.2 Use of estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialised.

1.3 Tangible fixed assets

Fixed Assets are stated at cost less accumulated depreciation. The cost comprises of purchase price, duties, levies and any directly attributable cost of bringing the assets to its working condition for the intended use.

1.4 Depreciation

Depreciation on tangible fixed assets is provided on Straight Line Method in accordance with the rates and in manner specified in Schedule XIV of the Companies Act, 1956.

1.5 Inventories

(i) Trading Goods are valued at Cost or Net Realizable value whichever is lower. Cost is arrived at by using FIFO method.

(ii) Shares and Securities are valued at Cost or Net Realizable value whichever is lower. Cost is arrived at by using FIFO method.

1.6 Cash Flow

The cash flow statement is prepared by the indirect method set out in Accounting Standard-3 on Cash Flow Statement and presents cash flows by operating, investing and financing activities of the Company. Cash and cash equivalents presented in the cash flow statement consist of cash on hand and balances in current and demand deposit with banks.

1.7 Revenue Recognition

A. Revenue from sales is recognised at the point of dispatch to the customers when risk and reward stand transfered to the customers. Sales are inclusive of freight wherever it is charged.

B. Dividend income is recognised when the right to receive the dividend is established.

C. Operating and other Interest income on FDR is recognised on the time proportion basis taking into account of the amount outstanding and rate applicable.

D. Shares Transactions

(i) Where share trading purchase and share trading sales is settled within the same settlement, only net gain or loss is booked.

(ii) Where share trading purchase and share trading sales is not settled within the same settlement each transaction is accounted as purchase and sales respectively.

E. Derivative Transactions in Future and Option

(i) Future or Option transactions in Equity/Index/Currency/Commodity are accounted expiry date wise separately.

(ii) Gain or Loss is accounted on expiry date.

(iii) Contracts for future or option in Equity/Index/Currency/Commodity remaining unsettled at balance sheet date are provided for in case of loss only.

(iv) When future or option contract settled with actual delivery, the same is accounted for respective contract wise as purchase/sales.

F. Other Income

Revenue in respect of other income is recognized when no significant uncertainty as to its determination or realization exist.

1.8 Purchase

Purchase cost of shares, securities and Units of Mutual Funds does not include other incidental charges except brokerage charges.

1.9 Employee Benefits

Short-term employee benefits are recognized as expenses in the Statement of Profit and Loss of the year in which the related service is rendered atthe undiscounted amount as and when it accrues.

Long term employee benefits and post-employment benefits both funded and non-funded are recognized as expenses in the Statement of Profit and Loss of the year in which the related service is rendered based on actuarial valuation.

i. Company''s Contribution towards provident fund are accounted for at pre-determined rates and deposited in to an EPFO.

ii. Gratuity is accounted for on the basis of actuarial valuation.

1.10 Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and lows that are enacted or substantively enacted as on the balance sheet date. Deferred tax assets is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

1.11 Provisions, Contingent Liabilities and Contingent Assets

Provision is recognized when there is a present obligation as a result of past event that probably requires an outflow of resources and reliable estimate can be made of the amount of the obligation. Disclosure for Contingent Liabilities is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. No provision is recognized or disclosure for Contingent Liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote. Contingent Asset is neither recognized nor disclosed in the financial statements.

1.12 Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior period is reversed if there has been a change in the estimate of recoverable amount.

1.13 Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of transaction.

(b) Monetary items denominated in foreign currencies attheyear-end are restated atyear-end rates.

(c) Any income or expenses on account of exchange difference either on settlement or on translation is recognised in the Statement of Prof it and Loss.

(d) Profit/Loss on Forward Rate Agreement taken for hedging interest rate related risk is accounted at the time of starting date of each agreement.

(e) Foreign currency transactions hedged through forward contracts, the premium on such forward contracts is amortised over the life of the contract.

1.14 Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as Current investments. All other investments are classified as non-current investments. Current Investments are carried at lower of cost and quoted/fair value determined on category/item wise. Non- current investments are stated at cost. However, Provision for diminution in the value of long-term investment is made only if such a decline is other than temporary.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

1.15 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit and Loss.

2.3

(a) Terms/Rights attached to equity shares

(i) The company has only one class of equity shares having a par value of Rs. 10/-per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed if any by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting.

(ii) In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(b) Terms of Redemption, conversion & rights of preference shares

(i) Preference shares carry non-cumulative dividend at 1.5% p.a. (Upto 31/03/2013: cummulative dividend @ 16.5% p.a.). The dividend proposed if any by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting. The preference shares shall, in addition have a right to participating dividend over and above the base dividend mentioned above.

(ii) The liability for payment of Dividend on Cumulative Redeemable Participating Preference Shares of Rs. 20,00,00,000 is not provided in view of the accumulated loss. The amount of such accumulated dividend comes to Rs. 37,34,00,000 up to 31/03/2014.

(iii) The Preference Shares were issued on 09/12/1999 and are redeemable at par in three equal annual installments. The installments of such redemption were due on 9th Dec, 2006, 9th Dec 2007 and 9th Dec 2008. However, the Company has received consent letter from the preference shareholders postponing their right to receive payment of the installments of redeemption of preference shares amounting to Rs. 20,00,00,000 by eight years.

(iv) At the time of redemption of the Preference Shares or in the event of winding-up of the Company, the arrears of dividend on the Preference Shares whether earned, declared or not shall also be paid to the Subscribers.

(v) The Subscribers shall have the same voting rights in respect of the Preference Shares as are available and applicable to preference shares under the Companies Act, 1956.

(vi) In the event of default in payment of base and / or participating dividend inspite of adequate profits and / or redemption of Preference Shares as per the terms of issue, the subscriber shall have the right to convert at its option 100% of the Preference Shares into fully paid-up Equity Shares of the Company, at par, in the manner specified in writing to be given by the Subscribers.

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Mar 31, 2013

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention, on accrual basis in accordance with Generally Accepted Accounting Principle (GAAP), and comply with the Companies (Accounting Standard) Rules 2006 and relevant provisions of the Companies Act 1956 to the extent applicable.

1.2 Use of estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialised.

1.3 Tangible fixed assets

Fixed Assets are stated at cost less accumulated depreciation. The cost comprises of purchase price, duties, levies and any directly attributable cost of bringing the assets to its working condition for the intended use.

1.4 Depreciation

Depreciation on tangible fixed assets is provided on Straight Line Method in accordance with the rates and in manner specified in Schedule XIV of the Companies Act, 1956.

1.5 Inventories

(i) Trading Goods are valued at Cost or Net Realizable value whichever is lower. Cost is arrived at by using FIFO method. (ii) Shares and Securities are valued at Cost or Net Realizable value whichever is lower. Cost is arrived at by using FIFO method.

1.6 Cash Flow

The cash flow statement is prepared by the indirect method set out in Accounting Standard-3 on Cash Flow Statement and presents cash flows by operating, investing and financing activities of the Company. Cash and cash equivalents presented in the cash flow statement consist of cash on hand and balances in current and demand deposit with banks.

1.7 Revenue Recognition

A. Revenue from sales is recognised at the point of dispatch to the customers when risk and reward stand transfered to the customers. Sales are inclusive of freight wherever it is charged.

B. Dividend income is recognised when the right to receive the dividend is established.

C. Operating and other Interest income on FDR is recognised on the time proportion basis taking into account of the amount outstanding and rate applicable.

D. Shares Transactions

(i) Where share trading purchase and share trading sales is settled within the same settlement, only net gain or loss is booked.

(ii) Where share trading purchase and share trading sales is not settled within the same settlement, each transaction is accounted as purchase and sales.

E. Derivative Transactions in Future and Option

(i) Future or Option transactions in Equity/Index/Currency/Commodity are accounted expiry date wise separately.

(ii) Gain or Loss is accounted on expiry date.

(iii) Contracts for future or option in Equity/Index/Currency/Commodity remaining unsettled at balance sheet date are provided for in case of loss only.

(iv) When future or option contract settled with actual delivery, the same is accounted for respective contract wise as purchase/sales.

F. Other Income

Revenue in respect of other income is recognized when no significant uncertainty as to its determination or realization exist.

1.8 Purchase

Purchase cost of shares, securities and Units of Mutual Funds does not include other incidental charges except brokerage charges.

1.9 Employee Benefits

Short-term employee benefits are recognized as expenses in the Statement of Profit and Loss of the year in which the related service is rendered at the undiscounted amount as and when it accrues.

Long term employee benefits and post-employment benefits both funded and non-funded are recognized as expenses in the Statement of Profit and Loss of the year in which the related service is rendered based on actuarial valuation.

i. Company''s Contribution towards provident fund are accounted for at pre-determined rates and deposited in to an EPFO. ii. Gratuity is accounted for on the basis of actuarial valuation.

1.10 Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and lows that are enacted or substantively enacted as on the balance sheet date. Deferred tax assets is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

1.11 Provisions, Contingent Liabilities and Contingent Assets

Provision is recognized when there is a present obligation as a result of past event that probably requires an outflow of resources and reliable estimate can be made of the amount of the obligation. Disclosure for Contingent Liabilities is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. No provision is recognized or disclosure for Contingent Liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote. Contingent Asset is neither recognized nor disclosed in the financial statements.

1.12 Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior period is reversed if there has been a change in the estimate of recoverable amount.

1.13 Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of transaction.

(b) Monetary items denominated in foreign currencies at the year-end are restated at year-end rates.

(c) Any income or expenses on account of exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss.

(d) Profit/Loss on Forward Rate Agreement taken for hedging interest rate related risk is accounted at the time of starting date of each agreement.

(e) Foreign currency transactions hedged through forward contracts, the premium on such forward contracts is amortised over the life of the contract.

1.14 Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as Current investments. All other investments are classified as non-current investments. Current Investments are carried at lower of cost and quoted/fair value determined on category/item wise. Non- current investments are stated at cost. However, Provision for diminution in the value of long-term investment is made only if such a decline is other than temporary.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

1.15 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit and Loss.

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Mar 31, 2012

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention, on accrual basis in accordance with Generally Accepted Accounting Principle (GAAP), and comply with the Companies (Accounting Standard) Rules 2006 and relevant provisions of the Companies Act 1956 to the extent applicable.

1.2 Presentation and disclosure of financial statements

During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosure made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

1.3 Use of estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

1.4 Tangible fixed assets

Fixed Assets are stated at cost less accumulated depreciation. The cost comprises of purchase price, duties, levies and any directly attributable cost of bringing the assets to its working condition for the intended use.

1.5 Depreciation

Depreciation on tangible fixed assets is provided on Straight Line Method in accordance with the rates and in manner specified in Schedule XIV of the Companies Act, 1956.

1.6 Inventories

(i) Trading Goods are valued at Cost or Net Realizable value whichever is lower. Cost is arrived at by using FIFO method.

(ii) Shares and Securities are valued at Cost or Net Realizable value whichever is lower. Cost is arrived at by using FIFO method.

1.7 Cash Flow

The cash flow statement is prepared by the indirect method set out in Accounting Standard-3 on Cash Flow Statement and presents cash flows by operating, investing and financing activities of the Company. Cash and cash equivalents presented in the cash flow statement consist of cash on hand and balances in current and demand deposit with banks.

1.8 Revenue Recognition

A. Revenue from sales is recognised at the point of dispatch to the customers when risk and reward stand transfered to the customers. Sales are inclusive of freight wherever it is charged.

B. Dividend income is recognised when the right to receive the dividend is established.

C. Operating and other Interest income on FDR is recognised on the time proportion basis taking into account of the amount outstanding and rate applicable.

D. Shares Transactions

(i) Where share trading purchase and share trading sales is settled within the same settlement, only net gain or loss is booked.

(ii) Where share trading purchase and share trading sales is not settled within the same settlement, each transaction is accounted as purchase and sales.

E. Derivative Transactions in Future and Option

(i) Future or Option transactions in Equity/Index/Currency/Commodity are accounted expiry date wise separately.

(ii) Gain or Loss is accounted on expiry date.

(iii) Contracts for future or option in Equity/Index/Currency/Commodity remaining unsettled at balance sheet date are provided for in case of loss only.

(iv) When future or option contract settled with actual delivery, the same is accounted for respective contract wise as purchase/sales.

F. Other Income

Revenue in respect of other income is recognized when no significant uncertainty as to its determination or realization exist.

1.9 Purchase

Purchase cost of shares, securities and Units of Mutual Funds does not include other incidental charges except brokerage charges.

1.10 Employee Benefits

Short-term employee benefits are recognized as expenses in the Statement of Profit and Loss of the year in which the related service is rendered at the undiscounted amount as and when it accrues.

Long term employee benefits and post-employment benefits both funded and non-funded are recognized as expenses in the Statement of Profit and Loss of the year in which the related service is rendered based on actuarial valuation.

i. Company's Contribution towards provident fund are accounted for at pre-determined rates and deposited in to an EPFO.

ii. Gratuity is accounted for on the basis of actuarial valuation.

1.11 Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and lows that are enacted or substantively enacted as on the balance sheet date. Deferred tax assets is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

1.12 Provisions, Contingent Liabilities and Contingent Assets

Provision is recognized when there is a present obligation as a result of past event that probably requires an outflow of resources and reliable estimate can be made of the amount of the obligation. Disclosure for Contingent Liabilities is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. No provision is recognized or disclosure for Contingent Liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote. Contingent Asset is neither recognized nor disclosed in the financial statements.

1.13 Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior period is reversed if there has been a change in the estimate of recoverable amount.

1.14 Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of transaction.

(b) Monetary items denominated in foreign currencies at the year-end are restated at year-end rates.

(c) Any income or expenses on account of exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss.

(d) Profit/Loss on Forward Rate Agreement taken for hedging interest rate related risk is accounted at the time of starting date of each agreement.

(e) Foreign currency transactions hedged through forward contracts, the premium on such forward contracts is amortised over the life of the contract.

1.15 Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as Current investments. All other investments are classified as non-current investments. Current Investments are carried at lower of cost and quoted/fair value determined on category/item wise. Non- current investments are stated at cost. However, Provision for diminution in the value of long-term investment is made only if such a decline is other than temporary.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

1.16 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit and Loss.

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Mar 31, 2011

1) ACCOUNTING CONVENTION:

The Financial Statements are prepared under the historical cost convention and in accordance with the Generally Accepted Accounting Principles (GAAP) in India and applicable provisions of the Companies Act, 1956.

All expenses and income to the extent considered payable and receivable respectively except stated otherwise have been accounted on mercantile basis.

2) SALES, OPERATIONAL AND OTHER INCOME:

(a) Sales:

Sales are recognized on despatch of material and on change of title of the goods and inclusive of freight wherever it is charged.

(b) Operational Income:

Interest on Fixed Deposits is accounted on accrual basis.

(c) Other Income:

Revenue in respect of other income is recognized when no significant uncertainty as to its determination or realization exists.

Dividend income is accounted as and when the right to received is established.

(d) Shares Transaction:

I) Where Shares Trading Purchases and Shares Trading Sales is settled without delivery within the same settlement, only net gain / loss is booked.

ii) Where Shares Trading Purchases and Share Trading Sales is not settled within the same settlement, each transactions of delivery are accounted as purchase & sales.

(e) Derivative Transaction in Future and Option :

i) Future or Option transactions in Equity/Index/Currency/ Commodity are accounted on expiry date wise separately.

ii) Gain or Loss is accounted on expiry date.

iii) Contracts for future or option in Equity/Index/Currency/ Commodity remaining unsettled at balance sheet date are provided for in case of loss only.

iv) When future or option contract settled with actual delivery, the same is accounted for respective contract wise as purchase / sales.

3) FIXED ASSETS & DEPRECIATION:

(a) Fixed Assets are stated at cost. Cost comprises of Purchase Price, duties, levies and any other directly attributable cost of bringing the assets to its working condition for the intended use.

(b) Depreciation on Fixed Assets is provided on straight line method in accordance with the rates and in manner specified in Schedule XIV of the Companies Act, 1956. Pro-rata depreciation is provided in the case of additions / deletions to Fixed Assets.

4) INVENTORIES:

(a) Trading goods are valued at cost or net realizable value which ever is lower. Cost is arrived at by using FIFO method.

(b) Shares and Securities are valued at cost or net realizable value whichever is lower. Cost is arrived by using FIFO method.

5) FOREIGN CURRENCY TRANSACTIONS:

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of transaction. Gains and Losses resulting from the settlement of such transaction and from the translation of monetary assets and liabilities denominated in foreign currencies are recognized in the profit and loss account.

In case of foreign currency transactions hedged through forward contracts, the premium on such forward contracts is amortised over the life of the contract.

Profit/Loss on Forward Rate Agreement taken for hedging interest rate related risk is accounted at the time of starting date of each agreement.

6) INVESTMENTS:

Investments are classified into current and long- term investments. Current investments are stated at the lower of cost and fair value. Long-term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments.

7) PURCHASE:

Purchase includes cost of raw materials and other items with other incidental expenses excluding excise duty and VAT.

Purchase cost of Shares, Securities and Units of Mutual Fund does not include other incidental charges except brokerage charges.

8) CASH FLOW:

The Cash Flow Statement is prepared by the indirect method set out in Accounting Standard - 3 on Cash Flow Statement and presents cash flows by operating, investing and financing activities of the Company Cash and cash equivalents presented in the cash flow statement consist of cash on hand and balances in current and demand deposits with banks.

9) IMPAIRMENT OF ASSETS:

An Asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged for when an asset is identified as impaired. The impairment loss recognized in prior period is reversed if there has been a change in the estimate of recoverable amount.

10) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provision is recognized when there is a present obligation as a result of past event that probably require an out flow of resources and reliable estimate can be made of the amount of the obligation.

Disclosure for contingent liabilities are made when there is possible obligation or a present obligation that may, but probably will not, require an out flow of resources. No provision is recognized or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote.

Contingent Asset is neither recognized nor disclosed in the financial statement.

11) PROVISION FOR CURRENT AND DEFERRED TAX:

a) Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

b) Deferred tax resulting from "Timing difference" between book profit and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extend that there is a reasonable certainty that the assets will be realized in future.

12) EMPLOYEE BENEFITS:

(i) Short Term Employee Benefits:-

The undiscounted amount of short term employee benefits expected to be paid in exchange for the service rendered by employee is recognized during the period when the employee renders the service.

(ii) Post Employment Benefits:-

Contributions to defined contribution scheme such as Provident Fund etc. are charged to the profit and loss account as incurred. The company also provides for Post Employment Benefits in the form of Gratuity, such benefits are provided in books of accounts for based on valuations as at the balance sheet date, made by independent actuaries.

13) Borrowing Costs : -

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss Account,

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Mar 31, 2010

1) ACCOUNTING CONVENTION:

The accounts are prepared under the historical cost convention and on the going concern basis. All expenses and income to the extent considered payable and receivable respectively, except stated otherwise have been accounted for on mercantile basis.

2) SALES AND OTHER INCOME:

(a) Sales:

Sales are recognized on despatch of material and on change of title of the goods and inclusive of freight wherever it is charged.

(b) Other Income:

Revenue in respect of other income is recognized when no significant uncertainty as to its determination or realization exists.

Dividend income is accounted on receipt basis.

(c) Shares Transaction:

i) Where Shares Trading Purchases and Shares Trading Sales is settled without delivery within the same settlement, only net gain / loss is booked.

ii) Where Shares Trading Purchases and Share Trading Sales is not settled within the same settlement, each transactions of delivery are accounted as purchase & sales.

3) FIXED ASSETS & DEPRECIATION:

(a) Fixed assets are capitalized at cost including all direct costs and other expenses including interest incurred in connection with acquisition of assets apportioned thereto.

(b) Depreciation on Fixed Assets is provided on straight line method in accordance with the rates and in manner specified in Schedule XIV of the Companies Act, 1956.

4) INVENTORIES:

(a) Trading goods are valued at cost or net realizable value which ever is lower. Cost is arrived at by using FIFO method.

(b) Shares and Securities are valued at cost or net realizable value whichever is lower.

5) FOREIGN CURRENCY TRANSACTION:

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of transaction. Gains and Losses resulting from the settlement of such transaction and from the translation of monetary assets and liabilities denominated in foreign currencies are recognized in the profit and loss account.

6) INVESTMENTS :

Investments are classified into current and long- term investments. Current investments are stated at the lower of cost and fair value. Long-term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments.

7) Purchase includes cost of raw materials and other items with other incidental expenses excluding excise duty and VAT. Purchase cost of Shares & Securities does not include other incidental charges except brokerage charges.

8) CASH FLOW:

The Cash Flow Statement is prepared by the indirect method set out in Accounting Standard - 3 on Cash Flow Statement and presents cash flows by operating, investing and financing activities of the Company. Cash and cash equivalents presented in the cash flow statement consist of cash on hand and balances in current and demand deposits with banks.

9) IMPAIRMENT OF ASSETS:

An Asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged for when an asset is identified as impaired. The impairment loss recognized in prior period is reversed if there has been a change in the estimate of recoverable amount.

10) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provision is recognized when there is a present obligation as a result of past event that probably require an out flow of resources and reliable estimate can be made of the amount of the obligation.

Disclosure for contingent liabilities are made when there is possible obligation or a present obligation that may, but probably will not, require an out flow of resources. No provision is recognized or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote.

Contingent Asset is neither recognized nor disclosed in the financial statement.

11) PROVISION FOR CURRENT AND DEFERRED TAX:

a) Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

b) Deferred tax resulting from "Timing difference" between book profit and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

12) EXCISE/ CENVAT/ SERVICE TAX:

(a) Excise duty expenses are inclusive of cenvat benefit availed on inputs and fixed assets.

(b) The Service tax charged by the service providers to the Company and service tax paid on services availed for inward goods transport agencies are taken as credit under Cenvat as per rule wherever applicable.

13) EMPLOYEE BENEFITS:

(i) Short Term Employee Benefits:-

The undiscounted amount of short term employee benefits expected to be paid in exchange for the service rendered by employee is recognized during the period when the employee renders the service.

(ii) Post Employment Benefits:-

Contributions to defined contribution scheme such as Provident Fund etc. are charged to the profit and loss account as incurred. The company also provides for Post Employment Benefits in the form of Gratuity, such benefits are provided for based on valuations as at the balance sheet date, made by independent actuaries.

14 ) MULTI COMMODITY TRANSACTIONS : -

(a) Difference of sales and purchase of different commodities traded is accounted on daily basis, including strike date of relevant transactions.

(b) Gain or loss on each contract of commodities is accounted on expiry date of the relevant contract.

(c) Contract for commodity trade which remains unsettled at balance sheet date is provided for in case of loss .

(d) Delivery of commodity traded taken at expiry of contract is settled by actual delivery and accounted separately.