Enter the first few characters of Company and click 'Go'

Accounting Policies of Suraj Ltd. Company

Mar 31, 2019

1 Summary of significant accounting policies

1.1 Current versus non-current classification:

The Company presents assets and liabilities in the Balance Sheet based on current/non current classification.

An asset is treated as current when it is:

i. Expected to be realised or intended to sold or consumed in normal operating cycle;

ii. Held primarily for the purpose of trading;

iii. Expected to be realised within twelve months after the reporting period; or

iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

The Company classifies all other assets as non-current.

A liability is treated as current when:

i. It is expected to be settled in normal operating cycle;

ii. It is held primarily for the purpose of trading;

iii. It is due to be settled within twelve months after the reporting period; or

iv. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are considered as non-current assets and liabilities.

Operating Cycle

The operating cycle is the time between acquisition of assets for processing and their realization cash and cash equivalents. The Company has identified twelve month as its operating cycle.

2.2 Use of Estimates:

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of Future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/ materialised.

The said estimates are based on the facts and events, that existed as at reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

3.3 Foreign Currencies:

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates ("the Functional Currency") The Financial statements are presented in Indian Rupee (INR), which is the company''s functional and presentation currency.

Transactions in foreign currencies are initially recorded in by the Company at spot rates at the functional currency spot rate (i.e. INR) at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The gain or loss arising on translation of nonmonetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e. translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

3.4 FAIR VALUE MEASUREMENT :

The Company measures financial instruments, such as derivatives at fair value at each Balance Sheet date.

Fair value is the price that would be received to sale an asset or paid to transfer aliability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

- Level 1-Quoted (unadjusted) market prices in active markets for identical assets or liabilities

- Level 2-Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

- Level 3-Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

3.5 Property, plant and equipment:

On the date of transaction, the Company has elected to continue with the previous GAAP''s carrying amount as deemed cost to measure all the items of property, plant and equipment. Property, plant and equipment are stated at cost, net of recoverable taxes less accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price and borrowing costs if capitalisation criteria are met, the cost of replacing part of the fixed assets and directly attributable cost of bringing the asset to its working condition for the intended use. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. This applies mainly to components for machinery. When significantly parts of fixed assets are required to be replaced at intervals, the company recognises such parts as individual assets with specific useful lives and depreciates them accordingly. Likewise, when a major overhauling is performed, its cost is recognised in the carrying amount of the Property, plant and equipment as a replacement if the recognition criteria are satisfied. Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure related to an item of Property, plant and equipment is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing Property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of parts replaced, are charged to the statement of Profit and Loss for the period during which such expenses are incurred.

Capital work in progress comprised of cost of Property, plant and equipment that are yet not installed and not ready for their intended use at the balance sheet date.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if applicable. The Company calculates depreciation on items of property, plant and equipment on a straight-line basis using the rates arrived at based on the useful lives defined under Schedule II of the Companies Act 2013.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss when the asset is derecognised.

3.6 Intangible assets:

Intangible assets acquired separately are measured on initial recognition at cost.

Following initial recognition, intangible assets are carried at cost, less any accumulated amortisation and accumulated impairment losses, if any.

Intangible assets in the form of software are amortised on a straight-line basis six years. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the Statement of Profit and Loss.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is derecognised.

3.7 Impairment of non-financial assets:

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash generating unit''s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

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. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.

3.8 Investment and other Financial Assets:

Financial assets are recognized and measured in accordance with Ind AS - 109 Financial Instruments. Accordingly, the company recognizes financial asset only when it has contractual right to receive cash or other financial assets from another Company.

i. Initial recognition and measurement

All financial assets, except investment in subsidiary are measured initially at fair value plus, transaction costs that are attributable to the acquisition of the financial asset. The transaction cost incurred for the purchase of financial assets held at fair value through profit or loss are expended in the statement of Profit and Loss immediately.

ii. Subsequent measurement:

For the purpose of Subsequent measurement financial assets are classified in three categories:

- Measured at amortised cost

- Measured at fair value through other comprehensive income (FVOCI)

- Measured at fair value through Profit and Loss (FVTPL)

Debt instruments at amortised cost:

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Financial assets are accounted for at amortized cost using the effective interest method. This category comprises trade accounts receivable,loans,cash and cash equivalents, bank balances and other financial assets. Again or loss on a debt instrument that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in the Statement of Profit and Loss when the asset is derecognized or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

Debt instrumentsat fair value through other comprehensive income (FVOCI):

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets cash flows represent solely payments of principal and interest, are measured at fair value through Other Comprehensive Income (FVOCI). The movement in carrying amount are taken through Other Comprehensive Income, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in the Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive Income is reclassified from equity to the Statement of Profit and Loss and recognized in other gains/(losses). Interest income from these financial assets is included in finance income using the effective interest rate method.

Debt instrumentsat fair value through Profit and Loss (FVTPL):

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorisation at amortized cost or FVTOCI, is classified as at FVTPL. Debt instruments included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss.

Equity investments:

All equity investments, except in subsidiary are measured at cost in scope of Ind AS 109 are measured at fair value. For all other equity instruments, the company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The _company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the company decides to classify an equity instruments as a FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in other comprehensive income(OCI). There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on sale of Investment. However, the company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss.

iii. Derecognition:

A financial asset (or, where applicable, a part of financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the company''s Balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The company has transferred substantially all the risks and rewards of the asset

iv. Impairment of financial assets:

In accordance with Ind AS 109, the company applies expected credit loss(ECL) model for measurement and recognition of impairment loss on the following financial assets and credit exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g. loans, debt securities, deposits, trade receivables and bank balance.

b) Financial guarantee contracts which are not measured at FVTPL.

The company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables. Under the simplified approach, the company does not track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used.

ECL is the difference between all contractual cash flows that are due to the company in accordance with the contract and all the cash flows that the entity expects to receive, discounted at the original EIR. ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/expense in the statement of profit and Loss. This amount is reflected under the head'' other expenses'' in the Statement of Profit and loss.

3.9 Financial liabilities:

Initial recognition and measurement:

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through statement of Profit and Loss, loans and borrowing, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The company''s financial liabilities include trade and other payables, loans and borrowings including cash credit facilities from banks and derivative financial instruments.

Subsequent measurement:

The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through Statement of Profit and loss.

Financial liabilities at fair value through profit and loss include financial liabilities held for trading and financial liabilities designated upon initial recognition at fair value through Profit and loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivatives financial instruments entered into by the company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109.

Gains or losses on liabilities held for trading are recognised in the Statement of Profit and loss. Financial liabilities designated upon initial recognition at fair value through statement of profit and loss are designated as such at the initial date of recognitionand only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risk are recognised in OCI. These gains/losses are not subsequently transferred to P&L. However, the company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit and loss. The company has not designated any financial liability at FVTPL.

Loans and Borrowings:

Company does not have any long term borrowings from any banks and finacial institution, so measurement at amortised cost method is not applicable to the company. Company recognise all the working capital borrowings at the actual rate of borrowing. All expenditures relating to interest, charges and processing fees recorded as finance cost in statement of profit and loss. Derecognition :

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of Profit and loss.

Derivative financial instrument:

The Company uses derivative financial instruments, such as forward currency contracts, to hedge its foreign currency risks. Such derivative financial instrument is initially recognized at fair value through consolidated statement of Profit and loss (FVTPL) on the date on which a derivative contract is entered into and is subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivative financial instrument are classified in the consolidated statement of Profit and loss and reported with foreign exchange gains/(loss) not within results from operating activities. Changes in fair value and gains/(losses) on settlement of foreign currency derivative financial instruments relating to borrowings, which have not been designed as hedge are recorded as finance cost.

Offsetting of financial instruments:

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to relate the assets and settle the liabilities simultaneously.

3.10 Inventories:

Finished goods and Work-in-process are stated at the lower of cost and estimated net realizable value. Cost of inventories constitutes direct materials and labor and a proportion of manufacturing overheads based on normal operating capacity.

Raw materials, components, stores and spares are valued at lower of cost and estimated net realizable value. Cost is determined on weighted average basis. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold are at or above cost.

Traded goods are valued at lower of cost and net realizable value. Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on a weighted average basis.

Provision is recognized for damaged, defective or obsolete stocks where necessary. Cost of all inventories is determined using weighted average method of valuation.

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

While in above head (Invetories) may also contains details of Investment in subsidiary and Joint Venture details of Property Plant & Equipments, Capital Work in Progress, Provisions & Contingent Liabilities

3.11 Revenue recognition:

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The company has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks. Excise Duty is a liability of the manufacturer, irrespective of whether the goods are sold or not. Since the recovery of excise duty flows to the company on its own account, revenue includes excise duty.

However, sales tax/value added tax (VAT)/Goods and Service Tax (GST) is not received by the company on its account. Rather, it is tax collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue.

The specific recognition criteria described below must also be met before revenue is recognized. Sale of Goods:

i. Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of goods. Revenue from sale of goods is measured at the fair value of the consideration received or receivable, net of trade discounts & other taxes, adjustments for late delivery charges and material returned/rejected.

ii. The company accounts for pro forma credits, refunds of duty of customs or excise, or refunds of sales tax in the years of admission of such claims by the concerned authorities. Benefits in respect of export license are recognised on application. Export benefits are accounted for as other operating income in the year of export based on eligibility and when there is no uncertainty on receiving the same.

iii. Interest income is recognized on time proportion basis taking into account the amount outstanding and the rates applicable. Interest income is included under the head "other income" in the statement of Profit & Loss.

iv. Revenue from windmill is recognised on unit generation basis.

3.12 Taxes:

Tax expense comprises of current income tax and deferred tax.

Current income tax:

Current income tax relating to items recognised outside the statement of Profit and Loss is recognised outside the statement of Profit and Loss (either in other comprehensive income or in equity).Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provision where appropriate.

Deferred income tax

Deferred income tax is provided using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purpose at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except. y When the Deferred tax liability arises from the initial recognition of goodwill or an asset or liability

in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit or loss; y In respect of taxable temporary differences associated with investments in subsidiaries, when the timing of the reversal of the temporary differences can be controlled and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent it is probable that future taxable amounts will be available against the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised except:

- When the deferred tax asset arises relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit or loss.

- In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

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 relating to items recognised outside the statement of Profit and Loss is recognised outside the statement of Profit and Loss. Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

The Company recognizes tax credits in the nature of MAT credit as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e. the period for which tax credit is allowed to be carried forward. In the year in which the Company recognizes tax credits as an asset, the said asset is created by way of tax credit to the Statement of profit and loss. The Company reviews such tax credit asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period. Deferred tax includes MAT tax credit.

3.13 Employee benefits:

I. Defined Contribution Plan a. Provident Fund

Contributions in respect of Employees who are not covered by Company''s Employees Provident fund trust are made to the Fund administered by the Regional Provident Fund Commissioner as per the provisions of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952 and are charged to Statement of profit and Loss as and when services are rendered by employees. The Company has no obligation other than the contribution payable to the Regional provident fund.

II. Defined Benefit plan

a. Gratuity

Every employee who has completed five years or more of service is entitled to Gratuity as per the provisions of The Payment of Gratuity Act, 1972. Retirement Gratuity for employees is funded through a scheme of Life Insurance Corporation of India. The costs of providing benefits under this plan are determined on the basis of actuarial valuation using the projected unit credit method at each year-end. Actuarial gains/ losses are immediately recognised in retained earnings through Other Comprehensive Income in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods. The excess/ shortfall in the fair value of the plan assets over the present value of the obligation calculated as per actuarial methods as at balance sheet dates is recognised as a gain/ loss in the Statement of Profit and loss. Any asset arising out of this calculation is limited to the past service cost plus the present value of available refunds and reduction in future contributions.

b. Provident Fund

In respect of the employees covered by the Company''s Employee provident Fund trust in Point I a above, contributions to the Company''s Employee provident Fund trust (administered by the Company as per the provisions of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952) are made in accordance with the fund rules. The interest rate payable to the beneficiaries every year is being notified by the Government.

In the case of contribution to the Trust, the Company has an obligation to make good the shortfall, if any between the return from the investments of the Trust and the notified interest rate and recognizes such obligation, if any determined based on an actuarial valuation as at the balance sheet date, as an expense.

III. Long Term Compensated Absences

The Company treats accumulated leave to the extent such leave are carried forward as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/ losses are immediately taken to the statement of profit and loss and are not deferred. The Company presents the leave as a current liability in the balance sheet to the extent it does not have an unconditional right to defer its settlement for 12 months after the reporting date. Where Company has the unconditional legal and contractual right to defer the settlement for a period beyond 12 months, the same is presented as non-current liability.

3.14 Provisions:

Provisions are recognized 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 benefit will be required to settle the obligation and a reliable Estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain, the expense relating to a provision is presented in the consolidated statement of Profit and loss net of any reimbursement.

3.15 Export Incentive.

Export incentives under various schemes notified by government are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

Earnings per share:

Basic Earnings per Share is calculated by dividing the net profit/ loss for the year attributable to ordinary equity holders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit/ loss for the period attributable to ordinary equity holders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares, if any.

3.16 Cash and cash equivalent:

Cash and cash equivalent in the Balance Sheet comprise cash at banks and in hand and shortterm deposits with an original maturity of three months or less, which are subject to an insignificant risk of charges in value.

For the purpose of the Statement of Cash Flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

4. Significant accounting estimates and assumptions:

The preparation of the company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosures of contingent liabilities. Uncertainty about these assumption and estimates could result in outcomes that require a material adjustments to the carrying amount of assets or liabilities affected in future periods.

4.1 Estimates and assumptions:

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are describes below. The Company based its assumptions and estimates on parameters available when the Financial Statements were prepared. Existing circumstances and assumptions about future developments, however may change due to market changes or circumstances arising that are beyond the control of the company. Such changes are reflected in the assumptions when they occur.

a) Defined benefit plans(gratuity benefits):

The cost of the defined benefits gratuity plan and the present value of the gratuity obligation are determined using actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rates, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rates for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation. The mortality rate is based on publically available mortality tables for India. These mortality tables tend to change only at intervals in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for India.

Future details about gratuity obligations are given in note- 30

b) Fair value measurement for financial instruments.

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. Refer note- 33 for further disclosures.

4.2 Changes in Accounting Standards and other recent accounting pronouncements Amendment to Ind AS 12 ''Income Taxes'': On March 30, 2019, the Ministry of Corporate Affairs has notified limited amendments to Ind AS 12 ''Income Taxes''. The amendments require an entity to recognise the income tax consequences of dividends as defined in Ind AS 109 when it recognises a liability to pay a dividend. The income tax consequences of dividends are linked more directly to past transactions or events that generated distributable profits than to distributions to owners. Therefore, an entity shall recognize the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognised those past transactions or events. The amendment will come into force for accounting periods beginning on or after April 1, 2019. The Company is evaluating the effect of the above in the financial statements.

Appendix C to Ind AS 12, Uncertainty over Income Tax Treatments: On March 30, 2019, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2019 containing Appendix C to Ind AS 12, Uncertainty over Income Tax Treatments which clarifies the application and measurement requirements in Ind AS 12 when there is uncertainty over income tax treatments. The current and deferred tax asset or liability shall be recognized and measured by applying the requirements in Ind AS 12 based on the taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates determined by applying this appendix. The amendment is effective for annual periods beginning on or after April 1, 2019. The Company is evaluating the effect of the above in the financial statements.

Amendment to Ind AS 19 ''Employee Benefits'': On March 30, 2019, the Ministry of Corporate Affairs has notified limited amendments to Ind AS 19 ''Employee Benefits'' in connection with accounting for plan amendments, curtailments and settlements. The amendments require an entity to use updated assumptions to determine current service cost and net interest for the remainder of the period after a plan amendment, curtailment or settlement and to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in a surplus, even if that surplus was not previously recognised because of the impact of the asset ceiling. The amendment will come into force for accounting periods beginning on or after April 1, 2019. The Company is evaluating the effect of the above in the financial statements.

Mar 31, 2018

1 Summary of significant accounting policies

1.1 Current versus non-current classification:

The Company presents assets and liabilities in the Balance Sheet based on current/non current classification.

An asset is treated as current when it is:

i. Expected to be realised or intended to sold or consumed in normal operating cycle;

ii. Held primarily for the purpose of trading;

iii. Expected to be realised within twelve months after the reporting period; or

iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

i. It is expected to be settled in normal operating cycle;

ii. It is held primarily for the purpose of trading;

iii. It is due to be settled within twelve months after the reporting period; or

iv. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are considered as non-current assets and liabilities.

Operating Cycle

The operating cycle is the time between acquisition of assets for processing and their realization cash and cash equivalents. The Company has identified twelve month as its operating cycle.

2.2 Use of Estimates:

The estimates and judgements used in the preparation of the financial statements _are continuously evaluated by the Company and are based on historical experience and svarious other assumptions and factors (including expectations of Future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/ materialised.

3.3 Foreign Currencies:

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates ("the Functional Currencyâ) The Financial statements are presented in Indian Rupee (INR), which is the company''s functional and presentation currency.

Foreign exchange gains and losses resulting from the settlement of transactions in foreign currencies and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e. translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

3.4 FAIR VALUE MEASUREMENT :

The Company measures financial instruments, such as derivatives at fair value at each Balance Sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer aliability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

- Level 1-Quoted (unadjusted) market prices in active markets for identical assets or liabilities

- Level 2-Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

- Level 3-Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

3.5 Property, plant and equipment:

Subsequent expenditure related to an item of Property, plant and equipment is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing Property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of parts replaced, are charged to the statement of Profit and Loss for the period during which such expenses are incurred.

The company adjusts exchange differences arising on translation/settlement of long-term foreign currency monetary items, outstanding in the Indian GAAP financial statements for the period ending immediately before the beginning of the first IND AS financial statements i.e.31st March, 2017 and pertaining to the acquisition of a depreciable asset, to the cost of the asset and depreciates the same over the remaining life of the asset.

Capital work in progress comprised of cost of Property, plant and equipment that are yet not installed and not ready for their intended use at the balance sheet date.

3.6 Intangible assets:

Intangible assets acquired separately are measured on initial recognition at cost.

Following initial recognition, intangible assets are carried at cost, less any accumulated amortisation and accumulated impairment losses, if any.

3.7 Impairment of non-financial assets:

3.8 Investment and other Financial Assets:

i. Initial recognition and measurement

ii. Subsequent measurement:

For the purpose of Subsequent measurement financial assets are classified in three categories:

- Measured at amortised cost

- Measured at fair value through other comprehensive income (FVOCI)

- Measured at fair value through Profit and Loss (FVTPL)

Debt instruments at amortised cost:

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Financial assets are accounted for at amortized cost using the effective interest method. This category comprises trade accounts receivable, loans, cash and cash equivalents, bank balances and other financial assets. Again or loss on a debt instrument that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in the Statement of Profit and Loss when the asset is derecognized or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

Debt instrumentsat fair value through other comprehensive income (FVOCI):

Debt instruments at fair value through Profit and Loss (FVTPL):

Equity investments:

All equity investments, except in subsidiary are measured at cost in scope of Ind AS 109 are measured at fair value. For all other equity instruments, the company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss.

iii. Derecognition:

A financial asset (or, where applicable, a part of financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the company''s Balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The company has transferred substantially all the risks and rewards of the asset

iv. Impairment of financial assets:

In accordance with Ind AS 109, the company applies expected credit loss(ECL) model for measurement and recognition of impairment loss on the following financial assets and credit exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g. loans, debt securities, deposits, trade receivables and bank balance.

b) Financial guarantee contracts which are not measured at FVTPL.

3.9 Financial liabilities:

Initial recognition and measurement:

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The company''s financial liabilities include trade and other payables, loans and borrowings including cash credit facilities from banks and derivative financial instruments.

Subsequent measurement:

The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through Statement of Profit and loss.

Gains or losses on liabilities held for trading are recognised in the Statement of Profit and loss.

Financial liabilities designated upon initial recognition at fair value through statement of profit and loss are designated as such at the initial date of recognition and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risk are recognised in OCI. These gains/losses are not subsequently transferred to P&L. However, the company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit and loss. The company has not designated any financial liability at FVTPL.

Loans and Borrowings:

Company does not have any long term borrowings from any banks and financial institution, so measurement at amortised cost method is not applicable to the company. Company recognise all the working capital borrowings at the actual rate of borrowing. All expenditures relating to interest, charges and processing fees recorded as finance cost in statement of profit and loss.

This category generally applies to borrowings.

Financial guarantee contracts:

Financial guarantee contracts issued by the company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value through statement of profit and loss(FVTPL),adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

Derecognition :

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of Profit and loss.

Derivative financial instrument:

Offsetting of financial instruments:

3.10 Inventories:

Provision is recognized for damaged, defective or obsolete stocks where necessary. Cost of all inventories is determined using weighted average method of valuation.

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

3.11 Revenue recognition:

The specific recognition criteria described below must also be met before revenue is recognized.

Sale of Goods:

iv. Revenue from windmill is recognised on unit generation basis.

3.12 Taxes:

Tax expense comprises of current income tax and deferred tax.

Current income tax:

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognised outside the statement of Profit and Loss is recognised outside the statement of Profit and Loss (either in other comprehensive income or in equity).Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provision where appropriate.

Deferred income tax

Deferred tax liabilities are recognized for all taxable temporary differences, except.

- When the Deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit or loss;

- In respect of taxable temporary differences associated with investments in subsidiaries, when the timing of the reversal of the temporary differences can be controlled and it is probable that the differences will not reverse in the foreseeable future.

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 of the deferred tax assets is to be utilised. Unrecognized 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.

3.13 Employee benefits:

I. Defined Contribution Plan

a. Provident Fund

II. Defined Benefit plan

a. Gratuity

Every employee who has completed five years or more of service is entitled to Gratuity as per the provisions of The Payment of Gratuity Act, 1972. Retirement Gratuity for employees is funded through a scheme of Life Insurance Corporation of India. The costs of providing benefits under this plan are determined on the basis of actuarial valuation using the projected unit credit method at each year-end. Actuarial gains/ losses are immediately recognised in retained earnings through Other Comprehensive Income in the period in which they occur. Re-measurements are not re-classified to profit or loss in subsequent periods. The excess/ shortfall in the fair value of the plan assets over the present value of the obligation calculated as per actuarial methods as at balance sheet dates is recognised as a gain/ loss in the Statement of Profit and loss. Any asset arising out of this calculation is limited to the past service cost plus the present value of available refunds and reduction in future contributions.

b. Provident Fund

III. Long Term Compensated Absences

3.14 Provisions:

3.15 Export Incentive.

Export incentives under various schemes notified by government are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

3.16 Earnings per share:

3.17 Cash and cash equivalent:

Cash and cash equivalent in the Balance Sheet comprise cash at banks and in hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of charges in value.

4 Significant accounting estimates and assumptions:

Estimates and assumptions:

a) Defined benefit plans(gratuity benefits):

The mortality rate is based on publically available mortality tables for India. These mortality tables tend to change only at intervals in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for India. Future details about gratuity obligations are given in note- 30

b) Fair value measurement for financial instruments.

Mar 31, 2017

A) Basis of Preparation:

These financial statements have been prepared in accordance with accounting principles Generally Accepted in India (Indian GAAP) the accounting standard notified under the relevant provisions of the Companies Act, 2013. The Financial Statements are prepared on accrual basis under the historical cost convention, accept for certain Fixed Assets which are carried at revalued amounts and other claims / refunds, which due to uncertainty in realization are accounted for on actual receipt basis.

B) USE OF ESTIMATES:

The preparation of financial statements in conformity with Indian GAAP requires judgments, 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. Differences between actual results and estimates are recognized in the period in which the results are known/materialized.

C) Fixed Assets and Depreciation:

(i) Fixed Assets:

Fixed assets are stated at cost of acquisition (net of CENVAT, wherever applicable), less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use. Direct costs are capitalized till the assets are ready to be put to use. Interest on borrowings, wherever applicable, attributable to new projects is capitalized and included in the cost of fixed assets as appropriate.

(ii)Depreciation:

Depreciation on fixed assets is charged on the Straight Line Method at rates arrived at after considering useful life of the assets specified in Part-C of Schedule - II of the Companies Act, 2013.

Depreciation on sale /deduction from Fixed Assets is provided for up to the month of sale, deduction, discarded as the case may be.

D) Borrowing Costs:

Borrowing cost attributable to acquisition, construction or production of qualifying assets are capitalised as part of the cost of that asset, till the asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

E) Inventories:

a) Raw Materials: Valued at Cost or Market prince whichever is lower.

b) Work-in-Progress is valued at Valued at Cost or Market prince whichever is lower.

c) Finished goods are valued at Valued at Cost or Market prince whichever is lower.

d) Stores and Spares are valued at cost or market value whichever is lower basis.

e) Scrap is valued at estimated realizable value.

F) Revenue Recognition:

(a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The company collects sales tax and value added tax (VAT) on behalf of Government and therefore these are not economic benefit flowing to the company. Hence they are excluded from revenue.

(b) Sales:

Sales of goods is recognized on transfer of significant risks and rewards of ownership which is generally on the dispatch of goods.

Export incentives under the "Duty Entitlement pass Book Scheme", "Duty Draw back Scheme", etc, is accounted in the year of export. However export incentive in form of MEIS is accounted for F.Y. 2015-16 and current financial year.

G) CENVAT Credit:

The CENVAT credit available on purchase of raw materials, other eligible inputs and capital goods is adjusted against excise duty payable on clearance of goods produced. The unadjusted CENVAT credit is shown under the head "Short-term Loans and Advances"

H) Employee Benefits:

(a) Provision for gratuity and leave encashment is made on the basis of actuarial valuation at the end of the year in conformity with the Accounting Standard - 15. Actuarial gains or losses are recognized in the profit and loss account.

(b) Contribution to Provident Fund and Superannuation is accounted for on accrual basis.

I) Foreign Exchange Transactions:

(a) Foreign currency transactions are recorded at the exchange rates prevailing on the date of the respective transactions. Monetary items denominated in foreign currencies at the year-end and not covered under forward exchange contracts are translated at year-end rate.

(b) Exchange differences arising on foreign currency transactions settled during the year are recognized in the profit and loss A/c except in respect of fixed assets where exchange variance is adjusted to the cost of the respective fixed assets.

J) Amortization of Miscellaneous Expenditure:

Preliminary expenses & Amalgamation expenses have been amortized over a period of five years in equal installments.

K) Income Tax Expenses:

- Income tax expenses comprise current tax and deferred tax charge or credit.

- Current Tax

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company.

- Deferred tax

Deferred Tax charge or credit reflects the tax effects of timing differences between accounting Income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the Balance Sheet date as per the Accounting Standard - 22.

L) Impairment of assets:

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

M) Prior Period Adjustment :

Expenses pertaining to earlier/previous years are accounted as prior period expense.

N) Earning Per Share:

In determining earning per share, the company considers the net profit after tax and includes the post-tax effect of any extra ordinary items. The number of shares used in computing basic earning per shares is the weighted average number of shares outstanding during the period.

O) Provisions, Contingent Liabilities and Contingent Assets:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of that obligation. Contingent Liabilities which are considered significant and material by the company are disclosed in the Notes to Accounts. Contingent Assets are neither recognized nor disclosed.

Mar 31, 2016

I. Significant Accounting Policies:

A) Basis of Preparation:

B) USE OF ESTIMATES:

C) Fixed Assets and Depreciation:

(i) Fixed Assets:

(ii) Depreciation:

Depreciation on fixed assets is charged on the Straight Line Method at rates arrived at after considering useful life of the assets specified in Part-C of Schedule - II of the Companies Act, 2013.

Depreciation on Plant & Machinery of the Company is charged for Double Shift.

Depreciation on sale /deduction from Fixed Assets is provided for up to the month of sale, deduction, discarded as the case may be.

D) Borrowing Costs:

E) Inventories:

a) Raw Materials: Valued at Market Value.

b) Work-in-Progress is valued at ordered value for which it is being executed.

c) Finished goods are valued at billing price.

d) Stores and Spares are valued at cost or market value whichever is lower basis.

e) Scrap is valued at estimated realizable value.

F) Revenue Recognition:

(b) Sales:

Sales of goods is recognized on transfer of significant risks and rewards of ownership which is generally on the dispatch of goods.

"Export incentives under the" "Duty Entitlement pass Book Scheme", "Duty Draw back Scheme", etc, is accounted in the year of export."

(d) Sale of Shares:

Sales and purchase of shares are accounted net of expenses charged such as stamp duty, service tax, STT etc.

G) CENVAT Credit:

H) Employee Benefits:

(b) Contribution to Provident Fund and Superannuation is accounted for on accrual basis.

I) Foreign Exchange Transactions:

J) Amortization of Miscellaneous Expenditure:

Preliminary expenses & Amalgamation expenses have been amortized over a period of five years in equal installments.

K) Income Tax Expenses:

- Income tax expenses comprise current tax and deferred tax charge or credit.

- Current Tax

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company.

- Deferred tax

L) Impairment of assets:

M) Prior Period Adjustment :

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

N) Earnings Per Share:

O) Provisions, Contingent Liabilities and Contingent Assts:

The above amounts are based on the notices of demand or the assessment orders or notification by the relevant authorities, as the case may be, and the company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the company''s rights for future appeals before the Judiciary.

Mar 31, 2015

A) Basis of Preparation:

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the national Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211 (3C) of Companies Act, 1956 (Companies (Accounting Standards) Rules,2006 as amended) and other relevant provisions of the Companies Act,2013.

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. Differences between actual results and estimates are recognized in the period in which the results are known/materialised

C) Fixed Assets and Depreciation:

(i) Fixed Assets:

Fixed assets are stated at cost of acquisition (net of CENVAT, wherever applicable), less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use. Direct costs are capitalized till the assets are ready to be put to use. Interest on borrowings, wherever applicable, attributable to new projects is capitalized and included in the cost of fixed assets as appropriate.

(ii) Depreciation:

Depreciation on fixed assets is charged on the Straight Line Method at rates arrived at after considering useful life of the assets specified in Part-C of Schedule - II of the Companies Act, 2013.

Depreciation on Plant & Machinery of the Company is charged for Double Shift.

Depreciation on sale /deduction from Fixed Assets is provided for up to the month of sale, deduction, discarded as the case may be.

D) Borrowing Costs:

Borrowing cost attributable to acquisition, construction or production of qualifying assets are capitalised as part of the cost of that asset, till the asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

E) Inventories:

a) Raw Materials: Valued at cost or Market Value which ever is Lower.

b) Work-in-Progress is valued at cost plus direct cost, manufacturing overheads and other related cost or market value whichever is lower.

c) Finished goods are valued at cost or net realizable value whichever is lower. The cost includes cost of production and other appropriate overheads.

d) Goods in Transits: At Cost.

e) Stores and Spares are valued at cost or market value whichever is lower basis.

f) Scrap is valued at estimated realisable value.

g) Share Stock is valued at cost or market value whichever is lower basis.

F) Revenue Recognition:

(a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The company collects sales tax and value added tax (VAT) on behalf of Government and therefore these are not economic benefit flowing to the company. Hence they are excluded from revenue.

(b) Sales:

Sales of goods is recognized on transfer of significant risks and rewards of ownership which is generally on the dispatch of goods.

(c) Export Benefits :

"Export incentives under the" "Duty Entitlement pass Book Scheme", "Duty Draw back Scheme", etc, is accounted in the year of export."

(d) Sale of Shares:

Sales and purchase of shares are accounted net of expenses charged such as stamp duty, service tax, STT etc.

G) CENVAT Credit:

The CENVAT credit available on purchase of raw materials, other eligible inputs and capital goods is adjusted against excise duty payable on clearance of goods produced. The unadjusted CENVAT credit is shown under the head "Short-term Loans and Advances"

H) Employee Benefits:

a) Provision for gratuity and leave encashment is made on the basis of actuarial valuation at the end of the year in conformity with the Accounting Standard -15. Actuarial gains or losses are recognized in the profit and loss account.

b) Contribution to Provident Fund and Superannuation is accounted for on accrual basis.

I) Foreign Exchange Transactions:

(a) Foreign currency transactions are recorded at the exchange rates prevailing on the date of the respective transactions. Monetary items denominated in foreign currencies at the year-end and not covered under forward exchange contracts are translated at year-end rate.

(b) Exchange differences arising on foreign currency transactions settled during the year are recognized in the profit and loss A/c except in respect of fixed assets where exchange variance is adjusted to the cost of the respective fixed assets.

J) Amortization of Miscellaneous Expenditure:

Preliminary expenses & Amalgamation expenses have been amortized over a period of five years in equal installments.

K) Income Tax Expenses:

- Income tax expenses comprise current tax and deferred tax charge or credit.

- Current Tax

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company.

- Deferred tax

Deferred Tax charge or credit reflects the tax effects of timing differences between accounting Income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the Balance Sheet date as per the Accounting Standard - 22.

L) Impairment of assets:

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

M) Prior Period Adjustment:

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

N) Earning Per Share:

In determining earning per share, the company considers the net profit after tax and includes the post-tax effect of any extra ordinary items. The number of shares used in computing basic earning per shares is the weighted average number of shares outstanding during the period.

O) Provisions, Contingent Liabilities and Contingent Assts:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of that obligation. Contingent Liabilities which are considered significant and material by the company are disclosed in the Notes to Accounts. Contingent Assets are neither recognized nor disclosed.

Mar 31, 2014

A) Basis of Preparation :

The financial statements of Suraj Limited ("the Company") have been prepared under the historical cost convention on accrual basis of accounting in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and mandatory accounting standards as specified in the Companies (Accounting Standards) Rules, 2006, to the extent applicable and relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of product and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current -non current classification of assets and liabilities.

B) Fixed Assets and Depreciation :

a) Fixed Assets :

Fixed assets are stated at cost of acquisition (net of CENVAT, wherever applicable), less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use. Direct costs are capitalized till the assets are ready to be put to use. Interest on borrowings, wherever applicable, attributable to new projects is capitalized and included in the cost of fixed assets as appropriate.

b) Depreciation :

Depreciation on fixed assets is charged on the Straight Line Method at the rates prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on Plant & Machinery of the Company is charged for Triple Shift.

Depreciation on sale /deduction from Fixed Assets is provided for up to the month of sale, deduction, discarded as the case may be.

C) Borrowing costs :

Borrowing cost attributable to acquisition, construction or production of qualifying assets are capitalised as part of the cost of that asset, till the asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

D) Inventories :

a) Raw Materials: Valued at cost or Market Value which ever is Lower.

b) Work-in-Progress is valued at cost plus direct cost, manufacturing overheads and other related cost or market value whichever is lower.

c) Finished goods are valued at cost or net realizable value whichever is lower. The cost includes cost of production and other appropriate overheads.

d) Goods in Transits: At Cost.

e) Stores and Spares are valued at cost or market value whichever is lower.

f) Scrap is valued at estimated realisable value.

E) Revenue Recognition :

(a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The company collects sales tax and value added tax (VAT) on behalf of Government and therefore these are not economic benefit flowing to the company. Hence they are excluded from revenue.

(b) Sales:

Sales of goods is recognized when the significant risks and rewards of ownership of goods have passed to buyer.

(c) Export Benefits :

Incomes in respect of Duty Drawback in respect of exports made during the year are accounted on accrual basis. Duty free imports of material under Advance License matched with the export made against the said licenses.

F) CENVAT Credit :

The CENVAT credit available on purchase of raw materials, other eligible inputs and capital goods is adjusted against excise duty payable on clearance of goods produced. The unadjusted CENVAT credit is shown under the head "Loans and Advances"

G) Employee Benefits :

(a) Provision for gratuity and leave encashment is made on the basis of actuarial valuation at the end of the year in conformity with the Accounting Standard - 15. Actuarial gains or losses are recognized in the profit and loss account.

(b) Contribution to Provident Fund and Superannuation is accounted for on accrual basis.

H) Foreign Exchange Transactions :

(a) Foreign currency transactions are recorded at the exchange rates prevailing on the date of the respective transactions. Monetary items denominated in foreign currencies at the year-end and not covered under forward exchange contracts are translated at year-end rate.

(b) Exchange differences arising on foreign currency transactions settled during the year are recognized in

the profit and loss A/c except in respect of fixed assets where exchange variance is adjusted to the cost

of the respective fixed assets.

I) Amortization of Miscellaneous Expenditure:

Preliminary expenses & Amalgamation expenses have been amortized over a period of five years in equal installments.

J) Income Tax Expenses:

- Income tax expenses comprise current tax and deferred tax charge or credit.

- Current Tax

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company.

- Deferred tax

Deferred Tax charge or credit reflects the tax effects of timing differences between accounting Income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the Balance Sheet date as per the Accounting Standard - 22.

K) Impairment of assets:

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

L) Prior Period Adjustment :

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

M) Earning Per Share:

In determining earning per share, the company considers the net profit after tax and includes the post- tax effect of any extra ordinary items. The number of shares used in computing basic earning per shares is the weighted average number of shares outstanding during the period.

N) Provisions, Contingent Liabilities and Contingent Assts:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of that obligation. Contingent Liabilities which are considered significant and material by the company are disclosed in the Notes to Accounts. Contingent Assets are neither recognized nor disclosed.

Mar 31, 2013

A) Basis of Preparation :

The financial statements of Suraj Limited ("the Company") have been prepared under the historical cost convention on accrual basis of accounting in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and mandatory accounting standards as specified in the Companies (Accounting Standards) Rules, 2006, to the extent applicable and relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of product and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current -non current classification of assets and liabilities.

B) Fixed Assets and Depreciation :

a) Fixed Assets :

Fixed assets are stated at cost of acquisition (net of CENVAT, wherever applicable), less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use. Direct costs are capitalized till the assets are ready to be put to use. Interest on borrowings, wherever applicable, attributable to new projects is capitalized and included in the cost of fixed assets as appropriate.

b) Depreciation :

Depreciation on fixed assets is charged on the Straight Line Method at the rates prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on Plant & Machinery of the Company is charged for Triple Shift.

Depreciation on sale /deduction from Fixed Assets is provided for up to the month of sale, deduction, discarded as the case may be.

C) Borrowing costs :

Borrowing cost attributable to acquisition, construction or production of qualifying assets are capitalised as part of the cost of that asset, till the asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

D) Inventories :

a) Raw Materials: Valued at cost or Market Value which ever is Lower.

b) Work-in-Progress is valued at cost plus direct cost, manufacturing overheads and other related cost or market value whichever is lower.

c) Finished goods are valued at cost or net realizable value whichever is lower. The cost includes cost of production and other appropriate overheads.

d) Goods in Transits: At Cost.

e) Stores and Spares are valued at cost or market value whichever is lower.

f) Scrap is valued at estimated realisable value.

E) Revenue Recognition :

a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The company collects sales tax and value added tax (VAT) on behalf of Government and therefore these are not economic benefit flowing to the company. Hence they are excluded from revenue.

b) Sales:

Sales of goods is recognized when the significant risks and rewards of ownership of goods have passed to buyer.

c) Export Benefits :

Incomes in respect of Duty Drawback in respect of exports made during the year are accounted on accrual basis. Duty free imports of material under Advance License matched with the export made against the said licenses.

F) CENVAT Credit :

The CENVAT credit available on purchase of raw materials, other eligible inputs and capital goods is adjusted against excise duty payable on clearance of goods produced. The unadjusted CENVAT credit is shown under the head "Loans and Advances"

G) Employee Benefits :

a) Provision for gratuity and leave encashment is made on the basis of actuarial valuation at the end of the year in conformity with the Accounting Standard - 15. Actuarial gains or losses are recognized in the profit and loss account.

b) Contribution to Provident Fund and Superannuation is accounted for on accrual basis.

H) Foreign Exchange Transactions :

a) Foreign currency transactions are recorded at the exchange rates prevailing on the date of the respective transactions. Monetary items denominated in foreign currencies at the year-end and not covered under forward exchange contracts are translated at year-end rate.

b) Exchange differences arising on foreign currency transactions settled during the year are recognized in the profit and loss A/c except in respect of fixed assets where exchange variance is adjusted to the cost of the respective fixed assets.

I) Amortization of Miscellaneous Expenditure:

Preliminary expenses & Amalgamation expenses have been amortized over a period of five years in equal installments.

J) Income Tax Expenses:

- Income tax expenses comprise current tax and deferred tax charge or credit.

- Current Tax

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company.

- Deferred tax

Deferred Tax charge or credit reflects the tax effects of timing differences between accounting Income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the Balance Sheet date as per the Accounting Standard - 22.

K) Impairment of assets:

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

L) Prior Period Adjustment :

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

M) Earning Per Share:

In determining earning per share, the company considers the net profit after tax and includes the post- tax effect of any extra ordinary items. The number of shares used in computing basic earning per shares is the weighted average number of shares outstanding during the period.

N) Provisions, Contingent Liabilities and Contingent Assts:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of that obligation. Contingent Liabilities which are considered significant and material by the company are disclosed in the Notes to Accounts. Contingent Assets are neither recognized nor disclosed.

Mar 31, 2012

A) Basis of Preparation

The financial statements of Suraj Limited ("the Company") have been prepared under the historical cost convention on accrual basis of accounting in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and mandatory accounting standards as specified in the Companies (Accounting Standards) Rules, 2006, to the extent applicable and relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of product and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current -non current classification of assets and liabilities.

B) Fixed Assets and Depreciation

(i) Fixed Assets

(ii) Depreciation

Depreciation on fixed assets is charged on the Straight Line Method at the rates prescribed in Schedule

XIV to the Companies Act, 1956. Depreciation on Plant & Machinery of the Company is charged for Triple Shift.

Depreciation on sale /deduction from Fixed Assets is provided for up to the month of sale, deduction, discarded as the case may be.

C) Borrowing costs

D) Inventories

a) Raw Materials: Valued at cost or Market Value which ever is Lower.

b) Work-in-Progress is valued at cost plus direct cost, manufacturing overheads and other related cost or market value whichever is lower.

c) Finished goods are valued at cost or net realizable value whichever is lower. The cost includes cost of production and other appropriate overheads.

d) Goods in Transits: At Cost.

e) Stores and Spares are valued at cost or market value whichever is lower.

f) Scrap is valued at estimated realisable value.

E) Revenue Recognition

(b) Sales:

Sales of goods is recognized when the significant risks and rewards of ownership of goods have passed to buyer.

Incomes in respect of Duty Drawback and Duty Entitlement Pass Book Scheme (DEPB) in respect of exports made during the year are accounted on accrual basis. Profit or losses on transfer of DEPB licenses are accounted in year of the sales. Duty free imports of material under Advance License matched with the export made against the said licenses.

F) CENVAT Credit

G) Employee Benefits

(b) Contribution to Provident Fund and Superannuation is accounted for on accrual basis.

H) Foreign Exchange Transactions

I) Amortization of Miscellaneous Expenditure

Preliminary expenses & Amalgamation expenses have been amortized over a period of five years in equal installments.

J) Income Tax Expenses

- Income tax expenses comprise current tax and deferred tax charge or credit.

- Current Tax

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company.

- Deferred tax

K) Impairment of assets

L) Prior Period Adjustment

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

M) Earning Per Share

In determining earning per share, the company considers the net profit after tax and includes the post- tax effect of any extra ordinary items. The number of shares used in computing basic earning per shares is the weighted average number of shares outstanding during the period.

N) Provisions, Contingent Liabilities and Contingent Assts

Mar 31, 2011

A) Basis of Preparation :

The financial statements of Suraj Limited ("the Company") have been prepared under the historical cost convention on accrual basis of accounting in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and mandatory accounting standards as specified in the Companies (Accounting Standards) Rules 2006, to the extent applicable and presentation requirements of the Companies Act, 1956

B) Fixed Assets :

(i) Fixed Assets :

(ii) Depreciation :

Depreciation on fixed assets is charged on the Straight Line Method at the rates prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on Plant & Machinery of the Company is charged for Triple Shift.

C) Borrowing costs :

D) Inventories :

a) Raw Materials: Valued at cost or Market Value which ever is Lower.

b) Work-in-Progress is valued at cost plus direct cost, manufacturing overheads and other related cost or maket value whichever is lower.

c) Finished goods are valued at cost or net realizable value whichever is lower. The cost includes cost of production and other appropriate overheads.

d) Goods in Transits : At Cost.

e) Stores and Spares are valued at cost or maket value whichever is lower.

f ) Scrap is valued at estimated realisable value.

E) Revenue Recognition :

Sales are recognised when goods are invoiced on dispatch to customers and sales (Gross) are recorded inclusive of excise & VAT, and realized exchange fluctuations on exports and net of Sales return/ Trade discount. if any, Export sales is recognized at the time of dispatch.

Export incentives are accounted on accrual basis and include the estimated value of export incentives receivable under the D.E.P.B scheme.

F) CENVAT Credit :

G) Employee Benefits :

(b) Contribution to Provident Fund and Superannuation is accounted for on accrual basis.

H) Foreign Exchange Transactions :

Foreign currency transactions are recorded at the exchange rates prevailing on the date of the respective transactions.

Exchange differences arising on foreign currency transactions settled during the year are recognized in the profit and loss A/c except in respect of fixed assets where exchange variance is adjusted to the cost of the respective fixed assets.

Monetary items denominated in foreign currencies at the year-end and not covered under forward exchange contracts are translated at year-end rate.

I) Export Benefits :

The Company accounts for Export Benefits under duty exemption Advance License Scheme of the Government of India, in the year of Export of Goods.

Further the export benefits for advance license during the year are adjusted to cost of Imported material and for pending advance licenses at the end of the year are accounted as stock in hand.

J) Amortization of Miscellaneous Expenditure :

Preliminary expenses has been amortized over a period of five years in equal installments.

K) Income Tax Expenses :

- Income tax expenses comprise current tax and deferred tax charge or credit.

- Current Tax

The current charge for income taxed is calculated in accordance with the relevant tax regulations applicable to the company.

- Deferred tax

L) Impairment of assets :

M) Prior Period Adjustment :

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

N) Earning Per Share :

In determining earning per share, the company considers the net profit after tax and includes the post- tax effect of any extra ordinary items. The number of shares used in computing basic earning per shares is the weighted average number of shares outstanding during the period.

O) Provisions and Contingent Liabilities and Contingent Assets :

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of that obligation. Contingent Liabilities which are considered significant and material by the company are disclosed in the Notes to Accounts.contingent Assets are neither recognized nor disclosed.

Mar 31, 2010

A) Preperation of Financial Statement

i) The financial statements are prepared under historical Cost convention on Accrual Basis in accordance with applicable accounting standard issued by the Institute of Chartered Accountants of India and on the basis of a going concern.

ii) The Company adopts accrual concept in preparation of accounts. Claims /refunds not ascertainable with reasonable certainty are accounted on final settlement. Leave Encashment is accounted as and when incurred and claimed.

B) Fixed Assets :

(i) Fixed Assets :

(ii) Depreciation :

C) Borrowing costs :

D) Inventories :

a) Raw Materials: Valued at cost or Market Value which ever is Lower.

b) Work-in-Progress is valued at cost plus direct cost, manufacturing overheads and other related cost.

c) Finished goods are valued at cost or net realizable value whichever is lower. The cost includes cost of production and other appropriate overheads.

d) Goods in Transits : At Cost.

e) Stores and Spares are valued at cost.

f ) Scrap is valued at estimated realisable value.

E) Revenue Recognition :

Sales are recognised when goods are invoiced on dispatch to customers and sales (Gross) are recorded inclusive of excise, value added tax and net of Sales return/ Trade discount. if any, Export sales is recognized at the time of dispatch

F) CENVAT Credit :

G) Employee Benefits :

(b) Contribution to Provident Fund and Superannuation is accounted for on accrual basis.

H) Foreign Exchange Transactions :

Foreign currency transactions are recorded at the exchange rates prevailing on the date of the respective transactions.

Exchange differences arising on foreign currency transactions settled during the year are recognized in the profit and loss A/c except in respect of fixed assets were exchange variance is adjusted to the cost of the respective fixed assets.

Monetary items denominated in foreign currencies at the year-end and not covered under forward exchange contracts are translated at year-end rate.

I) Export Benefits :

The Company accounts for Export Benefits under duty exemption Advance License Scheme of the Government of India, in the year of Export of Goods.

Further the export benefits for advance license during the year are adjusted to cost of Imported material and for pending advance licenses at the end of the year are accounted as stock in hand.

Income in respect of Duty Entitlement Passbook (DEPB) in respect of exports made during the period are accounted on accrual basis. Profit or Loss on transfer of DEPB Licenses are accounted in the year of sales.

J) Amortization of Miscellaneous Expenditure :

Preliminary expenses has been amortized over a period of five years in equal installments.

K) Income Tax Expenses :

- Income tax expenses comprise current tax and deferred tax charge or credit.

- Current Tax

- The current charge for income taxed is calculated in accordance with the relevant tax regulations applicable to the company.

- Deferred tax

L) Impairment of assets :

M) Prior Period Adjustment :

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

N) Earning Per Share :

In determining earning per share, the company considers the net profit after tax and includes the post- tax effect of any extra ordinary items. The number of shares used in computing basic earning per shares is the weighted average number of shares outstanding during the period.

O) Provisions and Contingent Liabilities and Contingent Assets :

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of that obligation. Contingent Liabilities which are considered significant and material by the company are disclosed in the Notes to Accounts.contingent Assets are neither recognized nor disclosed.

Mar 31, 2009

A) Preperation of Financial Statement

B) Fixed Assets:

(i) Fixed Assets:

(ii) Depreciation :

Depreciation on fixed assets is charged on the Straight Line Method at the rates prescribed in .Schedule XIV to the Companies Act, 1956. Depreciation on Plant & Machinery of the Company is charged for Triple Shift.

C) Borrowing costs:

D) Inventories:

a) Raw Materials: Valued at cost or Market value which ever is lower.

b) Work-in-Progress is valued at cost plus direct cost, manufacturing overheads and other related cost.

c) Finished goods are valued at cost or net realizable value whichever is lower. The cost includes cost of production and other appropriate overheads.

d) Goods in Transits : At Cost.

e) Stores and Spares are valued at cost.

f) Scrap is valued at estimated realisable value.

E) Revenue Recognition :

Sales are recognised when goods are invoiced on dispatch to customers and sales (Gross) are recorded inclusive of excise, value added tax and net of Sales return/ Trade discount, if any, Export sales is recognized at the time of dispatch.

F) CENVAT Credit:

G) Employee Benefits:

(b) Contribution to Provident Fund and Superannuation is accounted for on accrual basis.

H) Foreign Exchange Transactions :

Foreign currency transactions are recorded at the exchange rates prevailing on date of the respective transactions.

Monetary items denominated in foreign currencies at the year-end and not covered under forward exchange contracts are translated at year-end rate.

I) Export Benefits :

The Company accounts for Export Benefits under duty exemption Advance License Scheme of the Government of India, in the year of Export of Goods.

Further the export benefits for advance license during the year are adjusted to cost of Imported material and for pending advance licenses at the end of the year are accounted as stock in hand.

J) Amortization of Miscellaneous Expenditure :

Preliminary expenses has been amortized over a period of five years in equal installments.

K) Income Tax Expenses :

Income tax expenses comprise current tax and deferred tax charge or credit.

Current Tax

The current charge for income taxed is calculated in accordance with the relevant tax regulations applicable to the company.

Deferred tax

L) Impairment of assets :

M) Prior Period Adjustment:

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

N) Deferred Sales Tax :

The Company is eligible for sales tax deferment benefit under capital incentive scheme of 1995-2000 of state government. Sales tax collected on sales and eligible under the said scheme is accounted separately and shown in the group of current liabilities.

O) Earning Per Share :

In determining earning per share, the company considers the net profit after tax and includes the post- tax effect of any extra ordinary items. The number of shares used in computing basic earning per shares is the weighted average number of shares outstanding during the period.

Mar 31, 2008

A) Preperation of Financial Statement

B) Fixed Assets :

(i) Fixed Assets :

(ii) Depreciation :

C) Borrowing costs : t Borrowing cost attributable to acquisition, construction or production of qualifying assets are capitalised as part of the cost of that asset, till the asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

D) Inventories :

a) Raw Materials : Valued at Cost

b) Work-in-Progress is valued at cost plus direct cost, manufacturing overheads and other related cost.

c) Finished goods are valued at cost or net realizable value whichever is lower. The cost includes cost of production and other appropriate overheads.

d) Goods in Transits : At Cost.

e) Stores and Spares are valued at cost.

f) Scrap is valued at estimated realisable value.

E) Revenue Recognition :

Sales are recognised when goods are invoiced on dispatch to customers and are recorded inclusive of excise duty, value added tax and net of Sales return/ Trade discount, if any, Export sales is recognized at the time of dispatch.

F) Excise Duty on Finished Goods :

Excise duty on finished goods is being accounted for as and when the clearance is made from the factory and is shown separately as an expense in the Profit & Loss Account.

G) CENVAT Credit :

H) Retirement Benefits :

A) Gratuity :

The company has covered its gratuity liabilities with Life Insurance Corporation of India. The annual contribution are made based on actual valuation and charged off to revenue.

B) Leave Encashment :

Liability on account of Leave Encashment is provided to the extent encashable as at the end of Financial Year as per rules of the company.

C) Provident Fund :

The company contributes to the Employee Provident Fund maintained under the Employees Provident Fund scheme of the Central Government and the same is charged to Profit & Loss A/c.

I) Foreign Exchange Transactions :

Foreign currency transactions are recorded at the exchange rates prevailing on date of the respective transactions.

Monetary items denominated in foreign currencies at the year-end and not covered under forward exchange contracts are translated at year-end rate.

Further in respect of the forward contracts which have been entered in one accounting period and cancelled / renewed / exercised in the same accounting period, the difference between the forward rate on the date of cancellation as at the end of the contract is consistently recognized in the statement of profit and loss under the head Dollar Hedging Income.

J) Export Benefits :

The Company accounts for Export Benefits under duty exemption Advance License Scheme of the Government of India, in the year of Export of Goods.

Further the export benefits for advance license during the year are adjusted to cost of Imported material and for pending advance licenses at the end of the year are accounted as stock in hand.

K) Amortization of Miscellaneous Expenditure :

Preliminary expenses has been amortized over a period of five years in equal installments.

L) Income Tax Expenses :

Income tax expenses comprise current tax and deferred tax charge or credit.

Current Tax >

The current charge for income taxed is calculated in accordance with the relevant tax regulations applicable to the company.

Deferred tax Deferred Tax charge or credit reflects the tax effects of timing differences between accounting Income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the Balance Sheet date as per the Accounting Standard - 22.

M) Impairment of assets :

N) Prior Period Adjustment :

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

O) Deferred Sales Tax :

P) Earning Per Share :

Mar 31, 2007

A) Preperation of Financial Statement

B) Fixed Assets :

(i) Fixed Assets :

Fixed assets are stated at cost of acquisition (net of CENVATAnd VAT wherever applicable), less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use. Direct costs are capitalized till the assets are ready to put to use. Interest on borrowings, wherever applicable, attributable to new projects is capitalized and included in the cost of fixed assets as appropriate.

(ii) Depreciation :

C) Borrowing costs :

D) Inventories :

a) Raw Materials : Valued at Cost

b) Work-in-Progress is valued at cost plus direct cost, manufacturing overheads and other related cost.

c) Finished goods are valued at cost or net realizable value whichever is lower. The cost includes cost of production and other appropriate overheads.

d) Goods in Transits : At Cost.

e) Stores and Spares are valued at cost.

f) Scrap is valued at estimated realisable value.

E) Revenue Recognition :

F) Investments :

Long Term Investment are carried at cost.

G) Excise Duty on Finished Goods :

Excise duty on finished goods is being accounted for as and when the clearance is made from the factory and is shown separately as an expense in the Profit & Loss Account.

H) CENVAT Credit:

I) Retirement Benefits :

A) Gratuity:

The company has covered its gratuity liabilities with Life Insurance Corporation of India. The annual contribution are made based on actual valuation and charged off to revenue.

B) Leave Encashment :

Encashment of leave is at the discretion of management and is charged off to revenue in the year of payment and to that extent there is a contravention of Accounting Standard -15 which has become mandatory.

C) Provident Fund :

The company contributes to the Employee Provident Fund maintained under the Employees Provident Fund scheme of the Central Government and the same is charged to Profit & Loss A/c.

J) Foreign Exchange Transactions :

Foreign currency transactions are recorded at the exchange rates prevailing on date of the respective transactions.

Monetary items denominated in foreign currencies at the year end and not covered under forward exchange contracts are translated at year-end rate.

K) Export Benefits :

The Company accounts for Export Benefits under duty exemption Advance License Scheme of the Government of India, in the year of Export of Goods.

Further the export benefits for advance license during the year are adjusted to cost of Imported material and for pending advance licenses at the end of the year are accounted as stock in hand.

L) Amortization of Miscellaneous Expenditure :

Preliminary expenses has been amortized over a period of five years in equal installments.

M) Income Tax Expenses :

Income tax expenses comprise current tax and deferred tax charge or credit.

Current Tax

The current charge for income taxed is calculated in accordance with the relevant tax regulations applicable to the company.

Deferred tax

N) Impairment of assets :

O) Prior Period Adjustment:

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

P) Deferred Sales Tax :

Q) Earning Per Share :

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of that obligation except Non provision/Non Payment of interest tax liability of Rs.2,33,533/- for assessment year 1996-1997 and Rs.4,23,014/- for assessment year 1997-1998. Contingent Liabilities which are considered significant and material by the company are disclosed in the Notes to Accounts

Mar 31, 2006

A) Basis of Accounting :

i) The financial statements are prepared under historical Cost convention in accordance with applicable accounting standard issued by the Institute of Chartered Accountants of India and on the basis of a going concern.

ii) The Company adopts accrual concept in preparation of accounts. Claims/refunds not ascertainable with reasonable certainty are accounted on final settlement. Leave Encashment is accounted as and when incurred and claimed.

iii) Benefit on account of entitlement to import duty free raw materials under the advance license scheme is accounted for, in the year of export.

B) Fixed Assets :

(i) Fixed Assets :

Fixed assets are stated at cost of acquisition (net of CENVAT, wherever applicable), less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use. Direct costs are capitalized till the assets are ready to be put to use Interest on borrowings, wherever applicable, attributable to new projects is capitalized and included in the cost of fixed assets as appropriate

(ii) Capital work in progress :

Capital work in progress includes cost of assets at sites, construction expenditure, advances made for acquisition of capital assets and interest on the funds deployed.

(iii) Depreciation :

C) Borrowing costs :

D) Inventories :

a) Raw Materials : Valued at Cost (FIFO).

b) Work-in-Progress is valued at cost plus direct cost, manufacturing overheads and other related cost.

c) Finished goods are valued at cost or net realizable value whichever is lower. The cost includes cost of production and other appropriate overheads.

d) Goods in Transits : At Cost.

e) Stores and Spares are valued at cost,

f) Scrap is valued at estimated realisable value.

Revenue Recognition :

Sales are recognised when goods are invoiced on dispatch to customers and are recorded inclusive of excise duty, sales tax and net of Sales return/Trade discount, if any, Export sales is recognized at the time of dispatch.

F) Excise Duty on Finished Goods :

Excise duty on finished goods is being accounted for as and when the clearance is made from the factory and is shown separately as an expense in the Profit & Loss Account.

G) Retirement Benefits :

The company has covered its gratuity liabilities with Life Insurance Corporation of India. The annual contribution are made based on actual valuation and charged off to revenue. Encashment of leave is at the discretion of management and is charged off to revenue in the year of payment.

H) Foreign Exchange Transactions

Foreign currency transactions are recorded using the exchange rates prevailing on date of the respective transactions.

Exchange differences arising on foreign currency transactions settled during the year are recognized in the profit and loss as per the accounting standard-11.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at year-end rate.

I) Export Benefits :

The Company accounts for Export Benefits under duty exemption Advance License Scheme of the Government of India, in the year of Export of Goods.

Further the export benefits for advance license during the year are adjusted to cost of Imported material and for pending advance licenses at the end of the year are accounted as stock in hand.

J) Amortization of Miscellaneous Expenditure :

Preliminary expenses has been amortized over a period of ten years in equal installments.

K) Income-tax expenses:

- Income tax expenses comprises current tax and deferred tax charge or credit.

- Current Tax

The current charge for income taxed is calculated in accordance with the relevant tax regulations applicable to the company.

- Deferred Tax

Deferred Tax charge or credit reflects the tax effects of timing differences between accounting Income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the balalnce sheet date as per the Accounting Standard-22.

L) Impairment of assets :

M) Prior Period Adjustment :

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

N) Deferred Sales Tax :

Mar 31, 2005

A) Basis of Accounting :

I. The financial statements are prepared under historical Cost convention, in accordance with applicable accounting standard issued by the Institute of Chartered Accountants of India and on the basis of a going concern.

II. The Company adopts accrual concept in preparation of accounts. Claims/refunds not ascertainable with reasonable certainty are accounted on final settlement. Leave Encashment is accounted as and when incurred and claimed.

III. Benefit on account of entitlement to import duty free raw materials under the advance license scheme is estimated and accounted for, in the year of export.

B) Fixed Assets :

Fixed assets are stated at cost of acquisition less accumulated depreciation. Cost is inclusive of duties taxes, installation expenses etc. and net of cenvat, wherever applicable.

C) Depreciation :

D) Borrowing costs :

None of the borrowing costs incurred during the year are attributable to the acquisition of fixed assess Hence, reporting under AS 16 on borrowing cost does not arise.

E) Inventories :

a) Raw Materials : Valued at Cost (FIFO) -

b) Work-in-Process is valued at cost plus direct cost, manufacturing overheads and other related cost.

c) Finished goods are valued at cost or net realizable value whichever is lower. The cost includes cost of production and other appropriate overheads.

d) Traded Finished Goods : At Cost

e) Goods in Transits : At Cost.

f) Stores and Spares are valued at cost.

g) Scrap is valued at estimated realisable value.

F) Revenue Recognition :

G) Excise Duty on Finished Goods :

Excise duty on finished goods is being accounted for as and when the clearance is made from the factory and is shown separately as an expense in the Profit & Loss Account.

H) Retirement Benefits :

The company has covered its gratuity liabilities with Life Insurance Corporation of India. The annual contribution are made based on actuarial valuation and charged off to revenue. Encashment of leave is ai the discretion of management and is charged off to revenue in the year of payment.

I) Foreign Transactions :

Foreign currency transactions are recorded using the exchange rates prevailing on dates of the respective transactions.

Exchange differences arising on foreign currency transactions settled during the year are recognized in the profit and loss as per the accounting standard -11.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at year-end rates.

J) Export Benefits :

The Company accounts for Export Benefits under Advance License Scheme of the Government of India, in the year of Export Sales.

Further the export benefits for advance license during the year are adjusted to cost of Imported material and for pending advance licenses at the end of the year are accounted as stock in hand.

K) Amortization of Miscellaneous Expenditure :

Preliminary and Public Issue expenses has been amortized over a period of ten years in equal installments.

L) Income-tax expenses:

- Income tax expenses comprises current tax and deferred tax charge or credit.

- Current Tax

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the company.

Deferred Tax

Deterred Tax charge or credit reflects the tax effects of timing differences between accounting Income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the balance sheet date as per the Accounting Standard - 22.

M) Impairment of assets :

The accounting standard 28 on impairment of assets is applicable to the company from the current financial year. In view of this the company management has assessed all its fixed assets toa ascertain impairment if any, both as at 01.04.2004 to 31.03.2005. Based on the said exercise there no impairment of assets and therefore no effect of impairment is required to be given in the books of accounts.

N) Prior Period Adjustment :

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

O) Deferred Sales Tax :

Mar 31, 2003

A) Basis of Accounting :

i) The financial statements are prepared under historical Cost convention, in accordance with applicable accounting standard and on the basis of a going concern

iii) Benefit on account of entitlement to import duty free raw materials under the advance license scheme is estimated and accounted for in the year of export.

B) Fixed Assets :

Fixed assets are stated at cost of acquisition less accumulated depreciation. Cost is inclusive of duties, taxes, installation expenses etc. and where applicable is net of cenvat.

C) Depreciation :

D) Borrowing costs :

None of the borrowing costs incurred during the year are attributable to the acquisition of fixed assets. Hence, reporting under AS 16 on borrowing cost does not arise.

E) Inventories ;

a) Raw Materials : Valued at Cost (FIFO) .

The custom duty benefits in respect of closing stock is included as cost of inventory in case of imported materials

b) Work-in-Progress is valued on the basis of completed percentage of production of product at realisable value, as the company manufactures goods on customer's order specification , thus W.I. P. is valued at realisable value. However WIP have to be valued at lower of the cost or net realisable value as per Accounting Standard - 2.

c) Finished goods are valued at cost or net realizable value whichever is lower. The cost includes cost of production and other appropriate overheads.

d) Traded Finished Goods : At Cost

e) Goods in Transits : At Cost.

f) Stores and Spares are valued at cost.

g) Scrap is valued at estimated realisable value.

F) Revenue Recognition :

Sales are recognised when goods are supplied to customers and inclusive of excise duty, sales tax and net of Sales return/ Trade discount if any.

G) Excise Duty on Finished Goods :

Excise duty on finished goods is being accounted for as and when the clearance is made from the factory and is shown separately as an expense in the Profit & Loss Account.

H) Retirement Benefits ;

Company's contribution paid/payable during the year to Provident Fund is charged to the Profit & Loss Account. The liability for Leave Encashment and Gratuity has not been actuarially determined and the company continues to account such liability on actual payment basis, which is not in consonance with accounting standard -15

I) Foreign Transactions :

Transactions in foreign currency arising during the year are recorded at the exchange rate prevailing at the date of the transactions.

Exchange differences arising on adjustment for year end/settlement rates are recognized in Purchase Account and in Sale Account for Purchase of imported materials and for Export Sales respectively as per Accounting Standard

J) Export Benefits :

The Company accounts for Export Benefits under Advance License Scheme of the Government of India, in the year of Export Sales. Further the export benefits for advance license during the year are adjusted to cost of material and for pending advance licenses at the end of the year are accounted as stock in hand .

K) Amortization of Miscellaneous Expenditure Preliminary and Public Issue expenses has been amortised over a period of ten years in equal installments.

L) Taxation on income

Provision for current tax is made on the basis of minimum allowable tax under Income Tax Act, 1961.

Deferred tax on account of timing differences between taxable income and accounting income is accounted for by applying tax rates and laws enacted or substantially enacted on the balance sheet date.

M) Prior Period Adjustment

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

N) Deferred Sales Tax

The Company is eligible for sales tax deferment benefit under capital incentive scheme of 1995-2000 of state government

Mar 31, 2002

A) BASIS OF ACCOUNTING :

i) The finacial statements are prepared under historical Cost convention, in accordance with applicable accounting standard and on the basis of a going concern.

ii) The Company adopts accrual concept in prepartion of accounts. Calims/refunds not accertainable with resonable certainty are accounted for final settlement. Leave Encashment and Gratuity are accounted as and when incurred and claimed. Dividend Income on receipt basis. iii) Benefit on account of entitlement to import duty free raw materials underthe advance license scheme is estimated and accounted for in the year of export.

B) FIXED ASSETS :

Fixed assets are stated at cost of acquisition less accumulated depreciation. Cost is inclusive of duties, taxes etc. and where applicable is net of Modvat.

C) DEPRECIATION :

None of the borrowing costs incured during the year are attributable to the acquisition of fixed assets. Hence, reporting under AS 16 on borrowing cost does not arise.

E) INVENTORIES :

a) Raw Materials : Valued at Cost (FIFO) . The custom duty benefits in respect of closing stock is included as cost of inventory in case of imported materials.

b) Work-in-Progress is valued at cost including appropriate overheads.

c) Finished goods are valued at cost or market value whichever is lower. The cost includes cost of production and other appropriate overhead.

d) Traded Finished Goods : At Cost (FIFO)

e) Goods in Transist : At Cost.

f) Stores and Spares are valued at cost.

g) Scrap is valued at estimated realisable value.

F) REVENUE RECOGNITION :

Revenue from sales is recognised upon dispatch to customers and are recorded at net of returns & Discounts but inclusive of excise duty and sales tax.

G) EXCISE DUTY ON FINISHED GOODS:

Excise duty on finished goods is being accounted for as and when the clearance is made from the factory and is shown separately as an expense in the Profit & Loss Account.

H) RETIREMENT BENEFITS :

I) FOREIGN TRANSACTIONS :

Transactions in foreign currency arising during the year are recorded at the exchange rate prevailing at the date of the transactions.

Exchange differences arising on adjustment for year end/settlement rates are recognised in Purchase Account and in Sale Account for Purchase of imported materials and for Export Sales respectively.

J) EXPORT BENEFITS :

The Company accounts for Export Benefits/Incentives Entitlements under the Duty Entitlement Pass Book Scheme and/or Advance License Scheme of the Government of India, in the year of Export Sales. Premium on duty entitlement passbook scheme is accounted as and when realized.

Further the expert benefits for advance licence during the year are adjusted to cost of material and for pending advance licensees at the end of the year are accounted as stock in hand.

K) INVESTMENT :

Long Term Investments are stated at cost. In view of the management, the decline in the value of quoted investments being temporary in nature, the provision in diminution in the value of investment is not made.

L) AMORTISATION OF MISCELLANEOUS EXPENDITURE :

Preliminary and Public Issue expenses has been amortised over a period often years in equal installments.

M) TAXATION :

Provision for current tax is made on the basis of estimated taxable income under Income Tax Act, 1961.

Deferred tax on account of timing differences between taxable income and accounting income is accounted for by applying tax rates and laws enacted or substantially enacted on the balance sheet date.

N) PRIOR PERIOD ADJUSTMENT :

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

O) RESERVES:

Statutory reserves and Amalgamation reserves have been transferred to general reserve since, they are no longer required by the provision of the Act.

P) CONSOLIDATION OF ACCOUNTS :

Since the investment in subsidary company is totally liquidated by the company on 30th May 2002, M/s. Suraj Chemtech Ltd. ceases to be a subsidary of the company. In view of the exemption provided in para 11 of the accounting standared 21 regarding consolidation of accounts is applicable and therefore consolidated accounts are not given.

Mar 31, 1999

A. BASIS OF ACCOUNTING :

The accounts are prepared on the accounting principles of going concern and on accrual basis except specifically stated otherwise hereinbelow.

B. FIXED ASSETS :

All fixed assets are valued and stated at cost of acquisition less modvat credit taken and accumulated depreciation.

C. DEPRECIATION :

Depreciation on fixed assets, is provided for on Straight Line Method in accordance with Schedule XIV to the Companies Act, 1956, except in the case of fixed assets of Suraj Metal Depot, being the proprietory concern of the Company where the depreciation is provided for on Written Down Value Method, as per Income Tax Act, 1961. Depreciation on Plant & Machinery of Suraj Stainless Limited (SSL), the transferor Company is charged for Tripple Shift.

D. INVESTMENTS :

Long Term Investments are carried & stated at Cost, without providing for permanent diminution in the value of such investments as required by the Accounting Standard (AS 13) regarding Accounting for Investments'.

E. INVENTORIES :

Inventories comprising of Raw Materials, Work-in-progress and Consumable Stores & Spares are valued at Cost. Finished goods are valued at lower of cost or market value and Scrap is valued at its realisable value.

F. REVENUE RECOGNITION :

Sale of goods is recognised at the point of despatch of goods to customers. Sales are stated at net of returns and discount, inclusive of excise duty, sales tax, job work receipts, export incentives and profits of its Branch and Proprietory concern.

G. EXCISE DUTY ON FINISHED GOODS :

Excise duty on finished goods is being accounted for as and when the clearance is made from the factory.

H. RETIREMENT BENEFITS :

Provident Fund contributions are accounted on accrual basis. Leave Encashment liability has been accounted on cash basis.

I. FOREIGN TRANSACTIONS :

Transactions in foreign currency are recorded at the rate of exchange in force at the date of the transaction. Export Incentives on export sales made are accounted in the year of recognition of exports.

J. PUBLIC ISSUE EXPENSES : Expenditure incurred in connection with the issue of Shares is accounted for as deferred revenue expenditure and amortised over a period of ten years.

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article