Accounting Policies of Veer Energy & Infrastructure Ltd. Company

Mar 31, 2023

Significant Accounting Policies

2.1 Basis of Preparation

(I) Compliance with IND AS:

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified
by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013(''Act'') read with the Companies (Indian Accounting Standards) Rules,
2015 as amended and other relevant provisions of the Act. The accounting policies are applied consistently to all the periods presented in the financial
statements.

(I) Historical cost convention:

The financial statements have been prepared on historical cost basis, except certain financial assets and liabilities, defined benefits plans, contingent
consideration and Assets held for sale, which have been measured at fair value.

(II) Current and non-current classification:

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
Schedule III to the Act. Based on the nature of products and the time between 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 purposes of current / non-current classification of assets and
liabilities.

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:

a. Expected to be realized or intended to be sold or consumed in normal operating cycle

b. Held primarily for the purpose of trading

c. Expected to be realized within twelve months after the reporting period, or

d. 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:

a. It is expected to be settled in normal operating cycle

b. It is held primarily for the purpose of trading

c. It is due to be settled within twelve months after the reporting period, or

d. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
All other liabilities are classified as non-current.

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

(IV) Rounding of Amounts:

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless
otherwise stated.

2.2 Use of Estimates and Judgements:

The preparation of financial statements requires the use of accountingestimates which, by definition, will seldom equal the actual results. Management
also needs to exercise judgment in applying the accounting policies. This note provides an overview of the areas that involved a higher degree of
judgment or complexity, and of items which are more likely to be adjusted due to estimates and assumptions turning out to be different from those
originally assessed. Detailed information about each of these estimates and judgments is included in relevant notes together with information about
the basis of calculation for each affected line item in the financial statements.

Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events
that may have a financial impact on the group and that are believed to be reasonable under the circumstances.

2.3 Property, plant and equipment:

Property, plant and equipment are stated at original cost net of tax / duty credit availed, less accumulated depreciation and accumulated impairment
losses, if any. Costs include financing costs of borrowed funds attributable to acquisition or construction of fixed assets, up to the date the assets are put
to-use, along with effects of foreign exchange contracts. The present value of the expected cost for the decommissioning of an asset after its use is
included in the cost of the respective asset if the recognition criteria for a provision are met. When significant parts of property, plant and equipment
are required to be replaced at intervals, the Company derecognizes the replaced part, and recognizes the new part with its own associated useful life
and it is depreciated accordingly. Where components of an asset are significant in value in relation to the total value of the asset as a whole, and they
have substantially different economic lives as compared to principal item of the asset, they are recognized separately as independent items and are
depreciated over their estimated economic useful lives. All other repair and maintenance costs are recognized in the statement of profit and loss as
incurred unless they meet the recognition criteria for capitalization under Property, Plant and Equipment.

Tangible Fixed Assets:

Depreciation is charged as per straight line method on the basis of the expected useful life as specified in Schedule II to the Act. A residual value of 5%
(as prescribed in Schedule II to the Act) of the cost of the assets is used for the purpose of calculating the depreciation charge. The management believes
that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used. However,
management reviews the residual values, useful lives and methods of depreciation of property, plant and equipment at each reporting period end and
any revision to these is recognized prospectively in current and future periods, if any.

Capital Work- in- progress

Capital work- in- progress represents directly attributable costs of construction/ acquisition to be capitalized. All other expenses including interest
incurred during construction / acquisition period are capitalized as a part of the construction cost to the extent to which these expenditures are
attributable to the construction as per Ind AS-23 “Borrowing Costs”. Interest income earned on temporary investment of funds brought in for the project
during construction period are set off from the interest expense accounted for as expenditure during the construction period. All these expenses are
transferred to fixed assets on commencement of respective projects.

2.4 Impairment of non-financial assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An
impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the
asset''s net selling price and value in use. In assessing value in use, the Company measures it on the basis of discounted cash flows of next five years''
projections estimated based on current prices. Assessment is also done at each Balance Sheet date as to whether there is any indication that an
impairment loss recognized for an asset in prior accounting periods may no longer exist or may have decreased.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

Impairment losses of continuing operations, including impairment on inventories, are recognized in profit and loss section of the statement of profit and
loss, except for properties previously revalued with the revaluation taken to other comprehensive Income (the ''OCI''). For such properties, the
impairment is recognized in OCI up to the amount of any previous revaluation.

2.5 Foreign Currency Transactions

Functional and presentation currency

The Company''s financial statements are presented in Indian Rupees ("INR”), which is also the Company''s functional and presentation currency. All
amounts have been reported in Indian Rupees Lakhs, except for share and earnings per share data, unless otherwise stated.

Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount, the exchange rate between the
reporting currency and the foreign currency at the date of transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. In case of items which are covered by forward exchange contract, the difference
between year end rate and rate on the date of the contract is recognised as exchange difference and premium paid on forward contracts and option
contract is recognised over the life of the contract. Non-monetary items, which are measured in terms of historical costs denominated in foreign
currency, are reported using the exchange rate at the date of the transaction. Non-monetary items, which are measured at fair value or other similar
valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting Company''s monetary items at rates different from those at which they
were initially recorded duringthe year, or reported in previous financial statements including receivables and payables which are likely to be settled in
foreseeable future, are recognized as income oras expensesinthe yearin which they arise. All other exchange differences are recognized as income or
as expenses in the period in which they arise.

The gain or loss arising on translation of non-monetary items is recognized in line with the gain or loss of the item that give rise to the translation
difference (i.e. translation difference on items whose gain or loss is recognized in other comprehensive income or the statement of profit and loss is
also recognized in other comprehensive income or the statement of profit and loss respectively).

2.6 Revenue Recognition

(i) Sale of goods and services:

The Company derives revenues primarily from sale of manufactured goods, traded goods and related services.

Effective April 1, 2018, the Company has adopted Indian Accounting Standard 115 (Ind AS 115) -''Revenue from contracts with customers'' using the
cumulative catch-up transition method, applied to contracts that were not completed as on the transition date i.e. April 1, 2018. Accordingly, the
comparative amounts of revenue and the corresponding contract assets / liabilities have not been retrospectively adjusted. The effect on adoption of
Ind-AS 115 was insignificant.

Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised products or services to customers in an amount
that reflects the consideration the Company expects to receive in exchange for those products orservices. The Company recognizes provision for sales
return, based on the historical results.

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and
payment by the customer exceeds one year. As a consequence, it does not adjust any of the transaction prices for the time value of money.

The Company satisfies a performance obligation and recognises revenue over time, if all of the following criteria is met:

1. The customer simultaneously receives and consumes the benefits provided by the Company''s performance;

2. The Company''s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; and

3. The Company''s performance does not create an asset with an alternative use to the Company and an entity has an enforceable right to payment for
performance completed to date.

For performance obligations where one of the above conditions are not met, revenue is recognised at the point in time at which the performance
obligation is satisfied.

Revenue from sale of products and services are recognised at a time on which the performance
obligation is satisfied.

(ii) Interest income:

Interest income from financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income be
measured reliably. Interest income is accrued on a time basis, be reference to the amortised cost and the Effective Interest Rate (EIR) applicable.

(iii) Other income: Other income is recognised when no significant uncertainty as to its determination or realisation exists.

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

A. Financial Assets

a. Initial recognition and measurement:

All financial assets are recognized initially at fai r value. In the case of fi nancial assets not recorded at fai r value through profit or loss, transaction cost
that are attributable to the acquisition of the financial asset are added to the initial cost of such asset. Purchases or sales of financial assets that require
delivery of assets within a time frame established by regulation or convention in the market place [regular way trades] are recognized on the settlemeni
date, trade date, i.e., the date that the Company commits to purchase or sell the asset.

b. Subsequent measurement:

For purposes of subsequent measurement, financial assets are classified in four categories:

i. Debt instruments at amortized cost:

A ''debt instrument'' is measured at the amortized cost if both the following conditions are met:

- The asset is held with an objective of collecting contractual cash flows

- Contractual terms of the asset give rise on specified dates to cash flows that are "solely payments of principal and interest" [SPPI] on the principa
amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate [EIR] method. Amortizec
cost is calculated by taking into account any discount orpremium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization
is included in interest income in the Statement of Profit and Loss. The losses arising from impairment are recognized in the profit or loss. This category
generally applies to trade and other receivables.

ii. Debt instruments at fair value through other comprehensive income [FVTOCI]:

A ''debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:

- The asset is held with objective of both - for collecting contractual cash flows and selling the financial assets

- The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are
recognized in the other comprehensive income [OCI]. However, the Company recognizes interest income, impairment losses & reversals and foreigr
exchange gain or loss in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognized in OCI if
reclassified from the equity to Statement of Profit and Loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using
the EIR method.

iii. Debt instruments, derivatives and equity instruments at fair value through profit or loss [FVTPL]:

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or af
FVTOCI, is classified as at FVTPL. Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the
Profit & Loss statement.

iv. Equity instruments measured at fair value through other comprehensive income [FVTOCI]:

All equity in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. Forall other equity
instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The
Company has made such election on an instrument by- by instrument basis. The classification is made on initial recognition and is irrevocable. If the
Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the
OCI. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to P&L. Equity instrument
included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.

c. Derecognition:

A financial asset is primarily derecognized when:

i. The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in ful
without material delay to a third party under a ''pass-through'' arrangement; and either [a] the Company has transferred substantially all the risks and
rewards of the asset, or [b] the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset.

ii. the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it eval uates if and to whai
extent it has retained the risks and rewards of ownership.

d. 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 risk exposure:

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

b. Trade receivables or any contractual right to receive cash

c. Financial assets that are debt instruments and are measured as at FVTOCI

d. Lease receivables under Ind AS 17

e. Financial guarantee contracts which are not measured as at FVTPL

The Company follows ''simplified approach'' for recognition of impairment loss allowance on Point c and d provided above. The application ofsimplified
approach requires the company to recognize the impairment loss allowance based on lifetime ECLs at each reporting date, right from its initia
recognition. For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a
significant increase inthe credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECLis used to provide for impairmeni
loss. However, if credit risk has increased significantly, lifetime ECL is used to provide impairment. If, in a subsequent period, credit quality of the
instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing
impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a fi nancial i nstrument. The 12-month ECl
is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date. 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
[i.e., all cash shortfalls], discounted at the original EIR.

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The
provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking
estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analyzed.

ECL impairment loss allowance [or reversal] recognized during the period is recognized as income/ expense in the statement of profit and loss. The
balance sheet presentation for various financial instruments is described below:

a. Financial assets measured as at amortized cost, contractual revenue receivables and lease receivables: ECL is presented as an allowance which
reduces the net carrying amount. Until the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying
amount.

b. Debt instruments measured at FVTOCI: Since financial assets are already reflected at fair value, impairment allowance is not further reduced from itf
value. Rather, ECL amount is presented as ''accumulated impairment amount'' in the OCI.

B. Financial liabilities:

a. Initial recognition and measurement:

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as
derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in
the case of loans and borrowings and payables, net of directly attributable transaction costs.

b. Subsequent measurement:

The measurement of financial liabilities depends on their classification, as described below:

i. Financial liabilities at fair value through profit or loss:

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial
recognition as at fair value through profit or loss. This category also includes derivative financial instruments entered into by the Company that arenot
designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as held for
trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or 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, fairvalue gains/ losses attributable to changes in own credit riskare
recognized 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 recognized in the statement of profit or loss. The Company has not designated any financial
liability as at fair value through profit and loss.

ii. Loans and borrowings:

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost usingthe EIR method. Gains and losses are
recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking
into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance
costs in the statement of profit and loss.

iii. Financial guarantee contracts:

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holderfor 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
recognized initiallyasaliabilityatfairvalue, 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
recognized less cumulative amortization.

c. Derecognition:

A financial liability is derecognized 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 recognized in the statement of profit or loss.

C. Reclassification of financial assets:

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassificationis made for
financial assets which are equity instruments and financial liabilities. Forfinancial assets which are debt instruments, a reclassification is made onlyif
there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company does
not restate any previously recognized gains, losses [including impairment gains or losses] or interest.

D. 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 recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

2.8 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 a liability 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:

a. In the principal market for the asset or liability, or

b. 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 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.

2.9 Inve ntories:

Inventories are stated at the lower of cost and net realizable value. Cost comprise all cost of purchase, cost of conversion and other costs incurred in
bringing the inventories to their present location and condition. Cost is determined on First-In-First-Out (FIFO) basis. Due allowance is estimated and
made for defective and obsolete items, wherever necessary.

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

2.10 Employee benefits

a. Short-term obligation:

Liabilities for wages and salaries, including non monetary benefits that are expected to be settled wholly within 12 months after the end of period in
whichthe employee render the related service are recognized in respect of employees'' services upto the end of the reporting period and are measured
at the amounts expected to be paid when the liabilities are settled. Employee benefits are recognized as expense at undiscounted amount in the
statement of profit and loss for the year in which the related service is rendered.

b. Post employee obligations

The Company operates the following post-employment schemes:

- defined benefit plans such as gratuity

- defined contribution plans such as provident fund

(i) Gratuity obligations:

The liabilityor asset recognized in the balance sheetin respect of defined gratuity plansisthe present value of the defined benefit obligation at theend
of the reporting period less the fair value of plan assets. The defined benefit obligation is determined at the yearend by independent actuary usingthe
projected unit credit method.

The present value of the defined obligation denominated in Indian Rupees is determined by discounting the estimated future cash outflows by
reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related
obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This
cost is included in employee benefit expense in the statement of profit and loss.

Actuarial gains and losses in respect of post employment and other long term benefits are debited / credited to retained earnings through OCI in the
period in which they occur. Remeasurements are not reclassified to the profit and loss in the subsequent periods.

(ii) Defined contribution plans:

Provident fund:

The Company pays contributions towards provident fund to the regulatory authorities as per regulations. The contributions are recognized as employee
benefit expense when they are due.

c. Bonus plans

The Company recognise a liability and an expense for bonus. The Company recognise a provision where contractually obliged or where there is a past
practice that has created a constructive obligation.

2.11 Income Tax

Income tax expense comprises current and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the statement of profitand
loss because of items of income or expense that are taxable or deductible in other years and items that are nevertaxable or deductible. The Company''s
current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

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

Deferred tax liabilitiesare recognized forall taxable temporary differences. 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 on the basis of reasonable certainty that the
company will be having sufficient future taxable profits and based on the same the DTA has been recognized in the books.

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 asset to be utilized. Unrecognized deferred tax assets are re-assessed at each
reporting date and are recognized 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 "realized 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 items are recognized in correlation to the underlying transaction either in OCI 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.

Minimum Alternate Tax credit is recognised as deferred tax asset only when and to the extent there is a convincing evidence that the Company will pay
normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is
written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified
period.

2.12 Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences
arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to ge''
ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period the^
occur.

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Mar 31, 2014

(a) Basis of Accounting:

The financial statement are Prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accruals basis.Except in respecr of assets classified as Non Performing Assets (NP)

(b) Use of Estimates

The presentation of financial statements in confirmity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those of estimated.

(c) Revenue Recognition:

(i) Sale of goods:

Reveune from the sale of goods is recognized when significant risks and rewards in respect of ownership of the goods are transferred to the customer, as per the terms of the respective Sales Order.

(ii) Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable

(iii) Dividend

Dividend Income from investments are recognized when the right to receive payment established.

(d) Fixed Assets

Fixed Assets are stated at cost, less accumulated depreciation and impairment losses. Cost includes all expenditure necessary to bring the assets to its working conditions for its intended use.

(e) Depreciation and Amortisation

Depreciation is provided on the straight line method based as per the rate specified in Schedules XIV of the Companies Act, 1956.

(f) Investments

Long-term investments are carried at cost. However, Provision is made to recognize, other than temporary, in the value of long-term investments.

Current Investments are carried at lower of cost and fair values, determined on individual basis.

(g) Inventories

Inventories are at lower of cost and net realizable value.

Stock of land is valued at lower of cost and net realizable value. Cost is determined on the weighted average basis, net realizable value is determined by management using technical estimates.

(h) Borrowing Costs

Borrowing cost that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qulity asset is one that necessarily takes substantial period of time to get readly for intended use. All other borrowing costs are changed to revenue.

(i) Retirment and other employee benefits

The Company has adopted the policy to provide for the Liability for gratuity and leave encashment benefits on actuarial valuation. Acturial Valuation report has been obtained for the liabilities for gratuity and leave encashment benefits and provision has been made accordingly.

(j) Provisions. Contingent liabilities and contingent Assets.

A Provision is recognized when the Company has a Present obligation as a result of past events and it is probable that an out flow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions are not discounted to their present value and are determined based on estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liablities are disclosed by way of Notes to the account. Contingent assets are not recognized.

(k) Provision for current and deferred tax

Provision for current income tax is made in accordance with the Income Tax Act,1961. Deferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the differnce between taxable income and accouonting income that original in oone period arecapable of reversal in one or more subsequently period.

(l) Foreign Currency Transaction

a) Transaction denominated in foreign currency are recorded at the exchange rate prevailing on the date of the transaction.

b) Monetary items denominated in foreign currency at the year end are restated at year end rates.

c) Non monetary foreign currency items are carried at cost.

(m) Impairments

Impairment loss is recognizede wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of Profit and Loss and carrying amount of the asset is reduced to its recoverable amount.

(n) Earning Per Share

Basic earnings per Share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares oustanding during the period are adjusted for any bonus shares issued during the year and also after the balance sheet date but before the date the financial statements are approved by the Board of Directors.

For the purpose of calculating diluted earnings per share, the net profit for period attributed to equity shareholders and the weight average number of share outstanding during the period adjusted for the effects of all dilaative potenial equity shares. The number of equity shares and potenial dilative equity shares are adjusted for bonus as appropriate.

(o) Share Issue Expenses

Share issue expenses are redemption premium are adjusted against the Securities Premium Account as permissble under Section 78(2) of the Companies Act, 1956, to the extent balance is available for utilisation in the Securities Premium Account. The balance of share issue expenses is carried as an asset and is amortised over a period of 5 years

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Mar 31, 2013

(a) Basis of Accounting: The financial statement are Prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accruals basis.Except in respecr of assets classified as Non Performing Assets (NP)

(b) Use of Estimates The presentation of financial statements in confirmity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those of estimated.

(c ) Revenue Recognition: (i) Sale of goods:

Reveune from the sale of goods is recognized when significant risks and rewards in respect of ownership of the goods are transferred to the customer, as per the terms of the respective Sales Order. (ii) Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable (iii) Dividend Dividend Income from investments are recognized when the right to receive payment established.

(d) Fixed Assets Fixed Assets are stated at cost, less accumulated depreciation and impairment losses. Cost includes all expenditure necessary to bring the assets to its working conditions for its intended use.

(e) Depreciation and Amortisation Depreciation is provided on the straight line method based as per the rate specified in Schedules XIV of the Companies Act, 1956.

(f) Investments Long-term investments are carried at cost. However, Provision is made to recognize, other than temporary, in the value of long-term investments. Current Investments are carried at lower of cost and fair values, determined on individual basis.

(g) Inventories Inventories are at lower of cost and net realizable value.

Stock of land is valued at lower of cost and net realizable value. Cost is determined on the weighted average basis, net realizable value is determined by management using technical estimates.

(h) Borrowing Costs

Borrowing cost that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qulity asset is one that necessarily takes substantial period of time to get readly for intended use. All other borrow ing costs are changed to revenue.

(i) Retirment and other employee benefits

The Company has adopted the policy to provide for the Liability for gratuity and leave encashment benefits on actuarial valuation. A c turial V aluation r eport has been obtained f or the liabilities f or gratuity and leav e enc as hment benef its and provision has been made accordingly.

(j) Provisions, Contingent liabilities and contingent Assets.

A Provision is recognized w hen the Company has a Present obligation as a result of past events and it is probable that an out f low of resources w ill be r equired to s ettle the obligation, in respec t of w hic h reliable estimate c an be made. Prov is ions ar e not discounted to their present value and are determined based on estimate required to settle the obligation at the balance sheet date. These are review ed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liablities are disclosed by w ay of Notes to the account. Contingent assets are not recognized.

(k ) Provision for current and deferred tax

Prov is ion f or c ur rent income tax is made in accordance w ith the Inc ome Tax A ct,1961. Def err ed tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the differnce betw een taxable income and accouonting income that original in oone period arecapable of reversal in one or more subsequently period.

(l) Foreign Currency Transaction

a) Transaction denominated in f oreign currenc y are recorded at the ex c hange rate prev ailing on the date of the trans action.

b) Monetary items denominated in foreign currency at the year end are restated at year end rates.

c) Non monetary f oreign currency items are carried at cost.

(m) Impairments

Impairment loss is recognizede w herever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of Profit and Loss and carrying amount of the asset is reduced to its recoverable amount.

(n) Earning Per Share

Basic earnings per Share are calculated by dividing the net profit for the period attributable to equity shareholders by the w eighted average number of equity shares outstanding during the period. The w eighted average number of equity shares oustanding during the period are adjusted for any bonus shares issued during the year and also after the balance sheet date but before the date the financial statements are approved by the Board of Directors.

For the purpose of calculating diluted earnings per share, the net profit for period attributed to equity shareholders and the w eight average number of share outstanding during the period adjusted for the eff ects of all dilaative potenial equity shares. The number of equity shares and potenial dilative equity shares are adjusted for bonus as appropriate.

(o) Share Issue Expenses

Share issue expenses are redemption premium are adjusted against the Securities Premium Account as permissble under Section 78(2) of the Companies Act, 1956, to the extent balance is available for utilisation in the Securities Premium Account. The balance of share issue expenses is carried as an asset and is amortised over a period of 5 years

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Mar 31, 2012

(a) Basis of Accounting: The financial statement are Prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accruals basis.Except in respecr of assets classified as Non Performing Assets (NP)

(b) Use of Estimates The presentation of financial statements in confirmity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results could differ from those of estimated.

(c) Revenue Recognition:

(i) Sale of goods:

Reveune from the sale of goods is recognized when significant risks and rewards in respect of ownership of the goods are transferred to the customer, as per the terms of the respective Sales Order.

(ii) Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

(iii) Dividend

Dividend Income from investments are recognized when the right to receive payment established.

(d) Fixed Assets Fixed Assets are stated at cost, less accumulated depreciation and impairment losses. Cost includes all expenditure necessary to bring the assets to its working conditions for its intended use.

(e) Depreciation and Amortisation Depreciation is provided on the straight line method based as per the rate specified in Schedules XIV of the Companies Act, 1956.

(f) Investments Long-term investments are carried at cost. However, Provision is made to recognize, other than temporary, in the value of long-term investments. Current Investments are carried at lower of cost and fair values, determined on individual basis.

(g) Inventories Inventories are at lower of cost and net realizable value.

Stock of land is valued at lower of cost and net realizable value. Cost is determined on the weighted average basis, net realizable value is determined by management using technical estimates.

(h) Borrowing Costs

Borrowing cost that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qulity asset is one that necessarily takes substantial period of time to get readly for intended use. All other borrowing costs are changed to revenue.

(i) Retirment and other employee benefits

The Company has adopted the policy to provide for the Liability for gratuity and leave encashment benefits on actuarial valuation. Acturial Valuation report has been obtained for the liabilities for gratuity and leave encashment benefits and provision has been made accordingly.

(j) Provisions, Contingent liabilities and contingent Assets.

A Provision is recognized when the Company has a Present obligation as a result of past events and it is probable that an out flow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions are not discounted to their present value and are determined based on estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liablities are disclosed by way of Notes to the account. Contingent assets are not recognized.

(k) Provision for current and deferred tax

Provision for current income tax is made in accordance with the Income Tax Act, 1961. Deferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the differnce between taxable income and accouonting income that original in oone period arecapable of reversal in one or more subsequently period.

(l) Foreign Currency Transaction

a) Transaction denominated in foreign currency are recorded at the exchange rate prevailing on the date of the transaction.

b) Monetary items denominated in foreign currency at the year end are restated at year end rates.

c) Non monetary foreign currency items are carried at cost.

(m) Impairments

Impairment loss is recognizede wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of Profit and Loss and carrying amount of the asset is reduced to its recoverable amount.

(n) Earnings Per Share

Basic earnings per Share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares oustanding during the period are adjusted for any bonus shares issued during the year and also after the balance sheet date but before the date the financial statements are approved by the Board of Directors.

For the purpose of calculating diluted earnings per share, the net profit for period attributed to equity shareholders and the weight average number of share outstanding during the period adjusted for the effects of all dilaative potenial equity shares. The number of equity shares and potenial dilative equity shares are adjusted for bonus as appropriate.

(o) Share Issue Expenses

Share issue expenses are redemption premium are adjusted against the Securities Premium Account as permissble under Section 78(2) of the Companies Act, 1956, to the extent balance is available for utilisation in the Securities Premium Account. The balance of share issue expenses is carried as an asset and is amortised over a period of 5 years

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Mar 31, 2011

1) BASIS OF ACCOUNTING: The financial statement are Prepared in accordance with Indian Generally Accepted Accounting Principles (“GAAP”) under the historical cost convention, on the accruals basis.

2) USE OF ESTIMATES: The Presentation of Financial statements in conformity with the generally accepted accounting Principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

3) REVENUE RECOGNITION:

(i) Sale of goods: Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of the goods are transferred to the customer, as per the terms of the respective Sales order.

(ii) Interest: Interest income is recognized on a time proportion basis taking in to account the amount outstanding and the rate applicable.

(iii) Dividend: Dividend Income from investments is recognized when the right to receive payment is established.

4) FIXED ASSETS: Fixed Assets are stated at cost, less accumulated depreciation and impairment losses. Cost includes all expenditure necessary to bring the assets to its working conditions for its intended use.

5) DEPRECIATION: Depreciation is provided on the straight line method based as per the rate specified in the schedules XIV of the companies Act, 1956 except for the WTG, on useful lives of assets as estimated by the management.

6) INVESTMENTS: Long-term investments are carried at cost. However, Provision is made to recognize, other than temporary, in the value of long-term investments. Current investments are carried at lower of cost and fair values, determined on individual basis

7) INVENTORIES: Inventories are at lower of cost and net realizable value. Stock of land is valued at lower of cost and net realizable value. Cost is determined on the weighted average basis; net realizable value is determined by management using technical estimates.

8) BORROWING COSTS: Borrowing lists that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A quality asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

9) RETIREMENT AND OTHER EMPLOYEE BENEFITS: The Company has adopted the policy to provide for the Liability for gratuity and leave encashment benefits on actuarial valuation. Actuarial valuation report has been obtained for the liabilities for gratuity and leave encashment benefits and provision has been made accordingly.

10) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS: A Provision is recognized when the Company has a Present obligation as a result of past events and it is probable that an out flow of resources will be required to settle the obligation, in respect of which are reliable estimate can be made. Provisions are not discounted to their present value and are determined based on estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed by way of Notes to the account. Contingent assets are not recognized.

11) TAXATION: Provision for current income tax is made in accordance with the Income Tax Act, 1961. Deferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that original in one period and are capable of reversal in one or more subsequently period.

12) IMPAIRMENT: Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of Profit and Loss and carrying amount of the asset is reduced to its recoverable amount.

13) EARNING PER SHARE: Earnings per Share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for any bonus shares issued during the year and also after the balance sheet date but before the date the financial statements are approved by the Board Of Directors. For the purpose of calculating diluted earnings per share, the net profit for the period attributed to equity shareholders and the weight average number of share outstanding during the period adjusted for the effects of all dilative potential equity shares. The number of equity shares and potential dilative equity shares are adjusted for bonus as appropriate.

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Mar 31, 2010

1) BASIS OF ACCOUNTING: The financial statement are Prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention, on the accruals basis.

2) USE OF ESTIMATES:

The Presentation of Financial statements in conformity with the generally accepted accounting Principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

3) REVENUE RECOGNITION:

(i) Sale of goods: Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of the goods are transferred to the customer, as per the terms of the respective Sales order.

(ii) Interest: Interest income is recognized on a time proportion basis taking in to account the amount outstanding and the rate applicable.

(iii) Dividend: Dividend Income from investments is recognized when the right to receive payment is established.

4) FIXED ASSETS:

Fixed Assets are stated at cost, less accumulated depreciation and impairment losses. Cost includes all expenditure necessary to bring the assets to its working conditions for its intended use.

5) DEPRECIATION:

Depreciation is provided on the straight line method based as per the rate specified in the schedules XIV of the companies Act, 1956 except for the WTG, on useful lives of assets as estimated by the management.

6) INVESTMENTS:

Long-term investments are carried at cost. However, Provision is made to recognize, other than temporary, in the value of long-term investments. Current investments are carried at lower of cost and fair values, determined on individual basis

7) INVENTORIES:

Inventories are at lower of cost and net realizable value. Stock of land is valued at lower of cost and net realizable value. Cost is determined on the weighted average basis; net realizable value is determined by management using technical estimates.

8) BORROWING COSTS.

Borrowing lists that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A quality asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

9) RETIREMENT AND OTHER EMPLOYEE BENEFITS:

The Company has adopted the policy to provide for the Liability for gratuity and leave encashment benefits on actuarial valuation. Actuarial valuation report has been obtained for the liabilities for gratuity and leave encashment benefits and provision has been made accordingly.

10) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

A Provision is recognized when the Company has a Present obligation as a result of past events and it is probable that an out flow of resources will be required to settle the obligation, in respect of which are reliable estimate can be made. Provisions are not discounted to their present value and are determined based on estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed by way of Notes to the account. Contingent assets are not recognized.

11) TAXATION:

Provision for current income tax is made in accordance with the Income Tax Act, 1961. Deferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that original in one period and are capable of reversal in one or more subsequently period.

12) IMPAIRMENT:

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of Profit and Loss and carrying amount of the asset is reduced to its recoverable amount.

13) EARNING PER SHARE:

Earnings per Share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for any bonus shares issued during the year and also after the balance sheet date but before the date the financial statements are approved by the Board Of Directors. For the purpose of calculating diluted earnings per share, the net profit for the period attributed to equity shareholders and the weight average number of share outstanding during the period adjusted for the effects of all dilative potential equity shares. The number of equity shares and potential dilative equity shares are adjusted for bonus as appropriate.