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Accounting Policies of Wires and Fabriks (S.A.) Ltd. Company

Mar 31, 2018

SIGNIFICANT ACCOUNTING POLICIES

Annexed to and forming part of the financial statements for the year ended 31st March, 2018. A. CORPORATE INFORMATION:

Wires and Fabriks (S.A.) Limited ("The Company") is a public limited company incorporated and domiciled in India and has its registered office at 7, Chittaranjan Avenue, Kolkata 700 072, India. The Company is listed on the BSE Limited and Calcutta Stock Exchange Limited. The company is engaged mainly in paper mill products.

B. STATEMENT OF COMPLIANCE:

The Significant Accounting Policies applied by the Company in preparation of its Financial Statements are listed below. Such accounting policies have been applied consistently to all the periods presented in these financial statements and in preparing the opening IndAS Balance Sheet as at April 1,2016 for the purpose of transition to IndAS, unless otherwise indicated.

In accordance with the notification issued by the Ministry of Corporate Affairs, the company has adopted IndAS notified under the Companies Indian Accounting Standard Rules, 2015 with effect from April 1,2017.

The transition from Previous GAAP to Ind As has been accounted for in accordance with Ind As 101 “First Time Adoption of Indian Accounting Standard” with April 1,2016 being the transition date.

In accordance with IndAs 101 “First Time Adoption of Indian Accounting Standard” the Company has presented a reconciliation from the presentation of final statements under accounting standards notified under the Companies Accounting Standard Rules, 2006 i.e “Previous GAAP” to IndAs of total equity as at April 1, 2016 and March 31, 2017, total comprehensive income and cash flow for the year ended March 31,2017.

C. SIGNIFICANT ACCOUNTING POLICIES:

1. Basis of Preparation and Presentation of Financial Statement

a) The Financial Statements of the Company have been prepared on historical cost convention under accrual method of accounting and as a going concern concept except for certain assets and liabilities which are measured at fair values as required by IndAS.

Fair value is the price that would be received to sell an asset or paid to transfer of liability in an ordinary transaction between market participants at the measurement date. All assets and liabilities have been classified as per the Company''s normal operating cycle and the other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. The Company has ascertained its operating cycle as 12 months for the purpose of current and noncurrent classification of assets and liabilities.

b) The Financial Statements of the Company have been prepared to comply with the Indian Accounting Standard (''Ind AS''), including the rules notified under the relevant provisions of Companies Act, 2013. Accounting policies have consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

c) Up to the year ended March 31, 2017, the Company has prepared its Financial Statements in accordance with the requirement of Indian Generally Accepted Accounting Principal (GAAP), which includes Standards notified under the Companies Act, 2013, read together with paragraph 7 of the Companies (Account) Rules, 2014 and considered as "Previous GAAP".

d) These Financial Statements are the Company''s first IndAS Financial Statements.

e) Company''s Financial Statements are presented in Indian Rupees, which are also its functional currency and all amounts are rounded to the nearest rupees, except as stated otherwise.

2. Property, Plant and Equipment

a) Property, plant and equipment are stated at cost of acquisition or construction inclusive of freight, net of recoverable taxes /duties, borrowing cost, net changes on foreign exchange contracts and adjustments arising from exchange rate variation attributable to the assets and other directly attributable cost of bringing the assets in its working condition for its intended use, less accumulated depreciation and impairment losses, if any.

Subsequent cost are included in the asset''s carrying amount or recognized as a separate cost, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and cost can be measured reliably.

b) Depreciation on property, plant and equipment’s other than Wind Power Plants is provided on "straight line method" and on Wind Power Plant on "Written down value method" based on useful life of the assets ascertained by the Company, which are in line with Schedule II to the Companies Act, 2013. Leased assets is amortized over the period of lease.

c) The gain and loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and the carrying amount of the assets and is recognized in the Statement of Profit and Loss on the date of disposal or retirement.

d) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

e) Expenses incurred relating to the project, net of income earned prior to its intended use are considered as Pre-Operative Expenses and disclosed under Capital Work in Progress. Pre-operative expenditure are allocated on the respective assets in the year of capitalization.

3. Leases

a) Leases are classified as finance leases wherever the terms of the lease, transfers substantially all the risk and rewards of the ownership to the lessee. Assets held under finance leases are initially recognized as assets of the Company at their fair value at the inception of the lease. All other lease are classified as operating lease.

b) Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term except where other systematic basis is more representative of time pattern in which economic benefits from the leased assets are consumed.

4. Intangible Assets

a) Intangible Assets are stated at cost of acquisition or construction inclusive of freight, net of recoverable taxes /duties, borrowing cost, net changes on foreign exchange contracts and adjustments arising from exchange rate variation attributable to the assets and other directly attributable cost of bringing the assets in its working condition for its intended use, less accumulated depreciation and impairment losses, if any.

b) The gain and loss arising on the disposal or retirement of an item of Intangible assets is determined as the difference between the sale proceeds and the carrying amount of the assets and is recognized in the Statement of Profit and Loss on the date of disposal or retirement.

c) Computer Software is amortized over a period of 5 years.

5. Inventories

Inventories are valued at lower of cost or net realizable value. Cost of inventories comprises of cost of purchases, cost of conversion and other cost including manufacturing overheads net of recoverable taxes incurred in bringing them to their respective present location and condition. The Company follows weighted average method for deriving cost of Work-ln-Progress and Finished Goods. Provisions are made to cover slow moving and obsolete item. Scrap is valued at estimated market value.

6. Impairment of non-financial assets- Property, Plant and Equipment

The Company assesses at each reporting date whether there is any indication that any property, plant and equipment and intangible assets or group of assets, called cash generating unit may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

7. Research and development expenditure

Revenue expenditure on research and development is charged as an expense in the year in which it is incurred under respective heads of accounts. Expenditure which results in the creation of capital assets is capitalized and depreciation is provided on such assets as applicable.

8. Employee benefits

a) Short term Employees Benefits Expenses

Short term employee benefits are recognized as expenses at the un-discounted amount in the Statement of Profit and Loss of the year in which the related service is rendered. Termination benefits are recognized as expenses as and when paid.

b) Post-Employment Benefits

i. Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the Company pays the contributions to recognized funds are charged to the Statement of Profit and Loss during the period when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions.

ii. The cost of providing Gratuity, a defined benefit plan is determined using the projected unit credit method, on the basis of actuarial valuation performed by an independent actuary at each Balance Sheet date. Actuarial gain and losses arising from experience adjustments and changes in actuarial assumption are changed or credited to Statement of Profit and Loss in the period in which they arise.

Hi. Provision for Compensated absence and Gratuity liability of whole time Directors and employees, which are defined benefits and determined using the Projected Unit Credit method, on the basis of actuarial valuation performed by an independent actuary at each Balance Sheet date. Actuarial gain and losses arising from experience adjustments and changes in actuarial assumption are changed or credited to Statement of Profit and Loss in the period in which they arise. The Gratuity liability in respect of employees of the Company (except whole time Directors and employees joined after 31.12.2012) is covered through a policy taken by a trust established under the Group Gratuity Scheme with Life Insurance Corporation of India (LIC).

9. Borrowing cost

Borrowing cost consists of interest and other costs that the Company incurs in connection with the borrowing of funds. Borrowing costs that are attributable to the acquisition of qualifying assets are capitalized as a part of cost of such assets. All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

10. Taxation

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Company''s case. Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India. This gives rise to future economic benefit in the form of tax credit against future income tax liability. The company reviews the position of the MAT credit entitlements at each balance sheet date and recognizes the same, if there is convincing evidence that the company will utilize the same for payment of normal tax during the specified period and the resultant credit can be measured reliably.

b) Deferred tax is recognized on timing differences between carrying amount of assets and liabilities in the Financial Statement and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the assets realized, based on the tax rates and laws that have been enacted or subsequently enacted by the end of the reporting period. The carrying amount of Deferred tax liability and assets are reviewed at the end of each reporting period. Deferred tax liability are generally recognized for all taxable temporary differences and Deferred tax assets are generally recognized for all tax-deductible temporary differences, carry forward tax losses and allowances to the extent there is reasonable certainty that these assets can be realized in future.

11. Foreign currency transactions

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Statement of Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to the interest cost on foreign currency borrowing that are directly attributable to the acquisition or construction of qualifying assets, are capitalized as cost of assets.

12. Provisions

Provisions are recognized when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the best current estimate.

13. Revenue recognition

a) Revenue from sale of goods is measured at fair value of the consideration received / receivable excluding taxes and duties collected on behalf of government. Sales mainly constitute Paper Mills Products, etc and include packing charges and net of discounts & returns in respect of earlier years.

b) Revenue from the services is recognized on completion of agreed contractual task.

c) Export Incentives are recognized on post export basis on entitlement rates.

d) Government grants are recognized on receipt / reasonable ascertainment of ultimate collection thereof.

e) Interest income is recognized using the effective interest method.

14. Use of estimates

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

15. Financial Instrument

SIGNIFICANT ACCOUNTING POLICIES

Annexed to and forming part of the financial statements for the year ended 31st March, 2018. A. CORPORATE INFORMATION:

Wires and Fabriks (S.A.) Limited ("The Company") is a public limited company incorporated and domiciled in India and has its registered office at 7, Chittaranjan Avenue, Kolkata 700 072, India. The Company is listed on the BSE Limited and Calcutta Stock Exchange Limited. The company is engaged mainly in paper mill products.

B. STATEMENT OF COMPLIANCE:

The Significant Accounting Policies applied by the Company in preparation of its Financial Statements are listed below. Such accounting policies have been applied consistently to all the periods presented in these financial statements and in preparing the opening IndAS Balance Sheet as at April 1,2016 for the purpose of transition to IndAS, unless otherwise indicated.

In accordance with the notification issued by the Ministry of Corporate Affairs, the company has adopted IndAS notified under the Companies Indian Accounting Standard Rules, 2015 with effect from April 1,2017.

The transition from Previous GAAP to Ind As has been accounted for in accordance with Ind As 101 “First Time Adoption of Indian Accounting Standard” with April 1,2016 being the transition date.

In accordance with IndAs 101 “First Time Adoption of Indian Accounting Standard” the Company has presented a reconciliation from the presentation of final statements under accounting standards notified under the Companies Accounting Standard Rules, 2006 i.e “Previous GAAP” to IndAs of total equity as at April 1, 2016 and March 31, 2017, total comprehensive income and cash flow for the year ended March 31,2017.

C. SIGNIFICANT ACCOUNTING POLICIES:

1. Basis of Preparation and Presentation of Financial Statement

a) The Financial Statements of the Company have been prepared on historical cost convention under accrual method of accounting and as a going concern concept except for certain assets and liabilities which are measured at fair values as required by IndAS.

Fair value is the price that would be received to sell an asset or paid to transfer of liability in an ordinary transaction between market participants at the measurement date. All assets and liabilities have been classified as per the Company''s normal operating cycle and the other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. The Company has ascertained its operating cycle as 12 months for the purpose of current and noncurrent classification of assets and liabilities.

b) The Financial Statements of the Company have been prepared to comply with the Indian Accounting Standard (''Ind AS''), including the rules notified under the relevant provisions of Companies Act, 2013. Accounting policies have consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

c) Up to the year ended March 31, 2017, the Company has prepared its Financial Statements in accordance with the requirement of Indian Generally Accepted Accounting Principal (GAAP), which includes Standards notified under the Companies Act, 2013, read together with paragraph 7 of the Companies (Account) Rules, 2014 and considered as "Previous GAAP".

d) These Financial Statements are the Company''s first IndAS Financial Statements.

e) Company''s Financial Statements are presented in Indian Rupees, which are also its functional currency and all amounts are rounded to the nearest rupees, except as stated otherwise.

2. Property, Plant and Equipment

a) Property, plant and equipment are stated at cost of acquisition or construction inclusive of freight, net of recoverable taxes /duties, borrowing cost, net changes on foreign exchange contracts and adjustments arising from exchange rate variation attributable to the assets and other directly attributable cost of bringing the assets in its working condition for its intended use, less accumulated depreciation and impairment losses, if any.

Subsequent cost are included in the asset''s carrying amount or recognized as a separate cost, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and cost can be measured reliably.

b) Depreciation on property, plant and equipment’s other than Wind Power Plants is provided on "straight line method" and on Wind Power Plant on "Written down value method" based on useful life of the assets ascertained by the Company, which are in line with Schedule II to the Companies Act, 2013. Leased assets is amortized over the period of lease.

c) The gain and loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and the carrying amount of the assets and is recognized in the Statement of Profit and Loss on the date of disposal or retirement.

d) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

e) Expenses incurred relating to the project, net of income earned prior to its intended use are considered as Pre-Operative Expenses and disclosed under Capital Work in Progress. Pre-operative expenditure are allocated on the respective assets in the year of capitalization.

3. Leases

a) Leases are classified as finance leases wherever the terms of the lease, transfers substantially all the risk and rewards of the ownership to the lessee. Assets held under finance leases are initially recognized as assets of the Company at their fair value at the inception of the lease. All other lease are classified as operating lease.

b) Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term except where other systematic basis is more representative of time pattern in which economic benefits from the leased assets are consumed.

4. Intangible Assets

a) Intangible Assets are stated at cost of acquisition or construction inclusive of freight, net of recoverable taxes /duties, borrowing cost, net changes on foreign exchange contracts and adjustments arising from exchange rate variation attributable to the assets and other directly attributable cost of bringing the assets in its working condition for its intended use, less accumulated depreciation and impairment losses, if any.

b) The gain and loss arising on the disposal or retirement of an item of Intangible assets is determined as the difference between the sale proceeds and the carrying amount of the assets and is recognized in the Statement of Profit and Loss on the date of disposal or retirement.

c) Computer Software is amortized over a period of 5 years.

5. Inventories

Inventories are valued at lower of cost or net realizable value. Cost of inventories comprises of cost of purchases, cost of conversion and other cost including manufacturing overheads net of recoverable taxes incurred in bringing them to their respective present location and condition. The Company follows weighted average method for deriving cost of Work-ln-Progress and Finished Goods. Provisions are made to cover slow moving and obsolete item. Scrap is valued at estimated market value.

6. Impairment of non-financial assets- Property, Plant and Equipment

The Company assesses at each reporting date whether there is any indication that any property, plant and equipment and intangible assets or group of assets, called cash generating unit may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

7. Research and development expenditure

Revenue expenditure on research and development is charged as an expense in the year in which it is incurred under respective heads of accounts. Expenditure which results in the creation of capital assets is capitalized and depreciation is provided on such assets as applicable.

8. Employee benefits

a) Short term Employees Benefits Expenses

Short term employee benefits are recognized as expenses at the un-discounted amount in the Statement of Profit and Loss of the year in which the related service is rendered. Termination benefits are recognized as expenses as and when paid.

b) Post-Employment Benefits

i. Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the Company pays the contributions to recognized funds are charged to the Statement of Profit and Loss during the period when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions.

ii. The cost of providing Gratuity, a defined benefit plan is determined using the projected unit credit method, on the basis of actuarial valuation performed by an independent actuary at each Balance Sheet date. Actuarial gain and losses arising from experience adjustments and changes in actuarial assumption are changed or credited to Statement of Profit and Loss in the period in which they arise.

Hi. Provision for Compensated absence and Gratuity liability of whole time Directors and employees, which are defined benefits and determined using the Projected Unit Credit method, on the basis of actuarial valuation performed by an independent actuary at each Balance Sheet date. Actuarial gain and losses arising from experience adjustments and changes in actuarial assumption are changed or credited to Statement of Profit and Loss in the period in which they arise. The Gratuity liability in respect of employees of the Company (except whole time Directors and employees joined after 31.12.2012) is covered through a policy taken by a trust established under the Group Gratuity Scheme with Life Insurance Corporation of India (LIC).

9. Borrowing cost

Borrowing cost consists of interest and other costs that the Company incurs in connection with the borrowing of funds. Borrowing costs that are attributable to the acquisition of qualifying assets are capitalized as a part of cost of such assets. All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

10. Taxation

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Company''s case. Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India. This gives rise to future economic benefit in the form of tax credit against future income tax liability. The company reviews the position of the MAT credit entitlements at each balance sheet date and recognizes the same, if there is convincing evidence that the company will utilize the same for payment of normal tax during the specified period and the resultant credit can be measured reliably.

b) Deferred tax is recognized on timing differences between carrying amount of assets and liabilities in the Financial Statement and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the assets realized, based on the tax rates and laws that have been enacted or subsequently enacted by the end of the reporting period. The carrying amount of Deferred tax liability and assets are reviewed at the end of each reporting period. Deferred tax liability are generally recognized for all taxable temporary differences and Deferred tax assets are generally recognized for all tax-deductible temporary differences, carry forward tax losses and allowances to the extent there is reasonable certainty that these assets can be realized in future.

11. Foreign currency transactions

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Statement of Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to the interest cost on foreign currency borrowing that are directly attributable to the acquisition or construction of qualifying assets, are capitalized as cost of assets.

12. Provisions

Provisions are recognized when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the best current estimate.

13. Revenue recognition

a) Revenue from sale of goods is measured at fair value of the consideration received / receivable excluding taxes and duties collected on behalf of government. Sales mainly constitute Paper Mills Products, etc and include packing charges and net of discounts & returns in respect of earlier years.

b) Revenue from the services is recognized on completion of agreed contractual task.

c) Export Incentives are recognized on post export basis on entitlement rates.

d) Government grants are recognized on receipt / reasonable ascertainment of ultimate collection thereof.

e) Interest income is recognized using the effective interest method.

14. Use of estimates

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

15. Financial Instrument

a) Financial Assets

I. Initial Recoanisation and measurement

Financial Assets and Financial Liabilities are recognized when the Company became a party to the contractual provisions of the instrument. All Financial Assets and Liabilities are initially recognized at fair value except for trade receivable which is initially measured at transaction price. Transaction cost that are directly attributable to the acquisition or issue of financial assets and financial liabilities which are not at fair value are adjusted through profit or loss to the fair value on initial recognitions. Purchase and sale of financial assets are accounted for at trade date.

II. Subsequent measurement

a) Financial Assets carried at amortized cost (AC^

A financial asset is subsequently measured at amortize cost, if the financial asset is held within a business model, whose objective is to hold the asset in order to collect contractual cash flow and the contractual term of financial asset give rise on specified date to cash flow that are solely payment of principal and interest on principal amount outstanding.

b) Financial Assets at fair value through other comprehensive income (FVTOCh

A financial asset is subsequently measured at fair value through other comprehensive income if financial assets is held within a business model whose objective is achieved by both collecting contractual cash flow and selling financial assets and the contractual term of financial assets give rise on specified date to the cash flow that are solely payment of principal and interest on principal amount outstanding. The Company has made irrevocable election for its investments which are not held for trading and are classified as equity instrument to present the subsequent changes in fair value in other comprehensive income on its business model. Such an election is made by the Company on an instrument by instrument basis at the time of initial recognition of each equity investment.

c) Financial Assets at fair value through profit or loss (FVTPL^

A financial asset which is not classified in any of the above categories is measured at fair value through profit or loss (FVTPL).

III. Other Equity Investments

All other equity investments are measured at fair value with value changes recognized in Statement of Profit and Loss, except for those equity investments for which the company has elected to present the value change in "Other Comprehensive Income".

IV. Impairment of Financial Assets

In accordance with IndAs 109 the Company uses '' Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those required at fair value through profit and loss (FVTPL). Expected credit loss is measured through a loss allowance at an amount equal to:

- The twelve months expected credit loss (expected credit loss that result from those default events on the financial instruments that are possible within twelve months after the reporting date); or

- Full lifetime expected credit loss (expected credit loss that result from all possible default events over the lifetime of the financial instruments).

For trade receivables company applies expected lifetime losses from initial recognition of the receivable. For other assets, the company uses twelve month ECL to provide for impairment loss where there is no significant increase in credit risk since initial recognition. If there is a significant increase in credit risk since initial recognition, full lifetime ECLis used.

b) Financial Liability

I. Initial Recognition and measurement

All financial liabilities are recognized at fair value.

II. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest rate method. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amount is approximate fair value due to the short maturity of these instruments.

c) Derecognition of financial instruments

The Company derecognises a financial assets when the contractual right to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

16. Government Grants

The company recognize Government grants only when there is a reasonable assurance that the conditions attached to them shall be complied with and grant will be received. Grants related to assets are treated as deferred income and are recognized in the Statement of Profit and Loss on a systematic and rational basis over the useful life of the assets. Grants related to income are recognized on a systematic basis over the periods necessary to match them with the related cost which they are intended to compensate and are deducted from the expenses in the Statement of Profit and Loss.

17. Contingent Liability and Contingent Assets

Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognized nor disclosed in the Financial Statements.


Mar 31, 2016

1 BASIS OF PREPARATION OF FINANCIAL STATEMENT

a) The Financial Statements of the Company have been prepared in accordance with the generally accepted accounting principles in India. The Company has prepared these financial statements to comply in all material respect with the Accounting Standards notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and Companies (Accounting Standards) Amendment Rules, 2016. The accounts have been prepared on historical cost convention under accrual method of accounting and as a going concern concept.

b) Accounting policies not specifically referred to otherwise are consistent and in accordance with the accounting principles generally accepted as recommended by The Institute of Chartered Accountants of India (ICAI).

c) The Accounting Policies adopted in the preparation of financial statements are consistent with those used in previous year, except for the change in accounting policy explained below:

As per the requirements of pre-revised Accounting Standard- 4, the Company used to create a liability for dividend proposed after the balance sheet date if dividend related to periods covered by the financial statements. Going forward, as per Accounting Standard- 4(Revised), the Company cannot create provision for dividend proposed after the balance sheet date. However, Company will need to disclose the same in notes to the financial statements. Accordingly, the Company has disclosed dividend proposed by board of directors after the balance sheet date in the notes to the financial statements.

2 REVENUE RECOGNITION :

a) Revenue is recognized on completion of sale and rendering of services.

b) Income and expenditure are recognized on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of interest recoverable from parties for delayed retirement of documents and leave travel allowance payable to employees, the same continue to be accounted for as and when received / settled. Customers’ claims are accounted for as and when arise / settled on the basis of joint performance analysis/ assessment.

c) Sales constitutes Paper Mills Products, Wind Power, etc and includes packing charges, excise duty and sales tax are net of discounts & returns in respect of earlier years.

d) Export Incentives are recognized on post export basis on entitlement rates.

e) Government grants are recognized on receipt / reasonable ascertainment of ultimate collection thereof.

3 USE OF ESTIMATES

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

4 FIXED ASSETS AND DEPRECIATION & AMORTISATION

a) Tangible Assets are stated at cost of acquisition or construction inclusive of freight, duties and other directly attributable costs of bringing the assets in its working condition for its intended use, less accumulated depreciation.

b) Depreciation on all tangible assets other than Wind Power Plants is provided on “straight line method” and on Wind Power Plant on “Written down value method” based on useful life of the assets as prescribed in Schedule II to the Companies Act,2013.

c) Amortization of Intangible Assets includes (a) leasehold land over the period of lease and (b) Computer software in the year of purchase / use.

d) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

e) Pre-operative expenditure are allocated on the respective assets in the year of capitalization.

5 BORROWING COST :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalized as a part of cost of such assets. All other borrowing costs are charged to revenue.

6 INVESTMENTS :

Investments intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost. Provision for diminution in value of investments is made to recognize a decline, other than temporary in the value of investments. Investments other than the long term investments being current investments are valued at cost or market value whichever is lower.

7 INVENTORIES :

a) Inventories are valued at lower of cost or net realizable value. Cost of stores and spares, raw materials, packing materials, trading and other products is determined on weighted average basis except Raw Material at Jaipur Unit which is valued at specific cost. Scrap is valued at estimated market value. Cost of Finished Stock and Work in Progress for woven wire cloth is determined on absorption costing method. Value of Finished Goods includes Excise Duty.

b) Provisions are made on determination of obsolete and unserviceable stocks found on physical verification.

8 RESEARCH AND DEVELOPMENT EXPENDITURE :

Revenue expenditure on research and development is charged as an expense in the year in which it is incurred under respective heads of accounts. Expenditure which results in the creation of capital assets is capitalized and depreciation is provided on such assets as applicable.

9 EMPLOYEE BENEFITS :

a) Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the contributions to recognized funds are charged to the Profit and Loss Account of the year when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions. Other short term employee benefits are recognized as expenses at the un-discounted amount in the Profit & Loss Account of the year in which the related service is rendered. Termination benefits are recognized as an expenses as and when paid.

b) The Gratuity liability in respect of employees of the Company (except whole time Directors and new employees ) is covered through a policy taken by a trust established under the Group Gratuity Scheme with Life Insurance Corporation of India (LIC). The liability is determined and provided for based on an actuarial valuation performed by LIC .

c) Provision for leave encashment and Gratuity liability of whole time Directors and new employees , which are defined benefits has been ascertained on an actuarial valuation performed by an independent actuary as at the Balance Sheet date.

10 FOREIGN CURRENCY TRANSACTIONS :

Exchange difference arising from foreign currency transactions relating to import/export of goods are dealt with in the Profit and Loss Account. Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Profit and Loss Account.

11 SEGMENT ACCOUNTING :

a) The accounting policies applicable to the reportable segments are same as those used in the preparation of the financial statements.

b) Items of Income and Expenditure, Assets and Liabilities (including Advance Tax, Borrowings, Provision for Taxation and Deferred Tax Liability ) which are not directly attributable / identifiable / allocable on a reasonable basis to a business segment are shown as unallocated.

12 TAXATION :

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Company’s case. Minimum Alternate Tax (MAT) is paid in accordance with the tax law. This gives rise to future economic benefit in the form of tax credit against future income tax liability. The company reviews the position of the MAT credit entitlements at each balance sheet date and recognizes the same, if there is convincing evidence that the company will utilize the same for payment of normal tax during the specified period and the resultant credit can be measured reliably.

b) Deferred tax for timing differences between tax profit and book profit is accounted for using the tax rates and laws that have been enacted or subsequently enacted as on the Balance Sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty that these assets can be realized in future.

13 IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

14 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS :

a) Provisions are recognized when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimate.

b) Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognized nor disclosed in the financial statements


Mar 31, 2015

1 BASIS OF PREPARATION OF FINANCIAL STATEMENT

a) The accounts have been prepared on historical cost convention under accrual method of accounting and as a going concern concept.

b) Accounting policies not specifically referred to otherwise are consistent and in accordance with the accounting principles generally accepted as recommended by The Institute of Chartered Accountants of India (ICAI).

2 REVENUE RECOGNITION :

a) Revenue is recognised on completion of sale and rendering of services.

b) Income and expenditure are recognised on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of interest recoverable from parties for delayed retirement of documents and leave travel allowance payable to employees, the same continue to be accounted for as and when received / settled. Customers' claims are accounted for as and when arise / settled on the basis of joint performance analysis/assessment.

c) Sales constitutes Paper Mills Products, Wind Power, etc and includes packing charges, excise duty and sales tax are net of discounts & returns in respect of earlier years.

d) Export Incentives are recognised on post export basis on entitlement rates.

e) Government grants are recognised on receipt / reasonable ascertainment of ultimate collection thereof.

3 USE OF ESTIMATES

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

4 FIXED ASSETS AND DEPRECIATION & AMORTISATION

a) Tangible Assets are stated at cost of acquisition or construction inclusive of freight, duties and other directly attributable costs of bringing the assets in its working condition for its intended use, less accumulated depreciation.

b) Depreciation on all tangible assets other than Wind Power Plants is provided on "straight line method" and on Wind Power Plant on "Written down value method" based on useful life of the assets as prescribed in Schedule II to the Companies Act,2013.

c) Amortisation of Intangible Assets includes (a) leasehold land over the period of lease and (b) Computer software in the year of purchase / use.

d) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

e) Pre-operative expenditure are allocated on the respective assets in the year of capitalisation.

5 BORROWING COST :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of cost of such assets. All other borrowing costs are charged to revenue.

6 INVESTMENTS :

Investments intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost. Provision for diminution in value of investments is made to recognise a decline, other than temporary in the value of investments. Investments other than the long term investments being current investments are valued at cost or market value whichever is lower.

7 INVENTORIES :

a) Inventories are valued at lower of cost or net realisable value. Cost of stores and spares, raw materials, packing materials, trading and other products is determined on weighted average basis except Raw Material at Jaipur Unit which is valued at specific cost. Scrap is valued at estimated market value. Cost of Finished Stock and Work in Progress for woven wire cloth is determined on absorption costing method. Value of Finished Goods includes Excise Duty.

b) Provisions are made on determination of obsolete and unserviceable stocks found on physical verification.

8 RESEARCH AND DEVELOPMENT EXPENDITURE :

Revenue expenditure on research and development is charged as an expense in the year in which it is incurred under respective heads of accounts. Expenditure which results in the creation of capital assets is capitalised and depreciation is provided on such assets as applicable.

9 EMPLOYEE BENEFITS :

a) Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the contributions to recognised funds are charged to the Profit and Loss Account of the year when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions. Other short term employee benefits are recognised as expenses at the un-discounted amount in the Profit & Loss Account of the year in which the related service is rendered. Termination benefits are recognised as an expenses as and when paid.

b) The Gratuity liability in respect of employees of the Company (except wholetime Directors and new employees) is covered through a policy taken by a trust established under the Group Gratuity Scheme with Life Insurance Corporation of India (LIC). The liability is determined and provided for based on an actuarial valuation performed by LIC.

c) Provision for leave encashment and Gratuity liability of wholetime Directors and new employees, which are defined benefits has been ascertained on an actuarial valuation performed by an independent actuary as at the Balance Sheet date.

10 FOREIGN CURRENCY TRANSACTIONS :

Exchange difference arising from foreign currency transactions relating to import/export of goods are dealt with in the Profit and Loss Account. Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Profit and Loss Account.

11 SEGMENT ACCOUNTING :

a) The accounting policies applicable to the reportable segments are same as those used in the preparation of the financial statements.

b) Items of Income and Expenditure, Assets and Liabilities (including Advance Tax, Borrowings, Provision for Taxation and Deferred Tax Liability) which are not directly attributable / identifiable / allocable on a reasonable basis to a business segment are shown as unallocated.

12 TAXATION :

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Company's case. Minimum Alternate Tax (MAT) is paid in accordance with the tax law. This gives rise to future economic benefit in the form of tax credit against future income tax liability. The company reviews the position of the MAT credit entitlements at each balance sheet date and recognises the same, if there is convincing evidence that the company will utilise the same for payment of normal tax during the specified period and the resultant credit can be measured reliably.

b) Deferred tax for timing differences between tax profit and book profit is accounted for using the tax rates and laws that have been enacted or subsequently enacted as on the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

13 IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

14 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS :

a) Provisions are recognised when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimate.

b) Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2014

1 BASIS OF PREPARATION OF FINANCIAL STATEMENT

a) The accounts have been prepared on historical cost convention under accrual method of accounting and as a going concern concept.

b) Accounting policies not specifically referred to otherwise are consistent and in accordance with the accounting principles generally accepted as recommended by The Institute of Chartered Accountants of India (ICAI).

2 REVENUE RECOGNITION :

a) Revenue is recognised on completion of sale and rendering of services.

b) Income and expenditure are recognised on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of interest recoverable from parties for delayed retirement of documents and leave travel allowance payable to employees, the same continue to be accounted for as and when received / settled. Customers'' claims are accounted for as and when arise / settled on the basis of joint performance analysis/assessment.

c) Sales constitutes Paper Mills Products, Wind Power, etc and includes packing charges, excise duty and sales tax are net of discounts & returns in respect of earlier years.

d) Export Incentives are recognised on post export basis on entitlement rates.

e) Government grants are recognised on receipt / reasonable ascertainment of ultimate collection thereof.

3 USE OF ESTIMATES

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

4 FIXED ASSETS AND DEPRECIATION & AMORTISATION

a) Tangible Assets (other than those which have been revalued) are stated at cost of acquisition or construction inclusive of freight, duties and other directly attributable costs of bringing the assets in its working condition for its intended use, less depreciation. In case of revalued assets, as at the close of the year, the book value is also inclusive of revaluations made.

b) Depreciation on all tangible assets other than Wind Power Plants is provided on "straight line method" and on Wind Power Plant on "Written down value method" as per the rates prescribed in Schedule XIV to the Companies Act,19S6.

c) Amortisation of Intangible Assets includes (a) leasehold land over the period of lease and (b) Computer software in the year of purchase / use.

d) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

e) Pre-operative expenditure are allocated on the respective assets in the year of capitalisation.

5 BORROWING COST :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of cost of such assets. All other borrowing costs are charged to revenue.

6 INVESTMENTS :

Investments intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost. Provision for diminution in value of investments is made to recognise a decline, other than temporary in the value of investments. Investments other than the long term investments being current investments are valued at cost or market value whichever is lower.

7 INVENTORIES :

a) Inventories are valued at lower of cost or net realisable value. Cost of stores and spares, raw materials, packing materials, trading and other products is determined on weighted average basis except Raw Material at Jaipur Unit which is valued at specific cost. Scrap is valued at estimated market value. Cost of Finished Stock and Work-in-Progress for woven wire cloth is determined on absorption costing method. Value of Finished Goods includes Excise Duty.

b) Provisions are made on determination of obsolete and unserviceable stocks found on physical verification.

8 RESEARCH AND DEVELOPMENT EXPENDITURE :

Revenue expenditure on research and development is charged as an expense in the year in which it is incurred under respective heads of accounts. Expenditure which results in the creation of capital assets is capitalised and depreciation is provided on such assets as applicable.

9 EMPLOYEE BENEFITS :

a) Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the contributions to recognised funds are charged to the Profit and Loss Account of the year when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions. Other short term employee benefits are recognised as expenses at the un-discounted amount in the Profit & Loss Account of the year in which the related service is rendered. Termination benefits are recognised as an expenses as and when paid.

b) The Gratuity liability in respect of employees of the Company (except wholetime Directors and new employees ) is covered through a policy taken by a trust established under the Group Gratuity Scheme with Life Insurance Corporation of India (LIC). The liability is determined and provided for based on an actuarial valuation performed by LIC.

c) Provision for leave encashment and Gratuity liability of wholetime Directors and new employees , which are defined benefits has been ascertained on an actuarial valuation performed by an independent actuary as at the Balance Sheet date.

10 FOREIGN CURRENCY TRANSACTIONS :

Exchange difference arising from foreign currency transactions relating to import/export of goods are dealt with in the Profit and Loss Account. Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Profit and Loss Account.

11 SEGMENT ACCOUNTING :

a) The accounting policies applicable to the reportable segments are same as those used in the preparation of the financial statements.

b) Items of Income and Expenditure, Assets and Liabilities (including Advance Tax, Borrowings, Provision for Taxation and Deferred Tax Liability ) which are not directly attributable / identifiable / allocable on a reasonable basis to a business segment are shown as unallocated.

12 TAXATION :

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Company''s case. Minimum Alternate Tax (MAT) is paid in accordance with the tax law. This gives rise to future economic benefit in the form of tax credit against future income tax liability. The company reviews the position of the MAT credit entitlements at each balance sheet date and recognises the same, if there is convincing evidence that the company will utilise the same for payment of normal tax during the specified period and the resultant credit can be measured reliably.

b) Deferred tax for timing differences between tax profit and book profit is accounted for using the tax rates and laws that have been enacted or subsequently enacted as on the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

13 IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

14 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS :

a) Provisions are recognised when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimate.

b) Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2013

1 BASIS OF PREPARATION OF FINANCIAL STATEMENT

a) The accounts have been prepared on historical cost convention under accrual method of accounting and as a going concern concept.

b) Accounting policies not specifically referred to otherwise are consistent and in accordance with the accounting principles generally accepted as recommended by The Institute of Chartered Accountants of India (ICAI).

2 REVENUE RECOGNITION :

a) Revenue is recognised on completion of sale and rendering of services.

b) Income and expenditure are recognised on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of interest recoverable from parties for delayed retirement of documents and leave travel allowance payable to employees, the same continue to be accounted for as and when received / settled. Customers'' claims are accounted for as and when arise / settled on the basis of joint performance analysis/assessment.

c) Sales constitutes Paper Mills Products, Wind Power, etc and includes packing charges, excise duty and sales tax are net of discounts & returns in respect of earlier years.

d) Export Incentives are recognised on post export basis on entitlement rates.

e) Government grants are recognised on receipt / reasonable ascertainment of ultimate collection thereof.

3 USE OF ESTIMATES

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

4 FIXED ASSETS AND DEPRECIATION & AMORTISATION

a) Tangible Assets (other than those which have been revalued) are stated at cost of acquisition or construction inclusive of freight, duties and other directly attributable costs of bringing the assets in its working condition for its intended use, less depreciation. In case of revalued assets, as at the close of the year, the book value is also inclusive of revaluations made.

b) Depreciation on all tangible assets other than Wind Power Plants is provided on "straight line method" and on Wind Power Plant on "written down value method" as per the rates prescribed in Schedule XIV to the Companies Act,1956.

c) Amortisation of Intangible Assets includes (a) leasehold land over the period of lease and (b) Computer software in the year of of purchase / use.

d) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

e) Pre-operative expenditure are allocated on the respective assets in the year of capitalisation.

5 BORROWING COST :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of cost of such assets. All other borrowing costs are charged to revenue.

6 INVESTMENTS :

Investments intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost. Provision for diminution in value of investments is made to recognise a decline, other than temporary in the value of investments. Investments other than the long term investments being current investments are valued at cost or market value whichever is lower.

7 INVENTORIES :

a) Inventories are valued at lower of cost or net realisable value. Cost of stores and spares, raw materials, packing materials, trading and other products is determined on weighted average basis except Raw Material at Jaipur Unit which is valued at specific cost. Scrap is valued at estimated market value. Cost of Finished Stock and Work-in- Progress for woven wire cloth is determined on absorption costing method. Value of Finished Goods includes Excise Duty.

b) Provisions are made on determination of obsolete and unserviceable stocks found on physical verification.

8 RESEARCH AND DEVELOPMENT EXPENDITURE :

Revenue expenditure on research and development is charged as an expense in the year in which it is incurred under respective heads of accounts. Expenditure which results in the creation of capital assets is capitalised and depreciation is provided on such assets as applicable.

9 EMPLOYEE BENEFITS :

a) Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the contributions to recognised funds are charged to the Profit and Loss Account of the year when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions. Other short term employee benefits are recognised as expenses at the un-discounted amount in the Profits Loss Account of the year in which the related service is rendered. Termination benefits are recognised as an expenses as and when paid.

b) The Gratuity liability in respect of employees of the Company (except wholetime Directors) is covered through a policy taken by a trust established under the Group Gratuity Scheme with Life Insurance Corporation of India (LIC). The liability is determined and provided for based on an actuarial valuation performed by LIC.

c) Provision for leave encashment and Gratuity liability of wholetime Directors, which are defined benefits has been ascertained on an actuarial valuation performed by an independent actuary as at the Balance Sheet date.

10 FOREIGN CURRENCY TRANSACTIONS :

Exchange difference arising from foreign currency transactions relating to import/export of goods are dealt with in the Profit and Loss Account. Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Profit and Loss Account.

11 SEGMENT ACCOUNTING:

a) The accounting policies applicable to the reportable segments are same as those used in the preparation of the financial statements.

b) Items of Income and Expenditure, Assets and Liabilities (including Advance Tax, Borrowings, Provision for Taxation and Deferred Tax Liability ) which are not directly attributable / identifiable / allocable on a reasonable basis to a business segment are shown as unallocated.

12 TAXATION:

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Company''s case. Minimum Alternate Tax (MAT) is paid in accordance with the tax law. This gives rise to future economic benefit in the form of tax credit against future income tax liability. The company reviews the position of the MAT credit entitlements at each balance sheet date and recognises the same, if there is convincing evidence that the company will utilise the same for payment of normal tax during the specified period and the resultant credit can be measured reliably.

b) Deferred tax for timing differences between tax profit and book profit is accounted for using the tax rates and laws that have been enacted or subsequently enacted as on the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

13 IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

14 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSETS :

a) Provisions are recognised when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimate.

b) Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

1. BASIS OF PREPARATION OF FINANCIAL STATEMENT

a) The accounts have been prepared on historical cost convention under accrual method of accounting and as a going concern concept.

b) Accounting policies not specifically referred to otherwise are consistent and in accordance with the accounting principles generally accepted as recommended by The Institute of Chartered Accountants of India.

2. REVENUE RECOGNITION :

a) Revenue is recognised on completion of sale and rendering of services.

b) Income and expenditure are recognised on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of interest recoverable from parties for delayed retirement of documents and leave travel allowance payable to employees, the same continue to be accounted for as and when received / settled. Customers' claims are accounted for as and when arise / settled on the basis of joint performance analysis/ assessment.

c) Sales includes packing charges, excise duty and sales tax are net of discounts & returns in respect of earlier years.

d) Export Incentives are recognised on post export basis on entitlement rates.

e) Government grants are recognised on receipt / reasonable ascertainment of ultimate collection thereof.

3. USE OF ESTIMATES

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

4. FIXED ASSETS AND DEPRECIATION & AMORTISATION

a) Tangible Assets (other than those which have been revalued) are stated at cost of acquisition or construction inclusive of freight, duties and other directly attributable costs of bringing the assets in its working condition for its intended use, less depreciation. In case of revalued assets , as at the close of the year, the book value is also inclusive of revaluations made.

b) Depreciation on all tangible assets other than Wind Power Plants is provided on "straight line method" and on Wind Power Plant on "Written down value method" as per the rates prescribed in Schedule XIV to the Companies Act,1956.

c) Amortisation of Intangible Assets includes (a) leasehold land over the period of lease and (b) Computer software : in the year of of purchase / use.

d) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

e) Pre-operative expenditure are allocated on the respective assets in the year of capitalisation.

5. BORROWING COST :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of cost of such assets. All other borrowing costs are charged to revenue.

6. INVESTMENTS :

Investments intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost. Provision for diminution in value of investments is made to recognise a decline, other than temporary in the value of investments. Investments other than the long term investments being current investments are valued at cost or market value whichever is lower.

7. INVENTORIES :

a) Inventories are valued at lower of cost or net realisable value. Cost of stores and spares, raw materials, packing materials, trading and other products is determined on weighted average basis except Raw Material at Jaipur Unit which is valued at specific cost. Scrap is valued at estimated market value. Cost of Finished Stock and Work in Progress for woven wire cloth is determined on absorption costing method. Value of Finished Goods includes Excise Duty.

b) Provisions are made on determination of obsolete and unserviceable stocks found on physical verification.

8. RESEARCH AND DEVELOPMENT EXPENDITURE :

Revenue expenditure on research and development is charged as an expense in the year in which it is incurred under respective heads of accounts. Expenditure which results in the creation of capital assets is capitalised and depreciation is provided on such assets as applicable.

9. EMPLOYEE BENEFITS :

a) Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the contributions to recognised funds are charged to the Profit and Loss Account of the year when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions. Other short term employee benefits are recognised as expenses at the un-discounted amount in the Profit & Loss Account of the year in which the related service is rendered. Termination benefits are recognised as an expenses as and when paid.

b) The Gratuity liability in respect of employees of the Company (except wholetime Directors) is covered through a policy taken by a trust established under the Group Gratuity Scheme with Life Insurance Corporation of India (LIC). The liability is determined and provided for based on an actuarial valuation performed by LIC .

c) Provision for leave encashment and Gratuity liability of wholetime Directors, which are defined benefits has been ascertained on an actuarial valuation performed by an independent actuary as at the Balance Sheet date.

10. FOREIGN CURRENCY TRANSACTIONS :

Exchange difference arising from foreign currency transactions relating to import/export of goods are dealt with in the Profit and Loss Account. Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Profit and Loss Account.

11. SEGMENT ACCOUNTING :

a) The accounting policies applicable to the reportable segments are same as those used in the preparation of the financial statements.

b) Items of Income and Expenditure, Assets and Liabilities (including Advance Tax, Borrowings, Provision for Taxation and Deferred Tax Liability ) which are not directly attributable / identifiable / allocable on a reasonable basis to a business segment are shown as unallocated.

12. TAXATION :

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Company's case.

b) Deferred tax for timing differences between tax profit and book profit is accounted for using the tax rates and laws that have been enacted or subsequently enacted as on the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

13. IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

14. PROVISIONS.CONTINGENT LIABILITY AND CONTINGENT ASSETS :

a) Provisions are reognised when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimate.

b) Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements


Mar 31, 2011

A) GENERAL:

1) The accounts have been prepared on historical cost convention under accrual method of accounting and as a going concern concept.

2) Accounting policies not specifically referred to otherwise are consistent and in accordance with the accounting principles generally accepted as recommended by The Institute of Chartered Accountants of India.

B) REVENUE RECOGNITION :

1) Revenue is recognised on completion of sale and rendering of services.

2) Income and expenditure are recognised on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of interest recoverable from parties for delayed retirement of documents and leave travel allowance payable to employees, the same continue to be accounted for as and when received / settled. Customers' claims are accounted for as and when arise / settled on the basis of joint performance analysis / assessment.

3) Sales includes export incentives, packing charges, excise duty, sales tax & VAT and are net of discounts & returns in respect of earlier years.

4) Export Incentives are recognised on post export basis on entitlement rates.

5) Government grants are recognised on receipt / reasonable ascertainment of ultimate collection thereof

C) FIXED ASSETS:

1) Fixed Assets (other than those which have been revalued) are stated at cost of acquisition or construction inclusive of freight, duties and other directly attributable costs of bringing the assets in its working condition for its intended use, less depreciation. In case of revalued assets, as at the close of the year, the book value is also inclusive of revaluations made

2) Depreciation on all fixed assets other than Wind Power Plants is provided on "straight line method" and on Wind Power Plant on "Written down value method" as per the rates prescribed in Schedule XIV to the Companies Act. 1956. Depreciation also includes amortisation of (a) leasehold land over the period of lease and (b) Intangible assets (computer software ) in the year of purchase/use.

3) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

4) Pre-operative expenditure are allocated on the respective assets in the year of capitalisation.

D) BORROWING COST :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of cost of such assets, All other borrowing costs are charged to revenue.

E) INVESTMENTS :

Investments intended to be held for more than a year from the date of acquisition are classified as long term investments and are carried at cost. Provision for diminution in value of investments is made to recognise a decline, other than temporary in the value of investments. Investments other than the long term investments being current investments are valued at cost or market value whichever is lower.

F) INVENTORIES :

1) Inventories are valued at lower of cost or net realisable value. Cost of stores and spares, raw materials, packing materials, trading and other products is determined on weighted average basis except Raw Material at Jaipur Unit which is valued at specific cost. Scrap is valued at estimated market value. Cost of Finished Stock and Work in Progress is determined on absorption costing method. Value of Finished Goods includes Excise Duty.

2) Provisions are made on determination of obsolete and unserviceable stocks found on physical verification.

G) RESEARCH AND DEVELOPMENT EXPENDITURE :

1) Capital Expenditure is included in Fixed Assets & Capital Work-in-Progress and depreciation is provided at the respective applicable rates.

2) Revenue Expenditure is charged off in the year in which they are incurred.

H) EMPLOYEE BENEFITS :

1) Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the contributions to recognised funds are charged to the Profit and Loss Account of the year when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions. Other short term employee benefits are recognised as expenses at the un-discounted amount in the Profit & Loss Account of the year in which the related service is rendered. Termination benefits are recognised as an expenses as and when paid.

2) The Gratuity liability in respect of employees of the Company (except wholetime Directors) is covered through a policy taken by a trust established under the Group Gratuity Scheme with Life Insurance Corporation of India (LIC). The liability is determined and provided for based on an actuarial valuation performed by LIC.

3) Provision for leave encashment and Gratuity liability of wholetime Directors, which are defined benefits has been ascertained on an actuarial valuation performed by an independent actuary as at the Balance Sheet date.

I) FOREIGN CURRENCY TRANSACTIONS:

Exchange difference arising from foreign currency transactions relating to import/export of goods are dealt with in the Profit and Loss Account. Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Profit and Loss Account.

J) SEGMENT ACCOUNTING :

1) The accounting policies applicable to the reportable segments are same as those used in the preparation of the financial statements.

2) Items of Income and Expenditure, Assets and Liabilities (including Advance Tax, Borrowings, Provision for Taxation and Deferred Tax Liability) which are not directly attributable/identifiable/allocable on a reasonable basis to a business segment are shown as unallocated.

K) TAXATION:

1) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Company's case.

2) Deferred tax for timing differences between tax profit and book profit is accounted for using the tax rates and laws that have been enacted or subsequently enacted as on the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainty that these assets can be realised in future.

L) IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the profit and loss account If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

M) PROVISIONS,CONTINGENT LIABILITY AND CONTINGENT ASSETS :

1) Provisions are reognised when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each Balance Sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimate.

2) Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2010

A) GENERAL:

1) The accounts have been prepared on historical cost convention under accrual method of accounting and as a going concern concept.

2) Accounting policies not specifically referred to otherwise are consistent and in accordance with the accounting principles generally accepted as recommended by The Institute of Chartered Accountants of India.

B) REVENUE RECOGNITION :

1) Revenue is recognised on completion of sale and rendering of services.

2) Income and expenditure are recognised on accrual basis. However, since it is not possible to ascertain with reasonable accuracy, the quantum of accrual in respect of interest recoverable from parties for delayed retirement of documents and leave travel allowance payable to employees, the same continue to be accounted for as and when received/settled. Customers claims are accounted for as and when arise/settled on the basis of joint performance analysis/assessment.

3) Sales includes packing charges, excise duty, sales tax & VAT and are net of discounts & returns in respect of earlier years.

4) Government grants are recognized on receipt/reasonable ascertainment of ultimate collection thereof.

C) FIXED ASSETS :

1) Fixed Assets (other than those which have been revalued) are stated at cost of acquisition or construction inclusive of freight, duties and other directly attributable costs of bringing the assets in its working condition for its intended use, less depreciation. In case of revalued assets, as at the close of the year, the book value is also inclusive of revaluations made.

2) Depreciation on all fixed assets other than Wind Power Plants is provided on "straight line method" and on Wind Power Plant on "Written down value method" as per the rates prescribed in Schedule XIV to the Companies Act,1956. Depreciation also includes amortization of (a) leasehold land over the period of lease and (b) Intangible assets (computer software) in the year of purchase/use.

3) Insurance claims for damaged capital goods are accounted for on settlement of claims as per practice.

4) Pre-operative expenditure are allocated on the respective assets in the year of capitalisation.

D) BORROWING COST :

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of cost of such assets. All other borrowing costs are charged to revenue.

E) INVESTMENTS:

Investments intended to be held for more than a year from the date of acquisition are classified as long term investments and are carreid at cost. Provision for diminution in value of investments is made to recognize a decline, other than temporary in the value of investments. Investments other than the long term investments being current investments are valued at cost or market value whichever is lower.

F) INVENTORIES:

1) Inventories are valued at lower of cost or net realisable value. Cost of stores and spares, raw materials, packing materials, trading and other products is determined on weighted average basis except Raw Material at Jaipur Unit which is valued at specific cost. Scrap is valued at estimated market value. Cost of Finished Stock and Work in Progress is determined on absorption costing method. Value of Finished Goods includes Excise Duty.

2) Provisions are made on determination of obsolete and unserviceable stocks found on physical verification.

G) RESEARCH AND DEVELOPMENT EXPENDITURE :

1) Capital Expenditure is included in Fixed Assets & Capital Work-in-Progress and depreciation is provided at the respective applicable rates.

2) Revenue Expenditure is charged off in the year in which they are incurred.

H) EMPLOYEE BENEFITS :

1) Employee benefits in the form of Provident Fund, ESIC and Labour Welfare Fund are considered as defined contribution plan and the contributions to recognised funds are charged to the Profit and Loss Account of the year when the contributions are due, as per the provisions of respective statutes. The company has no further obligations beyond its stipulated contributions. Other short term employee benefits are recognised as expenses at the un-discounted amount in the Profit & Loss Acoount of the year in which the related service is rendered. Termination benefits are recognised as an expenses as and when paid.

2) The Company has taken group gratuity policy with Life Insurance Corporation of India (DC) for future payment of Gratuity liability. The gratuity liability is determined and provided for based on an actuarial valuation performed by LIC.

3) Provision for leave encashment, which is a defined benefit has been ascertained on an actuarial valuation by an independent actuary as at the Balance Sheet date.

I) FOREIGN CURRENCY TRANSACTIONS :

Exchange difference arising from foreign currency transactions relating to import/export of goods are dealt with in the Profit and Loss Account. Foreign Currency assets and liabilities are restated at the rates ruling at the end of the year and exchange difference arising out of such transactions are dealt with in the Profit and Loss Account.

J) SEGMENT ACCOUNTING:

1) The accounting policies applicable to the reportable segments are same as those used in the preparation of the financial statements.

2) Items of Income and Expenditure, Assets and Liabilities (including Advance Tax, Borrowings, Provision for Taxation and Deferred Tax Liability) which are not directly attributable/ identifiable/ allocable on a reasonable basis to a business segment are shown as unallocated.

K) TAXATION :

1) Provision for current tax is made and retained in the acounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and also considering assessment orders and decisions of appellate authorities in the Companys case.

2) Deferred tax for timing differences between tax profit and book profit is accounted for using the tax rates and laws that have been enacted or subsequently enacted as on the Balance Sheet date. Deferred tax assets are recognised to the extent there is reasonable certainity that these assets can be realised in future.

L) IMPAIRMENT OF ASSETS :

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

M) PROVISIONS,CONTINGENT LIABILITY AND CONTINGENT ASSETS :

1) Provisions are reognised when there is a present obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at each balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the best current estimate.

2) Contingent Liabilities are not provided for in the accounts and are separately shown in the Notes on Accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

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