Accounting Policies of ACS Technologies Ltd. Company

Mar 31, 2025

2 Significant Accounting Policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Indian Accounting
Standards (referred to as "Ind AS") as notified under the Companies (Indian Accounting
Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013 (as amended from
time to time) and presentation requirements of Division II of Schedule III to the Companies
Act, 2013, (Ind AS compliant Schedule III), as applicable to the standalone financial statement.

These financial statements have been prepared in Indian Rupee which is also the functional
currency of the Company and all values are rounded to the thousands, except when otherwise
indicated. These financial statements have been prepared on historical cost basis, except for
certain financial assets and liabilities which are measured at fair value or amortized cost at the
end of each reporting period, as explained in the accounting policies below.

2.2 Significant accounting judgements, estimates and assumptions.

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

Critical accounting estimates

i. Goodwill: Excess consideration paid over business value transferred under
scheme of arrangement is considered as Goodwill and will be impaired over a
period of time on straight line basis. Goodwill arising on business combinations is
carried at cost, net of accumulated impairment losses. Goodwill is not amortized
but is tested for impairment annually, or more frequently if indicators of
impairment exist, in accordance with Ind AS 36 - Impairment of Assets.

ii. Taxes: Deferred tax assets are recognized to the extent that it is probable that
taxable profit will be available against which the same can be utilized. A significant
management judgement is required to determine the amount of deferred tax assets
that can be recognized, based upon the likely timing and the level of future taxable
profits together with future tax planning strategies.

iii. Provisions and Contingent Liability: The timing of recognition and quantification
of the liability (including litigations) requires the application of judgement to
existing facts and circumstances, which can be subject to change. The carrying
amounts of provisions and liabilities are reviewed regularly and revised to take
account of changing facts and circumstances.

2.3 Current versus non-current classification

The Company presents assets and liabilities in the standalone balance sheet based on
current/ non-current classification.

An asset is treated as current when it is:

i. "Expected to be realized or intended to be sold or consumed in normal operating
cycle,"

ii. Held primarily for the purpose of trading,

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

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

All other assets are classified as non-current.

A liability is current when:

i. It is expected to be settled in the company''s normal operating cycle.

ii. It is held primarily for the purpose of being traded;

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

iv. The company does not have an unconditional right to defer settlement of the
liability for at least twelve months after the reporting date. Terms of a liability that
could, at the option of the counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.
Operating cycle for current and non-current classification

Operating cycle is the time between the acquisition of assets for processing and their
realization in cash or cash equivalents. The company has taken Operating cycle to be twelve
months.

2.4 Fair value measurement of financial instruments

The Company measures financial instruments, such as, Investments at fair value at each
balance sheet date using valuation techniques. Fair value is the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the
presumption that the transaction to sell the asset or transfer the liability takes place either:

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

b) In the absence of a principal market, in the most advantageous market for the asset
or liability

The principal or the most advantageous market must be accessible by the Company. The fair
value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s
ability to generate economic benefits by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, maximizing the use of relevant
observable inputs and minimizing the use of unobservable inputs.

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

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

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

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable For assets and liabilities that are recognized in the
standalone financial statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorization (based
on the lowest level input that is significant to the fair value measurement as a whole) at the
end of each reporting period.

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

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

2.5 Property, Plant and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if
capitalization criteria are met, directly attributable cost of bringing the asset to its working
condition for the intended use and initial estimate of decommissioning, restoring and similar
liabilities. Any trade discounts and rebates are deducted in arriving at the purchase price.
Such a cost includes the cost of replacing part of the plant and equipment. When significant
parts of plant and equipment are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives. Likewise, when a major
inspection is performed, its cost is recognized in the carrying amount of the plant and

equipment as a replacement if the recognition criteria are satisfied. All other repair and
maintenance costs are recognized in profit or loss as incurred. Gains or losses arising from
derecognition of Property, plant and equipment are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized in the
statement of profit and loss when the asset is derecognized.

2.6 Intangible asset

Intangible assets acquired separately are measured on initial recognition at cost. The cost of
intangible assets acquired in a business combination is their fair value at the date of
acquisition. Following initial recognition, intangible assets are carried at cost less any
accumulated amortization and accumulated impairment losses. The useful lives of intangible
assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized
over the useful economic life and assessed for impairment whenever there is an indication
that the intangible asset may be impaired. The amortization period and the amortization
method for an intangible asset with a finite useful life are reviewed at least at the end of each
reporting period with the affect of any change in the estimate being accounted for on a
prospective basis. Changes in the expected useful life or the expected pattern of consumption
of future economic benefits embodied in the asset are considered to modify the amortization
period or method, as appropriate, and are treated as changes in accounting estimates. The
amortization expense on intangible assets with finite lives is recognized in the statement of
profit and loss unless such expenditure forms part of carrying value of another asset.

Gains or losses arising from derecognition of an intangible asset are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and are
recognized in the statement of profit and loss when the asset is derecognized.

2.7 Depreciation and Amortization

Goodwill arising on business combinations is carried at cost, net of accumulated impairment
losses. Goodwill is not amortized but is tested for impairment annually, or more frequently if
indicators of impairment exist, in accordance with Ind AS 36 - Impairment of Assets.

2.8 "Impairment of Financial and Non-Financial Assets"

"The impairment provisions for Financial Assets are based on assumptions about risk of
default and expected cash loss rates. The Company uses judgement in making these
assumptions and selecting the inputs to the impairment calculation, based on Company''s past
history, existing market conditions as well as forward looking estimates at the end of each
reporting period."

In the case of non-financial assets, assessment of impairment indicators involves consideration
of future risks. Further, the company estimates the assets'' recoverable amount, which is higher
of an asset''s or Cash Generating Units (CGU''s) fair value less costs of disposal and its value
in use.

In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. In determining fair value less costs of disposal, recent
market transactions are taken into account, if no such transactions can be identified, an
appropriate valuation model is used.

2.9 Revenue Recognition

The company is primarily engaged in the business as "System Integrator, Security and
Surveillance, IOT Solutions, Software Products and Services" in the area of Information
Technology.

Revenue from operation

Revenues from customer contracts are considered for recognition and measurement when the
contract has been approved by the parties, in writing, to the contract, the parties to contract
are committed to perform their respective obligations under the contract, and the contract is
legally enforceable. Revenue is recognized upon transfer of control of promised products or
services ("performance obligations") to customers in an amount that reflects the consideration
the Company has received or expects to receive in exchange for these products or services
("transaction price"). When there is uncertainty as to collectability, revenue recognition is
postponed until such uncertainty is resolved.

Contract balances

i. Trade receivables: The amounts billed on the customer for work performed and are
unconditionally due for payment i.e., only passage of time is required before payment falls
due, are disclosed in the balance sheet as trade receivables.

ii. Contract liabilities: A contract liability is the obligation to transfer goods or services to a
customer for which the Company has received consideration or is due from the customer. If
a customer pays consideration before the Company transfers goods or services to the
customer, a contract liability is recognised when the payment is made or the payment is due
(whichever is earlier).

Contract liabilities are recognised as revenue when the Company performs under the contract.
Interest income

Interest income from a financial asset is recognised using an effective interest rate method.
Dividend

Dividend income is recognised when the Company''s right to receive the payment is
established, which is generally when shareholders approve the dividend.

2.10 Taxes on income
Current income tax

Tax expense for the year comprises current and deferred tax. The tax currently payable is
based on taxable profit for the year. Taxable profit differs from net profit as reported in the
standalone statement of profit and loss because it excludes items of income or expense that
are taxable or deductible in other years and it further excludes items that are never taxable or
deductible. The Company''s liability for current tax is calculated using the tax rates and tax
laws that have been enacted or substantively enacted by the end of the reporting period.

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

Deferred tax

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

"Deferred tax liabilities are recognised for all taxable temporary differences, except:"

i. When the deferred tax liability arises from the initial recognition of goodwill or an
asset or liability in a transaction that is not a business combination and, at the time
of the transaction, affects neither the accounting profit nor taxable profit or loss.

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

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

i. When the deferred tax asset relating to the deductible temporary difference arises
from the initial recognition of an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.

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

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilised. Unrecognized deferred tax assets are re¬
assessed at each reporting date and are recognised to the extent that it has become probable
that future taxable profits will allow the deferred tax asset to be recovered.

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

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or
loss (either in other comprehensive income or in equity). Deferred tax items are recognised in
correlation to the underlying transaction either in OCI or directly in equity.

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

"All other acquired tax benefits realized are recognised in profit or loss."

2.11 Earnings Per Share

Basic earnings per equity share is computed by dividing the net profit attributable to the
equity shareholders of the Company by the weighted average number of equity shares
outstanding during the period. The weighted average number of equity shares outstanding
during the period is adjusted for events such as fresh issue, bonus issue that have changed the
number of equity shares outstanding, without a corresponding change in resources.

Diluted earnings per equity share is computed by dividing the net profit attributable to the
equity shares holders of the Company by the weighted average number of equity shares
considered for deriving basic earnings per equity share and also the weighted average number
of equity shares that could have been issued upon conversion of all dilutive potential equity
shares. Potential equity shares are deemed to be dilutive only if their conversion to equity
shares would decrease the net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning of the period, unless
they have been issued at a later date. Dilutive potential equity shares are determined
independently for each period presented.

2.12 Leases

Where the Company is lessee

The Company applies a single recognition and measurement approach for all leases, except
for short-term leases and leases of low-value assets. The Company recognises lease liabilities
to make lease payments and right-of-use assets representing the right to use the underlying
assets.

i) Right-of-use asset

"The Company recognises right-of-use assets at the commencement date of the lease (i.e., the
date the underlying asset is available for use). Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment losses, and adjusted for any remeasurement
of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or before the
commencement date less any lease incentives received. Right-of-use assets are depreciated on
a straight-line basis over the shorter of the lease term and the estimated useful lives of the
assets.

The right-of-use assets are also subject to impairment."

ii) Lease Liabilities

At the commencement date of the lease, the company recognises lease liabilities measured at
the present value of lease payments to be made over the lease term. The lease payments
include fixed payments (including in substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on an index or a rate, and amounts expected
to be paid under residual value guarantees. The lease payments also include the exercise price
of a purchase option reasonably certain to be exercised by the Company and payments of
penalties for terminating the lease, if the lease term reflects the Company exercising the option
to terminate. Variable lease payments that do not depend on an index or a rate are recognised
as expenses (unless they are incurred to produce inventories) in the period in which the event
or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental
borrowing rate at the lease commencement date because the interest rate implicit in the lease
is not readily determinable. After the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced for the lease payments made. In
addition, the carrying amount of lease liabilities is remeasured if there is a modification, a
change in the lease term, a change in the lease payments (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change
in the assessment of an option to purchase the underlying asset.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e.,
those leases that have a lease term of 12 months or less from the commencement date and do
not contain a purchase option). It also applies the lease of low-value assets recognition
exemption to leases of office equipment that are considered to be low value. Lease payments
on short-term leases and leases of low-value assets are recognised as expense on a straight¬
line basis over the lease term.

2.13 Foreign currencies transactions and translation

The Company''s financial statements are presented in Indian Rupee, which is also the
Company''s functional currency.

In preparing the financial statements, transactions in the currencies other than the Company''s
functional currency are recorded at the rates of exchange prevailing on the date of transaction.
At the end of each reporting period, monetary items denominated in the foreign currencies
are re-translated at the rates prevailing at the end of the reporting period. Non-monetary items
carried at fair value that are denominated in foreign currencies are retranslated at the rates
prevailing on the date when the fair value was determined. Non-monetary items are
measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences arising on the retranslation or settlement of other monetary items are
included in the statement of profit and loss for the period.

2.14 Cash and Cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short¬
term deposits with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and
cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding
bank overdrafts as they are considered an integral part of the Company''s cash management.

2.15 Employee benefits
Defined benefit plans

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial
valuation on Projected Unit Credit Method made at the end of the financial year. Actuarial
gains and losses for both defined benefit plans are recognized in full in the period in which
they occur in the statement of OCI.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on the net defined benefit liability and the return
on plan assets (excluding amounts included in net interest on the net defined benefit liability),
are recognised immediately in the standalone balance sheet with a corresponding debit or
credit to retained earnings through OCI in the period in which they occur. Re-measurements
are not reclassified to profit or loss in subsequent periods.

"Net interest is calculated by applying the discount rate to the net defined benefit liability or
asset. Past service costs are recognised in profit or loss on the earlier of:

• The date of the plan amendment or curtailment, and

• The date that the Company recognises related restructuring costs

Termination benefits

The Company recognizes termination benefit as a liability and an expense when the Company
has a present obligation as a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. If the termination benefits fall due more than 12
months after the balance sheet date, they are measured at present value of future cash flows
using the discount rate determined by reference to market yields at the balance sheet date on
government bonds.

Compensated Absences

The Company treats accumulated leave expected to be carried forward beyond twelve
months, as long-term employee benefit for measurement purposes. Such long-term
compensated advances are provided for based on the actuarial valuation using the projected
unit credit method at the year-end. Remeasurement gains/losses on defined benefit plans are
immediately taken to the Statement of Profit & Loss and are not deferred.

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Mar 31, 2024

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Indian Accounting Standards
(referred to as “Ind AS”) as notified under the Companies (Indian Accounting Standards) Rules, 2015
read with Section 133 of the Companies Act, 2013 (as amended from time to time) and presentation
requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule
III), as applicable to the standalone financial statement.

These financial statements have been prepared in Indian Rupee which is also the functional currency of
the Company and all values are rounded to the thousands, except when otherwise indicated. These
financial statements have been prepared on historical cost basis, except for certain financial assets and
liabilities which are measured at fair value or amortized cost at the end of each reporting period, as
explained in the accounting policies below.

2.2 Significant accounting judgements, estimates and assumptions.

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

i. Goodwill: Excess consideration paid over business value transferred under scheme of
arrangement is considered as Goodwill and will be impaired over a period of time on
straight line basis.

ii. Taxes: Deferred tax assets are recognized to the extent that it is probable that taxable profit
will be available against which the same can be utilized. A significant management
judgement is required to determine the amount of deferred tax assets that can be recognized,
based upon the likely timing and the level of future taxable profits together with future tax
planning strategies.

iii. Provisions and Contingent Liability: The timing of recognition and quantification of the
liability (including litigations) requires the application of judgement to existing facts and
circumstances, which can be subject to change. The carrying amounts of provisions and
liabilities are reviewed regularly and revised to take account of changing facts and
circumstances.

2.3 Current versus non-current classification

The Company presents assets and liabilities in the standalone balance sheet based on current/ non¬
current classification.

An asset is treated as current when it is:

i. "Expected to be realized or intended to be sold or consumed in normal operating cycle,"

ii. Held primarily for the purpose of trading,

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

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

All other assets are classified as non-current.

A liability is current when:

i. It is expected to be settled in the company’s normal operating cycle.

ii. It is held primarily for the purpose of being traded;

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

iv. The company does not have an unconditional right to defer settlement of the liability
for at least twelve months after the reporting date. Terms of a liability that could, at the
option of the counterparty, result in its settlement by the issue of equity instruments do not
affect its classification.

All other liabilities are classified as non-current.

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

Operating cycle for current and non-current classification

Operating cycle is the time between the acquisition of assets for processing and their realization in cash
or cash equivalents. The company has taken Operating cycle to be twelve months.

2.4 Fair value measurement of financial instruments

The Company measures financial instruments, such as, Investments at fair value at each balance sheet
date using valuation techniques. Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date. The
fair value measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:

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

b) In the absence of a principal market, in the most advantageous market for the asset
or liability

The principal or the most advantageous market must be accessible by the Company. The fair value of
an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.

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

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

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

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable For assets and liabilities that are recognized in the standalone financial
statements on a recurring basis, the Company determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant
to the fair value measurement as a whole) at the end of each reporting period.

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

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

2.5 Property, Plant and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated
impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria
are met, directly attributable cost of bringing the asset to its working condition for the intended use and
initial estimate of decommissioning, restoring and similar liabilities. Any trade discounts and rebates
are deducted in arriving at the purchase price. Such a cost includes the cost of replacing part of the plant
and equipment. When significant parts of plant and equipment are required to be replaced at intervals,
the Company depreciates them separately based on their specific useful lives. Likewise, when a major
inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a
replacement if the recognition criteria are satisfied. All other repair and maintenance costs are
recognized in profit or loss as incurred. Gains or losses arising from derecognition of Property, plant
and equipment are measured as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

2.6 Intangible asset

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their fair value at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less any accumulated amortization and accumulated
impairment losses. The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful economic life and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortization
period and the amortization method for an intangible asset with a finite useful life are reviewed at least
at the end of each reporting period with the affect of any change in the estimate being accounted for on
a prospective basis. Changes in the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset are considered to modify the amortization period or method,
as appropriate, and are treated as changes in accounting estimates. The amortization expense on
intangible assets with finite lives is recognized in the statement of profit and loss unless such
expenditure forms part of carrying value of another asset.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of
profit and loss when the asset is derecognized.

* During the year, the company has recognised goodwill amounting to Rs._26,99,00,470/- arising out
of the scheme of arrangement of merger of ACS Technologies Limited. The company is amortising
goodwill over a period of 10 years on straight line basis from the year 2023-24 as the scheme of
arrangement order has pronounced on 24th March, 2023 and received in the month of April 2023.

2.7 Depreciation and Amortization

Depreciation on Property, plant and equipment is provided on the written down value basis over the
useful lives of assets specified in Schedule II to the Companies Act, 2013.

Software being intangible asset is amortized on written down value basis over a period of 6 years.

Goodwill being intangible asset is amortized on straight line basis over a period of 10 years.

The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate. The amortization period
and the amortization method are reviewed at least at each financial year end.

2.8 "Impairment of Financial and Non-Financial Assets"

"The impairment provisions for Financial Assets are based on assumptions about risk of default and
expected cash loss rates. The Company uses judgement in making these assumptions and selecting the
inputs to the impairment calculation, based on Company’s past history, existing market conditions as
well as forward looking estimates at the end of each reporting period."

In the case of non-financial assets, assessment of impairment indicators involves consideration of future
risks. Further, the company estimates the assets’ recoverable amount, which is higher of an asset’s or
Cash Generating Units (CGU’s) fair value less costs of disposal and its value in use.

In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken
into account, if no such transactions can be identified, an appropriate valuation model is used.

2.9 Revenue Recognition

The company is primarily engaged in the business as “System Integrator, Security and Surveillance,
IOT Solutions, Software Products and Services” in the area of Information Technology.

Revenue from operation

Revenues from customer contracts are considered for recognition and measurement when the contract
has been approved by the parties, in writing, to the contract, the parties to contract are committed to
perform their respective obligations under the contract, and the contract is legally enforceable. Revenue
is recognized upon transfer of control of promised products or services (“performance obligations”) to
customers in an amount that reflects the consideration the Company has received or expects to receive
in exchange for these products or services (“transaction price”). When there is uncertainty as to
collectability, revenue recognition is postponed until such uncertainty is resolved.

Contract balances

i. Trade receivables: The amounts billed on the customer for work performed and are unconditionally
due for payment i.e., only passage of time is required before payment falls due, are disclosed in the
balance sheet as trade receivables.

ii. Contract liabilities: A contract liability is the obligation to transfer goods or services to a customer
for which the Company has received consideration or is due from the customer. If a customer pays
consideration before the Company transfers goods or services to the customer, a contract liability is
recognised when the payment is made or the payment is due (whichever is earlier).

Contract liabilities are recognised as revenue when the Company performs under the contract.

Interest income

Interest income from a financial asset is recognised using an effective interest rate method.

Dividend

Dividend income is recognised when the Company''s right to receive the payment is established, which
is generally when shareholders approve the dividend.

2.10 Taxes on income
Current income tax

Tax expense for the year comprises current and deferred tax. The tax currently payable is based on
taxable profit for the year. Taxable profit differs from net profit as reported in the standalone statement
of profit and loss because it excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The Company’s liability for
current tax is calculated using the tax rates and tax laws that have been enacted or substantively enacted
by the end of the reporting period.

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

Deferred tax

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

"Deferred tax liabilities are recognised for all taxable temporary differences, except:"

i. When the deferred tax liability arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss.

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

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

i. When the deferred tax asset relating to the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction that is not a business combination
and, at the time of the transaction, affects neither the accounting profit nor taxable profit or
loss.

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

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred tax asset to be utilised. Unrecognized deferred tax assets are re-assessed at each reporting date
and are recognised to the extent that it has become probable that future taxable profits will allow the
deferred tax asset to be recovered.

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

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either
in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.

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

"All other acquired tax benefits realized are recognised in profit or loss."

2.11 Earnings Per Share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity
shareholders of the Company by the weighted average number of equity shares outstanding during the

period. The weighted average number of equity shares outstanding during the period is adjusted for
events such as fresh issue, bonus issue that have changed the number of equity shares outstanding,
without a corresponding change in resources.

Diluted earnings per equity share is computed by dividing the net profit attributable to the equity shares
holders of the Company by the weighted average number of equity shares considered for deriving basic
earnings per equity share and also the weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the net profit per share from continuing
ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of
the period, unless they have been issued at a later date. Dilutive potential equity shares are determined
independently for each period presented.

2.12 Leases

Where the Company is lessee

The Company applies a single recognition and measurement approach for all leases, except for short¬
term leases and leases of low-value assets. The Company recognises lease liabilities to make lease
payments and right-of-use assets representing the right to use the underlying assets.

i) Right-of-use asset

"The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred,
and lease payments made at or before the commencement date less any lease incentives received. Right-
of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated
useful lives of the assets.

The right-of-use assets are also subject to impairment."

ii) Lease Liabilities

At the commencement date of the lease, the company recognises lease liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include fixed payments
(including in substance fixed payments) less any lease incentives receivable, variable lease payments
that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The
lease payments also include the exercise price of a purchase option reasonably certain to be exercised
by the Company and payments of penalties for terminating the lease, if the lease term reflects the
Company exercising the option to terminate. Variable lease payments that do not depend on an index or
a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which
the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at
the lease commencement date because the interest rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is
remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g.,
changes to future payments resulting from a change in an index or rate used to determine such lease
payments) or a change in the assessment of an option to purchase the underlying asset.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those
leases that have a lease term of 12 months or less from the commencement date and do not contain a
purchase option). It also applies the lease of low-value assets recognition exemption to leases of office
equipment that are considered to be low value. Lease payments on short-term leases and leases of low-
value assets are recognised as expense on a straight-line basis over the lease term.

2.13 Foreign currencies transactions and translation

The Company’s financial statements are presented in Indian Rupee, which is also the Company’s
functional currency.

In preparing the financial statements, transactions in the currencies other than the Company’s functional
currency are recorded at the rates of exchange prevailing on the date of transaction. At the end of each
reporting period, monetary items denominated in the foreign currencies are re-translated at the rates
prevailing at the end of the reporting period. Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value
was determined. Non-monetary items are measured in terms of historical cost in a foreign currency are
not retranslated.

Exchange differences arising on the retranslation or settlement of other monetary items are included in
the statement of profit and loss for the period.

2.14 Cash and Cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk of
changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of
cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered
an integral part of the Company’s cash management.

2.15 Employee benefits
Defined benefit plans

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation
on Projected Unit Credit Method made at the end of the financial year. Actuarial gains and losses for
both defined benefit plans are recognized in full in the period in which they occur in the statement of
OCI.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined benefit liability and the return on plan assets
(excluding amounts included in net interest on the net defined benefit liability), are recognised
immediately in the standalone balance sheet with a corresponding debit or credit to retained earnings
through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss
in subsequent periods.

"Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. Past
service costs are recognised in profit or loss on the earlier of:

• The date of the plan amendment or curtailment, and

• The date that the Company recognises related restructuring costs

Termination benefits

The Company recognizes termination benefit as a liability and an expense when the Company has a
present obligation as a result of past event, it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. If the termination benefits fall due more than 12 months after the balance
sheet date, they are measured at present value of future cash flows using the discount rate determined
by reference to market yields at the balance sheet date on government bonds.

Compensated Absences

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long¬
term employee benefit for measurement purposes. Such long-term compensated advances are provided
for based on the actuarial valuation using the projected unit credit method at the year-end.

Remeasurement gains/losses on defined benefit plans are immediately taken to the Statement of Profit
& Loss and are not deferred.

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Mar 31, 2016

Company Overview

LN Industries India Limited (LNIIL) is a Public Limited Company incorporated and domiciled in India and has its Registered Office at Hyderabad, Telangana, India. The Company has its primary listings on the BSE Limited. The Company deals in manufacturing and trading of different dyed yarns.

1.1. Basis of Preparations of Financial Statements:

The Financial Statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the Historical Cost Convention methods in accordance with the generally accepted accounting standards as prescribed under Section 133 of the Companies Act, 2013 ("Act”) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been 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.

1.2. Use of Estimates:

The presentation of Financial Statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expense during the reporting period. Difference between the actual results and estimated are recognizes in the period in which the results are known / materialized.

1.3. Revenue Recognition:

Revenue is recognized from Sale of Goods where significant risks and rewards of ownership in respect of the goods are transferred to the buyer, and further no significant uncertainties exists regarding the amount of consideration that would be received from the sale of goods. Interest income is recognized on time end accrued basis.

1.4. Provision and Contingent Liabilities:

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of out flow of resources is remote, no provision or disclosure is made.

1.5. Tangible assets and capital work - in - progress:

Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized until such assets are ready for use. Capital work - in - progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date.

1.6. Intangible assets:

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

1.7. Depreciation and amortization:

Depreciation on tangible assets is provided on the straight line method over the useful lives of assets estimated by the Management. Depreciation for assets purchased / sold during a period is proportionately charged. Intangible are amortized over their respective individual estimated useful lives on a straight line basis, commencing from the date the assets is available to the Company for its use. The Management estimates the useful lives for the other fixed assets.

1.8. Impairment of Assets:

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

1.9. Investments:

Investments are classified into current investments and long-term investments. Current Investments are valued, scrip wise, at cost or fair value, whichever is lower. Long-term investments are valued at cost. Provision for diminution is made script wise to recognize a decline, other than temporary.

1.10.Inventories:

Items of inventories are measured lower of cost or net realizable value. Cost of inventories comprises of Cost of purchase, cost of conversions and other cost incurred in bringing them to their present location and condition I) Raw Materials, consumable, stores and packing material are valued at Cost. II) Stock - in - process are valued at estimated Cost. III) Finished Stocks are valued at estimate Cost or net realizable value whichever is less.

1.11. Employee Retirement Benefits:

Company''s contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account, Gratuity and Leave Encashment benefits are charged to Profit and Loss Account on the basis of actuarial valuation.

1.12. Foreign Currency Transactions:

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(b) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

1.13. Borrowing Costs:

Borrowing costs, which are directly attributable to the acquisition/ construction of fixed assets. Till the time such asset are ready for intended use are capitalized as part of the cost of the assets. Other borrowing costs are recognized as an expense in the year in which they are incurred.

1.14.Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is portable that there will be out flow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2014

1.1. Basis of Preparations of Financial Statements:

The Financial Statement has been prepared under the Historical Cost Convention methods in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the Company.

1.2. Use of Estimates:

The presentation of Financial Statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expense during the reporting period. Difference between the actual results and estimated are recognizes in the period in which the results are known / materialized.

1.3. Revenue Recognition:

Revenue is recognized from Sale of Goods where significant risks and rewards of ownership in respect of the goods are transferred to the buyer, and further no significant uncertainties exists regarding the amount of consideration that would be received from the sale of goods. Interest income is recognized on time end accrued basis.

1.4. Fixed Assets:

All Fixed Asses are stated at cost less accumulated deprecation. All costs including financing cost attributable to fixed assets till assets are ready for intended use are capitalized.

1.5. Depreciation:

Depreciation is provided on Straight Line Method at the rates and in the manner prescribed in Scheduled XIV of the Companies Act, 1956.

1.6. Impairment of Assets:

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

1.7. Investments:

Investments are classified into current investments and long-term investments. Current Investments are valued, scrip wise, at cost or fair value, whichever is lower. Long-term investments are valued at cost. Provision for diminution is made script wise to recognize a decline, other than temporary.

1.8. Inventories:

Items of inventories are measured lower of cost or net realizable value. Cost of inventories comprises of Cost of purchase, cost of conversions and other cost incurred in bringing them to their present location and condition I) Raw Materials, consumable, stores and packing material are valued at Cost. II) Stock - in - process are valued at estimated Cost. III) Finished Stocks are valued at estimate Cost or net realizable value whichever is less.

1.9. Employee Retirement Benefits:

Company''s contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account, Gratuity and Leave Encashment benefits are charged to Profit and Loss Account on the basis of actuarial valuation.

1.10. Foreign Currency Transactions:

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(b) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

1.11. Borrowing Costs:

Borrowing costs, which are directly attributable to the acquisition/ construction of fixed assets. Till the time such asset are ready for intended use are capitalized as part of the cost of the assets. Other borrowing costs are recognized as an expense in the year in which they are incurred.

1.12. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is portable that there will be out flow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2012

1.1 Basis of Preparations of Financial Statements:

The Financial Statement has been prepared under the Historical Cost Convention methods in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the Company.

1.2 Use of Estimates:

The presentation of Financial Statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expense during the reporting period. Difference between the actual results and estimated are recognizes in the period in which the results are known / materialized.

1.3 Revenue Recognition:

Revenue is recognized from Sale of Goods where significant risks and rewards of ownership in respect of the goods are transferred to the buyer, and further no significant uncertainties exists regarding the amount of consideration that would be received from the sale of goods.

1.4 Fixed Assets:

All Fixed Asses are stated at cost less accumulated deprecation. All costs including financing cost attributable to fixed assets till assets are ready for intended use are capitalized.

1.5 Depreciation:

Depreciation is provided on Straight Line Method at the rates and in the manner prescribed in Scheduled XIV of the Companies Act, 1956.

1.6 Impairment of Assets:

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

1.7 Investments:

Investments are classified into current investments and long-term investments. Current Investments are valued, scrip wise, at cost or fair value-, whichever is lower. Long-term investments are valued at cost. Provision for diminution is made script wise to recognize a decline, other than temporary.

1.8 Inventories:

Items of inventories are measured lower of cost or net realizable value. Cost of inventories comprises of Cost of purchase, cost of conversions and other cost incurred in bringing them to their present location and condition I) Raw Materials, consumable, stores and packing material are valued at Cost. II) Stock- in - process are valued at estimated Cost. Ill) Finished Stocks are valued at estimate Cost or net realizable value whichever is less.

1.9 Employee Retirement Benefits:

Company's contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account, Gratuity and Leave Encashment benefits are charged to Profit and Loss Account on the basis of actuarial valuation.

1.10 Foreign Currency Transactions:

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(b) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

1.11 Borrowing Costs:

Borrowing costs, which are directly attributable to the acquisition/ construction of fixed assets. Till the time such asset are ready for intended use are capitalized as part of the cost of the assets. Other borrowing costs are recognized as an expense in the year in which they are incurred. ,

1.12 Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is portable that there will be out flow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Sep 30, 2010

1. Basis of Preparations of Financial Statements:

The Financial Statement has been prepared under the Historical Cost Convention methods in accordance with the generally accepted accounting principles and the provision of the Companies Act, 1956, as adopted consistently by the Company.

2. Use of Estimates:

The presentation of Financial Statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expense during the reporting period. Difference between the actual results and estimated are recognizes in the period in which the results are known / materialized.

3. Revenue Recognition:

Revenue is recognized from Sale of Goods where significant risks and rewards of ownership in respect of the goods are transferred to the buyer, and further no significant uncertainties exists regarding the amount of consideration that would be received from the sale of goods.

4. Fixed Assets:

All Fixed Asses are stated at cost less accumulated deprecation. All costs including financing cost attributable to fixed assets till assets are ready for intended use are capitalized.

5. Depreciation:

Depreciation is provided on Straight Line Method at the rates and in the manner prescribed in Scheduled XIV of the Companies Act, 1956.

6. Impairment of Assets:

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

7. Investments:

Investments are classified into current investments and long-term investments. Current Investments are valued, scrip wise, at cost or fair value, whichever is lower. Long-term investments are valued at cost. Provision for diminution is made script wise to recognize a decline, other than temporary.

8. Inventories:

Items of inventories are measured lower of cost or net realizable value. Cost of inventories comprises of Cost of purchase, cost of conversions and other cost incurred in bringing them to their present location and condition I) Raw Materials, consumable, stores and packing material are valued at Cost. II) Stock - in - process are valued at estimated Cost. Ill) Finished Stocks are valued at estimate Cost or net realizable value whichever is less.

9. Employee Retirement Benefits:

Companys contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account, Gratuity and Leave Encashment benefits are charged to Profit and Loss Account on the basis of actuarial valuation.

10. Foreign Currency Transactions:

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(b) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and toss account except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

11. Borrowing Costs:

Borrowing costs, which are directly attributable to the acquisition/ construction of fixed assets. Till the time such asset are ready for intended use are capitalized as part of the cost of the assets. Other borrowing costs are recognized as an expense in the year in which they are incurred.

12. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is portable that there will be out flow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.