Accounting Policies of Ashtasidhhi Industries Ltd. Company

Mar 31, 2025

2. Significant Accounting policies

I. Statement of compliance

The financial statements have been prepared in accordance with Ind AS specified under the
section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 and the Companies (Accounting Standards) Amendment Rules, 2016.

II. Basis of preparation and presentation

The financial statements have been prepared on the historical cost basis except for certain
financial instruments that are measured at fair values at the end of each reporting period, as
explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for
goods and services.

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, regardless of
whether that price is directly observable or estimated using another valuation technique. In
estimating the fair value of an asset or a liability, the Company takes in to account the
characteristics of the asset or liability if market participants would take those characteristics
into account when pricing the asset or liability at the measurement date.

In addition, for financial reporting purposes, fair value measurements are categorized into
Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurements in its entirety,
which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date;

• Level 2 inputs are inputs other than quoted prices included within Level 1, that are
observable for the asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

III. Revenue recognition

Income from service rendered is recognised on accrual basis based on the terms of
agreements.

Dividend and interest income

Dividend income from investments is recognised when the shareholder''s right to receive
payment has been established (provided that it is probable that the economic benefits will
flow to the Company and the amount of income can be measured reliably).

Interest income from a financial asset is recognised when it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably. Interest
income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that asset''s net carrying amount on initial
recognition.

IV. Functional and Presentation Currency

The functional currency of the Company has been determined on the basis of the primary
economic environment in which it operates. The functional currency of the Company is INR.
The standalone financial statements are presented in Indian Rupees (Rs.) which is the
company''s presentation currency.

V. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to get
ready for their intended use or sale, are added to the cost of those assets, until such time as
the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in the Statement of Profit and Loss in the period in
which they are incurred.

VI. Employee Benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries,
annual leave and sick leave in the period the related service is rendered at the undiscounted
amount of the benefits expected to be paid in exchange for that service.

Liabilities recognised in respect of short-term employee benefits are measured at the
undiscounted amount of the benefits expected to be paid in exchange for the related service.

Post-employment and other long term employee benefits are recognized as an expense in the
profit & loss account for the year in which the liabilities are crystallized

VII. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

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

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future
economic benefits in the form of adjustment to future income tax liability, is considered as an
asset if there is convincing evidence that the Company will pay normal income tax.
Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly probable that
future economic benefit associated with it will flow to the Company.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable
temporary differences. Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that taxable profits will be available
against which those deductible temporary differences can be utilised. Such deferred tax assets
and liabilities are not recognised if the temporary difference arises from the initial recognition
(other than in a business combination) of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not
recognised if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with
investments in subsidiaries, except where the Company is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future. Deferred tax assets arising from deductible temporary differences
associated with such investments and interests are only recognised to the extent that it is
probable that there will be sufficient taxable profits against which to utilise the benefits of the
temporary differences and they are expected to reverse in the foreseeable future.

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

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

The measurement of deferred tax liabilities and assets reflects the tax consequences that
would follow from the manner in which the Company expects, at the end of the reporting
period, to recover or settle the carrying amount of its assets and liabilities.

For the purposes of measuring deferred tax liabilities and deferred tax assets on non¬
depreciable assets the carrying amounts of such properties are presumed to be recovered
entirely through sale.

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.

Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they are relate to items
that are recognised in other comprehensive income or directly in equity, in which case, the
current and deferred tax are also recognized in other comprehensive income or directly in
equity respectively.

VIII. Property, plant and equipment

The cost of property, plant and equipment comprises its purchase price net of any trade
discounts and rebates, any import duties and other taxes (other than those subsequently
recoverable from the tax authorities), any directly attributable expenditure on making the
asset ready for its intended use, including relevant borrowing costs for qualifying assets and
any expected costs of decommissioning. Expenditure incurred after the property, plant and
equipment have been put into operation, such as repairs and maintenance, are charged to the
Statement of Profit and Loss in the period in which the costs are incurred. Major shut-down
and overhaul expenditure is capitalised as the activities undertaken improves the economic
benefits expected to arise from the asset.

An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain or loss
arising on the disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sales proceeds and the carrying amount of the asset
and is recognized in Statement of Profit and Loss.

Assets in the course of construction are capitalised in the assets under construction account.

At the point when an asset is operating at management''s intended use, the cost of construction
is transferred to the appropriate category of property, plant and equipment and depreciation
commences. Costs associated with the commissioning of an asset and any obligatory
decommissioning costs are capitalised where the asset is available for use but incapable of
operating at normal levels until a period of commissioning has been completed. Revenue
generated from production during the trial period is capitalised.

Property, plant and equipment are stated in the balance sheet at cost less accumulated
depreciation and accumulated impairment losses, if any. Property, plant and equipment
retired from active use are stated at the lower of their net book value and net realisable value
and are disclosed separately. Freehold land is not depreciated.

IX. Depreciation and amortisation

All fixed assets, except capital work in progress, are depreciated on a Straight Line method.
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the
Companies Act, 2013. Depreciation on additions to / deletions from fixed assets made during the
period is provided on pro-rata basis from / up to the date of such addition / deletion as the case
may be. Useful life is as under:

The Company reviews the residual value, useful lives and depreciation method annually and,
if expectations differ from previous estimates, the change is accounted for as a change in
accounting estimate on a prospective basis.

X. Intangible assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less
accumulated amortisation and accumulated impairment losses. Amortisation is recognised on
a straight-line basis over their estimated useful lives. The estimated useful life and
amortisation method are reviewed at the end of each reporting period, with the effect of any
changes in estimate being accounted for on a prospective basis.

Derecognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are
expected from use or disposal. Gains or losses arising from Derecognition of an intangible asset,

measured as the difference between the net disposal proceeds and the carrying amount of the
asset are recognised in the Statement of Profit and Loss when the asset is derecognised.

XI. Impairment of assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have
suffered an impairment loss. If any such indication exists, the recoverable amount of the asset
is estimated in order to determine the extent of the impairment loss (if any). Where it is not
possible to estimate the recoverable amount of an individual asset, the Company estimates the
recoverable amount of the cash-generating unit to which the asset belongs. Where a
reasonable and consistent basis of allocation can be identified, corporate assets are also
allocated to individual cash-generating units, or otherwise they are allocated to the smallest
group of cash-generating units for which a reasonable and consistent allocation basis can be
identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are
tested for impairment at least annually, and whenever there is an indication that the asset may
be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre¬
tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognised immediately in the Statement of Profit
and Loss, unless the relevant asset is carried at a revalued amount, in which case the
impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or a cash¬
generating unit) is increased to the revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset (or cash-generating unit) in
prior years. A reversal of an impairment loss is recognised immediately in the Statement of
Profit and Loss, unless the relevant asset is carried at a revalued amount, in which case the
reversal of the impairment loss is treated as a revaluation increase.

XII. Inventories

Inventories are measured at lower of cost and net realizable value.

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Mar 31, 2015

BASIS OF PREPARATION :

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

USE OF ESTIMATES :

The preparation of Financial Statements requires the management to make estimates and assumptions in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Further results could differ from these estimates.

ASSETS CLASSIFICATION :

All assets and liabilities have been classified as current or non current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

INFLATION :

Assets and liabilities are recorded at historical cost to the Company (except so far as they relate to (a) revaluation of fixed assets and providing for deprecation on revalued amounts and (b) items covered under "Accounting Standard (AS) - 30" on Financial Instruments; Recognition and Measurement" which have been measured at their fair value). These costs are not adjusted to reflect the changing value in the purchasing power of money.

REVENUE RECOGNITION :

a) Sales are recorded net of trade discounts, rebates and include excise duty, if any. Income from service is recognized as they are rendered based on arrangement/agreements with concerned parties.

b) Revenue from services is recognized based on the services rendered in accordance with the terms of contracts.

VALUATION OF INVENTORY :

Inventories are valued at cost or net realizable value whichever is lower.

FIXED ASSETS AND DEPRECIATION :

Tangible Assets :

Fixed assets are stated at their original cost of acquisition less accumulated depreciation and impairment losses. Cost comprises of all costs incurred to bring the asses to their location and working condition.

Till 1st April, 2014, Depreciation on Fixed Assets was provided on pro rate basis for the period of use on straight line method (SLM) as per rates specified in the Schedule XIV of the Companies Act, 1956.

Effective from 1st April, 2014, the Company depreciates its fixed assets over useful life in the manner prescribed in Schedule II of the Companies Act, 2013.

INTANGILBE ASSETS :

Intangible assets are stated at their cost of acquisition less accumulated amortization and impairment losses. An intangible assets is recognized, where it is probable that the future economic benefits attributable to the assets will flow to the enterprise and where its value/cost can be reliably measured.

IMPARMENT OF ASSETS :

An asset is considered as impaired in accordance with Accounting Standard 28 on Impairment of Assets when at balance sheet date there are indications of impairment and the carrying amount of the assets or where applicable, the cash generating unit to which the asset belongs, exceeds its recoverable amount (i.e. the higher of the assets net selling price and value in use). The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the Statement of Profit and Loss account.

Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting periods may no longer exist or may have decreased

INVESTMENTS :

Investments are classified as Long Term Investments and Current Investments. Long Term Investments are stated at cost less permanent diminution in value, if any. Current Investments are stated at lower of cost and net realizable value.

Investments in associates are valued at cost less any provision for impairment. Investments are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable.

Investments in property, Investments in building that are not intended to be occupied substantially for use by, or in the operations of the Company have been classified as investment property. Investment properties are carried at cost less accumulated depreciation.

DERIVATIVES & COMMODITY HEDGING TRANSACTIONS :

In order to hedge its exposure to foreign exchange, interest rate and commodity price risks, the Company enters into forward, option, swap contracts and other derivative financial instruments. The Company neither hold nor issues any derivatives financial instruments for speculative purposes.

Derivative financial instruments are initially recorded at their fair value on the date of the derivative transaction and are re-measured at their fair value at subsequent balance sheet dates.

Change in the fair value of derivatives that are designated and qualify as cash flow hedges and are determined to be an effective hedge are recorded in hedging reserve account. To designate a forward contract or option as an effective hedge, management, objectively evaluates evidences with appropriate supporting documents at the inception of each contract whether the contract is effective in achieving offsetting cash flows attributable to hedged risk. Ay cumulative gain or loss on the hedging instrument recognized in hedging reserve is kept in hedging reserve until the forecast transaction occurs or the hedged accounting is discontinued. Amount deferred to hedging reserve are recycled in the Statement of Profit and Loss in the periods when the hedged item is recognized in the Statement of Profit and Loss or when the portion of the gain or loss is determined to be an ineffective hedge.

Derivative Financial instruments that do not qualify for hedge accounting are marked to market at the balance sheet date and gains or losses are recognized in the Statement of Profit and Loss immediately.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognized in hedging reserve is transferred to profit of Loss for the year.

EMPLOYEE BENEFITS :

The Company's Contributions to State Plans namely Employees Provident Fund, Employee's State Insurance Fund and Employee's Pension Scheme are charged to revenue every year.

No provision for gratuity has been made during the year and the liability for the same has not been ascertained by the company till the end of the accounting year and same will be accounted on cash basis.

BORROWING COST :

Borrowing costs include interest, fees and other charges incurred in connection with the borrowing of funds. It is calculated on the basis of effective interest rate in accordance with Accounting Standard (AS)-30 and considered as revenue expenditure and charged to Statement of Profit and Loss for the year in which it is incurred except for borrowing costs either generally or specifically attributed directly to the acquisition/ improvement of qualifying assets up to the date when such assets are ready for intended use which are capitalized s a part of the Cost of such asset.

TAXES ON INCOME :

Tax expense consists of both current as well as deferred tax. Current tax represent amount of income tax payable including the tax payable U/s 115JB, if any, in respect of taxable income for the year.

Minimum Alternate Tax Credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax within the specified period.

Deferred tax is recognized on timing difference between the accounting income and taxable income for the year that originates in one period and capable of reversal in one or more subsequent period. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the Balance sheet date.

Deferred Tax asset is recognized and carried forward to the extent that there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :

Provisions involving a substantial degree of estimation in measurement are recognized when there is a preset obligation as a result of past events and it is probable that there will be an outflow or resources. Contingent liabilities are not recognized but are disclosed in the accounts by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2014

BASIS OF PREPARATION

The Company follows the accrual method of accounting. The financial statements have been prepared in accordance with historical cost convention and accounting principles generally accepted in India. The financial Statements comply with the requirements of the Accounting Standards notified under Section 211 (3C) [Companies (Accounting Standards) Rules. 2006, as amended] and other relevant provisions of the Companies Act, 1956

USE OF ESTIMATES

The preparation of Financial Statements requires the management to make estimates and assumptions in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Further results could differ from these estimates.

ASSETS CLASSIFICATION

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

INFLATION

Assets and liabilities are recorded at historical cost to the Company (except so far as they relate to (a) revaluation of fixed assets and providing for deprecation on revalued amounts and (b) items covered under "Accounting Standard (AS) - 30" on Financial Instruments; Recognition and Measurement" which have been measured at their fair value). These costs are not adjusted to reflect the changing value in the purchasing power of money.

REVENUE RECOGNITION

a) Sales are recorded net of trade discounts, rebates and include excise duty. Income from service is recognized as they are rendered based on arrangement/agreements with concerned parties,

b) Revenue from services is recognized based on the services rendered in accordance with the terms of contracts.

VALUATION OF INVENTORY

Inventories are valued at cost or net realizable value whichever is lower.

FIXED ASSETS AND DEPRECIATION Tangible Assets

Fixed assets are stated at their original cost of acquisition less accumulated depreciation and impairment losses. Cost comprises of all costs incurred to bring the asses to their location and working condition.

Depreciation on Fixed Assets is provided on pro rate basis for the period of use on straight line method (SLM) as per rates specified in the Schedule XIV of the Companies Act, 1956

INTANGILBE ASSETS

Intangible assets are stated at their cost of acquisition less accumulated amortization and impairment losses. An intangible assets is recognized, where it is probable that the future economic benefits attributable to the assets will flow to the enterprise and where its value/cost can be reliably measured.

The Company capitalized software and related implementation costs where it is reasonably estimated that the software have an enduring useful life.

IMPARMENT OF ASSETS

An asset is considered as impaired in accordance with Accounting Standard 28 on Impairment of Assets when at balance sheet date there are indications of impairment and the carrying amount of the assets or where applicable, the cash generating unit to which the asset belongs, exceeds its recoverable amount (i.e. the higher of the assets net selling price and value in use). The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the Statement of Profit and Loss account.

Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting periods may no longer exist or may have decreased

INVESTMENTS

Investments are classified as Long Term Investments and Current Investments. Long Term Investments are stated at cost less permanent diminution in value, if any. Current Investments are stated at lower of cost and net realizable value.

Investments in associates are value at cost less any provision for impairment. Investments are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable.

Investments in property, Investments in building that are not intended to be occupied substantially for use by, or in the operations of the Company have been classified as investment property. Investment properties are carried at cost less accumulated depreciation.

DERIVATIVES & COMMODITY HEDGING TRANSACTIONS

In order to hedge its exposure to foreign exchange, interest rate and commodity price risks, the Company enters into forward, option, swap contracts and other derivative financial instruments. The Company neither hold nor issues any derivatives financial instruments for speculative purposes.

Derivative financial instruments are initially recorded at their fair value on the date of the derivative transaction and are re-measured at their fair value at subsequent balance sheet dates.

Change in the fair value of derivatives that are designated and qualify as cash flow hedges and are determined to be an effective hedge are recorded in hedging reserve account. To designate a forward contract or option as an effective hedge, management, objectively evaluates evidences with appropriate supporting documents at the inception of each contract whether the contract is effective in achieving offsetting cash flows attributable to hedged risk. Ay cumulative gain or loss on the hedging instrument recognized in hedging reserve is kept in hedging reserve until the forecast transaction occurs or the hedged accounting is discontinued. Amount deferred to hedging reserve are recycled in the Statement of Profit and Loss in the periods when the hedged item is recognized in the Statement of Profit and Loss or when the portion of the gain or loss is determined to be an ineffective hedge.

Derivative Financial instruments that do not qualify for hedge accounting are marked to market at the balance sheet date and gains or losses are recognized in the Statement of Profit and Loss immediately.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. If a hedged transaction in no longer expected to occur, the net cumulative gain or loss recognized in hedging reserve is transferred to profit of Loss for the year.

EMPLOYEE BENEFITS

The Company''s Contributions to State Plans namely Employees Provident Fund, Employee''s State Insurance Fund and Employee''s Pension Scheme are charged to revenue every year.

No provision for gratuity has been made during the year and the liability for the same has not been ascertained by the company till the end of the accounting year and same will be accounted on cash basis.

BORROWING COST

Borrowing costs include interest, fees and other charges incurred in connection with the borrowing of funds. It is calculated on the basis of effective interest rate in accordance with Accounting Standard (AS) -30 and considered as revenue expenditure and charged to Statement of Profit and Loss for the year in which it is incurred except for borrowing costs either generally or specifically attributed directly to the acquisition/ improvement of qualifying assets up to the date when such assets are ready for intended use which are capitalized s a part of the Cost of such asset.

TAXES ON INCOME

Tax expense consists of both current as well as deferred tax. Current tax represent amount of income tax payable including the tax payable U/s 115JB, if any, in respect of taxable income for the year.

Minimum Alternate Tax Credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax within the specified period.

Deferred tax is recognized on timing difference between the accounting income and taxable income for the year that originates in one period and capable of reversal in one or more subsequent period. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the Balance sheet date.

Deferred Tax asset is recognized and carried forward to the extent that there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving a substantial degree of estimation in measurement are recognized when there is a preset obligation as a result of past events and it is probable that there will be an outflow or resources. Contingent liabilities are not recognized but are disclosed in the accounts by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2010

1. System of Accounting -

The company generally follows mercantile system of accounting and recognises Income and Expenditure on accrual basis. ii) The financial statements are prepared on historical cost basis and as a going concern, in accordance with normally accepted Accounting principles and the provisions of the Companies Act, 1956 as followed consistently by the company

2. Fixed Assets and Depreciation

A. Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. No revaluation has been made in any fixed assets.

B. Depreciation is charged on fixed assets on following basis:

i) On straight line method applying rates as per schedule XIV of The Companies Act, 1956 for the assets in use for full year.

ii) On the assets added during the year, on pro-rata basis with reference to the date of addition.

3. Investments

All investments are held as Long Term Investments, unless otherwise mentioned and are stated at cost unless there is a permanent fall in the value of investments.

4. Inventories

i) Inventories are valued at cost or net realisable value whichever is lower.

5, Taxation:

(i) Provision for current tax is made on the assessable income computed for the accounting period in accordance with the Income Tax Act, 1961.

(ii) Deferred Tax is recognised, subject to the consideration of prudence, on timing differences, calculated by applying tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets arising mainly on account of business losses and capital losses under tax laws are recognised, only if there is a virtual certainty of its realisation supported by convincing evidence. At each balance sheet date, the carrying amount of deferred tax assets is reviewed to reassure realisation.

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Mar 31, 2009

1. System of Accounting

(i) The company generally follows mercantile system of accounting and recognises Income and Expenditure on accrual basis.

ii) The financial statements are prepared on historical cost basis and as a going concern, in accordance with normally accepted Accounting principles and the provisions of the Companies Act, 1956 as followed consistently by the company.

2. Fixed Assets and Depreciation

A. Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. No revaluation has been made in any fixed assets.

B. Depreciation is charged on fixed assets on following basis:

i) On straight line method applying rates as per schedule XIV of The Companies Act, 1956 for the assets in use for full year.

ii) On the assets added during the year, on pro-rata basis with reference to the date of addition.

3. Investments

All investments are held as Long Term Investments, unless otherwise mentioned and are stated at cost, unless there is a permanent fall in the value of investments.

4. Inventories

i) Inventories are valued at cost or net realisable value whichever is lower.

5. Taxation:

(i) Provision for current tax is made on the assessable income computed for the accounting period in accordance with the Income Tax Act, 1961.

(ii) Deferred Tax is recognised, subject to the consideration of prudence, on timing differences, calculated by applying tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets arising mainly on account of business losses and capital losses under tax laws are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. At each balance sheet date, the carrying amount of deferred tax assets is reviewed to reassure realisation.