Accounting Policies of Cella Space Ltd. Company

Mar 31, 2025

2 - Basis of Preparation of Standalone Financial Statements

a) Statement of Compliance

These financial statements have been prepared in accordance with Indian Accounting
Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015
notified under Section 133 of the Companies Act, 2013 (the ''Act'') and the relevant
provisions of the Act.

These financial statements have been prepared on historical cost basis, except for
certain financial instruments which are measured at fair value or amortized cost 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. All assets and liabilities have been classified as
current and non-current as per the Company''s normal operating cycle.

Based on the nature of services rendered to customers and time elapsed between
deployment of resources and the realization in cash and cash equivalents of the
consideration for such services rendered, the Company has considered an operating
cycle of 1 year.

The statement of cash flows has been prepared under indirect method.

b) Functional and presentation currency

These financial statements are presented in Indian Rupees (''INR''), which is also the
Company''s functional currency. All amounts have been rounded-off to the nearest
lakhs, unless otherwise indicated.

c) Basis of Measurement

The financial statements have been prepared on the historical cost basis as a going
concern on accrual basis except for the following items:

d) Basis Of accounting

Revenue from Operations
The Company

♦ Revenue from Lease Rental operations is recognized when the collectability of the
resulting receivables is reasonably assured.

♦ Revenue from trading in Kraft paper is recognized when the product is delivered
to the customer, which is when the risk/reward of ownership is passed on to the
customers.

• Revenue also includes revenue from improvement works undertaken for the
tenants in respect of the Leased premises. The revenue from such services is
recognized when all the services for a transaction have been provided.

• Revenue from Common area maintenance is recognized following the accrual
basis of accounting.

• Revenue also includes other related support services with respect to common area
maintenance. The revenue from such services is recognized when all the services
for a transaction have been provided.

e) Use of Estimates and Judgements

In preparing these financial statements, management has made judgements,
estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Actual results may
differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognized prospectively.

Judgements

Information about judgements made in applying accounting policies that have the
most significant effects on the amounts recognized in the financial statements is
included in the concerned notes.

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant
risk of resulting in a material adjustment in the year ended 31 March 2025 is
included in the concerned notes.

f) Measurement of Fair Values

A number of the company''s accounting policies and disclosures require
measurement of fair values, for both financial and non-financial assets and
liabilities.

The Company has an established control framework with respect to the
measurement of fair values. The Company regularly reviews significant
unobservable inputs and valuation adjustments. If third party information is
required, the Company assesses the evidence obtained by the third parties to
support the conclusions that these valuations meet the requirements of Ind AS,
including the level in the fair value hierarchy in which the valuations should be
classified.

Fair values are categorized into different levels in a fair value hierarchy based on
the inputs used in the valuation techniques as follows:

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

• Level 2: Inputs other than quoted prices included in Level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices).

• Level 3: Inputs for the asset or liability that are not based on observable market data
(unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses
observable market data as far as possible. If the inputs used to measure the fair value
of an asset or a liability fall into different levels of the fair value hierarchy, then the
fair value measurement is categorized in its entirety in the same level of the fair
value hierarchy as the lowest level input that is significant to the entire
measurement.

The Company recognizes transfers between levels of the fair value hierarchy at the
end of the reporting period during which the change has occurred.

3 - Accounting Policies

1) Revenue Recognition

The revenue of the company is recognized on accrual basis in accordance with the
applicable Indian Accounting Standards (Ind AS) and other Generally Accepted
Accounting Principles in India.

The revenue is recognized to the extent that it is probable that the economic benefits
will flow to the company and the revenue can be reliably measured, regardless of
when the payment is being made.

Revenue is measured at the fair value of the consideration received or receivable,
taking into account contractually defined terms of payment and excluding taxes or
duties collected on behalf of the government.

2) Foreign currency

Foreign Currency Transactions

Transactions in foreign currencies are translated into the functional currency of the
Company at the exchange rates at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated
into the functional currency at the exchange rate at the reporting date.

3) Income tax

Income tax comprises current and deferred tax. It is recognized in profit or loss
except to the extent that it relates to an item recognized directly in equity or in other
comprehensive income.

a) Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income
or loss for the year and any adjustment to the tax payable or receivable in respect of
previous years. The amount of current tax reflects the best estimate of the tax
amount expected to be paid or received after considering the uncertainty, if any,
related to income taxes. It is measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally
enforceable right to set off the recognized amounts, and it is intended to realize the
asset and settle the liability on a net basis or simultaneously.

b) Deferred Tax

Deferred tax is recognized in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes. Deferred tax is also recognized
in respect of carried forward tax losses and tax credits.

Deferred tax assets are recognized to the extent that it is probable that future taxable
profits will be available against which they can be used. The existence of unused tax
losses is strong evidence that future taxable profit may not be available. Therefore,
in case of a history of recent losses, the Company recognizes a deferred tax asset
only to the extent that it has sufficient taxable temporary differences or there is
convincing other evidence that sufficient taxable profit will be available against
which such deferred tax asset can be realized. Deferred tax assets - unrecognized or
recognized, are reviewed at each reporting date and are recognized/ reduced to the
extent that it is probable/ no longer probable respectively that the related tax benefit
will be realized.

Deferred tax is measured at the tax rates that are expected to apply to the period
when the asset is realized or the liability is settled, based on the laws that have
been enacted or substantively enacted by the reporting date.

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

Deferred tax assets and liabilities are offset if there is a legally enforceable right to
offset current tax liabilities and assets, and they relate to income taxes levied by the
same tax authority on the same taxable entity, or on different tax entities, but they
intend to settle current tax liabilities and assets on a net basis or their tax assets and
liabilities will be realized simultaneously.

4) Going Concern

During the financial year 2024-25, the Company sold its entire warehouse building
along with the associated plant and machinery located at Edayar. This transaction
constituted the sale of a cash-generating unit and has, therefore, been classified as an
exceptional item of revenue.

The Company is currently exploring opportunities to reinvest the surplus funds
generated from this sale into one or more similar projects.

Accordingly, the management is of the opinion that the Company continues to
operate as a "going concern," and the financial statements have been prepared on a
going concern basis

5) Borrowing Cost

Borrowing costs are interest and other costs (including exchange differences
relating to foreign currency borrowings to the extent that they are regarded as an
adjustment to interest costs) incurred in connection with the borrowing of fund.
Borrowing costs directly attributable to acquisition or construction of a qualifying
asset which necessarily take a substantial period of time to get ready for their
intended use/sale are capitalized as part of the cost of that asset. Other borrowing
costs are recognized as an expense in the period in which they are incurred.

6) Cash flow statement

Cash flow statements are is prepared under Indirect Method whereby profit or loss
is adjusted for the effects of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or payments, and items of income
or expense associated with investing or financing cash flows. Cash and cash
equivalents comprise of cash in hand, current and other accounts (including fixed
deposits) held with banks.

7) Events occurring after the balance sheet date

Assets and liabilities are adjusted for events occurring after the reporting period
that provides additional evidence to assist the estimation of amounts relating to
conditions existing at the end of the reporting period.

8) Property, Plant and equipment

a) Recognition and Measurement

Land is capitalized on the basis of historical cost of acquisition, which includes
the expenditure directly attributable to acquisition and installation, borrowing
costs during the construction period and excludes any duties / taxes
recoverable.

b) Capitalization of Assets and Charging of Depreciation

Fixed Assets are stated at cost. The cost of acquisition of Fixed Assets is
inclusive of freight, duties, taxes, incidental expenses and the cost of
installation/erection as applicable and excludes any duties/taxes that are
recoverable.

Depreciation is in accordance with the provisions of Schedule II to the
Companies Act, 2013. In the case of assets added / sold/discarded/transferred
depreciation is charged on pro-rata basis.

c) Impairment of Property, Plant and Equipment (PPE)

The evaluation of applicability of indicators of impairment of assets requires
assessment of external factors (significant decline in asset''s value, significant
changes in the technological, market, economic or legal environment, market
interest rates etc.) and internal factors (obsolescence or physical damage of an
asset, poor economic performance of the asset etc.) which could result in
significant change in recoverable amount of the PPE.

d) Determination of the estimated useful lives

Useful lives of all PPE are based on the estimation done by the Management
which is in line with the useful lives as prescribed in Part ''C'' of Schedule II to
the Act. In cases, where the useful lives are different from those prescribed in
Schedule II and in case of intangible assets, they are estimated by management
based on technical advice, taking into account the nature of the asset, the
estimated usage of the asset, the operating conditions of the asset, past history
of replacement, anticipated technological changes, manufacturers'' warranties
and maintenance support.

e) Fixed Assets identified for disposal are stated at Net Block Value or Net
Realizable value whichever is lower and are shown separately in the financial
statements as asset held for sale.

f) Cost of Machinery Spares which can be used only in connection with an item
of fixed asset and the use of which is expected to be irregular is allocated to the
fixed assets and depreciated to the extent of 95% within a period not exceeding

the useful life of the respective fixed asset. Individual spare parts having
significant values are capitalized.

g) Borrowing cost relating to the acquisition/construction of qualifying assets are
capitalized until the time all substantial activities necessary to prepare the
qualifying assets for their intended use/sale are complete. The qualifying asset
is one that necessarily takes substantial period of time to get ready for its
intended use/ sale. All other borrowing costs are charged to revenue.

h) Subsequent Expenditures are capitalized only if it is probable that the future
economic benefits associated with the expenditure will flow to the Company.

9) Intangible Assets - Recognition, Measurement and Amortization:

Intangible Assets are amortized over the useful life of the respective assets.

Subsequent expenditure is capitalized only when it increases the future economic

benefits embodied in the specific asset to which it relates. All other expenditure is

recognized in profit or loss as incurred.

10) Valuation of investments:

(i) Financial instruments

a) Recognition and initial measurement

All financial assets and financial liabilities are initially recognized when the
Company becomes a party to the contractual provisions of the instrument. A
financial asset or financial liability is initially measured at fair value plus, for an
item not at fair value through profit and loss (FVTPL), transaction costs that are
directly attributable to its acquisition or issue.

b) Classification and subsequent measurement

Financial assets:

On initial recognition, a financial asset is classified as measured at -

• Amortized cost;

• Fair Value through Other Comprehensive Income (FVOCI) - equity investment;

or

• Fair Value Through Profit and Loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except
if and in the period the Company changes its business model for managing
financial assets.

A financial asset is measured at amortized cost if it meets both of the following
conditions and is not designated as at FVTPL:

• the asset is held within a business model whose objective is to hold assets to collect
contractual cash flows; and

• the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount
outstanding.

On initial recognition of an equity investment that is not held for trading, the
Company may irrevocably elect to present subsequent changes in the investment''s
fair value in OCI. (Designated as FVOCI - equity investment). This election is
made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as
described above are measured at FVTPL. This includes all derivative financial
assets. On initial recognition, the Company may irrevocably designate a financial
asset that otherwise meets the requirements to be measured at amortized cost or
at FVOCI or at FVTPL if doing so eliminates or significantly reduces an accounting
mismatch that would otherwise arise.

Financial assets that are held for trading or are managed and whose performance
is evaluated on a fair value basis are measured at FVTPL.

Financial assets at FVTPL: These assets are subsequently measured at fair value.
Net gains and losses, including any interest or dividend income, are recognized in
profit or loss.

Financial assets at amortized cost: These assets are subsequently measured at
amortized cost using the effective interest method. The amortized cost is reduced
by impairment losses. Interest income, foreign exchange gains and losses and
impairment are recognized in profit or loss. Any gain or loss on de-recognition is
recognized in profit or loss.

Equity investments at FVOCI: These assets are subsequently measured at fair
value. Dividends are recognized as income in profit or loss. Other net gains and
losses are recognized in OCI and are not reclassified to profit or loss. And upon
sale of the instruments the gain or loss is recognized in P&L

Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A
financial liability is classified as at FVTPL if it is classified as held-for-trading, or it
is a derivative or it is designated as such on initial recognition. Financial liabilities
at FVTPL are measured at fair value and net gains and losses, including any
interest expense, are recognized in profit or loss. Other financial liabilities are
subsequently measured at amortized cost using the effective interest method.
Interest expense and foreign exchange gains and losses are recognized in profit or
loss. Any gain or loss on de-recognition is also recognized in profit or loss.

c) De-recognition

Financial assets

The Company de-recognizes a financial asset when the contractual rights to the
cash flows from the financial asset expire, or it transfers the rights to receive the
contractual cash flows in a transaction in which substantially all of the risks and
rewards of ownership of the financial asset are transferred or in which the
company neither transfers nor retains substantially all of the risks and rewards of
ownership and does not retain control of the financial asset. If the company enters
into transactions whereby it transfers assets recognized on its balance sheet, but
retains either all or substantially all of the risks and rewards of the transferred
assets, the transferred assets are not derecognized.

Financial liabilities

The Company de-recognizes a financial liability when its contractual obligations
are discharged or cancelled, or expire. The Company also de-recognizes a financial
liability when its terms are modified and the cash flows under the modified terms
are substantially different. In this case, a new financial liability based on the
modified terms is recognized at fair value. The difference between the carrying
amount of the financial liability extinguished and the new financial liability with
modified terms is recognized in profit or loss.

11) Valuation of Current Assets / Inventory:

Finished Goods are accounted for at lower of the cost on FIFO Method or Net
Realizable Value.

12) Retirement/Terminal Benefits/Bonus/Leave encashment

a) Company''s liability towards employee benefits such as gratuity and leave
encashment are provided for on the basis of actuarial valuation.

b) Expenditure incurred on short term employee benefits including bonus,
production incentive, medical benefits and other perquisites etc. are charged to the
Profit and Loss Account at un-discounted amounts in the year in which services
are rendered.

c) Expenditure on employee benefits in the nature of contributions to Provident
Fund, Employees State Insurance, Labour Welfare Fund etc. are charged to the
Profit and Loss Account as and when contributions to the respective funds are
due.

d) Liability for bonus is provided for as per the provisions of the Payment of Bonus
Act 1965.

e) Actuarial gains or losses, as the case may be, in respect of valuation of employee
benefits are charged to the Profit and Loss Account.

f) Re-measurements of the net defined benefit liability, which comprise actuarial
gains and losses are recognized in OCI.

---

Mar 31, 2024

2 - Basis of Preparation of Standalone Financial Statements

a) Statement of Compliance

These financial statements have been prepared in accordance with Indian Accounting
Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified
under Section 133 of the Companies Act, 2013 (the ‘Act’) and the relevant provisions of the
Act.

These financial statements have been prepared on historical cost basis, except for certain
financial instruments which are measured at fair value or amortized cost 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. All assets and
liabilities have been classified as current and non-current as per the Company’s normal
operating cycle.

Based on the nature of services rendered to customers and time elapsed between deployment
of resources and the realization in cash and cash equivalents of the consideration for such
services rendered, the Company has considered an operating cycle of 2 months.

The statement of cash flows has been prepared under indirect method.

b) Functional and presentation currency

These financial statements are presented in Indian Rupees (‘INR’), which is also the
Company’s functional currency. All amounts have been rounded-off to the nearest lakhs,
unless otherwise indicated.

The financial statements have been prepared on the historical cost basis as a going concern
on accrual basis except for the following items:

d) Basis Of accounting
Revenue from Operations

The Company

* Revenue from Lease Rental operations are recognized when the collectability of the
resulting receivables are reasonably assured.

* Revenue from trading in Kraft paper is recognized when the product is delivered to
the customer, which is when the risk/reward of ownership is passed on to the
customers.

* Revenue also includes revenue from improvement works undertaken for the tenants
in respect of the Leased premises. The revenue from such services is recognized when
all the services for a transaction have been provided.

e) Use of Estimates and Judgements

In preparing these financial statements, management has made judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized prospectively.

Judgements

Information about judgements made in applying accounting policies that have the most
significant effects on the amounts recognized in the financial statements is included in the
concerned notes.

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of
resulting in a material adjustment in the year ended 31 March 2023 is included in the
concerned notes.

A number of the company’s accounting policies and disclosures require measurement of fair
values, for both financial and non-financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair
values. The Company regularly reviews significant unobservable inputs and valuation
adjustments. If third party information is required, the Company assesses the evidence
obtained by the third parties to support the conclusions that these valuations meet the
requirements of Ind AS, including the level in the fair value hierarchy in which the valuations
should be classified.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs
used in the valuation techniques as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: inputs other than quoted prices included in Level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market
data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall
into different levels of the fair value hierarchy, then the fair value measurement is categorized
in its entirety in the same level of the fair value hierarchy as the lowest level input that is
significant to the entire measurement.

The Company recognizes transfers between levels of the fair value hierarchy at the end of the
reporting period during which the change has occurred.

3 - Accounting Policies

1) Revenue Recognition

The revenue of the company is recognized on accrual basis in accordance with the applicable
Indian Accounting Standards (Ind AS) and other Generally Accepted Accounting Principles in
India.

The revenue is recognized to the extent that it is probable that the economic benefits will flow
to the company and the revenue can be reliably measured, regardless of when the payment
is being made.

Revenue is measured at the fair value of the consideration received or receivable, taking into
account contractually defined terms of payment and excluding taxes or duties collected on
behalf of the government.

2) Foreign currency

Foreign Currency Transactions

Transactions in foreign currencies are translated into the functional currency of the Company
at the exchange rates at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into the
functional currency at the exchange rate at the reporting date.

3) Income tax

Income tax comprises current and deferred tax. It is recognized in profit or loss except to the
extent that it relates to an item recognized directly in equity or in other comprehensive income.

a) Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss
for the year and any adjustment to the tax payable or receivable in respect of previous years.
The amount of current tax reflects the best estimate of the tax amount expected to be paid or
received after considering the uncertainty, if any, related to income taxes. It is measured using
tax rates (and tax laws) enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right
to set off the recognized amounts, and it is intended to realize the asset and settle the liability
on a net basis or simultaneously.

b) Deferred Tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the corresponding amounts used
for taxation purposes. Deferred tax is also recognized in respect of carried forward tax losses
and tax credits.

Deferred tax assets are recognized to the extent that it is probable that future taxable profits
will be available against which they can be used. The existence of unused tax losses is strong
evidence that future taxable profit may not be available. Therefore, in case of a history of
recent losses, the Company recognizes a deferred tax asset only to the extent that it has
sufficient taxable temporary differences or there is convincing other evidence that sufficient
taxable profit will be available against which such deferred tax asset can be realized. Deferred
tax assets - unrecognized or recognized, are reviewed at each reporting date and are
recognized/ reduced to the extent that it is probable/ no longer probable respectively that the
related tax benefit will be realized.

Deferred tax is measured at the tax rates that are expected to apply to the period when the
asset is realized or the liability is settled, based on the laws that have been enacted or
substantively enacted by the reporting date.

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

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset
current tax liabilities and assets, and they relate to income taxes levied by the same tax
authority on the same taxable entity, or on different tax entities, but they intend to settle current
tax liabilities and assets on a net basis or their tax assets and liabilities will be realized
simultaneously.

4) Borrowing Cost

Borrowing costs are interest and other costs (including exchange differences relating to foreign
currency borrowings to the extent that they are regarded as an adjustment to interest costs)
incurred in connection with the borrowing of fund. Borrowing costs directly attributable to
acquisition or construction of an asset which necessarily take a substantial period of time to
get ready for their intended use are capitalized as part of the cost of that asset. Other
borrowing costs are recognized as an expense in the period in which they are incurred.

5) Cash flow statement

Cash flow statements are prepared under Indirect Method whereby profit or loss is adjusted
for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments, and items of income or expense associated with
investing or financing cash flows. Cash and cash equivalents comprise of cash in hand, current
and other accounts (including fixed deposits) held with banks.

6) Events occurring after the balance sheet date

Assets and liabilities are adjusted for events occurring after the reporting period that provides
additional evidence to assist the estimation of amounts relating to conditions existing at the
end of the reporting period.

7) Property, Plant and equipment

a) Recognition and Measurement

Land is capitalized on the basis of historical cost of acquisition, which includes the
expenditure directly attributable to acquisition and installation, borrowing costs
during the construction period and excludes any duties / taxes recoverable.

b) Capitalization of Assets and Charging of Depreciation

Fixed Assets are stated at cost. The cost of acquisition of Fixed Assets is inclusive
of freight, duties, taxes, incidental expenses and the cost of installation/erection as
applicable.

Depreciation is in accordance with the provisions of Schedule II to the Companies
Act, 2013. In the case of assets added /sold/discarded/transferred depreciation is
changed on pro-rata basis.

c) Impairment of Property, Plant and Equipment (PPE)

The evaluation of applicability of indicators of impairment of assets requires
assessment of external factors (significant decline in asset’s value, significant
changes in the technological, market, economic or legal environment, market
interest rates etc.) and internal factors (obsolescence or physical damage of an
asset, poor economic performance of the asset etc.) which could result in
significant change in recoverable amount of the PPE.

d) Determination of the estimated useful lives

Useful lives of all PPE are based on the estimation done by the Management which
is in line with the useful lives as prescribed in Part ‘C’ of Schedule II to the Act. In
cases, where the useful lives are different from those prescribed in Schedule II and
in case of intangible assets, they are estimated by management based on technical
advice, taking into account the nature of the asset, the estimated usage of the
asset, the operating conditions of the asset, past history of replacement,
anticipated technological changes, manufacturers’ warranties and maintenance
support.

e) Fixed Assets identified for disposal are stated at Net Block Value or Net Realizable
value whichever is lower and are shown separately in the financial statements as
asset held for sale.

f) Cost of Machinery Spares which can be used only in connection with an item of
fixed asset and the use of which is expected to be irregular is allocated to the fixed
assets and depreciated to the extent of 95% within a period not exceeding the
useful life of the respective fixed asset. Individual spare parts having significant
values are capitalized.

g) Borrowing cost relating to the acquisition/construction of qualifying assets are
capitalized until the time all substantial activities necessary to prepare the
qualifying assets for their intended use are complete. The qualifying asset is one
that necessarily takes substantial period of time to get ready for its intended use.
All other borrowing costs are charged to revenue.

h) Subsequent Expenditures are capitalized only if it is probable that the future
economic benefits associated with the expenditure will flow to the Company.

8) Intangible Assets - Recognition, Measurement and Amortization:

Intangible Assets are amortized over the useful life of the respective assets. Subsequent
expenditure is capitalized only when it increases the future economic benefits embodied
in the specific asset to which it relates. All other expenditure is recognized in profit or loss
as incurred.

9) Valuation of investments:

(i) Financial instruments

a) Recognition and initial measurement

All financial assets and financial liabilities are initially recognized when the Company becomes
a party to the contractual provisions of the instrument. A financial asset or financial liability is
initially measured at fair value plus, for an item not at fair value through profit and loss (FVTPL),
transaction costs that are directly attributable to its acquisition or issue.

b) Classification and subsequent measurement
Financial assets:

On initial recognition, a financial asset is classified as measured at -

• amortized cost;

• Fair Value through Other Comprehensive Income (FVOCI) - equity investment; or

• Fair Value Through Profit and Loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the
period the Company changes its business model for managing financial assets.

A financial asset is measured at amortized cost if it meets both of the following conditions and
is not designated as at FVTPL:

• the asset is held within a business model whose objective is to hold assets to collect
contractual cash flows; and

• the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may
irrevocably elect to present subsequent changes in the investment’s fair value in OCI.
(designated as FVOCI - equity investment). This election is made on an investment-by¬
investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above
are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the
Company may irrevocably designate a financial asset that otherwise meets the requirements
to be measured at amortized cost or at FVOCI or at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.

Financial assets that are held for trading or are managed and whose performance is evaluated
on a fair value basis are measured at FVTPL.

Financial assets at FVTPL: These assets are subsequently measured at fair value. Net gains
and losses, including any interest or dividend income, are recognized in profit or loss.

Financial assets at amortized cost: These assets are subsequently measured at amortized
cost using the effective interest method. The amortized cost is reduced by impairment losses.
Interest income, foreign exchange gains and losses and impairment are recognized in profit
or loss. Any gain or loss on de-recognition is recognized in profit or loss.

Equity investments at FVOCI: These assets are subsequently measured at fair value.
Dividends are recognized as income in profit or loss. Other net gains and losses are
recognized in OCI and are not reclassified to profit or loss.

Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability
is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is
designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair
value and net gains and losses, including any interest expense, are recognized in profit or
loss. Other financial liabilities are subsequently measured at amortized cost using the effective
interest method. Interest expense and foreign exchange gains and losses are recognized in
profit or loss. Any gain or loss on de-recognition is also recognized in profit or loss.

c) De-recognition

Financial assets

The Company de-recognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire, or it transfers the rights to receive the contractual cash flows
in a transaction in which substantially all of the risks and rewards of ownership of the financial
asset are transferred or in which the company neither transfers nor retains substantially all of
the risks and rewards of ownership and does not retain control of the financial asset. If the
company enters into transactions whereby it transfers assets recognized on its balance sheet,
but retains either all or substantially all of the risks and rewards of the transferred assets, the
transferred assets are not derecognized.

Financial liabilities

The Company de-recognizes a financial liability when its contractual obligations are
discharged or cancelled, or expire. The Company also de-recognizes a financial liability when
its terms are modified and the cash flows under the modified terms are substantially different.
In this case, a new financial liability based on the modified terms is recognized at fair value.
The difference between the carrying amount of the financial liability extinguished and the new
financial liability with modified terms is recognized in profit or loss.

10) Valuation of Current Assets:

Finished Goods are accounted for at lower of the cost on FIFO Method or Net Realizable
Value.

11) Retirement/Terminal Benefits/Bonus/Leave encashment

a) Company’s liability towards employee benefits such as gratuity and leave encashment
are provided for on the basis of actuarial valuation.

b) Expenditure incurred on short term employee benefits including bonus, production
incentive, medical benefits and other perquisites etc. are charged to the Profit and Loss
Account at un-discounted amounts in the year in which services are rendered.

c) Expenditure on employee benefits in the nature of contributions to Provident Fund,
Employees State Insurance, Labour Welfare Fund etc. are charged to the Profit and
Loss Account as and when contributions to the respective funds are due.

d) Liability for bonus is provided for as per the provisions of the Payment of Bonus Act
1965.

e) Actuarial gains or losses, as the case may be, in respect of valuation of employee
benefits are charged to the Profit and Loss Account.

f) Re-measurements of the net defined benefit liability, which comprise actuarial gains
and losses are recognized in OCI.

---

Mar 31, 2023

1 - Reporting Entity

M/s. Cella Space Limited (the ‘Company’) is a company incorporated in India as a Limited Company on 3rd October, 1991, under the provisions of Companies Act 1956, with the main objective of manufacturing of paper and paperboards (‘the paper operations’). However, the paper operations were closed down in June 2016. Further, the company amended its main object to deal in the business of logistics, Industrial Parks, Logistics Parks, (‘the logistics operation’). Accordingly, the company converted its factory building at Edayar, Kochi into a warehouse which has been let out to commercial parties from March, 2019.

2 - Basis of Preparation of Standalone Financial Statements

a) Statement of Compliance

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of the Companies Act, 2013 (the ‘Act’) and the relevant provisions of the Act.

These financial statements have been prepared on historical cost basis, except for certain financial instruments which are measured at fair value or amortized cost 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. All assets and liabilities have been classified as current and non-current as per the Company’s normal operating cycle.

Based on the nature of services rendered to customers and time elapsed between deployment of resources and the realisation in cash and cash equivalents of the consideration for such services rendered, the Company has considered an operating cycle of 6 months.

The statement of cash flows has been prepared under indirect method.

b) Functional and presentation currency

These financial statements are presented in Indian Rupees (‘INR’), which is also the Company’s functional currency. All amounts have been rounded-off to the nearest lakhs, unless otherwise indicated.

c) Basis of Measurement

The financial statements have been prepared on the historical cost basis as a going concern on accrual basis except for the following items:

Item	Measurement Basis
Certain financial assets and liabilities	At fair value or amortized cost
Net defined benefit liability	At the Present Value of the defined benefit obligations.

d) Basis Of accounting Revenue from Operations

The Company

* Revenue from Lease Rental operations are recognized when the collectability of the resulting receivables are reasonably assured.

• Revenue from trading in Kraft paper is recognized when the product is delivered to the customer, which is when the risk/reward of ownership is passed on to the customers.

• Revenue also includes revenue from improvement works undertaken for the tenants in respect of the Leased premises. The revenue from such services is recognized when all the services for a transaction have been provided.

• Reimbursement of utility charges received from customers are netted and net expenditure is shown after deducting the reimbursement amount received.

e) Use of Estimates and Judgements

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively.

Appropriateness of Going Concern

The Pollution Control Board (PCB) required the paper operations of the company to make drastic changes / modification to the existing waste / effluent water disposal system installed by the company at its Kraft Paper Units I & II at Edayar. The company discussed the financial and commercial viability of the requirements proposed by the PCB and found it to be financially as well as commercially ‘non- viable’ considering the present productivity and profitability of the operation. Consequently, PCB issued closure notice [Notice No. (PCB / ESC / CO - 99 /07)] to both the Kraft Paper on 05.05.2016. Even though the company approached the Hon. High Court of Kerala for staying the order issued by the PCB, it restrained from interfering / staying the order issued by the PCB. The company was required to close down both the units at Edayar with effect from 27.06.2016 and the entire paper operations were discontinued. As a result of it, the entire business were terminated for the subsequent periods, except for selling and realizing the remaining inventory of raw materials and finished goods, stock, stores and spares and fixed assets. As a part of revival plans proposed for the company, the Board of Directors decided to venture into the ‘Logistics Business’ by making use of the existing infrastructure consisting 9.75 acres of land and building at Edayar. Accordingly, after analysing the financial and commercial viability and feasibility of such a plan, the management amended the Memorandum of Association (MoA) of the company to insert necessary object clause for the logistics operations. T o commence the logistics operations, the company modified and converted the existing factory building at Edayar into a commercial warehouse. A portion of the warehouse was completed in March, 2019 and the warehouse has been handed over to tenant in the same month itself and the company started to earn revenue (‘Lease Rentals’) from 27^th May 2019 onwards. In the current year, the company has completed the construction of all the warehouses and has successfully generated revenue throughout the year under audit. Accordingly, the going concern assumption is very much valid and appropriate.

Judgements

Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the concerned notes.

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ended 31 March 2023 is included in the concerned notes.

f) Measurement of Fair Values

A number of the company’s accounting policies and disclosures require measurement of fair values, for both financial and non-financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values. The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information is required, the Company assesses the evidence obtained by the third parties to support the conclusions that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

3 - Accounting Policies1) Revenue Recognition

The revenue of the company is recognized on accrual basis in accordance with the applicable Indian Accounting Standards (Ind AS) and other Generally Accepted Accounting Principles in India. The revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

2) Foreign currency Foreign Currency Transactions

Transactions in foreign currencies are translated into the functional currency of the Company at the exchange rates at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date.

3) Income tax

Income tax comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates to an item recognized directly in equity or in other comprehensive income.

a) Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognized amounts, and it is intended to realize the asset and settle the liability on a net basis or simultaneously.

b) Deferred Tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognized in respect of carried forward tax losses and tax credits. Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which they can be used. The existence of unused tax losses is strong evidence that future taxable profit may not be available. Therefore, in case of a history of recent losses, the Company recognizes a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against which such deferred tax asset can be realized. Deferred tax assets -unrecognized or recognized, are reviewed at each reporting date and are recognized/ reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will be realized. Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.

4) Borrowing Cost

Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of fund. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalized as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

5) Cash flow statement

Cash flow statements are prepared under Indirect Method whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows. Cash and cash equivalents comprise of cash in hand, current and other accounts (including fixed deposits) held with banks.

6) Events occurring after the balance sheet date

Assets and liabilities are adjusted for events occurring after the reporting period that provides additional evidence to assist the estimation of amounts relating to conditions existing at the end of the reporting period.

7) Property, Plant and equipment

a) Recognition and Measurement

Land is capitalized on the basis of historical cost of acquisition, which includes the expenditure directly attributable to acquisition and installation, borrowing costs during the construction period and excludes any duties / taxes recoverable.

b) Capitalization of Assets and Charging of Depreciation

Fixed Assets are stated at cost. The cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes, incidental expenses and the cost of installation/erection as applicable. Depreciation is in accordance with the provisions of Schedule II to the Companies Act, 2013. In the case of assets added /sold/discarded/transferred depreciation is changed on pro-rata basis.

c) Impairment of Property, Plant and Equipment (PPE)

The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant decline in asset’s value, significant changes in the technological, market, economic or legal environment, market interest rates etc.) and internal factors (obsolescence or physical damage of an asset, poor economic performance of the asset etc.) which could result in significant change in recoverable amount of the PPE.

d) Determination of the estimated useful lives

Useful lives of all PPE are based on the estimation done by the Management which is in line with the useful lives as prescribed in Part ‘C’ of Schedule II to the Act. In cases, where the useful lives are different from those prescribed in Schedule II and in case of intangible assets, they are estimated by management based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers’ warranties and maintenance support.

e) Fixed Assets identified for disposal are stated at Net Block Value or Net Realizable value whichever is lower and are shown separately in the financial statements as asset held for sale.

f) Cost of Machinery Spares which can be used only in connection with an item of fixed asset and the use of which is expected to be irregular is allocated to the fixed assets and depreciated to the extent of 95% within a period not exceeding the useful life of

the respective fixed asset. Individual spare parts having significant values are capitalized.

g) Borrowing cost relating to the acquisition/construction of qualifying assets are capitalized until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. The qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

h) Subsequent Expenditures are capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

8) Intangible Assets - Recognition, Measurement and Amortization:

Intangible Assets are amortized over the useful life of the respective assets. Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognized in profit or loss as incurred.

9) Valuation of investments:

(i) Financial instruments

a) Recognition and initial measurement

All financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

b) Classification and subsequent measurement Financial assets:

On initial recognition, a financial asset is classified as measured at -

• amortized cost;

• Fair Value through Other Comprehensive Income (FVOCI) - equity investment; or

• Fair Value Through Profit and Loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in OCI. (designated as FVOCI - equity investment). This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI or at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.

Financial assets at FVTPL: These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

Financial assets at amortized cost: These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on de-recognition is recognized in profit or loss.

Equity investments at FVOCI: These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss. Other net gains and losses are recognized in OCI and are not reclassified to profit or loss.

Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on de-recognition is also recognized in profit or loss.

c) De-recognition Financial assets

The Company de-recognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset. If the company enters into transactions whereby it transfers assets recognized on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognized.

Financial liabilities

The Company de-recognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also de-recognizes a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognized in profit or loss.

10) Valuation of Current Assets:

Finished Goods are accounted for at lower of the cost on FIFO Method or Net Realizable Value.

11) Retirement/Terminal Benefits/Bonus/Leave encashment

a) Company’s liability towards employee benefits such as gratuity and leave encashment are provided for on the basis of actuarial valuation.

b) Expenditure incurred on short term employee benefits including bonus, production incentive, medical benefits and other perquisites etc. are charged to the Profit and Loss Account at un-discounted amounts in the year in which services are rendered.

c) Expenditure on employee benefits in the nature of contributions to Provident Fund, Employees State Insurance, Labour Welfare Fund etc. are charged to the Profit and Loss Account as and when contributions to the respective funds are due.

d) Liability for bonus is provided for as per the provisions of the Payment of Bonus Act 1965.

e) Actuarial gains or losses, as the case may be, in respect of valuation of employee benefits are charged to the Profit and Loss Account.

f) Re-measurements of the net defined benefit liability, which comprise actuarial gains and losses are recognized in OCI..

g) Final settlement made to labour on separation from the company is treated as deferred revenue expenditure and written off over a period of 60 months.

12) Provisions, Contingent Liabilities and Contingent Assets

a) Provisions (other than trade payables and accruals) as mentioned in the Ind As 37 issued by the Institute of Chartered Accountants of India are accounted for and disclosed to the extent practicable in the manner laid down in the said Accounting Standard.

b) Contingent Liabilities disclosed in the Notes forming part of the Accounts comply with Ind As 37 to the extent practicable.

c) Company has not recognized any Contingent Asset.

d) Summons have been received from Addl Chief Judicial Magistrate, Ernakulam regarding non transfer of underlying shares to Govt of India for which dividend has not been encashed. We have submitted our response to the summons. The financial implication of the case could not be ascertained.

13) Investment Property

Property that is held for long term rental yields or for capital appreciation or both, and that is not occupied by the company, is classified as investment property. Investment property is measured initially at cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalized to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed out as and when it is incurred.

Investment properties are depreciated using the straight line method over the estimated useful lives. The useful life of the investment properties are estimated at 25 - 30 years based on the technical evaluation performed by the management

Investment properties are de-recognised either when they have been disposed off when they are permanently withdrawn from use and no future benefit is expected from their disposal.

14. Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for a consideration

Ind AS 116 ‘Leases’ requires the lessor to classify each of it’s leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset.

The Company has classified it’s lease as ‘Operating Lease’ at the inception date and is reassessed only if there is a lease modification. Changes in estimates, or changes in circumstances of the economic life or of the residual value of the underlying asset, do not give rise to a new classification of a lease for accounting purpose.

The Company recognizes lease income from operating lease in a systematic and straightline basis, unless another systematic basis is more representative of the pattern in which benefit from the use of the underlying asset is diminished.

The company has also recognized costs, including depreciation, incurred in earning the lease income as an expense. Any initial direct costs incurred in obtaining an operating lease is added to the carrying amount of the underlying asset and has recognize those costs as an expense over the lease term on the same basis as the lease income. The company has also applied Ind AS 36 to determine whether the underlying asset subject to an operating lease is impaired and accounted for the impairment losses identified, if any.

15. Deferred revenue expenditure

a. Deferred warehousing commission

b. Deferred labour settlement

The Company has recognized the upfront Warehousing Commission over the period during the which the property is leased.

Expenditure on labour settlement has been recognized over the period 60 months.

---

Mar 31, 2015

1 Basis of accounting

The accounts of the Company are prepared under the historical cost convention on accrual basis as a going concern.

2 Revenue Recognition:

Items of income and expenditure are recognized on accrual basis except for the following, since it is not possible to ascertain with reasonable accuracy the quantum to be provided in respect of:

a. Interest & delayed payment charges on overdue bills pending as on Balance Sheet date.

b. The additional liability, if any, arising at the time of assessment of tax / duty.

c. Insurance and Other claims.

3 Government Grant

Duty Draw Back Income is recognized on accrual basis based on FOB value of exports.

4 Fixed Assets & Depreciation:

i) Tangible assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of tangible assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use.

ii) Subsequent expenditures related to an item of tangible asset are added to the book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

iii) Projects under which the assets are not ready for their intended use are shown as Capital Work In Progress.

iv) Change in Accounting Policy for Depreciation pursuant to Schedule II of the Companies Act, 2013.

Due to application of Schedule II of the Companies Act, 2013 with effect from 1st April, 2014, the management has adopted the 'useful lives' as specified in the said Schedule II. The Company has used the transitional provisions of the Schedule II to adjust the impact arising from the first time application of the Schedule II. If a fixed asset has zero remaining useful life as on 1st April, 2014 (the date on which Schedule II has become effective), its carrying amount, after retaining 5% of the original cost as residual value, is charged to the opening balance of the retained earnings 'Surplus in the Statement of Profit & Loss' under 'Reserves & Surplus'. The carrying amount of fixed assets whose remaining useful life is not 'NIL' as on 1st April, 2014, is depreciated over the remaining useful life.

Accordingly, depreciation of Rs 6242638/- has been adjusted to the opening balance of the retained earnings, with the corresponding effect to the net book value of the tangible assets.

v) Any asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Such impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. Any impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

5 Investments:

Long term Investments are stated at cost less provision for decline in value other than temporary. Current investments are stated at lower of cost and fair market value on category of investment basis.

6 Inventory:

Inventory of raw materials and consumables are valued at cost or net realizable value, whichever is lower, under FIFO Method. Finished Goods are valued at cost or net realizable value whichever is lower. Cost for the purposes of valuation of finished goods includes cost of material, labour and other direct expenses. Stock-in-process is valued at raw material cost plus proportionate direct cost, wherever applicable.

7 Foreign Currency Transactions:

Expenditure/Income in foreign currency is converted into Indian rupees at the rate of exchange prevailing on the date of transaction. Asset/Liability in respect of foreign exchange transactions outstanding as at the end of the year is restated at the exchange rate prevailing on that date.

8 Forward Contracts:

Premium or discount at the inception of forward contract is recognized as expense or income over the period of contract. Any profit or loss arising on cancellation or renewal of forward contract is recognized as income or expense of the year.

9 Deferred tax/Income tax:

Deferred tax is accounted for, by computing the tax effect of timing differences between taxable income and accounting income.

Provision for Current tax is made on the basis of applicable tax laws existing in the country.

Minimum Alternative Tax and its credit are accounted based on the Guidance notes issued by the Institute of Chartered Accountants of India.

Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be availed against which such deferred tax assets can be realized.

10 Intangible Assets:

Intangible asset, viz, computer software is stated at cost of acquisition less accumulated amortization. Computer software is amortized over a period of 5 Years.

11 Others:

i) Contingent Liabilities are not provided for and are disclosed in notes to the accounts.

ii) Gratuity and leave encashment liability is worked out based on actuarial valuation as at the end of the year.

12 Impairment of assets

Subsequent to Board's decision to close down its Duplex Board Division, Company has re-assessed the market value of assets of Chalakudy unit. Impairment is done to Plant & Machinery and building by comparing the value given by the approved valuer and carrying amount outstanding in books after providing depreciation as per the Companies Act 2013.

13 Additional Disclosures

1 Most of the balances of Sundry Debtors, Sundry Creditors, Advances and Deposits are subject to confirmation.

2 Previous year figures have been re-cast, wherever necessary to comply with the requirements of Revised Schedule VI of The Companies Act 1956.

3 Assets, Loans and advances are in realizable state in the ordinary course of business.

4 Lease Transactions :

All assets acquired under finance lease basis are capitalized with corresponding liability recognizing the future liability on leases. The total minimum lease payments as on the balance sheet date, interest embedded in such payments and present value of lease payments are as follows:

(i) Total minimum

lease payments Nil (Previous Year Nil)

(ii) Future interest

embedded in i) Nil (Previous Year Nil)

(iii) Present value of

lease payments (i-ii) Nil (Previous Year Nil)

Finance charges on lease payments amounting to (Previous Year Nil) for the year has been debited to profit and loss account under the head interest and bank charges. Lease expenses under non cancelable operating lease during the year amounts to Rs NIL (Previous Year Rs Nil)

Future minimum lease payments under non cancellable operating lease as on 31-03-2015 is as follows

Payable within One year NIL

Payable after one year

but before five years NIL

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Mar 31, 2014

1 Basis of accounting

The accounts of the Company are prepared under the historical cost convention on accrual basis as a going concern.

2 Revenue Recognition:

Items of income and expenditure are recognized on accrual basis except for the following, since it is not possible to ascertain with reasonable accuracy the quantum to be provided in respect of:

a. Interest & delayed payment charges on overdue bills pending as on Balance Sheet date.

b. The additional liability, if any, arising at the time of assessment of tax / duty.

c. Insurance and Other claims.

3 Government Grant

Duty Draw Back Income is recognised on accrual basis based on FOB value of exports.

4 Fixed Assets & Depreciation:

Depreciation on fixed assets is provided on pro-rata basis on straight-line method at the rates prescribed under Schedule XIV of the Companies Act, 1956. Cost of Fixed Assets has been taken at net of CENVAT availed. Depreciation on additions/deletions is calculated on a monthly pro-rata basis, month of addition is included and month of sale is excluded.

The cost of fixed assets other than those included in the specific project comprises, its purchase price including import duty and other non - refundable taxes or levies, cost directly attributable to bring the asset to its working condition for its intended use, start up and commissioning expenses on test runs and experimental production and finance cost up to the date of capitalization but excluding administration and other general overheads.

Cost of fixed assets under specific project includes all the above and directly relatable administrative and other general overheads.

5 Investments:

Long term Investments are stated at cost less provision for decline in value other than temporary. Current investments are stated at lower of cost and fair market value on category of investment basis.

6 Inventory:

Inventory of raw materials and consumables are valued at cost or net realizable value, whichever is lower, under FIFO Method. Finished Goods are valued at cost or net realizable value whichever is lower. Cost for the purposes of valuation of finished goods includes cost of material, labour and other direct expenses. Stock-in-process is valued at raw material cost plus proportionate direct cost, wherever applicable.

7 Foreign Currency Transactions:

Expenditure/Income in foreign currency is converted into Indian rupees at the rate of exchange prevailing on the date of transaction. Asset/Liability in respect of foreign exchange transactions outstanding as at the end of the year is restated at the exchange rate prevailing on that date.

8 Forward Contracts:

Premium or discount at the inception of forward contract is recognised as expense or income over the period of contract. Any profit or loss arising on cancellation or renewal of forward contract is recognised as income or expense of the year.

9 Forex Trading

a) Premium paid at the time of hedging of forex liability is accounted as expense proportionately for the reporting period.

b) Premium received for trading of option is accounted as income on the date of receipt.

c) Profit/loss on outstanding futures'' contracts are recognised at the closing rate of reporting period using MTM.

10 Deferred tax/Income tax:

Deferred tax is accounted for, by computing the tax effect of timing differences between taxable income and accounting income.

Provision for Current tax is made on the basis of applicable tax laws existing in the country.

Minimum Alternative Tax and its credit are accounted based on the Guidance notes issued by the Institute of Chartered Accountants of India.

Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be availed against which such deferred tax assets can be realised.

11 Intangible Assets:

Intangible asset, viz, computer software is stated at cost of acquisition less accumulated amortization. Computer software is amortized over a period of 5 Years.

12 Borrowing Costs

Borrowing Costs charged to Profit & Loss Account include interest on short and long term bank borrowings. Borrowing costs attributable to qualifying assets up to the date of capitalization are included in the cost of the asset.

13 Others:

i) Contingent Liabilities are not provided for and are disclosed in notes to the accounts.

ii) Gratuity and leave encashment liability is worked out based on actuarial valuation as at the end of the year.

14 Impairment

At each Balance sheet date the management reviews the carrying amount of the assets to ascertain impairment loss, if any, to its assets and such losses are appropriately recognized in the accounts.

15 Additional Diclosures

1 Most of the balances of Sundry Debtors, Sundry Creditors, Advances and Deposits are subject to confirmation.

2 Previous year figures have been re-cast, wherever necessary to comply with the requirements of Revised Schedule VI of The Companies Act 1956.

3 Assets, Loans and advances are in realizable state in the ordinary course of business.

4 Lease Transactions :

All assets acquired under finance lease basis are capitalized with corresponding liability recognizing the future liability on leases. The total minimum lease payments as on the balance sheet date, interest embedded in such payments and present value of lease payments are as follows :

(i) Total minimum lease payments Nil (PreviousYear Nil)

(ii) Future interest embedded in i) Nil (PreviousYear Nil)

(iii) Present value of lease payments (i-ii) Nil (Previous Year Nil)

Finance charges on lease payments amounting to (Previous Year Nil) for the year has been debited to profit and loss account under the head interest and bank charges. Lease expenses under non cancelable operating lease during the year amounts to Rs NIL(Previous Year Rs Nil)

Future minimum lease payments under non cancellable operating lease as on 31-03-2014 is as follows Payable within One year NIL Payable after one year but before five years NIL

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Mar 31, 2013

1 Basis of accounting

The accounts of the Company are prepared under the historical cost convention on accrual basis as a going concern.

2 Revenue Recognition:

Items of income and expenditure are recognized on accrual basis except for the following, since it is not possible to ascertain with reasonable accuracy the quantum to be provided in respect of:

a. Interest & delayed payment charges on overdue bills pending as on Balance Sheet date.

b. The additional liability, if any, arising at the time of assessment of tax / duty.

c. Insurance and Other claims.

3 Government Grant

Duty Draw Back Income is recognised on accrual basis based on FOB value of exports.

4 Fixed Assets & Depreciation:

Depreciation on fixed assets is provided on pro-rata basis on straight-line method at the rates prescribed under Schedule XIV of the Companies Act, 1956. Cost of Fixed Assets has been taken at net of CENVAT availed. Depreciation on additions/deletions is calculated on a monthly pro-rata basis, month of addition is included and month of sale is excluded.

The cost of fixed assets other than those included in the specific project comprises, its purchase price including import duty and other non – refundable taxes or levies, cost directly attributable to bring the asset to its working condition for its intended use, start up and commissioning expenses on test runs and experimental production and finance cost up to the date of capitalization but excluding administration and other general overheads.

Cost of fixed assets under specific project includes all the above and directly relatable administrative and other general overheads.

5 Investments:

Long term Investments are stated at cost less provision for decline in value other than temporary. Current investments are stated at lower of cost and fair market value on category of investment basis.

6 Inventory:

Inventory of raw materials and consumables are valued at cost or net realizable value, whichever is lower, under FIFO Method. Finished Goods are valued at cost or net realizable value whichever is lower. Cost for the purposes of valuation of finished goods includes cost of material, labour and other direct expenses. Stock-in-process is valued at raw material cost plus proportionate direct cost, wherever applicable.

7 Foreign Currency Transactions:

Expenditure/Income in foreign currency is converted into Indian rupees at the rate of exchange prevailing on the date of transaction. Asset/Liability in respect of foreign exchange transactions outstanding as at the end of the year is restated at the exchange rate prevailing on that date.

8 Forward Contracts:

Premium or discount at the inception of forward contract is recognised as expense or income over the period of contract. Any profit or loss arising on cancellation or renewal of forward contract is recognised as income or expense of the year.

9 Forex Trading

a) Premium paid at the time of hedging of forex liability is accounted as expense proportionately for the reporting period.

b) Premium received for trading of option is accounted as income on the date of receipt.

c) Profit/loss on outstanding futures'' contracts are recognised at the closing rate of reporting period using MTM.

10 Deferred tax/Income tax:

Deferred tax is accounted for, by computing the tax effect of timing differences between taxable income and accounting income.

Provision for Current tax is made on the basis of applicable tax laws existing in the country.

Minimum Alternative Tax and its credit are accounted based on the Guidance notes issued by the Institute of Chartered Accountants of India.

Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be availed against which such deferred tax assets can be realised.

11 Intangible Assets:

Intangible asset, viz, computer software is stated at cost of acquisition less accumulated amortization. Computer software is amortized over a period of 5 Years.

12 Borrowing Costs

Borrowing Costs charged to Statement of Profit & Loss include interest on short and long term bank borrowings. Borrowing costs attributable to qualifying assets up to the date of capitalization are included in the cost of the asset.

13 Others:

i) Contingent Liabilities are not provided for and are disclosed in notes to the accounts.

ii) Gratuity and leave encashment liability is worked out based on actuarial valuation as at the end of the year.

14 Impairment

At each Balance sheet date the management reviews the carrying amount of the assets to ascertain impairment loss, if any, to its assets and such losses are appropriately recognized in the accounts.

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Mar 31, 2012

1 Basis of accounting

The accounts of the Company are prepared under the historical cost convention on accrual basis as a going concern.

2 Revenue Recognition:

Items of income and expenditure are recognized on accrual basis except for the following, since it is not possible to ascertain with reasonable accuracy the quantum to be provided in respect of:

a. Interest & delayed payment charges on overdue bills pending as on Balance Sheet date.

b. The additional liability, if any, arising at the time of assessment of tax / duty.

c. Insurance and Other claims.

3 Fixed Assets & Depreciation:

Depreciation on fixed assets is provided on pro-rata basis on straight-line method at the rates prescribed under Schedule XIV of the Companies Act, 1956. Cost of Fixed Assets has been taken at net of CENVAT availed. Depreciation on additions/deletions is calculated on a monthly pro-rata basis, month of addition is included and month of sale is excluded.

The cost of fixed assets other than those included in the specific project comprises, its purchase price including import duty and other non - refundable taxes or levies, cost directly attributable to bring the asset to its working condition for its intended use, start up and commissioning expenses on test runs and experimental production and finance cost up to the date of capitalization but excluding administration and other general overheads.

Cost of fixed assets under specific project includes all the above and directly relatable administrative and other general overheads.

4 Investments:

Long term Investments are stated at cost less provision for decline in value other than temporary. Current investments are stated at lower of cost and fair market value on category of investment basis.

5 Inventory:

Inventory of raw materials and consumables are valued at cost or net realizable value, whichever is lower, under FIFO Method. Finished Goods are valued at cost or net realizable value whichever is lower. Cost for the purposes of valuation of finished goods includes cost of material, labour and other direct expenses. Stock-in-process is valued at raw material cost plus proportionate direct cost, wherever applicable.

6 Foreign Currency Transactions:

Expenditure/Income in foreign currency is converted into Indian rupees at the rate of exchange prevailing on the date of transaction. Asset/Liability in respect of foreign exchange transactions outstanding as at the end of the year is reinstated at the exchange rate prevailing on that date.

7 Forward Contracts:

Premium or discount at the inception of forward contracts is recognized as expense or income over the period of contract. Any profit or loss arising on cancellation or renewal of forward contract is recognized as income or expense of the year.

8 Deferred tax/Income tax:

Deferred tax is accounted for, by computing the tax effect of timing differences between taxable income and accounting income.

Provision for Current tax is made on the basis of applicable tax laws existing in the country. Minimum Alternative Tax and its credit are accounted based on the Guidance notes issued by the Institute of Chartered Accountants of India.

Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be availed against which such deferred tax assets can be realized.

9 Intangible Assets:

Intangible asset, viz, computer software is stated at cost of acquisition less accumulated amortization. Computer software is amortized over a period of 5 Years. Public issue expenses are written off over a period of 5 years from the year in which the proceeds are substantially utilized.

10 Borrowing Costs

Borrowing Costs charged to Statement of Profit & Loss include interest on short and long term bank borrowings. Borrowing costs attributable to qualifying assets up to the date of capitalization are included in the cost of the asset.

11 Others:

i) Contingent Liabilities are not provided for and are disclosed in notes to the accounts.

ii) Gratuity and leave encashment liability is worked out based on actuarial valuation as at the end of the year.

12 Impairment

At each Balance sheet date the management reviews the carrying amount of the assets to ascertain impairment loss, if any, to its assets and such losses are appropriately recognized in the accounts.

13. Additional Disclosures

1 Most of the balances of Sundry Debtors, Sundry Creditors, Advances and Deposits are subject to confirmation.

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Mar 31, 2011

1) Basis of Accounting:

The accounts of the Company are prepared under the historical cost convention on accrual basis as a going concern.

2) Revenue Recognition:

Items of income and expenditure are recognized on accrual basis except for the following, since it is not possible to ascertain with reasonable accuracy the quantum to be provided in respect of:

a. Interest & delayed payment charges on overdue bills pending as on Balance Sheet date.

b. The additional liability, if any, arising at the time of assessment of tax / duty.

c. Insurance and Other claims.

3) Fixed Assets & Depreciation:

Depreciation on fixed assets is provided on pro-rata basis on straight-line method at the rates prescribed under Schedule XIV of the Companies Act, 1956. Cost of Fixed Assets has been taken at net of CENVAT availed. Depreciation on additions/deletions is calculated on a monthly pro-rata basis, month of addition is included and month of sale is excluded.

The cost of fixed assets other than those included in the specific project comprises, its purchase price including import duty and other non - refundable taxes or levies, cost directly attributable to bring the asset to its working condition for its intended use, start up and commissioning expenses on test runs and experimental production and finance cost up to the date of capitalization but excluding administration and other general overheads.

Cost of fixed assets under specific project includes all the above and directly relatable administrative and other general overheads.

4) Investments:

Long term Investments are stated at cost less provision for decline in value other than temporary. Current investments are stated at lower of cost and fair market value on category of investment basis.

5) Inventory:

Inventory of raw materials and consumables are valued at cost or net realizable value, whichever is lower, under FIFO Method. Finished Goods are valued at cost or net realizable value whichever is lower. Cost for the purposes of valuation of finished goods includes cost of material, labour and other direct expenses. Stock- in-process is valued at raw material cost plus proportionate direct cost, wherever applicable.

6) Foreign Currency Transactions: Expenditure/Income in foreign currency is converted into Indian rupees at the rate of exchange prevailing on the date of transaction. Asset/Liability in respect of foreign exchange transactions outstanding as at the end of the year is restated at the exchange rate prevailing on that date.

7) Forward Contracts:

Premium or discount at the inception of forward contracts is recognised as expense or income over the period of contract. Any profit or loss arising on cancellation or renewal of forward contract is recognized as income or expense of the year.

8) Deferred tax/Income tax:

Deferred tax is accounted for, by computing the tax effect of timing differences between taxable income and accounting income.

Provision for Current tax is made on the basis of applicable tax laws existing in the country.

Minimum Alternative Tax and its credit are accounted based on the Guidance notes issued by the Institute of Chartered Accountants of India.

Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be availed against which such deferred tax assets can be realised.

9) Intangible Assets:

Intangible asset, viz, computer software is stated at cost of acquisition less accumulated amortization. Computer software is amortized over a period of 5 Years. Public issue expenses are written off over a period of 5 years from the year in which the proceeds are substantially utilized.

10) Borrowing Costs.

Borrowing Costs charged to Profit & Loss Account include interest on short and long term bank borrowings. Borrowing costs attributable to qualifying assets up to the date of capitalization are included in the cost of the asset.

11) Others:

i) Contingent Liabilities are not provided for and are disclosed in notes to the accounts.

ii) Gratuity and leave encashment liability is worked out based on actuarial valuation as at the end of the year.

12) Impairment

At each Balance sheet date the management reviews the carrying amount of the assets to ascertain impairment loss, if any, to its assets and such losses are appropriately recognized in the accounts.

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Mar 31, 2010

1. Basis of Accounting:

The accounts of the Company are prepared under the historical cost convention on accrual basis as a going concern.

2. Revenue Recognition:

Items of income and expenditure are recognized on accrual basis except for the following since it is not possible to ascertain with reasonable accuracy the quantum to be provided in respect of:

a. Interest & delayed payment charges on overdue bills pending as on Balance Sheet date.

b. The additional liability, if any, arising at the time of assessment of tax / duty.

c. Insurance and Other claims.

3. Fixed Assets & Depreciation:

Depreciation on fixed assets is provided on pro-rata basis on straight-line method at the rates prescribed under Schedule XIV of the Companies Act, 1956. Cost of Fixed Assets has been taken at net of CENVAT availed. Depreciation on additions/deletions is calculated on a monthly pro-rata basis, month of addition is included and month of sale is excluded.

The cost of fixed assets other than those included in the specific project comprises, its purchase price including import duty and other non - refundable taxes or levies, cost directly attributable to bring the asset to its working condition for its intended use, start up and commissioning expenses on test runs and experimental production and finance cost up to the date of capitalization but excluding administration and other general overheads.

Cost of fixed assets under specific project includes all the above and directly relatable administrative and other general overheads.

4. Investments:

Long term Investments are stated at cost less provision for decline in value other than temporary. Current investments are stated at lower of cost and fair market value on category of investment basis.

5. Inventory:

Inventory of raw materials and consumables are valued at cost or net realizable value whichever is lower under FIFO Method. Finished Goods are valued at cost or net realizable value whichever is lower. Cost for the purposes of valuation of finished goods includes cost of material, labour and other direct overheads. Stock-in-process is valued at raw material cost plus proportionate direct cost, wherever applicable.

6. Foreign Currency Transactions:

Expenditure in foreign currency is converted into Indian rupees at the rate of exchange prevailing on the date of the remittance. Liability in respect of foreign exchange transactions outstanding as at the end of the year is restated at the exchange rate prevailing on that date.

7. Forward Contracts:

Premium or discount arising at the inception of forward contracts is recognized as expense or income over the period of contract. Any profit or loss arising on cancellation or renewal of forward contract is recognized as income or expense of the year.

8. Deferred tax/Income tax:

Deferred tax is accounted for, by computing the tax effect of timing differences between taxable income and accounting income.

Provision for current tax is made on the basis of applicable tax laws existing in the country.

Minimum Alternative Tax and its credit are accounted based on the Guidance notes issued by the Institute of Chartered Accountants of India.

Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainly that suffifient future taxable income will be availed against which such deferred tax assets can be realised.

9. Intangible Assets:

Intangible asset, viz, computer software is stated at cost of acquisition less accumulated amortization. Computer software is amortized over a period of 5 Years. Public issue expenses are written off over a period of 5 years from the year in which the proceeds are substantially utilized.

10. Borrowing Costs.

Borrowing Costs charged to Profit & Loss Account include interest on short and long term bank borrowings. Borrowing costs attributable to qualifying assets up to the date of capitalization are included in the cost of the asset.

11.Others:

i) Contingent Liabilities are not provided for and are disclosed in notes to the accounts.

ii) Gratuity and leave encashment liability is worked out based on actuarial valuation as at the end of the year.

12. Impairment

At each of the Balance sheet date the management reviews the carrying amount of the assets to ascertain impairment, if any, to its assets and such losses are appropriately recognized in accounts.