Accounting Policies of Elitecon International Ltd. Company

Mar 31, 2025

2 Significant Accounting Policies

2.1 Basis of preparation of financial statements:

These financial statements have been prepared in
accordance with Indian Accounting Standards (Ind
AS), under the historical cost convention on accrual
basis except for certain financial instruments which
are measured at fair values. The Ind AS are prescribed
under Section 133 of the Companies Act, 2013 read
with Rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 and relevant amendment
rules issued thereafter.

Accounting policies have been consistently applied
except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy
hitherto in use.

2.2 Use of Estimates and judgments:

The preparation of financial statements in conformity
with Ind AS requires management to make
judgments, estimates and assumptions that affect
the applications of the accounting policies and the
reported amounts of assets and liabilities, disclosure
of contingent assets & liabilities at the date of the
financial statements and the reported amounts of
revenue and expenses during the year. The estimates
and assumptions used in the accompanying financial
statements are based upon management’s evaluation
of the relevant facts and circumstances. Actual results
may differ from the estimates and assumptions used
in preparing the accompanying financial statements.

2.3 Property, Plant and Equipment:

Property, plant and equipment are stated at cost
of acquisition or construction less accumulated
depreciation and impairment, if any. Cost is inclusive
of inward freight, duties and taxes and incidental
expenses related to acquisition which is not
recoverable. All upgradation / enhancements are
charged off as revenue expenditure unless they bring
similar significant additional benefits.

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

Depreciation on property, plant & equipment is
calculated on Written Down Method in accordance
with the provisions of Schedule II of the Companies
Act, 2013 keeping 5% of cost as residual value. The
useful life of property, plant & equipment as defined in
Part C of schedule II of the Companies Act, 2013 has
been taken for all property, plant & equipment except
for Office Equipments, Printer and Lab Equipments.
In case of purchase / sale of assets during the year,
depreciation has been charged on pro rata basis
from / up to date of commercial production / sale.
Depreciation is not provided on Capital Work in
Progress until the assets are ready for its intended use.

The management believes that the useful lives as
given below best represent the period over which
the management expects to use these assets. Hence,
the useful lives for these assets is different from the
useful lives as prescribed under Part C of schedule II
of the Companies Act, 2013:

Office Equipments 15 and 10 Years

Printer 6 Years

Lab Equipments 15 Years

Intangible Assets:

Intangible assets are stated at cost less accumulated
amortization and net of impairments, if any. Intangible
assets are amortized over their estimated useful lives
on straight-line basis. An intangible asset is recognized
if it is probable that the expected future economic
benefits that are attributable to the asset will flow to
the Company and its cost can be measured reliably.

2.4 Inventories:

The inventories are valued at lower of cost or net
realizable value. The cost of inventories is determined
based on weighted average cost method as permitted
by Indian Accounting Standard 2 - Inventories.

The basis of determining cost for various categories
of inventories is as follows:-

• Spares, consumables and accessories are valued
on Weighted Average basis.

• Raw material are valued on
Weighted Average basis.

• Work-in-progress are valued at cost of
production (cost of materials and overhead up to
the completed stage of production)

• Inventories of Finished goods are valued on
Weighted Average basis or net realizable value
whichever is less.

• Goods in transit are recorded at its purchase price.

2.5 Foreign Currency Transaction:

The functional and presentation currency of the
Company is Indian Rupee. Transactions in foreign
currency are accounted for at the exchange rate
prevailing on the transaction date. Current assets
and current liabilities denominated in foreign currency
are translated at the exchange rate prevalent at the
date of the balance sheet. Gains /losses arising on
settlement as also on translation of monetary items
are recognized in the Statement of Profit and Loss.

2.6 Taxes on Income:

Taxes on income comprises of current taxes and
deferred taxes. Current tax in the Statement of Profit
and Loss is provided as the amount of tax payable
in respect of taxable income for the period using
tax rates and tax laws enacted during the period,
together with any adjustment to tax payable in
respect of previous years. Deferred tax is recognized
on temporary differences between the carrying
amounts of assets and liabilities and the amounts
used for taxation purposes (tax base), at the tax rates
and tax laws enacted or substantively enacted by the
end of the reporting period.

2.7 Revenue Recognition:

Revenue is measured at the fair value of the
consideration received or receivable for goods
supplied. Revenue from sale of products is recognized
when the company performs its obligations to
its customers and the amount of revenue can be
measured reliably and recovery of the consideration
is probable. The timing of such recognition in case
of sale of goods is when the control over the same
is transferred to the customer. Revenue from sale
of goods excludes Excise Duty, Sales Tax/GST and
Trade Discount.

Interest income is recognised in the Statement of
Profit and Loss using the effective interest method.

Dividend income is recognized in the Statement of
Profit and Loss when the right to receive dividend
is established.

2.8 Borrowing Cost:

Borrowing cost that are attributable to the acquisition
/ construction of qualifying assets are capitalized

as part of the cost of the respective assets. Other
borrowing costs are recognized as expenses in the
year in which they are incurred.

2.9 Leases:

The Company assesses at contract inception whether
a contract is, or contains, a lease. A contract is, or
contains, a lease if it conveys the right to control
the use of an identified asset for a period of time in
exchange for consideration.

Company as a Lessee

Right-of-Use (ROU) assets are recognized at
inception of a contract or arrangement for significant
lease components at cost less lease incentives, if any.
ROU assets are subsequently measured at cost less
accumulated depreciation and impairment losses, if
any. The cost of ROU assets includes the amount of
lease liabilities recognized, initial direct cost incurred
and lease payments made at or before the lease
commencement date. ROU assets are generally
depreciated over the shorter of the lease term and
estimated useful lives of the underlying assets on a
straight line basis. Lease term is determined based
on consideration of facts and circumstances that
create an economic incentive to exercise an extension
option, or not to exercise a termination option. Lease
payments associated with short-term leases and low
value leases are charged to the Statement of Profit
and Loss on a straight line basis over the term of the
relevant lease.

The Company recognises lease liabilities measured
at the present value of lease payments to be made
on the date of recognition of the lease. Such lease
liabilities do not include variable lease payments
(that do not depend on an index or a rate), which are
recognised as expense in the periods in which they
are incurred. Interest on lease liability is recognised
using the effective interest method. Lease liabilities
are subsequently increased to reflect the accretion
of interest and reduced for the lease payments
made. The carrying amount of lease liabilities is also
remeasured upon modification of lease arrangement
or upon change in the assessment of the lease term.
The effect of such remeasurements is adjusted to the
value of the ROU assets.

Company as a Lessor

Leases in which the Company does not transfer
substantially all the risks and rewards of ownership of
an asset are classified as operating leases. Where the
Company is a lessor under an operating lease, the asset
is capitalised within property, plant and equipment or
investment property and depreciated over its useful
economic life. Payments received under operating
leases are recognised in the Statement of Profit and
Loss on a straight line basis over the term of the lease.

2.10 Financial instruments: Financial assets, Financial
liabilities and Equity Instruments:

Financial Assets -
Recognition

Financial Assets are initially recognised at transaction
price. Management determines the classification of an
asset at initial recognition depending on the purpose
for which the assets were acquired. Financial assets
are classified as those measured at:

(a) amortized cost, where the financial assets are
held solely for collection of cash flows arising
from payments of principal and/or interest.

(b) fair value through other comprehensive income
(FVTOCI), where the financial assets are held
not only for collection of cash flows arising from
payments of principal and interest but also from the
sale of such assets. Such assets are subsequently
measured at fair value, with unrealized gains and
losses arising from changes in the fair value being
recognised in other comprehensive income.

(c) fair value through profit or loss (FVTPL), where
the assets are managed in accordance with
an approved investment strategy that triggers
purchase and sale decisions based on the fair
value of such assets. Such assets are subsequently
measured at fair value, with unrealized gains and
losses arising from changes in the fair value being
recognised in the Statement of Profit and Loss in
the period in which they arise.

Derecognition

Financial assets are derecognized when the right to
receive cash flows from the assets has expired, or
has been transferred, and the Group has transferred
substantially all of the risks and rewards of ownership.
If the asset is one that is measured at:

(a) amortized cost, the gain or loss is recognised in
the Statement of Profit and Loss;

(b) fair value through other comprehensive
income, the cumulative fair value adjustments
previously taken to

reserves are reclassified to the Statement of Profit
and Loss unless the asset represents an equity
investment, in which case the cumulative fair
value adjustments previously taken to reserves are
reclassified within equity.

Financial Liabilities -
Recognition

Borrowings, trade payables and other financial
liabilities are initially recognised at the value of
the respective contractual obligations. They are

subsequently measured at amortized cost. Any
discount or premium on redemption/ settlement is
recognised in the Statement of Profit and Loss as
finance cost over the life of the liability using the
effective interest method and adjusted to the liability
figure disclosed in the Balance Sheet.

Derecognition

Financial liabilities are derecognized when the
liability is extinguished, that is, when the contractual
obligation is discharged, cancelled or on expiry.

Equity Instruments-

Equity instruments are recognised at the value of the
proceeds, net of direct costs of the capital issue.

2.11 Employee Benefits:

a) Short Term Employee Benefits

All employee benefits payable wholly within
twelve months of rendering the service are
classified as short-term employee benefits.
Benefits such as salaries, performance,
incentives, etc, are recognised as an expense
at the undiscounted amount in the Statement
of Profit and Loss for the year in which the
employee renders the related service.

b) Post-Employment Benefits

Post retirement benefits like provident fund,
superannuation, gratuity and post retirement
medical benefits are provided for as below:

Defined Contribution Plans

Contributions under Defined Contribution Plans
i.e. provident fund & superannuation fund
are recognised in the Statement of Profit and
Loss in the period in which the employee has
rendered the service.

Defined Benefit Plans

For defined benefits retirement schemes the cost of
providing benefits is determined using the Projected
Unit Credit Method, with actuarial valuation being
carried out at each year end balance sheet date.
Re-measurement gains and losses of the net
defined benefit liability/(asset) are recognised as
an expense within employment costs.

Past service cost is recognised as an expense
when the plan amendment or curtailment
occurs or when any related restructuring
costs or termination benefits are recognised,
whichever is earlier.

The retirement benefit obligation recognised in
the balance sheet represents the present value
of defined-benefit obligation as reduced by the
fair value of plan assets.

c) Other benefits

Other long term benefits include compensated
absences, long term service benefit, pension and
sick leave. The liability towards other long term
benefits is determined by independent actuary
at every balance sheet date and service cost,
net interest on net defined liability/ (asset) are
recognised in profit and loss account.

2.12 Basic earning per share:

Basic earning per share is calculated by dividing the
net profit or loss (excluding other comprehensive
income) for the year attributable to equity shareholders
by the weighted average number of equity shares
outstanding during the year. The weighted average
number of equity shares outstanding during the year
is adjusted for events such as bonus issue, bonus
element in a right issue, shares split and reserve
share splits that have changed the number of
equity shares outstanding, without a corresponding
change in resources. For the purpose of calculating
diluted earnings per share, the net profit or loss
(excluding other comprehensive income) for the year
attributable to equity shareholders and the weighted
average number of shares outstanding during
the year are adjusted for the effects of all dilutive
potential equity shares.

2.13 Segment Information:

The Company is primarily engaged in the business of
"tobacco and allied products" and "Agro Commodities"
, which in terms of Ind AS 108 on "Segment Reporting"
constitutes a two reporting segments.

---

Mar 31, 2024

2 Significant Accounting Policies

2.1 Basis of preparation of financial statements:

These financial statements have been prepared In accordance with Indian Accounting Standards find AS), under the historical
cost convention on accrual basis except for certain financial instruments which are measured at fair values. The Ind AS are
prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 and relevant amendment rules issued thereafter.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

2.2 Use of Estimates and judgments:

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and
assumptions that affect the applications of the accounting policies and the reported amounts of assets and liabilities, disclosure
of contingent assets & liabilities at the date of the financial statements and the reported amounts of revenue and expenses
during the year. The estimates and assumptions used in the accompanying financial statements are based upon management''s
evaluation of the relevant facts and circumstances. Actual results may differ from the estimates and assumptions used in
preparing the accompanying financial statements.

23 Property, Plant and Equipment:

Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and impairment,
if any. Cost is inclusive of inward freight, duties and taxes and incidental expenses related to acquisition which is not
recoverable. All upgradation / enhancements are charged off as revenue expenditure unless they bring similar significant
additional benefits.

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

Depreciation on property, plant & equipment is calculated on Written Down Method in accordance with the provisions of
Schedule II of the Companies Act, 2013 keeping 5% of cost as residual value. The useful life of property, plant & equipment as
defined in Part C of schedule II of the Companies Act, 2013 has been taken for all property, plant & equipment except for Office
Equipments, Printer and Lab Equipments. In case of purchase / sale of assets during the year, depreciation has been charged on
pro rata basis from / up to date of commercial production / sale. Depreciation is not provided on Capital Work in Progress until
the assets are ready for its intended use.

The management believes that the useful lives as given below best represent the period over which the management expects to
use these assets. Hence, the useful lives for these assets is different from the useful lives as prescribed under Part C of schedule
II of the Companies Act, 2013;

Office Equipments 15 and 10 Years

Printer 6 Years

Lab Equipments 15 Years

Intangible Assets:

Intangible assets are stated at cost less accumulated amortization and net of impairments, if any. Intangible assets are
amortized over their estimated useful lives on straight-line basis. An intangible asset is recognized if it is probable that the
expected future economic benefits that are attributable to the asset will flow to the Cojjjzwnv-aa^its cost can be measured
^re"^ablv'' -

2.4 Inventories:

The inventories are valued at lower of cost or net realizable value, The cost of inventories is determined based on weighted
average cost method as permitted by Indian Accounting Standard 2 ¦ Inventories.

The basis of determining cost for various categories of inventories is as follows:¬
* Spares, consumables and accessories are valued on Weighted Average basis.

¦ Raw material are valued on Weighted Average basis.

* Work-in-progress are valued at cost of production (cost of materials and overhead up to the completed stage of production)

* Inventories of Finished goods are valued on Weighted Average basis or net realizable value whichever is less.

* Goods in transit are recorded at its purchase price.

2.5 Foreign Currency Transaction:

The functional and presentation currency of the Company is Indian Rupee. Transactions in foreign currency are accounted for at
the exchange rate prevailing on the transaction date. Current assets and current liabilities denominated in foreign currency are
translated at the exchange rate prevalent at the date of the balance sheet. Gains /losses arising on settlement as also on
translation of monetary items are recognized in the Statement of Profit and Loss.

2.6 Taxes on Income:

Taxes on income comprises of current taxes and deferred taxes. Current tax in the Statement of Profit and Loss is provided as
the amount of tax payable in respect of taxable income for the period using tax rates and tax laws enacted during the period,
together with any adjustment to tax payable in respect of previous years. Deferred tax is recognized on temporary differences
between the carrying amounts of assets and liabilities and the amounts used for taxation purposes (tax base), at the tax rates
and tax laws enacted or substantively enacted by the end of the reporting period.

2.7 Revenue Recognition:

Revenue is measured at the fair value of the consideration received or receivable for goods supplied Revenue from sale of
products is recognized when the company performs Its obligations to its customers and the amount of revenue can be
measured reliably and recovery of the consideration is probable. The timing of such recognition in case of sale of goods is when
the control over the same is transferred to the customer. Revenue from sale of goods excludes Excise Duty, Sales Tax/GST and
Trade Discount.

Interest income is recognised in the Statement of Profit and Loss using the effective interest method.

Dividend income is recognized in the Statement of Profit and Loss when the right to receive dividend is established-

2.8 Borrowing Cost:

Borrowing cost that are attributable to the acquisition / construction of qualifying assets are capitalized as part of the cost of
the respective assets. Other borrowing costs are recognized as expenses in the year in which they are incurred.

2.9 Leases:

The Company assesses at contract inception whether a contract is, or contains, a lease. A contract is, or contains, a lease if it
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a Lessee

Right-of-Use (ROU) assets are recognized at inception of a contract or arrangement for significant lease components at cost less
lease incentives, if any. ROU assets are subsequently measured at cost less accumulated depreciation and impairment losses, if
any. The cost of ROU assets includes the amount of lease liabilities recognized, initial direct cost incurred and lease payments
made at or before the lease commencement date. ROU assets are generally depreciated over the shorter of the lease term and
estimated useful lives of the underlying assets on a straight line basis, Lease term is determined based on consideration of facts
and circumstances that create an economic incentive to exercise an extension option, or not to exercise a termination option.
Lease payments associated with short-term leases and low value leases are charged to the Statement of Profit and Loss on a
straight line basis over the term of the relevant lease.

The Company recognises lease liabilities measured at the present value of lease payments to be made on the date of
recognition of the lease. Such lease liabilities do not include variable lease payments (that do not depend on an index or a rate),
which are recognised as expense in the periods in which they are incurred. Interest on lease liability is recognised using the
effective interest method. Lease liabilities are subsequently increased to reflect the accretion of interest and reduced for the
lease payments made. The carrying amount of lease liabilities is also remeasured upon modification of lease arrangement or
upon change in the assessment of the lease term. The effect of such remeasurements is adjusted to the value of the ROU
assets.

Company as a Lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as
operating leases. Where the Company is a lessor under an operating lease, the asset is capitalised within property, plant and
equipment or investment property and depreciated over its useful economic life. Payments^ueeeivecUjnder operating leases are
recognised in the Statement of Profit and Loss on a straight line basis over the term ofjHe^aSeN/A^N.

2.10 Financial instruments: Financial assets, Financial liabilities and Equity Instruments:

Financial Assets -

Recognition

Financial Assets are initially recognised at transaction price. Management determines the classification of an asset at initial
recognition depending on the purpose for which the assets were acquired. Financial assets are classified as those measured at:

(a) amortized cost, where the financial assets are held solely for collection of cash flows arising from payments of principal
and/or interest.

(b) fair value through other comprehensive income (FVTOCI), where the financial assets are held not only for collection of cash
flows arising from payments of principal and interest but also from the sale of such assets. Such assets are subsequently
measured at fair value, with unrealized gains and losses arising from changes in the fair value being recognised in other
comprehensive income.

(c) fair value through profit or loss (FVTPL), where the assets are managed in accordance with an approved investment strategy
that triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently measured at fair
value, with unrealized gains and losses arising from changes in the fair value being recognised in the Statement of Profit and
Loss in the period in which they arise.

Derecognition

Financial assets are derecognized when the right to receive cash flows from the assets has expired, or has been transferred, and
the Group has transferred substantially all of the risks and rewards of ownership. If the asset is one that is measured at:

(a) amortized cost, the gain or loss is recognised in the Statement of Profit and Loss;

(b) fair value through other comprehensive income, the cumulative fair value adjustments previously taken to

reserves are reclassified to the Statement of Profit and Loss unless the asset represents an equity investment, in which case the
cumulative fair value adjustments previously taken to reserves are reclassified within equity.

Financial Liabilities -
Recognition

Borrowings, trade payables and other financial liabilities are initially recognised at the value of the respective contractual
obligations. They are subsequently measured at amortized cost. Any discount or premium on redemption/ settlement is
recognised in the Statement of Profit and Loss as finance cost over the life of the liability using the effective interest method and
adjusted to the liability figure disclosed in the Balance Sheet.

Derecognition

Financial liabilities are derecognized when the liability is extinguished, that is, when the contractual obligation is discharged,
cancelled or on expiry.

Equity Instruments-

Equity instruments are recognised at the value of the proceeds, net of direct costs of the capital issue.

2.11 Employee Benefits:

a) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee
benefits. Benefits such as salaries, performance, incentives, etc, are recognised as an expense at the undiscounted amount in
the Statement of Profit and Loss for the year in which the employee renders the related service.

b) Post-Employment Benefits

Post retirement benefits like provident fund, superannuation, gratuity and post retirement medical benefits are provided for as
below:

Defined Contribution Plans

Contributions under Defined Contribution Plans i.e. provident fund & superannuation fund are recognised in the Statement of
Profit and Loss in the period in which the employee has rendered the service.

Defined Benefit Plans

For defined benefits retirement schemes the cost of providing benefits is determined using the Projected Unit Credit Method,
with actuarial valuation being carried out at each year end balance sheet date. Re-measurement gains and losses of the net
defined benefit liability/(asset) are recognised as an expense within employment costs,

Past service cost is recognised as an expense when the plan amendment or curtailment occurs or when any related
restructuring costs or termination benefits are recognised, whichever is earlier.

The retirement benefit obligation recognised in the balance sheet represents the present value of defined-benefit obligation as
reduced by the fair value of plan assets.

c) Other benefits

Other long term benefits include compensated absences, long term service benefit, pension and sick leave. The liability towards
other long term benefits is determined by independent actuary at every balance sfje^d^fg %nd se/vice cost, net interest on net
defined liability/ (asset) are recognised in profit and loss account.

*** s7„ri__

2.12 Basic earning per share;

Basic earning per share is calculated by dividing the net profit or loss (excluding other comprehensive income) for the year
attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The
weighted average number of equity shares outstanding during the year is adjusted for events such as bonus issue, bonus
element in a right issue, shares split and reserve share splits that have changed the number of equity shares outstanding,
without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss
(excluding other comprehensive income) for the year attributable to equity shareholders and the weighted average number of
shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

2.13 Segment Information:

The Company is primarily engaged in the business of "tobacco and allied products" and "Agro Commodities", which in terms of
Ind A5 108 on "Segment Reporting''’ constitutes a two reporting segments.

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Mar 31, 2015

(a) Use of Estimates

The preparation of the Financial Statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amount of income and expenses during the period. Examples of such estimates includes future obligation with respect to employees benefits, income taxes, useful lives of fixed assets etc. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

(b) Fixed Assets and Depreciation

i) Tangible Assets

Tangible assets are stated at their cost of acquisition net of receivable CENVAT and VAT Credits. All costs, direct or indirect, relating to the acquisition and installation of fixed assets and bringing it to its working condition for its intended use are capitalised and include borrowing costs and adjustments arising from foreign exchange rate variations directly attributable to construction or acquisition of fixed assets. Depreciation on fixed assets is provided on straight line method (SLM) on a pro-rata-basis at the rates and in the manner specified in Schedule II to the Companies Act, 2013. In respect of assets acquired/sold during the year, depreciation has been provided on pro-rata basis with reference to the days of addition/put to use or disposal.

(ii) Intangible Assets

Intangible Assets are stated at their cost of acquisition, less accumulated amortization and accumulated impairment losses thereon. An intangible asset is recognized where it is probable that future economic benefits attributable to the asset will flow to the enterprise and where its cost can be reliably measured. The depreciable amount of intangible assets is allocated based on the estimates of the useful life of the asset not exceeding five years.

(c ) Impairment of Assets

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

d) Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investment. Current investment are carried at lower of cost and fair value determined on an individual item basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

(e) Inventories

(i) Finished and Semi-Finished products produced and purchased by the Company are carried at lower of cost and net realisable value after providing for obsolescence, if any.

(ii) Work-in-progress is carried at lower of cost and net realisable value.

iii) Stock of raw materials, stores, spare parts and packing materials are valued at lower of cost less CENVAT Credit/ VAT availed or net realisable value.

iv) Cost of inventories comprises all costs of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition.

Liability for excise duty in respect of goods manufactured by the Company is accounted upon (v) removal of goods from the factory.

(f) Revenue Recognition

Income and expenditure is recognized and accounted for on accrual basis. 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. Revenue from sale of goods is recognized on transfer of significant risks and rewards of ownership to the customer and when no significant uncertainty exists regarding realisation of the consideration. Sales are recorded net of sales returns, sales tax/VAT, cash and trade discounts.

(g) Foreign Currency Transactions

The company follows Accounting Standard 11 issued by the Institute of Chartered Accountants of India to account for the foreign exchange transactions.

(h) Government Grants and Subsidies

Grants and Subsidies from the Government are recognized when there is reasonable certainty that the Grant/Subsidy will be received and all attaching conditions will be complied with. When the Grant or Subsidy relates to an expense item, it is recognized as income over the periods necessary to match them on a systematic basis to the costs, which it is intended to compensate. Where the Grant or Subsidy relates to an asset, its value is deducted from the gross value of the asset concerned in arriving at the carrying amount of the related asset. Government Grants of the nature of Promoters' contribution are credited to Capital Reserve and treated as a part of Shareholders' Funds.

(i) Retirement Benefits

Contributions to the provident fund and employees state insurance (if any) is made monthly at a pre-determined rate to the Provident Fund Commissioner and Employees State Insurance Fund respectively and debited to the profit & loss account on an accrual basis.

Provision for outstanding Leave Encashment benefit and Gratuity (if any) for employees, if any is accounted for on accrual basis.

(j) Borrowing Costs

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

(k) Lease Policy

(i) Finance Leases

Leases which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased item, are capitalised at the inception of the lease term at the lower of the fair value of the leased property and present value of minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized as finance costs in the Statement of Profit and Loss.

A Leased Asset is depreciated on a straight-line basis over the useful life of the asset or the useful life envisaged in Schedule II to the Companies Act, 2013, whichever is lower.

(ii) Operating Leases

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as Operating lease. Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term.

(l) Earning Per Share

The Company reports Basic and Diluted earnings per equity share in accordance with the Accounting Standard - 20 on Earning Per Share. In determining earning per share, the Company considers the net profit after tax and includes the post tax effect of any extraordinary/exceptional items. The number of shares used in computing basic earning per share is the weighted avergae number of equity shares outstanding during the period. The numbers of shares used in computing diluted earning per share comprises the weighted average number of equity shares that would have been issued on the conversion of all potential equity shares. Dilutive potential equity shares have been deemed converted as of the beginning of the period, unless issued at a later date.

(m) Provision for Current and Deferred Tax

Provision for current Income Tax and Wealth Tax are made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

(o) Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognize d when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2014

A) Accounting Convention

The financial statements are prepared under the historic cost convention bais and in accordance with the gererally accepted accounting principles in india and the provisions of the compaies Act, 1956, except for

B) Fixed Asset & Depreciation

cost less depreciation. Depreciation on assets is on written down value at the rates specified under the Income Tax Rules, 1962.

C) Revenue Recognition:

Items of incokme and items expenditure are of expenditues are recognised on accorual basis. Dividend income are accounted for as and when the right to receive the payment is established.

D) Investment

Investment are readily realisable and intended to be held not more than a year ae classified as current investment current investments are classied as Non Current Investments. Non current Investments.

E) Employee Benefits:

The provision of PF and ESI Act are not applicable to the Company as the number of employees are below the prescribed statutory limit. Termination expenses are recognised as an expense as and whenn incurred.

F) Contingent Liabilities:

Blance sheet, provisions are made in the accounts in respect of and have material effect on the position stated in the Balance Sheet.

G) Taxation:

Provision for current income tax is mode one, taking into consideration the provisions of the income Act, 1961. There is no resulting liming difference between book profit and taxable profit.

H) Earning per share

In determining basic earnings per share, the Company considers the net profit after tax and includes the post tax affect of any extra ordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprised the weighted average shares considered for deriving basic earnings per share and also the weighted average number of equity shares which could have ben issued on the conversion of all dilutive potential equity shares. The diluted potentia, equity shares are adjusted tor the proceeds recelavable, had the shares been actually issued at fair value. Diluted potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date.

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Mar 31, 2013

A) Accounting Convention:

The financial statements are prepared under the historic cost convention on accrual basis and in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956, except for

B) Fixed Assets & Depreciation:

Fixed Assets are stated at historical cost less depreciation. Depreciation on assets is charged on written down value at the rates specified under the income Tax Rules, 1962.

C) Revenue Recognition:

Items of Income and items of expenditures are recognised on accrual basis. Dividend income are accounted for as and when the right to receive the payment is established.

D) Investments:

Investments that are readily realisable and inteneded to be held not more than a year are classified as Current Investments.Current Investments are carried at cost or quoted/fair value, computed category wise. Long term investments are classied as Non Current investments.

E) Employee Benefits:

The Provisions of PF and ESI Act are not applicable to the Company as the number of employees are below the prescribed statutory limit. Termination expenses are recognised as an expense as and whenn incurred.

F) Contingent Liabilities:

These are disclosed by way of notes to the Balance Sheet, Provisions are made in the accounts in respect of those contingencies which are likely to materialise into liabilities after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

G) Taxation :

Provision for current income tax is made after taking into consideration the provisions of the income-tax Act, 1961. There is no resulting timing difference between book profit and taxable profit.

H) Earnings Per Share:

In determining basic earnings per share, the Company considers the net profit after tax and includes the post tax effct of any extra ordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprised the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have ben issued on the conversion of all dilutive potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value. Diluted potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date.

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Mar 31, 2012

A) Accounting Convention:

The financial statements are prepared under the historic cost convention on accrual basis and in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956, except for

B) Fixed Assets & Depreciation:

Fixed Assets are stated at historical cost less depreciation. Depreciation on assets is charged on written down value at the rates specified under the Income Tax Rules, 1962.

C) Revenue Recognition:

Items of Income and items of expenditures are recognised on accrual basis. Dividend income are accounted for as and when the right to receive the payment is established.

D) Investments:

Investments that are readily realisable and inteneded to be held not more than a year are classified as Current Investments.Current Investments are carried at cost or quoted/fair value, computed category wise. Long term investments are classied as Non Current Investments.

E) Employee Benefits:

The Provisions of PF and ESI Act are not applicable to the Company as the number of employees are below the prescribed statutory limit. Termination expenses are recognised as an expense as and whenn incurred.

F) Contingent Liabilities:

These are disclosed by way of notes to the Balance Sheet, Provisions are made in the accounts in respect of those contingencies which are likely to materialise into liabilities after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

G) Taxation:

Provision for current income tax is made after taking into consideration the provisions of the income-tax Act, 1961. There is no resulting timing difference between book profit and taxable profit.

H) Earnings Per Share:

In determining basic earnings per share, the Company considers the net profit after tax and includes the post tax effct of any extra ordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprised the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have ben issued on the conversion of all dilutive potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value. Diluted potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date.

I) Previous Year Figures:

The Financial Statetements for the year ended 31st March, 2011 had been prepared as per the then applicable pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of revised Schedule VI under the Companies Act, 1956 the financial statements for the year ended 31st March, 2012 are prepared as per revised Schedule VI. Accordingly, the previous year figures have also been reclassified to confirm to this year's classification. The adoption of revised Schedule VI for the previous year figures does not impact recognition and measurement principles followed for preparation fo financial statements.

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Mar 31, 2011

A) Accounting Convention:

The financial statements are prepared under the historic cost convention on accrual basis and in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956, except

B) Fixed Assets & Depreciation:

Fixed Assets are stated at historical cost less depreciation. Depreciation on assets is charged on written down value at the rates specified under the Income Tax Rules, 1962.

C) Revenue Recognition:

Items of Income and items of expenditures are recognised on accrual basis. Dividend income are accounted for as and when the right to receive the payment is established.

D) Investments:

Investments that are readily realisable and inteneded to be held not more than a year are classified as Current Investments.Current Investments are carried at cost or quoted/fair value, computed category wise. Long term investments are classied as Non Current Investments.

E) Employee Benefits:

The Provisions of PF and ESI Act are not applicable to the Company as the number of employees are below the prescribed statutory limit. Termination expenses are recognised as an expense as and whenn incurred.

F) Contingent Liabilities:

These are disclosed by way of notes to the Balance Sheet, Provisions are made in the accounts in respect of those contingencies which are likely to materialise into liabilities after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

G) Taxation :

Provision for current income tax is made after taking into consideration the provisions of the income-tax Act, 1961. There is no resulting timing difference between book profit and taxable profit.

H) Earnings Per Share:

In determining basic earnings per share, the Company considers the net profit after tax and includes the post tax effct of any extra ordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprised the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have ben issued on the conversion of all dilutive potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value. Diluted potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date.

I) Previous Year Figures:

The Financial Statetements for the year ended 31st March, 2010 had been prepared as per the then applicable pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of revised Schedule VI under the Companies Act, 1956 the financial statements for the year ended 31st March, 2011 are prepared as per revised Schedule VI. Accordingly, the previous year figures have also been reclassified to confirm to this year's classification. The adoption of revised Schedule VI for the previous year figures does not impact recognition and measurement principles folllowed for preparation fo financial statements.