Accounting Policies of Fundviser Capital (India) Ltd. Company

Mar 31, 2025

SIGNIFICANT ACCOUNTING POLICIES

2.2 Property, plant and equipment

a Tangible Assets are stated at cost of acquisition or cost of construction less depreciation. All
costs, relating to the acquisition and installation of fixed assets have been capitalised and include
financing costs relating to borrowed funds upto the date the assets are ready and put to use.

b There are no intangible assets.

c Profit/Losses arising from the retirement of and gains & losses arising from disposal of fixed
assets, which are carried at cost, are recognized in the statement of profit & loss.

d Depreciation & Amortisation

Depreciation on fixed assets is provided on Straight-Line-Method (SLM) over their useful life in the
manner as specified in the Companies Act, 2013.

Depreciation on assets added/ disposed off during the year has been provided on pro-rata basis
with reference to the days of addition/ disposal.

2.3 Investment Properties

Investment Property is measured initially at cost, including transaction costs.

2.4 Foreign Currency Transactions

(i) Functional currency and presentation currency :

The functional currency of the Company is the Indian rupee. These financial statements are
presented in Indian rupees, which is the Company''s functional and presentation currency.

(ii) Transactions and balances

Transactions denominated in foreign currencies are translated into the functional currency at
the exchange rates prevailing at the time of the transaction. Foreign exchange gains and losses
resulting from the settlement of such transactions and from Monetary assets and liabilities in
foreign currency, outstanding at the end of the year are converted into Indian currency at the rate
prevailing on the Balance Sheet date. Resulting gain or loss is recognized in statement of profit or
loss.However there are no foreign currency transactions during the financial Year.

At the reporting date, non-monetary items which are carried in terms of historical cost denominated
in foreign currency are reported using the exchange rate at the date of transaction.

2.5 Investments

Investments that are readily realizable and are intended to be held for not more than one year
from the date, on which such investments are made, are classified as current investments. All the
other investments are classified as Non current investments. Current investments and Non Current
Investments are carried at Fair Market Value / Net realizable value at the Balance sheet date.

2.6 Impairment of Assets

Assessment is done at each Balance Sheet date as to whether there is any indication that a tangible
asset may be impaired. For the purpose of assessing impairment, the smallest identifiable group of
asset that generates cash inflows from continuing use that are largely independent of the cash inflow
from other assets or groups of assets, is considered as a cash generating unit. If any such indication
exists, an estimate of the recoverable amount of the asset/cash generating unit is made.

Assets whose carrying value exceeds their recoverable amount are written down to the recoverable
amount. Recoverable amount is higher of an asset''s or cash generating unit''s net selling price and its
value in use. Value in use is the present value of estimated future cash flows expected to arise from the
continuing use of an assets and from its disposal at the end of its useful life. Assessment is also done
at each Balance Sheet date as to whether there is any indication that an impairment loss recognized
for an asset in prior accounting periods may no longer exist or may have decreased.

2.7 Recognition of Income & Expenditure

a Revenue/ Incomes and Costs/ Expenditure are generally accounted on accrual, as they are
earned or incurred.

b Interest income is accounted on accrual basis.

c Dividend income is accounted for when the right to receive it is established.

2.8 Employee Benefits

a) Defined Benefit Plan

1 Gratuity

The number of Employees employed is less than the threshold limit and therefore provision
for Gratuity is not applicable as on the end of the year.

2 Leave Salary / Wages

No leave is accumulated beyond one year. Provision is made for leave accumulated at the
end of every year and is paid in the immediate next year.

3 Bonus

Bonus is part of employee costs and is paid during the year.
b) Defined Contribution Plan

The Company incurs no expenditure under any defined contribution plan.

2.9 Segment Reporting

The Company has deployed major funds in the Investment in Equity and deposits yielding Interest
income. Accordingly it is operating its business in single segment.

2.10 Leases

Leases in which a significant portion and rewards of ownership are not transferred to the company
as lessee are classified as operating leases. Lease Rentals for assets taken on operating lease are
recognized as under expenses in Profit and Loss Account over the lease term on accrual basis. The
same have ceased to exist in earlier year.

2.11 Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. Current taxes are measured at
the amounts expected to be paid using the applicable tax rates and tax laws. Deferred tax assets
and liabilities are measured using tax rates and tax laws that have been or substantively enacted
as of balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is
recognized in the profit and loss account in the year of change. Deferred tax assets and liabilities are
recognized for the future tax consequences attributable to differences between the financial statements
carrying amounts of existing assets and liabilities and their respective tax bases and operating loss
carry forwards.

---

Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES

2.2 Property, plant and equipment

a Tangible Assets are stated at cost of acquisition or cost of construction less depreciation. All costs, relating to the acquisition and installation of fixed assets have been capitalised and include financing costs relating to borrowed funds upto the date the assets are ready and put to use. However there are no tangible assets owned by the company as on closing date of balance sheet.

b There are no intangible assets.

c Profit/Losses arising from the retirement of and gains & losses arising from disposal of fixed assets, which are carried at cost, are recognized in the statement of profit & loss.

d Depreciation & Amortisation

Depreciation on fixed assets is provided on Straight-Line-Method (SLM) over their useful life in the manner as specified in the Companies Act, 2013.

Depreciation on assets added/ disposed off during the year has been provided on pro-rata basis with reference to the days of addition/ disposal.

No Depreciation is charged during the year in absence of Fixed Assets

2.3 Investment Properties

Investment Property is measured initially at cost, including transaction costs.

2.4 Foreign Currency Transactions

(i) Functional currency and presentation currency :

The functional currency of the Company is the Indian rupee. These financial statements are presented in Indian rupees, which is the Company''s functional and presentation currency.

(ii) Transactions and balances

Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the time of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from Monetary assets and liabilities in foreign currency, outstanding at the end of the year are converted into Indian currency at the rate prevailing on the Balance Sheet date. Resulting gain or loss is recognized in statement of profit or loss.However there are no foreign currency transactions during the financial Year.

At the reporting date, non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of transaction.

2.5 Investments

Investments that are readily realizable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All the other investments are classified as Non current investments. Current investments and Non Current Investments are carried at Fair Market Value / Net realizable value at the Balance sheet date.

2.6 Impairment of Assets

Assessment is done at each Balance Sheet date as to whether there is any indication that a tangible asset may be impaired. For the purpose of assessing impairment, the smallest identifiable group of asset that generates cash inflows from continuing use that are largely independent of the cash inflow from other assets or groups of assets, is considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of the asset/cash generating unit is made.

Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount. Recoverable amount is higher of an asset''s or cash generating unit''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an assets and from its disposal at the end of its useful life. Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting periods may no longer exist or may have decreased.

2.7 Recognition of Income & Expenditure

a Revenue/ Incomes and Costs/ Expenditure are generally accounted on accrual, as they are earned or incurred.

b Interest income is accounted on accrual basis.

c Dividend income is accounted for when the right to receive it is established.

2.8 Employee Benefits

a) Defined Benefit Plan

1 Gratuity

The number of Employees employed is less than the threshold limit and therefore provision for Gratuity is not applicable as on the end of the year.

2 Leave Salary / Wages

No leave is accumulated beyond one year. Provision is made for leave accumulated at the end of every year and is paid in the immediate next year.

3 Bonus

Bonus is part of employee costs and is paid during the year. b) Defined Contribution Plan

The Company incurs no expenditure under any defined contribution plan.

2.9 Segment Reporting

The Company has deployed major funds in the Investment in Equity and deposits yielding Interest income. Accordingly it is operating its business in single segment.

2.10 Leases

Leases in which a significant portion and rewards of ownership are not transferred to the company as lessee are classified as operating leases. Lease Rentals for assets taken on operating lease are recognized as under expenses in Profit and Loss Account over the lease term on accrual basis. The same have ceased to exist in earlier year.

2.11 Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. Current taxes are measured at the amounts expected to be paid using the applicable tax rates and tax laws. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been or substantively enacted as of balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the profit and loss account in the year of change. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards.

---

Mar 31, 2014

1.1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2.1.2 In spite of the fact that the about 50% of the accumulated surplus is lost during one single year, the going concern assumption used in the preparation of the financial statements is appropriate and justified in the opinion of the management, because according to the management, the valuation and realisibility / payability of all assets and liabilities do not change materially with the change of the assumption.

2.2 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

2.3 Inventories

Raw Materials are valued at lower of cost price on FIFO basis or net realisable value.

Finished Goods are valued at cost or net realisable value whichever is lower.

Work in Process is treated as respective raw materials since they are in a mixed state and it is impracticable to assess its cost as well as the realisable value.

The quantities of Raw Materials and Finished Goods including valuation thereof, are as certified by the management.

2.4 Cash and Cash Equivalents (for purposes of Cash Flow Statement) Cash comprises cash on hand and demand deposits with banks. Cash equivalents are term-deposits with banks '' since these are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.5 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.6 Fixed Assets

Tangible Assets are stated at cost of acquisition or cost of construction less depreciation. All costs, relating to the acquisition and installation of fixed assets have been capitalised and include financing costs relating to borrowed funds upto the date the assets are ready and put to use. The said expenditure is capitalised by allocating the same to the various Fixed Assets, except land, on the basis of cost of the assets before such allocation.

Accounting Standard (AS) 28, ''Impairment of Assets'' has not been followed by the Company. Its impact on the profits is not known.

There are no intangible assets.

2.7 Depreciation & Amortisation

Depreciation has been provided for on Straight-Line-Method (SLM) at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956.

Premium paid on leasehold land is amortised equally over the period of lease.

2.8 Impairment of Assets

Accounting Standard (AS) 28, ''Impairment of Assets'' has not been followed by the Company. Its impact on the profits is not known.

2.9 Revenue Recognition

Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

There is no income from services

2.10 Other Income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

2.11 Foreign Currency Transactions

Transactions in foreign currency are accounted for at exchange rates prevailing at the time of the transactions. All exchange gains/losses arising out of such transaction are taken to Profit and Loss Account. Foreign currency monetary Assets and Liabilities are translated at the exchange rates prevailing on the last working day of the accounting year. There were no forward exchange contracts during the year.

2.12 Export Incentives

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

2.13 Investments

Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments.

2.14 Employee Benefits

Please refer note number 20 below.

2.15 Segment Reporting

The Company operates in single segment of manufacturing and saie of dye intermediates.

2.16 Leases

There are no transactions where the Company is a lessor.

Premium paid on leasehold land is amortised equally over the period of lease.

In case of other assets taken on lease where lease arrangements are such that the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on accrual basis.

2.17 Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. Current taxes are measured at the amounts expected to be paid using the applicable tax rates and tax laws. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been or substantively enacted as of balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the profit and loss account in the year of change. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards.

2.18 Provisions and Contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (including retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are disclosed in the Notes.

2.19 Service Tax Input Credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilising the credits.

---

Mar 31, 2013

1.1 Basis of accounting and preparation of financial statements The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Inventories

Raw Materials are valued at lower of cost price on FIFO basis or net realisable value.

Finished Goods are valued at cost or net realisable value whichever is lower.

Work in Process is treated as respective raw materials since they are in a mixed state and it is impracticable to assess its cost as well as the realisable value.

The quantities of Raw Materials and Finished Goods including valuation thereof, are as certified by the management.

1.4 Cash and Cash Equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are term-deposits with banks since these are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.5 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Fixed Assets

Tangible Assets are stated at cost of acquisition or cost of construction less depreciation. All costs, relating to the acquisition and installation of fixed assets have been capitalised and include financing costs relating to borrowed funds upto the date the assets are ready and put to use. The said expenditure is capitalised by allocating the same to the various Fixed Assets, except land, on the basis of cost of the assets before such allocation.

Accounting Standard (AS) 28, ''Impairment of Assets'' has not been followed by the Company. Its impact on the profits is not known.

There are no intangible assets.

1.7 Depreciation & Amortisation

Depreciation has been provided for on Straight-Line-Method (SLM) at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956.

Premium paid on leasehold land is amortised equally over the period of lease.

1.8 Impairment of Assets

Accounting Standard (AS) 28, ''Impairment of Assets'' has not been followed by the Company. Its impact on the profits is not known.

1.9 Revenue Recognition

Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include Excise Duty but exclude Sales Tax and Value Added Tax.

There is no income from services

1.10 Other Income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.11 Foreign Currency Transactions

Transactions in foreign currency are accounted for at exchange rates prevailing at the time of the transactions. All exchange gains/losses arising out of such transaction are taken to profit and Loss account. Foreign currency monetary Assets and Liabilities are translated at the exchange rates prevailing on the last working day of the accounting year. There were no forward exchange contracts during the year.

1.12 Export Incentives

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

1.13 Investments

Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments.

1.14 Employee Benefits

Please refer note number 28 below.

1.15 Segment Reporting

The Company identifies primary segments based on the geographical source as domestic and export sale.

No secondary segment is identified as the Company operates in a single business segment of manufacturing of dye intermediates.

Segment revenue and segment results have been identified to segments on the basis of their relationship to the sale in domestic or export markets respectively.

Revenue, expenses, Assets and Liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue/expenses/Assets/Liabilities.

1.16 Leases

There are no transactions where the Company is a lessor. Premium paid on leasehold land is amortised equally over the period of lease.

In case of other assets taken on lease where lease arrangements are such that the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on accrual basis.

1.17 Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. Current taxes are measured at the amounts expected to be paid using the applicable tax rates and tax laws. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been or substantively enacted as of Balance Sheet date. The effect on deferred tax Assets and Liabilities of a change in tax rates is recognized in the Profit and Loss Account in the year of change. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing Assets and Liabilities and their respective tax bases and operating loss carry forwards.

1.18 Provisions and Contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (including retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

1.19 Service Tax Input Credit

Service Tax Input Credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilising the credits.

---

Mar 31, 2012

1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules' 2006 (as amended) and the relevant provisions of the Companies Act' 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Inventories

Raw Materials are valued at lower of cost price on FIFO basis or net realisable value. Finished Goods are valued at cost or net realisable value whichever is lower.

Work in Process is treated as respective raw materials since they are in a mixed state and it is impracticable to assess its cost as well as the realisable value.

The quantities of Raw Materials and Finished Goods including valuation thereof' are as certified by the management.

1.4 Cash and Cash Equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are term-deposits with banks since these are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.5 Cash Flow Statement

Cash flows are reported using the indirect method' whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating' investing and financing activities of the Company are segregated based on the available information.

1.6 Fixed Assets

Tangible Assets are stated at cost of acquisition or cost of construction less depreciation. All costs' relating to the acquisition and installation of fixed assets have been capitalised and include financing costs relating to borrowed funds upto the date the assets are ready and put to use. The said expenditure is capitalised by allocating the same to the various Fixed Assets' except land' on the basis of cost of the assets before such allocation.

Accounting Standard (AS) 28' 'Impairment of Assets' has not been followed by the Company. Its impact on the profits is not known.

There are no intangible assets.

1.7 Depreciation & Amortisation

Depreciation has been provided for on Straight-Line-Method (SLM) at the rates and in the manner prescribed in schedule XIV of the Companies Act' 1956.

Premium paid on leasehold land is amortised equally over the period of lease.

1.8 Impairment of Assets

Accounting Standard (AS) 28' 'Impairment of Assets' has not been followed by the Company.

1.9 Revenue Recognition

Sale of goods

Sales are recognised' net of returns and trade discounts' on transfer of significant risks and rewards of ownership to the buyer' which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

There is no income from services

1.10 Other Income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.11 Foreign Currency Transactions

Transactions in foreign currency are accounted for at exchange rates prevailing at the time of the transactions. All exchange gains/losses arising out of such transaction are taken to profit and Loss account. Foreign currency monetary assets and liabilities are translated at the exchange rates prevailing on the last working day of the accounting year. There were no forward exchange contracts during the year.

1.12 Export Incentives

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

1.13 Investments

Long-term investments (excluding investment properties)' are carried individually at cost less provision for diminution' other than temporary' in the value of such investments.

1.14 Employee Benefits

Please refer note number 28 below.

1.15 Segment Reporting

The Company identifies primary segments based on the geographical source as domestic and export sale.

No secondary segment is identified as the company operates in a single business segment of manufacturing of dye intermediates.

Segment revenue and segment results have been identified to segments on the basis of their relationship to the sale in domestic or export markets respectively.

Revenue' expenses' assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities.

1.16 Leases

There are no transactions where the Company is a lessor. Premium paid on leasehold land is amortised equally over the period of lease.

In case of other assets taken on lease where lease arrangements are such that the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on accrual basis.

1.17 Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. Current taxes are measured at the amounts expected to be paid using the applicable tax rates and tax laws. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been or substantively enacted as of balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the profit and loss account in the year of change. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards.

1.18 Provisions and Contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (including retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

1.19 Service Tax Input Credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilizing the credits.

---

Mar 31, 2011

1.1. Revenue Recognition of Income and Expenditure

All income and expenditure are accounted for on accrual basis except where stated otherwise.

Sales, other Income & Purchases

Sales are net of taxes. Duty Draw Back, if any, is classified under the head other Income. Purchases are net of taxes.

1.2. Inventories

Raw Materials are valued at lower of cost price on FIFO basis or net realisable value. Finished Goods are valued at cost or net realisable value whichever is lower.

Work in Process is treated as respective raw materials since they are in a mixed state and it is impracticable to assess its cost as well as the realisable value.

1.3. Foreign Currency Transactions

Transactions in foreign currency are accounted for at exchange rates prevailing at the time of the transactions. All exchange gains/Losses arising out of such transactions are taken to profit and Loss account. Foreign currency monetary assets and liabilities are translated at the exchange rates prevailing on the last working day of the accounting year. There were to forward exchange contracts during the year.

1.4. Fixed Assets

Fixed Assets are stated at cost of acquisition or cost of construction less depreciation. All costs, relating to the acquisition and installation of fixed assets have been capitalised and include financing costs relating to borrowed funds upto the date the assets are ready and put to use. The said expenditure is capitalised by allocating the same to the various Fixed Assets, except land, on the basis of cost of the assets before such allocation.

Accounting Standard (AS) 28, 'Impairment of Assets' has not been followed by the Company. It's impact on Profits is not known.

1.5. Depreciation & Amortisation

Depreciation has been provided for on Straight-Line-Method (SLM) at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956.

Premium paid on leasehold land is amortised equally over the period of lease.

1.6. Impairment of Assets

Accounting Standard (AS) 28, 'Impairment of Assets' has not been followed by the company.

1.7. Employee Benefits

Refer Note No. 17 below.

1.8. Bonus

Bonus has been provided for.

1.9. Excise Duty

Provision has been made on Finished Goods in stock on the year end date.

1.10. Contingent Liabilities

Contingent Liabilities are not provided for but are disclosed in the Notes to Accounts giving nature of liability and its quantum, if ascertained.

1.11. Taxes on Income

1.11.1 Tax expense for the year comprises of current tax, fringe benefit tax and deferred tax. Current taxes are measured at the amounts expected to be paid using the applicable tax rates and tax laws. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been or substantively enacted as of balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the profit and loss account in the year of change. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards.

---

Mar 31, 2010

1.1. Revenue Recognition of Income and Expenditure

All income and expenditure are accounted for on accrual basis except where stated otherwise. Sales, other Income & Purchases

Sales are net of taxes. Duty Draw Back, if any, is classified under the head other Income. Purchases are net of taxes.

1.2. Inventories

Raw Materials are valued at lower of cost price on FIFO basis or net realisable value. Finished Goods are valued at cost or net realisable value whichever is lower.

Work in Process is treated as respective raw materials since they are in a mixed state and it is impracticable to assess its cost as well as the realisable value.

1.3. Foreign Currency Transactions

Transactions in foreign currency are accounted for at exchange rates prevailing at the time of the transactions. All exchange gains/Losses arising out of such transactions are taken to profit and Loss account. Foreign currency monetary assets and liabilities are translated at the exchange rates prevailing on the last working day of the accounting year. There were to forward exchange contracts during the year.

1.4. Fixed Assets

Fixed Assets are stated at cost of acquisition or cost of construction less depreciation. All costs, relating to the acquisition and installation of fixed assets have been capitalised and include financing costs relating to borrowed funds upto the date the assets are ready and put to use. The said expenditure is capitalised by allocating the same to the various Fixed Assets, except land, on the basis of cost of the assets before such allocation.

Accounting Standard (AS) 28, Impairment of Assets has not been followed by the Company. Its impact on Profits is not known.

1.5. Depreciation & Amortisation

Depreciation has been provided for on Straight-Line-Method (SLM) at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956.

Premium paid on leasehold land is amortised equally over the period of lease.

1.6. Impairment of Assets

Accounting Standard (AS) 28, Impairment of Assets has not been followed by the company.

1.7. Employee Benefits Refer Note No. 17 below.

1.8. Bonus

Bonus has been provided for.

1.9. Excise Duty

Provision has been made on Finished Goods in stock on the year end date.

1.10. Contingent Liabilities

Contingent Liabilities are not provided for but are disclosed in the Notes to Accounts giving nature of liability and its quantum, if ascertained.

1.11. Taxes on Income

1.11.1 Tax expense for the year comprises of current tax, fringe benefit tax and deferred tax. Current taxes are measured at the amounts expected to be paid using the applicable tax rates and tax laws. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been or substantively enacted as of balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the profit and loss account in the year of change. Deferred tax assets and Labilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards.