Accounting Policies of Ganon Products Ltd. Company

Mar 31, 2025

2. SIGNIFICANT ACCOUNTING POLICIES:

a) Basis of preparation

i) These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS),
under the historical cost convention on the accrual basis except for certain financial instruments
which are measured at fair values, the provisions of the Companies Act, 2013 (“the Act”) (to the
extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind
AS are prescribed under Section 133 of the Act 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. As the year-end figures are taken from the source and rounded to the nearest digits, the figures
reported for the previous quarters might not always add up to the year-end figures reported in this
statement.

ii) Historical cost convention the financial statements have been prepared on a historical cost basis,
except for the following:

• Certain financial assets and liabilities that are measured at fair value;

• Defined benefit plans - plan assets measured at fair value;

b) Foreign currency transaction

i) Functional and presentation currency: Items included in the financial statements are measured
using the currency of the primary economic environment in which the entity operates (‘the functional
currency’). The financial statements are presented in Indian National Rupee which is the Company’s
functional and presentation currency.

ii) Transactions and balances: Foreign currency transactions are translated into the functional currency
using the exchange rates at the dates of the transactions. Exchange differences arising from foreign
currency fluctuations are dealt with on the date of payment/ receipt. Assets and Liabilities related
to foreign currency transactions remaining unsettled at the end of the period/ year are translated at
the period/ year end rate. The exchange difference is credited / charged to Profit & Loss Account in
case of revenue items and capital items. Forward exchange contracts entered into, to hedge foreign
currency risk of an existing asset/ liability. The premium or discount arising at the inception of forward
exchange contract is amortized and recognized as an expense/ income over the life of the contract.
Exchange differences on such contracts, except the contracts which are long-term foreign currency
monetary items, are recognized in the statement of profit and loss in the period in which the exchange
rates change. Any profit or loss arising on cancellation or renewal of such forward exchange contract
is also recognized as income or as expense for the period.

c) Government grants

Government grants are not recognised until there is reasonable assurance that the Company will comply
with the conditions attached to them and that the grants will be received. Government grants relating to
income are deferred and recognized in the profit or loss over the period necessary to match them with the
costs they are intended to compensate and presented within other income. Government grants relating to
the purchase of property, plant and equipment are included in non-current liabilities as deferred income
and are credited to profit and loss on a straightline basis over the expected lives of the related assets
and presented within other income. The benefit of a government loan at a below-market rate of interest is
treated as a government grant, measured as the difference between proceeds received and the fair value
of the loan based on prevailing market interest

d) Revenue Recognition

i) Revenue from Sales of Goods & Services

The Company recognizes revenue in accordance with Ind- AS 115. Revenue is recognized when a
customer obtains control of goods or services and thus has the ability to direct the use and obtained
the benefits of the goods or services. Any advance received against supply of the goods and services
is recognized under the head current liabilities, sub head trade and other payable. Under Ind AS 115,
revenue is recognized at an amount that reflects the consideration to which an entity expects to be
entitled in exchange for transferring goods or services to a customer. The new revenue standard will
supersede all current revenue recognition requirements under Ind AS.

ii) Interest income

Interest income from a financial asset is recognized when it is probable that the economic benefits will
flow to the Company and the amount of income can be measured reliably. Interest income is accrued
on a time basis, by reference to the principal outstanding and at the effective interest rate applicable,
which is the rate that exactly.

e) Taxation

Income tax expenses comprise current tax expense and the net changes in the deferred tax asset or
inability during the year. Current & deferred taxes are recognized in the statement of Profit & Loss, except
when they relate to items that are recognized in other comprehensive income or directly in equity, in which
case, the current & deferred tax are also recognized in other comprehensive income or directly in equity,
respectively.

i) Current income tax

Income tax expense is the aggregate amount of Current tax. Current tax is the amount of income tax
determined to be payable in respect of taxable income for an accounting period or computed on the
basis of the provisions of Section 115JB of Income Tax Act, 1961 by way of minimum alternate tax at
the prescribed percentage on the adjusted book profits of a year, when Income Tax Liability under the
normal method of tax payable basis works out either a lower amount or nil amount compared to the
tax liability u/s 115JA.

ii) Deferred Tax

Deferred tax is recognised, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying values in the financial statements. However, deferred
tax are not recognised if it arises from initial recognition of an asset or liability in a transaction other
than a business combination that at the time of the transaction affects neither accounting nor taxable
profit or loss. Deferred tax assets are recognised only to the extent that it is probable that future
taxable profit will be available against which the temporary differences can be utilized. However, if
these are unabsorbed depreciation, carry forward losses and items relating to capital losses, deferred
tax assets are recognised when there is reasonable certainty that there will be sufficient future taxable
income available to realize the assets. Deferred tax assets in respect of unutilized tax credits which
mainly relate to minimum alternate tax are recognised to the extent it is probable that such unutilized
tax credits will get realized. The unrecognized deferred tax assets/carrying amount of deferred tax
assets are reviewed at each reporting date for recoverability and adjusted appropriately. Deferred
tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the
reporting date and are expected to apply when the related deferred income tax asset is realized or the
deferred income tax liability is settled. Income tax assets and liabilities are off-set against each other
and the resultant net amount is presented in the balance sheet, if and only when, (a) the Company
currently has a right to set-off the current income tax assets and liabilities, and (b) when it relate to
income tax levied by the same taxation authority and where there is an intention to settle the current
income tax balances on net basis.

f) Leases

The Leases of property, plant and equipment where the Company, as lessee, has substantially all the
risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the
lease’s inception at the fair value of the leased property or, if lower, the present value of the minimum
lease payments. The corresponding rental obligations, net of finance charges, are included in borrowings
or other financial liabilities as appropriate.

Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the
profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period.

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the
Company as lessee are classified as operating leases. Payments.

g) Impairment of assets

At the end of each reporting year, the company reviews the carrying amounts of its tangible assets
and intangible assets to determine whether there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of the impairment loss (if any).

Property plant and equipment are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Recoverable amount of assets
to be held and used is the higher of fair value less cost of disposal or value in use as envisaged in
Ind-AS 36. If such assets are considered to be impaired, the impairment to be recognized is measured
by the amount by which the carrying amount of the asset exceeds the recoverable value of the asset.
Impairment loss is recognized in the statement of profit and loss except for properties previously revalued
with revaluation taken to other comprehensive income. For such properties impairment loss is recognized
in other comprehensive income up to the amount of any previous revaluation.

h) Inventories

The general practice adopted by the company for valuation of inventory is as under:

i) Raw Materials *At lower of cost and net realizable value.

ii) Stores and spares At cost

iii) Work-in-process/ semi-finished goods At material cost plus labour and other appropriate portion of
production and administrative overheads and depreciation

iv) Finished Goods/ Traded Goods At lower of cost and net realizable value.

v) Finished Goods at the end of trial run At net realizable value.

vi) Scrap material At net realizable value.

vii) Tools and equipment’s At lower of cost and disposable value. ‘Material and other supplies held
for use in the production of the inventories are not written down below cost if the finished goods in
which they will be incorporated are expected to be sold at or above cost. Costs of inventories are
determined on a weighted average basis. Net realizable value represents the estimated selling price
for inventories less all estimated costs of completion and costs necessary to make the sale.

i) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash
on hand, deposits held at call with financial institutions, other short- term, highly liquid investments with
original maturities of three months or less that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value.

j) Trade receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using
effective interest method, less provision for impairment.

k) Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end of
financial year which are unpaid. The amounts are unsecured are presented as current liabilities unless
payment is not due within 12 months after the reporting period. They are recognized initially at their fair
value and subsequently measured at amortized cost using the effective interest method.

l) Borrowings

Borrowings are initially recognized at fair value, net of transaction cost incurred. Borrowings are
subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs)
and the redemption amount is recognized in profit or loss over the period of the borrowings using the
effective interest method. Fees Paid on the establishment of loan facilities are recognized as transaction
costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In
this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is
probable that some or all the facility will be drawn down, there is capitalized as a prepayment for liquidity
services and amortized over the period of the facility to which it relates. Borrowings are removed from
the balance sheet when the obligation specified in the contract is discharged, canceled or expired. The
difference between the carrying amount of a financial liability that has been extinguished or transferred to
another party and the consideration paid, including any non-cash assets transferred or liabilities assumed,
is recognized in profit or loss. Where the terms of a financial liability are renegotiated and the entity issues
equity instruments to a creditor to extinguish all or part of the liability (debt for equity swap), a gain or loss
is recognized in profit or loss, which is measured as the difference between the carrying amount of the
financial liability and the fair value of the equity instrument issued.

m) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset as defined in Ind-AS 23 are capitalized during the period of time that is
required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that
necessarily take a substantial period of time to get ready for their intended use or sale. Investment income
earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets
is deducted from the borrowing cost eligible for capitalization. Any related foreign currency fluctuations on
account of qualifying asset under construction is capitalized and added to the cost of asset concerned.
Other borrowing costs are expensed as incurred.

n) Investments and other financial assets
i) Classification

The Company classifies its financial assets in the following measurement categories:

• Those to be measured subsequently at fair value (either through other comprehensive income,
or through profit or loss), and

• Those measured at amortized cost.

The classification depends on the entity’s business model for managing the financial assets and
the contractual terms of the cash flows. For assets measured at fair value, gains and losses will
either be recorded in Statement of profit or loss or other comprehensive income. For investments
in debt instruments, this will depend on the business model in which the investment is held. For
investments in equity instruments, this will depend on whether the Company has made an
irrevocable election at the time of initial recognition to account for equity investment at fair value
through other comprehensive income.

ii) Measurement

At initial recognition, the company measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss, transaction costs that are directly attributable to
the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through
profit or loss are expenses in profit or loss.

Debt instruments:

Subsequent measurement of debt instruments depends on the Company’s business model for
managing the asset and the cash flow characteristics of the asset. There are three measurement
categories into which the Company classifies its debt instruments.

Amortized cost:

Assets that are held for collection of contractual cash flows where those cash flows represent
solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt
investment that is subsequently measured at amortized cost and is not part of a hedging relationship
is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these
financial assets is included in finance income using the effective interest rate method.

Fair value through other comprehensive income (FVOCI):

Assets that are held for collection of contractual cash flows and for selling the financial assets, where
the assets’ cash flows represent solely payments of principal and interest, are measured at fair value
through other comprehensive income (FVOCI). Movements in the carrying amount are taken through
OCI, except for the recognition of impairment gains or losses, Interest revenue and foreign exchange
gains and losses which are recognized in profit and loss. When the financial asset is derecognized,
the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit or loss
and recognized in other gains/(losses). Interest income from these financial assets is included in
other income using the effective interest rate method.

Fair value through profit or loss:

Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through
profit or loss. A gain or loss on debt investment that is subsequently measured at fair value through
profit or loss is recognized in profit or loss and presented net in the statement of profit and loss in the
period in which it arises. Interest income from these financial assets is included in other income.

Equity instruments:

The Company subsequently measures all equity investments at fair value. Where the company’s
management has elected to present fair value gains and losses on equity investments in other
comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit
or loss. Dividends from such investments are recognized in profit or loss as other income when the
Company’s right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognized in
the other income. Impairment losses (and reversal of impairment losses) on equity investments
measured at FVOCI are not reported separately from other changes in fair value.

iii) Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its
assets carried at amortized cost and FVOCI debt instruments. The impairment methodology applied
depends on whether there has been a significant increase in credit risk. Ref Note 30 details how
the Company determines whether there has been a significant increase in credit risk. For trade
receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial
Instruments, which requires expected lifetime losses to be recognized from initial recognition of the
receivables.

iv) Derecognition of financial assets

Financial asset is derecognized only when:

• The Company has transferred the rights to receive cash flow from the financial asset retains the
contractual rights to receive the cash flows of the financial assets, but assumes a contractual
obligation to pay cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred
substantially all risks and rewards of ownership of the financial asset. In such cases, the financial
asset is derecognized. Where the entity has not transferred substantially all risks and rewards of
ownership of the financial asset is not derecognized.

Where the entity has neither transferred a financial asset nor retains substantially all risks and
rewards of ownership of the financial asset, the financial asset is derecognized if the Company
has not retained control of the financial asset. Where the Company retains control of the financial
asset, the asset is continued to be recognized to the extent of continuing involvement in the
financial asset.

o) Employee benefits

i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related service
are recognized in respect of employees’ services up to the end of the reporting period and are
measured at the amounts expected to be paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the balance sheet.

ii) Other long-term employee benefit obligations

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end
of the period in which the employees render the related service. They are therefore measured at the
present value of expected future payments to be made in respect of services provided by employees
up to the end of the reporting period using the projected unit credit method. The benefits are discounted
using the market yields at the end of the reporting period that have terms approximating to the terms
of the related obligations. Remeasurements as a result of the experience adjustments and changes
in actuarial assumptions are recognized in profit or loss. The obligations are presented as current
liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement
for at least twelve months after the reporting period, regardless of when the actual settlement is
expected to occur.

iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) Defined benefit plans such as gratuity;

Gratuity & Leave Encashment obligations

The liability or assets recognized in the balance sheet in respect of gratuity & Leave Encashment
plans is the present value of the defined benefit obligation at the end of the reporting period less
the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries
using the projected unit credit method.The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows by reference to market yields at
the end of the reporting period on government bonds that have terms approximating to the terms
of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is included in employee benefit
expenses in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognized in the period in which they occur, directly in other comprehensive
income. They are included in retained earnings in the statement of changes in equity and in the
balance sheet. Changes in the present value of the defined benefit obligation resulting from plan
amendments or curtailment are recognized immediately in profit or loss.

p) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorized and no longer
at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of
the reporting period.

q) Earnings per share

i) Basic earnings per share: Basic earnings per share are calculated by dividing: •

The profit attributable to owners of the company. • By the weighted average number of equity
shares outstanding during the financial year.

ii. Diluted earnings per share: diluted earnings per share adjust the figures used in the determination
of basic earnings per share to take into account: The after income tax effect of interest and other
financing costs associated with dilutive potential equity shares, and •The weighted average number
of additional equity shares that would have been outstanding assuming the conversion of all dilutive
potential equity shares.

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Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES:

a) Basis of preparation

i) These financial statements are prepared in accordance with Indian Accounting
Standards (Ind AS), under the historical cost convention on the accrual basis except
for certain financial instruments which are measured at fair values, the provisions of
the Companies Act, 2013 (“the Act”) (to the extent notified) and guidelines issued
by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed
under Section 133 of the Act 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. As the year-end figures are taken
from the source and rounded to the nearest digits, the figures reported for the
previous quarters might not always add up to the year-end figures reported in this
statement.

ii) Historical cost convention the financial statements have been prepared on a
historical cost basis, except for the following:

• Certain financial assets and liabilities that are measured at fair value;

• Defined benefit plans - plan assets measured at fair value;

b) Foreign currency transaction

i) Functional and presentation currency: Items included in the financial statements are
measured using the currency of the primary economic environment in which the
entity operates (‘the functional currency’). The financial statements are presented in
Indian National Rupee which is the Company’s functional and presentation
currency.

ii) Transactions and balances: Foreign currency transactions are translated into the
functional currency using the exchange rates at the dates of the transactions.
Exchange differences arising from foreign currency fluctuations are dealt with on
the date of payment/ receipt. Assets and Liabilities related to foreign currency
transactions remaining unsettled at the end of the period/ year are translated at the
period/ year end rate. The exchange difference is credited / charged to Profit & Loss
Account in case of revenue items and capital items. Forward exchange contracts
entered into, to hedge foreign currency risk of an existing asset/ liability. The
premium or discount arising at the inception of forward exchange contract is
amortized and recognized as an expense/ income over the life of the contract.
Exchange differences on such contracts, except the contracts which are long-term
foreign currency monetary items, are recognized in the statement of profit and loss
in the period in which the exchange rates change. Any profit or loss arising on
cancellation or renewal of such forward exchange contract is also recognized as
income or as expense for the period.

c) Government grants

Government grants are not recognised until there is reasonable assurance that the
Company will comply with the conditions attached to them and that the grants will
be received. Government grants relating to income are deferred and recognized in
the profit or loss over the period necessary to match them with the costs they are
intended to compensate and presented within other income. Government grants
relating to the purchase of property, plant and equipment are included in non-current
liabilities as deferred income and are credited to profit and loss on a straightline
basis over the expected lives of the related assets and presented within other income.
The benefit of a government loan at a below-market rate of interest is treated as a
government grant, measured as the difference between proceeds received and the
fair value of the loan based on prevailing market interest

d) Revenue Recognition

i) Revenue from Sales of Goods & Services

The Company recognizes revenue in accordance with Ind- AS 115. Revenue is
recognized when a customer obtains control of goods or services and thus has the
ability to direct the use and obtained the benefits of the goods or services. Any
advance received against supply of the goods and services is recognized under the
head current liabilities, sub head trade and other payable. Under Ind AS 115,
revenue is recognized at an amount that reflects the consideration to which an entity
expects to be entitled in exchange for transferring goods or services to a customer.

The new revenue standard will supersede all current revenue recognition
requirements under Ind AS.

ii) Interest income

Interest income from a financial asset is recognized when it is probable that the
economic benefits will flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate applicable, which is the rate
that exactly

e) Taxation

Income tax expenses comprise current tax expense and the net changes in the deferred
tax asset or inability during the year. Current & deferred taxes are recognized in the
statement of Profit & Loss, except when they relate to items that are recognized in
other comprehensive income or directly in equity, in which case, the current &
deferred tax are also recognized in other comprehensive income or directly in equity,
respectively.

i) Current income tax

Income tax expense is the aggregate amount of Current tax. Current tax is the amount
of income tax determined to be payable in respect of taxable income for an
accounting period or computed on the basis of the provisions of Section 115JB of
Income Tax Act, 1961 by way of minimum alternate tax at the prescribed percentage
on the adjusted book profits of a year, when Income Tax Liability under the normal
method of tax payable basis works out either a lower amount or nil amount compared
to the tax liability u/s 115JA.

ii) Deferred Tax

Deferred tax is recognised, using the liability method, on temporary differences
arising between the tax bases of assets and liabilities and their carrying values in the
financial statements. However, deferred tax are not recognised if it arises from
initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting nor taxable
profit or loss. Deferred tax assets are recognised only to the extent that it is probable
that future taxable profit will be available against which the temporary differences
can be utilized. However, if these are unabsorbed depreciation, carry forward losses
and items relating to capital losses, deferred tax assets are recognised when there is
reasonable certainty that there will be sufficient future taxable income available to
realize the assets. Deferred tax assets in respect of unutilized tax credits which
mainly relate to minimum alternate tax are recognised to the extent it is probable
that such unutilized tax credits will get realized. The unrecognized deferred tax
assets/carrying amount of deferred tax assets are reviewed at each reporting date for
recoverability and adjusted appropriately. Deferred tax is determined using tax
rates (and laws) that have been enacted or substantively enacted by the reporting
date and are expected to apply when the related deferred income tax asset is realized
or the deferred income tax liability is settled. Income tax assets and liabilities are
off-set against each other and the resultant net amount is presented in the balance
sheet, if and only when, (a) the Company currently has a right to set-off the current
income tax assets and liabilities, and (b) when it relate to income tax levied by the
same taxation authority and where there is an intention to settle the current income
tax balances on net basis.

f) Leases

The Leases of property, plant and equipment where the Company, as lessee, has
substantially all the risks and rewards of ownership are classified as finance leases.
Finance leases are capitalized at the lease’s inception at the fair value of the leased
property or, if lower, the present value of the minimum lease payments. The
corresponding rental obligations, net of finance charges, are included in borrowings
or other financial liabilities as appropriate.

Each lease payment is allocated between the liability and finance cost. The finance
cost is charged to the profit or loss over the lease period so as to produce a constant
periodic rate of interest on the remaining balance of the liability for each period.
Leases in which a significant portion of the risks and rewards of ownership are not
transferred to the Company as lessee are classified as operating leases. Payments

g) Impairment of assets

At the end of each reporting year, the company reviews the carrying amounts of
its tangible assets and intangible assets to determine whether there is any
indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss (if any).

Property plant and equipment are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not be
recoverable. Recoverable amount of assets to be held and used is the higher of fair
value less cost of disposal or value in use as envisaged in Ind-AS 36. If such assets
are considered to be impaired, the impairment to be recognized is measured by the
amount by which the carrying amount of the asset exceeds the recoverable value of
the asset. Impairment loss is recognized in the statement of profit and loss except
for properties previously revalued with revaluation taken to other comprehensive
income. For such properties impairment loss is recognized in other comprehensive
income up to the amount of any previous revaluation.

h) Inventories

The general practice adopted by the company for valuation of inventory is as
under:

i) Raw Materials *At lower of cost and net realizable value. ii) Stores and spares At
cost iii) Work-in-process/ semi-finished goods At material cost plus labour and
other appropriate portion of production and administrative overheads and
depreciation iv) Finished Goods/ Traded Goods At lower of cost and net realizable
value. v) Finished Goods at the end of trial run At net realizable value. vi) Scrap
material At net realizable value. vii) Tools and equipment’s At lower of cost and
disposable value. *Material and other supplies held for use in the production of the
inventories are not written down below cost if the finished goods in which they will
be incorporated are expected to be sold at or above cost. Costs of inventories are
determined on a weighted average basis. Net realizable value represents the
estimated selling price for inventories less all estimated costs of completion and
costs necessary to make the sale.

i) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash
equivalents includes cash on hand, deposits held at call with financial institutions,
other short- term, highly liquid investments with original maturities of three months
or less that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value.

j) Trade receivables

Trade receivables are recognized initially at fair value and subsequently measured at
amortized cost using effective interest method, less provision for impairment.

k) Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior
to the end of financial year which are unpaid. The amounts are unsecured are presented
as current liabilities unless payment is not due within 12 months after the reporting
period. They are recognized initially at their fair value and subsequently measured at
amortized cost using the effective interest method.

l) Borrowings

Borrowings are initially recognized at fair value, net of transaction cost incurred.
Borrowings are subsequently measured at amortized cost. Any difference between the
proceeds (net of transaction costs) and the redemption amount is recognized in profit
or loss over the period of the borrowings using the effective interest method. Fees Paid
on the establishment of loan facilities are recognized as transaction costs of the loan to
the extent that it is probable that some or all of the facility will be drawn down. In this
case, the fee is deferred until the draw down occurs. To the extent there is no evidence
that it is probable that some or all the facility will be drawn down, there is capitalized
as a prepayment for liquidity services and amortized over the period of the facility to
which it relates. Borrowings are removed from the balance sheet when the obligation
specified in the contract is discharged, canceled or expired. The difference between the
carrying amount of a financial liability that has been extinguished or transferred to
another party and the consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognized in profit or loss. Where the terms of a financial
liability are renegotiated and the entity issues equity instruments to a creditor to
extinguish all or part of the liability (debt for equity swap), a gain or loss is recognized
in profit or loss, which is measured as the difference between the carrying amount of
the financial liability and the fair value of the equity instrument issued.

m) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset as defined in Ind-AS 23 are capitalized
during the period of time that is required to complete and prepare the asset for its
intended use or sale. Qualifying assets are assets that necessarily take a substantial
period of time to get ready for their intended use or sale. Investment income earned on
the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing cost eligible for capitalization. Any
related foreign currency fluctuations on account of qualifying asset under construction
is capitalized and added to the cost of asset concerned. Other borrowing costs are
expensed as incurred.

n) Investments and other financial assets

i) Classification

The Company classifies its financial assets in the following measurement categories:

• Those to be measured subsequently at fair value (either through other comprehensive
income, or through profit or loss), and

• Those measured at amortized cost.

The classification depends on the entity’s business model for managing the financial
assets and the contractual terms of the cash flows. For assets measured at fair value,
gains and losses will either be recorded in Statement of profit or loss or other
comprehensive income. For investments in debt instruments, this will depend on the
business model in which the investment is held. For investments in equity instruments,
this will depend on whether the Company has made an irrevocable election at the time
of initial recognition to account for equity investment at fair value through other
comprehensive income

ii) Measurement

At initial recognition, the company measures a financial asset at its fair value plus, in
the case of a financial asset not at fair value through profit or loss, transaction costs that
are directly attributable to the acquisition of the financial asset. Transaction costs of
financial assets carried at fair value through profit or loss are expenses in profit or loss.

Debt instruments:

Subsequent measurement of debt instruments depends on the Company’s business
model for managing the asset and the cash flow characteristics of the asset. There are
three measurement categories into which the Company classifies its debt instruments.

Amortized cost:

Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortized cost. A
gain or loss on a debt investment that is subsequently measured at amortized cost and is
not part of a hedging relationship is recognized in profit or loss when the asset is
derecognized or impaired. Interest income from these financial assets is included in
finance income using the effective interest rate method.

Fair value through other comprehensive income (FVOCI):

Assets that are held for collection of contractual cash flows and for selling the financial
assets, where the assets’ cash flows represent solely payments of principal and interest,
are measured at fair value through other comprehensive income (FVOCI). Movements
in the carrying amount are taken through OCI, except for the recognition of impairment
gains or losses, Interest revenue and foreign exchange gains and losses which are
recognized in profit and loss. When the financial asset is derecognized, the cumulative
gain or loss previously recognized in OCI is reclassified from equity to profit or loss and
recognized in other gains/(losses). Interest income from these financial assets is included
in other income using the effective interest rate method.

Fair value through profit or loss:

Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair
value through profit or loss. A gain or loss on debt investment that is subsequently
measured at fair value through profit or loss is recognized in profit or loss and presented
net in the statement of profit and loss in the period in which it arises. Interest income
from these financial assets is included in other income.

Equity instruments:

The Company subsequently measures all equity investments at fair value. Where the
company’s management has elected to present fair value gains and losses on equity
investments in other comprehensive income, there is no subsequent reclassification of
fair value gains and losses to profit or loss. Dividends from such investments are
recognized in profit or loss as other income when the Company’s right to receive
payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are
recognized in the other income. Impairment losses (and reversal of impairment losses)
on equity investments measured at FVOCI are not reported separately from other
changes in fair value.

iii) Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated
with its assets carried at amortized cost and FVOCI debt instruments. The impairment
methodology applied depends on whether there has been a significant increase in credit
risk. Ref Note 30 details how the Company determines whether there has been a
significant increase in credit risk. For trade receivables only, the Company applies the

simplified approach permitted by Ind AS 109 Financial Instruments, which requires
expected lifetime losses to be recognized from initial recognition of the receivables.

iv) Derecognition of financial assets

Financial asset is derecognized only when:

• The Company has transferred the rights to receive cash flow from the financial asset

• retains the contractual rights to receive the cash flows of the financial assets, but
assumes a contractual obligation to pay cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has
transferred substantially all risks and rewards of ownership of the financial asset. In
such cases, the financial asset is derecognized. Where the entity has not transferred
substantially all risks and rewards of ownership of the financial asset is not
derecognized.

Where the entity has neither transferred a financial asset nor retains substantially all
risks and rewards of ownership of the financial asset, the financial asset is derecognized
if the Company has not retained control of the financial asset. Where the Company
retains control of the financial asset, the asset is continued to be recognized to the
extent of continuing involvement in the financial asset.

o) Employee benefits

i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to
be settled wholly within 12 months after the end of the period in which the employees
render the related service are recognized in respect of employees’ services up to the end
of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as current employee benefit
obligations in the balance sheet.

ii) Other long-term employee benefit obligations

The liabilities for earned leave are not expected to be settled wholly within 12 months
after the end of the period in which the employees render the related service. They are
therefore measured at the present value of expected future payments to be made in
respect of services provided by employees up to the end of the reporting period using
the projected unit credit method. The benefits are discounted using the market yields at
the end of the reporting period that have terms approximating to the terms of the related
obligations. Remeasurements as a result of the experience adjustments and changes in
actuarial assumptions are recognized in profit or loss. The obligations are presented as
current liabilities in the balance sheet if the entity does not have an unconditional right

to defer settlement for at least twelve months after the reporting period, regardless of
when the actual settlement is expected to occur.

iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) Defined benefit plans such as gratuity;

Gratuity & Leave Encashment obligations

The liability or assets recognized in the balance sheet in respect of gratuity & Leave
Encashment plans is the present value of the defined benefit obligation at the end of the
reporting period less the fair value of plan assets. The defined benefit obligation is
calculated annually by actuaries using the proj ected unit credit method.The present value
of the defined benefit obligation is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on government
bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the
defined benefit obligation and the fair value of plan assets. This cost is included in
employee benefit expenses in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in
actuarial assumptions are recognized in the period in which they occur, directly in other
comprehensive income. They are included in retained earnings in the statement of
changes in equity and in the balance sheet. Changes in the present value of the defined
benefit obligation resulting from plan amendments or curtailment are recognized
immediately in profit or loss.

p) Dividends

Provision is made for the amount of any dividend declared, being appropriately
authorized and no longer at the discretion of the entity, on or before the end of the
reporting period but not distributed at the end of the reporting period.

q) ) Earnings per share

i) Basic earnings per share: Basic earnings per share are calculated by dividing: •

The profit attributable to owners of the company. • By the weighted average number of
equity shares outstanding during the financial year.

ii. Diluted earnings per share: diluted earnings per share adjust the figures used in
the determination of basic earnings per share to take into account: The after income
tax effect of interest and other financing costs associated with dilutive potential
equity shares, and *The weighted average number of additional equity shares that
would have been outstanding assuming the conversion of all dilutive potential equity
shares.

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Mar 31, 2015

A Basis of Accounting:

The Financial Statements have been prepared under the historical cost convention, on an accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards Specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

B Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period.

Difference between actual results and estimates are recognized in the periods in which the results are known/ materialize.

C Revenue Recognition

i) Sales is recognized as and when the significant risk & rewards in respect of goods is transferred to the buyer. ii) Interest income is recognized on time proportion basis.

iii) Dividend Income is recognized when the right to receive in established.

iv) Commission Income is recognized on accrual basis as per the terms of the agreements.

D Investments:

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investment and are carried at cost less any provision for diminution other than temporary in value. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.

E Inventories:

Inventories are valued as follows: i) Finished Goods are valued at lower of cost or net realisable value.

F Foreign Currency Transactions :

i) The transactions in foreign currencies are stated at the rate of exchange prevailing on the date of transactions.

ii) The difference on account of fluctuation in the rate of exchange prevailing on the date of transaction and the date of realization is charged to the Profit and Loss Account.

iii) Differences on translations of Current Assets and Current Liabilities remaining unsettled at the year-end are recognized in the Profit and Loss Account. iv) The premium in respect of forward exchange contract is amortized over the life of the contract. The net gain or loss on account of any exchange difference, cancellation or renewal of such forward exchange contracts is recognized in the Profit & Loss Account.

G Accounting for Taxes of Income:- Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income- tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions

H Deferred Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date. Deferred tax Assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date.

I Provisions and Contingent Liabilities:

i) Provisions are recognized in terms of Accounting Standard 29- "Provisions, Contingent Liabilities and Contingent Assets when there is a present legal or statutory obligation as a result of past events where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

ii) Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or where reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

iii) Contingent Liabilities are disclosed by way of notes.

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Mar 31, 2014

A Basis of Accounting:

The Financial Statements have been prepared under the historical cost convention, on an accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards prescribed by the Companies (Accounting Standard) Rules 2006 to the extent applicable and in accordance with the relevant provisions of the Companies Act, 1956 read with General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

B Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period.

Difference between actual results and estimates are recognized in the periods in which the results are known/ materialize.

C Revenue Recognition

i) Sales is recognized as and when the significant risk & rewards in respect of goods is transferred to the buyer.

ii) Interest income is recognized on time proportion basis.

iii) Dividend Income is recognised when the right to receive in established.

iv) Commission Income is recognised on accrual basis as per the terms of the agreements.

D Investments:

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investment and are carried at cost less any provision for diminution other than temporary in value. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.

E Foreign Currency Transactions :

i) The transactions in foreign currencies are stated at the rate of exchange prevailing on the date of transactions.

ii) The difference on account of fluctuation in the rate of exchange prevailing on the date of transaction and the date of realization is charged to the Profit and Loss Account.

iii) Differences on translations of Current Assets and Current Liabilities remaining unsettled at the year-end are recognized in the Profit and Loss Account.

iv) The premium in respect of forward exchange contract is amortised over the life of the contract. The net gain or loss on account of any exchange difference, cancellation or renewal of such forward exchange contracts is recognised in the Profit & Loss Account.

F Accounting for Taxes of Income:- Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income- tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions

Deferred Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date. Deferred tax Assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date.

G Provisions and Contingent Liabilities:

i) Provisions are recognized in terms of Accounting Standard 29- "Provisions, Contingent Liabilities and Contingent Assets notified by the Companies (Accounting Standard) Rules 2006, when there is a present legal or statutory obligation as a result of past events where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

ii) Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or where reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

iii) Contingent Liabilities are disclosed by way of notes.

H Inventories:

i) Stock in Trade is valued at lower of cost or net realisable value.

b. Terms & Conditions

The Company has only one class of equity shares having par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2013

A Basis of Accounting:

The Financial Statements have been prepared under the historical cost convention, on an accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards prescribed by the Companies (Accounting Standard) Rules 2006 to the extent applicable and in accordance with the relevant provisions of the Companies Act, 1956.

B Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual and estimated results are recognized in the period in which the results are known/ materialized.

C Revenue Recognition

i) Sales is recognized as and when the significant risk & rewards in respect of goods is transferred to the buyer.

ii) Interest income is recognized on time proportion basis.

iii) Dividend Income is recognized when the right to receive in established.

D Investments:

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investment and are carried at cost less any provision for permanent diminution in value. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.

E Accounting for Taxes of Income:-

Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income- tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions

Deferred Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date. Deferred tax Assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date.

F Provisions and Contingent Liabilities:

i) Provisions are recognized in terms of Accounting Standard 29- "Provisions, Contingent Liabilities and Contingent Assets issued by The Institute of Chartered Accountants of India (ICAI), when there is a present legal or statutory obligation as a result of past events where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

ii) Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or where reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

iii) Contingent Liabilities are disclosed by way of notes.

Increase in Authorized Share Capital

During the year, the Authorized Share Capital has been increased to Rs. 100,000,000 divided into 1,00,00,000 equity share of Rs. 10/ - each from Rs. 4,000,000 divided into 4,00,000 equity shares of Rs.10/- each vide resolution passed at Annual General Meeting held on 29th September, 2012.

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Mar 31, 2010

Not available

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Mar 31, 2009

A The financial statements are prepared on accrual basis of accounting with the generally accepted accounting principles in India, provisions of the Companies Act, 1956 (the Act) and comply in material aspects with the accounting standards notified under section 211(3C) of the Act, read with Companies (Accountig Standards) Rules, 2006.

b. Long term investments are stated at cost after deducting provision made for permanent diminution in the value,if any. Current investment are stated at lower of cost and fair market value.

c Stock of quoted shares is valued at lower of cost & market price and in the case of unquoted shares, the same is valued at lower of cost & break up value.

d Purchase & Sale of shares & other securities are accounted for on the basis of Bill dates received from the brokers.

e Income-tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of deferred tax assets are reviewed to reassure realisation.

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Mar 31, 2007

A. Accounts have been prepared on historical cost and accrual basis

b. Long term investment are stated at cost after deducting provision made for permanent diminution in the value,if any. Current investment are stated at lower of cost and fair market value.

c. Stock of quoted shares is valued at lower of cost & market price and in the case of unquoted shares, the same is valued at lower of cost & break up value.

d. Purchase & Sale of shares & other securities are accounted for on the basis of Bill dates received from the brokers.

e. Income-tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, on if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of deferred tax assets are reviewed to reassure realisation.