Accounting Policies of IMEC Services Ltd. Company

Mar 31, 2025

A. General Information

IMEC Services Limited was incorporated as a Limited Company on 18^thJune, 1987. In the year 2011, Company trans¬
ferred its Plant along with Steel Division situated at Village - Sejwaya, Ghatabillod, and Dist. Dhar (M.P.) to its sub¬
sidiary RSAL Steel Private Limited. Now, the main business activity of the company is Management and Consultancy
Services inter alia - information technology, engineering and technical.

The shares of the Company are listed at the BSE Ltd., Mumbai.

The financial statements for the year ended 31st March, 2025were approved by the Board of Directors and author¬
ised for issue on May 30, 2025

B. Significant Accounting Policies of Financial Statements

The significant accounting policies applied by the Company in the preparation of its financial statements are listed
below. Such accounting policies have been applied consistently to all the periods presented in these financial
statements, unless otherwise indicated.

I. Statement of compliance

The financial statement have been prepared in accordance with Indian Accounting standards ("Ind AS") notified,
under Section 133 of the Companies Act, 2013 (''Act'') read with the Companies (Indian Accounting Standards) Rules,
2015 and Companies (Indian Accounting Standard) Amendment Rules 2016 and the relevant provisions of the Act.

II. Basis of Preparation of Financial Statements

These financial statements have been prepared in accordance with Indian Accounting Standard (Ind AS), under the
historical cost convention on the accrual basis except for certain financial instruments which are measured at fair
value at the end of each reporting period, as explained in the accounting policies mentioned below.

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

Functional and Presentation of Currency

These financial statements are presented in Indian rupees, which is the Company''s functional currency. All
amounts have been rounded to the nearest Rupees in Lacs unless otherwise indicated.

III. Use of Estimates, Judgments and Assumptions

In the preparation of the financial statements, the Company makes judgments, estimates and assumptions about
the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and asso¬
ciated assumptions are based on historical experience and other factors that are considered to be relevant. Actual
results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are iec-
ogriaad in the period in which the estimate is revised and future periods affected.

Key source of estimation of uncertainty at the date of the financial statements, which may cause material adjust¬
ment to the carrying amounts of assets and liabilities within the next financial year, is in respect of impairment,
useful lives of property and plant and equipment, valuation of deferred tax assets, provisions and contingent liabili¬
ties, fair value measurements of financial instruments and retirement benefit obligations as discussed below.

Impairment

The Company estimates the value in use of the cash generating unit (CGU) based on future cash flows after consider¬
ing current economic conditions and trends, estimated future operating results and growth rates and anticipated fu¬
ture economic and regulatory conditions. The estimated cash flows are developed using internal forecasts. The cash
flows are discounted using a suitable discount rate in order to calculate the present value.

Useful lives of property, plant and equipment and intangible assets

The Company reviews the useful life of property, plant and equipment and intangible assets at the end of each re¬
porting period. This reassessment may result in change in depreciation and amortisation expense in future periods.

Valuation of deferred tax assets

The Company reviews the carrying amount of deferred tax assets at the end of each reporting period.

Provisions and contingent liabilities

A provision is recognized when the Company has a present obligation as result of a past event and it is probable that
the outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabili¬
ties are not recognized in the financial statements.

Fair value measurements of financial instruments

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using valuation techniques including Discount¬
ed Cash Flow Model. The inputs to these models are taken from observable markets where possible, but where this is
not feasible, a degree of judgement is required in establishing fair value. Judgements include considerations of inputs
such as liquidity risks, credit risks and volatility. Changes in assumptions about these factors could affect the reported
fair value of financial instruments.

Retirement benefit obligations

The Company''s retirement benefit obligations are subject to number of judgements including discount rates, infla¬
tion and salary growth. Significant judgements are required when setting these criteria and a change in these as¬
sumptions would have a significant impact on the amount recorded in the Company''s balance sheet and the state¬
ment of profit and loss. The Company sets these judgements based on previous experience and third party actuarial
advice.

IV. Property, plant and equipment

An item of property, plant and equipment is recognized as an asset if it is probable that future economic benefits as¬
sociated with the item will flow to the Company and its cost can be measured reliably. This recognition principle is
applied to costs incurred initially to acquire an item of property, plant and equipment and also to costs incurred sub¬
sequently to add to, replace part of, or service it. All other repair and maintenance costs, including regular servicing,
are recognized in the statement of profit and loss as incurred. When a replacement occurs, the carrying value of the
replaced part is de-recognized. Where an item of property, plant and equipment comprises major components hav¬
ing different useful lives, these components are accounted for as separate items.

Property, plant and equipment is stated at cost or deemed cost applied on transition to Ind AS, less accumulated de¬
preciation and impairment. Cost includes all direct costs and expenditures incurred to bring the asset to its working
condition and location for its intended use. Trial run expenses (net of revenue) are capitalised. Borrowing costs in¬
curred during the period of construction is capitalised as part of cost of qualifying asset.

The gain or loss arising on disposal of an item of property, plant and equipment is determined as the difference be¬
tween sale proceeds and carrying value of such item, and is recognized in the statement of profit and loss.

Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the ex¬
penditure will flow to the company.

Depreciation of Fixed Assets

Depreciation on property, plant and equipment is provided on Written down value method (WDV) as per the useful
life of the assets in the manner as specified in Schedule II to the Companies Act, 2013. The estimated useful life of as¬
sets and estimated residual value is taken as prescribed under Schedule II to the Companies Act, 2013.

Depreciation on additions during the year is provided on pro rata basis with reference to date of addi-
tion/installation. Depreciation on assets disposed/discarded is charged up to the date on which such asset is sold.

V. Investments in subsidiaries

Investments in subsidiaries are carried at cost/deemed cost applied on transition to Ind AS, less accumulated im¬
pairment losses, if any. Where an indication of impairment exists, the carrying amount of investment is assessed and
an impairment provision is recognized, if required immediately to its recoverable amount. On disposal of such in¬
vestments, difference between the net disposal proceeds and carrying amount is recognized in the statement of prof¬
it and loss.

VI. Revenue

Revenue is measured at the fair value of the consideration received or receivable. Revenue is recognized to the extent
that it is probable that the economic benefit will flow to the company and the revenue can be measured reliably and
there is no continuing effective control/managerial involvement in respect of the revenue activity as described be¬
low.

a) Sale of Services

Revenue from sale of services is recognized when agreed contractual task has been completed or services are ren¬
dered.

b) Sale of goods

Revenue from sale of products is recognized when control of the products has transferred, being when the products
are delivered to the customer. Delivery occurs when the products have been shipped or delivered to the specific lo¬
cation as the case may be, the risks of loss has been transferred, and either the customer has accepted the products
in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have
been satisfied.

Revenue from sales is measured net of returns, trade discounts and volume rebates, GST wherever applicable. Fur¬
ther, the revenue amount is adjusted for the time value of money if that contract contains a significant financing
component.

The timing of the transfer of control varies depending on the individual terms of the sales agreement.

c) Interest and Dividend

Interest income is recognized on accrual basis using the effective interest method. Dividend income is recognized in
profit or loss on the date on which the company''s right to receive payment is established.

VII. Employee benefits

a) Defined benefit plans

The liability for gratuity a defined benefit plan is determined annually by a qualified actuary using the projected unit
credit method.

The Company pays gratuity to the employees who have completed 5 Years of service with company at the time when
the employee leaves the company as per the Payment of Gratuity Act, 1972.

Re measurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan as¬
sets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in
OCI. Net interest expense (income) on the net defined liability (assets) is computed by applying the discount rate,
used to measure the net defined liability (asset), to the net defined liability (asset) at the start of the financial year af¬
ter taking into account any changes as a result of contribution and benefit payments during the year. Net interest
expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to

past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes
gains and losses on the settlement of a defined benefit plan when the settlement occurs.

b) Defined contribution plans

The Company''s payments to the defined contribution plans are recognized as expenses during the period in which
the employees perform the services that payment covers. Defined contribution plan comprise of contribution to the
employees'' provident fund with government, Employees'' State Insurance and Pension Scheme.

c) Short term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount
expected to be paid if the company has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.

d) Other Employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which
the employee renders the related services are recognized as a liability at the present value of obligation as at the Bal¬
ance sheet date determined based on an actuarial valuation.

VIM. Income Tax

Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that it
relates to a business combination, or items recognized directly in equity or in OCI.

a) Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any ad¬
justment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or sub¬
stantively enacted at the reporting date. Current tax also includes any tax arising from dividends.

Current tax assets and liabilities are offset only if, the Company:

a) has a legally enforceable right to set off the recognized amounts; and

b) Intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

b) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the fi¬
nancial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities
are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all
deductible temporary differences to the extent that it is probable that taxable profits will be available against which
those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if
the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects nei¬
ther the taxable profit nor the accounting profit.

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

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

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is
likely to give future economic benefits in the form of availability of set off against future income tax liability. Accord¬
ingly, MAT is recognized as deferred tax asset in the balance sheet when the asset can be measured reliably, and it is
probable that the future economic benefit associated with the asset will be realised.

Deferred tax assets and liabilities are offset only if:

a) The entity has a legally enforceable right to set off current tax assets against current tax

Liabilities;

b) The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation
authority on the same taxable entity.

IX. Foreign currency transactions and translations

The financial statements of the Company are presented in Indian Rupees, which is the functional currency of the
Company and the presentation currency for the financial statements.

Transactions in foreign currencies are translated into the respective functional currencies of the company at the ex¬
change rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the
exchange rate at the reporting date. Difference arising on settlement of monetary items is generally recognized in
statement of profit and loss.

Non-monetary items that are measured based on historical cost in a foreign currency are not translated. Non- mone¬
tary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional cur¬
rency at the exchange rate when the fair value was determined. Exchange difference arising out of these transactions
is generally recognized in statement of profit and loss.

X. Borrowing cost

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

Qualifying asset are the assets that necessarily takes a substantial period of time to get ready for its intended use.
Other borrowing costs are recognized as an expense in the period in which they are incurred.

Investment income earned on temporary investment of specific borrowings pending their expenditure on qualifying
assets is recognized in the statement of profit and loss.

XI. Cash and Cash Equivalent

In cash flow statement, Cash and cash equivalent includes the cash and Cheques in hand, bank balances, demand de¬
posits with bank and other short term, highly liquid investments with original maturity 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.

Bank overdraft is shown within borrowings in current liabilities in the balance sheet and forms part of financing activi¬
ties in the cash flow statement. Book overdraft is shown within other financial liabilities in the balance sheet and
forms part of operating activities in the cash flow statement.

XII. Cash Flow Statement

Cash flows are reported using indirect method, whereby profit/ (loss) before tax is adjusted for the effect of transac¬
tions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments and items of in¬
come or expenses associated with investing or financing cash flow. The cash flow from operating, investing and fi¬
nancing activities of the company is segregated based on the available information.

XIII. Earnings per Share

a) Basic earnings per shares is arrived at based on net profit / (loss) after tax available to equity shareholders divided
by Weighted average number of equity shares, adjusted for bonus elements in equity shares issued during the year
(if any) and excluding treasury shares.

b) Diluted earnings per shares is calculated by dividing Profit attributable to equity holders after tax divided by
Weighted average number of shares considered for basic earning per shares including potential dilutive equity
shares.

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Mar 31, 2024

fi Significant ACCOunilrVg POfrCiesel Firtaodal 5t jk''mtnH

The ^ignrfic-a nt account mg policies applied by (he Company in the pne^rtUni af hi financial statements arc
listed below. Such accounting policies have been applied consistently to all the periods presented In These

''in.mu.11 tltilLrncnli, unlltis othrrvi ¦-¦ indio.irt’d.

(i) StalemnU of (nrapllaim

The financial statement h*yc brrn prcj)Jr_;.nd AS"1
rili[¦ 111J. under Section 111 of [lie Companies Act. JU1J 1''Act''l read with the Companies (Indian Accounting
Standardsf Rules, 301E. and Campanil (Indian Account np Standard}. Amendment Rules 2Q1G and the relevant
provisions or the Act.

[li) Basis or Preparation ol financial Statements

These financial statentMns have been prepared in accordance with Indian Accounting Standard find AS), under
the historical cost cojiyenlpon on the accrual basis cccept for certain financial instruments which are measured
at fair value at fh? end of each re porting period, *s explained in ihe .ircouniine oolites mentioned below.

All »sfti .md I? .iLi11icir^j-. h.iv^ b^pn citified at current or non-curreni as per The Company''s normal operatmg
cycle rind other criteria set out In Schedule III to the Companies Act, 1Qi3. The Company has ascertained its
operating cycle as l£ months for the purpose or current and ^or: current classification of assets and h*bi!n in
The operatiogcycle is thetune between the acquisition oF assolsfor processing and I heir realization in cash
andoash equivalents The Company has identified twelve months as its ope rating cycle

functional and Presentation of Currency

These financial statements are presented In Indian rupees, wn.cn is the Company''s functional currency. All
amounts have been rounded to the nearest Rupees m Lacs unless- otherwise indicated

(ili) U=e of Estimates, Judgments and Assumptions

in the preparation of 1 he financial luttmifltl, the Company nukes judgements, estimates and assumptions
jtbpui the carrying value of assets and liabilities that are net readily apparent from other sources. The
estimates and associated assumptions are based on h.vtorifal experience and other Tactcn that ?tb''
considered to be relevant. At ru.it results may d=ffer Irom these estimates.

Estimates and underkyin^ assumptions are rcvirwed on .sn ongoing basis. Revision* tp accounting estimates
n*e rocognired i™ |hr period in which the estimate is revised and Future periods affected.

Key source of estimation of uncertainty at the date df the rmantral statements, which mjy cause material
adjustment to (he carrying amounts of assets and liabilrnec within the ¦¦¦ i_^-:impjirment_r useful lives of property and plant and equipment, valuation of deferred tas assets, provisions
and contingent hat; lilies, fair value measurements of financial instruments and retirement benefit
obligations as discussed below

Impjirmrrtt

Thu Oump-d.ny e-STiinai-ei [hl¹- ¦.mIlll^l iri use ?* The rash genyr.il mg unil |CGU| tiiu^Ld un Ml ure c.ish flows .tFEcr
considering current economic conditions in d trends, estimated luture operating res uhs and growth rates and
amiri pateef future econpuirc: and regulatory conditions The estimated cash flows ace developed using
iihtrrnjl fOFHllH The tlfh lluwi Jrt : list punted u''.mg .1 vuil.iUle discount rale in -ur-der lu calculate 11 it:
present value

U^rful livei uP property. pl.inl And Hiquip-m rnl and i-nllngiblr j-viutt

The Compiny reviCwl thy usyfur Idf pF pooped y. pl^nl jnd cquipmynl and iSi*E'' *t Tht end of

riChrypOrUng ptnnd This ryaswiimynl m*y resutl in ditfigy tn di''prfrt''J’iOn ^inrf .tmiJiTisaiion expense lh
future pei dds

Valuation cl deferred lax assets

The Company rtutciw ihe tarrying amount *t deterred tawissAft The end of each reporting period,
provision; and contingent liabilities

a prevision ib recogmied when the Company has ? present obligation as mult cl a pass event and it n
probable Thu thy ouiFlow g| resources will be required to settle the oblijjalion, in respect d! which a reliable
estimate can be made. Thysr are rewe^ed at each balance sheet dale and adjusted to retied the current
best estimates. Contingent liabilities are net recognued tn the financial iTiEumimtv

fair value measurements of financial instrumems

When the lair value of financial asset; and financial liabiliHy, etcurdrd in thy balance sheet cannot be
measured based on quoted prices In active markets, then fair value is iffhwvwl using valuation techniques
¦ncJudmg Discounted Cash Flow Model. The Inputs to these modeJs are taken from observable markers where
possible, tut where- this is not feasible, a degree or i-udeement n required in establishing fair value
Judgements include considerations of input; mh ns liquidity risks, credit ri-sVs and volatility Changes m
assumptions about these lectors nmUaHed the reported Talr value of financial Instruments,

Retirement benefit obligations

Thy Company^ retirement bene Fit obliE^lions are subject to number of judgements including discount rales,
inflation and salary growth. Significant judgements are required when setting these criteria and a change In
these assumptions would have- .1 significant impact on thy .1 mount ry: cried in |hy Company''s balance sheet
and the statement of profit and loss. The Company sets these judgements based on previous experience and

third party actuarial adViey-

I in] proper! Vj plant and equipment

*n cem of property, plant and equipment ij rycoE^r|-rcd as an- esse! if it It probable that future economic
benefits associated wnh the Hem will flow to the Company and its cost can be measured reliably. This
recognition principle it applied to costs incurred mir allv to acquire anitm o1 property, plant and equipment
nnd also to costs incurred subsequently to add ro. replace pan of. or service it Ml pihyr repair and
maintenance tons. Including regular servicing, are recognised in th? statement of profit and loss as incurred.
When a replacement occurs, [he cwrying value or (he replaced part is de-recogniied Where an Hem of
property, plant, and equipment comprises m i|pr corr-poni-n:- haying different uiyfiil lives, these components
are accounted for as separate items.

Property, plant and equipment is stated at cost Or deenu-d co;( eppbed on IrthtMon to Ind A5, less
accumulated depreciation and imparrment. Cost ncludcs all direct costs and expenditures incurred Cb bring
thy asset to its working condition and location for Its intended use. "rial tun tup-try,ei jnyt nf f*vtnut] Arc
capitalised, Sorrowing costs incurred during the pence oF construction is capnalised as pan of cost ol
qualifying asjel.

The gain or loss arising on disposal of an item of property, plant .1 r.d wqui-pmeot is determinyd as Iht
difference between sale proceeds end carrying value oF such item, and If recognized in the statement of profit
nnd Iw

Subsequent e Kpi- nrfil ur e

iuoteq-j-on'': expenditure is cap r^i-ted only i^H n 4 probable that dv hdurti «oiwmi( benefits hwcimd with
the onpc-ndil ur e wi 111 li ivy to I h i¹ r.fi m p any

Depreciation pf Fined Assets

?uprecidliull on property, piuI -1 and equipment is provided cm Written down yahi? method |WDV) J1 per lh^
useful litr cl 1 hr¹ iiieb in the manner ,r, ipecitird in hlwjulf II tn Ihp Companies Act, 1013 the estimated
useful life of assets and iHimind residual value is taken as prescribed under Schedule II icnhe Companies
Am, 2013.

Depreciation pn add t oni during the year is presided an pro raid basts with reference to date ui
addilin-n/inslall.ilinn. Chrpresiathpn cp assets chspHiscd/disrarded is chirped up to the date on which such
aisei is sold.

(u| Investments tn subsidiaries

Investments In subsidiaries are carried at cost/deemed cost applied on transition Id Irvd AS, less accumulated
impairment IWscv if any Where an mdwatmn ?( impairment CJii-sTS, (hr carrying amount pT investment t
assessed and an impairment provision is recognized, if required immediately to its receiver able amount. On
disposal of sudt investments,, difference between the net disposal proceeds and carrying amount s
recOgniiedin the statement O''l prijlit and lev-

| in) Revenue

Revenue li measured nr the lair valur nr [hr < nm deration rrcniii''d ur receivable. Revenue is recognized to
theejrtenr that it Is probaHe that 1he economic denefn ivttl flow to the company and the revenue can be
measured rehablv and there is no cpnimuin^ effective conTnol/minaRenql involvement ip respect of (be
rrvehm iCtruily.il drscrib.d bHdw

a) Sale of Services

Ri''VL-n;:r hern sale ui services are rec canned when agreed contractual task, has been compleied or
services are rendered

hi Sale of floods

Revenue from sale of products is recogniied when control of the products has transferred, being when
Che products are delivered to me tuttomer Delivery occurs when the products have been shipped or
delivered ia ihu specific locatFon js the case may be., the nsKs of loss has been transferred, end dither
the customer has accepted the products In accordance with the sales contract, or the Compjnv has
objective evidence thaf all crileru for aCCtplamt have brrh i JTisfied.

Revenue fwn sales is measured net of returns, [fade discounts and volume rebates, G5T wherever
applicable Further, me revenue amounl is adiusled for the time value of mooey if that contract
contains a significant financing component

The timing pf rhr transfer of somrol v.mes depending on the mdivid-jaHerms of the sales agreement
<) Interest and Dividend

IntereH income is recognized on accrual basis using the elective interest method. Dividend income is
recognized in pr.itn lh loss on the dare pn wn.ch the company''s nghi ro receive payment is estabfished

fi] Employee benefits

a]Dcfim^Ld benelii plans

The liability for gratu.ty a defined beziefii plan is determined annually by a qualified actuary using the
proieCteduniT tredht method.

The tompany bays greiyiiy to [he en-ployees who have completed 5 ifears Of service with company al
the limewhen [hp employee leaves the company as per the Payment erf Gratuity Acf, 1972.

ttemeasuzement of the nei defined beneht liability, which comprise actuarial gains and losses, me
return uri |j|.,_n ivetf (neludieg interest) and tup efiect of the asset ceding hf any, -picrlijri-r.|-. Interest],
ere rccognii-ecl immediately ''ⁿ OCi Mel intrirsi expert in | income | on the rtft defined liability (assetsh ^rs
computed by applying [he discount face, used to men Hire (he net dehned liability |aise(J. to The nei
deFincd liability jasietj at th* tbd u* [hr (injFKi.il ytjd iHn taking Into account rchanges « n mull
of oontributLon end benefit payments during the yi^L>tr rj-¦’ ntffHl uKpertse and other expenses related
La defined benefit plans are recognised tn profit or loss

When itie benefits al a plan are changed at -when a pi .in ij curtailed. the mull mg. change in benefit ihat
rrfnlesto past service m [he f.i ¦> ur loss on £urc*il(ilflnt S recognised immrfli.ytrly in prpILt nr Idns The
Company recognises gams and losses on The seltle-mem pi a defined hnnefit plan when the settlement
occurs.

bt Denned coomb ulion plans

The Company''s payments to the defined conTrtbuiion plans are r«ogniied as expenses doting the
pptiod in- which (he employees perform ihe iiryitH mat payment cavers. Defined contribution plan
comprise oF contribution to (he empFoyees'' provident l_und w-th government, Emprpyees'' State
Insurance and Pension Scheme.

d Short term employee benefits

Shon-tetm employee benefits *r*exptmed at (he related service rs provided. A liability is recognized
for the amount ojpeered to be paid if the company has a present legal or constructive obligation To pay
this amount as a result of past service provided by ihreliably.

d] Other Employee benefits

Compensated absence* which .ire not expected to occur within twelve months Alter the end of (he
period in which the employee renders the related services are recognized as a i-ability at the present
value of obligation as at the Balance sheet date determined based on an actuarial valuation.

[ii> Incorn# Ta*

Income lac expense comprises current anc deferred lax. ft is recognized in profit or loss except to the
extent that it relates Id a business combination, or items recognized directly in equity or in OCT.

i| Current tix

Current tax comprises the expected th plyibltpf WmAl| cm ihe i.iK.ih:i- income ?r loss 1-pr ihe ye.n
and any adjustment to Ihe tax payable or receivable m respect of previous years. It is measured using twt
rttts enacted OV substantively enacted nt 1he reporting date Current tax also includes any tax an sing
from dividends.

Current tax assets and fiabililies are offset ontyiF, the Company
a| has a legally enforceable right rp set orr (he rycognijed amounis; and
h) Intends either 10 settle on 3 net basis, of to realise the asset and settle the liability
simultaneously.

t| deferred tax

Deferred tax is ncofntald pn temporary diFFerences between 1he tarrying amounts of assets and
liabilities rn the financial Hiiemcnts and the corresponding (ax bases used In (he XGinpuiation of taxable
profit, deferred (ax liabilities .up generally PKofniiftd for ah taxable temporary differences DeFprred lax
assets are generally recognized for nil deductible temporary deferences to ihe extent tfui it is probable
that taxable profits will be available -igainst which those deductible temporary differences can be
utilised- Such deFerzed tax assets and liabthUti are nni recognized il the temporary difference arises from
the in [i.iI recognition of assets and Liabilities In a transaction rh.ii jfjecls neither the taxable profit nor
the accounting profit.

iPifl carryrng amount 0-1 dett''i fed 1 j-v assers is Kvtewfd i! ihh¹ i ndl tF e-;n h reporting period and reduced
i-o ihe extent ih.u: n it no longer pmb.ii''!''¹ ih.it \uPfni?nt noablt proriis win be available io anow an or
pjrE ?! the nsscf tg bo rgcOVemO

DtltrreiJ E J* Jipbihrn^ ,imj frn«t'' arc measured at thelak rates That a*e expected to apply m the prrjud
in whii-h rhn Imhility ji scttrpnl gr 1 h.- asset reused, based Oil IJx r,n_L*i (jnd tin laws) thnl have been
enacted v Subitairtlvelf enacted by ttve end of the reporting prricHj.

deferred tax assets include Minimum Alic-rwarive Tax (MAT] paid ip accordance -j-it i ihe iak laws bn ilncfu.
which is tikely Id give future Hon^nbc benefits |n ihe lomi o'' avaHIjit:Muy nl set off against future income
UX liaibHity AfiCEmdingly, ma1 is recognized as deferred lar asset m The balance sheet when thr asset can
be measured reliably, and n h prpbabte [hai (he Puiure economic benePil associated with the asset will
be realised

Deleted 1*« jsjrtS jnd lur:.kin''s jrr ofFjrt only I

a] The entity has a ¦ g-ra-ly enlorceebie n^ht to set bflcurrent lay assets against current tax
liabilities,

h|Thc delernciJ r,ii assets and I he deFprrcd taa Uabhilies relate to income ta*es levied by the
lamfl J>:.bt''i.^|rl .luEhpntv on Ihe umr Taxable ctltily
(ill) Foreign Currency IrantJCIiUm jn-d irinibEiMi

The hnjncbal statement* of the Company are presented m Ind.jir. Rupees. which is The Punct-onat currency
nl the Companv and The pritseuMjiM currehcv Tor the riMrttU siatementi.

Trjnsactipns .n Foreign ¦rurnencici jre (rjnstulriJ m|p (he respective lundipnaJ currencies oP the company

at TheWCCtohgt Mu V 1 ir dotts of Ihc h .ir-vj-LE. an-i.

Monetary asset* and liabilities denominated in Foreign currencies are translated mto the Functional
currency atlhp erchange rate at IhF reporting date Dillerence arising on settlement oF monetary iiems are
generally recognized in stal^mcnt oF p-iulit a id 1uss

Non''monetary items that are measured based On historical cost m a foreign currency are not translated
Nnn- monetary assets and labilities Hue are measured at fair value in a foreign. currency are translated
into the functional currency at the exchange Fite when the Pair value was determined. Exchange diiferpnce
arising nut of these Ifansjctions .irr geAfrrallv recogmfed m watertight of prCifil and loss.

(jtf) Borrowing cost

Borrowing COStS directs atl rhbu r*Wc to the acquisition, cpnslroctppn or prpdutlion OF qualifying assets,
which arc siytn That neLH^t.imy r-ike a substantial period ui rime to i-loi ready Tor their intended use or
sale, are added ta Ihe cost ol those assets, until such time os the nssels is substantially ready for ih?
intended use or sale

Qualifying ^sset are ihe T.-.fi'', rlut necessarily takes a substantial period o1 time to get ready tor rtt
¦mended nit Other borrowing costs are recognized as an expense m the period in which they are
incurred.

Investment income earned on temporary mvevment of specific borrowings pending their expenditure on
qual-Fymg assets n rpcu^niicJ m the siaterieirt of profit and lass

[v| Cash and Cash Equivalrm

In cash flow state men!. Cash and cash equivalent includes the cash and Cheques in h_ademand deposits with bank mil other short term, highly liquid inveslmenls with original maturity ol three
months or ten that i>re readily convertible to known amounts of cash ind wluclt are sub|ecl lo an
insignificant risk d changes m value

Bank overdraft is shown ivithm borcDW-mgs in current liabilities in the bHance sheet and lorms pari oF
linuncmgdttiviiies in the cash Itpw stalemrni. BnaV overdraft are shown within other financial liabilities n
ihe balance sheet and lorms part oF pper^ting acTivlties iri the cash flow statement.

[vil t?jh Flow Statement

CbH flows .! i <¦ r i'' [i 11¹ d using mdrrrt m-r-thod. whr.''ii''by profit/ lluss-F before IJK ’S adi^Etec for the effect
oF transactions of non-cash nature and any deferrals or accrual o( pa-st or future cish receipts or
payments and items of income or expenits associated vvitn investing or financing cash flow The cash flow
frpir. operet ng. investing .uki lip.i-nnrig activities p! the cnrnpjny is srgiegoEed based on ihe available
information.

[vii] Earnings pee Share

i| Basic earning* per -chares is arrived a1 based on net prplrt / [loss) ad or ti* available to equity
shareholders cfiyidcd hy Weighted average number erf nuity shares, adjusted (or Uoaus elements in eqoily
shares issued during the year 4if any) and excluding treasury shares.

m| Diluted eurtunj* per sh-ires is caScu-.ned hy dividing Prplit afflribUllUt to equity holders after tan divided
by weighted average number of shores considered for basic earning per shares including potential dilutive
equHty sharer

---

Mar 31, 2015

A) Basis of Accounting

The financial statements are prepared as a going concern under the historical cost convention on an accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles (GAAP) in India. These financial statements have been prepared to comply in all material aspects with Accounting Standard notified under Rule 7 of the Companies (Accounts) Rule 2014 in respect of section 133 of the Companies Act 2013 and other recognized accounting practices and policies.

b) Use of Estimates

The preparation and presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reported period. Difference between the actual results and the estimates are recognized in the period in which the results are known/ materialized.

c) Revenue recognition

The Company follows mercantile system of the accounting and recognises income and expenditure on accrual basis except those with significant uncertainties.

Sales revenue is recognised on transfer of the significant risks and rewards of ownership of the goods to the buyer and stated net of sales tax, VAT, trade discounts.

Interest income is recognised on time proportion basis.

Income from services is recognised as they are rendered (based on arrangement / agreement with the concern customers).

Dividend income on investments is accounted for as and when the right to receive the payment is established.

The Export incentives are accounted for on accrual basis taking into account certainty of realisation or its subsequent utilisation.

d) Fixed Assets i. Fixed Assets

Fixed assets (Tangible ) are stated at cost of acquisition or construction or development, net of tax /duty credit availed if any, including any cost attributable for bringing the assets to its working condition for its intended use, less depreciation, amortization and impairments, if any.

ii. Capital Expenditure

Assets under erection/installation are shown as "Capital work in progress", Expenditure during construction period are shown as "pre-operative expenses" to be capitalized on erection/installations of the assets.

e) Depreciation

Depreciation on fixed assets is provided in the manner specified in Schedule II to the Companies Act, 2013.Depreciation of an assets in the difference between original cost/ revalued amount and the estimated residual value and is charged to the statement of profit and loss over the useful life of an asset on straight line basis. The estimated useful life of assets and estimated residual value is taken as prescribed under Schedule II to the Companies Act, 2013.

Depreciation on addition during the year is provided on pro rata basis with reference to date of addition / installation . Depreciation on assets disposed / discarded is charged up to the date on which such assets is sold.

f) Borrowing cost

Borrowing cost attributable to the acquisition or construction of qualifying assets are added to / capitalized as part of the cost of such asset up to the date when such assets is ready for its intended use. Other borrowing costs are charged to Statement of Profit and Loss as expense in the year in which they are incurred.

g) Valuation of inventories

Inventories are valued at lower of cost or net realizable value on FIFO basis. Cost of inventory generally comprises of cost of purchases and other cost incurred in bringing the inventories to their present location and condition.

h) Investments

Investments that are readily realisable and are intended to be held for not more than one year, are classified as current investments.

All other investments are classified as non current investments. Current Investments are carried at lower of cost or market/fair value.

Non current investments are carried at cost of acquisition. However, no provision is made for diminution in the value of investments, where, in the opinion of the Board of Directors such diminution is temporary.

i) Employee Benefits

(a) Post-employment benefit plans

i. Defined Contribution Plan - Contributions to Provident Fund and Family Pension fund are accrued in accordance with applicable statute and deposited with appropriate authorities.

ii. Defined Benefit Plan

a. The liability in respect of leave encashment is determined using actuarial valuation carried out as at Balance Sheet date. Actuarial gains and losses are recognized in full in Statement of Profit and Loss for the year in which they occur.

b. The Company has opted for scheme with Life Insurance Corporation of India to cover its liabilities towards employees gratuity. The annual premium paid to Life Insurance Corporation of India is charged to Profit and Loss Account. The Company also carries out actuarial valuation of gratuity using Projected Unit Credit Method as required by Accounting Standard 15 "Employee Benefits" (Revised 2005) and difference between fair value of plan assets and liability as per actuarial valuation as at year end is recognized in Statement of Profit and Loss.

(b) Short term employee benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by employees is recognized during the period when the employees render the services. These benefits include compensated absence also.

j) Foreign currency transaction

i. All transactions in foreign currency are recorded at the rates of the exchange prevailing on the dates when the relevant transactions took place; any gain/ loss on account of the fluctuations in the rate of exchange is recognized in the Statement of Profit and Loss.

ii. Monetary items in the form of loans, current assets and current liabilities in foreign currencies at the close of the year are converted in the Indian currency at the appropriate rate of exchange prevailing on the dates of the Balance Sheet. Resultant gain or loss on account of fluctuation in the rate of exchange is recognized in the Statement of Profit and Loss.

iii. In respect of the Forward Exchange Contracts entered into to hedge foreign currency risks, the difference between the Forward Rate and Exchange Rate at the inception of the contract is recognized as income or expense over the life of the contract. Further, the exchange difference arising on such contracts are recognized as income or expense along with the exchange difference on the underlying assets/ liabilities.

k) Lease Accounting

As a Lessee

Leases, where risk and reward of ownership, are significantly retained by the lessor are classified as operating leases and lease rentals thereon are charged to the statement of profit and loss over the period of lease.

l) Provision, Contingent Liabilities and Contingent Asset

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

m) Taxes on Income

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

Deferred tax is recognised on the timing difference, being the difference between taxable income and the accounting income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

n) Impairment of Assets

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/ external factors.

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting period is reversed if there has been an indication that impairment loss recognised for an asset no longer exists or may have decreased.

o) Cash Flow Statement

Cash Flows are reported using indirect method, whereby Profit (loss) before extraordinary items and tax is adjusted for the effect of transactions of non cash nature and any deferrals or accruals of the past or future cash receipts or payments. The Cash Flow from Operating, Investing and Financial activities of the Company is segregated based on the available information.

---

Mar 31, 2014

A) Basis of Accounting

The financial statements are prepared as agoing concern under the historical cost convention on an accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles (GAAP), Accounting Standards Issued by the Institute of Chartered Accountants of India, as applicable and the relevant provisions of the Companies Act, 1956.

b) Use of Estimates

The preparation and presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reported period. Difference between the actual results and the estimates are recognized in the period in which the results are known/ materialized.

c) Revenue recognition

The Company follows mercantile system of the accounting and recognises income and expenditure on accrual basis except those with significant uncertainties.

Sales revenue is recognised on transfer of the significant risks and rewards of ownership of the goods to the buyer and stated net of sales tax, VAT, trade discounts.

Interest income is recognised on time proportion basis.

Income from services is recognised as they are rendered (based on arrangement/agreement with the concern customers).

Dividend income on investments is accounted for as and when the right to receive the payment is established.

The Export incentives are accounted for on accrual basis taking into account certainty of realisation or its subsequent utilisation.

d) Fixed Assets

i. Fixed Assets

Fixed assets are stated at cost of acquisition or construction or development, net of tax/duty credit availed if any,including any cost attributable for bringing the assets to its working condition for its intended use, less depreciation, amortization and impairments, if any.

ii. Capital Expenditure

Assets under erection/installation are shown as "Capital work in progress", Expenditure during construction period are shown as "pre-operative expenses" to be capitalized on erection/installations of the assets.

e) Depreciation

Depreciation on fixed assets is provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Depreciation on assets added/disposed off during the year has been provided on pro-rata basis with reference to the date of addition /disposal, except for low value items costing Rs. 5,000/- or less are written off fully in the year of purchase.

In respect of addition/extensions forming integral part of existing assets and on revised carrying amount of the assets in dentified as impaired, depreciation has been provided over residual life of the respective fixed assets.

f) Borrowing cost

Borrowing cost attributable to the acquisition or construction of qualifying assets are added to/capitalized as part of the cost of such asset up to the date when such assets is ready for its intended use. Other borrowing costs are charged to Statement of Profit and Loss as expense in the year in which they are incurred.

g) Valuation of inventories

Inventories are valued at lower of cost or net realizable value on FIFO basis. Cost of Inventory generally comprises of cost of purchases and other cost Incurred In bringing the Inventories to their present location and condition.

h) Investments

Investments that are readily realisable and are Intended to be held for not more than one year, are classified as current Investments. All other Investments are classified as non current investments. Current Investments are carried at lower of cost or market/fair value.

Non current investments are carried at cost of acquisition. However, no provision is made for diminution in the value of investments, where, in the opinion of the Board of Directors such diminution is temporary.

i) Employee Benefits

(a) Post-employment benefit plans

i. Defined Contribution Plan - Contributions to Provident Fund and Family Pension fund are accrued in accordance with applicable statute and deposited with appropriate authorities.

ii. Defined Benefit Plan

a. The liability in respect of leave encashment is determined using actuarial valuation carried out as at Balance Sheet date. Actuarial gains and losses are recognized in full in Statement of Profit and Loss for the year in which they occur.

b. The Company has opted for scheme with Life Insurance Corporation of India to cover its liabilities towards employees gratuity. The annual premium paid to Life Insurance Corporation of India is charged to Profit and Loss Account. The Company also carries out actuarial valuation of gratuity using Projected Unit Credit Method as required by Accounting Standard 15 "Employee Benefits" (Revised 2005) and difference between fair value of plan assets and liability as per actuarial valuation as at year end is recognized in Statement of Profit and Loss.

(b) Short term employee benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by employees is recognized during the period when the employees render the services. These benefits include compensated absence also.

j) Foreign currency transaction

i. All transactions in foreign currency are recorded at the rates of the exchange prevailing on the dates when the relevant transactions took place; any gain/loss on account of the fluctuations in the rate of exchange is recognized in the Statement of Profit and Loss.

ii. Monetary items in the form of loans, current assets and current liabilities in foreign currencies at the close of the year are converted in the Indian currency at the appropriate rate of exchange prevailing on the dates of the Balance Sheet. Resultant gain or loss on account of fluctuation in the rate of exchange is recognized in the Statement of Profit and Loss.

iii. In respect of the Forward Exchange Contracts entered into to hedge foreign currency risks, the difference between the Forward Rate and Exchange Rate at the inception of the contract is recognized as income or expense over the life of the contract. Further, the exchange difference arising on such contracts are recognized as income or expense along with the exchange difference on the underlying assets/ liabilities.

k) Lease Accounting

As a Lessee

Leases, where risk and reward of ownership, are significantly retained by the lessor are classified as operating leases and lease rentals thereon are charged to the statement of profit and loss over the period of lease.

I) Provision, Contingent Liabilities and Contingent Asset

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

m) Taxes on Income

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

Deferred tax is recognised on the timing difference, being the difference between taxable income and the accounting income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

n) Impairment of Assets

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factors.

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting period is reversed if there has been an indication that impairment loss recognised for an asset no longer exists or may have decreased.

o) Cash Flow Statement

Cash Flows are reported using indirect method, whereby Profit (loss) before extraordinary items and tax is adjusted for the effect of transactions of non cash nature and any deferrals or accruals of the past or future cash receipts or payments. The Cash Flow from Operating, Investing and Financial activities of the Company is segregated based on the available information.

---

Mar 31, 2013

A) Basis of Accounting

The financial statements are prepared as a going concern under the historical cost convention on an accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles (GAAP), Accounting Standards Issued by the Institute of Chartered Accountants of India, as applicable and the relevant provisions of the Companies Act, 1956.

b) Use of Estimates

The preparation and presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reported period. Difference between the actual results and the estimates are recognized in the period in which the results are known/ materialized.

c) Revenue Recognition

The Company follows mercantile system of the accounting and recognises income and expenditure on accrual basis except those with significant uncertainties.

Sales revenue is recognised on transfer of the significant risks and rewards of ownership of the goods to the buyer and stated net of Sales Tax, Value Added Tax, Trade Discounts and Rebates but includes Excise Duty.

Interest income is recognised on time proportion basis.

Income from services is recognised as they are rendered (based on arrangement / agreement with the concern customers).

Dividend income on investments is accounted for as and when the right to receive the payment is established.

The Export incentives are accounted for on accrual basis taking into account certainty of realisation or its subsequent utilisation.

d) Fixed Assets

i. Fixed Assets

Fixed assets are stated at cost of acquisition or construction or development , net of tax /duty credit availed if any, including any cost attributable for bringing the assets to its working condition for its intended use, less depreciation, amortization and impairments, if any.

ii. Capital Expenditure

Assets under erection/installation are shown as "Capital work in progress", Expenditure during construction period are shown as "pre-operative expenses" to be capitalized on erection/installations of the assets.

e) Depreciation

Depreciation on fixed assets is provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. Depreciation on assets added/disposed off during the year has been provided on pro-rata basis with reference to the date of addition / disposal, except for low value items costing Rs. 0.05 Lacs or less are written off fully in the year of purchase.

In respect of addition / extensions forming integral part of existing assets and on revised carrying amount of the assets indentified as impaired, depreciation has been provided over residual life of the respective fixed assets.

f) Borrowing cost

Borrowing cost attributable to the acquisition or construction of qualifying assets are added to / capitalized as part of the cost of such asset up to the date when such assets is ready for its intended use. Other borrowing costs are charged to Statement of Profit and Loss as expense in the year in which they are incurred.

g) Valuation of Inventories

Inventories are valued at lower of cost or net realizable value on FIFO basis. Cost of inventory is generally comprises of cost of purchases and other cost incurred in bringing the inventories to their present location and condition.

h) Investments

Investments that are readily realisable and are intended to be held for not more than one year, are classified as current investments. All other investments are classified as non current investments. Current Investments are carried at lower of cost or market/fair value.

Non current investments are carried at cost of acquisition. However, no provision is made for diminution in the value of investments, where, in the opinion of the Board of Directors such diminution is temporary.

i) Foreign Currency Transaction

i. All transactions in foreign currency are recorded at the rates of the exchange prevailing on the dates when the relevant transactions took place; any gain/ loss on account of the fluctuations in the rate of exchange is recognized in the Statement of Profit and Loss.

ii. Monetary items in the form of loans, current assets and current liabilities in foreign currencies at the close of the year are converted in the Indian currency at the appropriate rate of exchange prevailing on the dates of the Balance Sheet. Resultant gain or loss on account of fluctuation in the rate of exchange is recognized in the Statement of Profit and Loss.

iii. In respect of the Forward Exchange Contracts entered into to hedge foreign currency risks, the difference between the Forward Rate and Exchange Rate at the inception of the contract is recognized as income or expense over the life of the contract. Further, the exchange difference arising on such contracts are recognized as income or expense along with the exchange difference on the underlying assets/ liabilities.

j) Employee Benefits

(a) Post-Employment Benefit Plans

i. Defined Contribution Plan - Contributions to Provident Fund and Family Pension Fund are accrued in accordance with applicable statute and deposited with appropriate authorities.

ii. Defined Benefit Plan

a. The liability in respect of leave encashment is determined using actuarial valuation carried out as at Balance Sheet date. Actuarial gains and losses are recognized in full in Statement of Profit and Loss for the year in which they occur.

b. The Company has opted for scheme with Life Insurance Corporation of India to cover its liabilities towards employees gratuity. The annual premium paid to Life Insurance Corporation of India is charged to Profit and Loss Account. The Company also carries out actuarial valuation of gratuity using Projected Unit Credit Method as required by Accounting Standard 15 "Employee Benefits" (Revised 2005) and difference between fair value of plan assets and liability as per actuarial valuation as at year end is recognized in the Statement of Profit and Loss.

(b) Short Term Employee Benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by employees is recognized during the period when the employees render the services. These benefits include compensated absence also.

k) Lease Accounting As a Lessee

Leases, where risk and reward of ownership, are significantly retained by the lessor are classified as operating leases and lease rentals thereon are charged to the Statement of Profit and Loss over the period of lease.

l) Provision, Contingent Liabilities and Contingent Asset

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

m) Taxes on Income

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

Deferred tax is recognised on the timing difference, being the difference between taxable income and the accounting income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

n) Impairment of Assets

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/ external factors.

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting period is reversed if there has been an indication that impairment loss recognised for an asset no longer exists or may have decreased.

o) Cash Flow Statement

Cash Flows are reported using indirect method, whereby Profit (loss) before extraordinary items and tax is adjusted for the effect of transactions of non cash nature and any deferrals or accruals of the past or future cash receipts or payments. The Cash Flow from Operating, Investing and Financing activities of the Company is segregated based on the available information.

---

Mar 31, 2010

A) Accounting concept

i) The Company follows the mercantile system of the accounting and recognises income and expenditure on accrual basis. ii) Financial statement are based on historical cost convention.

b) Sales

Sales are inclusive of income from services, excise duty, export incentives and net of trade discount and rebates.

c) Fixed Assets

i) Fixed Assets

Fixed assets are stated at cost of acquisition or construction less accumulated depreciationfexcept free hold land).

Assets which have been revalued are stated at values as per approved valuers report less depreciation. ii) Capital Expenditure

Assets under erection/installation and advances given for capital expenditure are shown as "Capital work in

progress". Expenditure during construction period is shown as "Pre-operative expenses" to be capitalised on

erection/installation of the assets.

d) Depreciation

Depreciation on fixed assets is provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act,1956. Depreciation on assets added/disposed off during the year has been provided on pro-rata basis with reference to the date of addition/disposal.

e) Borrowing cost

Borrowing costs attributable to the acquisition and construction of qualifying assets are capitalised as part of the cost of such asset upto the date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Account

f) Inventories

i) Inventories are valued at lower of cost or net realisable value on FIFO basis except goods in transit which is stated at cost and value of stores, spares, consumables and packing materials are arrived at on Moving Average Price basis. Cost of inventories generally comprise all cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Finished goods lying in the factory premises are valued inclusive of excise duty.

ii) Scrap at net realisable value.

iii) Custom Duty.

The liability on account of Custom duty on imported materials in transit or in bonded warehouse is recognised on clearance of the goods from the Customs.

g) Investments

Long term investments are stated at cost with an appropriate provision for permanent diminution in value.

h) Export incentives/Benefits

Export incentives or benefits under the Export Import Policy are accounted in the year of exports on accrual basis taking into account certainty of realization and its subsequent utilization.

i) Foreign Currency Transactions

Transaction in Foreign currency are recorded at the rate of exchange prevailing on the date of transaction. Current assets and Current liabilities not covered by forward contract are translated at the year end exchange rate and any gain/loss on account of fluctuation in the rate of exchange is recognised in profit and loss account. Premium / Discount in respect of forward foreign exchange contract is recognised over the life of the contract.

j) Contingent liabilities not provided for and are disclosed by way of notes. k) Segment Accounting

(1) Segment Accounting Policies:-

Accounting policies followed by the company for segment reporting are:-

(a) Segment revenue includes sales and other income directly indentifiablewith/allocable to segment.

(b) Expenses that are directly indentifiable with/allocable to segments are considered for determining the segment results. The expenses, which relate to the company as a whole and not allocable to segment, are included under unallocable expenses.

(c) income which relates to the company as a whole and not allocable to segment is included under unallocable income.

(d) (i)Segment Assets includes those assets directly indentifiable with respective segments and employed by a segment in its operating activities, but does not include income tax assets.

(ii)Segment liabilities includes those liabilities directly indentifiable with respective segments and operating liabilities that results, from operating activities of a segment, but does not include income tax liabilities and financial liabilities.

(iii)Unallocable corporate assets and liabilities represents the assets and liabilities that relate to company as a whole and not al locable to any segment.

(2) The company has disclosed business segment as the primary segment. Segments have been indentified taking into account the type of products, the differing risk and returns and the internal reporting system. The various segments identified by the Company comprised as under.

Name of Segment : Comprised of

Stee! : Steel Manufacturing and Trading

Oils : Crude Oils, refined Oils

Others : DOC , Soyameal, Grains etc. I) Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act,1961. Deferred tax is recognized on timing differences, being the difference between taxable income & accounting income that originate in one period and are capable of reversal in one or more subsequent period and quantified using tax rates and laws enacted or substantively enacted as on Balance Sheet date. Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future income will be available against wh ich such deferred tax assets can be real ized.

m) Employee Benefits

(a) Post-employment benefit plans

i) Defined Contribution plan- Contributions to provident fund and Family Pension fund are accrued in accordance with applicable statute and deposited with appropriate authorities.

ii) Defined Benefit plan

(a) The liability in respect of leave encashment is determined using acturial valuation carried out as at Balance Sheet date. Acturial gains and losses are recognized in full in Profit and Loss Account for the year in which they occur.

(b) The Company has opted for scheme with Life Insurance Corporation of India to cover its liabilities towards employees gratuity. The annual premium paid to Life Insurance Corporation of India is charged to Profit and Loss Account. The Company also carried out acturial valuation of gratuity using Projected Unit Credit Method as required by Accounting Standard 15 "Employee Benefits" (Revised 2005) and difference between fair value of plan assets and liability as per acturial valuation as at year end is recognized in Profit and Loss Account.

(b) Short term employee benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered by employees is recognized during the period when the employees render the services. These benefits include compensated absence also.

n) Excise duty

The Excise duty in respect of closing inventory of finished goods is included as part of inventory. o) Operating Leases

Lease rental are recognised as an expense on straight line basis over the term of the lease.

p) Impairment of Assets

An asset is treated as impaired when carrying cost of asset exceeds its recoverable value. An impairement loss is charged to the profit & loss account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

q) 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 amount of assets & liabilities on the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known/ materialised.