Accounting Policies of Jasch Industries Ltd. Company

Mar 31, 2018

NOTE : 1- STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

I. Company Information

Jasch Industries Limited (JIL or the Company) is a public limited company incorporated in India with its registered office located at 43/5, Bahalgarh Road, Sonipat-131021. The Company is listed on the BSE Ltd. (BSE) and The Calcutta Stock Exchange Ltd. (CSE). However it is in the process of getting voluntarily delisted from (CSE).The Company is a leading manufacturer of Coated Textile and Electronic Thickness Gauge. The company has its wide network of operations in local as well foreign market.

II. Significant Accounting Policies followed by the Company

a) Basis of preparation Compliance with Ind AS

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act 2013 (‘Act’) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended up to date.

The financial statements have been prepared on accrual and going concern basis. The accounting policies have been applied consistently to all the periods presented in the financial statements. All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

The financial statements are presented in INR, the functional currency for the Company. Items included in the financial statements of the Company are recorded using the currency of the primary economic environment in which the Company operates (‘the functional currency’).

The financial statements of the Company for the year ended 31stMarch, 2018 were approved for issue in accordance with the resolution passed by Board of Directors on July 28, 2018.

These financial statements for the year ended 31st March, 2018 are the first financials with comparatives, prepared under Ind AS. For all previous periods including the year ended 31st March, 2017, the Company had prepared its financial statements in accordance with the accounting standards notified under companies (Accounting Standard) Rule, 2006 (as amended) and other relevant provisions of the Act (hereinafter referred to as ‘Previous GAAP’) used for its statutory reporting requirement in India.

b) Historical Cost Convention

The financial statements have been prepared on a historical cost basis, except (1) current investments have been measured at fair value; (2) Assets held for sale have been measured at lower of carrying amount or fair value less cost to sell.

c) Current non-current classification

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.

d) Rounding of amounts

Unless otherwise stated all amounts disclosed in the financial statements and notes have been rounded off to the nearest Rs. lakh as per the requirement of Schedule III.

e) Use of estimates and judgments

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the exiting circumstances.

These are also based on the facts and events, that existed as at reporting date, or that occurred after that date but provide additional evidence about conditions exiting as the reporting date. Differences between actual results and estimates are recognized in the period in which the result are known / materialized.

f) Property, plant and equipment

The carrying cost of property, plant and equipment as on 1st April 2016 has been treated as deemed cost under Ind AS as a one-time measurement and will be treated as historical cost henceforth.

Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost less depreciation and impairment, if any Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or these are recognized as a separate asset, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of Profit and Loss during the reporting period in which they are incurred.

g) Depreciation methods, estimated useful lives and residual value

The Company depreciates its property, plant and equipment on a straight line method over the useful life in the manner prescribed in Schedule II to the Act, and management believes that useful life of assets is the same as that prescribed in Schedule II to the Act.

Useful life considered for calculation of depreciation for various assets class are as follows-

The residual values are not more than 5% of the original cost of the asset. In case of pre-owned assets, the useful life is estimated on a case to case basis.Gain and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss.

h) Investment Properties

Property that is held for long-term rental yields or for appreciation or both, and which is not occupied by the Company, is classified as Investment property, and is measured at its cost, including related transaction cost and where applicable borrowing costs less depreciation and impairment if any.

i) Intangible assets Goodwill / Computer Software

Computer software are stated at cost, less accumulated amortization and impairments, if any. The company amortizes computer software using the straight-line method over a period of 3 years.

Gains and losses on disposal as compared with carrying amount are included in the Statement of Profit and Loss.

j) Cash and Cash Equivalents

In the statement of cash flows, cash and cash equivalent include cash on hand.

k) Inventories

a) Valuation of Inventories of raw-materials, packing-materials, consumables and stores is at cost and excludes taxes &cess actually paid and on subsequently credit availed, includes incidental expense incurred in bringing the inventories to their present location and condition and is arrived at on FIFO basis except in case of release paper, the cost of which is reduced by 75% directly from the cost price as and when new reel of Release Paper is issued to production.

b) Valuation of semi-finished goods / work-in-process is at material cost and includes cost of conversion wherever applicable.

c) Valuation of Finished Goods includes cost of conversion and other costs incurred in bringing the inventories to their present location and condition or market value / net realizable value, whichever is lower.

l) Investments in subsidiaries, joint ventures and associates

Cost of investments in subsidiaries, joint ventures and associates is computed as per Ind AS 27. However, cost of non-current assets held for sale and discontinued operations, are computed in accordance with Ind AS 105.

m) Investments and other financial assets

(i) Classification

The company classifies its financial assets in the following categories:

(a) Those which are to be measured at fair value (either through other comprehensive income, or through the statement of Profit and Loss),

(b) Those which are to be measured at amortized cost.

(c) Those, the classification of which, depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value. Subsequent transaction costs or gains of financial assets are booked in the Statement of Profit and Loss.

(iii) Equity Instruments:

The Company measures its equity investment (other than in subsidiaries, joint ventures and associates) at fair value by routing the gain or loss through Statement of Profit and Loss. However, where the Company’s management makes an irrevocable choice on initial recognition to present fair value gains and losses on specific equity investments in other comprehensive income (currently no such choice made), there is no subsequent reclassification, on sale or otherwise, of fair value gains and losses to the Statement of Profit and Loss.

(iv) Impairment of financial assets

The Company measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

(v) Income recognition Interest Income

Interest income from debt instruments is recognised using the effective interest rate method. m) Dividends

Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established.

n) Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction (or when a sale is considered highly probable) rather than through continued use. These are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and contractual rights under insurance contracts, which are specifically exempt from this requirement.

Non-current assets are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal Company classified as held for sale continue to be recognised.

o) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

p) Borrowing Costs

Interest and other borrowing costs attributable to qualifying assets are capitalized. Other interest and borrowing costs are charged to Statement of Profit and Loss.

q) Provisions and Contingent Liabilities

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, the amount of which can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will depend on the occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.

r) Revenue recognition

Revenue is measured at the value of consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade allowances, rebates, discounts, loyalty discount, value added taxes and amounts collected on behalf of third parties.

The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company and specific criteria have been met for each of the Company’s activities as described below.

s) Sale of goods

Sales are recognised when substantial risk and rewards are transferred to customer. In case of domestic customer, sales generally take place when goods are dispatched or delivery is handed over to transporter. In case of export customers, salesgenerally take place when goods are shipped on board based on bill of lading.

(i) Revenue From services

Revenue from services is recognised in the accounting period in which the services are rendered.

(ii) Other operating revenue-Export incentive

Export incentives under various schemes are accounted for in the year of export. t) Employee Benefits

(i) 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 services, are recognised up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

(ii) Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is recognized as an expense and debited to Statement of Profit and Loss on accrual basis.

(iii) Bonus and leave encashment payment are accounted for on accrual basis and charged to Statement of Profit and Loss.

(iv) Retirement Gratuity Liability is assessed every year as at 31st March, as per actuarial valuation made by LIC of India and premium calculated on the same is paid to LIC of India through JIL Employees Group Gratuity Trust.

u) Foreign currency translation

(i) Functional and presentation currency

The financial statements are presented in Indian rupee (INR), which is Company’s functional and presentation currency.

(ii) Transactions and balances

Transactions in foreign currencies are recognised in INR at the prevailing exchange rates on transaction dates. Realized gains and losses on settlement of foreign currency transactions are recognised in the statement of Profit and Loss.

Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rate and the resultant exchange differences are recognised in the Statement of Profit and Loss.

v) Income Tax

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Deferred income tax is provided for in full, using the liability method on temporary differences arising between the tax basis of assets and liabilities and their carrying amount in the financials statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax assets is realized or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

Minimum Alternate Tax credit is recognised as deferred tax asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

w) Earnings Per Share Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company

- by the weighted average number of equity share outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjusts 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 cost associated with dilutive potential equity share: and

- weighted average number of additional equity shares that would have been outstanding assuming the all conversion of all dilutive potential equity shares.

x) Government Grants

Grants from the government are recognised at their fair value where there is reasonable assurance that the grant will be received and the company with comply with all attached conditions.

Government grants related to purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to Statement of Profit and Loss on a straight-line basis over the expected lives of related assets and presented within other income.

y) Manufacturing and Operating Expenses

The company separately classifies manufacturing and operating expenses which are directly link to manufacturing and service activities of the company.

(i) Amendments to Ind AS7, ‘Statement of Cash Flows’ on disclosure initiative:

The amendment to Ind AS 7 introduces an additional disclosure that enables users of financial statements to evaluate changes in the liabilities arising from financing activities. This includes changes arising from cash flows (e.g. drawdowns and repayments of borrowings) and non-cash changes (i.e. changes in fair value), changes resulting from acquisitions and disposals and effect of foreign exchange differences. Changes in financial asset are included in disclosure if the cash flows were, or will be, included in cash flows from financing activities.

(ii) Critical estimates and judgements

The preparation of financial statements requires the use of estimates and judgements which by definition will seldom equal the actual results. Management also needs to exercise judgement in applying the Group’s accounting policies.

This note provides an overview of the areas that involve a higher degree of judgement or complexity, and items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

(iii) The areas involving critical estimates or judgements are:

Estimation of current tax expenses and payable -refer note no. 28

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Mar 31, 2016

1. SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES

1.1 Basis of Preparation of Financial Statements :

These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of Companies Act, 2013 ("Act") read with Rule 7 of the Companies (Accounts) Rules, 2014 the provisions of the Act (to the extent notified) and other accounting principles generally accepted in India, the extent applicable. All assets and liabilities have been classified as current or no-current as per the Company''s normal operating cycle and other criteria set out in Schedule III to the Act. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities. These financial statements are presented in Indian rupees rounded off to the nearest rupee.

1.2 Use of Estimates :

The preparation of the financial statements in conformity with the generally accepted accounting principles requires that the management makes estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates.

1.3 Recognition of Revenue / Income and Expenditure :

a) Revenues / Incomes and Cost / Expenditures are accounted for on accrual basis, as they are earned or incurred.

b) Turnover comprises of sale of goods and services. Sales are recorded when supply of goods takes place in accordance with the terms of sales. Turnover includes Excise Duties, VAT and Service Tax stated as Gross revenue from operations.

c) Revenue subsidies like interest subsidy (TUF) is reflected in "other incomes" when actually received.

d) Income from Export incentives such as duty draw back are recognized on accrual basis.

e) Income from services rendered is recognized based on agreements / arrangements with the customers as the service is performed using the proportionate completion method when no significant uncertainty exists regarding the amount of the consideration that will be derived from rendering the service and is recognized net of service tax, as applicable.

1.4 Fixed Assets and Depreciation :

Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation where applicable, less accumulated depreciation (other than ''Free Hold Land'', where no depreciation is charged) and impairment loss, if any. The cost of tangible assets comprises its purchase price, borrowing cost and any cost directly attributable to bring the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets if applicable.

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

Tangible assets not ready for the intended use on the date of Balance Sheet are disclosed as "Capital work-in-progress".

Losses arising from the retirement of, and gains or losses arising from disposal of tangible assets which are carried at cost are recognized in the Statement of Profit and Loss.

Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bring the assets to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets if applicable. Intangible assets are amortized on a straight line basis.

Depreciation

Depreciation is provided on a pro-rata basis on the straight line method over the useful lives as prescribed under Part C of Schedule II to the Companies Act, 2013

1.5 Impairment of Assets :

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. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.6 Deferred Revenue Expenditure :

Some revenue expenses, the benefit from which is to accrue over on enduring length of time, are treated as Deferred Revenue Expenditure and appropriate portion thereof is charged to Statement of Profit & Loss.

1.7 Borrowing Costs :

Interest (up to the date of its first use) and other borrowing costs on specific borrowings relatable to qualifying assets are capitalized. Other interest and borrowing costs are charged to revenue.

1.8 Foreign Currency Transactions :

a) Transactions denominated in Foreign Currencies are recorded in Indian Rupees at the exchange rate prevailing on the date of the transaction.

b) Monetary items denominated in foreign currencies at the year-end are stated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year-end rate and rate on the date of contract is recognized as exchange difference and premium paid on forward contracts is recognized over the life of contract.

c) Any income or expense on account of exchange difference either on settlement or on translation is recognized in Statement of Profit and Loss, except in case of the long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

1.9 Liabilities For Customs Duty / Excise Duty / Service Tax :

Liabilities for Customs Duty on the Goods lying at Port are accounted for at the time of clearance of goods. This has no effect on net profits. Excise Duty / Service Tax is accounted on the basis of payment made in respect of goods cleared / services provided.

1.10 Expenditure During Construction Period :

In case of new projects and substantial expansion of existing facilities, expenditure capitalized includes interest and financing cost on specific loan prior to commencement of commercial production.

1.11 Investments :

Investments are classified into current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are stated at cost. A provision for diminutions is made to recognize a decline, other than temporary, separately for each individual long term investments.

Investments that are readily realizable and are intended to be held for not one year from the date on which such investments are made, are classified as "Current investments". All other investments are classified as "Long-term investments".

Investment in land and building that are not intended to be used in the operations of the Company, have been classified as investment property. Investment properties are carried at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation on the building component of the investment property is provided in line with the policy on tangible assets.

1.12 Inventory Valuation :

a) Valuation of Inventories of raw-materials, packing-materials, consumables and stores is at cost excluding Tax, Duty, Cess actually paid and including incidental expense incurred in bringing the inventories to their present location and condition and is arrived at on FIFO Basis except in case of release paper, the cost of which is reduced by 75% directly from the cost price as and when new reel of release paper is issued to production.

b) Valuation of semi-finished goods / work-in-process is at material cost including cost of conversion wherever applicable.

c) Valuation of finished goods includes cost of conversion and other costs incurred in bringing the inventories to their present location and condition or market value / net realizable value, whichever is lower. Finished goods also include excise duty liability in accordance with revised Accounting Standard AS-2.

1.13 Trade Receivables and Loans and advances :

Trade receivables and Loans & Advances are stated after making adequate provisions for doubtful balances or written off in respective account, if any.

1.14 Research & Development Expenditure :

R & D expenditure wherever applicable, is charged to Statement of Profit and Loss and Capital Expenditure in relation thereto is added to the cost of Fixed Assets in the year in which it is incurred.

1.15 Retirement Benefits :

a) Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is recognized as an expense and debited to Statement of Profit and Loss on accrual basis.

b) Bonus and leave encashment payments are accounted for on accrual basis and charged to Statement of Profit and Loss.

c) Retirement Gratuity Liability is assessed every year as at 31^st March, as per actuarial valuation made by LIC of India and premium calculated on the same is paid to LIC of India through JIL Employees Group Gratuity Trust.

1.16 Preliminary & Share Issue Expenses :

Preliminary and Share-issued expenses are amortized over a period of 5 years in accordance with the provision of Income Tax Act, 1961.

1.17 Income Taxes :

Tax expense for the year comprises current tax and deferred tax. Current tax is measured at the amount expected to be paid to or (recovered from) the taxation authorities using the applicable tax rate and tax laws.

Deferred tax is recognized for all the timing differences, subject to the rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. The carrying amount deferred tax assets is reviewed at each Balance Sheet date.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set of assets against liabilities representing current tax and where the deferred tax assets and deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.

1.18 Segment reporting :

The accounting policies adopted for segment reporting are in conformity with the accounting with the accounting policies adopted for the Company. Further, revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the Company as a whole and are not allocable to segments on a reasonable basis, are included under "Un-allocated corporate expenses net of un-allocated income".

1.19 Government Grants :

Government grants and subsidies received are recognized after fulfilling the conditions attached to them. Government grants are of the nature of promoters'' contribution and are credited to Capital Subsidy which is treated as part of Reserves and Surplus.

1.20 Cash and cash equivalents and Cash Flow Statement :

In the cash flow statement, cash and cash equivalents include cash in hand, term deposits with banks, balances in current account with bank. The Cash Flow Statement is prepared under the "Indirect Method" as set out in the Accounting Standard 3(AS-3), "Cash Flow Statements".

1.21 Earnings per share :

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the number of equity shares outstanding at the end of the period. For the purpose of calculating diluted earnings per shares, the net profit for the period attributable to equity shareholders and the number of shares outstanding at the end of the period is adjusted for the effects of all dilutive potential equity shares.

1.22 Provisions, Contingent Liabilities and Contingent Assets :

Provisions are recognized when there is a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value. These are reviewed at each year-end date and adjusted to reflect the best current estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or reliable estimate of the amount cannot be made.

Contingent Assets are neither recognized nor disclosed in the financial statements.

1.23 Re-grouping/Re-Classification of previous year''s figures

The Previous years figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

2.1 There has been no movement in the shares outstanding from the prior year to the current year.

2.2 Terms / rights attached to Equity Shares :

Company has only one class of equity shares having a par value of ''10/-. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be proportion to the number of equity shares held by the shareholders.

2.4 There were no instance of shares issued, on which there were any calls remaining unpaid or instances of any forfeitures during the years ended March 31, 2016 and 2015.

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Mar 31, 2015

A. Basis of Preparation of Financial Statements :

These financial statements have been prepared to comply with General Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. These financial statements are prepared on accrual basis under the historical cost convention. These financial statements are presented in Indian rupees rounded off to the nearest rupee.

All the assets and liabilities have been classified as current or non current as per the Companies normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of the products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertained its operating cycle to be twelve months for the purpose of current / non current classification of assets and liabilities.

B. Use of Estimates :

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimate and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

C. Recognition of Revenue / Income and Expenditure :

a) Revenues / Incomes and Cost / Expenditures are accounted for on accrual basis, as they are earned or incurred.

b) Turnover comprises of sale of goods and services. Sales are recorded when supply of goods takes place in accordance with the terms of sales. Turnover includes Excise Duties, VAT and Service Tax.

c) Revenue subsidies like interest subsidy (TUF) is reflected in "other incomes" when actually received.

D. Fixed Assets and Depreciation : Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation where applicable, less accumulated depreciation (other than 'Free Hold Land', where no depreciation is charged) and impairment loss, if any. The cost of tangible assets comprises its purchase price, borrowing cost and any cost directly attributable to bring the asset to its working condition for its intended use, net of charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets if applicable.

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

Projects under which assets are not ready for their intended use are shown as Capital Work-in-Progress.

Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion and impairment loss, if any. The cost comprises purchase price, borrowing cost, and any cost directly attributable to bring the assets to its working condition for the intended use and net of charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets if applicable

Depreciation

Depreciation is systematically allocated over the useful life of an asset as specified in part C of schedule II of Companies Act, 2013.

E. Impairment of Assets :

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. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

F. Deferred Revenue Expenditure :

Some revenue expenses, the benefit from which is to accrue over on enduring length of time, are treated as Deferred Revenue Expenditure and appropriate portion thereof is charged to Statement of Profit & Loss.

G. Borrowing Costs :

Interest (up to the date of its first use) and other borrowing costs on specific borrowings relatable to qualifying assets are capitalized. Other interest and borrowing costs are charged to revenue.

H. Foreign Currency Transactions :

a) Transactions denominated in Foreign Currencies are recorded at the exchange rate prevailing on the date of the transaction.

b) Monetary items denominated in foreign currencies at the year end are stated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of contract is recognized as exchan e difference and premium paid on forward contracts is recognized over the life of contract.

c) Any income or expense on account of exchange difference either on settlement or on translation is recognized in Statement of Profit and Loss, except in case of the long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

I. Liabilities For Customs Duty / Excise Duty / Service Tax :

Liabilities for Customs Duty on the Goods lying at Port are accounted for at the time of clearance of goods. This is no effect on net profits. Excise Duty / Service Tax is accounted on the basis of both payment made in respect of goods cleared / services provided and provisions made for goods laying in bounded warehouse.

J. Expenditure During Construction Period :

In case of new projects and substantial expansion of existing facilities, expenditure capitalized includes interest and financing cost on specific loan prior to commencement of commercial production.

K. Investments :

Trade investments (Long Term / Short Term) are carried as per AS-13 issued by the ICAI.

L. Inventory Valuation.

a) Valuation of Inventories of raw-materials, packing-materials, consumables and Stores is at cost excluding Tax, Duty, Cess actually paid and including incidental expense incurred in bringing the inventories to their present location and condition and is arrived at on FIFO Basis except in case of Release Paper, the cost of which is reduced by 75% directly from the cost price as and when new reel of Release Paper is issued to production.

b) Valuation of Semi-finished goods / Work-in-process is at material cost including cost of conversion wherever applicable.

c) Valuation of Finished Goods includes cost of conversion and other costs incurred in bringing the inventories to their present location and condition or Market Value / Net realizable value, whichever is lower. Finished goods also include excise duty liability in accordance with revised Accounting Standard AS-2.

M. Research And Development Expenditure :

Research expenditure wherever applicable, is charged to Statement of Profit and Loss and Capital Expenditure in relation thereto is added to the cost of Fixed Assets in the year in which it is incurred.

N. Retirement Benefits :

a) Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is recognized as an expense and debited to Statement of Profit and Loss on accrual basis.

b) Bonus and leave encashment payments are accounted for on accrual basis and charged to Statement of Profit and Loss.

c) Retirement Gratuity Liability is assessed every year as at 31st March, as per actuarial valuation made by LIC of India and premium calculated on the same is paid to LIC of India.

O. Preliminary & Share Issue Expenses :

Preliminary and Share-issued expenses are amortized over a period of 5 years in accordance with the provision of Income Tax Act, 1961.

P. Provision For Current And Deferred Tax :

Provision for current tax is made after using the current applicable tax rates and by taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

Q. Provisions, Contingent Liabilities And Contingent Assets :

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 probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2014

A. Basis of Preparation of Financial Statements :

These financial statements have been prepared in accordance with Accounting Principles Generally accepted in India (Indian GAAP), the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. These financial statements are prepared on accrual basis under the historical cost convention. These financial statements are presented in Indian rupees rounded off to the nearest rupee.

All the assets and liabilities have been classified as current or non current as per the Companies normal operating cycle and other criteria set out in revised Schedule VI to the Companies Act, 1956. Based on the nature of the products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertained it operating cycle to be twelve months for the purpose of current - non current classification of assets and liabilities.

B. UseofEstimates :

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimate and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

C. RecognitionofRevenue/Income and Expenditure :

a) Revenues / Incomes and Cost / Expenditures are accounted for on accrual basis, as they are earned or incurred.

b) Turnover comprises of sale of goods and services. Sales are recorded when supply of goods takes place in accordance with the terms of sales. Turnover includes Excise Duties, VAT and Service Tax.

c) Revenue subsidies like interest subsidy (TUFF) is reflected in "other incomes" when actually received.

D. Fixed Assets and Depreciation :

Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation where applicable, less accumulated depreciation (other than ''Free Hold Land'', where no depreciation is charged) and impairment loss, if any. The cost of tangible assets comprises its purchase price, borrowing cost and any cost directly attributable to bring the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets if applicable.

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

Projects under which assets are not ready for their intended use are shown as Capital Work-in-Progress.

Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bring the assets to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets if applicable

Depreciation

Depreciation is provided on Straight Line Method (SLM). Depreciation is provided at the rates and in the manner prescribed in Schedule XIVtothe Companies Act, 1956.

E. Impairment of Assets :

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. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

F. Deferred Revenue Expenditure :

Some revenue expenses, the benefit from which is to accrue over on enduring length of time, are treated as Deferred Revenue Expenditure and appropriate portion thereof is charged to Statement of Profit & Loss.

G. Borrowing Costs :

Interest (up to the date of its first use) and other borrowing costs on specific borrowings relatable to qualifying assets are capitalized. Other interest and borrowing costs are charged to revenue.

H. Foreign Currency Transactions:

a) Transactions denominated in Foreign Currencies are recorded at the exchange rate prevailing on the date of the transaction.

b) Monetary items denominated in foreign currencies at the year end are stated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of contract is recognized as exchange difference and premium paid on forward contracts is recognized over the life of contract.

c) Any income or expense on account of exchange difference either on settlement or on translation is recognized in Statement of Profit and Loss, except in case of the long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

I. Liabilities For Customs Duty/Excise Duty/ServiceTax :

Liabilities for Customs Duty on the Goods lying at Port are accounted for at the time of clearance of goods. This is no effect on net profits. Excise Duty / Service Tax is accounted on the basis of both, payment made in respect of goods cleared / services provided and provisions made for goods layinginbounded warehouse.

J. Expenditure During Construction Period :

In case of new projects and substantial expansion of existing facilities, expenditure capitalized includes interest and financing cost on specific loan prior to commencement of commercial production.

K. Investments:

Trade investments (Long Term / Short Term) are carried as per AS-13 issued by the ICAI.

L. Inventory Valuation.

a) Valuation of Inventories of raw-materials, packing-materials, consumables and Stores is at cost excluding Tax, Duty, Cess actually paid and including incidental expense incurred in bringing the inventories to their present location and condition and is arrived at on FIFO Basis except in case of Release Paper, the cost of which is reduced by 50% directly from the cost price as and when new reel of Release Paper is issued to production.

b) Valuation of Semi-finished goods / Work-in-process is at material cost including cost of conversion wherever applicable.

c) Valuation of Finished Goods includes cost of conversion and other costs incurred in bringing the inventories to their present location and condition or Market Value / Net realizable value, whichever is lower. Finished goods also include excise duty liability in accordance with revised Accounting Standard AS-2.

M. Research And Development Expenditure :

Research expenditure wherever applicable, is charged to Statement of Profit and Loss and Capital Expenditure in relation thereto is added to the cost of Fixed Assets in the year in which it is incurred.

N. Retirement Benefits :

a) Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is recognized as an expense and debited to Statement of Profit and Loss on accrual basis.

b) Bonus and leave encashment payments are accounted for on accrual basis and charged to Statement of Profit and Loss.

c) Retirement Gratuity Liability is assessed every year as at 31st March, as per actuarial valuation made by LIC of India and premium calculated on the same is paid to LIC of India.

O. Preliminary & Share Issue Expenses:

Preliminary and Share-issued expenses are amortized over a period of 5 years in accordance with the provision of Income Tax Act, 1961.

P. Provision For Current And Deferred Tax :

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

Q. Provisions, Contingent Liabilities And Contingent Assets :

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 probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2012

A. Basis of Preparation of Financial Statements:

The accounts are prepared on accrual basis under the historical cost convention in accordance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956 and other relevant provisions of the said Act.

B. Use of Estimates :

In conformity with generally accepted accounting principles, the preparation of financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

C. Recognition of Revenue / Income and Expenditure:

a) Revenues / Incomes and Cost / Expenditures are accounted for on accrual basis, as they are earned or incurred.

b) Turnover comprises of sale of goods and services. Sales are recorded when supply of goods takes place in accordance with the terms of sales. Turnover includes Excise Duties, VAT and Service Tax.

c) Revenue subsidies like interest subsidy (TUFF) is reflected in "other incomes" when actually received.

D. Fixed Assets and Depreciation:

a) Fixed Assets are stated at cost of acquisition and subsequent improvements thereto including taxes, freight and other incidental expenses related to acquisition and installation. Pre-operative expenses for major projects are also capitalized, where appropriate. However, cost of fixed assets does not include CENVAT, VAT and Capital Subsidy (if any received).

b) Expenditure incurred on Capital Work-in-Progress during pre-operative/ installation period is stated at cost.

c) Depreciation has been provided on straight line method on Assets, as per the Rates specified in Schedule XIV of the Companies Act, 1956. Depreciation is charged on the Fixed Assets from the date they are put to use.

d) Depreciation on additions to assets or on sale/discardment of assets, is calculated pro rata from the day of such addition or up to the day such sale / disscardment, as the case may be.

E. Impairment of Assets:

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. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

F. Intangible Assets:

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

G. Deferred Revenue Expenditure:

Some revenue expenses, the benefit from which is to accrue over on enduring length of time, are treated as Deferred Revenue Expenditure and appropriate portion thereof is charged to Statement of Profit & Loss.

H. Borrowing Costs :

Interest (up to the date of its first use) and other borrowing costs on specific borrowings relatable to qualifying assets are capitalized. Other interest and borrowing costs are charged to revenue.

I. Foreign Currency Transactions:

a) Transactions denominated in Foreign Currencies are recorded at the exchange rate prevailing on the date of the transaction.

b) Monetary items denominated in foreign currencies at the year end are stated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of contract is recognized as exchange difference and premium paid on forward contracts is recognized over the life of contract.

c) Any income or expense on account of exchange difference either on settlement or when transaction is recognized in Statement of Profit and Loss.

J. Liabilities For Customs Duty:

Liabilities for Customs Duty on the Goods lying at Port are accounted for at the time of clearance of goods. This is no effect on net profits.

K. Expenditure During Construction Period:

In case of new projects and substantial expansion of existing facilities, expenditure capitalized includes interest and financing cost on specific loan prior to commencement of commercial production.

L. Investments:

Trade investments (Long Term / Short Term) are carried as per AS-13 issued by the ICAI.

M. Inventory Valuation.

a) Valuation of Inventories of raw-materials, packing-materials, consumables and Stores is at cost including Tax, Duty, Cess actually paid and incidental expense incurred in bringing the inventories to their present location and condition and is arrived at on FIFO Basis except in case of Release Paper, the cost of which is reduced by 50% directly from the cost price as and when new reel of Release Paper is issued to production.

b) Valuation of Semi-finished goods/Work-in-process is at material cost including cost of conversion wherever applicable.

c) Valuation of Finished Goods includes cost of conversion and other costs incurred in bringing the inventories to their present location and condition or Market Value / Net realizable value, whichever is lower. Finished goods also include excise duty liability in accordance with revised Accounting Standard AS-2

N. Research And Development Expenditure:

Research expenditure wherever applicable, is charged to Statement of Profit and Loss and Capital Expenditure in relation thereto is added to the cost of Fixed Assets in the year in which it is incurred.

O. Retirement Benefits :

a) Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is recognized as an expense and debited to Statement of Profit and Loss on monthly accrual basis.

b) Bonus and leave encashment payments are accounted for on accrual basis and charged to Statement of Profit and Loss.

c) Retirement Gratuity Liability is assessed every year as at 31st March, as per actuarial valuation made by LIC of India and premium calculated on the same is paid to LIC of India.

P. Preliminary & Share Issue Expenses:

Preliminary and Share-issued expenses are amortized over a period of 5 years in accordance with the provision of Income Tax Act, 1961.

Q. Provision For Current And Deferred Tax:

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

R. Provisions, Contingent Liabilities And Contingent Assets:

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 probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

S. Accounts balances of the customers and suppliers, in whose case(s) confirmation / reconciliation is not received, are taken as per the balance appearing in the books. Any differences arising on account of such reconciliations, which are not likely to be material, are accounted for as and when these reconciliations are completed.

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Mar 31, 2010

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The Financial Statements are prepared on accrual basis under the historical cost convention in accordance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956 and other relevant provisions of the said Act.

2. USE OF ESTIMATES :

In conformity with generally accepted accounting principles the preparation of financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known/materialized.

3. RECOGNITION OF REVENUE/INCOME AND EXPENDITURE :

a) Revenues/Incomes and Cost/Expenditures are generally accounted on accrual, as they are earned on incurred

b) Turnover comprise of sale of goods. Sales are recorded when supply of goods takes place in accordance with the terms of Sales. Turnover include Excise Duties and VAT.

4. FIXED ASSETS AND DEPRECIATION :

a) Fixed Assets are stated at cost of acquisition and subsequent improvements thereto including taxes, freight and other incidental expenses related to acquisition and installation. Pre-operative expenses for major projects are also capitalized, where appropriate. However, cost of fixed assets does note include CENVAT, VAT, Capital Subsidy (if any as and when received) and accumulated depreciation.

b) Expenditure incurred on Capital work-in-progress during pre-operative/installation period is stated at cost.

c) Depreciation has been provided on straight line method on Assets, as per the Rates specified in Schedule XIV of the Companies Act, 1956. Depreciation is charged on the Fixed Assets from the date they are put to use.

d) Depreciation on additions to assets or on sale/discardment of assets, is calculated pro rata from the day of such addition or up to the day such sale/discardment, as the case may be.

5. DEFERRED REVENUE EXPENDITURE :

Some revenue expenses, the benefit from which is to accrue over on enduring length of time, are treated as Deferred Revenue Expenditure and appropriate portion thereof is charged to Profit & Loss Account.

6. BORROWING COSTS :

Interest and other borrowing costs on specific borrowings relatable to qualifying assets are capitalised. Other interest and borrowing costs are charged to revenue.

7. FOREIGN CURRENCY TRANSACTIONS :

a) Transactions denominated in Foreign Currencies are recorded at the exchange rate prevailing on the date of the transaction.

b) Monetary items denominated in foreign currencies at the year end are stated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of contract is recognized as exchange difference and premium paid on forward contracts is recognized over the life of contract.

c) Any income or expense on account of exchange difference either on settlement or on translation is recognized in profit and loss account.

8. LIABILITIES FOR CUSTOMS DUTY

Liabilities for Customs Duty on the Goods lying at Port are accounted for at the time of clearance of goods. There is no effect on net profits.

9. EXPENDITURE DURING CONSTRUCTION PERIOD :

In case of new projects and substantial expansion of existing facilities, expenditure capitalized includes interest and financing cost on specific loan prior to commencement of commercial production.

10. INVESTMENTS :

Trade investments are carried as per AS-13 issued by the ICAI and reduction in carrying cost is charged to Profit & Loss Account.

11. INVENTORY VALUATION :

a) Valuation of inventories of raw-materials, packing-materials, consumables and Stores is at cost including Tax, duty, cess actually paid and incidental expenses incurred in bringing the inventories to their present location and condition and is arrived at on FIFO Weighted average Basis except valuation of consumables (Release Paper) which is reduced by 45% directly from the cost price as and when new reel of Release Paper issued to production.

b) Valuation of Semi-finished goods/Work-in-process is at material cost including cost of conversion wherever applicable.

c) Finished goods include costs of conversion and other costs incurred in bringing the inventories to their present location and condition or Market Value/Net realizable value whichever is lower. Finished goods also include excise duty liability in accordance with revised Accounting Standard AS-2.

12. RESEARCH AND DEVELOPMENT EXPENDITURE :

Research expenditure wherever applicable, is charged to Profit & Loss Account and Capital Expenditure in relation there to is added to the cost of Fixed Assets in the year in which it is incurred. 26

13. RETIREMENT BENEFITS :

a) Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is recognised as an expense and debited to Profit & Loss Account on monthly accrual basis.

b) Bonus and leave encashment payments are accounted for on accrual basis and charged to Profit & Loss Account.

c) Retirement Gratuity Liability have been assessed every year as at 31st March, as per acturian valuation and premium calculated on the same is paid to LIC of India.

14. BAD DEBTS WRITE OFF POLICY:

Trade debt, if any, remaining outstanding for more than three years, about which the management is of the opinion that the same is not recoverable, is written off by direct charge to Profit & Loss Account and credit to respective partys account without making provision for bad debts. In case such amount or a part thereof is subsequently recovered, the same is reflected as income of the year in which the same is recovered.

15. REVENUE SUBSIDIES :

Revenue subsidies like interest subsidy is reflected as "other receipts" when actually received.

16. PRELIMINARY & SHARE ISSUE EXPENSES :

Preliminary and Share-issued expenses are amortized over a period of 5 years in accordance with the provision of Income Tax Act 1961.