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Accounting Policies of Jyoti Resins & Adhesives Ltd. Company

Mar 31, 2023

Significant accounting policies

4.1 Statement of Compliance

The financial statements have been prepared as a going
concern in accordance with Indian Accounting Standards

(Ind AS) notified under the Section 133 of the Companies
Act, 2013 ("the Act") read with the Companies (Indian

Accounting Standards) Rules, 2015 and other relevant
provisions of the Act.

4.2 Going Concern

The board of directors have considered the financial
position of the Company at 31st March, 2023 and projected
cash flows and financial performance of the Company
for at least twelve months from the date of approval of
these financial statements as well as planned cost and
cash improvement actions, and believe that the plan for
sustained profitability remains on course.

The board of directors have taken actions to ensure that
appropriate long-term cash resources are in place at
the date of signing the accounts to fund the Company''s
operations.

4.3 Property, plant and equipment
Recognition and measurement

a) The cost of an item of property, plant and equipment is
recognized as an asset only if it is probable that future
economic benefits associated with the item will flow
to the entity and the cost of the item can be measured
reliably.

b) Property, plant and equipment are stated at cost
net of accumulated depreciation and accumulated
impairment loss, if any.

c) The initial cost of an asset comprises its purchase
price or construction cost (including import duties and
non-refundable taxes) after deducting trade discounts
and rebates, any costs directly attributable to bringing
the asset into the location and condition necessary

for it to be capable of operating in the manner
intended by management, the initial estimate of any
decommissioning obligation (if any) and the applicable
borrowing cost till the asset is ready for its intended use.

d) Subsequent expenditure is capitalised only if it is
probable that the future economic benefits associated
with the expenditure will flow to the Company.

e) Any gain or loss on disposal of an item of property,
plant and equipmentis recognized in profit or loss.

f) Major spare parts which meet the definition of property
plant and equipment are capitalized as property,
plant and equipment. In other cases, the spare parts
are inventorised on procurement and charged to
Statement of Profit & Loss on issue/consumption.

g) Direct expenses incurred during construction period
on capital projects are capitalised.

The Company depreciates property, plant and equipment

over their estimated useful lives using the straightline

method. The estimated useful lives of assets are as follows :

4.4 Capital work-in-progress:

Projects under which property, plant and equipment are
not yet ready for their intended use are carried at cost,
comprising direct cost, related incidental expenses and
attributable interest.

4.5 Investment property

Investment properties are properties held to earn rentals
and/or for capital appreciation. Investment properties are
measured initially at cost, including transaction costs.
Subsequent to initial recognition, investment properties
are measured in accordance with Ind AS 16''s requirements
for cost model. The cost of Investment property includes
the cost of replacing parts and borrowing costs if the
recognition criteria are met. When significant part of the
investment property are required to be replaced at intervals,
the Company depreciates them separately based on their
specific useful lives.

All other repair and maintenance costs are recognised in
Statement of Profit and Loss as incurred. The Company''s
Investment property consists only of land and hence
depreciation thereon is not provided. The fair value of

investment property is disclosed in the notes. Fair values
are determined based on evaluation performed by
accredited external independent valuers. An investment
property is derecognised upon disposal or when the
investment property is permanently withdrawn from use
and no future economic benefits are expected from the
disposal. Any gain or loss arising on derecognition of the
property is included in Statement of Profit and Loss in the
period in which the property is derecognised."

4.6 Intangible assets

An intangible asset is an identifiable non-monetary asset
without physical substance Internally generated intangible
assets Expenditure on research activities is recognised as
an expense in the period in which it is incurred. An internally
generated intangible asset arising from development
(or from the development phase of an internal project) is
recognised if, and only if, all of the following have been
demonstrated:

- the technical feasibility of completing the intangible
asset so that it will be available for use or sale,

- the intention to complete the intangible asset and use
or sell it, the ability to use or sell the intangible asset,

- how the intangible asset will generate probable future
economic benefits

- the availability of adequate technical, financial and
other resources to complete the development and to
use or sell the intangible asset, and

- the ability to measure reliably the expenditure
attributable to the intangible asset during its
development.

The amount initially recognised for internally generated
intangible assets is the sum of the expenditure
incurredfrom the date when the intangible asset first meets
the recognition criteria listed above. Where no internally
generated intangible asset can be recognised, development
expenditure is recognised in profit and loss in the

period in which it is incurred. Subsequent to initial
recognition, internally generated intangible assets are
reported at cost less accumulated amortization and
accumulated impairment losses, on the same basis as
intangible assets that are acquired separately.

Amortization of Intangible assets

An intangible asset with finite useful life that are acquired
separately and where the useful life is 2 years or more
is capitalised and carried at cost less accumulated
amortization. Amortization is recognised on a straight line
basis over the useful life of the asset.

Internally generated intangible assets are amortized over
the period for which the company expects to derive the
economic benefits from such assets.

De-recognition

An intangible asset is derecognised on disposal, or when
no future economic benefits are expected from use or
disposal. Gains or losses arising from derecognition of
an intangible asset, measured as the difference between
the net disposal proceeds and the carrying amount of the
asset, are recognised in Statement of profit and loss when
the asset is derecognised.

Intangible assets are stated at cost of acquisition
or construction less accumulated depreciation less
accumulated impairment, if any.

4.7 Depreication

Depreciation on tangible fixed assets is provided using
the Straight Line Method based on the useful life of the
assets as estimated by the management and is charged to
the Statement of Profit and Loss as per the requirement of
Schedule II of the Companies Act, 2013. In case of additions
or deletions during the year, depreciation is computed from
the month in which such assets are put to use and up to
previous month of sale or disposal, as the case may be.

4.8 Cash flow Statement

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

4.9 Cash and cash equivalents

In the cash flow statement, cash and cash equivalents
includes cash in hand, cheques and drafts in hand,
balances with bank and deposits held at call with financial
institutions, short-term highly liquid investments with
original maturities of three months or less that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

4.10Transaction in Foreign Currency

Foreign currency transactions are translated into the
functional currency using the exchange rates at the dates
of the transactions. Foreign exchange gains and losses
resulting from the settlement of such transactions and
from the translation of monetary assets and liabilities
denominated in foreign currencies at year end exchange
rates are generally recognized in profit or loss.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are recorded using
the exchange rates at the date of the transaction. Non¬
monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the
date when the fair value was measured. The gain or loss
arising on translation of non-monetary items measured
at fair value is treated in line with the recognition of the
gain or loss on the change in fair value of the item (i.e.
translation differences on items whose fair value gain or
loss is recognised in Other Comprehensive Income or
Statement of Profit and Loss are also recognised in Other
Comprehensive Income or Statement of Profit and Loss,
respectively)

4.11 Financial Instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity. Financial assets and
financial liabilities are recognised when the Company
becomes a party to the contractual provisions of the
instruments.

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial
instruments (other than financial assets and financial
liabilities at fair value through profit or loss) are added to
or deducted from the fair value of the financial assets or
financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through
profit or loss are recognized immediately in profit or
loss. Subsequently, financial instruments are measured
according to the category in which they are classified.

4.12 Financial assets at fair value through profit or
loss (FVTPL)

Investment in equity instrument are classified at fair value
through profit or loss, unless the Company irrevocably
elects on initial recognition to present subsequent changes
in fair value in other comprehensive income for investments
in equity instruments which are not held for trading.

Financial assets that do not meet the amortised cost
criteria or fair value through other comprehensive income
criteria are measured at fair value through profit or loss. A
financial asset that meets the amortised cost criteria or fair
value through other comprehensive income criteria may be
designated as at fair value through profit or loss upon initial
recognition if such designation eliminates or significantly
reduces a measurement or recognition inconsistency
that would arise from measuring assets and liabilities or
recognising the gains or losses on them on different bases.

Financial assets which are fair valued through profit or
loss are measured at fair value at the end of each reporting
period, with any gains or losses arising on re-measurement
recognized in profit or loss."

4.13 De-recognition of financial assets and liabilities

The Company derecognizes a financial asset when the
contractual right to the cash flows from the asset expires or
it transfers the rights to receive the contractual cash flows
on the financial asset in a transaction which substantially
all the risk and rewards of ownership of the financial asset
are transferred.

The Company derecognizes a financial liability when
its contractual obligations are discharged, cancelled or
expired; the difference between the carrying amount of
derecognized financial liability and the consideration paid
is recognized as profit or loss.

4.14 Trade receivables

Trade receivables are recognised initially at fair value
unless they do not carry a significant financing component,
in which case they are recognized at the transaction price.

The Company generally determines the allowance
for expected credit losses based on historical loss
experience adjusted to reflect current and estimated future
economic conditions. The Company considered current
and anticipated future economic conditions relating to
industries the company deals with and the countries
where it operates. In calculating expected credit loss, the
Company has also considered credit reports and other
related credit information for its customers to estimate the
probability of default in future.

4.15 Borrowings

Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the
borrowings using the effective interest rate method.

Borrowings are removed from the balance sheet when the
obligation specified in the contract is discharged, cancelled
or expired. The difference between the carrying amount of
a financial liability that has been extinguished or transferred
to another party and the consideration paid, including
any non-cash assets transferred or liabilities assumed, is
recognised in profit or loss.

4.16Trade payables

Trade payables are amounts due to vendors for purchase of
goods in the ordinary course of business and are classified

as current liabilities to the extent it is expected to be paid
within the normal operating cycle of the business.

4.17Leases - Company as a lessee
Finance lease

Leases where the Company assumes substantially all the
risks and rewards of ownership are classified as finance
lease. Such leases are capitalized at the inception of the
lease at lower of the fair value or the present value of the
minimum lease payments and a liability is recognized for
an equivalent amount. Each lease rental paid is allocated
between the liability and the interest cost so as to obtain a
constant periodic rate of interest on the outstanding liability
for each year.

Operating lease

Lease arrangements where the risks and rewards
incidental to ownership of an asset substantially vest with
the lessor, are recognized as operating lease. Operating
lease payments are recognized as an expense on a straight
line basis over the lease term unless the payments are
structured to increase in line with the expected general
inflation so as to compensate for the lessor''s expected
inflationary cost increases.

4.18 Inventories

Inventories are valued at the lower of cost and net realizable
value after providing for obsolescence and other losses
where considered necessary.

The cost of finished goods and work in progress
comprises raw materials, direct labor, other direct costs
and appropriate proportion of variable and fixed overhead
expenditure and also other costs incurred in bringing
the inventories to their present location and condition.
Overhead expenditures are being allocated on the basis of
normal operating capacity. Costs of purchased inventory
are determined after deducting rebates and discounts. Net
realisable value is the estimated selling price in the ordinary
course of business, less the estimated costs of completion
and the estimated costs necessary to make the sale.

Non- production inventory (other than those supplied
along with main plant and machinery, which are capitalised
and depreciated accordingly) are charged to profit or loss
on consumption.

Raw Materials and other items held for use in the production
of inventories are not written down below cost if the finished
products in which they will be incorporated are expected to
be sold at or above cost. Work in progress and finished
goods are valued at cost or Net Realisable Value whichever
is lower. Saleable scrap is valued at the net realisable value."

4.19 Impairment of assets
Financial assets

The Company assesses impairment based on Expected
Credit Losses (ECL) model to the following :

- financial assets measured at amortised cost

- financial assets measured at fair value through other
comprehensive income

Expected credit loss are measured through a loss
allowance at an amount equal to :

- the twelve month expected credit losses (expected
credit losses that result from those default events on
the financial instruments that are possible within twelve
months after the reporting date); or

- full life time expected credit losses (expected credit
losses that result from all possible default events over
the life of the financial instrument).

For trade receivables or any contractual right to receive
cash or another financial asset that result from transactions
that are within the scope of Ind AS 18, the Company always
measures the loss allowance at an amount equal to life time
expected credit losses.

As a practical expedient, the Company uses a provision
matrix to determine impairment loss on portfolio of its trade
receivable. The provision matrix is based on its historically
observed default rates over the expected life of the trade
receivable and is adjusted for forward-looking estimates.
At regular intervals, the historically observed default rates
are updated and changes in forward-looking estimates are
analysed. In addition to the historical pattern of credit loss,
the Company has considered the likelihood of increased
credit risk and consequential default by customers including
revisions in the credit period provided to the customers.
In making this assessment, the Company has considered
current and anticipated future economic conditions relating
to industries/business verticals that the company deals
with and the countries where it operates. In addition the
Company has also considered credit reports and other credit
information for its customers to estimate the probability of
default in future. The Company believes that the carrying
amount of allowance for expected credit loss with respect
to trade receivables, unbilled revenue and other financial
assets is adequate."

Non-financial assets

Property, plant and equipment

Property, plant and equipment with finite life are evaluated
for recoverability whenever there is any indication that
their carrying amounts may not be recoverable. If any such
indication exists, the recoverable amount (i.e. higher of the
fair value less cost to sell and the value-in-use) is determined
on an individual asset basis unless the asset does not

generate cash flows that are largely independent of those
from other assets. In such cases, the recoverable amount
is determined for the cash generating unit (CGU) to which
the asset belongs. If the recoverable amount of an asset
(or CGU) is estimated to be less than its carrying amount,
the carrying amount of the asset (or CGU) is reduced to
its recoverable amount. An impairment loss is recognized
in the statement of profit and loss to such extent. When an
impairment loss subsequently reverses, the carrying amount
of the asset (or a CGU) is increased to the revised estimate
of its recoverable amount, such that the increase in the
carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been
recognised for the asset (or CGU) in prior years. A reversal of
an impairment loss is recognised immediately in statement
of profit and loss.

4.20 Revenue Recognition

Revenue is measured at the fair value of the consideration
received or receivable. Revenue from sale of goods are net of
applicable taxes, estimated returns and reduction/addition
towards variable consideration includes discounts, rebates,
incentives, promotional couponing and schemes. Advance
received from customer before transfer of control of goods
to the customer is recognised as Current Liabilities.

The company estimates the amount of variable components
based on historical, current and forecast information available
and either expected value method or most likely method, as
appropriate and records a corresponding liability in other
payables; the actual amounts may be different from such
estimates. These differences, which have historically not
been significant, are recognized as a change in management
estimate in a subsequent period.

The revenue is recognized when the significant risks and
rewards of ownership of goods are transferred to the buyer,
recoverability of consideration is probable, the amount of
revenue and cost incurred or to be incurred in respect of
the transaction can be measured reliably and there is no
continuing managerial involvement over the goods sold.

Income from services is recognized when the services
are rendered or when contracted milestones have been
achieved.

Interest income from a financial asset is recognised when
it is probable that the economic benefits will flow to the
Company and the amount of income can be measured
reliably. Interest income is accrued on a time basis, by
reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the
expected life of the financial asset to that asset''s net carrying
amount on initial recognition.

Dividend income is recognized when the Company''s right
to receive the payment is established, it is probable that the
economic benefits associated with the dividend will flow to

the Company and the amount of dividend can be measured
reliably.

Revenue / Income and Cost / Expenditure are generally
accounted on accrual basis as they are earned/ incurred,
except those with significant uncertainties.

Dividend Income from investment is recognized as and
when received. Other Incomes are accounted for on
accrual basis except when the recovery is uncertain, it
is accountedfor on receipt basis. Claims made against
the Company are evaluated as to type thereof, period for
which they are outstandingand appropriate provisions
made. Claims are stated net of recoveries from insurance
companies and others. Administrative and other expenses
are stated net of recoveries, wherever applicable."

4.21 Borrowing Costs

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

All other borrowing costs are recognised in statement of
profit and loss in the period in which they are incurred."


Mar 31, 2018

1 Significant accounting policies

1.1 Property, plant and equipment

Recognition and measurement

a) The cost of an item of property, plant and equipment is recognized as an asset only if it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.

b) Property, plant and equipment are stated at cost net of accumulated depreciation and accumulated impairment loss, if any.

c) The initial cost of an asset comprises its purchase price or construction cost (including import duties and non-refundable taxes) after deducting trade discounts and rebates, any costs directly attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation (if any) and the applicable borrowing cost till the asset is ready for its intended use.

d) Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

e) Any gain or loss on disposal of an item of property, plant and equipmentis recognized in profit or loss.

f) Major spare parts which meet the definition of property plant and equipment are capitalized as property, plant and equipment. In other cases, the spare parts are inventorised on procurement and charged to Statement of Profit & Loss on issue/consumption.

g) Direct expenses incurred during construction period on capital projects are capitalised.

1.2 Capital work-in-progress:

Projects under which property, plant and equipment are not yet ready for their intended use are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

1.3 Depreication

Depreiciation is calculated on cost of items of Plant and machinery forming part of property, plan and equipment less their estimated residual values over their estimated useful lives using the straight-line method and for items other than Plant and machinery, it is calculated based on the written down value method, and is generally recognised in the statement of profit and loss. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Freehold land is not depreciated.

1.4 Cash flow Statement

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

1.5 Transaction in Foreign Currency

Foreign currency transactions are recorded at the exchange rate prevailing on the date of such transaction. Foreign currency monetary assets and liabilities are reported using the closing rate. Gains and losses arising on account of difference in foreign exchange rates on settlement/translation of monetary assets and liabilities on the closing date are recognized in the Statement of Profit and Loss.

1.6 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

1.7 Cash and cash equivalents

Cash comprises cash on hand and demand / short term deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.8 Investments

Equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in ‘Other Comprehensive Income’.

1.9 Trade receivables

Trade receivables are amounts due from customers for sale of goods in the ordinary course of business. Trade receivables are initially recognized at its transaction price which is considered to be its fair value and are classified as current assets as it is expected to be received within the normal operating cycle of the business.

1.10 Borrowings

Borrowings are initially recorded at fair value and subsequently measured at amortized costs using effective interest method. Transaction costs are charged to statement of profit and loss as financial expenses over the term of borrowing.

1.11 Trade payables

Trade payables are amounts due to vendors for purchase of goods in the ordinary course of business and are classified as current liabilities to the extent it is expected to be paid within the normal operating cycle of the business.

1.12 Other financial assets and liabilities

Other non-derivative financial instruments are initially recognized at fair value and subsequently measured at amortized costs using the effective interest method.

1.13 De-recognition of financial assets and liabilities

The Company derecognizes a financial asset when the contractual right to the cash flows from the asset expires or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction which substantially all the risk and rewards of ownership of the financial asset are transferred.

The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expired; the difference between the carrying amount of derecognized financial liability and the consideration paid is recognized as profit or loss.

1.14 Leases - Company as a lessee Finance lease

Leases where the Company assumes substantially all the risks and rewards of ownership are classified as finance lease. Such leases are capitalized at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is recognized for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

Operating lease

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognized as operating lease. Operating lease payments are recognized as an expense on a straight line basis over the lease term unless the payments are structured to increase in line with the expected general inflation so as to compensate for the lessor’s expected inflationary cost increases.

1.15 Inventories

Inventories at year-end are valued at the Lower of the Cost Price or Net Realizable Value after providing for Obsolescence and other losses, wherever considered necessary. Cost of inventories comprises of cost of purchase, cost of conversion and costs incurred in bringing them to their respective present location and condition.

1.16 Impairment of assets Financial assets

At each balance sheet date, the Company assesses whether a financial asset is to be impaired. Ind AS 109 requires expected credit losses to be measured through loss allowance. The Company measures the loss allowance for financial assets at an amount equal to lifetime expected credit losses if the credit risk on that financial asset has increased significantly since initial recognition. If the credit risk on a financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for financial assets at an amount equal to 12-month expected credit losses. The Company uses both forward-looking and historical information to determine whether a significant increase in credit risk has occurred.

Non-financial assets Tangible assets

Property, plant and equipment with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs. If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized in the statement of profit and loss to such extent. When an impairment loss subsequently reverses, the carrying amount of the asset (or a CGU) is increased to the revised estimate of its recoverable amount, such that the increase in the carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or CGU) in prior years. A reversal of an impairment loss is recognised immediately in statement of profit and loss.

1.17 Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue from sale of goods includes excise duty and are net of discounts, applicable taxes, rebates and estimated returns.

The revenue is recognized when the significant risks and rewards of ownership of goods are transferred to the buyer, recoverability of consideration is probable, the amount of revenue and cost incurred or to be incurred in respect of the transaction can be measured reliably and there is no continuing managerial involvement over the goods sold.

Income from services is recognized when the services are rendered or when contracted milestones have been achieved.

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

Dividend income is recognized when the Company’s right to receive the payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company and the amount of dividend can be measured reliably.

Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned/ incurred, except those with significant uncertainties.DividendIncomefrominvestment is recognized as and when received. Other Incomes are accounted for on accrual basis except when the recovery is uncertain, it is accountedfor on receipt basis. Claims made against the Company are evaluated as to type thereof, period for which they are outstandingand appropriate provisions made. Claims are stated net of recoveries from insurance companies and others. Administrative and other expenses are stated net of recoveries, wherever applicable.

1.18 Borrowing Costs

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

All other borrowing costs are recognised in statement of profit and loss in the period in which they are incurred.

1.19 Provisions and Contingencies

Provisions are recognised when the Companny has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

1.20 Empolyees Benefit

(a) Short term employee benefits are recognized as expenses at the undiscounted amount in the Statementof Profit and Loss of the year for which the related service is rendered.

(b) Defined Contribution Plan:Monthly contribution to the provident fund which is under defined contribution schemes are charged toStatement of Profit & Loss and deposited with the provident fund authorities on monthly basis.

c) Defined Benefit Plans: Gratuities to employees are covered under the employees’ group gratuity schemes and the premium is paid on the basis of their actuarial valuation using the projected unit credit method. Actuarial gain and losses net of deferred taxes arising from experience adjustments and changes in acturial assumtions are reccognized in other comprehensive income in the period in which they arise. Any short falls in case of premature resignation or termination to the extent not reimbursed by LIC is being absorbed inthe year of payment.

d) Termination benefits are charged to the Statement of Profit and Loss in the year of accrual when the Company is committed without any possibility of withdrawal of an offer made to either terminate employment before the normal retirement date or as a result of an offer made to encourage volutary retirement.

1.21 Taxes on income

Income tax expense comprises current and deferred tax expense. Income tax expenses are recognized in statement of profit and loss, except when they relate to items recognized in other comprehensive income or directly in equity, in which case, income tax expenses are also recognized in other comprehensive income or directly in equity respectively. Current tax is the tax payable on the taxable profit for the year, using tax rates enacted or substantively enacted by the end of reporting period by the governing taxation laws, and any adjustment to tax payable in respect of previous periods. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred taxes arising from deductible and taxable temporary differences between the tax base of assets and liabilities and their carrying amount in the financial statements are recognized using substantively enacted tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled. The deferred tax arising from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction are not recognized. Deferred tax asset are recognized only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax assets to be utilized.

Deferred tax assets and liabilities are offset when the Company has a legally enforceable right to do the same.

1.22 Earning Per Share

Basic earnings per share is computed and disclosed using the weighted average number of common sharesoutstanding during the year. Dilutive earning per share is computed and disclosed using the weighted averagenumber of common and dilutive common equivalent shares outstanding during the year, except when the resultswould be anti-dilutive.


Mar 31, 2015

1) Basis of Preparation of Financial Statements :

The Financial Statements have been prepared under the historical cost convention, in accordance with the Generally Accepted Accounting Principles and provisions of the Companies Act, 2013. All Income and Expenditure having material bearing on the Financial Statements are recognized on accrual basis.

2) Use of Estimates :

The preparation of the Financial Statements in conformity with the Generally Accepted Accounting Policies requires the management to make estimates and assumptions that affect the reported amount of Assets and Liabilities, Revenues and Expenses and disclosure of Contingent Liabilities. Such estimation and assumptions are based on management's evaluation of relevant facts and circumstances as on date of financial statements. Difference between the actual results and estimates are recognized in the period in which the result are known / materialized.

3) Revenue Recognition :

.Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned / incurred, except those with significant uncertainties.

.Dividend Income from investment is recognized as and when received.

.Other Incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis.

.Claims made against the Company are evaluated as to type thereof, period for which they are outstanding and appropriate provisions made. Claims are stated net of recoveries from insurance companies and others.

.Administrative and other expenses are stated net of recoveries, wherever applicable.

4) Fixed Assets :

Fixed Assets acquired by the Company are reported at acquisition value, with deductions for accumulated depreciation and impairment of losses, if any. The acquisition value indicates the purchase price and expenses directly attributable to assets to bring it to the office and in the working condition for its intended use.

5) Depreciation :

Till the year ended March 31, 2014, depreciation rates prescribed under schedule XIV were treated minimum rates and the Company was not allowed to charge depreciation even if such lower rates were justified by the estimated useful life of the asset. Schedule II to the Companies Act, 2013 prescribes useful lives for fixed assets which, in many cases, are different from lives prescribed under the erstwhile Schedule XIV.

Considering the applicability of Schedule II, the management has re-estimated useful lives and residual values of all its fixed assets. The management believes that depreciation rates currently used fairly reflect its estimate of the useful lives and residual values of fixed assets. Depreciation is systematically allocated over the useful life of an asset as specified in Part C of schedule II of the Companies Act, 2013.

6) Investments :

Investments are accounted at the cost plus brokerage and stamp charges. Long term Investments are valued at cost less provision for diminution other than temporary, in value, if any. Profit or Losses on investment are calculated on FIFO Method and are accounted as and when realized.

7) Inventories :

Inventories at year-end are valued at the Lower of the Cost Price or Net Realizable Value after providing for obsolescence and other losses, wherever considered necessary. Cost of inventories comprises of cost of purchase, cost of conversion and costs incurred in bringing them to their respective present location and condition.

8) Miscellaneous Expenditure :

Preliminary expenses and pre-operative expenses are amortized over a period of 10 years.

9) Retirement Benefits :

a) Short term employee benefits are recognized as expenses at the undiscounted amount in the Statement of Profit and Loss of the year for which the related service is rendered.

b) Defined Contribution Plan :

Monthly contribution to the provident fund which is under defined contribution schemes are charged to Statement of Profit & Loss and deposited with the provident fund authorities on monthly basis.

Defined Benefit Plans :

Gratuities to employees are covered under the employees' group gratuity schemes and the premium is paid on the basis of their actuarial valuation using the projected unit credit method. Actuarial gain and losses arising on such valuation are recognized immediately in the Statement of Profit and Loss. Any short falls in case of premature resignation or termination to the extent not reimbursed by LIC is being absorbed in the year of payment.

c) Termination benefits are charged to the Statement of Profit and Loss in the year of accrual.

10) Taxes on Income :

a. Current tax is determined on the basis of amount of tax payable on taxable income for the year.

b. In accordance with Accounting Standard 22 "Accounting For Taxes on Income" issued by The Institute of Chartered Accountants of India, amount of the deferred tax for timing difference between the book and tax profits for the year is accounted for using the tax rate and laws that have been enacted or substantively enacted as of the Balance Sheet date. Deferred Tax Assets arising from temporary timing differences are recognized to the extent there is reasonable certainty that the assets can be realized in future.

11) Expenses:

Material known liabilities are provided for & on the basis of available information / estimates with the Management.

Whenever external evidences for expenses are not available, Management has taken care of proper authorization of such expenses.

12) Transaction in Foreign Currency :

Foreign currency transactions are recorded at the exchange rate prevailing on the date of such transaction. Foreign currency monetary assets and liabilities are reported using the closing rate. Gains and losses arising on account of difference in foreign exchange rates on settlement/translation of monetary assets and liabilities on the closing date are recognized in the Statement of Profit and Loss.

13) Government Grants and Subsidies :

Grants and subsidies from the government are recognized when there is reasonable assurance that (i) the Company will comply with the conditions attached to them, and (ii) the grant/ subsidy will be received.

Where the grant or subsidy relates to revenue, it is recognized as income on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs, which they are intended to compensate. Where the grant relates to an expense, it is deducted from related expenses.

14) Borrowing Cost :

Borrowing costs are recognized in the period to which they relate, regardless of how the funds have been utilized, except where they relates to the financing of new assets requiring a substantial period of time for their intended future use. Interest on borrowings, if any, is capitalized up to the date when the asset is ready for its intended use. The amount of interest capitalized for the period is determined by applying the interest rate applicable to the appropriate borrowings.

15) Earning Per Share :

Basic earnings per share is computed and disclosed using the weighted average number of common shares outstanding during the year. Dilutive earning per share is computed and disclosed using the weighted average number of common and dilutive common equivalent shares outstanding during the year, except when the results would be anti-dilutive.

16) Impairments of Assets :

At each Balance Sheet date, the Company reviews the carrying amount of fixed assets to determine whether there is an indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment of loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the assets to their present value.

17) Provisions and Contingent Liabilities :

Provisions involving substantial degrees of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Provisions (excluding long term benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

18) Cash Flow Statement :

The Cash Flow Statement is prepared by the "Indirect Method" set out in Accounting Standard 3 on Cash Flow Statements and presents the cash flow by Operating, Investing and Financing activities of the Company.

Cash and Cash Equivalents presented in the Cash Flow Statement consist of Cash on Hand, Bank Balances and Demand Deposits with Banks.


Mar 31, 2014

(1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

a) The Financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted by the Companies Act, 1956, and the applicable Accounting standards under the Companies (Accounting Standards) Rules, 2006. All Income and Expenditure having material bearing on the financial statements are recognized on accrual basis.

(2) USE OF ESTIMATES :

The presentation of the financial statements in conformity with the Generally Accepted Accounting policies requires, the management to make estimates and assumptions that affect the reported amount of Assets and Liabilities, revenues and Expenses and disclosure of contingent liabilities. Such estimation and assumptions are based on management''s evaluation of relevant facts and circumstances as on date of financial statements. Difference between the actual results and estimates are recognized in the period in which the result are known / materialized.

(3) FIXED ASSETS :

All fixed assets are stated at cost. The company has capitalised all costs relating to the acquisition and installation of the fixed assets. All expenses prior to commercial production after adjustment of incomes for the same period have been capitalised and appropriated to fixed assets.

(4) DEPRECIATION :

The Company provides depreciation on its fixed assets on Straight Line Method at the rates specified in Schedule XIV of the Companies Act, 1956. The depreciation on additions/ deletions have been provided on pro rata basis from the date of addition/deletion. Individual assets costing less than Rs.5,000/- acquired during the year have been fully depreciated.

(5) INVESTMENTS :

Investments are valued at cost. There is a diminution in the value of long term investments (quoted) held by the company as on 31/03/2014 on the basis of market value thereof as on that date. No provision is considered necessary in accounts at this stage since the company expects such a decline to be temporary.

(6) INVENTORIES :

Inventories at year-end are valued at the Lower of the Cost Price or net realizable Value:

(7) REVENUE RECOGNITION :

- Revenue/ Income and Cost/ Expenditure are generally accounted on accrual basis as they are earned/ incurred, except those with significant uncertainties.

- Dividend income from investment is recognized as and when received.

- Other incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis.

- Claims made against the company are evaluated as to type thereof, period for which they are outstanding and appropriate provision made. Claims are stated net of recoveries from insurance companies and other

- Administrative and other expenses are stated net of recoveries wherever is applicable.

(8) MISCELLANEOUS EXPENDITURE :

Preliminary expenses and pre-operative expenses are amortised over a period of 5 years.

(9) RETIREMENT BENEFITS :

a) Short term employee benefits are recognized as expenses at the undiscounted amount in the profit and loss account of the year is which the related service is rendered.

b) Defined Contribution Plan:

Monthly contribution to the provident fund which is defined contribution schemes are charged to profit & loss account and deposited with the provident fund authorities on monthly basis.

Defined benefit Plans :

Gratuity to employees is not accounted for or provided for present or future liabilities as per the provision of Accounting Standard 15 issued by Institute of Chartered Accountants of India in respect of accounting for retirement benefits.

c) Termination benefits are charged to Profit & loss account in the year of payment.

(10) TAXES ON INCOME :

a. Current tax in determined on the basis of amount of tax payable on taxable income for the year.

b. In accordance with Accounting Standard; -22 "Accounting For Taxes on Income" issued by The Institute of Chartered Accountants of India, amount of the deferred tax for timing difference between the book and tax profits for the year is accounted for using the tax rate and laws that have been enacted or substantively enacted as of the balance sheet date.

(11) EXPENSES :

Material known liabilities are provided for on the basis of available information / estimates with the Management.

Whenever external evidence for expenses are not available, Management has taken care of proper authorization of such expenses.

(12) TRANSACTION IN FOREIGN CURRENCY :

Foreign currency transactions are recorded at the exchange rate prevailing on the date of such transaction.

Foreign currency monetary assets and liabilities are reported using the closing rate. Gains ad losses arising on account of difference in foreign exchange rates on settlement/translation of monetary assets and liabilities on the closing date are recognized in the Profit and Loss account.

(13) BORROWING COST :

Borrowing cost are recognized in the period to which they relate, regardless of how the funds have been utilized, except where it relates to the financing of new assets requiring a substantial period of time for their intended future use. Interest on borrowings if any is capitalized up to the date when the asset is ready for its intended use. The amount of interest capitalized for the period is determined by applying the interest rate applicable to appropriate borrowings.

(14) EARNING PER SHARE :

Basic earning per share is computed and disclosed using the weighted average number of common shares outstanding during the year. Dilutive earning per share is computed and disclosed using the weighted average number of common and dilutive common equivalent shares outstanding during the year, except when the results would be anti-dilutive.

(15) IMPAIRMENTS OF ASSETS :

At each Balance sheet date, the company reviews the carrying amount of fixed assets to determine whether there is an indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment of loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the assets to their present value.

(16) PROVISIONS AND CONTINGENT LIABILITIES :

Provisions involving substantial degrees of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Provisions (excluding long term benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclosed in the notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

(17) CASH FLOW STATEMENT :

The cash flow statement is prepared by the "Indirect Method" set out in Accounting standard 3 on Cash Flow Statements and present the cash flow by operating, investing and financing activities of the company.

Cash and cash equivalent presented in the cash flow statement consist of cash on hand, Bank balances and demand deposits with banks.

(18) ADDITIONAL NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31st March, 2014.


Mar 31, 2013

(1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

a) The Financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted by the Companies Act, 1956, and the applicable Accounting standards under the Companies (Accounting Standards) Rules, 2006. All Income and Expenditure having material bearing on the financial statements are recognized on accrual basis.

(2) USE OF ESTIMATES :

The presentation of the financial statements in conformity with the Generally Accepted Accounting policies requires, the management to make estimates and assumptions that affect the reported amount of Assets and Liabilities, revenues and Expenses and disclosure of contingent liabilities. Such estimation and assumptions are based on management''s evaluation of relevant facts and circumstances as on date of financial statements. Difference between the actual results and estimates are recognized in the period in which the result are known / materialized.

(3) FIXED ASSETS :

All fixed assets are stated at cost. The company has capitalised all costs relating to the acquisition and installation of the fixed assets. All expenses prior to commercial production after adjustment of incomes for the same period have been capitalised and appropriated to fixed assets.

(4) DEPRECIATION :

The Company provides depreciation on its fixed assets on Straight Line Method at the rates specified in Schedule XIV of the Companies Act, 1956. The depreciation on additions/ deletions have been provided on pro rata basis from the date of addition/deletion. Individual assets costing less than Rs.5,000/- acquired during the year have been fully depreciated

(5) INVESTMENTS :

Investments are valued at cost. There is a diminution in the value of long term investments (quoted) held by the company as on 31/03/2013 on the basis of market value thereof as on that date. No provision is considered necessary in accounts at this stage since the company expects such a decline to be temporary.

(6) INVENTORIES :

Inventories at year-end are valued at the Lower of the Cost Price or net realizable Value:

(7) REVENUE RECOGNITION :

- Revenue/ Income and Cost/ Expenditure are generally accounted on accrual basis as they are earned/ incurred, except those with significant uncertainties.

- Dividend income from investment is recognized as and when received.

- Other incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis.

- Claims made against the company are evaluated as to type thereof, period for which they are outstanding and appropriate provision made. Claims are stated net of recoveries from insurance companies and other

- Administrative and other expenses are stated net of recoveries wherever is applicable.

(8) MISCELLANEOUS EXPENDITURE :

Preliminary expenses and pre-operative expenses are amortised over a period of 5 years.

(9) RETIREMENT BENEFITS :

a) Short term employee benefits are recognized as expenses at the undiscounted amount in the profit and loss account of the year is which the related service is rendered.

b) Defined Contribution Plan:

Monthly contribution to the provident fund which is defined contribution schemes are charged to profit & loss account and deposited with the provident fund authorities on monthly basis.

Defined benefit Plans :

Gratuity to employees is not accounted for or provided for present or future liabilities as per the provision of Accounting Standard 15 issued by Institute of Chartered Accountants of India in respect of accounting for retirement benefits.

c) Termination benefits are charged to Profit & loss account in the year of payment.

(10) TAXES ON INCOME :

a. Current tax in determined on the basis of amount of tax payable on taxable income for the year.

b. In accordance with Accounting Standard; -22 "Accounting For Taxes on Income” issued by The Institute of Chartered Accountants of India, amount of the deferred tax for timing difference between the book and tax profits for the year is accounted for using the tax rate and laws that have been enacted or substantively enacted as of the balance sheet date.

(11) EXPENSES :

Material known liabilities are provided for on the basis of available information / estimates with the Management.

Whenever external evidence for expenses are not available, Management has taken care of proper authorization of such expenses.

(12) TRANSACTION IN FOREIGN CURRENCY :

Foreign currency transactions are recorded at the exchange rate prevailing on the date of such transaction.

Foreign currency monetary assets and liabilities are reported using the closing rate. Gains ad losses arising on account of difference in foreign exchange rates on settlement/translation of monetary assets and liabilities on the closing date are recognized in the Profit and Loss account.

(13) BORROWING COST :

Borrowing cost are recognized in the period to which they relate, regardless of how the funds have been utilized, except where it relates to the financing of new assets requiring a substantial period of time for their intended future use. Interest on borrowings if any is capitalized up to the date when the asset is ready for its intended use. The amount of interest capitalized for the period is determined by applying the interest rate applicable to appropriate borrowings.

(14) EARNING PER SHARE :

Basic earning per share is computed and disclosed using the weighted average number of common shares outstanding during the year. Dilutive earning per share is computed and disclosed using the weighted average number of common and dilutive common equivalent shares outstanding during the year, except when the results would be anti-dilutive.

(15) IMPAIRMENTS OF ASSETS :

At each Balance sheet date, the company reviews the carrying amount of fixed assets to determine whether there is an indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment of loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the assets to their present value.

(16) PROVISIONS AND CONTINGENT LIABILITIES :

Provisions involving substantial degrees of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Provisions (excluding long term benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclosed in the notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

(17) CASH FLOW STATEMENT :

The cash flow statement is prepared by the "Indirect Method” set out in Accounting standard 3 on Cash Flow Statements and present the cash flow by operating, investing and financing activities of the company.

Cash and cash equivalent presented in the cash flow statement consist of cash on hand, Bank balances and demand deposits with banks


Mar 31, 2012

(1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

a) The Financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted by the Companies Act, 1956, and the applicable Accounting standards under the Companies (Accounting Standards) Rules, 2006. All Income and Expenditure having material bearing on the financial statements are recognized on accrual basis.

b) Change in Accounting Policy

During the year ended on 31st March 2012, the Revised Schedule VI notified under the Companies Act 1956, has become applicable to the company for preparation and presentation of financial statements. The adoption of the revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The figures for the previous year has been reclassified in accordance with the requirements applicable in the current year.

(2) USE OF ESTIMATES :

The presentation of the financial statements in conformity with the Generally Accepted Accounting policies requires, the management to make estimates and assumptions that affect the reported amount of Assets and Liabilities, revenues and Expenses and disclosure of contingent liabilities. Such estimation and assumptions are based on management''s evaluation of relevant facts and circumstances as on date of financial statements. Difference between the actual results and estimates are recognized in the period in which the result are known / materialized.

(3) FIXED ASSETS :

All fixed assets are stated at cost. The company has capitalised all costs relating to the acquisition and installation of the fixed assets. All expenses prior to commercial production after adjustment of incomes for the same period have been capitalised and appropriated to fixed assets.

(4) DEPRECIATION :

The Company provides depreciation on its fixed assets on Straight Line Method at the rates specified in Schedule XIV of the Companies Act, 1956. The depreciation on additions/ deletions have been provided on pro rata basis from the date of addition/deletion. Individual assets costing less than Rs.5,000/- acquired during the year have been fully depreciated.

(5) INVESTMENTS :

Investments are valued at cost. There is a diminution in the value of long term investments (quoted) held by the company as on 31/03/2012 on the basis of market value thereof as on that date. No provision is considered necessary in accounts at this stage since the company expects such a decline to be temporary.

(6) INVENTORIES :

Inventories at year-end are valued at the Lower of the Cost Price or net realizable Value.

(7) REVENUE RECOGNITION :

- Revenue/ Income and Cost/ Expenditure are generally accounted on accrual basis as they are earned/ incurred, except those with significant uncertainties.

- Dividend income from investment is recognized as and when received.

- Other incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis.

- Claims made against the company are evaluated as to type thereof, period for which they are outstanding and appropriate provision made. Claims are stated net of recoveries from insurance companies and others.

- Administrative and other expenses are stated net of recoveries wherever is applicable.

(8) MISCELLANEOUS EXPENDITURE :

Preliminary expenses and pre-operative expenses are amortised over a period of 5 years.

(9) RETIREMENT BENEFITS :

a) Short term employee benefits are recognized as expenses at the undiscounted amount in the profit and loss account of the year is which the related service is rendered.

b) Defined Contribution Plan:

Monthly contribution to the provident fund which is defined contribution schemes are charged to profit & loss account and deposited with the provident fund authorities on monthly basis.

Defined benefit Plans :

Gratuity to employees is not accounted for or provided for present or future liabilities as per the provision of Accounting Standard 15 issued by Institute of Chartered Accountants of India in respect of accounting for retirement benefits.

c) Termination benefits are charged to Profit & loss account in the year of payment.

(10) TAXES ON INCOME :

a. Current tax in determined on the basis of amount of tax payable on taxable income for the year.

b. In accordance with Accounting Standard; -22 "Accounting For Taxes on Income" issued by The Institute of Chartered Accountants of India, amount of the deferred tax for timing difference between the book and tax profits for the year is accounted for using the tax rate and laws that have been enacted or substantively enacted as of the balance sheet date.

(11) EXPENSES :

Material known liabilities are provided for on the basis of available information / estimates with the Management.

Whenever external evidence for expenses are not available, Management has taken care of proper authorization of such expenses.

(12) TRANSACTION IN FOREIGN CURRENCY :

Foreign currency transactions are recorded at the exchange rate prevailing on the date of such transaction.

Foreign currency monetary assets and liabilities are reported using the closing rate. Gains ad losses arising on account of difference in foreign exchange rates on settlement/translation of monetary assets and liabilities on the closing date are recognized in the Profit and Loss account.

(13) BORROWING COST :

Borrowing cost are recognized in the period to which they relate, regardless of how the funds have been utilized, except where it relates to the financing of new assets requiring a substantial period of time for their intended future use. Interest on borrowings if any is capitalized up to the date when the asset is ready for its intended use. The amount of interest capitalized for the period is determined by applying the interest rate applicable to appropriate borrowings.

(14) EARNING PER SHARE :

Basic earning per share is computed and disclosed using the weighted average number of common shares outstanding during the year. Dilutive earning per share is computed and disclosed using the weighted average number of common and dilutive common equivalent shares outstanding during the year, except when the results would be anti-dilutive.

(15) IMPAIRMENTS OF ASSETS :

At each Balance sheet date, the company reviews the carrying amount of fixed assets to determine whether there is an indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment of loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the assets to their present value.

(16) PROVISIONS AND CONTINGENT LIABILITIES :

Provisions involving substantial degrees of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Provisions (excluding long term benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclosed in the notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

(17) CASH FLOW STATEMENT :

The cash flow statement is prepared by the "Indirect Method" set out in Accounting standard 3 on Cash Flow Statements and present the cash flow by operating, investing and financing activities of the company.

Cash and cash equivalent presented in the cash flow statement consist of cash on hand, Bank balances and demand deposits with banks


Mar 31, 2010

(1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The books of accounts are prepared under the Historical Cost Convention method using the accrual/mercantile method of accounting and accordance with the Companies Act, 1956 and the applicable accounting standards issued by the Institute of Chartered Accountants of India.

(2) FIXED ASSETS :

All fixed assets are stated at cost. The company has capitalised all costs relating to the acquisition and installation of the fixed assets. All expenses prior to commercial production after adjustment of incomes for the same period have been capitalised and appropriated to fixed assets.

(3) DEPRECIATION :

The Company provides depreciation on its fixed assets on Straight Line Method at the rates specified in Schedule XIV of the Companies Act, 1956. The depreciation on additions/ deletions have been provided on pro rata basis from the date of addition/deletion. Individual assets costing less than Rs.5,000/- acquired during the year have been fully depreciated.

(4) INVESTMENTS :

Investments are valued at cost. There is a diminution in the value of long term investments (quoted) held by the company as on 31/03/2010 on the basis of market value thereof as on that date. No provision is considered necessary in accounts at this stage since the company expects such a decline to be temporary.

(5) INVENTORIES :

Inventories are valued as under:

(1) Raw Materials, Stores, Goods in Transit & Work In Process are valued at cost.

(2) Finished Goods are valued at Cost or Net realisable value which ever is lower.

(6) SALES:

Sales are recognised when products are dispatched and represent amounts billed for goods sold including excise duty but excluding VAT.

(7) GRATUITY:

The Company has started staff gratuity scheme with LIC w.e.f 01-05-2009. There are 44 employees in the said scheme.

(8) AMORTISATION OF EXPENSES :

Preliminary & Public Issue Expenses are amortised over a period of ten years.

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