Accounting Policies of Karnawati Innovation Ltd. Company

Mar 31, 2025

3. SIGNIFICANT ACCOUNTING POLICIES

The company has applied following accounting policies to all periods presented in the Ind AS
Financial Statement.

a) Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable net of
discounts, volume rebates, outgoing sales taxes and other indirect taxes excluding excise duty.

Revenue from sale is recognized when all significant risks and rewards of ownership of the
commodity sold are transferred to the customer who generally coincides with delivery.

Dividend Income is recognized when the right to receive payment is established.

Interest Income is recognized on time basis using the effective interest method.

b) Property, Plant and Equipment
i. Property, Plant and Equipment

The initial cost of property, plant and equipment comprises its purchase price, including
import duties and non-refundable purchase taxes, attributable borrowing cost and any other
directly attributable costs of bringing an asset to working condition and location for its
intended use.

Expenditure incurred after the property, plant and equipment have been put into operation,
such as repairs and maintenance, are normally charged to the statements of profit and loss in

the period in which the costs are incurred. Major inspection and overhaul expenditure is
capitalized if the recognition criteria are met

When significant parts of plant and equipment are required to be replaced at intervals, the
Company depreciates them separately based on their specific useful lives. Likewise, when a
major inspection is performed, its cost is recognized in the carrying amount of the plant and
equipment as a replacement if the recognition criteria are satisfied. All other repair and
maintenance costs are recognized in the statement of profit and loss as incurred.

Gains and losses on disposal of an item of property, plant and equipment are determined by
comparing the proceeds from disposal with the carrying amount of property, plant and
equipment, and are recognized net within other income/other expenses in statement of profit
and loss.

An item of property, plant and equipment and any significant part initially recognized is
derecognized upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the
statement of profit and loss, when the asset is derecognized.

The residual values, useful lives and methods of depreciation of property, plant and equipment
are reviewed at each financial year end and adjusted prospectively, if appropriate.

ii. Depreciation

Property, plant and equipment are stated at cost less accumulated depreciation and any
provision for impairment. Depreciation commences when the assets are ready for their
intended use.

Depreciation is calculated on the depreciable amount, which is the cost of an asset less its
residual value. Depreciation is provided at rates calculated to write off the cost, less estimated
residual value, of each asset on a written down value basis.

Depreciation methods, useful lives and residual values are reviewed at each financial year end
and changes in estimates, if any, are accounted for prospectively.

c) 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

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not
recorded at fair value through statement of profit and loss, transaction costs that are
attributable to the acquisition of the financial asset. Purchases or sales of financial assets that
require delivery of assets within a time frame established by regulation or convention in the
market place (regular way trades) are recognized on the trade date, i.e., the date that the
Company commits to purchase or sell the asset.

Subsequent Measurement

Subsequent measurement of financial assets is described below -

After initial measurement, such financial assets are subsequently measured at amortized cost
using the effective interest rate (EIR) method. Amortized cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortization is included in finance income in the statement of profit and loss.
The losses arising from impairment are recognized in the statement of profit and loss. This
category generally applies to trade and other receivables.

However, reporting entity does not have such financial assets to be measured at amortized cost
using EIR method.

Financial Assets - Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognized (i.e. removed from the Company’s balance sheet)
when:

¦ The rights to receive cash flows from the asset have expired, or

¦ The Company has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a third party
under a ''passthrough'' arrangement; and either (a) the Company has transferred substantially
all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and
rewards of ownership. When it has neither transferred nor retained substantially all of the
risks and rewards of the asset, nor transferred control of the asset, the Company continues to
recognize the transferred asset to the extent of the Company''s continuing involvement. In that
case, the Company also recognizes an associated liability. The transferred asset and the
associated liability are measured on a basis that reflects the rights and obligations that the
Company has retained

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on the financial assets that are debt
instruments, and are measured at amortized cost e.g., loans, debt securities, deposits and 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 follows ’simplified approach'' for recognition of impairment loss allowance on
trade receivables. The application of simplified approach does not require the Company to
track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime
ECLs at each reporting date, right from its initial recognition.

Financial liabilities - Recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through statement of profit and loss, loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings.

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through statement of profit and loss

Financial Liabilities at fair value through statement of profit and loss include financial liabilities
held for trading and financial liabilities designated upon initial recognition as at fair value

rough statement of profit and loss. Financial liabilities are classified as held for trading if they
are incurred for the purpose of repurchasing in the near term.

° Loans and Borrowings:

After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortized cost using the effective interest rate (hereinafter referred as E1R) method Gains and

losses are recognized in statement of profit and loss when the liabilities are derecognized as
well as through the EIR amortization process. recognized as

Amortized cost is calculated by taking into account any discount or premium on acquisition

and fees or costs that are an integral part of the EIR. The EIR amortization is included as
finance costs in the statement of profit and loss.

Financial liabilities - Derecognition

A Financial liabilities is derecognized when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the respective Carrying
amounts is recognized in the statement of profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance
an intention to ^{legal right to offset the} recognized amounts and there is

simultaneously on basis to ^{the assets and settle the} liabilities

d) Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short¬
term deposits with an original maturity of twelve months or less, which are subject to an
insignificant risk of changes in value. ^Subject to an

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above. ^and

^e) Impairment of Non-financial Assets

The Company assesses at each reporting date, whether there is an indication on that an asset may
be impaired. If any indication exists, or when annual impairment testing for an asset is

required, the Company estimates the asset''s recoverable amount. An asset’s recoverable

mount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of

disposal and its value in use. Recoverable amount is determined for an individual asset unless

the asset does not generate cash inflows that are largely independent of those from other
assets or groups of assets. When the carrying amount of an asset or CGU exceeds its

recoverable amount, the asset is considered impaired and is written down to its recoverable amount

In assessing value in use, the estimated future cash flows are discounted to their present value

using a post-tax discount rate that reflects current market assessments of the time value of

money and the risks specific to the asset, in determining fair value less costs of disposal
market transactions are taken into account. disposal, recent

f) Inventories

Inventories of Diamond and Jewellery are valued at the lower of cost and net realizable value.

Net realizable value is the estimated selling price in the ordinary course of business less
estimated costs of completion and the estimated costs necessary to make the sale.

estimated and

g) Taxation
Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognized outside profit or loss is recognized outside

recognized in correlation to the underlying transaction either in OCI or directly in equity management periodically evaluates positions taken in the tax returns with respect to situations in which

in correlation to the underlying transaction either in OCI or directly in equity

management periodically evaluates positions taken in the tax returns with respect to situations
where appropriate regulations are subject to and Publishes provisions

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax,,
bases of assets and liabilities and their carrying amounts for financial reporting purpose at the

reporting date . Deferred tax liabilities are recognized for all taxable temporary differences
future. is probable that the temporary differences will not reverse in the foreseeable

Deferred tax assets are recognized for all deductible temporary differences the carry forward
of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the
extent that it is probable that taxable profit will be available against which the deductible

temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized

and the weighted average number of equity shares outstanding for the effects of all dilutive
potential equity shares.

k) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided
to the chief operating decision-maker. Revenue and expenses are identified to segments on the
basis of their relationship to the operating activities of the segment. Inter segment revenue are
accounted for based on the cost price. Revenue, expenses, assets and liabilities which are not
allocable to segments on a reasonable basis, are included under "Unallocated revenue/
expenses/ assets/liabilities".

l) Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS -7 "Statement of Cash
Flows”, whereby profit / (loss) before 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.

m) Use of Estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires management to
make judgments, estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income, expenses and disclosures of contingent
assets and liabilities at the date of these financial statements and the reported amounts of
revenues and expenses for the years presented. Actual results may differ from these estimates
under different assumptions and conditions.

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

In particular, information about significant areas of estimation uncertainty and critical
judgments in applying accounting policies that have the most significant effect on the amounts
recognized in the financial statements are elaborated.

---

Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES

The company has applied following accounting policies to all periods presented in the Ind AS Financial Statement.

a) Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable, net of discounts, volume
rebates, outgoing sales taxes and other indirect taxes excluding excise duty.

Revenue from sales is recognized when all significant risks and rewards of ownership of the commodity sold
are transferred to the customer which generally coincides with delivery.

b) Property, Plant and Equipment

i. Property, Plant and Equipment

The Company has applied Ind AS 16 with prospective effect for all of its property, plant and equipment as
at the transition date, viz., April 1, 2016.

The initial cost of property, plant and equipment comprises its purchase price, including import duties and
non-refundable purchase taxes, attributable borrowing cost and any other directly attributable costs of
bringing an asset to working condition and location for its intended use.

Expenditure incurred after the property, plant and equipment have been put into operation, such as
repairs and maintenance, are normally charged to the statements of profit and loss in the period in which
the costs are incurred. Major inspection and overhaul expenditure is capitalized if the recognition criteria
are met.

When significant parts of plant and equipment are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives. Likewise, when a major inspection is
performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the
recognition criteria are satisfied. All other repair and maintenance costs are recognized in the statement
of profit and loss as incurred.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing
the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized
net within other income/other expenses in statement of profit and loss.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and
the carrying amount of the asset) is included in the statement of profit and loss, when the asset is
derecognized.

The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.

ii. Depreciation

Property, plant and equipment are stated at cost less accumulated depreciation and any provision for
impairment. Depreciation commences when the assets are ready for their intended use.

Depreciation is calculated on the depreciable amount, which is the cost of an asset less its residual value.
Depreciation is provided at rates calculated to write off the cost, less estimated residual value, of each
asset on a written down value basis.

Depreciation methods, useful lives and residual values are reviewed at each financial year end and
changes in estimates, if any, are accounted for prospectively.

c) 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 Asstes

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair
value through statement of profit and loss, transaction costs that are attributable to the acquisition of the
financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the market place (regular way trades) are recognized on the trade
date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent Measurement

Subsequent measurement of financial assets is described below -

After initial measurement, such financial assets are subsequently measured at amortized cost using the
effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included
in finance income in the statement of profit and loss. The losses arising from impairment are recognized in the
statement of profit and loss. This category generally applies to trade and other receivables.

However, reporting entity does not have such financial assets to be measured at amortized cost using EIR
method.

Financial Assets - Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)
is primarily derecognized (i.e. removed from the Company''s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-

through'' arrangement- and either (a) the Company has transferred substantially all the risks and rewards
of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues to recognize the transferred asset to the extent of the
Company''s continuing involvement. In that case, the Company also recognizes an associated liability. The
transferred asset and the associated liability are measured on a basis that reflects the rights and obligations
that the Company has retained
Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the financial assets that are debt instruments, and are measured at amortized
cost e.g., loans, debt securities, deposits and 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 follows ‘simplified approach'' for recognition of impairment loss allowance on trade receivables.
The application of simplified approach does not require the Company to track changes in credit risk. Rather, it
recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition.

Financial liabilities - Recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through statement of
profit and loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an
effective hedge, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings.

The measurement of financial liabilities depends on their classification, as described below:

* Financial liabilities at fair value through statement of profit and loss:

Financial liabilities at fair value through statement of profit and loss include financial liabilities held for
trading and financial liabilities designated upon initial recognition as at fair value through statement of profit
and loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term.

* Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized
cost using the effective interest rate (hereinafter referred as EIR) method. Gains and losses are recognized
in statement of profit and loss when the liabilities are derecognized as well as through the EIR amortization
process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the
statement of profit and loss.

Financial liabilities - Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognized in the statement of profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is
a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net
basis, to realize the assets and settle the liabilities simultaneously.

For more information on financial instruments Refer note no 20.

d) Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of twelve months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above.

e) Inventories

In accordance of Ind AS-2, the inventories are valued at lower of cost or NRV. The cost of inventories shall
comprise all cost of purchase, cost of conversion and other costs incurred in bringing their inventories to their
present location and condition.

Net Realizable is the estimated selling price in the ordinary course of business less the estimated cost of
completion and the estimated cost necessary to make the sale.

f) Taxation
Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to
the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date.

Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either
in other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying
transaction either in OCI or directly in equity. 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 tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax
liabilities are recognized for all taxable temporary differences, except when it is probable that the temporary
differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses 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 tax asset
to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to
the extent that it has become probable that future taxable profits will allow the deferred tax asset to be
recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the
asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are recognized in correlation to the underlying transaction
either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

g) Employee Benefit Schemes
Short-term employee benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short¬
term employee benefits. These benefits include salaries and wages, performance incentives and compensated
absences which are expected to occur in next twelve months. The undiscounted amount of short-term employee
benefits to be paid in exchange for employee services is recognized as an expense as the related service is
rendered by employees.

h) Earnings Per Share

The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is
calculated by dividing the profit and loss attributable to equity shareholders of the Company by the weighted
average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the
profit and loss attributable to equity shareholders and the weighted average number of equity shares outstanding
for the effects of all dilutive potential equity shares.

For further information on Earning per Share refer Note No. 18.

i) Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS -7 “Statement of Cash Flows”, whereby profit
/ (loss) before 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.

j) Use of Estimates and Judgments

The preparation of the financial statements in conformity with Ind AS requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income, expenses and disclosures of contingent assets and liabilities at the date of these
financial statements and the reported amounts of revenues and expenses for the years presented. Actual
results may differ from these estimates under different assumptions and conditions.

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

In particular, information about significant areas of estimation uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amounts recognized in the financial statements
are elaborated in note no. 21.

3. Significant Notes:

i. Current Assets, Loans & Advances and Liabilities

In the opinion of the Board, the value of realization of current assets, loans & advances, if realized in the ordinary
course of the business, shall not be less than the amount, which is stated, in the current year Balance Sheet.
The provision for all known liabilities is reasonable and not in excess of the amount considered reasonably
necessary.

ii. Directors Remuneration

Sitting Fees of Rs. 40,000 is paid to Khyati Bhavya Shah during the year.

iii. Disclosure Requirement for Sundry Creditors Covered Under MSME Act, 2006:

As informed by the management, the Company has circulated confirmation for the identification of suppliers
registered under the Micro, Small and Medium Enterprises Development Act, 2006.

The company has disclosed the amounts unpaid, if any as at the yearend together with interest paid/payable
relating to the suppliers from whom confirmation regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006 is obtained.

iv. Previous Year’s Figures:

Previous years'' figures have been recast so as to make them comparable with current year''s figures.

The fair value of the financial assets and liabilities are included at the amount that would be received to sell an
asset and paid to transfer a liability in an orderly transaction between market participants. The following
methods and assumptions were used to estimate the fair values:

• Cash and Cash Equivalents, Other Current Assets and Trade Payables:-Approximate their carrying
amounts largely due to the short-term maturities of these instruments.

• Loans Current & Non-Current and Other Current Liabilities: All the amounts given/taken as loans do
not carry any interest obligation and it is not practicable to estimate the timing of repayment of this loan.
Thus, it is considered as repayable/receivable on demand and the face value (i.e. amount payable on
demand) of such asset is considered its fair value.

21 Critical Estimates and Judgements in applying Accounting Policies:

The management believes that the estimates used in preparation of the financial statements are prudent and
reasonable. Information about estimates and judgments made in applying accounting policies that have the most
significant effect on the amounts recognized in the financial statements are as follows:

i) Property, plant and equipment and useful life of property, plant and equipment and intangible assets

The carrying value of property, plant and equipment is arrived at by depreciating the assets over the useful life
of assets. The estimate of useful life is reviewed at the end of each financial year and changes are accounted
for prospectively.

---

Mar 31, 2015

1.1 Accounting estimate:

The preparation of financial statements in conformity with the generally accepted accounting principles in India (Indian GAAP) requires management to make estimates and assumptions that effect the reported amounts of Asset and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is prospectively recognized in current and future periods.

1.2 Fixed Assets:

Fixed assets existing as on 31.03.1993 have been revalued as per the report of Government Approved Valuer. The revalued assets are stated at the revalued figure less accumulated depreciation calculated on the revalued figure for the year ended on 31.03.1993 and subsequent year. The assets acquired after 31.03.1993 are stated at the cost of acquisition including incidental expenses related to acquisition & installation less accumulated depreciation except for lease hold land.

1.3 Depreciation:

Depreciation on fixed assets is provided on straight line method at the rates prescribed in Schedule - XIV of the Companies Act, 1956 pro-rata for the period the assets has been put to use.

1.4 Impairment of Assets:

Pursuant to Accounting Standard (AS-28) - Impairment of Assets issued the Institute of Chartered Accountants of India, the carrying amounts ofthe Company's assets including intangible assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amount is estimated, as higher of the net selling price and the value in use. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. If at the Balance Sheet date, there is indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is assessed at the recoverable amount subject to maximum of depreciable historical cost.

1.5 Earnings Per Share (EPS)

The basic EPS is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

1.6 Provision and Contingencies:

A provision is recognized when there is present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.

A disclosure for a contingent liability is made when there is a possible or present obligation that may, but probably will not require an outflow of resource. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.7 Borrowing Costs:

Borrowing Costs are charged to Profit & Loss account except those which attributed to the acquisition or construction of qualifying assets.

---

Mar 31, 2014

Note : 1

1 Basis of preparation

The financial statements are prepared under the historical cost convention on the accrual basis of accounting, in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and company with the accounting standards, as prescribed by the companies (Accounting Standards) Rules, 2006, and provisions of the Companies Act, 1956, to the extent applicable, as adopted consistently by the company. The Financial Statements have been prepared in indian rupees.

Note : 2

The Financial statements for the year ended March 31, 2014 had been prepared as per the then applicable, pre-revised schedules VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31 March, 2014 are prepared as per Revised Schedule VI. Accordingly, the previous year figure have also been reclassified to confirm to this year''s classification. Such reclassification of previous year figure does not impact recognition and measurement principles followd for preparation of financial statements.

Note : 3

NOTES ON ACCOUNTS

3.1 Accounting estimate:

The preparation of financial statements in conformity with the generally accepted accounting principles in india (Indian GAAP) requires management to make estimates and assumptions that effect the reported amounts of Asset and liabilities and the discloure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is prospectively recognized in current and future periods.

3.2 Fixed Assets:

Fixed assets existing as on 31.03.1993 have been revalued as per the report of Government Approved Valuer. The revalued assets are stated at the revalued figure less accumulated depreciation calculated on the revalued figure for the year ended on 31.03.1993 and subsequent year. The assets acquried after 31.03.1993 are stated at the cost of acquisiion including incidental expenses related to acquisition & installation less accumulated depreciation except for lease hold land.

3.3 Depreciation:

Depreciation on fixed assets is provided on straight line method at the rates prescribed in Schedule - XIV of the Companies Act, 1956 pro-rata for the period the assets has been put to use.

3.4 Impairment of Assets:

Pursuant to Accounting Standard (AS-28) - Impairment of Assets issued the Institute of Chartered Accountants of India, the carrying amounts of the Company''s assets including intangible assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amount is estimated, as higher of the net selling price and the value in use. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. If at the Balance Sheet date, there is indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is assessed at the recoverable amount subject to maximum of depreciable historical cost.

3.5 Earnings Per Share (''EPS'')

The basic EPS is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

3.6 Provision and Contingencies:

A provision is recognized when there is present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.

A discloure for a contingent liability is made when there is a possible or present obligation that may, but probably will not require an outflow of resource. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

3.7 Borrowing Costs:

Borrowing Costs are charged to Profit & Loss account except those which attributed to the acquisition or construction of qualifyling assets.

---

Mar 31, 2013

1.1 Accounting estimate:

The preparation of financial statements in conformity with the generally accepted accounting principles in india (Indian GAAP) requires management to make estimates and assumptions that effect the reported amounts of Asset and liabilities and the discloure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is prospectively recognized in current and future periods.

1.2 Fixed Assets:

Fixed assets existing as on 31.03.1993 have been revalued as per the report of Government Approved Valuer. The revalued assets are stated at the revalued figure less accumulated depreciation calculated on the revalued figure for the year ended on 31.03.1993 and subsequent year. The assets acquried after 31.03.1993 are stated at the cost of acquisiion including incidental expenses related to acquisition & installation less accumulated depreciation except for lease hold land.

1.3 Depreciation:

Depreciation on fixed assets is provided on straight line method at the rates prescribed in Schedule - XIV of the Companies Act, 1956 pro-rata for the period the assets has been put to use.

1.4 Impairment of Assets:

Pursuant to Accounting Standard (AS-28) - Impairment of Assets issued the Institute of Chartered Accountants of India, the carrying amounts of the Company''s assets including intangible assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amount is estimated, as higher of the net selling price and the value in use. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. If at the Balance Sheet date, there is indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is assessed at the recoverable amount subject to maximum of depreciable historical cost.

1.5 Earnings Per Share (''EPS'')

The basic EPS is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

1.6 Provision and Contingencies:

A provision is recognized when there is present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.

A discloure for a contingent liability is made when there is a possible or present obligation that may, but probably will not require an outflow of resource. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.7 Borrowing Costs:

Borrowing Costs are charged to Statement of Profit & Loss except those which attributed to the acquisition or construction of qualifyling assets.

---

Mar 31, 2012

1.1 Accounting estimate:

The preparation of financial statements in conformity with the generally accepted accounting principles in India (Indian GAAP) requires management to make estimates and assumptions that effect the reported amounts of Asset and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is prospectively recognized in current and future periods.

1.2 Fixed Assets:

Fixed assets existing as on 31.03.1993 have been revalued as per the report of Government Approved Valuer. The revalued assets are stated at the revalued figure less accumulated depreciation calculated on the revalued figure for the year ended on 31.03.1993 and subsequent year. The assets acquired after 31.03.1993 are stated at the cost of acquisition including incidental expenses related to acquisition & installation less accumulated depreciation except for lease hold land.

1.3 Depreciation:

Depreciation on fixed assets is provided on straight line method at the rates prescribed in Schedule - XIV of the Companies Act, 1956 pro-rata for the period the assets has been put to use.

1.4 Impairment of Assets:

Pursuant to Accounting Standard (AS-28) - Impairment of Assets issued the Institute of Chartered Accountants of India, the carrying amounts of the Company's assets including intangible assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amount is estimated, as higher of the net selling price and the value in use. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. If at the Balance Sheet date, there is indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is assessed at the recoverable amount subject to maximum of depreciable historical cost.

1.5 Earnings Per Share ('EPS')

The basic EPS is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

1.6 Provision and Contingencies:

A provision is recognized when there is present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. A discloure for a contingent liability is made when there is a possible or present obligation that may, but probably will not require an outflow of resource. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.7 Borrowing Costs:

Borrowing Costs are charged to Profit & Loss account except those which attributed to the acquisition or construction of qualifyling assets.

---

Mar 31, 2011

The accounts are prepared and presented in accordance with the Generally Accepted accounting Principles and are in line with the relevant laws as well as the guidelines prescribed by the Department of Company Affairs, Ministry of Industry and Accounting Standards ("AS") issued by the Institute of Chartered Accountants of India ('ICAI') and notified by the Companies Accounting Standard Rules, 2006 to the extend applicable.

1.1 Basis of Accounting : The financial statements are prepared under the historical cost convetion. The company follows the mercantile system of accounting and recognizes income and expenditure on the accrual basis except those with significant uncertainities.

1.2 Accounting estimate : The preparation of financial statements in conformity with the generally accepted accounting principles in India (Indian GAAP) requires management to make estimate and assumptions that effect the reported amounts of Asset and liabilities and the disclosure of contingent liablities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is prospectively recognized in current and future periods.

1.3 Fixed Asstes : Fixed assets existing as on 31.03.1993 have been revalued as per the report of government approved valuer. The revalued assets are stated at the revalued figure less accumulated depreciation calculated on the revalued figure for the year ended on 31.03.1993 and subsequent year. The assets acquried after 31.03.1993 are stated at the cost of acquisiion including incicdental expenses related to acuisition & installation less accumulated depreciation except for free hold land.

1.4 Depreciation : Depreciation on fixed assets is provided on straight line method at the rates prescribed in Schedule - XIV of the Companies Act, 1956 pro-rata for the period the assets has been put to use.

1.5 Investments : Investments that are readily realizable and intended to be held for not more than twelve months are classified as current investments. All other investments are classified as long term investments.

Long term investments are stated at cost less any other non temporary diminution in value, determined separately for each individual investment. Current investments are carried at lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investments.

1.6 Impairment of Assets : Pursuant to Accounting Standard (AS-28) - Impairment of Assets issued the Institute of Chartered Accountants of India, the carrying amounts of the Company's assets including intangible assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amount is estimated, as higher of the net selling price and the value in use. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. If at the Balance Sheet date, there is indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is assessed at the recoverable amount subject to maximum of depreciable historical cost.

1.7 Earnings Share ('EPS') : The basic EPS is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

1.8 Provision and Contingencies : A provision is recognized when there is present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.

A disclosure for a contingent liability is made when there is a possible or present obligation that may, but probably will not require an outflow of resource. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.9 Borrowing Costs : Borrowing Costs are charged to Profit & Loss Account except those which attributed to the acquisition or construction of qualifying assets.

---

Mar 31, 2010

The accounts are prepared in accordance with the accounting principles generally accepted in India and are in line with the relevant Laws as well as the guidelines prescribed by the department ol Company affairs, Ministry of Industry and the Institute of Chartered Accountants of India :

i) Basis of Accounting

The financial statements are prepared under the historical coat convetion on accrual basis.

ii) Fixed Asstes

Fixed assets existing as on 31.03.1993 have been revalued as per the report of government approved valuer. The revalued assets are stated at the revalued figure less accumulated depreciation calculated on the revalued figure for the year ended on 31.03.1993 and subsequent year. The assets acquried after 31.03.1993 are stated at the cost of acquisiion including incicdental expenses related to acuisition S installation less accumulated depreciation except for free hold land.

iii) Depreciation

Depreciation on fixed assets is provided on straight line method at the rates prescribed in Schedule - XIV of the Companies Act, 1956 pro-rata for the period the assets has been put to use.

iv) Investment

Investments are stated at cost.

v) Inventories

1. Inventories are valued at the lower of cost or net realisable value except [or a stock of Raw Material, Packing Material, Stores S Spares which are valued at cost.

2. No provision for Income Tax has been made in view of carried forward losses.