Accounting Policies of Lakshmi Engineering and Warehousing Ltd. Company

Mar 31, 2025

2C MATERIAL ACCOUNTING POLICIES

1 Revenue Recognition

Revenue is measured at the amount of consideration
which the Company expects to be entitled to in
exchange for transferring distinct goods or services
to a customer as specified in the contract, excluding
amounts collected on behalf of third parties (for
example taxes and duties collected on behalf of
the government). Consideration is generally due
upon satisfaction of performance obligations
and a receivable is recognised when it becomes
unconditional.

Sale of goods and services

Revenue is recognised when a promise in a
customer contract (performance obligation) has
been satisfied by transferring control over the
promised goods to the customer. Control over a
promised goods refers to the ability to direct the
use of, and obtain substantially all of the remaining
benefits from, those goods. Control is usually
transferred upon shipment, delivery to, upon
receipt of goods by the customer, in accordance
with the individual delivery and acceptance terms
agreed with the customers. The amount of revenue
to be recognised (transaction price) is based on the
consideration expected to be received in exchange
for goods, excluding amounts collected on behalf
of third parties such as Goods Services tax or other
taxes directly linked to sales.

Revenue from rendering of services is recognised
over time as and when the customer receives the
benefit of the Company’s performance and the
Company has an enforceable right to payment for
services transferred. Unbilled revenue represents
value of services performed in accordance with the
contract terms but not billed.

Interest income: 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 carrying amount on initial
recognition.

Government grants: Government grants (including
export incentives) are recognised only when there
is reasonable assurance that the Company will
comply with the conditions attaching to them and
the grants will be received.

Government grants are recognised in profit or loss
on a systematic basis over the periods in which the
Company recognises as expenses the related costs
for which the grants are intended to compensate.

The benefit of a government loan at a below market
rate of interest is treated as a government grant,
measured at the difference between proceeds
received and the fair value of the loan based on
prevailing market rates.

Property, plant and equipment

Land and buildings held for use in the production
or supply of goods or services, or for administrative
purposes, are stated at cost less accumulated
depreciation and accumulated impairment losses,
if any. Freehold land is not depreciated.

Property, plant and equipment are carried at cost
less accumulated depreciation and impairment
losses, if any. The cost of property, plant and
equipment comprises its purchase price/ acquisition
cost, net of any trade discounts and rebates, any
import duties and other taxes (other than those
subsequently recoverable from the tax authorities),
any directly attributable expenditure on making the
asset ready for its intended use, other incidental
expenses and interest on borrowings attributable
to acquisition of qualifying property, plant and
equipment up to the date the asset is ready for
its intended use. Machinery spares which can be
used only in connection with an item of Property,
plant and equipment and whose use is expected to
be irregular are capitalised and depreciated over
the useful life of the principal item of the relevant
assets. Subsequent expenditure on property, plant
and equipment after its purchase / completion
is capitalised only if such expenditure results
in an increase in the future benefits from such
asset beyond its previously assessed standard of
performance.

Depreciation on Property, plant and equipment
(other than freehold land) has been provided on
the straight-line method as per the useful life
prescribed in Schedule II to the Companies Act,
2013.

The estimated useful life of the tangible assets are
reviewed at the end of the each financial year and
the depreciation period is revised to reflect the
changed pattern, if any.

An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected to arise from
continued use of the asset. Any gain or loss
arising on the disposal or retirement of an item of
property, plant and equipment is determined as
the difference between the sales proceeds and the
carrying amount of the asset and is recognised in
the statement of profit and loss.

3 Investment property

Investment properties are properties held to earn
rentals and/or for capital appreciation (including
property under construction for such purposes).
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.

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 (calculated as the difference between the
net disposal proceeds and the carrying amount of
the asset) is included in profit or loss in the period
in which the property is derecognised.

Depreciation on investment properties (other than
land) has been provided on the straight-line method
as per the useful life prescribed in Schedule II to
the Companies Act, 2013.

4 Leases
As Lessor

Leases are classified as finance leases whenever
the terms of the lease transfer substantially all the
risks and rewards of ownership to the lessee. All
other leases are classified as operating leases.

In respect of finance leases,the company recognizes
a financial asset (net investment in lease) measured
at the present value of the lease rental receivables
that are not paid at the commencement date,
discounted using the Company’s incremental
borrowing rate. The Company subsequently
measures finance income over the lease term based
on a pattern reflecting a constant periodic rate of
return on the net investment in the lease.

Rental income and expense from operating leases
is generally recognised on a straight-line basis over

the term of the relevant lease. However, where the
rentals are structured solely to increase in line with
expected general inflation to compensate for the
lessor’s expected inflationary cost increases, such
increases are recognised in the year in which such
benefits accrue.

As Lessee

The Company’s leased asset classes primarily
consist of leases for buildings. The Company, at
the inception of a contract, assessess whether the
contract is a lease or not lease. A contract is, or
contains, a lease if the contract conveys the right
to control the use of an identified asset for a time
in exchange for a consideration. This policy has
been applied to contracts existing and entered into
on or after April 1, 2019.

The Company recognises a right-of-use asset and
a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost,
which comprises the initial amount of the lease
liability adjusted for any lease payments made at
or before the commencement date, plus any initial
direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to
restore the underlying asset or the site on which it
is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated
using the straight-line method from the
commencement date to the end of the lease term.

The lease liability is initially measured at the
present value of the lease payments that are not
paid at the commencement date, discounted using
the Company’s incremental borrowing rate. It is
remeasured when there is a change in future lease
payments arising from a change in an index or rate,
if there is a change in the Company’s estimate of
the amount expected to be payable under a residual
value guarantee, or if the Company changes its
assessment of whether it will exercise a purchase,
extension or termination option. When the lease

liability is remeasured in this way, a corresponding
adjustment is made to the carrying amount of the
right-of-use asset, or is recorded in profit or loss if
the carrying amount of the right-of-use asset has
been reduced to zero.

The Company has elected not to recognise right-of-
use assets and lease liabilities for short-term leases
that have a lease term of 12 months or less and
leases of low-value assets. The Company recognises
the lease payments associated with these leases as
an expense over the lease term.

In the comparative period, leases under which
the Company assumes substantially all the risks
and rewards of ownership are classified as finance
leases. When acquired, such assets are capitalized
at fair value or present value of the minimum lease
payments at the inception of the lease, whichever
is lower. Lease payments and receipts under
operating leases are recognised as an expense and
income respectively, on a straight line basis in the
statement of profit and loss over the lease term
except where the lease payments are structured
to increase in line with expected general inflation.

5 Inventories

Inventories are stated at the lower of cost or net
realisable value after providing for obsolescence
and other losses, where considered necessary. Cost
is determined using weighted average basis.

Cost comprises all costs of purchase including
duties and taxes (other than those subsequently
recoverable by the Company), freight inwards
and other expenditure directly attributable to
acquisition. Work-in-progress and finished goods
include appropriate proportion of overheads and,
where applicable, taxes, if any.

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.

Net realisable value represents the estimated
selling price for inventories less all estimated costs
of completion and costs necessary to make the
sale.

6 Impairment of tangible and intangible assets

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

If the recoverable amount of the assets are
estimated to be less than their carrying amounts,
the carrying amounts of those assets are reduced to
their recoverable amounts. Impairment losses are
recognised immediately in the Statement of Profit
and Loss. When impairment losses are subsequently
reversed, the carrying amount of those assets
are increased to their revised estimates of their
recoverable amounts, so that the increased carrying
amounts do not exceed the carrying amounts that
would have been determined had no impairment
losses recognised for those assets in prior years.
The reversal of impairment losses are recognised
immediately in the Statement of Profit and Loss.

7 Financial instruments

Financial assets and financial liabilities are
recognised when the Company becomes a party to
the contractual provisions of the instruments.

Financial assets and liabilities are initially
recognised at fair value. Transaction costs that
are directly attributable to financial assets and
liabilities [other than financial assets and liabilities
measured at Fair Value Through Profit and Loss
(FVTPL)] are added to or deducted from the

fair value of the financial assets or liabilities, as
appropriate on initial recognition. Transaction
costs directly attributable to acquisition of
financial assets or liabilities measured at FVTPL are
recognised immediately in the statement of profit
and loss.

a) Non-derivative Financial assets:

All regular way purchases or sales of financial assets
are recognised and derecognised on a trade date
basis. Regular way purchases or sales are purchases
or sales of financial assets that require delivery
of assets within the time frame established by
regulation or convention in the market place.

All recognised financial assets are subsequently
measured in their entirety at either amortised cost
or fair value, depending on the classification of the
financial assets.

Financial assets at amortised cost

A financial asset is measured at amortised cost if
both of the following conditions are met:

a) the financial asset is held within a business
model whose objective is to hold financial assets in
order to collect contractual cash flows; and

b) the contractual terms of the financial asset give
rise on specified dates to cash flows that are Solely
Payments of Principal and Interest (SPPI) on the
principal amount outstanding.

Financial assets measured at Fair Value through
Other Comprehensive Income (FVTOCI)

A financial asset is measured at amortised cost if
both of the following conditions are met:

a) the financial asset is held within a business model
whose objective is achieved by both collecting cash
flows and selling financial assets.; and

b) the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the
principal amount outstanding.

All other financial assets are measured at fair value
through profit or loss.

Effective interest method:

The rate that exactly discounts estimated future
cash payments or receipts through the expected
life of the financial asset or financial liability to the
gross carrying amount of a financial asset or to the
amortised cost of a financial liability.

Impairment of 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 115, the Company always measures the loss
allowance at an amount equal to life time expected
credit losses.

b) Derecognition of financial assets:

A financial asset is derecognised only when the:

- Company has transferred the rights to receive
cash flows from the financial asset; or

- retains the contractual rights to receive the

cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one
or more recipients.

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

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

c) Foreign exchange gains and losses:

The fair value of financial assets denominated in
a foreign currency is determined in that foreign
currency and translated at the spot rate at the end
of each reporting period.

For foreign currency denominated financial assets
measured at amortised cost and FVTPL, the
exchange differences are recognised in Statement
of Profit and Loss.

d) Financial liabilities:

Initial recognition and measurement

Financial liabilities are recognised when, and
only when, the Company becomes a party to the
contractual provisions of the financial instrument.
The Company determines the classification of its
financial liabilities at initial recognition.

Subsequent measurement

After initial recognition, financial liabilities that
are not carried at fair value through the Statement

of Profit and Loss are subsequently measured at
amortised cost using the effective interest method.
Gains and losses are recognised in the Statement of
Profit and Loss when the liabilities are derecognised
and through the amortisation process.

Derecognition of financial liabilities

The Company derecognises financial liabilities
when, and only when, the Company’s obligations are
discharged, cancelled or have expired. An exchange
between with a lender of debt instruments with
substantially different terms is accounted for as
an extinguishment of the original financial liability
and the recognition of a new financial liability.

8 Segment reporting

Operating segments are reported in the manner
consistent with the internal reporting to the Chief
Operating Decision Maker (CODM) as per Ind AS
108. The Company is reported at an overall level,
and hence there are two reportable segments
viz., “Warehousing Rental Services” and “
Engineering Services”. Geographic information is
based on business sources from that geographic
region. Accordingly the geographical segments
are determined as Domestic ie., within India and
External ie., Outside India.

9 Employee Benefits

The Company participates in various employee
benefit plans. The employment benefits are
classified as either defined contribution plans or
defined benefit plans. Under a defined contribution
plan, the Company’s only obligation is to pay a
fixed amount with no obligation to pay further
contributions. The expenditure for defined
contribution plans is recognized as expense during
the period when the employee provides service.
Under a defined benefit plan, it is the Company’s
obligation to provide agreed benefits to the
employees. The related actuarial risks fall on the
Company. The present value of the defined benefit
obligations is calculated using the projected unit
credit method.

Short-term employee benefits

All short-term employee benefits such as salaries,
wages, bonus, and other benefits which fall within
12 months of the period in which the employee
renders related services which entitles them to avail
such benefits and non-accumulating compensated
absences are recognised on an undiscounted basis
and charged to the statement of profit and loss.

A liability is recognised for benefits accruing to
employees in respect of wages and salaries in
the period the related service is rendered at the
undiscounted amount of the benefits expected to
be paid in exchange for that service.

Defined contribution plan

The Company’s contribution to provident fund and
employee state insurance scheme are considered
as defined contribution plans and are charged as
an expense based on the amount of contribution
required to be made and when services are
rendered by the employees.

Defined benefit plan

In accordance with the Payment of Gratuity Act,
1972, the Company provides for a lump sum
payment to eligible employees, at retirement or
termination of employment based on the last drawn
salary and years of employment with the Company.
The gratuity liability is funded. The Company’s
obligation in respect of the gratuity plan, which
is a defined benefit plan, is provided for based on
actuarial valuation using the projected unit credit
method. Actuarial gains or losses are recognized
in other comprehensive income. Further, the
profit or loss does not include an expected return
on plan assets. Instead net interest recognized
in profit or loss is calculated by applying the
discount rate used to measure the defined benefit
obligation to the net defined benefit liability or
asset. The actual return on the plan assets above
or below the discount rate is recognized as part
of re-measurement of net defined liability or asset
through other comprehensive income.

Remeasurement, comprising actuarial gains and
losses is reflected immediately in the balance
sheet with charge or credit recognised in other
comprehensive income in the period in which
they occur. Remeasurement recognised in other
comprehensive income is reflected in retained
earnings and is not reclassified to the statement of
profit and loss.

Other long term employee benefits

The liabilities for earned leave are not expected to
be settled wholly within 12 months after the end
of the period in which the employees render the
related service. They are therefore measured as
the present value of the expected future payments
to be made in respect of services provided by
employee upto the end of reporting period using
the projected unit credit method. The benefits are
discounted using the market yields at the end of the
reporting period that have terms approximating to
the terms of the related obligation. Measurements
as a result of experience adjustments and changes
in actuarial assumptions are recognized in profit or
loss.

The obligations are presented as current liabilities
in the balance sheet if the entity does not have
an unconditional right to defer settlement for at
least twelve months after the reporting period,
regardless of when the actual settlement is
expected to occur.

Accumulated leave, which is expected to be utilized
within the next 12 months, is treated as short-term
employee benefit. The Company measures the
expected cost of such absences as the additional
amount that it expects to pay as a result of the
unused entitlement that has accumulated at the
reporting date.

2D OTHER ACCOUNTING POLICIES

1 Foreign Currencies

In preparing the financial statements of the
Company, transactions in currencies other than the

entity’s functional currency (foreign currencies)
are recognized at the rates of exchange prevailing
at the date of the transaction. At the end of each
reporting period, monetary items denominated in
foreign currencies are retranslated at the rates
prevailing at that date.

Exchange differences on monetary items are
recognised in the statement of profit and loss in
the period in which they arise except for exchange
differences on transactions designated as fair value
hedge.

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).

Borrowing costs

General and specific borrowing costs that
are directly attributable to the acquisition,
construction or production of a qualifying asset
are capitalised during the period of time that is
required to complete and prepare the asset for its
intended use or sale. Qualifying assets are assets
that necessarily take a substantial period of time to
get ready for their intended use or sale. Investment
income earned on the temporary investment of
specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing
costs eligible for capitalisation.

All other borrowing costs are recognised in profit or
loss in the period in which they are incurred.

3 Taxation

Income tax expense represents the sum of the tax
currently payable and deferred tax.

a) Current tax: Current tax is the amount of tax
payable on the taxable income for the year as
determined in accordance with the applicable tax
rates and the provisions of the Income Tax Act,
1961 and other applicable tax laws.

b) Deferred tax: Deferred tax is recognized
using the balance sheet approach. Deferred tax
assets and liabilities are recognised on temporary
differences between the carrying amounts of assets
and liabilities in the financial statements and the
corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences.

Deferred tax assets are generally recognised for
all deductible temporary differences to the extent
that it is probable that taxable profits will be
available against which those deductible temporary
differences can be utilised.

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

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

The measurement of deferred tax liabilities and
assets reflects the tax consequences that would
follow from the manner in which the Company
expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets
and liabilities.

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Mar 31, 2024

2C MATERIAL ACCOUNTING POLICIES

1 Revenue Recognition

Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for transferring distinct goods or services to a customer as specified in the contract, excluding amounts collected on behalf of third parties (for example taxes and duties collected on behalf of the government). Consideration is generally due upon satisfaction of performance obligations and a receivable is recognised when it becomes unconditional.

Sale of goods and services

Revenue is recognised when a promise in a customer contract (performance obligation) has been satisfied by transferring control over the promised goods to the customer. Control over a promised goods refers to the ability to direct the

use of, and obtain substantially all of the remaining benefits from, those goods. Control is usually transferred upon shipment, delivery to, upon receipt of goods by the customer, in accordance with the individual delivery and acceptance terms agreed with the customers. The amount of revenue to be recognised (transaction price) is based on the consideration expected to be received in exchange for goods, excluding amounts collected on behalf of third parties such as Goods Services tax or other taxes directly linked to sales.

Revenue from rendering of services is recognised over time as and when the customer receives the benefit of the Company’s performance and the Company has an enforceable right to payment for services transferred. Unbilled revenue represents value of services performed in accordance with the contract terms but not billed.

Interest income: 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 carrying amount on initial recognition.

Government grants: Government grants (including export incentives) are recognised only when there is reasonable assurance that the Company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises as expenses the related costs for which the grants are intended to compensate.

The benefit of a government loan at a below market rate of interest is treated as a government grant, measured at the difference between proceeds

received and the fair value of the loan based on prevailing market rates.

2 Property, plant and equipment

Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Freehold land is not depreciated.

Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses, if any. The cost of property, plant and equipment comprises its purchase price/ acquisition cost, net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying property, plant and equipment up to the date the asset is ready for its intended use. Machinery spares which can be used only in connection with an item of Property, plant and equipment and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure on property, plant and equipment after its purchase / completion is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Depreciation on Property, plant and equipment (other than freehold land) has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

The estimated useful life of the tangible assets are reviewed at the end of the each financial year and the depreciation period is revised to reflect the changed pattern, if any.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the statement of profit and loss.

3 Investment property

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). 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.

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 (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognised.

Depreciation on investment properties (other than land) has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

4 Leases As Lessor

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

In respect of finance leases,the company recognizes a financial asset (net investment in lease) measured

at the present value of the lease rental receivables that are not paid at the commencement date, discounted using the Company’s incremental borrowing rate. The Company subsequently measures finance income over the lease term based on a pattern reflecting a constant periodic rate of return on the net investment in the lease.

Rental income and expense from operating leases is generally recognised on a straight-line basis over the term of the relevant lease. However, where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue.

As Lessee

The Company’s leased asset classes primarily consist of leases for buildings. The Company, at the inception of a contract, assessess whether the contract is a lease or not lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a time in exchange for a consideration. This policy has been applied to contracts existing and entered into on or after April 1, 2019.

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using

the Company’s incremental borrowing rate. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Company recognises the lease payments associated with these leases as an expense over the lease term.

In the comparative period, leases under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. When acquired, such assets are capitalized at fair value or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments and receipts under operating leases are recognised as an expense and income respectively, on a straight line basis in the statement of profit and loss over the lease term except where the lease payments are structured to increase in line with expected general inflation.

5 Inventories

Inventories are stated at the lower of cost or net realisable value after providing for obsolescence and other losses, where considered necessary. Cost is determined using weighted average basis.

Cost comprises all costs of purchase including duties and taxes (other than those subsequently recoverable by the Company), freight inwards and other expenditure directly attributable to acquisition. Work-in-progress and finished goods

include appropriate proportion of overheads and, where applicable, taxes, if any.

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.

Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

6 Impairment of tangible and intangible assets

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

If the recoverable amount of the assets are estimated to be less than their carrying amounts, the carrying amounts of those assets are reduced to their recoverable amounts. Impairment losses are recognised immediately in the Statement of Profit and Loss. When impairment losses are subsequently reversed, the carrying amount of those assets are increased to their revised estimates of their recoverable amounts, so that the increased carrying amounts do not exceed the carrying amounts that would have been determined had no impairment losses recognised for those assets in prior years. The reversal of impairment losses are recognised immediately in the Statement of Profit and Loss.

7 Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to

the contractual provisions of the instruments.

Financial assets and liabilities are initially recognised at fair value. Transaction costs that are directly attributable to financial assets and liabilities [other than financial assets and liabilities measured at Fair Value Through Profit and Loss (FVTPL)] are added to or deducted from the fair value of the financial assets or liabilities, as appropriate on initial recognition. Transaction costs directly attributable to acquisition of financial assets or liabilities measured at FVTPL are recognised immediately in the statement of profit and loss.

a) Non-derivative Financial assets:

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

Financial assets at amortised cost

A financial asset is measured at amortised cost if both of the following conditions are met:

a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

b) the contractual terms of the financial asset give rise on specified dates to cash flows that are Solely Payments of Principal and Interest (SPPI) on the principal amount outstanding.

Financial assets measured at Fair Value through Other Comprehensive Income (FVTOCI)

A financial asset is measured at amortised cost if both of the following conditions are met:

a) the financial asset is held within a business model whose objective is achieved by both collecting cash flows and selling financial assets.; and

b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

All other financial assets are measured at fair value through profit or loss.

Effective interest method:

The rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the amortised cost of a financial liability.

Impairment of 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 115, the Company always measures the loss allowance at an amount equal to life time expected credit losses.

b) Derecognition of financial assets:

A financial asset is derecognised only when the:

- Company has transferred the rights to receive cash flows from the financial asset; or

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

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

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

c) Foreign exchange gains and losses:

The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period.

For foreign currency denominated financial assets measured at amortised cost and FVTPL, the exchange differences are recognised in Statement of Profit and Loss.

d) Financial liabilities:

Initial recognition and measurement

Financial liabilities are recognised when, and only when, the Company becomes a party to the contractual provisions of the financial instrument.

The Company determines the classification of its financial liabilities at initial recognition.

Subsequent measurement

After initial recognition, financial liabilities that are not carried at fair value through the Statement of Profit and Loss are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in the Statement of Profit and Loss when the liabilities are derecognised and through the amortisation process.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. An exchange between with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.

8 Segment reporting

Operating segments are reported in the manner consistent with the internal reporting to the Chief Operating Decision Maker (CODM) as per Ind AS 108. The Company is reported at an overall level, and hence there are two reportable segments viz., “Warehousing Rental Services” and “ Engineering Services”. Geographic information is based on business sources from that geographic region. Accordingly the geographical segments are determined as Domestic ie., within India and External ie., Outside India.

9 Employee Benefits

The Company participates in various employee benefit plans. The employment benefits are classified as either defined contribution plans or defined benefit plans. Under a defined contribution plan, the Company’s only obligation is to pay a fixed amount with no obligation to pay further contributions. The expenditure for defined contribution plans is recognized as expense during the period when the employee provides service.

Under a defined benefit plan, it is the Company’s obligation to provide agreed benefits to the employees. The related actuarial risks fall on the Company. The present value of the defined benefit obligations is calculated using the projected unit credit method.

Short-term employee benefits

All short-term employee benefits such as salaries, wages, bonus, and other benefits which fall within 12 months of the period in which the employee renders related services which entitles them to avail such benefits and non-accumulating compensated absences are recognised on an undiscounted basis and charged to the statement of profit and loss.

A liability is recognised for benefits accruing to employees in respect of wages and salaries in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

Defined contribution plan

The Company’s contribution to provident fund and employee state insurance scheme are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Defined benefit plan

In accordance with the Payment of Gratuity Act, 1972, the Company provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. The gratuity liability is funded. The Company’s obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation using the projected unit credit method. Actuarial gains or losses are recognized in other comprehensive income. Further, the profit or loss does not include an expected return on plan assets. Instead net interest recognized

in profit or loss is calculated by applying the discount rate used to measure the defined benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below the discount rate is recognized as part of re-measurement of net defined liability or asset through other comprehensive income.

Remeasurement, comprising actuarial gains and losses is reflected immediately in the balance sheet with charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected in retained earnings and is not reclassified to the statement of profit and loss.

Other long term employee benefits

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of the expected future payments to be made in respect of services provided by employee upto the end of reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Measurements as a result of experience adjustments and changes in actuarial assumptions are recognized in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the

unused entitlement that has accumulated at the reporting date.

2D OTHER ACCOUNTING POLICIES

1 Foreign Currencies

In preparing the financial statements of the Company, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date.

Exchange differences on monetary items are recognised in the statement of profit and loss in the period in which they arise except for exchange differences on transactions designated as fair value hedge.

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).

2 Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to

get ready for their intended use or sale. investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

3 Taxation

income tax expense represents the sum of the tax currently payable and deferred tax.

a) Current tax: Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the income Tax Act, 1961 and other applicable tax laws.

b) Deferred tax: Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences.

Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

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

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

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

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Mar 31, 2015

1. Method of Accounting :

The financial statements have been prepared under the historical cost convention on an accrual basis and in accordance with the Accounting Principles generally accepted in India (Indian GAAP) and comply with mandatory Accounting Standards notified by the Central Government of India under the Companies (Accounting Standards) Rules, 2006 (as amended) and the guidelines issued by the Securities and Exchange Board of India (SEBI) and the relevant provisions of the Companies Act, 2013 to the extent applicable.

2. Fixed Assets :

Fixed Assets are stated at cost inclusive of expenses in connection with acquisition of the assets and net of cenvat credit / value added tax including appropriate direct and allocated expenses less accumulated depreciation and impairment losses, if any.

3. Investments :

The Investments are accounted at cost. Diminution in the value of Investments if any, in respect of long term Investments is recognized.

4. Valuation of Inventories :

Inventories are valued at lower of cost and net realizable value after providing for obsolescence where necessary. Cost is determined on weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5. Transalation of Foreign Currency Transactions :

Foreign currency transactions are recorded at the prevailing exchange rates at the time of initial recognition. Exchange differences arising on final settlement are adjusted and recognized as income or expense in the statement of profit and loss. Outstanding balances of monetary items denominated in foreign currency are restated at closing exchange rates and the difference adjusted as income or expense in the statement of profit and loss.

The premium or discount arising at the inception of forward exchange contracts is accounted as income or expense over the life of contract. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense in the period in which they arise.

6. Depreciation :

i) Depreciation on Fixed Assets for the year has been provided in accordance with Schedule II of the Companies Act, 2013. For additions and deletions depreciation is provided on pro-rata basis.

ii) Payments towards Technical Know-how have been classified under Fixed Assets and has been appropriately depreciated.

7. Recognition of Revenue :

Income and Expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from sale transaction is recognized as and when significant risks and rewards attached to ownership in the goods is transferred to the buyer. Revenue from service transactions is recognized when invoiced / upon completion of work based on confirmed contracts. Dividend from Investments and Export Incentives under Duty drawback scheme are recognized when the right to receive payment / credit is established and no significant uncertainty as to measurability or collectability exists.

8. Borrowing cost :

Borrowing costs, if any, attributable to acquisition / construction of qualifying assets are capitalized and included in the cost of the asset, as appropriate.

9. Earnings per Share :

Basic Earnings per share is calculated by dividing the Net Profit after tax attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year.

10. Employee Benefits :

Provision for Gratuity and Leave encashment are made as per actuarial valuation at the end of the year as per AS15 (revised) of The Institute of Chartered Accountants of India.

11. Taxes on Income :

a) Current tax liability on income for the period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on the expected outcome of assessment / appeals.

b) Deferred tax is recognized on timing differences between the accounting Income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

c) Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future Income will be available against which such deferred tax assets can be realized.

12. Provisions, contingent liabilities and contingent assets :

Contingent liabilities are not recognized but are disclosed in the notes to financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

13. Cash Flow Statements :

Cash Flows are reported using the Indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. Cash and cash equivalents include cash on hand and balances with banks in current and deposit accounts with necessary disclosure of cash and cash equivalent balances that are not available for use by the company.

14. Impairment of Assets :

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine (i) the provision of impairment loss, if any, required or (ii) the reversal, if any, required of impairment loss recognized in previous periods. Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

15. Segment Reporting :

Business segments are identified on the basis of the nature of products / services, the risk-return profile of individual businesses, the organizational structure and the internal reporting system of the Company.

Segment revenue, segment expenses, segment assets and liabilities include those directly identifiable with the respective segments.

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Mar 31, 2014

1. Method of Accounting

The financial statements have been prepared under the historical cost convention on an accrual basis and in accordance with the Accounting Principles generally accepted in India (Indian GAAP) and comply with mandatory Accounting Standards notified by the Central Government of India under the Companies (Accounting Standard) Rules, 2006(as amended) and the guidelines issued by the Securities and Exchange Board of India (SEBI) and the relevant provisions of the Companies Act, 1956 to the extent applicable.

2. Fixed Assets

Fixed Assets are stated at cost inclusive of expenses in connection with acquisition of the assets and net of cenvat credit/value added tax including appropriate direct and allocated expenses less accumulated depreciation and impairment losses, if any.

3. Investments

The Investments are accounted at cost. Diminution in the value of Investments if any, in respect of long term Investments is recognised.

4. Valuation of Inventories

Inventories are valued at lower of cost and net realizable value after providing for obsolescence where necessary. Cost is determined on weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5. Transalation of Foreign Currency Transactions

Foreign currency transactions are recorded at the prevailing exchange rates at the time of initial recognition. Exchange differences arising on final settlement are adjusted and recognized as income or expense in the statement of profit and loss. Outstanding balances of monetary items denominated in foreign currency are restated at closing exchange rates and the difference adjusted as income or expense in the statement of profit and loss. The premium or discount arising at the inception of forward exchange contracts is accounted as income or expense over the life of contract. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense in the period in which they arise.

6. Depreciation

i) Depreciation on Fixed Assets for the year has been provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956. For additions and deletions depreciation is provided on pro-rata basis. Items of Fixed Assets costing Rs.5,000/- and below is depreciated at the rate of 100%.

ii) Payments towards Technical Know-how have been classified under Fixed Assets and has been appropriately depreciated.

7. Recognition of Revenue

Income and Expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from sale transaction is recognized as and when significant risks and rewards attached to ownership in the goods is transferred to the buyer. Revenue from service transactions is recognized when invoiced/upon completion of work based on confirmed contracts. Dividend from Investments and Export Incentives under Duty drawback scheme are recognized when the right to receive payment/credit is established and no significant uncertainty as to measurability or collectability exists.

8. Borrowing cost

Borrowing costs, if any, attributable to acquisition/construction of qualifying assets are capitalized and included in the cost of the asset, as appropriate.

9. Earnings per Share

Basic Earnings per share is calculated by dividing the Net Profit after tax attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year.

10. Employee Benefits

Provision for Gratuity and Leave encashment are made as per actuarial valuation at the end of the year as per AS 15 (revised) of The Institute of Chartered Accountants of India.

11. Taxes on Income

a. Current tax liability on income for the period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act,1961 and based on the expected outcome of assessment/appeals.

b. Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

c. Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future income will be available against which such deferred tax assets can be realised.

12. Provisions, contingent liabilities and contingent assets

Contingent liabilities are not recognized but are disclosed in the notes to financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.

13. Cash Flow Statements

Cash Flows are reported using the Indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. Cash and cash equivalents include cash on hand and balances with banks in current and deposit accounts with necessary disclosure of cash and cash equivalent balances that are not available for use by the company.

14. Impairment of Assets

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine

(i) the provision for impairment loss, if any, required or.

(ii) the reversal, if any, required of impairment loss recognized in previous periods. Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

15. Segment Reporting

Business segments are identified on the basis of the nature of products /services, the risk- return profile of individual businesses, the organizational structure and the internal reporting system of the Company.

Segment revenue, segment expenses, segment assets and liabilities include those directly identifiable with the respective segments.

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Mar 31, 2013

1. Method of Accounting :

The financial statements have been prepared under the historical cost convention on an accrual basis and in accordance with the Accounting Principles generally accepted in India (Indian GAAP) and comply with • mandatory Accounting Standards notified by the Central Government of India under the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

2. Fixed Assets:

Fixed Assets are stated at cost inclusive of expenses in connection with acquisition of the assets and net of cenvat credit / value added tax including appropriate direct and allocated expenses less accumulated depreciation and impairment losses, if any.

3. Investments :

The investments are accounted at cost. Diminution in the value of Investments if any, in respect of long term Investments is recognised.

4. Valuation of Inventories :

Inventories are valued at lower of cost and net realizable value after providing for obsolescence where necessary. Cost is determined on weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5. Transalation of Foreign Currency Transactions :

Foreign currency transactions are recorded at the prevailing exchange rates at the time of initial recognition. Exchange differences arising on final settlement are adjusted and recognized as income or expense in the statement of profit and loss. Outstanding balances of monetary items denominated in foreign currency are restated at closing exchange rates and the difference adjusted as income or expense in the statement of profit and loss. The premium or discount arising at the inception of forward exchange contracts is accounted as income or expense over the life of contract. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense in the period in which they arise.

6. Depreciation :

i) Depreciation on Fixed Assets for the year has been provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956. For additions and deletions depreciation is provided on pro-rata basis. Items of Fixed Assets costing Rs.5,000/- and below is depreciated at the rate of 100%.

ii) Payments towards Technical Know-how have been classified under Fixed Assets and has been appropriately depreciated.

7. Recognition of Revenue:

Income and Expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from sale transaction is recognized as and when significant risks and rewards attached to ownership in the goods is transferred to the buyer. Revenue from service transactions is recognized when invoiced / upon completion of work based on confirmed contracts. Dividend from Investments and Export Incentives under Duty drawback scheme are recognized when the right to receive payment / credit is established and no significant uncertainty as to measurability or collectability exists.

8. Borrowing cost:

Borrowing costs, if any, attributable to acquisition / construction of qualifying assets are capitalized and included in the cost of the asset, as appropriate.

9. Earnings per Share :

Basic Earnings per share is calculated by dividing the Net Profit after tax attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year.

10. Employee Benefits:

Provision for Gratuity and Leave encashment are made as per actuarial valuation at the end of the year as per AS 15 (revised) of The Institute of Chartered Accountants of India.

11. Taxes on Income :

a. Current tax liability on income for the period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on the expected outcome of assessment / appeals.

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

c. Deferred tax assets are recognised and carried forward to the extent that there is reasonable certainty that sufficient future income will be available against which such deferred tax assets can be realised.

12. Provisions, contingent liabilities and contingent assets :

Contingent liabilities are not recognized but are disclosed in the notes to financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

13. Cash Flow Statements :

Cash Flows are reported using the Indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. Cash and cash equivalents include cash on hand and balances with banks in current and deposit accounts with necessary disclosure of cash and cash equivalent balances that are not available for use by the company.

14. Impairment of Assets :

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

(i) the provision for impairment loss, if any, required or

(ii) the reversal, if any, required of impairment loss recognised in previous periods. Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.

15. Segment Reporting :

Business segments are identified on the basis of the nature of products / services, the risk-return profile of individual businesses, the organizational structure and the internal reporting system of the Company.

Segment revenue, segment expenses, segment assets and liabilities include those directly identifiable with the respective segments.

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Mar 31, 2012

1. Method of Accounting :

The financial statements have been prepared under the historical cost convention on an accrual basis and in accordance with the Accounting Principles generally accepted in India (Indian GAAP) and comply with mandatory Accounting Standards notified by the Central Government of India under the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

2. Fixed Assets :

Fixed Assets are stated at cost inclusive of expenses in connection with acquisition of the assets and net of cenvat credit / value added tax including appropriate direct and allocated expenses less accumulated depreciation and impairment losses, if any.

3. Investments :

The investments are accounted at cost. Diminution in the value of Investments if any, in respect of long term Investments is recognised.

4. Valuation of Inventories :

Inventories are valued at lower of cost and net realizable value after providing for obsolescence where necessary. Cost is determined on weighted average basis.Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5. Transalation of Foreign Currency Transactions :

Foreign currency transactions are recorded at the prevailing exchange rates at the time of initial recognition. Exchange differences arising on final settlement are adjusted and recognized as income or expense in the statement of profit and loss. Outstanding balances of monetary items denominated in foreign currency are restated at closing exchange rates and the difference adjusted as income or expense in the statement of profit and loss.

The premium or discount arising at the inception of forward exchange contracts is accounted as income or expense over the life of contract. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense in the period in which they arise.

6. Depreciation :

i) Depreciation on Fixed Assets for the year has been provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956. For additions and deletions depreciation is provided on pro-rata basis. Items of Fixed Assets costing Rs.5,000/- and below is depreciated at the rate of 100%.

ii) Payments towards Technical Know-how have been classified under Fixed Assets and has been appropriately depreciated.

7. Recognition of Revenue :

Income and Expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from sale transaction is recognized as and when significant risks and rewards attached to ownership in the goods is transferred to the buyer. Revenue from service transactions is recognized when invoiced / upon completion of work based on confirmed contracts. Dividend from Investments and Export Incentives under Duty drawback scheme are recognized when the right to receive payment / credit is established and no significant uncertainty as to measurability or collectability exists.

8. Borrowing cost :

Borrowing costs, if any, attributable to acquisition /construction of qualifying assets are capitalized and included in the cost of the asset, as appropriate.

9 Earnings per Share :

Basic Earnings per share is calculated by dividing the Net Profit after tax attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year.

10. Employee Benefits :

Provision for gratuity and Leave encashment are made as per actuarial valuation at the end of the year as per AS15 (revised) of The Institute of Chartered Accountants of India.

11. Taxes on Income :

a. Current tax liability on income for the period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act,1961 and based on the expected outcome of assessment / appeals.

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

c. Deferred tax assets are recognised and carried forward to the extent that there is reasonable certainty that sufficient future income will be available against which such deferred tax assets can be realised.

12. Provisions, contingent liabilities and contingent assets :

Contingent liabilities are not recognized but are disclosed in the notes to financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

13. Cash Flow Statements :

Cash Flows are reported using the Indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. Cash and cash equivalents include cash on hand and balances with banks in current and deposit accounts with necessary disclosure of cash and cash equivalent balances that are not available for use by the company.

14. Impairment of assets :

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

(i) the provision for impairment loss, if any, required or (ii) the reversal, if any, required of impairment loss recognised in previous periods. Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.

15. Segment Reporting :

Business segments are identified on the basis of the nature of products / services, the risk-return profile of individual businesses, the organizational structure and the internal reporting system of the Company.

Segment revenue, segment expenses, segment assets and liabilities include those directly identifiable with the respective segments.

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Mar 31, 2011

1. Method of Accounting :

The financial statements have been prepared under the historical cost convention on an accrual basis and in accordance with the Accounting Principles generally accepted in India (Indian GAAP) and comply with mandatory Accounting Standards notified by the Central Government of India under the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

2. Fixed Assets :

Fixed Assets are stated at cost inclusive of expenses in connection with acquisition of the assets and net of cenvat credit/value added tax including appropriate direct and allocated expenses less accumulated depreciation and impairment losses, if any.

3. Investments :

The Investments are accounted at cost. Diminution in the value of Investments if any, in respect of long term Investments is recognised.

4. Valuation of Inventories :

Inventories are valued at lower of cost and net realizable value after providing for obsolescence where necessary. Cost is determined on weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5. Transalation of Foreign Currency Transactions :

Foreign currency transactions are recorded at the prevailing exchange rates at the time of initial recognition. Exchange differences arising on final settlement are adjusted and recognised as income or expense in the profit and loss account. Outstanding balances of monetary items denominated in foreign currency are restated at closing exchange rates and the difference adjusted as income or expense in the profit and loss account.

The premium or discount arising at the inception of forward exchange contracts is accounted as income or expense over the life of contract. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognised as income or as expense in the period in which they arise.

6. Depreciation :

i) Depreciation on Fixed Assets for the year has been provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956. For additions and deletions depreciation is provided on pro-rata basis. Items of Fixed Assets costing Rs.5,000/- and below is depreciated at the rate of 100%.

ii) Payments towards Technical Know-how have been classified under Fixed Assets and has been appropriately depreciated.

7. Recognition of Revenue :

Income and Expenditure are recognised and accounted on accrual basis as and when they are earned or incurred. Revenue from sale transaction is recognised as and when significant risks and rewards attached to ownership in the goods is transferred to the buyer. Revenue from service transactions is recognised when invoiced / upon completion of work based on confirmed contracts. Dividend from Investments and Export Incentives under duty draw back scheme are recognised when the right to receive payment/credit is established and no significant uncertainty as to measurability or collectability exists.

8. Borrowing cost :

Borrowing costs, if any, attributable to acquisition/construction of qualifying assets are capitalized and included in the cost of the asset, as appropriate.

9. Earnings per Share :

Basic Earnings per share is calculated by dividing the Net Profit after tax attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year.

10. Employee Benefits :

Provision for Gratuity and Leave encashment are made as per actuarial valuation at the end of the year as per AS15 (revised) of The Institute of Chartered Accountants of India.

11. Taxes on Income :

Current tax liability on income for the period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act,1961 and based on the expected outcome of assessment/appeals.

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

Deferred tax assets are recognised and carried forward to the extent that there is reasonable certainty that sufficient future income will be available against which such deferred tax assets can be realised.

12. Provisions, contingent liabilities and contingent assets :

Contingent liabilities are not recognised but are disclosed in the notes to financial statements. Contingent assets are neither recognised nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

13. Cash Flow Statements :

Cash Flows are reported using the Indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. Cash and cash equivalents include cash on hand and balances with banks in current and deposit accounts with necessary disclosure of cash and cash equivalent balances that are not available for use by the company.

14. Impairment of assets :

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine (i) the provision for impairment loss, if any, required or (ii) the reversal, if any, required of impairment loss recognised in previous periods. Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.

15. Segment Reporting :

Business segments are identified on the basis of the nature of products / services, the risk- return profile of individual businesses, the organizational structure and the internal reporting system of the Company.

Segment revenue, segment expenses, segment assets and liabilities include those directly identifiable with the respective segments.

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Mar 31, 2010

I. The company adopts accrual basis of accounting.

II. i. Depreciation on Fixed Assets for the year has been provided on straight line method in accordance with Schedule XIV of the Companies Act, 1956.

ii. Payments towards Technical Know-how have been classified under Fixed Assets and has been appropriately depreciated.

III. Fixed Assets are capitalised at cost inclusive of expenses in connection with acquisition of the assets and net of cenvat credit, if any.

IV. The Investments are accounted at cost. Diminution in the value of Investments if any,in respect of long term Investments is recognised.

V. Provision for Gratuity and Leave encashment was made as per actuarial valuation at the end of the year as per AS 15(Revised).

VI. The value of CENVAT benefits availed have been reduced from the purchase value of Materials and Capital Items wherever applicable.The payments under Rule 6(3)(b) of Cenvat Credit Rules, 2002 are added to purchase value of materials.

VII. The foreign currency transactions are recorded at the exchange rates prevailing on the date of such transaction. Foreign currency assets and liabilities at the year end are realigned at the exchange rate prevailing at the year end and the difference on realignment is recognised in the Profit and Loss Account.

VIII. Valuation of Inventories is as per Accounting Standard 2 (AS 2) of The Institute of Chartered Accountants of India.

IX. Current tax liability on income for the period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on the expected outcome of assessment/appeals.

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

Deferred tax assets are recognised and carried forward to the extent that there is reasonable certainty that sufficient future income will be available against which such deferred tax assets can be realised.

X. As at each balance sheet date ,the carrying amount of assets is tested for impairment so as to determine (i) the provision for impairment loss, if any,required or (ii) the reversal,if any, required of impairment loss recognised in previous periods. Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount.