Accounting Policies of Laxmipati Engineering Works Ltd. Company

Mar 31, 2025

NOTE 1: COMPANY OVERVIEW

Laxmipati Engineering Works Limited (“the Company”) is a listed company incorporated under the provisions of the Companies Act, 1956 on February 07, 2012 and has its registered address at Office Block First Floor Pl. No.237/2 & 3 Sub Pl.No .A-25, Central park, GIDC, Pandesara, Surat-394221. The Company is engaged in the business of fabrication, heavy engineering, engineering infrastructure and services and shut down maintenance projects.

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation of Financial Statements:

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013 read together with the Companies (Accounting Standards) Rules, 2021 and presentation requirements of Division I of Schedule III to the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention.

These financial statements have been prepared on a going concern basis.

2.2 Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised. The management believes that the estimates used in the preparation of the financial statements are prudent and reasonable.

2.3 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is treated as current when it is:

• expected to be realized or intended to be sold or consumed in normal operating cycle;

• held primarily for the purpose of trading;

• expected to be realized within twelve months after the reporting period; or

• cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• expected to be settled in normal operating cycle;

• held primarily for the purpose of trading;

• due to be settled within twelve months after the reporting period; or

• there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and deferred tax liabilities are classified as non-current assets and non-current liabilities respectively.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

2.4 Cash and cash equivalents:

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

2.5 Cash Flow Statement:

The Company prepares its Cash Flow Statement in accordance with Accounting Standard (AS) 3 “Cash Flow Statements” as notified under the Companies (Accounts) Rules, 2.014. The Cash Flow Statement presents cash flows from operating, investing and financing activities, classified and reported using the indirect method for operating activities, whereby net profit is adjusted for effects of non cash transactions, deferrals .or accruals of past or future operating cash receipts or payments. Cash flows from investing and financing activities are reported separately. Cash and cash equivalents include cash on hand, demand deposits, and short term, highly liquid investments maturing within three months of acquisition.

2.6 Inventories:

Inventories are measured at lower of cost or net realisable value. The cost in respect of the various items of inventory is computed as under:

• In case of raw materials, at Cost

• In case of stores and spares, at Cost

• In case of work in progress at raw material cost plus conversion costs depending upon the stage of completion.

2.7 Revenue Recognition:

i. Revenue from services provided is recognized as follows:

• Contract revenue from fabrication, engineering services, and project execution is recognized using the percentage of completion method, determined based on the proportion of costs incurred to date to the estimated total contract costs. Revenue is recognized when it is probable that economic benefits will flow to the Company, and the revenue and related costs can be measured reliably;

• Revenue from shutdown maintenance and service contracts is recognized upon rendering of services or as per the terms of the respective contracts.

• Revenue is measured net of returns, discounts, and applicable taxes.

ii. Interest: Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

2.8 Property, Plant and Equipment and Intangible Assets:

i. Property, Plant and Equipment are stated at cost net of recoverable taxes and less accumulated depreciation and impairment loss, if any. All costs including financing costs, up to the date of commissioning and attributable to the Property, Plant and Equipment are capitalised.

ii. Intangible assets are stated at cost of acquisition, less accumulated amortisation.

2.9 Capital Work In Progress:

Expenditure incurred on assets under installation or under construction, including direct and indirect costs attributable to bringing the asset to its working condition for intended use, is classified as Capital Work-in-Progress. Such costs are not depreciated and are capitalized upon completion and when the asset is ready for its intended use. All Expenditure incurred relating to Development of Ship Yard are accumulated and shown as Capital Work in Progress.

2.10 Depreciation and Amortization:

i. Depreciation on Property, Plant and Equipment are provided on "Written Down value Method" in accordance with requirements of Schedule II to the Companies Act, 2013.

ii. Amortization Intangible assets are amortized on "Written Down value Method" over their respective individual estimated useful life.

2.11 Investments:

Current Investments are carried at the lower of cost or quoted / fair value, computed category-wise. Long-term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such decline is other than temporary. Investments that are readily realisable and intended to be held for not more than 12 months from the date of acquisition are classified as current investment. All other investments are classified as noncurrent investments.

2.12 Employee Benefits:

(i) Short term employee benefits: The undiscounted amount of short-term employee benefits, like provident fund, ESIC and LWF, expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services. These benefits include performance incentive and compensated absences.

(ii) Post-employment benefits:

Gratuity

The Company’s gratuity scheme is a defined benefit plan. The liability for gratuity is determined based on an actuarial valuation carried out using the Projected Unit Credit Method at each balance sheet date. The Company’s obligation is measured as the present value of estimated future benefits that employees have earned in respect of their service in the current and prior periods, less the fair value of any plan assets, if applicable. The present value of the obligation is calculated by discounting estimated future cash flows using market yields on government securities that have terms approximating the maturities of the related obligations as at the reporting date.

2.13 Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for intended use.

All other borrowing costs are charged to the Statement of Profit and Loss.

2.14 Leases:

The Company has been given the possession of G.I.D.C. land on 14-08-2013, to hold the same as Licencee to make necessary construction etc. Lease Deed for 99 years will be executed by G.I.D.C. after completion of construction & subject to compliance of prescribed conditions.

2.15 Earnings Per Share:

Basic earnings per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted earnings per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares into equity shares.

2.16 Income Taxes:

Tax expense comprises of current tax and deferred tax.

Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates.

The company has opted for new simplified tax scheme under section 115BAA of The Income Tax Act, 1961. So, provisions of MAT are not applicable to the Company.

Deferred tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same.

Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

2.17 Accounting of Indirect Tax:

The Company is recording sales and purchases on exclusive method and GST/VAT are not passed through the profit and Loss accounts of the company. The Effect of Indirect Taxes on Sales will be as under:

2.18 Provision, Contingent Liabilities and Contingent Assets:

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

2.19 Impairment of Assets:

The Company assess at each reporting date as to whether there is any indication that an asset (tangible and intangible) may be impaired. An asset is treated as impaired, when the carrying cost of the asset exceeds its recoverable amount. Recoverable amount is higher of an asset’s or cash generating unit’s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

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Mar 31, 2024

Note 1 SIGNIFICANT ACCOUNTING POLICIES :

a. Basis of Accounting :

The financial statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act 2013, as adopted consistently by the company. The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b. Fixed Assets :

Fixed assets are recorded at cost. The Company has provided depreciation on Straight Line method as per the Companies Act, 2013

c. Capital Work In Progress:

All Expenditure incurred relating to Development of Ship Yard are accumulated and shown as Capital Work in Progress.

d. Investments :

The company has not made any investment during the year.

e. Depreciation and Amortization :

The company has provided depreciation on Straight Line Method as per companies Act,2013 and calculation of remaining useful life is based on no of days for which asstes were put to use.

f. Impairment of Assets :

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. The company assesses at each Balance Sheet date whether there is any indication that any assets may be impaired and if such indication exists, the carrying value of such assets is reduced to its recoverable amount and a provision is made for such impairment loss in the statement of Profit & Loss A/c.The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

g. Employee''s Benefit :

Provident Fund,ESIC & LWF : Provident fund,ESIC and LWF contributions are made as per defined scheme and the contribution is charged to statement of Profit & Loss A/c of the year when it becomes due. The company has no other obligation other than to contribute and deposit to respective authorities.

Short term employee benefits are recognized as an expense in the statement of Profit & Loss A/c for the year in which the related service is rendered.

Long term employee benefit are recognized as an expense in the statement of Profit & Loss A/c for the year in which the employee has rendered service.

The Company''s gratuity scheme is a defined benefit plan. The Company''s net obligation in respect of the gratuity benefit is calculated by estimating the amount of future benefit that the employees have earned in return for their service in the current and prior periods, that benefit is discounted to determine its present value, and the fair value of any plan assets, if any, is deducted. The present value of the obligation under such benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method. The obligation is measured at present values of estimated future cash flows. The discount rates used for determining the present value are based on the market yields on government securities as at the balance sheet date.

h. Deferred Revenue Expenditure :

No Preliminary expenses recorded during the year.

i. Inventories :

Inventories are valued at the lower of cost on FIFO basis and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale Work-in-progress and finished goods include appropriate proportion of overhead. Other stock is valued at estimated realizable Value.

j. Foreign Currency Transactions :

No foreign currency transactions during the current year. The foreign currency transaction during the previous year have been reported in notes to accounts and its corresponding exchange gain and loss has been shown in profit & loss account.

k. Lease Transactions :

The Company has been given the possession of G.I.D.C. land on 14-08-2013, to hold the same as Licencee to make necessary construction etc. Lease Deed for 99 years will be executed by G.I.D.C. after completion of construction & subject to compliance of prescribed conditions.

l. Revenue & Recognition :

Income and expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from Job Work transaction is recognized as and when job work or part of it is completed.

m. Income Tax :

Income tax liability is ascertained on the basis of assessable profits computed in accordance with the provisions of Income-tax. Act, 1961.Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of being reversal in one or more subsequent periods.

The company has opted for new simplified tax scheme under section 115BAA of The Income Tax Act, 1961. So, provisions of Mat are not applicable to the company.

n. Earning per Share :

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares into equity shares.

o. Cash & cash Equivalents :

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are term deposit balances, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

p. Cash Flow Statement :

The cash flow statement has been in accordance with the Accounting Standard (AS) - 3 on “Cash flow statements” prescribed in Companies (Accounts) rules, 2014.

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Mar 31, 2018

a. Basis of Accounting :

The financial statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act 2013, as adopted consistently by the company. The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b. Fixed Assets:

Fixed assets are recorded at cost. The Company has provided depreciation on Straight Line method as per the Companies Act, 2013

c. Capital Work In Progress:

All Expenditure, incurred relating to Development of Ship Yard are accumulated and shown as Capital Work in Progress.

d. Investment:

The company has not made any investment during the year.

e. Depreciation and Amortization :

The company has provided depreciation on Straight Line Method as per companies Act,2013 and calculation of remaining useful life is based on no of days for which assets were put to use.

f. Impairment of Assets :

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. The company assesses at each Balance Sheet date whether there is any indication that any assets may be impaired and if such indication exists, the carrying value of such assets is reduced to its recoverable amount and a provision is made for such impairment loss in the statement of Profit & Loss A/c. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

g. Employee''s Benefit:

Provident Fund, ESIC & LWF : Provident fund, ESIC and LWF contributions are made as per defined scheme and the contribution is charged to statement of Profit & Loss A/c of the year when it becomes due. The company has no other obligation other than to contribute and deposit to respective authorities.

Short term employee benefits are recognized as an expense in the statement of Profit & Loss A/c for the year in which the related service is rendered.

Long term employee benefit are recognized as an expense in the statement of Profit & Loss A/c for the year in which the employee has rendered service.

The Company’s gratuity scheme is a defined benefit plan. The Company’s net obligation in respect of the gratuity benefit is calculated by estimating the amount of future benefit that the employees have earned in return for their service in the current and prior periods, that benefit is discounted to determine its present value, and the fair value of any plan assets, if any, is deducted. The present value of the obligation under such benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method. The obligation is measured at present values of estimated future cash flows. The discount rates used for determining the present value are based on the market yields on government securities as at the balance sheet date.

h. Deferred Revenue Expenditure :

Preliminary expenses incurred by the company in past year was related to incorporation of company. Now, 1/5th of Preliminary Expenses is written off during the year.

i. Inventories:

Inventories are valued at the lower of cost on FIFO basis and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale Work-in-progress and finished goods include appropriate proportion of overhead. Other stock is valued at estimated realizable Value.

j. Foreign Currency Transactions :

The company has not incurred any foreign currency transaction during the year. k. Lease Transactions :

The Company has been given the possession of G.I.D.C. land on 14-08-2013, to hold the same as Licencee to make necessary construction etc. Lease Deed for 99 years will be executed by G.I.D.C. after completion of construction & subject to compliance of prescribed conditions.

I. Revenue & Recognition :

Income and expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from Job Work transaction is recognized as and when job work or part of it is completed.

m. Income Tax:

Income tax liability is ascertained on the basis of assessable profits computed in accordance with the provisions of Income-tax. Act, 1961 .Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of being reversal in one or more subsequent periods.

Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. The Company review the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

n. Contingent Liability:

No provision is made for a liability which is contingent in nature but if material, the same is disclosed by way of notes to the accounts.

o. Earning per Share :

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

p. Cash & cash Equivalents :

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are term deposit balances, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

q. Accounting for Indirect Taxes

The Company is recording sales and purchases on exclusive method and GST/VAT are not passed through the profit and Loss accounts of the company. The Effect of Indirect Taxes on Sales will be as under:

Amount In Rs

Gross Sales 12,335,315

Less: VAT/GST 1,806,605

Net Sales 10,528,710

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Mar 31, 2016

Note 1 SIGNIFICANT ACCOUNTING POLICIES :

a. Basis of Accounting

The financial statements have been prepared under historical (convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act 20B, as adopted consistently by the company. The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b. Fixed Assets:

Fixed assets rerecorded at cost. The Company has provided depreciation on Straight L method as per the Companies Act, 2013

c. Capital Work In Program!

All Expenditure incurred relating to Development of Ship Yard accumulated and shown as Capital Work in Progress.

d. Investment:

The company has not made any investment during the year.

e. Depreciation and Amortization

The company has provided depreciation on Strait Line Method as per companies Act,20B and calculation of remaining useful life is based on no of days for which assets were put to use.

f. Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. The company assesses at each Balance Sheet date whether there is any indication that any assets may be impaired and if such indication exists, the carrying value of such assets is reduced to its recoverable amount and a provision is made for such impairment loss in the statement of Profit &Loss A/c .The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

g. Employee''s Benefit:

Provident Fun ESIC &LWF : Provident fun E SIC and LWF contributions are made per defined scheme and the contribution is charged to statement of Profit &Loss A/c of the year when it becomes due. The company has no other obligation other than to contribute and deposit to respective authorities.

Short term employee benefits are recognized as an expense in the statement of Profit &Loss A/c for the year in which the related service is rendered.

Long-term employee benefit are recognized as an expense in the statement of Profit &I A/c for the year in which the employee has rendered service.

The company has not been incorporate< for more than 5 years so the provision regarding employee benefit which applicable after completion of services of 5years are not applicable during the year.

h. Deferred Revenue Expenditure

Preliminary expenses incurred by this company in past year was related to incorporation o company. So during the year they are start to write off, So /5 of Preliminary Expenses are written off during the year.

i. Imentorie :

Inventories are valued at the lower of cost on FIF as is and the net realizable value aft: providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale Work-in-progress and finished goods include appropriate proportion of overhead. Other stock is valued at estimated realizable Value.

j. Foretime Currency Transacting :

The company has not incurred any foreign currency transaction during the

k. Lease Transaction s

The Company has been given the possession of G.I.D.C. land on -08-20B, to hold the same as Licensee to make necessary construction etc. Lease Deed for 99 years will be executed by G.I.D.C. after completion of construction &subject to compliance of prescribed conditions.

l. Revenue & Recognition :

Income and expenditure are recognized and accounted on accrual basis as and when they a earned or incurred. Revenue from Job Work transaction is recognized as and when job work or part of it is completed.

m. Income T a?:

Income tax liability is ascertained on the basis of assessable profits computed in accord with the provisions of Income-tax. Act, 961Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of being reversal in one or more subsequent periods.

Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. The Company review the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence tothe effect that Company will pay normal Income T ax during the specified period.

n. Contingent Liability:

N o provision is made for a liability which is contingent in nature but if material, the same is disclosed by way of notes to the accounts.

o. Earning per Shad:

Basic earnings per share is computed by dividing the profit / (loss) after tax (including post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

p. Cash &cash Equivalent s

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are term deposit balances, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

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Mar 31, 2015

A. Basis of Accounting:

The financial statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act 2013, as adopted consistently by the company. The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b. Fixed Assets:

Fixed assets are recorded at cost. The Company has provided depreciation on Straight Line method as per the Companies Act, 2013.

c. Capital Work In Progress:

All Expenditure, incurred relating to Development of Ship Yard is accumulated and shown as Capital Work in Progress.

d. Investment:

The company has not made any investment during the year.

e. Depreciation and Amortization:

The company has provided depreciation on Straight Line Method as per companies Act, 2013 and calculation of remaining useful life is based on no of days for which assets were put to use.

f. Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. The company assesses at each Balance Sheet date whether there is any indication that any assets may be impaired and if such indication exists, the carrying value of such assets is reduced to its recoverable amount and a provision is made for such impairment loss in the statement of Profit & Loss A/c. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

g. Employee''s Benefit:

Provident Fund, ESIC & LWF: Provident fund, ESIC and LWF contributions are made as per defined scheme and the contribution is charged to statement of Profit & Loss A/c of the year when it becomes due. The company has no other obligation other than to contribute and deposit to respective authorities.

Short term employee benefits are recognized as an expense in the statement of Profit & Loss A/c for the year in which the related service is rendered.

Long term employee benefits are recognized as an expense in the statement of Profit & Loss A/c for the year in which the employee has rendered service.

The company has not been incorporated for more than 5 years so the provision regarding employee benefit which applicable after completion of services of 5 years are not applicable during the year.

h. Deferred Revenue Expenditure:

Preliminary expenses incurred by the company in past year were related to incorporation of company. So during the year they have started to write off, so 1/5 of Preliminary Expenses are written off during the year.

i. Inventories:

Inventories are valued at the lower of cost on FIFO basis and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale Work-in-progress and finished goods include appropriate proportion of overhead. Other stock is valued at estimated realizable Value.

j. Foreign Currency Transactions:

The company has not incurred any foreign currency transaction during the year.

k. Lease Transactions:

The Company has been given the possession of G.I.D.C. land on 14-08-2013, to hold the same as Licensee to make necessary construction etc. Lease Deed for 99 years will be executed by G.I.D.C. after completion of construction & subject to compliance of prescribed conditions.

l. Revenue & Recognition:

Income and expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from Job Work transaction is recognized as and when job work or part of it is completed.

m. Income Tax:

Income tax liability is ascertained on the basis of assessable profits computed in accordance with the provisions of Income-tax. Act, 1961.Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of being reversal in one or more subsequent periods.

Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

n. Contingent Liability:

No provision is made for a liability which is contingent in nature but if material, the same is disclosed by way of notes to the accounts.

o. Earnings per Share:

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

p. Cash & cash Equivalents:

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are term deposit balances, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

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Mar 31, 2014

Not Available.