Accounting Policies of Le Merite Exports Ltd. Company

Mar 31, 2025

a) Basis of Preparation

The standalone 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 standalone financial statements to comply in all material respects
with the accounting standards notified under section 133 of the Companies Act 2013,
read with paragraph 7 of the Companies (Accounts) Rules 2014 and Companies
(Accounting Standards) Amendment Rules, 2016. The standalone financial statements
have been prepared on an accrual basis and under the historical cost convention. The
accounting policies adopted in the preparation of standalone financial statements are
consistent with those of previous year.

Use of Estimates:

The preparation of standalone financial statements is in conformity with Indian GAAP,
requires the management to make judgments, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities and the disclosure of
contingent liabilities, at the end of the reporting period. Although these estimates are
based on the management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes requiring a material
adjustment to the carrying amounts of assets or liabilities in future periods.

b) Property, Plant and Equipment

Property, Plant and Equipment are stated at cost (or revalued amounts, as the case may
be) less accumulated depreciation/amortization and impairment losses, if any.

Cost includes purchase price, taxes and duties as applicable, freight, and other incidental
expenses incurred till the commencement of commercial production. Incidental
expenses include establishment expenses, interest on borrowed funds used for qualifying
assets and other related direct costs attributable to the same.

Capital Work in Progress includes pre-operative and other incidental expenses pending
allocation/ apportionment in respect of the uninstalled/ incomplete fixed assets.

c) Intangible Assets

Intangible assets are stated at original cost net of tax/duty credits availed, if any, less
accumulated amortization and cumulative impairment.

Intangible assets are recognized when it is probable that the future economic benefits
that are attributable to the asset will flow to the enterprise and the cost of the asset can
be measured reliably.

Intangible assets are amortized over their useful life.

d) Depreciation on Property, Plant and Equipment

Depreciation on Property, Plant and Equipment is calculated on a WDV basis using the
rates arrived at based on the useful lives of fixed assets specified by Schedule II to the
Companies Act, 2013.

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

e) Impairment

The carrying amounts of assets are reviewed at each balance sheet date, to check if there
is any indication of impairment based on internal/external factors.

An impairment loss is recognized wherever the carrying amount of an asset exceeds its
recoverable amount.

The recoverable amount is the greater of the asset''s net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time
value of money and risks specific to the asset.

f) Investments

Long term investments are carried at cost less provision for permanent diminution, if
any, in value of such investments. Current investments are carried at lower of cost and
fair value.

g) Borrowing costs:

Borrowing costs attributable to the acquisition and construction of qualifying assets up
to the date of such acquisition or construction are capitalized as part of the cost of
respective assets. Other borrowing costs are charged to statement of profit and loss of
the period in which they are incurred.

h) Leases:

i) Finance lease:

Assets acquired under finance leases are recognized as an asset and a liability at
the commencement of the lease, at the lower of the fair value of the assets and
the present value of minimum lease payments. The finance expense is allocated
to each period during the lease term so as to produce a constant periodic rate of
interest on the remaining balance of the liability. Assets given under finance
leases are recognized as receivables at an amount equal to the net investment in
the lease and the finance income is based on a constant rate of return on the
outstanding net investment.

ii) Operating lease:

Leases other than finance lease, are operating leases, and the leased assets are
not recognized on the Company''s Balance Sheet. Payments / rental income under
operating leases are recognized in the Statement of Profit and Loss on a straight¬
line basis over the term of the lease.

i) Inventories

Net realizable value is estimated selling price in the ordinary course of business less
estimated cost of completion and selling expenses.

j) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will
flow to the Company and the revenue can be reliably measured.

Sale of Goods

Sales is recognized, net of returns and trade discounts, on transfer of significant risk and
rewards of ownership to the buyer, which generally coincide with the delivery of goods
to the customers. Sales include income from services, export incentives and exchange
fluctuations, other recurring and non-recurring incentives from the Governments.

The Company collects Goods and Service Tax (GST) and / or Tax Collected at source on
behalf of the government and, therefore, these do not form a part of economic benefits
flowing to the Company. Hence, they are excluded from revenue.

Interest

Revenue is recognised on a time proportion basis taking into account the amount
outstanding and the rate applicable.

Service Income

Income from service rendered is recognised based on the terms of the agreements as
and when services are rendered and are net of Goods and Service Tax (GST)/ Service tax.

Dividend Income

Dividend income from investments, if any, is accounted on the receipt basis.

Export Incentives

Income from Exports Incentives received for Export Sales such as Duty Drawback or
RoDTEP Licenses is recognized as income on Accrual basis together with the Export Sales.

k) Foreign Currency Translation
Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the
foreign currency amount the exchange rate between the reporting currency and the
foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are reported into rupees at the rate of exchange
prevailing on the date of Balance Sheet. Non-monetary items which are carried in terms
of historical cost denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non-monetary items which are carried at fair value or
other similar valuation denominated in a foreign currency are reported using the
exchange rates that existed when the values were determined.

Exchange differences

Exchange differences arising on the settlement of monetary items or on reporting
company''s monetary items at rates different from those at which they were initially
recorded during the year, or reported in previous financial statements, are recognized as
income or as expenses in the year in which they arise.

l) Employee benefits

(i) Defined Contribution Plan

The Company contributes to Government Provident Fund Scheme. The
Company''s contribution paid/ payable under the scheme is recognized as an
expense in the statement of profit and loss during the period in which the
employee renders the related service.

(ii) Defined Benefit Plan

The Company''s liabilities on account of gratuity and leave encashment are
determined at the end of each financial year on the basis of actuarial Valuation
as per requirements of Accounting Standard 15 on "Employee Benefits".

m) Income taxes

Tax expense comprises current and deferred tax. Current income-tax is measured at the
amount expected to be paid to the tax authorities in accordance with the Income-tax
Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where
the Company operates. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income
and accounting income originating during the current year and reversal of timing
differences for the earlier years. Deferred tax is measured using the tax rates and the tax
laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax
assets are recognized for deductible timing differences only to the extent that there is
reasonable certainty that sufficient future taxable income will be available against which
such deferred tax assets can be realized.

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

n) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year

attributable to equity shareholders (after deducting attributable taxes) by the weighted
average number of equity shares outstanding during the year. The weighted average
number of equity shares outstanding during the year is adjusted for events of
preferential issue/ allotment of equity shares. For the purpose of calculating diluted
earnings per shares, the net profit or loss for the year attributable to equity shareholders
and the weighted average number of shares outstanding during the year are adjusted
for the effects of all dilutive potential equity shares.

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Mar 31, 2024

Note 1: Statement of Significant Accounting Policies

a) Basis of Preparation

The standalone 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 standalone financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read with paragraph 7 of the Companies (Accounts) Rules 2014 and Companies (Accounting Standards) Amendment Rules, 2016. The standalone financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of standalone financial statements are consistent with those of previous year.

Use of Estimates:

The preparation of standalone financial statements is in conformity with Indian GAAP, requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

b) Property, Plant and Equipment

Property, Plant and Equipment are stated at cost (or revalued amounts, as the case may be) less accumulated depreciation/amortization and impairment losses, if any.

Cost includes purchase price, taxes and duties as applicable, freight, and other incidental expenses incurred till the commencement of commercial production. Incidental expenses include establishment expenses, interest on borrowed funds used for qualifying assets and other related direct costs attributable to the same.

Capital Work in Progress includes pre-operative and other incidental expenses pending allocation/ apportionment in respect of the uninstalled/ incomplete fixed assets.

c) Intangible Assets

Intangible assets are stated at original cost net of tax/duty credits availed, if any, less accumulated amortization and cumulative impairment.

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably.

Intangible assets are amortized over their useful life.

d) Depreciation on Property, Plant and Equipment

Depreciation on Property, Plant and Equipment is calculated on a WDV basis using the rates arrived at based on the useful lives of fixed assets specified by Schedule II to the Companies Act, 2013.

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

e) Impairment

The carrying amounts of assets are reviewed at each balance sheet date, to check if there is any indication of impairment based on internal/external factors.

An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset.

f) Investments

Long term investments are carried at cost less provision for permanent diminution, if any, in value of such investments. Current investments are carried at lower of cost and fair value.

g) Borrowing costs:

Borrowing costs attributable to the acquisition and construction of qualifying assets up to the date of such acquisition or construction are capitalized as part of the cost of respective assets. Other borrowing costs are charged to statement of profit and loss of the period in which they are incurred.

h) Leases:

i) Finance lease:

Assets acquired under finance leases are recognized as an asset and a liability at the commencement of the lease, at the lower of the fair value of the assets and the present value of minimum lease payments. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Assets given under finance leases are recognized as receivables at an amount equal to the net investment in the lease and the finance income is based on a constant rate of return on the outstanding net investment.

ii) Operating lease:

Leases other than finance lease, are operating leases, and the leased assets are not recognized on the Company''s Balance Sheet. Payments / rental income under operating leases are recognized in the Statement of Profit and Loss on a straight-line basis over the term of the lease.

i) Inventories

Inventories are valued at lower of cost or net realizable value, after providing for obsolesce and damages as follows:

Net realizable value is estimated selling price in the ordinary course of business less estimated cost of completion and selling expenses.

j) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of Goods

Sales is recognized, net of returns and trade discounts, on transfer of significant risk and rewards of ownership to the buyer, which generally coincide with the delivery of goods to the customers. Sales include income from services, export incentives and exchange fluctuations, other recurring and non-recurring incentives from the Governments.

The Company collects Goods and Service Tax (GST) and / or Tax Collected at source on behalf of the government and, therefore, these do not form a part of economic benefits flowing to the Company. Hence, they are excluded from revenue.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Service Income

Income from service rendered is recognised based on the terms of the agreements as and when services are rendered and are net of Goods and Service Tax (GST)/ Service tax.

Dividend Income

Dividend income from investments, if any, is accounted on the receipt basis.

Export Incentives

Income from Exports Incentives received for Export Sales such as Duty Drawback or RoDTEP Licenses is recognized as income on Accrual basis together with the Export Sales.

k) Foreign Currency Translation Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are reported into rupees at the rate of exchange prevailing on the date of Balance Sheet. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences

Exchange differences arising on the settlement of monetary items or on reporting company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

l) Employee benefits

(i) Defined Contribution Plan

The Company contributes to Government Provident Fund Scheme. The Company''s contribution paid/ payable under the scheme is recognized as an expense in the statement of profit and loss during the period in which the employee renders the related service.

(ii) Defined Benefit Plan

The Company''s liabilities on account of gratuity and leave encashment are determined at the end of each financial year on the basis of actuarial Valuation as per requirements of Accounting Standard 15 on "Employee Benefits".

m) Income taxes

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the Company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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

n) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of preferential issue/ allotment of equity shares. For the purpose of calculating diluted earnings per shares, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2023

Note 1: Statement of Significant Accounting Policies

a) Basis of Preparation

The standalone 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 standalone financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read with paragraph 7 of the Companies (Accounts) Rules 2014 and Companies (Accounting Standards) Amendment Rules, 2016. The standalone financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of standalone financial statements are consistent with those of previous year.

Use of Estimates:

The preparation of standalone financial statements is in conformity with Indian GAAP, requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

b) Property, Plant and Equipment

Property, Plant and Equipment are stated at cost (or revalued amounts, as the case may be) less accumulated depreciation/amortization and impairment losses, if any.

Cost includes purchase price, taxes and duties as applicable, freight, and other incidental expenses incurred till the commencement of commercial production. Incidental expenses include establishment expenses, interest on borrowed funds used for qualifying assets and other related direct costs attributable to the same.

Capital Work in Progress includes pre-operative and other incidental expenses pending allocation/ apportionment in respect of the uninstalled/ incomplete fixed assets.

c) Intangible Assets

Intangible assets are stated at original cost net of tax/duty credits availed, if any, less accumulated amortization and cumulative impairment.

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably.

Intangible assets are amortized over their useful life.

d) Depreciation on Property, Plant and Equipment

Depreciation on Property, Plant and Equipment is calculated on a WDV basis using the rates arrived at based on the useful lives of fixed assets specified by Schedule II to the Companies Act, 2013.

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

e) Impairment

The carrying amounts of assets are reviewed at each balance sheet date, to check if there is any indication of impairment based on internal/external factors.

An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

The recoverable amount is the greater of the asset’s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset.

f) Investments

Long term investments are carried at cost less provision for permanent diminution, if any, in value of such investments. Current investments are carried at lower of cost and fair value.

g) Borrowing costs:

Borrowing costs attributable to the acquisition and construction of qualifying assets up to the date of such acquisition or construction are capitalized as part of the cost of respective assets. Other borrowing costs are charged to statement of profit and loss of the period in which they are incurred.

h) Leases:

i) Finance lease:

Assets acquired under finance leases are recognized as an asset and a liability at the commencement of the lease, at the lower of the fair value of the assets and the present value of minimum lease payments. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Assets given under finance leases are recognized as receivables at an amount equal to the net investment in the lease and the finance income is based on a constant rate of return on the outstanding net investment.

ii) Operating lease:

Leases other than finance lease, are operating leases, and the leased assets are not recognized on the Company’s Balance Sheet. Payments / rental income under operating leases are recognized in the Statement of Profit and Loss on a straight-line basis over the term of the lease.

i) Inventories

Inventories are valued at lower of cost or net realizable value, after providing for obsolesce and damages as follows:

Cost is ascertained as,

a)	Raw Material, Packing Material & Stores and Spares	At cost, on FIFO/ weighted average basis.
b)	Finished goods	At cost, plus appropriate production overheads if applicable.
c)	Material in Process	At Cost, plus appropriate production overheads.

Net realizable value is estimated selling price in the ordinary course of business less estimated cost of completion and selling expenses.

j) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of Goods

Sales is recognized, net of returns and trade discounts, on transfer of significant risk and rewards of ownership to the buyer, which generally coincide with the delivery of goods to the customers. Sales include income from services, export incentives and exchange fluctuations, other recurring and non-recurring incentives from the Governments.

The Company collects Goods and Service Tax (GST) and / or Tax Collected at source on behalf of the government and, therefore, these do not form a part of economic benefits flowing to the Company. Hence, they are excluded from revenue.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Service Income

Income from service rendered is recognised based on the terms of the agreements as and when services are rendered and are net of Goods and Service Tax (GST)/ Service tax.

Dividend Income

Dividend income from investments, if any, is accounted on the receipt basis.

Export Incentives

Income from Exports Incentives received for Export Sales such as Duty Drawback or RoDTEP Licenses is recognized as income on Accrual basis together with the Export Sales.

k) Foreign Currency Translation Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are reported into rupees at the rate of exchange prevailing on the date of Balance Sheet. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences

Exchange differences arising on the settlement of monetary items or on reporting company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

l) Employee benefits

(i) Defined Contribution Plan

The Company contributes to Government Provident Fund Scheme. The Company’s contribution paid/ payable under the scheme is recognized as an expense in the statement of profit and loss during the period in which the employee renders the related service.

(ii) Defined Benefit Plan

The Company’s liabilities on account of gratuity and leave encashment are determined at the end of each financial year on the basis of actuarial Valuation as per requirements of Accounting Standard 15 on “Employee Benefits”.

m) Income taxes

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the Company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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

n) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of preferential issue/ allotment of equity shares. For the purpose of calculating diluted earnings per shares, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

o) Provisions

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Where the company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.

p) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the standalone financial statements.

q) Cash and Cash equivalents

Cash and cash equivalents for the purpose of Cash flow statement comprise of cash at bank and in hand and short-term investments with an original maturity of three months or less.

r) Research and Development

Revenue expenditure on research is expensed under respective heads of account in the period in which it is incurred. Capital expenditure is shown as addition to fixed assets.

s) Cash Flow Statement

The Cash Flow Statement is prepared by the indirect method set out in Accounting Standard 3 on Cash Flow Statements and presents the cash flows by operating, investing and financing activities of the Company. Cash and cash equivalents presented in the Cash Flow Statement consist of cash on hand and demand deposits with banks.