Accounting Policies of Raama Paper Mills Ltd. Company

Mar 31, 2025

2. Significant accounting policies

2.1 Statement of compliance

The financial statements have been prepared as a going concern in accordance with Indian Accounting Standards (Ind AS)
notified under the Section 133 of the Companies Act, 2013 ("the Act") read with the Companies (Indian Accounting Standards)
Rules, 2015,as amended, and other relevant provisions of the Act.

2.2 Basis of preparation and presentation

The financial statements have been prepared on the historical cost convention on accrual basis except for certain financial
instruments which are measured at fair value at the end of each reporting period, as explained in the accounting policies
mentioned below. Historical cost is generally based on the fair value of the consideration given in exchange of goods or services.
Based on the nature of products and the normal time between the acquisition of assets for processing and their realisation in
cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of classification
of its assets and liabilities as current and non-current.

An asset is classified as current when it satisfies any of the following criteria:

- It is expected to be realized in, or is intended for sale or consumption in, the company’s normal operating cycle.

- It is held primarily for the purpose of being traded,

- It is expected to be realized within 12 months after the reporting date, or

- It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liablity for at least 12

months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

- It is expected to be settled in the company’s normal operating cycle;

- It is held primarily for the purpose of being traded,

- It is due to be settled within 12 months after the reporting date.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

2.3 Use of estimates and judgements

The preparation of these financial statements in conformity with Ind AS requires management to make judgements, estimates
and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income,
expenses and disclosures of contingent liabilities at the date of these financial statements and the reported amount of revenues
and expenses for the years presented.

Actual results may differ from these estimated. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods affected.
In particular, information about significant areas of estimation/ uncertainty and judgements in applying accounting policies that
have the most significant effects on the financial statements are included in the respective notes of:

- Recognition and estimation of tax expense including deferred tax

- Estimation of obligations relating to employee benefits: key actuarial assumptions

- V aluation of Inventories

- Fair Value Measurement of financials instruments

ESTIMATION OF UNCERTAINTIES RELATING TO THE GLOBAL HEALTH PANDEMIC FROM COVID-19

In view of the unprecedented COVID-19 pandemic and economic forecasts, the Management has evaluated the impact on its
financial results and made appropriate adjustment, wherever required. In assessing the recoverability of its assets including
receivables and inventories, the Company has considered internal and external information up to the date of approval of these
financial statements including economic forecasts. The Company has performed analysis on the assumptions used and based
on current indicators of future economic conditions; the Company expects to recover the carrying amount of these assets. The
impact of the global health pandemic may be different from that estimated as at the date of approval of these financial statements
and the Company will continue to closely monitor any material changes to future economic conditions.

2.4 Revenue recognition

2.4.1 Measurement of revenue

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at
an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts, incentive schemes, if
any, as per contracts with customers. Taxes collected from customers on behalf of Government are not treated as Revenue.

2.4.2 Sales of goods

Revenue from sale of goods is recognised when the company satisfies its performance obligation by transferring goods to the
customer i.e. when the customer obtains control of the goods.

2.4.3 Interest income

Interest income from a financial asset is recognised using the effective interest rate method.

2.5 Leases
As a lessee

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 earlier of
the end of the useful life of the right-of-use asset or 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 interest rate implicit in the lease or, if that rate cannot be readily determined company’s incremental
borrowing rate.

Short term leases and lease of low value assets

The company has elected not to recognise right-of-use assets and lease liabilities for short- term leases of real estate properties
that have a lease term upto12 months. The company recognises the lease payments associated with these leases as an expense
on a straight-line basis over the lease term.

2.6 Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the
entity operates (‘the functional currency’). The financial statements are presented in Indian rupee (INR), which is the
Company’s functional and presentation currency. All amounts are in Rupees lakhs with two decimal points rounded off to the
nearest thousands, unless otherwise stated.

Foreign Currency Transactions and balances

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

2.7 Employee benefits

2.7.1 Short-term obligations

Liabilities for wages and salaries including non-monetary benefits that are expected to be settled within the operating cycle
after the end of the period in which the employees render the related services are recognised in the period in which the
related services are rendered and are measured at the undiscounted amount expected to be paid.

2.7.2 Defined Contribution Plans

Company''s contribution paid/payable during the year to provident fund and employee state insurance are recognized as an
employee benefit expense in the statement of profit and loss. For the Provident Fund Trust administered by the Company,
a shortfall in the size of the fund maintained by the trust is additionally provided for in the statement of profit and loss.

2.7.3 Defined benefit plans

The liability recognized in respect of gratuity is the present value of defined benefit obligation at the end of the reporting
period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuary using the Projected
Unit Credit Method. Re-measurement comprising actuarial gains and losses and return on plan assets (excluding net interest)
are recognized in the Other Comprehensive Income for the period in which they occur and are not reclassified to profit or
loss.

2.8 Income-taxes

Income tax expense represents the sum of the tax currently payable and includes deferred tax.The Income-tax liability is
provided in accordance with the provisions of the Income-tax Act, 1961.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the
statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that
are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively
enacted by the end of the reporting period.

Deferred Income Taxes are calculated using Balance Sheet Approach, on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except when it is probable that the temporary
differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences and the carry forward of unused tax credits and any
unused tax losses. Deferred tax assets are recognised to the extent that is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed at 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 recovered.

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.

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the income taxes are also recognised in other comprehensive income
or directly in equity respectively.

2.9 Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment loss, if any. The
cost of Property, plant and Equipment comprises its purchase price 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, including relevant borrowing costs for qualifying assets and any expected costs of
decommissioning.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced.
Depreciation methods, estimated useful lives and residual value

Depreciation is calculated using the written-down value method over their estimated useful lives prescribed in Schedule II of
the Companies Act, 2013 except for assets costing Rs.5,000 or less, which are depreciated fully in the year of purchase. The
depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its residual value.

The followina useful lives are applied:

2.10 Inventories

Inventories are valued at the lower of cost and net realisable value. The cost is determined as under:

Stores and Spares - First in First Out

Raw materials and stock in trade: Yearly weighted average

Finished Goods and Work in progress:The cost of finished goods and work in progress comprises raw materials, direct
labour, other direct costs and appropriate proportion of variable and fixed overhead expenditure.

Cost of inventories also includes all other costs incurred in bringing the inventories to their present location and condition.
Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling
price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the
sale.Estimated realizable value has been taken as basis for valuation of Inventory lying at floor.

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Mar 31, 2024

2. Significant accounting policies

2.1 Statement of compliance

The financial statements have been prepared as a going concern in accordance with Indian Accounting Standards (Ind AS)
notified under the Section 133 of the Companies Act, 2013 ("the Act") read with the Companies (Indian Accounting Standards)
Rules, 2015,as amended,and other relevant provisions of the Act.

2.2 Basis of preparation and presentation

The financial statements have been prepared on the historical cost convention on accrual basis except for certain financial
instruments which are measured at fair value at the end of each reporting period, as explained in the accounting policies
mentioned below. Historical cost is generally based on the fair value of the consideration given in exchange of goods or services.

Based on the nature of products and the normal time between the acquisition of assets for processing and their realisation in
cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of classification
of its assets and liabilities as current and non-current.

An asset is classified as current when it satisfies any of the following criteria:

- It is expected to be realized in, or is intended for sale or consumption in, the company’s normal operating cycle.

- It is held primarily for the purpose of being traded,

- It is expected to be realized within 12 months after the reporting date, or

- It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liablity for at least 12

months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria :

- It is expected to be settled in the company’s normal operating cycle;

- It is held primarily for the purpose of being traded,

- It is due to be settled within 12 months after the reporting date.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

2.3 Use of estimates and judgements

The preparation of these financial statements in conformity with Ind AS requires management to make judgements, estimates
and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income,
expenses and disclosures of contingent liabilities at the date of these financial statements and the reported amount of revenues
and expenses for the years presented.

Actual results may differ from these estimated. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods affected.
In particular, information about significant areas of estimation/ uncertainty and judgements in applying accounting policies that
have the most significant effects on the financial statements are included in the respective notes of:

- Recognition and estimation of tax expense including deferred tax

- Estimation of obligations relating to employee benefits: key actuarial assumptions

- V aluation of Inventories

- Fair Value Measurement of financials instruments

ESTIMATION OF UNCERTAINTIES RELATING TO THE GLOBAL HEALTH PANDEMIC FROM COVID-19

In view of the unprecedented COVID-19 pandemic and economic forecasts, the Management has evaluated the impact on its
financial results and made appropriate adjustment, wherever required. In assessing the recoverability of its assets including
receivables and inventories, the Company has considered internal and external information up to the date of approval of these
financial statements including economic forecasts. The Company has performed analysis on the assumptions used and based
on current indicators of future economic conditions; the Company expects to recover the carrying amount of these assets. The
impact of the global health pandemic may be different from that estimated as at the date of approval of these financial statements
and the Company will continue to closely monitor any material changes to future economic conditions.

2.4 Revenue recognition

2.4.1 Measurement of revenue

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at
an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts, incentive schemes, if
any, as per contracts with customers. Taxes collected from customers on behalf of Government are not treated as Revenue.

2.4.2 Sales of goods

Revenue from sale of goods is recognised when the company satisfies its performance obligation by transferring goods to the
customer i.e. when the customer obtains control of the goods.

2.4.3 Interest income

Interest income from a financial asset is recognised using the effective interest rate method.

2.5 Leases
As a lessee

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 earlier of
the end of the useful life of the right-of-use asset or 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 interest rate implicit in the lease or, if that rate cannot be readily determined company’s incremental
borrowing rate.

Short term leases and lease of low value assets

The company has elected not to recognise right-of-use assets and lease liabilities for short- term leases of real estate properties
that have a lease term upto12 months. The company recognises the lease payments associated with these leases as an expense
on a straight-line basis over the lease term.

2.6 Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the
entity operates (‘the functional currency’). The financial statements are presented in Indian rupee (INR), which is the
Company’s functional and presentation currency. All amounts are in Rupees lakhs with two decimal points rounded off to the
nearest thousands, unless otherwise stated.

Foreign Currency Transactions and balances

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

2.7 Employee benefits

2.7.1 Short-term obligations

Liabilities for wages and salaries including non-monetary benefits that are expected to be settled within the operating cycle after
the end of the period in which the employees render the related services are recognised in the period in which the related
services are rendered and are measured at the undiscounted amount expected to be paid.

2.7.2 Defined Contribution Plans

Company''s contribution paid/payable during the year to provident fund and employee state insurance are recognized as an
employee benefit expense in the statement of profit and loss. For the Provident Fund Trust administered by the Company,
a shortfall in the size of the fund maintained by the trust is additionally provided for in the statement of profit and loss.

2.7.3 Defined benefit plans

The liability recognized in respect of gratuity is the present value of defined benefit obligation at the end of the reporting
period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuary using the Proj ected
Unit Credit Method. Re-measurement comprising actuarial gains and losses and return on plan assets (excluding net interest)
are recognized in the Other Comprehensive Income for the period in which they occur and are not reclassified to profit or
loss.

2.8 Income-taxes

Income tax expense represents the sum of the tax currently payable and includes deferred tax.The Income-tax liability is
provided in accordance with the provisions of the Income-tax Act, 1961.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the
statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that
are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively
enacted by the end of the reporting period.

Deferred Income Taxes are calculated using Balance Sheet Approach, on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except when it is probable that the temporary
differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences and the carry forward of unused tax credits and any
unused tax losses. Deferred tax assets are recognised to the extent that is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed at 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 recovered.

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.

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the income taxes are also recognised in other comprehensive income
or directly in equity respectively.

2.9 Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment loss, if any. The
cost of Property, plant and Equipment comprises its purchase price 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, including relevant borrowing costs for qualifying assets and any expected costs of
decommissioning.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced.
Depreciation methods, estimated useful lives and residual value

Depreciation is calculated using the written-down value method over their estimated useful lives prescribed in Schedule II of
the Companies Act, 2013 except for assets costing Rs.5,000 or less, which are depreciated fully in the year of purchase. The
depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its residual value.

2.10 Inventories

Inventories are valued at the lower of cost and net realisable value. The cost is determined as under:

Stores and Spares - First in First Out

Raw materials and stock in trade: Yearly weighted average

Finished Goods and Work in progress:The cost of finished goods and work in progress comprises raw materials, direct
labour, other direct costs and appropriate proportion of variable and fixed overhead expenditure.

Cost of inventories also includes all other costs incurred in bringing the inventories to their present location and condition.
Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling
price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the
sale.

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Mar 31, 2015

(1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

i) The financial statements have been prepared under the historical cost conventional basis (except for certain assets which have been revalued) in accordance with the generally accepted accounting principles.

ii) The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

(2) USE OF ESTIMATES

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statement and notes thereto. Differences between actual and estimates are recognized in the period in which the results are known/ materialized.

(3) VALUATION OF INVENTORIES

-Inventories are valued at the lower of the cost and estimated net realisable value. The Basis of determining cost for various categories of Inventories are as follows:- -Raw Material, Chemicals, Fuels, Store & Spares and Packing Material. On Weighted Average/ FIFO basis.

-Finished Goods and Work in process includes Raw Material Cost, Cost of conversion and other costs in bringing the inventories to their present location and conditions.

(4) SALES

Sales are inclusive of excise duty.

(5) EXCISE DUTY

Excise Duty has been accounted for on the basis of payment made in respect goods cleared. Amount of Excise Duty deducted from sale is relatable to the sale made during the year. Amount of Cenvat credits in respect of material consumed is deducted from cost of material.

(6) FIXED ASSETS

(i) Fixed Assets are stated at cost. Cost includes installation charges and expenditure during construction period wherever applicable. (ii) All pre-operative expenditure accumulated as capital work in progress and is allocated to the relevant fixed assets on a pro-rata basis.

(7) DEPRECIATION

Depreciation on fixed assets is provided on straight-line method based on useful life of assets prescribed in Schedule II of the Companies Act, 2013 or on technical estimate made by the company.

(8) FOREIGN CURRENCY TRANSACTIONS

Foreign Currency transactions are accounted at the exchange rates prevailing on the date of transactions. Foreign Currency assets and current liabilities outstanding at the Balance Sheet date are translated at the exchange rate prevailing on that the date and the resultant gain or loss is recognized in the Statement of Profit & Loss. In cases where they relate to the acquisition / construction of fixed assets, they are adjusted to the carrying cost of fixed assets.

(9) EMPLOYEE RETIREMENT BENEFIT

i) Retirement benefit in the form of provident fund and superannuation/pension schemes whether in pursuance of any law or otherwise is accounted on accrual basis and charged to the Statement of profit & loss of the year. ii)The provision for gratuity has been made on the basis of formula prescribed for the payment of gratuity act, 1972.

(10) BORROWING COST

Borrowing costs directly attributable to the acquisition or construction of fixed assets are capitalised as part of the cost of assets and up to the date, the asset is put to use. Other borrowing costs are charged to the Statement of Profit and Loss in which they are incurred.

(11) TAX ON INCOME

(a) Current Tax

Provision for Income Tax is determined in, accordance with the provisions of Income Tax Act,1961

(b) Deferred Tax

Deferred Tax is recognised on timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period(s).

(12) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision involving substantial degree of estimation in measurement are recognized 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 recognized but are disclosed in the notes. Contingent Assets are neither recognized not disclosed in the financial statement.

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Mar 31, 2014

(1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

i) The financial statements have been prepared under the historical cost conventional method in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the company.

ii) The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

(2) USE OF ESTIMATES

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statement and notes thereto. Differences between actual and estimates are recognized in the period in which the results are known/ materialized.

(3) FIXED ASSETS

Fixed Assets are stated at cost. Cost includes installation Charges and allocated expenditure (including Finance Charges) during construction/installation period wherever applicable.

(4) DEPRECIATION

Depreciation on fixed assets is provided on straight-line method at the rates and in the manner prescribed in schedule XIV of the Companies Act 1956.

(5) IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. 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 recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(6) VALUATION OF INVENTORIES

Inventories are valued at the lower of the cost and estimated net realisable value. Cost of inventories is computed on a weighted average/FIFO basis. Finished Goods and Work in process includes Raw Material Cost, Cost of conversion and other costs in bringing the inventories to their present location and conditions.

(7) FOREIGN CURRENCY TRANSACTIONS

Foreign Currency transactions are accounted at the exchange rates prevailing on the date of transactions. Foreign Currency assets and current liabilities outstanding at the Balance Sheet date are translated at the exchange rate prevailing on that the date and the resultant gain or loss is recognized in the Statement of Profit & Loss. In cases where they relate to the acquisition / construction of fixed assets, they are adjusted to the carrying cost of fixed assets.

(8) SALES & EXCISE

(a Sales are inclusive of excise duty.

(b Income from carbon credit is recognised on the delivery of the carbon credits to the customers'' account as evidenced by the receipt of confirmation of execution of delivery instructions.

(c Excise Duty has been accounted for on the basis of both payments made in respect goods cleared as also provision made for the goods lying in the bonded warehouses. Amount of Excise Duty deducted from sale is relatable to the sale made during the year and the amount recognized separately in the Statement of Profit & Loss is relatable to difference between closing stock and opening stock. Amount of Cenvat credits in respect of material consumed is deducted from cost of material.

(9) RETIREMENT BENEFIT

(i) Contribution to Provident Fund is accounted for on accrual basis.

(ii) Gratuity under the Payment of Gratuity Act is provided for on actuarial basis.

(10) BORROWING COST

Borrowing costs directly attributable to the acquisition or construction of fixed assets are capitalised as part of the cost of assets and upto the date, the asset is put to use. Other borrowing costs are charged to the Statement of Profit and Loss under the head, they are incurred.

(11) TAX ON INCOME

(a) Current Tax

Provision for Income Tax is determined in, accordance with the provisions of Income Tax Act,1961

(b) Deferred Tax

Deferred Tax is recognised on timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period(s).

(12) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision involving substantial degree of estimation in measurement are recognized 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 recognized but are disclosed in the notes. Contingent Assets are neither recognized not disclosed in the financial statement.

(i) Equity Shares :

The Equity Shareholders have:

-The right to receive dividend out of balance of net profits remaining after payment of dividend to the preference shareholders. The dividend proposed by Board of Directors is subject to approval of shareholders in the ensuing general meeting.

-The Company has only one class of Equity Shares having face value of Rs. 10/- each and each shareholder is entitled to one vote per share.

-In the event of winding up, the equity shareholders will be entitled to receive the remaining balance of assets if any, after preferential payments and to have a share in surplus assets of the Company, proportionate to their individual shareholding in the paid up equity capital of the Company.

(ii) Preference Shares:-

The cumulative redeemable preference shareholders have:-

-The right to receive a fixed cumulative preferential dividend at specified rate on the paid up capital.

-The right to receive arrears of cumulative dividend, if any, whether earned or declared, at the time of redemption of the said shares, and,

-The right in a winding up to have the capital paid up on such shares and the arrears, if any, of the said preferential dividend, whether earned or declared, be paid off in priority to any payment of capital on equity shares. However, it shall not confer the right to any further participation in the profits or assets of the Company.

Terms of Redemption:- The company has preference shares having a par value of Rs. 100 per share. Resolution passed by the shareholders of the company at their annual general meeting held on 08.09.2009 to convert the Preference Shares into Equity Shares could not be given effect in absence of in-principle approval from Bombay Stock Exchange, which has been kept in abeyance due to earlier listing issues yet to resolved in SEBI for conversion of equity share application money into equity share capital.

Reconciliation of number of equity shares outstanding at the beginning and at the end of the year

(1) Term loan from Bank of Baroda is secured against hypothecation of Plant & Machinery, Land & Building (both present & future) of the Company and extension of hypothecation over stock & book debts of the company and also personal guarantee of Directors/Promoters of the Company.

From Bank of Baroda (for term loan of Rs. 3236 Lacs)

At the rate of 11.50% (Previous year 11.00% p.a.). Repayable in 27 quarterly installments of Rs. 115.57 lacs each and last installments of Rs. 115.61 lacs starting from 01.04.2013.

From Bank of Baroda (for FITL of Rs. 471 Lacs)

At the rate of 11.00%.(Previous year 11.00% p.a.). Repayable in 27 quarterly installments of Rs. 16.82 lacs each and last installments of Rs. 16.86 lacs starting from 01.04.2013.

From Bank of Baroda (for FITL of Rs. 388 Lacs)

At the rate of 11.00%.(Previous year 11.00% p.a.). Repayable in 27 quarterly installments of Rs. 13.86 lacs each and last installments of Rs. 13.78 lacs starting from 01.04.2013.

From Bank of Baroda (for WCTL of Rs. 1286 Lacs)

At the rate of 11.00%(Previous year 11.50% p.a.). Repayable in 27 quarterly installments of Rs. 45.93 lacs each and last installments of Rs. 45.89 lacs starting from 01.04.2013.

(2) Vehicles liabilities are secured by hypothecation of respective Vehicles and guaranteed by Directors of the Company.

From ICICI Bank Ltd. (for term loan of Rs 18 Lacs)

At the rate of 12%(Previous year 12.00% p.a.) . Repayable in 36 monthly installments (with interest) of Rs. 59778/- each, starting from 15.06.2011. From Bank of Baroda. (for term loan of Rs 6.40 Lacs)

At the rate of 12.25%(Previous year 12.25% p.a.). Repayable in 60 monthly installments (with interest) of Rs. 10666.67/- each, starting from 01.07.2012.

From Tata Motor Finance (for term loan of Rs. 10.53 Lacs)

At the rate of 12.24%. (Previous Year NIL). Repayable in 23 monthly installments (with interest) of Rs. 52600/- each, starting from 15.02.2014.

From Tata Motor Finance (for term loan of Rs. 10.53 Lacs)

At the rate of 12.24%. (Previous Year NIL). Repayable in 23 monthly installments (with interest) of Rs. 52600/- each, starting from 02.03.2014.

From Tata Motor Finance (for term loan of Rs. 10.53 Lacs)

At the rate of 12.24%. (Previous Year NIL). Repayable in 23 monthly installments (with interest) of Rs. 52600/- each, starting from 15.02.2014.

From Tata Motor Finance (for term loan of Rs. 9.90 Lacs)

At the rate of 12.24%. (Previous Year NIL). Repayable in 18 monthly installments (with interest) of Rs. 59750/- each, starting from 26.04.2013.

(3) Term loan from IDBI Bank is secured against:-

(i) First charge on the Carbon Credits receivables of the sale of Carbon Credits in a manner satisfactory to IDBI Bank. The company to obtain NOC from Bank of Baroda (BoB) and other charge holders, if any, to perfect the security.

(ii) Unconditional and irrevocable personal guarantees of Shri Pramod Agarwal ,Managing Director and Shri Arun Goel, Executive Director of the company.

Working Capital Tacinties Trom bank oT baroda are secured by

(i) Equitable Mortgage of land bearing khasra no. 174, 43, 44/1, 43, 33, 29, 42/2 situated at Village Nagla Islam, Pargana Kiratpur,Tehsil Nazibabad ,Distt. bijnore.

(ii) Hypothecation of Plant & Machinery, stocks and book Debts of the Company all situated at Kiratpur Distt.

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Mar 31, 2013

(1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

i) The fi nancial statements have been prepared under the historical cost conventional method in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the company.

ii) The Company generally follows mercantile system of accounting and recognises signifi cant items of income and expenditure on accrual basis.

(2) USE OF ESTIMATES

The preparation of fi nancial statements requires management to make certain estimates and assumptions that affect the amount reported in the fi nancial statement and notes thereto. Differences between actual and estimates are recognized in the period in which the results are known/ materialized.

(3) FIXED ASSETS

Fixed Assets are stated at cost. Cost includes installation Charges and allocated expenditure (including Finance Charges) during construction/installation period wherever applicable.

(4) DEPRECIATION

Depreciation on fi xed assets is provided on straight-line method at the rates and in the manner prescribed in schedule XIV of the Companies Act 1956.

(5) IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profi t and Loss in the year in which an asset is identifi ed as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(6) VALUATION OF INVENTORIES

Inventories are valued at the lower of the cost and estimated net realisable value. Cost of inventories is computed on a weighted average/FIFO basis. Finished Goods and Work in process includes Raw Material Cost, Cost of conversion and other costs in bringing the inventories to their present location and conditions.

(7) FOREIGN CURRENCY TRANSACTIONS

Foreign Currency transactions are accounted at the exchange rates prevailing on the date of transactions. Foreign Currency assets and current liabilities outstanding at the Balance Sheet date are translated at the exchange rate prevailing on that the date and the resultant gain or loss is recognized in the Statement of Profi t & Loss. In cases where they relate to the acquisition / construction of fi xed assets, they are adjusted to the carrying cost of fi xed assets.

(8) SALES & EXCISE

(a) Sales are inclusive of excise duty.

(b) Income from carbon credit is recognised on the delivery of the carbon credits to the customers'' account as evidenced by the receipt of confi rmation of execution of delivery instructions.

(c) Excise Duty has been accounted for on the basis of both payments made in respect goods cleared as also provision made for the goods lying in the bonded warehouses. Amount of Excise Duty deducted from sale is relatable to the sale made during the year and the amount recognized separately in the Statement of Profi t & Loss is relatable to difference between closing stock and opening stock. Amount of Cenvat credits in respect of material consumed is deducted from cost of material.

(9) RETIREMENT BENEFIT

(i) Contribution to Provident Fund is accounted for on accrual basis.

(ii) Gratuity under the Payment of Gratuity Act is provided for on actuarial basis.

(10) BORROWING COST

Borrowing costs directly attributable to the acquisition or construction of fi xed assets are capitalised as part of the cost of assets and upto the date, the asset is put to use. Other borrowing costs are charged to the Statement of Profi t and Loss under the head, they are incurred.

(11) TAX ON INCOME

(a) Current Tax

Provision for Income Tax is determined in, accordance with the provisions of Income Tax Act,1961

(b) Deferred Tax

Deferred Tax is recognised on timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period(s).

(12) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outfl ow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized not disclosed in the fi nancial statement.

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Mar 31, 2012

(1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

i) The financial statements have been prepared under the historical cost conventional method in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the company.

ii) The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

(2) USE OF ESTIMATES

The preparation of financial statements requires management to make certain estimates and assumption that affect the amount reported in the financial statement and notes thereto. Differences between actual and estimates are recog- nized in the period in which the results are known/materialized.

(3) FIXED ASSETS

Fixed Assets are stated at cost. Cost includes installation Charges and allocated expenditure (including Finance Charges) during construction/installation period wherever applicable.

(4) DEPRECIATION

Depreciation on fixed assets is provided on straight-line method at the rates and in the manner prescribed in schedule XIV of the Companies Act 1956,

(5) IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value, 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 recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(6) VALUATION OF INVENTORIES

Inventories are valued at the lower of the cost and estimated net realisable value, Cost of inventories is computed on a weighted average/FIFO basis, Finished Goods and Work in process includes Raw Material Cost. Cost of conversion and other costs in bringing the inventories to their present location and conditions.

(7) Foreign Currency Transactions

Foreign Currency transactions are accounted at the exchange rates prevailing on the date of transactions. Foreign Currency assets and current liabilities outstanding at the Balance Sheet date are translated at the exchange rate prevailing on that the date and the resultant gain or loss is recognized in the Statement of Profit & Loss. In cases where they relate to the acquisition/construction of fixed assets, they are adjusted to the carrying cost of fixed assets.

(8) SALES & EXCISE

(a) Sales are inclusive of excise duty.

(b) Income from carbon credit is recognised on the delivery of the carbon credits to the customers' account as evidenced by the receipt of confirmation of execution of delivery instructions.

(c) Excise Duty has been accounted for on the basis of both payments made in respect goods cleared as also provision made for the goods lying in the bonded warehouses. Amount of Excise Duty deducted from sale is relatable to the sale made during the year and the amount recognized separately in the Statement of Profit & Loss is relatable to difference between closing stock and opening stock. Amount of Cenvat credits in respect of material consumed is deducted from cost of material.

(9) RETIREMENT BENEFIT

(i) Contribution to Provident Fund is accounted for on accrual basis.

(ii) Gratuity under the Payment of Gratuity Act is provided for on actuarial basis.

(10) BORROWING COST

Borrowing costs directly attributable to the acquisition or construction of fixed assets are capitalised as part of the cost of assets and upto the date, the asset is put to use. Other borrowing costs are charged to the Statement of Profit and Loss under the head, they are incurred.

(11) TAX ON INCOME

(a) Current Tax Provision for Income Tax is determined in, accordance with the provisions of Income Tax Act, 1961

(b) Deferred Tax Deferred Tax is recognised on timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period(s)

(12) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision involving substantial degree of estimation in measurement are recognized 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 recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement.

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Mar 31, 2011

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

i) The financial statements have been prepared under the historical cost conventional method in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the company.

it) The Company generally follows mercantile system of accounting and recognises significant Items of income and expenditure on accrual basis.

B. FIXED ASSETS

Fixed Assets are stated at coat, Cost includes Installation Charges and allocated expenditure (Including Finance Charges) during construction/installation period wherever applicable.

C. DEPRECIATION

Depreciation on fixed assets is provided on straight-line method at the rates and In the manner prescribed in schedule XIV of the Companies Act 1956.

D. IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The inpayment ioss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

E. VALUATION OF INVENTORIES

Inventories are vaiued at the lower of the cost and estimated net realisable value- Cost of inventories & computed on a weighted average/FIFO basis. Finished Goods and Work in Process includes Raw Material Cost, Cost of conversion and other costs in bringing the inventories to their present location and conditions.

F. SALES

a) Sales are inclusive of excise duty.

b) Income from carbon credit is recognised on the delivery of the carbon credits to the customers' account as evidenced by the receipt of confirmation of execution of delivery instructions.

G. EXCISE DUTY

Excise Duty has been accounted for on the basis of both payments made in respect of goods cleared as also provision made for the goods lying in the bonded warehouses. Amount of Excise Duty deducted from sate is relatable to the sale made during the year and the amount recognized separately in the statement of Profit & loss Account Is relatabte to difference between closing stock and opening stock, Amount of Cenvat credits in respect of material consumed is deducted from cost of material.

H. RETIREMENT BENEFIT

(i) Contribution to Provident Fund is accounted for on accrual basis.

ii) Gratuity under the Payment of Gratuity Act is provided for on actuarial basis.

I. INSURANCE CLAIMS

Insurance Claim is acccounted for on receipt basis.

J. BORROWING COST

Sorrowing costs directly attributable to the acquisition or construction of fixed assets are capitalised as part of the cost of assets and upto the date, the asset is put to use, Other borrowing costs are charged to She profit and loss account under the head, they are incurred.

K. TAX ON INCOME

(a) Current Tax

Provision tor Income Tax is determined in, accordance with the provision of Income Tax Act, 1961.

(b) Deferred Tax

Deferred Tax ts recognised on timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period(s).

L. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision involving substantial degree of estimation in measurement are recognized 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 recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement