Accounting Policies of Rajnish Retail Ltd. Company

Mar 31, 2025

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESA. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material respects with the Accounting Standards specified under section 133 of the Companies Act, 2013 ("the Act") read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of the Companies Act, 2013. All assets and liabilities have been classified as current or non-current as per the criteria set out in the schedule III to the Companies Act, 2013.

B. USE OF ESTIMATES

The preparation of financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent liabilities as on the date of the financial statements and the reported amounts of revenues and expenses during the period reported. Although, these estimates are based upon management''s knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognized in the current and future periods.

C. FIXED ASSETS

Fixed Assets are stated at cost of acquisition less accumulated depreciation/ amortization. Costs include all expenses directly attributable to bring the assets to its present location and condition.

None of the assets were revalued during the course of the year.

D. DEPRECIATION AND AMORTISATION

Depreciation on the tangible assets is provided as per Schedule II of the Companies Act, 2013 or as prescribed by the Management based on technical evaluation. Depreciation for assets purchased/sold during a period is proportionately charged.

E. INVENTORIES

Inventories are valued lower of Cost or Net Realizable Value.

F. IMPAIRMENT OF ASSETS

The carrying amount of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

G. EARNINGS PER SHARE

Basic Earnings Per Share is calculated by dividing the net profit or loss for the year attributable to Equity Shareholders by the weighted average number of equity shares outstanding during the year.

H. REVENUE RECOGNITION

The Company recognizes income on accrual basis. Sales are recognized when significant risks and rewards are transferred to the buyer as per the contractual terms or on dispatch where such dispatch coincides with transfer of significant risks and rewards to the buyer. However, where the ultimate collection of the same lacks reasonable certainty, revenue recognition is postponed to the extent of uncertainty.

I. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving a 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 Financial Statements. Contingent Assets are neither recognized nor disclosed in the Financial Statements.

J. INVESTMENTS

Long Term investments are stated at cost and provision is made when there is a decline, other than temporary, in the value thereof. Current Investments are carried at lower of cost and market value.

K. BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit and Loss.

L. FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

M. EMPLOYEE BENEFITS

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit & Loss. Account of the year in which the related service is rendered.

N. PROVISION FOR CURRENT AND DEFERRED TAX

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred Tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in future.

Mar 31, 2024

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A BASIS OF PREPARATION OF FINANCIAL STATEMENTS

B USE OF ESTIMATES

C FIXED ASSETS

Fixed Assets are stated at cost of acquisition less accumulated depreciation/ amortization. Costs include all expenses directly attributable to bring the assets to its present location and condition. None of the assets were revalued during the course of the year.

D DEPRECIATION AND AMORTISATION

E INVENTORIES

Inventories are valued lower of Cost or Net Realizable Value.

F IMPAIRMENT OF ASSETS

G EARNINGS PER SHARE

Basic Earnings Per Share is calculated by dividing the net profit or loss for the year attributable to Equity Shareholders by the weighted average number of equity shares outstanding during the year.

H REVENUE RECOGNITION

Mar 31, 2023

Significant Accounting Policies

Basis of preparation of Financial Statements

These financial statementreaprepared in accordance with Indian Accounting Standards (Ind AS) under the
historical cost convention on the accrual basis except for certain financial instruments which are measurec
fair values. The Ind AS are prescribed under Section B3 of tfoeeadctwith Rule 3 of the Companies
(Indian Accounting Standards) Rules, 205 and Companies (Indian Accounting Standards) Amendment
Rules, 206

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

All amounts included in the financial statementspnesentedin Indian rupee^âINRâ).

Use of Assumptions, Estimates and Judgments

The prparation of financial statements conformity with Ind ASequires the management to make
estimates judgments and assumptions that affect thpplication of accounting policies and threported
amounts of assets and liabilitjedie disclosure of contingt assets andiabilities on the date of the financial
statement sand reported amounts of revenues and expenses during the period! estimates and assumptions
used in the accompanying financial statements are based upon managementâs evaluation of the re levant facts
and circumstances as of the date of the financial statements. Actual results could differ from those estim;
Any revision to accounting estimates is recognised prospectively in current and future periods.

Current versus Non-current classification

The companypresents assets and liabilities in the balance sheet based on current/mornt classification.

An asset i sreated as current when it is:

â¢ Expected to be realized or intended to be sold or consumed in normal operating; cycle

â¢ Held primarily for the purpose of trading

â¢ Expected to be realized within twelve months after the reporting per iod, or

â¢ Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at lea
twelve months after the reporting^- ind

All other assets are classified as -nonrent .

A liability is current when:

â¢ It is expected to be settled in normal operating cycle

â¢ It is held primarily for the purpose of trading

â¢ It is due to be settled within twelve months after the reposing pr

â¢ There is no unconditional right to defer the settlement of the liability for at least twelve months a
the reportin period

All other liabilitieare classifieds non-current .

Deferred tax asseiiabilities are classified as n-current .

Revenue Recognition

The revenues are recognised when the general revenue recognition criteria given in Ind AS 15 are met.

Revenue is recognized upon transfer of control of promised products or services to customers in an amou
that reflects the consrdtion we expect to receive in exchange for those products or services.

The Company measures the revenues at fair value of the consideration received or receivable after taking in
account the amount of any discount or rebates allowed to the custolnbe sCompany presents revenues net
of indirect taxes collected in its statement of profit an d loss.

Advances received for services and products are reported as âAdvance received against salesâ until all
conditions for revenue recognition are met.

Sale of Goods

Revenue from sale of products is recognised when the significant risks and rewards of ownership of the goo<
have passed to the buyer. Revenue is recognised to the extent that it is probable that the economic benefits w
flow to the Company andan be reliably measured.

Interest Income

Interest income is recorded using the Effective Interest Rate (EIR). EIR is the rate that exactly discount
estimated future cash payments or receipts over the expected life of the financial instrument ter a sh
period, where appropriate, to the gross carrying amount of the financial assets or to the amortised cost ol
financial liability. When calculating the EIR, the Company estimates the expected cash flows by considering
all the contractual terms of fheincial instruments (for exampprepayment and extension), but does not
consider the expected credit losses.

Other Incomes

Service income is recognized on rendering of services at a point in time.

Profit on sale of investments is recorded on taransf title from the Company and is determined as the
difference between the sale price and carrying value of the investment.

Property, Plant and Equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company.

All Property, Plant and Equipme(SPE) are stated at carrying v^laeoriginal cost net of tax / duty credit
availed, less accumulated depreciation and accumulated impairment los ses.

The cost of an item of property, plant and equipnisnfecognized as an asset if, and only if it is probable that
future economic benefits associated with the item will flow e ocompany and the cost of the item can be
measured reliably. The cost of an item of PPE is the cash price equivalent at the recognition date.

The cost of an item of PPE compriPesrchase price, including import duties and -rorfundable purchase
taxes, affer deducting trade discountrpbates Costs directly attributable to bringing the PPE to the location
and condition necessary for it to capable of operating in the manner intended by management.

The company has chosen the cost modfor recognition and this models applied to all class of assetAfter
recognition as an asset, an item of PPE is carried at its cost less any accumpratoidticon and any
accumulated impairment losse s.

Property, plant and equipment are eliminated from financial statement on disposal. Gains or losses arisin
from disposal of property, plant and equipment are recognized in the statement of profit and hosyear of
occurrence .

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

Depreciation and Amortization

The depreciable amount of an item of Partye Plant and Equipment (PPE) is allocated on a straight line basis
over its useful life. The residual value and the useful life of an asset are reviewed at each fin-aHcdal year
The Company depreciates its property, plant and equipment over the ui^6e''uiln the manner prescribed in
Schedule II to the Companies Act, 20Ebr on the basis of useful lives of the assets as estimated by
management, whichever is lowerThe residual value of all the assets is taken 5% of the cost of assets.

Intangible Assets

Intangible assets are recognised when it is probable that the future economic benefits that are attributable
the assets will flow to the Company and the cost of the asset can be measured reliably. Intangible assets a
carried at cost less accumuMtamortization and accumulated impairment losses, if any.

Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related
expenditure is reflected in profit and loss in the period in which the expendiitncrur red

The useful lives of intangible assets are assessed as either finite or indefinite. Theionnperib>dtand the
amortisationmethod for an intangible asset with a finite useful life are reviewed at least at theachid of
reporting period.Changes in the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset are considered to modify the amortisation period or method, as
appropriate, and are treated as changes in accounting estimates.

Intangible assets with finite lives are amortised over the estimated useful economic life of the assets by usi
straight line method and assessed for impairment whenever there is an indication that the intangible asset m
be impaired.

Gains or losses ariisg from derecognition of an intangible asset are measured as therdiffebetween the
net disposal proceeds and the carrying amount of asset and are recognized in thfeatement of profit and
loss when the asset is derecognized.

Borrowing Costs

Borrowing costs that are attributable to acquisition and construction of qualifying assets are capitalized till t
asset is ready for its intended use, based on borrowings incurred specifically for financing the asset or t
weighted average rate of all oth borrowings, if no specific borrowings have been incurred for the Alb et.
other borrowing costs are recognized as expenditure in the year in which they are incurred.

Foreign Currency Transactions

Functional currency

The functional currency of thenpany is Indian Rupees (âINRâ). These financial statements are presented in
Indian Rupees and althe values are rounded to the nearest Rupee, except otherwise indicated.

Transactions and translations

Foreigncurrency denominated monetary assets andbilaies are translated into the relevant functional
currency at exchange rates in effect at the balance sheet date. Gains and losses, if any, at- ethfe inear
respect of monetary assets and monetary liabilities not covered by the forward contracts fEerfed to
Profit & Loss Account except for Long Term Foreign Currency Monetary Items. Transaction gains or lo:
realized upon settlement of foreign currency transactions are included in determining net profit for the per
in which the transaction settled.

Non-monetary assets and nomonetary liabilities denominated in a foreign currency and measured at fair
value are translated at the exchange rate prevalent at the date when the fair value was determined. N
monetary assets and nonmonetary lilabies denominated in a foreign currency and measured at historical cost
are translated at the exchange rate prevalent at the date of the transaction.

Revenue, expense and cashflow items denominated in foreign currencies are translated into the r elevant
functional currencies using the exchange rate in effect on the date of the transaction.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at 1
rates prevailing at that daDifferences arising on tiibement or translation of monetary items are recognized
in profit or loss.

Inventories

Inventories are valued cost orn et realizable value whichever is lowefost is determined on FIFO basis.

Mar 31, 2014

A) Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting in accordance with the accounting principles generally accepted in India (GAAP) and provisions of the Companies Act 1956, read with the Companies (Accounting Standard) Rules, 2006 (Accounting Standard Rules) as well as applicable pronouncements of the Institute of Chartered Accountant of India.

b) Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

c) Revenue recognition

a) Sales are recorded net of trade discounts, sales tax/ value added tax, rebates and excise duty. Revenue from sale of products is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and can be reliably measured.

b) Interest income is recognised on time proportion basis.

d) Inventories:

Inventories are valued at cost or net realisable value, whichever is lower. Cost is determined on FIFO basis.

e) Investments

Investments are classified into non current investments and current investments. Investments which are intended to be held for more than one year are classified as non current investments and investments which are intended to be held for less than one year, are classified as current investments. Non current investments are stated at cost and a provision for diminution in value of non current investments is made only if the decline is other than temporary in the opinion of the management. Current investments are valued at cost or market/fair value whichever is lower.

f) Provisions, Contingent Liabilities and Contingent Asset

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

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

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the assets and related income are recognized in the period in which the change occurs.

g) Fixed assets and depreciation

i. Fixed assets are stated at cost of acquisition and installation less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use.

ii. Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956

iii. Expenses incurred on Project and other charges during construction period are included under pre-operative expenditure (grouped under Capital Work in Progress) and are allocated to the cost of Fixed Assets on the commencement of commercial operations.

h) Impairment of assets

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such condition exists, the company estimates the recoverable amount of the assets. If such recoverable amount of the asset or recoverable amount of the cash generating units to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account.

If at the Balance Sheet date there is an indication that if previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at revised recoverable amount.

i) Foreign currency transactions

a) Transactions denominated in foreign currency are normally recorded at the exchange rate prevailing at the time of transaction.

b) Any income or expenses on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account.

c) Monetary items denominated in foreign currencies at the year end are restated at the year end rates.

d) Non monetary items denominated in foreign currencies are carried at cost.

j) Taxation

a. Current Tax:

Provision for tax is based on the taxable profit for the accounting year after taking into consideration the relevant provisions of the Income Tax Act, 1961.

b. Deferred Tax:

Deferred tax resulting from timing difference between accounting and taxable income is accounted for using the tax rates and laws that are enacted or substantively enacted on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent there is a virtual certainty that the asset will be realised in future.

k) Borrowing Cost:

Interest and other costs incurred in connection with the borrowing of the funds are charged to revenue on accrual basis except those borrowing costs which are directly attributable to the acquisition or construction of those fixed assets, which necessarily take a substantial period of time to get ready for their intended use. Such costs are capitalized with the fixed assets.

l) Earnings per share

The basic earnings per share is computed by dividing the net profit / loss attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving earnings per share, and also the weighted average number of equity shares, which could have been issued on the conversion of all dilutive potential shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that reduce profit / loss per share are included.

m) Cash and cash equivalent

Cash and cash equivalent for the purpose of cash flow statement comprised cash at bank and cash in hand and other

Mar 31, 2013

A) Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention, on the accrual basis . ., of accounting in accordance with the accounting principles generally accepted in India (GAAP) and provisions of the Companies Act 1956, read with the Companies (Accounting Standard) Rules, 2006 (Accounting Standard Rules) as well as applicable pronouncements of the Institute of Chartered Accountant of India.

b) Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and file disclosure of contingent liabilities on the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

c) Revenue recognition

a) Sales are recorded net of trade discounts, sales tax/ value added tax, rebates and excise duty. Revenue from sale of products is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and can be reliably measured.

b) Interest income is recognised on time proportion basis.

d) Inventories: j

Inventories are valued at cost or net realisable value, whichever is lower. Cost is determined on FIFO basis. ]

e) Investments

Investments are classified into non current investments and current investments. Investments which are intended to be held for more than one year are classified as non current investments and investments which are intended to be held for less than one year, are classified as current investments. Non current investments are stated at cost and a provision for diminution in value of non current investments is made only if the decline is other than temporary in the opinion of the management. Current investments are valued at cost or market/fair value whichever is lower.

f) Provisions, Contingent Liabilities and Contingent Asset

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or present obligation in respect of which the likelihood of outflow of resource is remote, no provision or disclosure is made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed. Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the assets and related income are recognized in the period in which the change occurs. . -

g) Fixed assets and depreciation

i. Fixed assets are stated at cost of acquisition and installation less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use.

ii. Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 -;

iii. Expenses incurred on Project and other charges during construction period are included under pre-operative expenditure (grouped under Capital Work in Progress) and are allocated to the cost of Fixed Assets on the commencement of commercial operations.

h) Impairment of assets

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such condition exists, the company estimates the recoverable amount of the assets. If such recoverable amount of the asset or recoverable amount of the cash generating units to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account.

If at the Balance Sheet date there is an indication that if previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at revised recoverable amount.

i) Foreign currency transactions

a) Transactions denominated in foreign currency are normally recorded at the exchange rate prevailing at the time of transaction.

b) Any income or expenses on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account.

c) Monetary items denominated in foreign currencies at the year end are restated at the year end rates.

d) Non monetary items denominated in foreign currencies are carried at cost.

j) Taxation

a. Current Tax:

Provision for tax is based on the taxable profit for the accounting year after taking into consideration the relevant provisions of the Income Tax Act, 1961.

b. Deferred Tax:

Deferred tax resulting from timing difference between accounting and taxable income is accounted for using the tax rates and laws that are enacted or substantively enacted on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent there is a virtual certainty that the asset will be realised in future.

k) Borrowing Cost

Interest and other costs incurred in connection with the borrowing of the funds are charged to revenue on accrual basis except those borrowing costs which are directly attributable to the acquisition or construction of those fixed assets, which necessarily take a substantial period of time to get ready for their intended use. Such costs are capitalized with the fixed assets.

1) Earnings per share

The basic earnings per share is computed by dividing the net profit / loss attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving earnings per share, and also the weighted average number of equity shares, which could have been issued on the conversion of all dilutive potential shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that reduce profit / loss per share are included.

m) Cash and cash equivalent

Cash and cash equivalent for the purpose of cash flow statement comprised cash at bank and cash in hand and other short term investment with maturity of three months or less

Mar 31, 2012

A) Basis of preparation of financial statements

The financial statements have been prepared and presented tinder the historical cost convention' on the accrual basis of accounting in accordance with the accounting principles generally accepted in India (GAAP) and provisions of the Companies Act 1956' read with the Companies (Accounting Standard) Rules' 2006 (Accounting Standard Rules) as well as applicable pronouncements of the Institute of Chartered Accountant of India.

b) Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

c) Revenue recognition

a) Sales are recorded net of trade discounts' sales tax/ value added tax' rebates and excise duty. Revenue from sale of products is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and can be reliably measured.

b) Interest income is recognised on time proportion basis.

d) Inventories:

Inventories are valued at cost or net realisable value' whichever is lower. Cost is determined on FIFO basis.

e) Investments

Investments are classified into non current investments and current investments. Investments which are intended to be held for more than one year are classified as non current investments and investments which are intended to be held for less than one year' are classified as current investments. Non current t investments are stated at cost and a provision for diminution in value of non current investments is made only if the decline is other than temporary in the opinion of the management. Current investments are valued at cost or market/fair value whichever is lower.

f) Provisions' Contingent Liabilities and Contingent Asset

The Company creates a provision when there is present obligation as a result of a past event that probablyrequires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation

that may' but probably will not' require an outflow of resources. When there is a possible obligation or

present obligation in respect of which the likelihood of outflow of resource is remote' no provision or

disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is

no longer probable that the outflow of resources would be required to settle the obligation' the provision is

reversed.

Contingent assets are not recognised in the financial statements. However' contingent assets are assessed

continually and if it is virtually certain that an economic benefit will arise' the assets and related income

are recognized in the period in which the change occurs.

g) Fixed assets and depreciation

i. Fixed assets are stated at cost of acquisition and installation less accumulated depreciation. Cost is inclusive of freight' duties' levies and any directly attributable cost of bringing the assets to their working condition for intended use.

ii. Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act' 1956

iii. Expenses incurred on Project and other charges during construction period are included under pre- operative expenditure (grouped under Capital Work in Progress) and are allocated to the cost of Fixed Assets on the commencement of commercial operations.

h) Impairment of assets

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such condition exists' the company estimates the recoverable amount of the assets. If such recoverable amount of the asset or recoverable amount of the cash generating units to which the asset belongs is less than its carrying amount' the carrying amount is reduced to its recoverable amount The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account

If at the Balance Sheet date there is an indication that if previously assessed impairment loss no longer exists' the recoverable amount is reassessed and the asset is reflected at revised recoverable amount i) Foreign currency transactions

a) Transactions denominated in foreign currency are normally recorded at the exchange rate prevailing at the time of transaction.

b) Any income or expenses on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account.

c) Monetary items denominated in foreign currencies at the year end are restated at the year end rates.

d) Non monetary items denominated in foreign currencies are carried at cost

j) Taxation

a. Current Tax:

Provision for tax is based on the taxable profit for the accounting year after taking into consideration the relevant provisions of the Income Tax Act' 1961.

b. Deferred Tax:

Deferred tax resulting from timing difference between accounting and taxable income is accounted for using the tax rates and laws that are enacted or substantively enacted on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent there is a virtual certainty that the asset will be realised in future. k) Borrowing Cost:

Interest and other costs incurred in connection with the borrowing of the funds are charged to revenue on accrual basis except those borrowing costs which are directly attributable to the acquisition or construction of those fixed assets' which necessarily take a substantial period of time to get ready for their intended use. Such costs are capitalized with the fixed assets.

l) Earnings per share The basic earnings per share is computed by dividing the net profit / loss attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving earnings per share' and also the weighted average number of equity shares' which could have been issued on the conversion of all dilutive potential shares. In computing dilutive earnings per share' only potential equity shares that are dilutive and that reduce profit / loss per share are included. m) Cash and cash equivalent

Cash and cash equivalent for the purpose of cash flow statement comprised cash at bank and cash in hand and other short term investment with maturity of three months or less.

Mar 31, 2010

A) Basic Accounting:

The Financial statements are prepared under the historical costs convention on an accrual basis and are in accordance with the requirement of the Companies Act, 1956.

b) Inflation:

Assets and Liabilities are recorded at historical cost to the company. These costs are not adjusted to reflect the changing value of purchasing power of money.

c) Sales:

Sale is invoiced on delivery of goods to the customers.

d) Fixed Assets:

All fixed assets are stated at cost of acquisition less accumulated depreciation.

e) Depreciation:

Depreciation on Fixed Assets is provided on written down value method as per the rates specified in Schedule XVI of the Companies Act,1956.

f) Inventories:

Raw material are accounted at cost, work in progress is accounted on material cost, Finished goods are accounted at lower of cost or net realizable value, store, spares and consumable are charged to revenue at the time of procurement.

Mar 31, 2009

A) Basic Accounting:

The Financial statements are prepared under the historical costs convention on ari accrual basis and are in accordance with the requirement of the Companies Act, 1956.

b) Inflation:

Assets and Liabilities are recorded at historical cost to the company. These costs are not adjusted to reflect the changing value of purchasing power of money.

c) Sales:

Sale is (invoiced on delivery of goods to the customers.

d) Fixed Assets:

All fixed assets are stated at cost of acquisition less accumulated depreciation.

e) Depreciation:

Depreciation on Fixed Assets is provided on written down value method as per the rates specified in Schedule XVI of the Companies Act,1956.

f) Inventories:

Raw material are accounted at cost, work in progress is accounted on material cost, Finished goods are accounted at lower of cost or net realizable value, store, spares and consumable are charged to revenue at the time of procurement.

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