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Accounting Policies of Rama Steel Tubes Ltd. Company

Mar 31, 2023

Significant Accounting Policies

3.1 Basis of Measurement

These standalone financial statements have been prepared
under the historical cost except for the following assets
and liabilities which have been measured at fair value:
. The standalone financial statements are presented in
Indian Rupees (''), which is the Company''s functional and
presentation currency and all amounts are rounded to the
nearest Lakh and two decimals thereof, except as stated
otherwise.

3.2 investment in Joint Venture

Interests in joint venture are accounted for using the equity
method, after initially being recognised at cost in the
standalone balance sheet. When the Group transacts with a
joint venture , profits and losses from transactions with the
joint venture are recognised in the balance sheet of Group
only to the extent of interests in the joint venture that are not
related to the Group.

The carrying amount of the investment is adjusted to
recognise changes in the Group''s share of net assets of the
joint venture since the acquision date. Goodwill relating to
the joint venture is included in the carrying amount of the
investment.

The Standalone Statement of Profit and Loss reflects the
Group''s share of the results of operations of the joint venture.
Any change in OCI of those investees is presented as part of

the Group''s OCI. In addition, when there has been a change
recognised directly in the equity of the joint venture, the
Group recognises its share of any changes, when applicable,
in the statement of changes in equity. Unrealised gains and
losses resulting from transactions between the Group and
the joint venture are eliminated to the extent of the interest
in the associate/joint venture. The aggregate of the Group''s
share of profit or loss of joint venture is shown on the face of
the Standalone Statement of Profit and Loss.

After application of the equity method, the Group determines
whether it is necessary to recognise an impairment loss on
its investment in its joint venture. At each reporting date, the
Group determines whether there is objective evidence that
the investment in the joint venture is impaired. If there is such
evidence, the Group calculates the amount of impairment
as the difference between the recoverable amount of the
joint venture and its carrying value, and then recognises the
loss as ''Share of Profit of joint venture'' in the Consolidated
Statement of Profit & Loss.

Upon loss of significant influence over the joint venture, the
Group measures and recognises any retained investment at
its fair value. Any difference between the carrying amount of
the joint venture upon loss of significant and the fair value
of the retained investment and proceeds from disposal is
recognised in the Standalone Statement of Profit & Loss.

3.3 Property, Plant and Equipment (PPE) and Capital Works in
Progess

Freehold Land is carried at historical cost. All other items
of Property plant and equipment are stated at cost, net of
accumulated depreciation and accumulated impairment
losses, if any. Cost comprises of the purchase price (net
of GST credits / duty credits wherever applicable) and all
direct costs attributable to bringing the asset to its working
condition for intended use and includes the borrowing costs
for qualifying assets and the initial estimate of restoration
cost if the recognition criteria is met. All other repair and
maintenance costs are recognised in the statement of
profit and loss as incurred. Software and licences which are
integral part of the PPE are capitalised along with respective
PPE. An item of property plant & equipment is de-recognised
upon disposal or when no future economic benefits are
expected from its use or disposal. The gain or loss arising
on the disposal or etirement of an item of property plant
and equipment is determined as the difference between the
sales proceeds and the carrying amount of the asset and is

recognised in the Statement of Profit and Loss on the date
of disposal or retirement. Capital work-in-progress includes
cost of property, plant and equipment under installation /
under development as at the balance sheet date. Advances
paid towards the acquisition of property, plant and equipment
outstanding at each balance of profit and loss if there has
been a change in the estimates used to determine the
recoverable amount. The carrying amount of the asset is
increased to its revised recoverable amount, provided that
this amount does not exceed the carrying amount that would
have been determined (net of any accumulated amortization
or depreciation) had no impairment loss been recognised
for the asset in prior years. A reversal of impairment loss is
recognised immediately in Statement of Profit and Loss.

3.4 Depreciation and Amortisation

i) Depreciation on the property, plant and equipment is
provided over the useful life of assets which is coincide
with the life specified in Schedule II to the Companies
Act, 2013. The range of useful lives of the Property,Plant
and Equipment are as follows:

Property, Plant &

Useful lives

Equipmen

in Years

Plant & equipment

8- 15

Building

5- 60

Office equipment

5

Vehicles

8-10

Furniture & fixtures

10

Computers

3- 6

The depreciation is provided based on the useful life of
assets specified in Schedule II to the Companies Act,
2013 on straight line method. The useful lives of assets
as mentioned above is on their single shift basis, if an
asset is used for any time during the year for double
shift, the depreciation will increase by 50% for that
period and in case of triple shift the depreciation shall
be calculated on the basis of 100%for that period.

ii) Property plant and equipment (PPE) which are added/
disposed- of during the year, depreciation is provided on
pro-rata basis from (up- to) the date on which the PPE is
available for use (disposed-of).

iii) Assets residual values and useful lives are reviewed
at each financial year end considering the physical
condition of the assets and benchmarking analysis

or whenever there are indicators for review of
residual value and useful life adjusted prospectively,
if appropriate. Freehold land is not depreciated.
Lease hold land is amortised over the period of lease.

iv) Free-hold land are not subject to amortisation.

3.5 intangible Assets

Intangible assets acquired separately are measured on
initial recognition at historical cost. Intangibles assets have
a finite life and are subsequently carried at cost less any
accumulated amortization and accumulated impairment
losses if any.

Intangible assets with finite lives are amortized over the
useful life and assessed for impairment whenever there
is an indication that the intangible asset may be impaired.
The amortization period and the amortization method for an
intangible asset with a finite useful life are reviewed at least
at the end of each 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 amortization period
or method, as appropriate, and are treated as changes
in accounting estimates. The amortization expense on
intangible assets with finite lives is recognized in the
statement of profit and loss unless such expenditure forms
part of carrying value of another asset.

Gains or losses arising from derecognition of an intangible
asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and
are recognized in the statement of profit or loss when the
asset is derecognized.

Amortization methods and estimated useful lives3.6 investment Property

Recognition: Investment property is recognised as an
asset when and only when, (a) it is probable that the future
economic benefits that are associated with the investment
property will flow to the company (b) the cost of the
investment property can be measured reliably.

initial Measurement:

(i) Investment property is initially recognised at cost
comprising the purchase price and directly attributable
transaction costs (e.g. legal services, transfer services)

(ii) The cost of a purchased investment property comprises
its purchase price and any directly attributable
expenditure. Directly attributable expenditure includes,
for example, professional fees for legal services,
property transfer taxes and other transaction costs.

(iii) The cost of an investment property is not increased by:

(a) start-up costs (unless they are necessary to bring
the property to the condition necessary for it to be
capable of operating in the manner intended by the
management

(b) operating losses incurred before the investment
property achieves the planned level of occupancy,
or

(c) abnormal amounts of wasted material, labour
or other resources incurred in constructing or
developing the property.

(iv) If payment for an investment property is deferred, its cost
is the cash price equivalent. The difference between this
amount and the total payments is recognised as interest
expense over the period of credit.

(v) The fair value of an asset for which comparable market
transactions do not exist is reliably measurable if (a)
the variability in the range of reasonable fair value
estimates is not significant for that asset or (b) the
probabilities of the various estimates within the range
can be reasonably assessed and used in estimating fair
value. If the entity is able to determine reliably the fair
value of either the asset received or the asset given
up, then the fair value of the asset given up is used to
measure cost unless the fair value of the asset received
is more clearly evident.

subsequent measurement:

(a) Subsequently investment property is carried at cost

model, which is cost less accumulated depreciation and
any accumulated impairment losses.

(b) Subsequent expenditures on investment property are
capitalised when it is probable that economic benefits
in excess of the original standards flow to the company,
otherwise it is charged to P&L.

Fair Value measurement:

The fair value of an investment property is being measured
on a continuing basis. However ,in exceptional cases,
there is clear evidence when the company first acquires
an investment property (or when an existing property first

becomes investment property after a change in use) that
the fair value of the investment property is not reliably
measureable on a continuing basis. This arises when ,and
only when, the market for comparable properties is inactive
and alternative reliable measurements of fair value are not
available.

Disposasls:

Investment property is derecognised (eliminated from
Balance Sheet) on disposal or when the investment
property is permanently withdrawn from use and no future
economic benefits are expected from its disposal. Gains or
losses arising from the retirement or disposal of investment
property is determined as the difference between the net
disposal proceeds and the carrying amount of the asset and
is recognised in profit or loss in the period of the retirement
or disposal.

Depreciation or Amortisation:

i. Depreciation on the investment property is provided
over the useful life of assets which is coincide with the
life specified in Schedule II to the Companies Act, 2013.
The range of useful lives of the Investment property are
as follows:

The depreciation is provided based on the useful life of
assets specified in Schedule II to the Companies Act,
2013 on straight line method. The useful lives of assets
as mentioned above is on their single shift basis, if an
asset is used for any time during the year for double
shift, the depreciation will increase by 50% for that
period and in case of triple shift the depreciation shall
be calculated on the basis of 100%for that period.

ii Investment property which are added/ disposed-
of during the year, depreciation is provided on
pro-rata basis from (up- to) the date on which the
investment property is available for use (disposed-of).

iii Assets residual values and useful lives are reviewed
at each financial year end considering the physical
condition of the assets and benchmarking analysis
or whenever there are indicators for review of
residual value and useful life adjusted prospectively,

if appropriate. Freehold land is not depreciated.
Lease hold land is amortised over the period of lease.
iv Free-hold land are not subject to amortisation.

3.7 impairment of non-financial assets

Property, plant and equipment and other non-financial
assets are evaluated for recoverability whenever events
or changes in circumstances indicate that their carrying
amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the higher
of the fair value less cost to sell and the value-in-use) is
determined on an individual asset basis unless the asset
does not generate cash flows that are largely independent
of those from other assets. In such cases, the recoverable
amount is determined for the Cash Generating Unit (CGU)
to which the asset belongs. If such assets are considered
to be impaired, the impairment to be recognised in the
Statement of Profit and Loss is measured by the amount
by which the carrying value of the assets exceeds the
estimated recoverable amount of the asset. An impairment
loss is reversed in the statement of profit and loss if there
has been a change in the estimates used to determine the
recoverable amount. The carrying amount of the asset is
increased to its revised recoverableamount, provided that
this amount does not exceed the carrying amount that would
have been determined (net of any accumulated amortization
or depreciation) had no impairment loss been recognised
for the asset in prior years. A reversal of impairment loss is
recognised immediately in Statement of Profit and Loss.

3.8 Cash and cash equivalents

Cash and cash equivalents includes cash on hand and at
bank, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three
months or less that are readily convertible to a known
amount of cash and are subject to an insignificant risk of
changes in value and are held for the purpose of meeting
short-term cash commitments. The cash flow statement has
been prepared under the indirect method as set out in Indian
Accounting Standard (IND AS ) 7 statement of cash flows.

3.9 inventories

Inventories are carried in the balance sheet as follows:

Raw material, stores & spares At lower of cost or net
realisable value, cost includes cost of purchases and other
cost incurred in bringing the inventories to their present
location and condition.

work-in Progress At lower of cost of material plus
appropriate production overheads or net realisable value

Finished Goods At lower of cost of materials plus production
overheads and excise duty (wherever applicable) or net
realisable value.

Purchased Goods in transit Valued at cost.

The cost of inventories comprises of cost of purchase, cost
of conversion and other related costs incurred in bringing
the inventories to their respective present location and
condition. Net realisable value is the estimated selling price
in the ordinary course of business, less estimated costs of
completion and the estimated costs necessary to make the
sale.

3.10 Employee benefits

Expenses and liabilities in respect of employee benefits are
recorded in accordance with Ind-AS 19 - Employee Benefits.

a) Defined contribution plan

(I) Provident Fund: Contribution to the provident fund
with the government at pre-determined rates is a
defined contribution scheme and is charged to the
statement of Profit and Loss. There are no other
obligations other than contribution to PF Schemes.

(II) National pension scheme : Contribution
to national pension scheme with the at
predetermined rates is a defined contribution
scheme and is charged to the statement of Profit
and Loss when employees have rendered services
entitling them to such benefit

b) Defined benefit plan gratuity : The Company provides for
gratuity, a defined benefit retirement plan (''the Gratuity
Plan'') covering eligible employees. The Gratuity Plan
provides a lumpsum payment to vested employees at
retirement, death, or termination of employment, of an
amount based on the respective employee''s salary and
the tenure of employment with the Company. Liabilities
with regard to the Gratuity Plan are determined by
actuarial valuation, performed by an independent
actuary, at each balance sheet date using the projected
unit credit method.

The company recognizes the net obligation of a defined
benefit plan in its balance sheet as an asset or liability.
Gains and losses through re-measurements of the
net defined benefit liability/ (asset) are recognised
in other comprehensive income. The actual return of
the portfolio of plan assets, in excess of the yields
computed by applying the discount rate used to
measure the defined benefit obligations is recognised
in Other Comprehensive Income. The effect of any

plan amendments are recognised in net profits in the
Statement of Profit and Loss.

c) Long term employee benefits: Provisions for other
long term employee benefits-compensated absences,
a defined benefit scheme, is made on the basis of
actuarial valuation at the end of each financial year
and are charged to the statement of profit and loss. All
actuarial gains or losses are recognised immediately in
the statement of profit and loss.

d) Other short-term employee benefits: All employee
benefits payable wholly within twelve months rendering
services are classified as short term employee
benefits. Benefits such as salaries, wages, short-term
compensated absences, performance incentives etc.
and the expected cost of bonus, ex-gratia are recognised
during the period in which the employee renders related
service.

3.11 foreign currency reinstatement and translation
initial Recognition:

On initial recognition, transactions in foreign currencies
entered into by the Group are recorded in the Functional
currency (i.e. Indian Rupees), by applying to the Foreign
currency amount, the spot exchange rate between the
Functional currency and the Foreign currency at the date
of transation. Exchange differences arising on foreign
exchange transations settled during the year are recognised
in the Standalone Statement of Profit and Loss.

Measurement of foreign currency items at reporting date:

Foreign currency monetary items of the Group are translated
at the closing exchange rates. Non-monetary items that
are measured at historical cost in a Foreign currecy, are
translated using the exchange rate at the date of the
translation. Non-monetary items that are measured at fair
value in a foreign currency, are translated using the exchange
rates at the date when the fair value is measured.

Exchange differences arising out of these translations are
recognised in the Standalone Statement of Profit and Loss.

3.12 leases

As a lessee The Company''s lease asset classes primarily
consist of leases for land. The Company assesses whether
a contract contains a lease, at inception of a contract. A
contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a
period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use

of an identified asset, the Company assesses whether: (i)
the contract involves the use of an identified asset (ii) the
Company has substantially all of the economic benefits
from use of the asset through the period of the lease and
(iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company
recognizes a right-of-use asset ("ROU") and a corresponding
lease liability for all lease arrangements in which it is a
lessee, except for leases with a term of twelve months or
less (short-term leases) and low value leases. For these
short-term and low value leases, the Company recognizes
the lease payments as an operating expense on a straight¬
line basis over the term of the lease.

Certain lease arrangements includes the options to extend
or terminate the lease before the end of the lease term. ROU
assets and lease liabilities includes these options when it is
reasonably certain that they will be exercised. The right-of-
use assets are initially recognized at cost, which comprises
the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the
lease plus any initial direct costs less any lease incentives.
They are subsequently measured at cost less accumulated
depreciation and impairment losses.

The lease liability is initially measured at amortized cost
at the present value of the future lease payments. The
lease payments are discounted using the interest rate
implicit in the lease or, if not readily determinable, using
the incremental borrowing rates in the country of domicile
of these leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset
if the Company changes its assessment if whether it will
exercise an extension or a termination option.

Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments have
been classified as financing cash flows.

3.13 Financial instruments

initial recognition: The Company recognises financial
assets and financial liabilities when it becomes a party to
the contractual provisions of the instrument. All financial
assets and liabilities are recognised at fair value on initial
recognition. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial
liabilities thar are not at fair value through profit or loss, are
added to or deducted from the fair value on initial recognition

Subsequent measurement:

i Financial assets carried at amortised cost: A financial
asset is subsequently measured at amortised cost if it is
held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and
the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments
of principal and interest on the principal amount
outstanding.

ii financial assets carried at fair value through
other comprehensive income:
A financial asset is
subsequently measured at fair value through other
comprehensive income if it is held within a business
model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and
the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments
of principal and interest on the principal amount
outstanding.

iii financial assets at fair value through profit or loss: A

financial asset which is not classified in any of (i) & (ii)
above categories are subsequently fair valued through
profit or loss.

v financial Liabilities: Financial liabilities are
subsequently carried at amortized cost using the
effective interest method. For trade and other payables
maturing within one year from the balance sheet date,
the carrying amounts approximate fair value due to the
short maturity of these instruments.

De-recognition

The company de-recognises of financial assets when
the contractual rights to receive cash flows from the
financial asset expire or transfer the financial asset
and transfer qualifies for de-recognition under IND
AS 109. A financial liability is derecognised when the
obligation under the liability is discharged or cancelled
or expires. The difference between the carrying amount
of a financial liability that has been extinguished is
recognised in profit or loss as other income.

Offsetting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the balance sheet
if there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the
liabilities simultaneously.

3.14 Derivative financial instruments

The Company uses derivative financial instruments, such as
forward contracts to hedge its foreign currency exposure. The
recognizing of the resulting gain or loss depends on whether
the derivative is designated as a hedging instrument, and
if so, on the nature of the item being hedged. Any gains or
losses arising from changes in the fair value of derivatives
are taken directly to profit or loss.

3.15 Borrowing costs

a) Borrowing costs that are attributable to the acquisition,
construction, or production of a qualifying asset are
capitalised as a part of the cost of such asset till such
time the asset is ready for its intended use or sale. A
qualifying asset is an asset that necessarily requires a
substantial period of time to get ready for its intended
use or sale.

b) All other borrowing costs are recognised as expense in
the period in which they are incurred.

3.16 Taxation

i Income tax expense represents the sum of current tax
and deferred tax. Tax is recognised in the Statement
of Profit and Loss, except to the extent that it relates
to items recognised directly in equity or other
comprehensive income.

ii Current tax provision is computed on Income calculated
after considering allowances and exemptions under the
provisions of the applicable Income Tax Laws

iii Provision for current income taxes and advance taxes
paid are presented in the balance sheet after offsetting
them on an assessment year basis.

iv Deferred tax is recognised on differences between
the carrying amounts of assets and liabilities in the
Balance sheet and the corresponding tax bases used
in the computation of taxable profit and are accounted
for using the Balance Sheet approach for all taxable
temporary differences to the extent that it is probable
that future taxable profits will be available. Deferred tax
assets and liabilities are measured at the applicable tax
rates and tax laws those are enacted or substantively
enacted. Deferred tax assets and deferred tax liabilities
are off set, and presented on net basis. The carrying
amount of deferred tax is reviewed at each balance
sheet date.The measurement of deferred tax liabilities
and assets reflects the tax consequences that would
follow from the manner in which the Company expects,
at the end of the reporting period, to recover or settle the

carrying amount of its assets and liabilities.

3.17 Revenue recognition

The revenue is recognised once the entity satisfied that the
performance obligation & controls are transferred to the
customers.

(a) sale of goods

The Company derives revenue from Sale of Goods
and revenue is recognized upon transfer of control
of promised goods to customers in an amount that
reflects the consideration the Company expects to
receive in exchange for those goods. To recognize
revenues, the Company applies the following five step
approach: ( 1) identify the contract with a customer, (2)
identify the performance obligations in the contract,
(3) determine the transaction price, (q) allocate
the transaction price to the performance obligations
in the contract, and (5) recognize revenues when
a performance obligation is satisfied. The Company
recognises revenue at point in time

Any change in scope or price is considered as a
contract modification. The Company accounts for
modifications to existing contracts by assessing
whether the services added are distinct and whether
the pricing is at the standalone selling price.

The Company accounts for variable considerations like,
volume discounts, rebates and pricing incentives to
customers as reduction of revenue on a systematic
and rational basis over the period of the contract.
The Company estimates an amount of such variable
consideration using expected value method or the single
most likely amount in a range of possible consideration
depending on which method better predicts the
amount of consideration to which we may be entitled.
Revenues are shown net of allowances/ returns,
goods and services tax and applicable discounts and
allowances.

(b) interest income

Interest income is recognized using the time proportion
basis, based on the underlying interest rates.

(c) Rental income

Rental income is recognized on a time-apportioned
basis in accordance with the underlying substance of
the relevant contract.

(d) Dividend income

Dividend is recognized when the company''s right to
receive the payment is established, which is generally
when shareholders approve the dividend.

3.18 Government grants / Assistance

Government grants/Assistance recognised where there is
reasonable assurance that the same will be received and all
elegibility criterias are met out If the grants/assistance are
related to subvention of a particular expense, it is deducted
form that expense in the year of recognition of government
grant / Assistance.

3.19 Dividend Distribution

Annual dividend distribution to the shareholders is
recognised as a liability in the period in which the dividends
are approved by the shareholders. Any interim dividend paid
is recognised on approval by Board of Directors. Dividend
payable and corresponding tax on dividend distribution is
recognised directly in equity.

3.20 Fair Value measurement

The Company measures financial instruments at fair value
at each balance sheet date. Fair value is the price that would
be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the
measurement date. The fair value measurement is based
on the presumption that the transaction to sell the asset
or transfer the liability takes place either: In the principal
market for the asset or liability, or In the absence of a
principal market, in the most advantageous market for the
asset or liability The principal or the most advantageous
market must be accessible by the Company.The fair value
of an asset ora liability is measured using the assumptions
that market participants would use when pricing the asset
or liability, assuming that market participants act in their
economic best interest. A fair value measurement of a non¬
financial asset takes into account a market participant''s
ability to generate economic benefits by using the asset in
its highest and best use or by selling it to another market
participant that would use the asset in its highest and
best use. The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the
use of unobservable inputs. All assets and liabilities for
which fair value is measured or disclosed in the financial
statements are categorised within the fair value hierarchy,
described as follows, based on the lowest level input that
is significant to the fair value measurement as a whole:

Level 1: Quoted (unadjusted) prices in active markets for
identical assets and liabilities

Level 2: Other techniques for which all inputs which have a
significant effect on the recorded fair value are observable
either directly or indirectly

level 3: Techniques which use inputs that have a significant
effect on the recorded fair value that are not based on
observable market data. For assets and liabilities that
are recognised in the financial statements on a recurring
basis, the Company determines whether transfers have
occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the
end of each reporting period. For the purpose of fair value
disclosures, the Company has determined classes of assets
& liabilities on the basis of the nature, characteristics and
the risks of the asset or liability and the level of the fair value
hierarchy as explained above.

3.21 Earnings per share

Basic earnings per equity share is computed by
dividing the net profit attributable to the equity
holders of the company by the weighted average
number of equity shares outstanding during the year.
Diluted earnings per equity share is computed by dividing the
net profit attributable to the equity holders of the company
by the weighted average number of equity shares considered
for deriving basic earnings per equity share and also the
weighted average number of equity shares that could have
been issued upon conversion of all dilutive potential equity
shares.


Mar 31, 2018

1. Significant Accounting Policies

1.1 Basis of Measurement

These standalone financial statements have been prepared under the historical cost except for the following assets and liabilities which have been measured at fair value: Certain Financial assets and liabilities measured at fair value (including derivative financial instruments). Defined benefit plan assets are measured at fair value. The standalone financial statements are presented in Indian Rupees (INR), which is the Company''s functional and presentation currency and all amounts are rounded to the nearest rupees and two decimals thereof, except as stated otherwise.

2.2 Property, Plant and Equipment (PPE)

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost comprises of the purchase price (net of GST credits / duty credits wherever applicable) and all direct costs attributable to bringing the asset to its working condition for intended use and includes the borrowing costs for qualifying assets and the initial estimate of restoration cost if the recognition criteria is met. All other repair and maintenance costs are recognised in the statement of profit and loss as incurred. Software and licences which are integral part of the PPE are capitalised along with respective PPE. The Company has elected to continue with the carrying value of all of its property, plant and equipment net of revaluation reserve as at the transition date, viz., 1 April 2016 measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date. Land and building revalued during the earlier years and credited to revaluation reserve have been reversed (net of amortisation till 1 April, 2016). An item of property, plant & equipment is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising on the disposal or etirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Profit and Loss on the date of disposal or retirement. Capital work-in-progress includes cost of property, plant and equipment under installation / under development as at the balance sheet date. Advances paid towards the acquisition of property, plant and equipment outstanding at each balance of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of impairment loss is recognised immediately in Statement of Profit and Loss.

3.3 Depreciation and Amortisation

i Depreciation on the property, plant and equipment is provided over the useful life of assets which is coincide with the life specified in Schedule II to the Companies Act, 2013. The range of useful lives of the Property,Plant and Equipment are as follows:

The depreciation has been provided based on the useful life of assets specified in Schedule II to the Companies Act, 2013 on written down value method upto March 31, 2017. With effect from April 1, 2017 the company changed the depreciation method from written down value method to Straight line mehtod. The useful lives of assets as mentioned above is on their single shift basis, if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of triple shift the depreciation shall be calculated on the basis of 100%for that period.

ii Property, plant and equipment (PPE) which are added/ disposed- of during the year, depreciation is provided on pro-rata basis from (up- to) the date on which the PPE is available for use (disposed-of).

iii Assets residual values and useful lives are reviewed at each financial year end considering the physical condition of the assets and benchmarking analysis or whenever there are indicators for review of residual value and useful life adjusted prospectively, if appropriate. Freehold land is not depreciated. Lease hold land is amortised over the period of lease.

iv Free-hold land are not subject to amortisation.

3.4 Impairment of non-financial assets

Property, plant and equipment and other non-financial assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. If such assets are considered to be impaired, the impairment to be recognised in the Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverableamount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of impairment loss is recognised immediately in Statement of Profit and Loss.

3.5 Cash and cash equivalents

Cash and cash equivalents includes cash on hand and at bank, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments. The cash flow statement has been prepared under the indirect method as set out in Indian Accounting Standard (IND AS ) 7 statement of cash flows.

3.6 Inventories

Inventories are carried in the balance sheet as follows: Raw material, Stores & Spares At lower of cost or net realisable value, cost includes cost of purchases and other cost incurred in bringing the inventories to their present location and condition. Work-in Progress At lower of cost of material plus appropriate production overheads or net realisable value Finished Goods At lower of cost of materials plus production overheads and excise duty (wherever applicable) or net realisable value. Purchased Goods in transit Valued at cost.

The cost of inventories comprises of cost of purchase, cost of conversion and other related costs incurred in bringing the inventories to their respective present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

3.7 Employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with Ind-AS 19 - Employee Benefits.

a) Defined contribution plan Provident Fund: Contribution to the provident fund with the government at pre-determined rates is a defined contribution scheme and is charged to the statement of Profit and Loss. There are no other obligations other than contribution to PF Schemes.

b) Defined benefit plan Gratuity: The Company provides for gratuity, a defined benefit retirement plan (''the Gratuity Plan'') covering eligible employees. The Gratuity Plan provides a lumpsum payment to vested employees at retirement, death, or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment with the Company. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each balance sheet date using the projected unit credit method.

The company recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/ (asset) are recognised in other comprehensive income. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligations is recognised in Other Comprehensive Income. The effect of any plan amendments are recognised in net profits in the Statement of Profit and Loss.

c) Long term employee benefits: Provisions for other long term employee benefits-compensated absences, a defined benefit scheme, is made on the basis of actuarial valuation at the end of each financial year and are charged to the statement of profit and loss. All actuarial gains or losses are recognised immediately in the statement of profit and loss.

d) Other Short-term employee benefits: All employee benefits payable wholly within twelve months rendering services are classified as short term employee benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc.and the expected cost of bonus, ex-gratia are recognised during the period in which the employee renders related service.

3.8 Foreign currency reinstatement and translation

a) Functional and presentation currency Standalone financial statements have been presented in Indian Rupees (INR), which is the Company''s functional and presentation currency.

b) Transactions and balances Transactions in currencies other than the entity''s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Nonmonetary items are measured in terms of historical cost in foreign currencies and are therefore not retranslated.

3.9 Financial instruments

Initial recognition: The Company recognises financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognised at fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities thar are not at fair value through profit or loss, are added to or deducted from the fair value on initial recognition. Subsequent measurement:

i Financial assets carried at amortised cost: A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

ii Financial assets carried at fair value through other comprehensive income: A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

iii Financial assets at fair value through profit or loss: A financial asset which is not classified in any of (i) & (ii) above categories are subsequently fair valued through profit or loss.

v Financial Liabilities: Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

De-recognition

The company de-recognises of financial assets when the contractual rights to receive cash flows from the financial asset expire or transfer the financial asset and transfer qualifies for de-recognition under IND AS 109. A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. The difference between the carrying amount of a financial liability that has been extinguished is recognised in profit or loss as other income.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

3.10 Derivative financial instruments

The Company uses derivative financial instruments, such as forward contracts to hedge its foreign currency exposure. The recognizing of the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, on the nature of the item being hedged. Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss.

3.11 Borrowing costs

a) Borrowing costs that are attributable to the acquisition, construction, or production of a qualifying asset are capitalised as a part of the cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

b) All other borrowing costs are recognised as expense in the period in which they are incurred.

3.12 Taxation

i Income tax expense represents the sum of current tax and deferred tax. Tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised directly in equity or other comprehensive income.

ii Current tax provision is computed on Income calculated after considering allowances and exemptions under the provisions of the applicable Income Tax Laws.

iii Provision for current income taxes and advance taxes paid are presented in the balance sheet after offsetting them on an assessment year basis.

iv Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the Balance sheet and the corresponding tax bases used in the computation of taxable profit and are accounted for using the Balance Sheet approach for all taxable temporary differences to the extent that it is probable that future taxable profits will be available. Deferred tax assets and liabilities are measured at the applicable tax rates and tax laws those are enacted or substantively enacted. Deferred tax assets and deferred tax liabilities are off set, and presented on net basis. The carrying amount of deferred tax is reviewed at each balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3.13 Revenue recognition and other income

a) Revenue from the sale of goods and services are measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts, rebates and incentives etc. Sales exclude Goods and Service Tax.

b) Revenue from the sale of goods is recognised, when all the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably and no significant uncertainty exists regarding the amount of Consideration that will be derived from the sales of goods.

c) Revenue from Services is recognised as per terms of the contract with customers based on stage of completion when the outcome of the transaction involving rendering of services can be estimated reliably.

d) Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same and there is reasonable assurance that the Company will comply with the conditions attached to them.

e) Other Income Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

3.14 Government grants / Assistance

Government grants/Assistance recognised where there is reasonable assurance that the same will be received and all elegibility criterias are met out If the grants/assistance are related to subvention of a particular expense, it is deducted form that expense in the year of recognition of government grant / Assistance.

3.15 Dividend Distribution

Annual dividend distribution to the shareholders is recognised as a liability in the period in which the dividends are approved by the shareholders. Any interim dividend paid is recognised on approval by Board of Directors. Dividend payable and corresponding tax on dividend distribution is recognised directly in equity.

3.16 Fair Value measurement

The Company measures financial instruments at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: In the principal market for the asset or liability, or In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company. The fair value of an asset ora liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1: Quoted (unadjusted) prices in active markets for identical assets and liabilities

Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable either directly or indirectly

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data. For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. For the purpose of fair value disclosures, the Company has determined classes of assets & liabilities on the basis of the nature, characteristics and the risks of the asset or liability and the level of the fair value hierarchy as explained above.

3.17 Earnings per share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

3.18 Provisions

a) Provisions Provisions (excluding employee benefits) are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using equivalent period government securities interest rate. Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimate.

b) Contingencies Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes to the Financial Statements. Contingent assets are not recognised. However, when the realisation of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognised as an asset.

3.19 Investment in associates

An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Investment in associates are valued at cost less impairment. As per the IND AS 101 first time adoptions of Indian accounting standard, company has opted to continue with the previous GAAP carrying amount.

3.20 Research and development costs

Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when the Company can demonstrate:

a) The technical feasibility of completing the intangible asset so that the asset will be available for use or sale.

b) Its intention to complete and its ability and intention to use or sell the asset

c) How the asset will generate future economic benefits

d) The availability of resources to complete the asset

e) The ability to measure reliably the expenditure during development

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected future benefit. Amortisation expense is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

4. Critical accounting estimates, assumptions and judgements

In the process of applying the Company''s accounting policies, management has made the following estimates, assumptions and judgements, which have significant effect on the amounts recognised in the financial statement:

a) Property, plant and equipment - Useful lives of assets The Company reviews the useful life of assets at the end of each reporting period. This reassessment may result in change in depreciation expenses in future periods.

b) Warranties The Company generally offers Warranties for its consumer products and the liability towards warranty related costs are recognized in the year of sales or service provided to the customers. Management ascertain and measure the liability for warranty claims based on historical experience and trend. The assumptions made in relation to current year are consistent of those are in prior years.

c) Provision and Contingencies A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Contingent liabilities are disclosed in the notes. Contingent assets are not recognised in the financial statements.


Mar 31, 2016

1) Basis of Preparation of Financial Statement

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act. 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and relevant provisions of the Companies Act, 2013 (“the 2013 Act”) / Companies Act,1956 (“the 1956 Act”), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2) Fixed Assets

a) Fixed Assets are stated at cost net of duty credit availed less accumulated depreciation and impairments, if any. The cost includes cost of acquisition/construction, installation and preoperative expenditure including trial run expenses (net of revenue) and borrowing costs incurred during pre-operation period. Expenses incurred on capital assets are carried forward as capital work in progress at cost till the same are ready for use.

b) Pre-operative expenses, including interest on borrowings for the capital goods, where applicable incurred till the capital goods are ready for commercial production, are treated as part of the cost of capital goods and capitalized.

c) Machinery spares which are specific to particular item of fixed assets and whose use is irregular are capitalized as part of the cost of machinery

3) Impairment of Assets

The Company recognizes all the losses as per Accounting Standard -28 due to the impairment of assets in the year of review of the physical conditions of the Assets and is measured by the amount by which, the carrying amount of the Assets exceeds the Fair Value of the Asset.

4) Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation on tangible fixed assets have been provided on the written down-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

5) inventories Valuation

Raw material is valued at cost (First in First Out basis) or nets realizable value whichever is lower. Finished Goods are valued at cost or net realizable value whichever is lower. Stock of Scrap is valued at net realizable value. Stock of Trading Goods is valued at Cost (Weighted Average/ First in First Out basis).

6) Foreign Exchange Transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. All exchange differences are dealt within profit and loss account. Current assets and current liabilities in foreign currency outstanding at the year end are translated at the rate of exchange prevailing at the close of the year and resultant gains/losses are recognized in the profit and loss account of the year except in cases where they are covered by forward foreign exchange contracts in which cases these are translated at the contracted rates of exchange and the resultant gains/losses recognized in profit and loss account over the life of the contract.

7) Duties & Credits

a) Excise Duty is accounted for at the time of clearance of goods except closing stock of finished goods lying at the works.

b) Cenvat Credit, to the extent available during the year, is adjusted towards cost of materials.

c) Duty credit on export sales has been taken on accrued basis whether license has been issued after closing of the financial year.

8) Sales are inclusive of excise duty and after deducting the trade discount and also sales tax applicable.

9) Retirement Benefits

a) The total accrued liability in respect of employees covered by the Payment of Gratuity Act, 1972, as actuarially determined in accordance with the relevant provisions of AS-15 issued by ICAI, and not provided for amounts to Rs.37,11,744/- (Previous Year Rs.44,77,787/-).

b) LeaveEncashmenttoRs.3,31,750/-(PreviousYearRs.3,94,194/-) has been not provided for.

10) Borrowing Cost

Borrowing cost is charged to the Profit & Loss Account, except cost of borrowing for the acquisition of qualifying assets, which is capitalized till the date of commercial use of the assets. In compliance of AS-16, the Borrowing Cost amounting to Rs.43,41,385/-(PreviousYearRs.91,06,056/-) has been capitalized during the year to the corresponding Capital Assets.

11) Taxes on income

Provision for current tax is made considering various allowances, disallowances and benefits available to the Company under the provisions of Income Tax Law.

In accordance with Accounting Standard AS-22 “Accounting for Taxes on income” issued by the Institute of Chartered Accountants of India, deferred taxes resulting from timing differences between book and tax profits are accounted for at tax rate substantively enacted by the Balance Sheet date to the extent the timing differences are expected to be crystallized.

12) Revenue Recognition

Sale of goods is recognized when the risk and reward of ownership are passed on to the customers. Revenue from services is recognized when the services are complete.

13) investments

Long term investments are carried at cost less provision for permanent diminution, if any, in value of such investments. Diminution, if any, in the value of Long Term Investment in respect of equity shares in Partap Industries Limited has not been provided for since the Management is of the opinion that reduction in the value of investment is of the temporary nature considering to inherent value and nature of investee’s business and hence no provision is required. Current investments are carried at lower of cost and fair value. Income/ Loss from investments are recognized in the year in which it is generated.

14) Provision and Contingencies

The company creates a provision when there is a present obligation as a result of past event that requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a present obligation that may require an outflow of resources or where a reliable estimate of such obligation cannot be made.

15) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated

16) Earnings per Share

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


Mar 31, 2015

1) Basis of Preparation of Financial Statement

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act. 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and relevant provisions of the Companies Act, 2013 ("the 2013 Act") /Companies Act, 1956 ("the 1956 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for change in the accounting policy for depreciation as more fully described in Note 27.

2) Fixed Assets

a) Fixed Assets are stated at cost net of duty credit availed less accumulated depreciation and impairments, if any. The cost includes cost of acquisition/construction, installation and preoperative expenditure including trial run expenses (net of revenue) and borrowing costs incurred during pre-operation period. Expenses incurred on capital assets are carried forward as capital work in progress at cost till the same are ready for use.

b) Pre-operative expenses, including interest on borrowings for the capital goods, where applicable incurred till the capital goods are ready for commercial production, are treated as part of the cost of capital goods and capitalized,

c) Machinery spares which are specific to particular item of fixed assets and whose use is irregular are capitalized as part of the cost of machinery

3) Impairment of Assets

The Company recognizes all the losses as per Accounting Standard -28 due to the impairment of assets In the year of review of the physical conditions of the Assets and is measured by the amount by which, the carrying amount of the Assets exceeds the Fair Value of the Asset.

4) Depreciation

Depreciate amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation on tangible fixed assets have been provided on the written down-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

Plant Machinery -15Years

Factory Building -30Years

Office Equipment-5 Years

Vehicle-SYears

Furniture and Fittings -10 Years

Computer -3 Years

5) Inventories Valuation

Raw material is valued at cost (First in First Out basis) or nets realizable value whichever is lower. Finished Goods are valued at cost or net realizable value whichever is lower. Stock of Scrap is valued at net realizable value. Stock of Trading Goods is valued at Cost (Weighted Average/ First in First Out basis).

6) Foreign Exchange Transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. All exchange differences are dealt with in profit and loss account. Current assets and current liabilities in foreign currency outstanding at the yearend are translated at the rate of exchange prevailing at the close of the year and resultant gains/losses are recognized in the profit and loss account of the year except in cases where they are covered by forward foreign exchange contracts in which cases these are translated at the contracted rates of exchange and the resultant gains/losses recognized in profit and loss account over the life of the contract.

7) Duties & Credits

a) Excise Duty is accounted for at the time of clearance of goods except closing stock of finished goods lying at the works.

b) Canvas Credit, to the extent available during the year, is adjusted towards cost of materials.

c) Duty credit on export sales has been taken on accrued basis whether license has been issued after closing of the financial year.

8) Sales are inclusive of excise duty and after deducting the trade discount and also sales tax applicable.

9) Retirement Benefits

a) The total accrued liability in respect of employees covered by the Payment of Gratuity Act, 1972, as actuarially determined in accordance with the relevant provisions of AS-15 issued by ICAI, and not provided for amounts to Rs.44,77,787/- (Previous YearRs.39,14,281/-).

b) Leave Encashment to Rs. 3,94,194/-(Previous Yea rRs. 3,39,711/-) has been not provided for.

10} Borrowing Cost

Borrowing cost is charged to the Profits Loss Account, except cost of borrowing for the acquisition of qualifying assets, which is capitalized till the date of commercial use of the assets. In compliance of AS-16, the Borrowing Cost amounting to Rs.91,06,056/- (Previous Yea rRs. 37,02,691/-) has been capitalized during the year to the corresponding Capital Assets.

11) Taxes on Income

Provision for current tax is made considering various allowances, disallowances and benefits available to the Company under the provisions of income Tax Law.

In accordance with Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, deferred taxes resulting from timing differences between book and tax profits are accounted for at tax rate substantively enacted by the Balance Sheet date to the extent the timing differences are expected to be crystallized.

12) Revenue Recognition

Sale of goods is recognized when the risk and reward of ownership are passed on to the customers. Revenue from services is recognized when the services are complete.

13) Investments

Long term investments are carried at cost less provision for permanent diminution, if any, in value of such investments. Diminution, if any, in the value of Long Term Investment in respect of equity shares in Partap Industries Limited has not been provided for since the Management is of the opinion that reduction in the value of investment is of the temporary nature considering to inherent value and nature of investee's business and hence no provision is required. Current investments are carried at lower of cost and fair value. Income/Loss from investments are recognized in the year in which it is generated.

14) Provision and Contingencies

The company creates a provision when there is a present obligation as a result of past event that requires an outflow of resources and a reliable estimate can be made of the amount of obligation. Adisclosure for a contingent liability is made when there is a present obligation that may require an outflow of resources or where a reliable estimate of such obligation cannot be made,

15) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated

16) Earnings per Share

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


Mar 31, 2014

1) Basis of Preparation of Financial Statement

a) The financial statements have been prepared under the historical cost convention on the basis of going concern and in accordance with the Accounting Standard 1 Referred to in section 211(3c) of the companies Act 1956.

b) The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

2) Fixed Assets

a) Fixed Assets are stated at cost net of duty credit availed less accumulated depreciation and impairments, if any. The cost includes cost of acquisition/construction, installation and preoperative expenditure including trial run expenses (net of revenue) and borrowing costs incurred during pre-operation period Expenses incurred on capital assets are carried forward as capital work in progress at cost till trie same are ready for use

b) Pre-operative expenses, including interest on borrowings for the capital goods, where applicable incurred till the capital goods are ready for commercial production, are treated as part of the cost of capital goods and capitalized.

c) Machinery spares which are specific to particular item of fixed assets and whose use is irregular are capitalized as part of the cost of machinery

3) Impairment of Assets

The Company recognizes all the losses as per Accounting Standard -28 due to the impairment of assets in the year of review of the physical conditions of the Assets and is measured by the amount by which, the carrying amount of the Assets exceeds the Fair Value of the Asset.

4) Depreciation

Depreciation on fixed assets is provided on written down value basis at the rates specified under Schedule XIV of the Companies Act, 1956. Depreciation for assets purchased / sold during the period is proportionately charged.

5) Inventories Valuation

Raw material is valued at cost (First in First Out basis) or nets realizable value whichever is lower. Finished Goods are valued at cost or net realizable value whichever is lower. Stock of Scrap is valued at net realizable value. Stock of Trading Goods is valued at Cost (Weighted Average/ First in First Out basis).

6) Foreign Exchange Transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. All exchange differences are dealt within profit and loss account. Current assets and current liabilities in foreign currency outstanding at the year end are translated at the rate of exchange prevailing at the close of the year and resultant gains/losses are recognized in the profit and loss account of the year except in cases where they are covered by forward foreign exchange contracts in which cases these are translated at the contracted rates of exchange and the resultant gains/losses recognized in profit and loss account over the life of the contract.

7) Duties & Credits

a) Excise Duty is accounted for at the time of clearance of goods except closing stock of finished goods lying at the works.

b) Cenvat Credit, to the extent available during the year, is adjusted towards cost of materials.

c) Duty credit on export sales has been taken on accrued basis whether license has been issued after closing of the financial year.

8) Sales are inclusive of excise duty and after deducting the trade discount and also sales tax applicable.

9) Retirement Benefits

a) The total accrued liability in respect of employees covered by the Payment of Gratuity Act, 1972, as actuarially determined in accordance with the relevant provisions of AS-15 issued by ICAI, and not provided for amounts to Rs. 39,14,281/- (Previous Year Rs.33,36,417/-).

b) Leave Encashment to Rs. 3,39,711/- (Previous Year Rs. 4,37,512/-) has been not provided for.

10) Borrowing Cost

Borrowing cost is charged to the Profit & Loss Account, except cost of borrowing for the acquisition of qualifying assets, which is capitalized till the date of commercial use of the assets. In compliance of AS-16, the Borrowing Cost amounting to Rs. 37,02,691/- (Previous Year Rs. 37,75,800/-) has been capitalized during the year to the corresponding Capital Assets.

11) Taxes on Income

Provision for current tax is made considering various allowances, disallowances and benefits available to the Company under the provisions of Income Tax Law.

In accordance with Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, deferred taxes resulting from timing differences between book and tax profits are accounted for at tax rate substantively enacted by the Balance Sheet date to the extent the timing differences are expected to be crystallized.

12) Revenue Recognition

Sale of goods is recognized when the risk and reward of ownership are passed on to the customers. Revenue from services is recognized when the services are complete.

13) Investments

Long term investments are carried at cost less provision for permanent diminution, if any, in value of such investments. Diminution, if any, in the value of Long Term Investment in respect of equity shares in Partap Industries Limited has not been provided for since the Management is of the opinion that reduction in the value of investment is of the temporary nature considering to inherent value and nature of investee's business and hence no provision is required. Current investments are carried at lower of cost and fair value. Income/ Loss from investments are recognized in the year in which it is generated.

14) Provision and Contingencies

The company creates a provision when there is a present obligation as a result of past event that requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a present obligation that may require an outflow of resources or where a reliable estimate of such obligation cannot be made.

15) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of

transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated

16) Earnings per Share

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


Mar 31, 2013

1) Basis of Preparation of Financial Statement

a) The financial statements have been prepared under the historical cost convention on the basis of going concern and in accordance with the Accounting Standard 1 Referred to in section 211(3c) of the companies Act 1956.

b) The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

2) Fixed Assets

a) Fixed Assets are stated at cost net of duty credit availed less accumulated depreciation and impairments, if any. The cost includes cost of acquisition/construction, installation and preoperative expenditure including trial run expenses (net of revenue) and borrowing costs incurred during pre-operation period. Expenses incurred on capital assets are carried forward as capital work in progress at cost till the same are ready for use.

b) Pre-operative expenses, including interest on borrowings for the capital goods, where applicable incurred till the capital goods are ready for commercial production, are treated as part of the cost of capital goods and capitalized.

c) Machinery spares which are specific to particular item of fixed assets and whose use is irregular are capitalized as part of the cost of machinery

3) Impairment of Assets

The Company recognizes all the losses as per Accounting Standard -28 due to the impairment of assets in the year of review of the physical conditions of the Assets and is measured by the amount by which, the carrying amount of the Assets exceeds the Fair Value of the Asset.

4) Depreciation

Depreciation on fixed assets is provided on written down value basis at the rates specified under Schedule XIV of the Companies Act, 1956. Depreciation for assets purchased / sold during the period is proportionately charged.

5) Inventories Valuation

Raw material is valued at cost (First in First Out basis) or nets realizable value whichever is lower. Finished Goods are valued at cost or net realizable value whichever is lower. Stock of Scrap is valued at net realizable value. Stock of Trading Goods is valued at Cost (Weighted Average/ First in First Out basis).

6) Foreign Exchange Transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. All exchange differences are dealt within profit and loss account. Current assets and current liabilities in foreign currency outstanding at the year end are translated at the rate of exchange prevailing at the close of the year and resultant gains/losses are recognized in the profit and loss account of the year except in cases where they are covered by forward foreign exchange contracts in which cases these are translated at the contracted rates of exchange and the resultant gains/losses recognized in profit and loss account over the life of the contract.

7) Duties & Credits

a) Excise Duty is accounted for at the time of clearance of goods except closing stock of finished goods lying at the works.

b) Cenvat Credit, to the extent available during the year, is adjusted towards cost of materials.

c) Duty credit on export sales has been taken on accrued basis whether license has been issued after closing of the financial year.

8) Sales are inclusive of excise duty and after deducting the trade discount and also sales tax applicable.

9) Retirement Benefits

a) The total accrued liability in respect of employees covered by the Payment of Gratuity Act, 1972, as actuarially determined in accordance with the relevant provisions of AS-15 issued by ICAI, and not provided for amounts to Rs.33,36,417/- (Previous Year Rs.28,89,903/-).

b) Leave Encashment to Rs.4,37,512/- (Previous Year Rs.2,58,021/-) has been not provided for.

10) Borrowing Cost

Borrowing cost is charged to the Profit & Loss Account, except cost of borrowing for the acquisition of qualifying assets, which is capitalized till the date of commercial use of the assets. In compliance of AS-16, the Borrowing Cost amounting to Rs.37,75,800/- (Previous Year Rs.52,95,997/-) has been capitalized during the year to the corresponding Capital Assets.

11) Taxes on Income

Provision for current tax is made considering various allowances, disallowances and benefits available to the Company under the provisions of Income Tax Law.

In accordance with Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, deferred taxes resulting from timing differences between book and tax profits are accounted for at tax rate substantively enacted by the Balance Sheet date to the extent the timing differences are expected to be crystallized.

12) Revenue Recognition

Sale of goods is recognized when the risk and reward of ownership are passed on to the customers. Revenue from services is recognized when the services are complete.

13) Investments

Long term investments are carried at cost less provision for permanent diminution, if any, in value of such investments. Diminution, if any, in the value of Long Term Investment in respect of equity shares in Partap Industries Limited has not been provided for since the Management is of the opinion that reduction in the value of investment is of the temporary nature considering to inherent value and nature of investee''s business and hence no provision is required. Current investments are carried at lower of cost and fair value. Income/ Loss from investments are recognized in the year in which it is generated.

14) Provision and Contingencies

The company creates a provision when there is a present obligation as a result of past event that requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a present obligation that may require an outflow of resources or where a reliable estimate of such obligation cannot be made.

15) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated

16) Earnings per Share

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


Mar 31, 2012

1) Basis of Preparation of Financial Statement

a) The financial statements have been prepared under the historical cost convention on the basis of going concern and in accordance with the Accounting Standard 1 Referred to in section 211(3c) of the companies Act 1956.

b) The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

2) Fixed Assets

a) Fixed Assets are stated at cost net of duty credit availed less accumulated depreciation and impairments, if any. The cost includes cost of acquisition/construction, installation and preoperative expenditure including trial run expenses (net of revenue) and borrowing costs incurred during pre-operation period. Expenses incurred on capital assets are carried forward as capital work in progress at cost till the same are ready for use.

b) Pre-operative expenses, including interest on borrowings for the capital goods, where applicable incurred till the capital goods are ready for commercial production, are treated as part of the cost of capital goods and capitalized.

c) Machinery spares which are specific to particular item of fixed assets and whose use is irregular are capitalized as part of the cost of machinery

3) Impairment of Assets

The Company recognizes all the losses as per Accounting Standard -28 due to the impairment of assets in the year of review of the physical conditions of the Assets and is measured by the amount by which, the carrying amount of the Assets exceeds the Fair Value of the Asset.

4) Depreciation

Depreciation on fixed assets is provided on written down value basis at the rates specified under Schedule XIV of the Companies Act, 1956. Depreciation for assets purchased / sold during the period is proportionately charged.

5) Inventories Valuation

Raw material is valued at cost (First in First Out basis) or nets realizable value whichever is lower. Finished Goods are valued at cost or net realizable value whichever is lower. Stock of Scrap is valued at net realizable value. Stock of Trading Goods is valued at Cost (Weighted Average/ First in First Out basis).

6) Foreign Exchange Transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. All exchange differences are dealt within profit and loss account. Current assets and current liabilities in foreign currency outstanding at the year end are translated at the rate of exchange prevailing at the close of the year and resultant gains/losses are recognized in the profit and loss account of the year except in cases where they are covered by forward foreign exchange contracts in which cases these are translated at the contracted rates of exchange and the resultant gains/losses recognized in profit and loss account over the life of the contract.

7) Duties & Credits

a) Excise Duty is accounted for at the time of clearance of goods except closing stock of finished goods lying at the works.

b) Cenvat Credit, to the extent available during the year, is adjusted towards cost of materials.

c) Duty credit on export sales has been taken on accrued basis whether license has been issued after closing of the financial year.

8) Sales are inclusive of excise duty and after deducting the trade discount and also sales tax applicable.

9) Retirement Benefits

a) The total accrued liability in respect of employees covered by the Payment of Gratuity Act, 1972, as actuarially determined in accordance with the relevant provisions of AS-15 issued by ICAI, and not provided for amounts to Rs.28,89,903/- (Previous Year Rs.25,69,684/-).

b) Leave Encashment amounting to Rs.2,58,021/- (Previous Year Rs.1,91,909/-) has been not provided for.

10) Borrowing Cost

Borrowing cost is charged to the Profit & Loss Account, except cost of borrowing for the acquisition of qualifying assets, which is capitalized till the date of commercial use of the assets. In compliance of AS-16, the Borrowing Cost amounting to Rs.52,95,997/- (Previous Year Rs.40,48,307/-) has been capitalized during the year to the corresponding Capital Assets.

11) Taxes on Income

Provision for current tax is made considering various allowances, disallowances and benefits available to the Company under the provisions of Income Tax Law.

In accordance with Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, deferred taxes resulting from timing differences between book and tax profits are accounted for at tax rate substantively enacted by the Balance Sheet date to the extent the timing differences are expected to be crystallized.

12) Revenue Recognition

Sale of goods is recognized when the risk and reward of ownership are passed on to the customers. Revenue from services is recognized when the services are complete.

13) Investments

Long term investments are carried at cost less provision for permanent diminution, if any, in value of such investments. Diminution, if any, in the value of Long Term Investment in respect of equity shares in Partap Industries Limited has not been provided for since the Management is of the opinion that reduction in the value of investment is of the temporary nature considering to inherent value and nature of investee's business and hence no provision is required. Current investments are carried at lower of cost and fair value. Income/ Loss from investments are recognized in the year in which it is generated.

14) Provision and Contingencies

The company creates a provision when there is a present obligation as a result of past event that requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a present obligation that may require an outflow of resources or where a reliable estimate of such obligation cannot be made.

15) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated

16) Earnings per Share

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

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