Accounting Policies of RR Metalmakers India Ltd. Company

Mar 31, 2025

2 SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation of financial statements

(a) Basis of preparation

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to
as ‘Ind AS'') as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 read with Rule 3
of the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.

The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied
consistently to all the periods presented in the financial statements. All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle, paragraph 66 and 69 of Ind AS 1 and other criteria as set out in the
Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of
assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current or non-current classification of assets and liabilities.

An asset is treated as current when it is

a Expected to be realised or intended to be sold or consumed in normal operating cycle;
b Held primarily for the purpose of trading;

c Expected to be realised within twelve months after the reporting period; or

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

All other assets are classified as non-current.

An liability is treated as current when
a It is expected to be settled in normal operating cycle;
b It is held primarily for the purpose of trading;

c It is due to be settled within twelve months after the reporting period; or

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

All other liabilities are classified as non-current.

Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and
cash equivalents, the Company has ascertained its operating cycle as 12 months for purpose of current or non-current
classification of assets and liabilities. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The financial statements are presented in '' (Indian Rupees), the functional currency of Company. Items included in the financial
statements of the Company are recorded using the currency of primary economic environment in which the Company
operates (the ‘functional currency'').

The financial statements of the Company for the year ended 31/03/2025 were approved for issue in accordance with the
resolution of the Board of Directors on 21/05/2025.

Previous years figures have been regrouped / rearranged wherever required to match with current years’
presentation.

(b) Basis of measurement

These financial statements are prepared under the historical cost convention except for certain class of financial assets /
liabilities, share based payments and net liability for defined benefit plans that are measured at fair value.

2.2 Key Accounting Estimates and Judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions in the application of
accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimate.

2.3 Material Accounting Policies

The material accounting policies used in preparation of the financial statements have been included in the relevant notes to the
financial statements.

PPE is stated at acquisition cost net of accumulated depreciation and accumulated impairment losses, if any. Cost of acquisition or
construction of property, plant and equipment comprises its purchase price including import duties and non-refundable purchase taxes
after deducting trade discounts and rebates, any directly attributable to cost of bringing the item to its working condition for its intended
use. When parts of an item of PPE having significant cost have different useful lives, then they are accounted for as separate items (major
components) of PPE. Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can
be measured reliably. All other repairs and maintenance cost are charged to the Statement of Profit and Loss during the period in which
they are incurred. Gains or losses arising on retirement or disposal of PPE are recognised in the Statement of Profit and Loss.

Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as “Capital work-in¬
progress”.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital
advances under “Other Non-Current Assets”.

Depreciation is provided on a pro-rata basis on the written down value method based on estimated useful life prescribed under
Schedule II to the Companies Act, 2013 except Assets costing Q 5,000 or less are fully depreciated in the year of purchase.

Freehold land if any is not depreciated. The residual values, useful lives and method of depreciation of property, plant and equipment is
reviewed at each financial year end and adjusted prospectively, if appropriate.

(b) Intangible Assets:

Intangible assets purchased are initially measured at cost. The cost of an intangible asset comprises its purchase price including duties
and taxes and any costs directly attributable to making the asset ready for their intended use. Subsequent expenses is capitalized only
when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in
statement of profit or loss as incurred. The useful lives of intangible assets are assessed as finite. Finite-life intangible assets are amortised
on a written down value basis over the period of their estimated useful lives as prescribed under Schedule II to the Companies Act,
2013 The amortisation period and the amortisation method for intangible assets is reviewed at each financial year end and adjusted
prospectively, if appropriate.

7 Income tax liabilities and assets Current tax liabilities and Assets

i Income tax expense for the year comprises of current tax and deferred tax. It is recognised in the Statement of Profit and Loss
except to the extent it relates to a business combination or to an item which is recognised directly in equity or other comprehensive
income. Current tax is the expected tax payable/receivable on the taxable income or loss for the year using applicable tax rates
for the relevant period, and any adjustment to taxes in respect of previous years. Interest expenses and penalties, if any, related to
income tax are included in finance cost and other expenses respectively. Interest Income, if any, related to income tax is included
in other income.

ii Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial
reporting purposes and the corresponding amounts used for taxation purposes. A deferred tax liability is recognised based on
the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted, or
substantively enacted, by the end of the reporting period. Deferred tax assets are recognised only to the extent that it is probable
that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reviewed at each
reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realised. The Company
has not made deferred tax assets and deferred tax liablities during the FY 2024-25 due to Carried forward losses in Income Tax of
previous financial years.

iii Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts
and there is an intention to settle the asset and the liability on a net basis. There are no Current tax payable and taxes paid for the
year as the Company has carry forward losses in Income tax. Deferred tax assets and deferred tax liabilities are offset when there
is a legally enforceable right to set off current tax assets against current tax liabilities and the deferred tax assets and the deferred
tax liabilities relate to income taxes levied by the same taxation authority.

iv Uncertain Tax position:- Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where appropriate. The provision is estimated
based on the single most likely amount method resulting in possible future cash outlays.

B. Nature and Purpose of reserves

a Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general
reserve, dividends or other distributions paid to shareholders

b Securities Premium: The amount received in excess of face value of the equity shares is recognised in Securities Premium.

c Items of other comprehensive income - Remeasurements of Net Defined Benefit Plans: Differences between the interest
income on plan assets and the return actually achieved, and any changes in the liabilities over the year due to changes in
actuarial assumptions or experience adjustments within the plans, are recognised in other comprehensive income and are
adjusted to retained earnings.

d Revaulation Reserve-The Company has recognised assets revaluation as per statutory requirements. This reserve is not
available for capitalisation/ declaration of dividend/ share buy-back if any.

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Mar 31, 2024

1 COMPANY INFORMATION:- RR Metalmakers Limited (''the Company'') is a public limited company domiciled in India with its registered office located at B-001 & B-002, Ground Floor, Antop Hill Warehousing Complex Ltd, Barkat Ali Naka, Salt Pan Road, Wadala East, Mumbai- 400 037. The Company is listed on the Bombay Stock Exchange (BSE). The Company is in the business of trading and manufacturing of Steel and Iron Ores segments. The Company has plant at Sabarkanta Gujarat for manufacture of steel, iron and its related products.

2 SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation of financial statements

(a) Basis of preparation

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as ''Ind AS'') as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.

The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle, paragraph 66 and 69 of Ind AS 1 and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

An asset is treated as current when it is

a Expected to be realised or intended to be sold or consumed in normal operating cycle:

b Held primarily for the purpose of trading;

Expected to be realised within twelve months after the reporting period; or

c

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

All other assets are classified as non-current.

An liability is treated as current when

a It is expected to be settled in normal operating cycle;

b It is held primarily for the purpose of trading;

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

c

There is no unconditional right to defer the settlement of liability for at least twelve months after the reporting ^d period.

All other liabilities are classified as non-current.

Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for purpose of current or non-current classification of assets and liabilities. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The financial statements are presented in ^ (Indian Rupees), the functional currency of Company. Items included in the financial statements of the Company are recorded using the currency of primary economic environment in which the Company operates (the ''functional currency'').

The financial statements of the Company for the year ended 31st March, 2024 were approved for issue in accordance with the resolution of the Board of Directors on 30/04/2024.

Previous years figures have been regrouped / rearranged wherever required to match with current years'' presentation.

(b) Basis of measurement

These financial statements are prepared under the historical cost convention except for certain class of financial assets /liabilities, share based payments and net liability for defined benefit plans that are measured at fair value.

2.2 Key Accounting Estimates and Judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimate.

2.3 Material Accounting Policies

The material accounting policies used in preparation of the financial statements have been included in the relevant notes to the financial statements.

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Mar 31, 2019

1. SIGNIFICANT ACCOUNTING POLICIES

A. Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (‘the Act’) (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

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

B. Use of estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires the management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

C. Property, plant and equipment

a. Property, plant and equipment are stated at cost, less accumulated depreciation. When an asset is scrapped or otherwise disposed off, the cost and related depreciation are removed from the books of account and resultant profit (including capital profit) or loss, if any, is reflected in the Statement of Profit and Loss.

b. Depreciation on Property, plant and equipment is provided on the written-down-value over the useful lives of assets estimated by the Management. Depreciation for assets purchased / sold during a period is proportionately charged. In Property, plant and equipment are amortized over their respective individual estimated useful lives on a written down value method, commencing from the date the asset is available to the Company for its use. The Management estimates the useful lives for the other assets as follows:

Buildings-30 years; Office equipment-5 years; Computer equipment-3-6 years; Furniture and fixtures-10 years; Vehicles-8 years

ii) Sale of Goods is recognized on transfer of significant risks and rewards of ownership which is generally on the dispatch of the goods.

iii) Dividend income is recognized when the Company’s right to receive dividend is established.

D. Government Grants

No government grant or any incentives from government authorities are receivable by the company till date and hence no accounting policy is formulated for the same..

E. Employees benefits

a. Short-term obligations

Liabilities for wages and salaries, including other monetary and non-monetary benefits that are expected to be settled wholly within 12 months after the end of the reporting period are recognized and measured at the undiscounted amounts expected to be paid when the liabilities are settled.

b. Post-employment obligations (Defined Benefit Obligations)

The liability or asset recognized in the balance sheet in respect of gratuity is the present value of the defined benefit obligation at the end of the reporting period as per actuarial valuation.

F. Borrowing Costs

All borrowing costs are charged to the Statement of Profit and Loss except:

(i) Borrowing costs, if any that are attributable to the acquisition or construction of qualifying tangible and intangible assets that necessarily take a substantial period of time to get ready for their intended use, which are capitalized as part of the cost of such assets.

G. Provisions and Contingent liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

H. Leases

The Company’s significant leasing arrangements are in respect of operating leases for premises (godowns, office spaces etc.). The leasing arrangements, which are not non-cancellable, range between eleven months and five years generally, and are usually renewable by mutual consent on agreed terms. The aggregate lease rentals, for the year, payable are charged as rent.

I. Taxes on Incomes

Current Tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred Tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets arising on account of unabsorbed depreciation or carry forward of tax losses are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such Deferred Tax Assets can be realized. Minimum Alternate Tax (MAT), if any paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax against which the MAT paid will be adjusted.

J. Segment Reporting

The Company has a single segment namely “Commodity Trading and Distribution”, Therefore the company business does not fall under different segments as defined by AS-17-”Segment Reporting” issued by ICAI.

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Mar 31, 2015

2.1 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS :

i) These financial statements have been prepared in accordance with generally accepted accounting principles in India under the historical cost convention on an accrual basis. Pursuant to Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply.

ii) Consequently these financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 211(3C) of the Companies Act, 1956 (Companies (Accounting Standards) Rules, 2006, (as amended) and other relevant provisions of the Companies Act, 2013.

2.2 USE OF ESTIMATES :

The preparation of financial statements in conformity with Indian GAAP requires estimates and assumptions to be made that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

2.3 FIXED ASSETS :

Tangible assets

Tangible assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

Subsequent expenditure related to an item of fixed asset are added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance.

Items of fixed assets that have been retired from active use and held for disposal are stated at the lower of their net book value and net realizable value. Any expected loss, is recognised immediately in the Statement of Profit and Loss.

Losses arising from the retirement of and gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the Statement of Profit and Loss.

Intangible assets

Intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Intangibles assets are amortized on a straight line basis over the estimated useful lives.

Gains or losses, if any arising from the retirement or disposal proceeds and the carrying amount of the asset are recognised as income or expense in the Statement of Profit and loss.

2.4 METHOD OF DEPRECIATION AND AMORTIZATION :

i) Depreciation, on tangible assets is calculated on written-down value basis over the estimated useful lives of the assets.

ii) Effective 1st April 2014, the Company depreciates it fixed assets over the useful life in the manner prescribed in Schedule II of the Act, as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act, 1956.

iii) Cost of Goodwill and trademarks are amortized over the estimated useful lives.

iv) Depreciation on additions to assets or on sale/discardment of assets, is calculated pro rata from the month of such addition or upto the month of such sale/discardment, as the case may be.

2.5 LEASE:

As a lessee: Nil

As a lessor: Where the lessors effectively retain substantially all the risks and benefits of ownership of the leased item the lease is classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.

2.6 BORROWING COSTS :

Interest and other borrowing costs attributable to qualifying assets are capitalized. Other interest and borrowing costs are charged to revenue.

2.7 GOVERNMENT GRANTS :

During the year, no grants and subsidies has been received from the Government. Grants and subsidies from the government if any, received against specific fixed assets are adjusted to the cost of the assets and those in the nature of promoter's contribution are credited to Capital Reserve. Revenue Grants are recognized in the Profit and Loss account in accordance with the related scheme and in the period in which these are accrued.

2.8 INVESTMENTS :

Investments that are readily realizable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

Current investments are carried at lower of cost or fair value. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments, such reduction being determined and made for each investment individually.

2.9 VALUATION OF INVENTORIES :

Inventories of Raw materials, components, stores and spares, Finished Goods and Stock-in-trade are stated 'at cost or net realizable value, whichever is lower'. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost of raw materials, components and stores and spares is determined on a weighted average basis. Cost of finished goods includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Due allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past experience of the Company.

2.10 REVENUE RECOGNITION :

i) Revenues/incomes and Costs/Expenditures are generally accounted on accrual, as they are earned or incurred.

ii) Sale of Goods is recognized on transfer of significant risks and rewards of ownership which is generally on the dispatch of the goods.

iii) Benefit on account of entitlement to import goods free of duty under the "Duty Entitlement Pass Book Scheme" is accounted in the year of export

2.11 STATUTORY AND OTHER TAXES :

Excise duty/Service tax is not applicable to the company. Sales tax/Value Added tax paid is set- off against the collection and in case of payment of earlier years; the same is debited to Profit and Loss account.

2.12 FOREIGN CURRENCY TRANSLATIONS :

i) All transactions in foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place

ii) Monetary items in form of current assets and current liabilities in foreign currency, outstanding at the close of the year are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of the Balance Sheet.

2.13 EMPLOYEE BENEFITS :

The company at present does not have any retirement benefit for the employees concerned and the staff costs are accounted as period costs.

2.14 TAXATION :

Income-tax expense comprises current and deferred tax charge or credit. Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. The deferred tax asset and deferred tax liability is calculated by applying the tax rate and the tax laws that have been enacted or substantively enacted at the reporting date. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. At each balance sheet date, the carrying amounts of deferred tax assets are reviewed to reassure realization. Minimum alternate tax credit (MAT credit) is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal tax during the specified period. Such asset is reviewed at each Balance Sheet date and the Carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

2.15 IMPAIRMENT OF ASSETS :

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

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Mar 31, 2014

2.1 Basis of accounting and preparation of financial statements:

i) The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in alt material respects with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

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

2.2 Use of estimates

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

2.3 Tangible Assets

Tangible assets are stated at cost of acquisition including interest attributable and financial costs till the date of acquisition and/or installation of the assets and improvement thereon less accumulated depreciation /amortization and accumulated impairment losses if any.

Subsequent expenditure related to an item of other tangible assets is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and toss for the period during which such expenses are incurred. Gains or losses arising from de-recognition of fixed assets 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 and loss when the asset is derecognized.

2.4 Depreciation on tangible assets Depreciation on tangible assets is provided:

i) In respect of buildings and sheds, furniture and office equipments on the written down value method (pro-rata on additions and deletions of the year) at rates prescribed in Schedule XIV to the Companies Act, 1956.

ii) In respect of plant & machinery, on the written down value method at rates prescribed in schedule XIV to the Companies Act, 1956 on a pro-rata basis.

iii) In respect of computers depreciation is provided on written down value on a pro-rata basis.

2.5 Intangible assets

As present the company does not hold any investment in intangible assets, hence no accounting policies has been formulated. Suitable accounting policies will be formulated if any future investments are made in intangible assets in future.

2.6 Impairment of tangible and intangible assets

The company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset's recoverable amount and determines accounting policies taking into consideration AS-28 Impairment of assets issued by ICAL

2.7 Leases

Where the lessors effectively retains substantially all the risks and benefits of ownership of the leased item the leased Cold Storage are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.

2.8 Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur

2.9 Government grants and subsidies

At present, no grants and subsidies has been received from the Government. Hence no accounting policy had been formulated in this regard

2.10 Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investment. Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Costs of investments include acquisition charges such as brokerage, fees and duties.

2.11 Inventories

Items of Inventories are valued at the lower of cost (on Weighted Average Cost basis) and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the warehouse, including applicable taxes and other levies, transit insurance etc.

2.12 Revenue recognition

Sales:- Revenue is recognised when the title of the goods including all risks and rewards of ownership has been transferred to the buyer and the, seller retains no effective control of the goods transferred to a degree usually associated with ownership and where the consideration is reliably measured and it is reasonably certain to expect ultimate collection. Revenue from operations includes sale of goods and services in respect of cold storage business and interest incomes but excludes sales tax and value added tax.

Income:-The Company recognizes the income on accrual basis. However where the ultimate collection of the same lacks reasonable certainty, revenue recognition is postponed to the extent of uncertainty. Interest is accrued over the period of the loan/investment. Dividend is accrued in the year in which it is declared whereby a right to receive is established. Profit /loss on sale of investments are recognized on the contract date. Benefit on account of entitlement to import goods free of duty under the "Duty Entitlement Pass Book Scheme" is accounted in the year of export.

2.13 Statutory and other taxes

Excise duty/Service tax is not applicable to the company. Sales tax/Value Added tax paid is set-off against the collection and in case of excess payment of earlier years; the same is debited to Profit and Loss account.

2.14 Foreign currency transactions and translations

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end and are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year-end rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract. Any income or expenses on account of exchange differences either on settlement or on translation is recognized in the Profit and loss account. Financial derivatives and hedging contracts are accounted on the date of their settlement and realized gain /loss in respect of settled contracts is recognised in the statement of profit and loss along with the underlying transactions.

2.15 Employee benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in profit and loss account of the year in which the related service is rendered. The Company does not have a system of retirement benefits except Provident Fund for which Contributions are made from time to time. Provident fund contribution are based on defined contribution plans.

2.16 Income taxes

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the income Tax Act, 1961. The income taxes on the assessments completed till date are adjusted against their corresponding provisions maintained in the Balance sheet.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax assets are recognized only to the extent that there is a virtual certainty that the asset will be realized in future.

2.17 Segment reporting

a. Identification of segments

At present the company deals only in a single segment of Trading of Spices, Dry Fruits and Pulses, hence the company's operating businesses are organized and managed accordingly and no further segment identification is done and no such accounting policies in respect to disclosures of the same. Although the company manages Cold storages, the gross income from the same is not more than 10% of the Gross Revenue of Sales of the company and therefore no separate segment reporting are done for this activity.

2.18 Earnings per Share

Basic earnings per share are 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. Partly paid equity shares if any, are treated as a fraction of equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating Diluted earnings per share, the net profit or toss 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.

2.19 Provisions

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Where the company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement. -

2.20 Contingent liabilities and Contingent assets

Contingent liabilities are not recognized but disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

2.21 Cash and cash equivalents

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

2.22 Measurement of EBITDA

As permitted by the Guidance Note on the Revised Schedule VI to the Companies Act, 1956, the company has elected to present earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss account. The company measures EBITDA on the basis of profit/ (loss) from continuing operations. In its measurement, the company does not include depreciation and amortization expense, finance costs and tax expense.

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Mar 31, 2012

1.1 Basis of accounting and preparation of financial statements

The Company maintains its accounts on accrual basis. Management makes estimates and technical and other assumptions regarding the amounts of income and expenses in accordance with Indian GAAP in the preparations of financial statements. Differences between the actual results and the estimates are recognized in the periods in which the results are determined.

During the year ended March 31,2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

1.2 Fixed Assets

Fixed assets are stated at cost of acquisition including attributable interest & financial costs till die date of acquisition/installation of the assets and improvement thereon less accumulated depreciation / amortisation and accumulated impairment losses if any. Intangible assets comprise of implementation cost for software and other application software's acquired for in-house use.

1.3 Depreciation and Amortisation Depreciation on fixed assets is provided:

i) In respect of buildings and sheds, furniture and office equipments on the written down value method (pro-rata on additions and deletions of the year) at rates prescribed in Schedule XTV of the Companies Act, 1956.

ii) Hi respect of plant & machinery, on the written down value method at rates prescribed in schedule XTV of the Companies Act, 1956 on a pro-rata basis.

iii) In respect of computers depreciation is provided on written down value on a pro-rata basis

iv) The estimated useful life of the intangible assets and the amortization period are reviewed at the end of each financial year and the amortization method is revised to reflect the changed pattern.

1.4 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount The recoverable amount is the greater of the net selling price and their value in use Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets.

1.5 Foreign currency transactions and translations

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Monetary items denominated in foreign currencies at the year end and are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year- end rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the rife of the contract

Non-Monetary foreign currency items are carried at cost

Any income or expenses on account of exchange differences either on settlement or on translation is recognized in the Profit and loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

1.6 Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classifies as long-term investment Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Costs of investments include acquisition charges such as brokerage, fees and duties.

1.7 Inventories

Items of Inventories are valued at the lower of cost (on FIFO basis) and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges.

1.8 Revenue recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to except ultimate collection. Revenue from operations includes sale of goods and services but excludes sales tax and value added tax. Dividend income is recognized when right to receive is established. Interest income is recognized on time proportionate basis taking into account the amount outstanding and rate applicable

1.9 Excise Duty/Service Tax and Sales tax/Value Added Tax

Excise duty/Service tax is accounted on the basis of both, payments, made in respect of goods cleared/service provided as also provision made for goods lying in bonded warehouses, if any. Sales tax/Value Added tax paid is set-off against the collection and in case of excess payment of earlier years; the same is debited to Profit and Loss account

1.10 Employee benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in profit and loss account of the year in which the related service is rendered The Company does not deal with post employment and other long term employee benefits

1.11 Borrowing costs

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of such asset Other borrowings costs are charged to statement of profit and loss as incurred.

1.12 Financial Derivatives and Commodity hedging transactions

Financial derivatives and hedging contracts are accounted on the date of their settlement and realised gain/loss in respect of settled contracts is recognised in the statement of profit and loss along with the underlying transactions.

1.13 Provision for Current and deferred tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with title provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences, being die differences between the taxable income and the accounting income. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax assets are recognized only to the extent that there is a virtual certainty that the asset will be realized in future.

1.14 Provisions, Contingent liabilities and Contingent assets

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

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Mar 31, 2010

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant presentational requirements of the Companies Act, 1956. A summary of important accounting policies applied are set out below:-

1) ACCOUNTING CONCEPTS

These accounts are prepared under historical cost convention on an accrual basis and follow the accounting principles of a going concern.

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2) USE OF ESTIMATES

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

3) INVENTORIES

As per Accounting Standard - 2, inventories have been valued at cost or Market Value whichever is lower.

4) CASH FLOW STATEMENTS

The Cash flow Statement is prepared under "Indirect Method" set out in Accounting Standard -3 on "Cash Flow Statements" and presents the-cash flow by operating, investing and financing activities of the company.

5) FIXED ASSETS

Fixed assets are stated at cost of acquisition less accumulated depreciation and accumulated impairment losses if any. Cost includes all expenditure necessary to bring the asset to its working condition for its intended use.

6) DEPRECIATION

Depreciation on fixed assets is provided at the rates specified in the companies Act, on Written Down Value method.

7) INVESTMENTS

Long Term Investments are stated at cost. No provision for diminution in value of investments is made in the books of accounts.

8) REVENUE RECOGNITION

in Sale is recognised when the title of the goods, including all risks and rewards of ownership has been transferred to the buyer and the seller retains no effective control of the goods transferred to a degree usually associated with ownership and;

(ii) No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of the goods.

9) EMPLOYEE RETIREMENT BENEFITS

(i) The management is of the opinion that since none of Employees of the company were in continuous service for more than five years, making Provision of Gratuity does not arise. The management is also of the opinion that the payment of Pension Act is not applicable to the Company.

(ii) Provident Fund is not applicable to the company.

10) TAXES ON INCOME

Provision for Income Tax

Provision for current tax is made on the assessable income computed for the accounting year in accordance with the provisions of Income-Tax Act, 1961.

Deferred Taxation

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting incomes that originate in one period and are capable of reversal in one or more subsequent periods and is quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

In compliance with the Accounting S:andard-22 relating to "Accounting for taxes on Income", the deferred tax liability of current year is debited to Profit & Loss Account.