Accounting Policies of Sampann Utpadan India Ltd. Company

Mar 31, 2025

A. BASIS OF PREPARATION OF IND AS FINANCIAL STATEMENTS

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the
historic cost convention on an accrual basis, except where the same is considered as fair market value as required
by Ind AS, 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) Rule, 2015 and the relevant amendment rules issued thereafter.

The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous
GAAP.

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. STOCK IN TRADE

Inventories are stated at the lower of cost or net realizable value after providing for obsolescence, if any. Cost of
Inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing them to their
respective present location and condition.

C. CASH FLOW STATEMENT

As required by Ind AS-7 "Cash Flow Statement" issued by "The Institute of Chartered Accountants of India" the
Cash Flow for the period is reported using indirect method. The Cash and Cash Equivalent of the Company
comprises of Cash in hand and Current account with Scheduled Banks.

D. DEPRECIATION

Depreciation for current financial year has been provided on straight-line method in the manner and as per the
useful lives of the Assets specified in Schedule II to the Companies Act, 2013 and on pro rata basis from the date of
installation till the date the assets are sold or disposed off.

E. REVENUE RECOGNITION

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

a) Sales are recognized on generation of sale bill or clearance of goods from factory whichever is earlier and
are recorded exclusive of excise duty, service tax and sales tax.

b) Export benefits are recognized on accrual basis.

c) Scrap, salvaged/waste materials and sweepings are recognized on actual realization basis.

F. PROPERTY, PLANT AND EQUIPMENTS

All assets held with the intention of being used for the purpose of producing goods or providing services and not
for sale in the normal course of business are recognized as Property, Plants and Equipments and are stated at cost
less accumulated depreciation after considering lease adjustment account. All costs including finance cost
attributable to Property, Plants and Equipments till assets are ready for intended use are capitalized.

G. INVESTMENTS

Investments are recognized as recommended in Ind AS. Accordingly following policies have been adopted in
respect of Investments made:

i) Investments that are readily realizable and are intended not to be held for more than one year from the
date of acquisition are classified as current investments. All other investments are classified as Long term
investments.

ii) The Company values its Investments based on the Indian Accounting Standard "Accounting for
Investment" issued by the Institute of Chartered Accountants of India:

a) Investment held as long-term investments are valued at cost. Provision for diminution in value is
made only if there is a permanent decline in their net realizable value.

b) Current investments are valued at lower of cost or net realizable value.

H. EMPLOYEE RETIREMENT BENEFITS, IF ANY

Contributions to Provident Fund made during the year, are charged to Statement of Profit and Loss for the period.
The Company has taken Workmen Compensation Policy to meet the requirement in case of any accident or death
of the worker. This contribution to the said plan is charged to Profit & Loss account. The company has no further
obligation beyond its contribution to plan.

I. BORROWING COSTS, IF ANY

i) Borrowing costs, which are directly attributable to the acquisition /construction of property, Plants and
Equipments, till the time such assets are ready for intended use, are capitalized as a part ofthe cost of
assets.

ii) All borrowing costs other than mentioned above are expensed in the period they are incurred. In case
unamortized identified borrowing cost is outstanding at the year end, it is classified under loans and
advances as unamortized cost of borrowings.

iii) In case any loan is prepaid/ cancelled then the unamortized borrowing cost, if any, is fully expensed off on
the date of prepayment/cancellation.

J. RELATED PARTIES

Parties are considered to be related if at any time during the reporting period one party has the ability to control the
other party or exercise significant influence over the other party in making financial and/or operating decisions.

As required by Ind AS-24 "Related Party Disclosure" only following related party relationships are covered:

(a) Enterprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or
are under common control with, the reporting enterprise (this includes holding Companies, subsidiaries
and fellow subsidiaries);

(b) Associates and joint ventures of the reporting enterprise and the investing party or venture in respect of
which the reporting enterprise is an associate or a joint venture;

(c) Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that
gives them control or significant influence over the enterprise, and relatives of any such individual;

(d) Key management personnel (KMP) and relatives of such personnel; and

(e) Enterprises over which any person described in (c) or (d) is able to exercise significant influence.

K. LEASE ASSETS, IF ANY

No asset has been taken on lease. Hence, Ind AS-17 "Accounting for Lease" issued by "The Institute of Chartered
Accountants of India" are not applicable.

L. EARNING PER SHARE

The Earning per Share (Basic as well as Diluted) is calculated based on the net profit or loss for the period
attributable to equity shareholders i.e. the net profit or loss for the period after deducting Proposed Preference
Dividend and any attributable tax thereto.

For the purpose of calculating (Basic and Diluted EPS), the number of equity shares taken are the weighted
average number of equity shares outstanding during the period.

M. SEGMENT REPORTING

The Segment report of the Company has been prepared in accordance with the Ind As -108 "Segment Reporting"
issued by The Institute of Chartered Accountants of India.

N. INTANGIBLE ASSETS, IF ANY

Intangible assets are recognized only when four of below mentioned criteria are fulfilled:

a) Asset is identifiable.

b) Control of the enterprise over that asset.

c) It is probable that future economic benefits attributable to the asset will flow to the enterprise.

d) Cost of the asset can be measured reliably.

If any of the above four criteria is not fulfilled the expenditure incurred to acquire the asset is recognized as an
expense, in the year in which it is incurred.

Intangible assets are initially measured at cost, after initial recognition the intangible asset is carried at its carrying
value i.e. cost less any accumulated amortization and accumulated impairment losses.

O. IMPAIRMENT OF ASSETS, IF ANY

An asset is treated as impaired, when carrying cost of asset exceeds its recoverable amount.

At each Balance Sheet Date, it is seen that whether there is any indication that an asset may be impaired, if any
such indication exist, the recoverable amount of the asset is estimated in order to determine the extent of
impairment loss; if any. Such impairment loss is charged to the profit and loss account in the year in which an asset
is identified as impaired.

When an impairment loss is subsequently reversed, the carrying amount of the asset is increased to its revised
estimate of its recoverable amount. However this increased amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognized for that asset in prior period. A reversal of
an impairment loss is recognized as income immediately in the Profit & Loss Account.

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Mar 31, 2024

A. BASIS OF PREPARATION OF IND AS FINANCIAL STATEMENTS

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historic cost convention on an accrual basis, except where the same is considered as fair market value as required by Ind AS, 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) Rule, 2015 and the relevant amendment rules issued thereafter.

The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP.

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. STOCK IN TRADE

Inventories are stated at the lower of cost or net realizable value after providing for obsolescence, if any. Cost of Inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition.

C. CASH FLOW STATEMENT

As required by Ind AS-7 "Cash Flow Statement" issued by "The Institute of Chartered Accountants of India" the Cash Flow for the period is reported using indirect method. The Cash and Cash Equivalent of the Company comprises of Cash in hand and Current account with Scheduled Banks.

D. DEPRECIATION

Depreciation for current financial year has been provided on straight-line method in the manner and as per the useful lives of the Assets specified in Schedule II to the Companies Act, 2013 and on pro rata basis from the date of installation till the date the assets are sold or disposed off.

E. REVENUE RECOGNITION

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

a) zed on generation of sale bill or clearance of goods from factory whichever is earlier and are recorded exclusive of excise duty, service tax and sales tax.

b) Export benefits are recognized on accrual basis.

c) Scrap, salvaged/waste materials and sweepings are recognized on actual realization basis.

F. PROPERTY, PLANT AND EQUIPMENTS

All assets held with the intention of being used for the purpose of producing goods or providing services and not for sale in the normal course of business are recognized as Property, Plants and Equipments and are stated at cost less accumulated depreciation after considering lease adjustment account. All costs including finance cost attributable to Property, Plants and Equipments till assets are ready for intended use are capitalized.

G. INVESTMENTS

Investments are recognized as recommended in Ind AS. Accordingly following policies have been adopted in respect of Investments made:

i) Investments that are readily realizable and are intended not to be held for more than one year from the date of acquisition are classified as current investments. All other investments are classified as Long term investments.

ii) The Company values its Investments based on the Indian Accounting Standard "Accounting for Investment" issued by the Institute of Chartered Accountants of India:

a) ri investments are valued at cost. Provision for diminution in value is made only if there is a permanent decline in their net realizable value.

b) Current investments are valued at lower of cost or net realizable value.

H. EMPLOYEE RETIREMENT BENEFITS, IF ANY

Contributions to Provident Fund made during the year, are charged to Statement of Profit and Loss for the period. The Company has taken Workmen Compensation Policy to meet the requirement in case of any accident or death of the worker. This contribution to the said plan is charged to Profit & Loss account. The company has no further obligation beyond its contribution to plan.

I. BORROWING COSTS, IF ANY

i) Borrowing costs, which are directly attributable to the acquisition /construction of property, Plants and Equipments, till the time such assets are ready for intended use, are capitalized as a part ofthe cost of assets.

ii) All borrowing costs other than mentioned above are expensed in the period they are incurred. In case unamortized identified borrowing cost is outstanding at the year end, it is classified under loans and advances as unamortized cost of borrowings.

iii) In case any loan is prepaid/ cancelled then the unamortized borrowing cost, if any, is fully expensed off on the date of prepayment/cancellation.

J. RELATED PARTIES

Parties are considered to be related if at any time during the reporting period one party has the ability to control the other party or exercise significant influence over the other party in making financial and/or operating decisions.

As required by Ind AS-24 "Related Party Disclosure" only following related party relationships are covered:

(a) Enterprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise (this includes holding Companies, subsidiaries and fellow subsidiaries);

(b) Associates and joint ventures of the reporting enterprise and the investing party or venture in respect of which the reporting enterprise is an associate or a joint venture;

(c) Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual;

(d) Key management personnel (KMP) and relatives of such personnel; and

(e) Enterprises over which any person described in (c) or (d) is able to exercise significant influence.

K. LEASE ASSETS, IF ANY

No asset has been taken on lease. Hence, Ind AS-17 "Accounting for Lease" issued by "The Institute of Chartered Accountants of India" are not applicable.

L. EARNING PER SHARE

The Earning per Share (Basic as well as Diluted) is calculated based on the net profit or loss for the period attributable to equity shareholders i.e. the net profit or loss for the period after deducting Proposed Preference Dividend and any attributable tax thereto.

For the purpose of calculating (Basic and Diluted EPS), the number of equity shares taken are the weighted average number of equity shares outstanding during the period.

M. SEGMENT REPORTING

The Segment report of the Company has been prepared in accordance with the Ind As -108 "Segment Reporting" issued by The Institute of Chartered Accountants of India.

N. INTANGIBLE ASSETS, IF ANY

Intangible assets are recognized only when four of below mentioned criteria are fulfilled:

a) Asset is identifiable.

b) Control of the enterprise over that asset.

c) It is probable that future economic benefits attributable to the asset will flow to the enterprise.

d) Cost of the asset can be measured reliably.

If any of the above four criteria is not fulfilled the expenditure incurred to acquire the asset is recognized as an expense, in the year in which it is incurred.

Intangible assets are initially measured at cost, after initial recognition the intangible asset is carried at its carrying value i.e. cost less any accumulated amortization and accumulated impairment losses.

O. IMPAIRMENT OF ASSETS, IF ANY

An asset is treated as impaired, when carrying cost of asset exceeds its recoverable amount.

At each Balance Sheet Date, it is seen that whether there is any indication that an asset may be impaired, if any such indication exist, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss; if any. Such impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired.

When an impairment loss is subsequently reversed, the carrying amount of the asset is increased to its revised estimate of its recoverable amount. However this increased amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for that asset in prior period. A reversal of an impairment loss is recognized as income immediately in the Profit & Loss Account.

P. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be outflow of resources. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value. Contingent liabilities are not recognized but are disclosed in the notes on accounts. Contingent assets are neither recognized nor disclosed in the financial statements and will be recognize only when its realization is virtually certain. However, there is no contingent liability or asset.

Q. USE OF ESTIMATES AND JUDGEMENTS

The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amount of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

R. FOREIGN CURRENCY TRANSACTIONS

As prescribed in Ind AS - 21 - "The effect of changes in foreign exchange rates", Transactions in foreign currency are recorded at the rates of exchange prevalent on the date of transaction. Exchange differences, if any arising from foreign currency transactions are dealt in the statement of profit and loss at year end rates.

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Mar 31, 2016

A. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention method, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 2013, as adopted consistently by the Company. The Company has followed Mercantile System of Accounting and the accounts have been made consistently on accrual basis as a going concern.

The Company complies with the relevant provisions of the Companies Act, 2013 and applicable accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 issued by the Central Government of India and the guidelines issued by the Securities and Exchange Board of India (SEBI) to the extent applicable.

The financial statements are presented in Indian rupees rounded off to the nearest rupee.

B. Stock in Trade

Inventories are stated at the lower of cost or net realizable value after providing for obsolescence, if any. Cost of Inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition.

C. Cash Flow Statement

As required by Accounting Standard-3 “Cash Flow Statement” issued by “The Institute of Chartered Accountants of India” the Cash Flow for the period is reported using indirect method. The Cash and Cash Equivalent of the Company comprises of Cash in hand and Current account with Scheduled Banks.

D. Depreciation

Depreciation for current financial year has been provided on straight-line method in the manner and as per the useful lives of the Assets specified in Schedule II to the Companies Act, 2013 and on pro rata basis from the date of installation till the date the assets are sold or disposed off.

E. Revenue Recognition

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

a) Sales are recognized on generation of sale bill or clearance of goods from factory whichever is earlier and are recorded exclusive of excise duty, service tax and sales tax.

b) Export benefits are recognized on accrual basis.

c) Scrap, salvaged/waste materials and sweepings are recognized on actual realization basis.

F. Fixed Assets

All assets held with the intention of being used for the purpose of producing goods or providing services and not for sale in the normal course of business are recognized as Fixed Assets and are stated at cost less accumulated depreciation after considering lease adjustment account. All costs including finance cost attributable to fixed assets till assets are ready for intended use are capitalized.

G. Investments

Investments are recognized as recommended in AS 13. Accordingly following policies have been adopted in respect of Investments made:

i) Investments that are readily realizable and are intended not to be held for more than one year from the date of acquisition are classified as current investments. All other investments are classified as Long term investments.

ii) The Company values its Investments based on the Accounting Standard- 13 “Accounting for Investment” issued by the Institute of Chartered Accountants of India:

a) Investment held as long-term investments are valued at cost. Provision for diminution in value is made only if there is a permanent decline in their net realizable value.

b) Current investments are valued at lower of cost or net realizable value.

H. Employee Retirement Benefits

Contributions to Provident Fund made during the year, are charged to Statement of Profit and Loss for the period.

The Company has taken Workmen Compensation Policy to meet the requirement in case of any accident or death of the worker. This contribution to the said plan is charged to Profit & Loss account. The company has no further obligation beyond its contribution to plan.

I. Borrowing Costs

i) Borrowing costs, which are directly attributable to the acquisition /construction of fixed assets, till the time such assets are ready for intended use, are capitalized as a part of the cost of assets.

ii) All borrowing costs other than mentioned above are expensed in the period they are incurred. In case unamortized identified borrowing cost is outstanding at the year end, it is classified under loans and advances as unamortized cost of borrowings.

iii) In case any loan is prepaid/ cancelled then the unamortized borrowing cost, if any, is fully expensed off on the date of prepayment/cancellation.

J. Related Parties

Parties are considered to be related if at any time during the reporting period one party has the ability to control the other party or exercise significant influence over the other party in making financial and/or operating decisions.

As required by AS-18 “Related Party Disclosure” only following related party relationships are covered:

(a) Enterprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise (this includes holding Companies, subsidiaries and fellow subsidiaries);

(b) Associates and joint ventures of the reporting enterprise and the investing party or venture in respect of which the reporting enterprise is an associate or a joint venture;

(c) Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual;

(d) Key management personnel (KMP) and relatives of such personnel; and

(e) Enterprises over which any person described in (c) or (d) is able to exercise significant influence.

K. Lease Assets

Assets taken on lease are accounted for in accordance with AS-19 “Accounting for Lease” issued by “The Institute of Chartered Accountants of India”.

L. Earnings Per Share

The Earning per Share (Basic as well as Diluted) is calculated based on the net profit or loss for the period attributable to equity shareholders i.e. the net profit or loss for the period after deducting Proposed Preference Dividend and any attributable tax thereto. For the purpose of calculating (Basic and Diluted EPS), the number of equity shares taken are the weighted average number of equity shares outstanding during the period.

M. Segment Reporting

The Segment report of the Company has been prepared in accordance with the Accounting Standard-17 “Segment Reporting” issued by The Institute of Chartered Accountants of India.

N. Intangible Assets

Intangible assets are recognized only when four of below mentioned criteria are fulfilled:

a) Asset is identifiable.

b) Control of the enterprise over that asset.

c) It is probable that future economic benefits attributable to the asset will flow to the enterprise.

d) Cost of the asset can be measured reliably.

If any of the above four criteria is not fulfilled the expenditure incurred to acquire the asset is recognized as an expense, in the year in which it is incurred.

Intangible assets are initially measured at cost, after initial recognition the intangible asset is carried at its carrying value i.e. cost less any accumulated amortization and accumulated impairment losses.

O. Impairment of Assets

An asset is treated as impaired, when carrying cost of asset exceeds its recoverable amount.

At each Balance Sheet Date, it is seen that whether there is any indication that an asset may be impaired, if any such indication exist, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss; if any. Such impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired.

When an impairment loss is subsequently reversed, the carrying amount of the asset is increased to its revised estimate of its recoverable amount. However this increased amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for that asset in prior period. A reversal of an impairment loss is recognized as income immediately in the Profit & Loss Account.

P. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be outflow of resources. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value. Contingent liabilities are not recognized but are disclosed in the notes on accounts. Contingent assets are neither recognized nor disclosed in the financial statements and will be recognize only when its realization is virtually certain.

Q. Use of Estimates and Judgments

The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amount of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

R. Foreign Currency Transactions

As prescribed in Accounting Standard 11 (AS- 11)- “The effect of changes in foreign exchange rates”, Transactions in foreign currency are recorded at the rates of exchange prevalent on the date of transaction. Exchange differences, if any arising from foreign currency transactions are dealt in the statement of profit and loss at year end rates.

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Mar 31, 2015

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention method, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 2013, as adopted consistently by the Company. The Company has followed Mercantile System of Accounting and the accounts have been made consistently on accrual basis as a going concern.

The Company complies with the relevant provision of the Companies Act, 2013 and applicable accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 issued by the Central Government of India and the guidelines issued by the Securities and Exchange Board of India (SEBI) to the extent applicable.

The financial statements are presented in Indian rupees rounded off to the nearest rupee.

B. STOCK IN TRADE

Inventories are stated at the lower of cost or net realizable value after providing for obsolescence, if any. Cost of Inventories comprises of cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition.

C. CASH FLOW STATEMENT

As required by Accounting Standard-3 "Cash Flow Statement" issued by "The Institute of Chartered Accountants of India" the Cash Flow for the period is reported using indirect method. The Cash and Cash Equivalent of the Company comprises of Cash in hand and Current account with Scheduled Banks.

D. DEPRECIATION

Till last financial year Depreciation has been provided on straight-line method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation for current financial year has been provided on straight-line method in the manner and at the rates specified in Schedule II to the Companies Act, 2013 and on pro rata basis from the date of installation till the date the assets are sold or disposed off.

E. REVENUE RECOGNITION

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

a) Sales are recognized on generation of sale bill or clearance of goods from factory whichever is earlier and are recorded exclusive of excise duty, service tax and sales tax.

b) Export benefits are recognized on accrual basis.

c) Scrap, salvaged/waste materials and sweepings are recognized on actual realization basis.

F . FIXED ASSETS

All assets held with the intention of being used for the purpose of producing goods or providing services and not for sale in the normal course of business are recognized as Fixed Assets and

are stated at cost less accumulated depreciation after considering lease adjustment account. All costs including finance cost attributable to fixed assets till assets are ready for intended use are capitalized.

G. INVESTMENTS

Investments are recognized as recommended in AS 13. Accordingly following policies have been adopted in respect of Investments made:

i) Investments that are readily realizable and are intended not to be held for more than one year from the date of acquisition are classified as current investments. All other investments are classified as Long term investments.

ii) The Company values its Investments based on the accounting standard issued by the Institute of Chartered Accountants of India:

a) Investment held as long-term investments are valued at cost. Provision for diminution in value is made only if there is a permanent decline in their net realizable value.

b) Current investments are valued at lower of cost or net realizable value.

c) Investments in shares are valued at cost or market value whichever is less.

H. EMPLOYEE RETIREMENT BENEFITS

Contributions to Provident Fund made during the year, are charged to Statement of Profit and Loss for the period.

The Company has taken a workmen Compensation policy for all the workers to meet the requirement in case of any accident or death of the worker. This amount is charged to Profit & Loss account. The company has no further obligation beyond its contribution to plan.

I. BORROWING COSTS

i) Borrowing costs, which are directly attributable to the acquisition /construction of fixed assets, till the time such assets are ready for intended use, are capitalized as a part of the cost of assets.

ii) All borrowing costs other than mentioned above are expensed in the period they are incurred. In case of unamortized identified borrowing cost is outstanding at the year end, it is classified under loans and advances as unamortized cost of borrowings.

iii) In case any loan is prepaid/ cancelled then the unamortized borrowing cost, if any, is fully expensed off on the date of prepayment/cancellation.

J. RELATED PARTIES

Parties are considered to be related if at any time during the reporting period one party has the ability to control the other party or exercise significant influence over the other party in making financial and/or operating decisions.

As required by AS-18 "Related Party Disclosure" only following related party relationships are covered:

(a) Enterprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise (this includes holding Companies, subsidiaries and fellow subsidiaries);

(b) Associates and joint ventures of the reporting enterprise and the investing party or venture in respect of which the reporting enterprise is an associate or a joint venture;

(c) Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual;

(d) Key management personnel (KMP) and relatives of such personnel; and

(e) Enterprises over which any person described in (c) or (d) is able to exercise significant influence.

K. LEASE ASSETS

Assets taken on lease are accounted for in accordance with AS-19 " Accounting for Lease" issued by "The Institute of Chartered Accountants of India".

L. EARNING PER SHARE

The Earning per Share (Basic as well as Diluted) is calculated based on the net profit or loss for the period attributable to equity shareholders i.e. the net profit or loss for the period after deducting Proposed Preference Dividend and any attributable tax thereto.

For the purpose of calculating (Basic and Diluted EPS), the number of equity shares taken are the weighted average number of equity shares outstanding during the period.

M. SEGMENT REPORTING

The Segment report of the Company has been prepared in accordance with the Accounting Standard-17 "Segment Reporting" issued by The Institute of Chartered Accountants of India.

N. INTANGIBLE ASSETS

Intangible assets are recognized only when four of below mentioned criteria are fulfilled:

a) Asset is identifiable.

b) Control of the enterprise over that asset.

c) It is probable that future economic benefits attributable to the asset will flow to the enterprise.

d) Cost of the asset can be measured reliably.

If any of the above four criteria is not fulfilled the expenditure incurred to acquire the asset is recognized as an expense, in the year in which it is incurred.

Intangible assets are initially measured at cost, after initial recognition the intangible asset is carried at its carrying value i.e. cost less any accumulated amortization and accumulated impairment losses.

O. IMPAIRMENT OF ASSETS

An asset is treated as impaired, when carrying cost of asset exceeds its recoverable amount.

At each Balance Sheet Date, it is seen that whether there is any indication that an asset may be impaired, if any such indication exist, the recoverable amount of the asset is estimated in

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Mar 31, 2014

A. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention method, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the Company and comply in all material respect with the Accounting Standards modified by Companies Accounting Standards (Rules) 2006, to the extent applicable.

The Company has followed Mercantile System of Accounting and the accounts have been made consistently on accrual basis as a going concern.

B. Revenue Recognition:

a) Sales are recognized on generation of sale bill or clearance of goods from factory whichever is earlier and are recorded exclusive of excise duty, service tax and sales tax.

b) Export benefits are recognized on accrual basis.

c) Scrap, salvaged/waste materials and sweepings are recognized on actual realization basis.

C. Cash Flow Statement

As required by Accounting Standard-3 "Cash Flow Statement" issued by "The Institute of Chartered Accountants of India" the Cash Flow Statement for the period is reported using indirect method.

D. Fixed Assets

All assets held with the intention of being used for the purpose of producing or providing goods or services and are not held for sale in the normal course of business, are accounted as Fixed Assets and are stated at cost less accumulated depreciation after considering lease adjustment account. All costs including finance cost attributable to fixed assets till assets are ready for intended use are capitalized.

E. Lease Assets

Assets taken on lease are accounted for in accordance with AS-19 "Leases" issued by "The Institute of Chartered Accountants of India".

F. Depreciation

Depreciation on all assets is provided on "straight line basis" in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956:

Depreciation on additions is being provided on prorata basis from the date of such addition.

Depreciation on assets sold, discarded or demolished during the year is being provided upto the date on which such assets are sold, discarded or demolished.

G. Investments

Current investments are carried at lower of cost or realisable value. Long term investments are stated at cost.

H. Borrowing Costs

Borrowing costs, which are directly attributable to the acquisition/construction of qualifying assets, till the time such assets are ready for intended use, are capitalized as part of the cost of the assets. Other borrowing costs are recognized as an expense in the year in which they are incurred.

I. Expenditure during Construction (EDC)

All pre-operative costs incidental to set up of new projects are accumulated as EDC.

J. Inventories

Inventories are stated at the lower of cost or net realizable value.

K. Exchange Fluctuation:

a) Foreign currency transactions are accounted at the exchange rates prevailing at the date of the transaction and gain or loss on account of exchange is recognized in the Statement of Profit and Loss in the period in which they arise.

b) Exchange differences arising in relation to acquisition of a fixed asset are capitalized.

c) Outstanding liabilities and assets are restated at exchange rate prevailing at the end of the year.

L. Impairment of Assets

An asset is treated as impaired, when carrying cost of asset exceeds its recoverable amount.

At each Balance Sheet Date, it is seen that whether there is any indication that an asset may be impaired, if any such indication exist, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss; if any. Such impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired.

When an impairment loss is subsequently reversed, the carrying amount of the asset is increased to its revised estimate of its recoverable amount. However this increased amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for that asset in prior period. A reversal of an impairment loss is recognized as income immediately in the Profit & Loss Account.

M. Employee / retirement Benefits:

The Company has taken a workmen Compensation policy for all the workers to meet the requirement in case of any accident or death of the worker. This amount is charged to Profit & Loss account. The company has no further obligation beyond its contribution to plan.

N. Related Parties

Parties are considered to be related if at any time during the reporting period one party has the ability to control the other party or exercise significant influence over the other party in making financial and/or operating decisions.

As required by AS-18 "Related Party Disclosure" only following related party relationships are covered:—

(a) Enterprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise (this includes holding Companies, subsidiaries and fellow subsidiaries);

(b) Associates and joint ventures of the reporting enterprise and the investing party or venture in respect of which the reporting enterprise is an associate or a joint venture;

(c) Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual;

(d) Key management personnel (KMP) and relatives of such personnel; and

(e) Enterprises over which any person described in (c) or (d) is able to exercise significant influence

O. Provision for Current Tax and Deferred Tax

Income tax expenses comprise current tax (i.e. amount of tax for the period determined in accordance with the Income Tax law) and deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future: however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets, deferred tax assets/ liabilities are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/virtually certain (as the case may be ) to be realized/incurred. Provisions of AS 22 Accounting for Taxes on income'' issued by Institute of Chartered Accountants of India have been complied with as far as possible.

P. 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 past events and it is probable that there will be outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

Q. Earning per Share (EPS)

The Earning per Share (Basic as well as Diluted) is calculated based on the net profit or loss for the period attributable to equity shareholders computed in accordance with Accounting Standard 20, i.e. the net profit or loss for the period after deducting Proposed Preference Dividend and any attributable tax thereto.

For the purpose of calculating (Basic and Diluted EPS), the number of equity shares taken are the weighted average number of equity shares outstanding during the period.

R. Segment Reporting

The Segment report of the Company has been prepared in accordance with the Accounting Standard-17 "Segment Reporting" issued by The Institute of Chartered Accountants of India.

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Mar 31, 2013

A. Basis of Preparation of Financial State- ments

The financial statements have been pre- pared under the historical cost convention method, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the Company and comply in all material respect with the Ac- counting Standards modified by Compa- nies Accounting Standards (Rules) 2006, to the extent applicable.

The Company has followed Mercantile System of Accounting and the accounts have been made consistently on accrual basis as a going concern.

B. Cash Flow Statement

As required by Accounting Standard-3 "Cash Flow Statement" issued by "The In- stitute of Chartered Accountants of India" the Cash Flow for the period is reported using indirect method.

C. Fixed Assets

All assets held with the intention of be- ing used for the purpose of producing or providing goods or services and are not held for sale in the normal course of busi- ness, are accounted as Fixed Assets and are stated at cost less accumulated depre- ciation after considering lease adjustment account. All costs including finance cost attributable to fixed assets till assets are ready for intended use are capitalized.

D. Lease Assets

Assets taken on lease are accounted for in accordance with AS-19 "Leases" issued by "The Institute of Chartered Accountants of India".

E. Depreciation

Depreciation on all assets is provided on "straight line basis" in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956

Depreciation on additions is being provid- ed on prorata basis from the date of such addition.

Depreciation on assets sold, discarded or demolished during the year is being pro- vided upto the date on which such assets are sold, discarded or demolished.

F . Investments

Current investments are carried at lower of cost and quoted/fair value, computed category wise. Long term investments are stated at cost. Provision for diminution in their value, other than temporary, is made in the accounts.

G. Borrowing Costs

Borrowing costs, which are directly attrib- utable to the acquisition/construction of qualifying assets, till the time such assets are ready for intended use, are capitalized as part of the cost of the assets. Other bor- rowing costs are recognized as an expense in the year in which they are incurred.

H. Related Parties

Parties are considered to be related if at any time during the reporting period one party has the ability to control the other party or exercise significant influence over the other party in making financial and/or operating decisions.

As required by AS-18 "Related Party Dis- closure" only following related party rela- tionships are covered:-

(a) Enterprises that directly, or indirectly through one or more intermediaries, con- trol, or are controlled by, or are under com- mon control with, the reporting enterprise (this includes holding Companies, subsid- iaries and fellow subsidiaries);

(b) Associates and joint ventures of the report- ing enterprise and the investing party or venture in respect of which the reporting enterprise is an associate or a joint ven- ture;

(c) Individuals owning, directly or indirectly, an interest in the voting power of the re- porting enterprise that gives them control or significant influence over the enter- prise, and relatives of any such individual;

(d) Key management personnel (KMP) and relatives of such personnel; and

(e) Enterprises over which any person de- scribed in (c) or (d) is able to exercise sig- nificant influence

I. Provision for Current Tax and Deferred Tax

Income tax expenses comprise current tax (i.e. amount of tax for the period de- termined in accordance with the Income Tax law) and deferred tax charge or credit (reflecting the tax effect of timing differ- ences between accounting income and tax- able income for the period). The deferred tax charge or credit and the correspond- ing deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future: however, where there is unabsorbed depreciation or carried for- ward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such as- sets, deferred tax assets/ liabilities are re- viewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/virtually cer- tain (as the case may be ) to be realized/ incurred. Provisions of AS 22 ‘Accounting for Taxes on income'' issued by Institute of Chartered Accountants of India have been complied with as far as possible.

J. Provisions, Contingent Liabilities and Contingent Assets

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

K. Earning per Share (EPS)

The Earning per Share (Basic as well as Di- luted) is calculated based on the net profit or loss for the period attributable to equity shareholders computed in accordance with Accounting Standard 20, i.e. the net profit or loss for the period after deducting Proposed Preference Dividend and any at- tributable tax thereto.

For the purpose of calculating (Basic and Diluted EPS), the number of equity shares taken are the weighted average number of equity shares outstanding during the pe- riod.