Accounting Policies of Stylam Industries Ltd. Company

Mar 31, 2023

Significant accounting policies

2.1 Basis of Preparation and measurement

a) Basis of preparation

These financial statements have been prepared in
accordance with the Indian Accounting Standards
(hereinafter referred to as the ‘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.

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

The financial statements of the Company for the year
ended March 31, 2023 were approved for issue in
accordance with the resolution of the Board of Directors
on May 05, 2023

b) Basis of measurement

These Standalone Financial statements are prepared
under the historical cost convention unless otherwise
indicated.

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.

Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised and
future periods affected.

Key source of estimation of uncertainty at the date of
financial statements, which may cause material adjustment
to the carrying amounts of assets and liabilities within the
next financial year, is in respect of impairment, useful lives
of property and plant and equipment, provisions, valuation
of deferred tax liabilities, contingent liabilities and fair value
measurements of financial instruments as discussed below.

Key source of estimation of uncertainty in respect of revenue
recognition and employee benefits have been discussed in
the respective policies.

Continuous evaluation is done on the estimation. Actual
results may differ from these estimates.

2.3 Current versus non-current classification

All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle
and other criteria as set out in the Division II of Schedule III to
the Companies Act, 2013.

The Company presents assets and liabilities in the Balance
Sheet based on current/ non-current classification. An asset
is treated as current when:

• It is expected to be realised or intended to be sold or
consumed in normal operating cycle;

• It is held primarily for the purpose of trading;

• It is expected to be realised within twelve months after
the reporting period; or

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

The Company classifies all other assets as non-current.

A liability is current when:

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

• It is held primarily for the purpose of trading;

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

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

The Company classifies all other liabilities as non-current.

The operating cycle is the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents. The Company has identified twelve months
as its operating cycle for the purpose of current and non¬
current classification of assets and liabilities.

2.4 Significant accounting policies

(a) Property, plant and equipment (PPE)

- Property, plant and equipment

Items of property, plant and equipment are stated at
cost less accumulated depreciation and accumulated
impairment loss, if any. The cost of assets comprises of
purchase price and directly attributable cost of bringing
the assets to working condition for its intended use
including borrowing cost and incidental expenditure
during construction incurred up to the date when the
assets are ready for intended use. Capital work in
progress includes cost of assets at sites, construction
expenditure and interest on the funds deployed less
any impairment loss, if any. If significant parts of an item
of property, plant and equipment have different useful
lives, then they are accounted for as a separate item
(major components) of property, plant and equipment.
As per the assessment made by the management,
property plant does not comprise any significant
components with different useful life. Any gain on
disposal of property, plant and equipment is recognised
in Statement of Profit and loss. Costs in nature of repairs
and maintenance are recognised in the Statement of
Profit and Loss as and when incurred.

- Subsequent Measurement

Subsequent expenditure is capitalised only if it is
probable that there is a future economic benefit
associated with the expenditure will flow to the
Company and the cost can be measured reliably.

- Capital work in progress

Capital work-in-progress comprises of assets in the
course of construction for production or/and supply
of goods or services or administrative purposes, are
carried at cost, less any recognised impairment loss. At
the point when an asset is operating at management''s
intended use, the cost of construction is transferred
to the appropriate category of property, plant and
equipment. Costs associated with the commissioning of
an asset are capitalised where the asset is available for
use and commissioning has been completed.

- Capital Advances

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".

(b) Depreciation and amortization methods, estimated
useful lives and residual value

Depreciation is provided on straight line basis on the
original cost/ acquisition cost of assets or other amounts

substituted for cost of fixed assets as per the useful life
specified in Part ''C of Schedule II of the Act, read with
notification dated 29 August 2014 of the Ministry of
Corporate Affairs.

(c) Intangibles

Intangible Assets acquired separately are stated at cost
less accumulated amortization and impairment loss, if any.

An intangible asset is derecognised on disposal, or when
no future economic benefits are expected from use or
disposal. Gains or losses arising from de-recognition of
an intangible asset, measured as the difference between
the net disposal proceeds and the carrying amount of
the asset are recognised in the statement of profit and
loss when the asset is derecognised. Intangible assets
with indefinite useful lives and intangible assets not yet
available for use are tested for impairment annually, and
whenever there is an indication that the asset may be
impaired, impairment loss is recognised in the statement
of profit & loss.

- Amortisation

Intangible Assets are amortized on a Straight Line basis
over the estimated useful economic life. The estimated
useful lives of intangible assets are assessed as 6 years.
Amortisation methods, useful lives and residual values
are reviewed in each financial year end and changes, if
any, are accounted for prospectively.

(d) De-recognition

The carrying amount of an item of property, plant
and equipment is derecognised on disposal or when
no future economic benefits are expected from its
use or disposal. The gain or loss arising from the de¬
recognition of an item of property, plant and equipment
is measured as the difference between the net disposal
proceeds and the carrying amount of the item and is

recognised in the Statement of Profit and Loss when the
item is derecognised.

(e) Non-current assets held for sale

Non-current asset, are classified as held for sale if it is
highly probable that they will be recovered primarily
through sale rather than through continuing use.

Such asset, are generally measured at the lower of their
carrying amount and fair value less cost to sell.

Losses on initial classification as held for sale and
subsequent gains and losses on re-measurement are
recognised in the Statement of Profit and Loss.

Once classified as held-for sale, property, plant and
equipment are no longer amortized or depreciated.

(f) Investments in Subsidiaries, and Associates

Investments in Subsidiary, and Associates are carried at
cost less accumulated impairment losses, if any.

During the year subsidiary “M/s Stylam Asia Pacific Pte
Ltd “ has been striked off.

Financial Assets

- Initial Recognition and measurement

All financial assets are recognised initially at fair value
plus, in the case of financial assets not recorded at
fair value through profit or loss, transaction costs
that are attributable to the acquisition of the financial
asset. However, trade receivables that do not contain
a significant financing component are measured at
transaction price.

- Cash and cash equivalents

• Cash and cash equivalent comprise cash at banks
and on hand and short-term deposits with an
original maturity of three months or less, which are
subject to an insignificant risk of changes in value.
These balances with banks are unrestricted for
withdrawal and usage.

• Other bank balances include balances and deposits
with banks that are restricted for withdrawal and usage

- Recoverability of trade receivable

Judgments are required in assessing the recoverability
of overdue trade receivables and determining whether a
provision against those receivables is required. Factors
considered include the worth of the counterparty, the
amount and timing of anticipated future payments and
any possible actions that can be taken to mitigate the
risk of non-payment.

- Derivative financial instruments and Hedge Accounting

The Company uses various derivative financial
instruments such as forwards and options contracts to
mitigate the risk of changes in exchange rates. Such
derivative financial instruments are initially recognised
at fair value on the date on which a derivative contract is
entered into and are also subsequently measured at fair
value. Derivatives are carried as financial assets when
the fair value is positive and as financial liabilities when
the fair value is negative.

Any gains or losses arising from changes in the fair
value of derivatives are taken directly to Statement
of Profit and Loss, except for the effective portion
of cash flow hedges which is recognised in Other
Comprehensive Income and later to Statement of Profit
and Loss when the hedged item affects profit or loss
or treated as basis adjustment if a hedged forecast
transaction subsequently results in the recognition of a
non-financial assets or non-financial liability.

- Impairment of financial assets

The impairment provisions for financial assets are based
on assumptions about risk of default and expected
cash loss rates. The Company uses judgement in
making these assumptions and selecting the inputs to
the impairment calculation, based on Company''s past
history, existing market conditions as well as forward
looking estimates at the end of each reporting period.

Financial Liabilities

- Initial recognition and measurement

All financial liabilities are recognised at fair value and
in case of loans, net of directly attributable cost. Fees
of recurring nature are directly recognised in the
Statement of Profit and Loss as finance cost.

- Subsequent measurement

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or loss,
amortised cost, as appropriate.

All financial liabilities are recognised initially at fair
value and, in the case of amortised cost, net of directly
attributable transaction costs.

- Derecognition

A financial liability is derecognised when the obligation
specified in the contract is discharged, cancelled or expire.

(i) Impairment of non-financial assets

At each balance sheet date, the carrying amount of fixed
assets is reviewed by the management to determine
whether there is any indication that those assets
suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated
in order to determine the extent of impairment loss
(recoverable amount is the higher of an asset''s net
selling price or value in use). In assessing the value in
use, the estimated future cash flows expected from the
continuing use of the assets and from their disposal are
discounted to their present value using a pre discounted
rate that reflects the current market assessment of time
value of money and risks specific to the asset.

Reversal of impairment loss is recognised immediately
as income in the Profit and Loss Account.

(j) Valuation of deferred tax liabilities

The Company reviews the carrying amount of deferred
tax liabilities at the end of each reporting period.

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Mar 31, 2018

1. Significant accounting policies

This note provides” a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated,

(a) Basis of preparation

(i) Statement of compliance

These Standalone Ind AS Financial Statements (‘‘financial statements”) have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act. 2013, (“the Act”) and other relevant provisions of the Act.

The financial statements up to and for the year ended 31 March 2017 were prepared in accordance with the Companies {Accounting Standards) Rules, 2006 (previous GAAP), notified under Section 133 of the Act and other relevant provisions of the Act.

As these are the Company’s first financial statements prepared in accordance with Ind AS. Ind AS 101, First-time Adoption of Indian Accounting Standards has been applied. An explanation of how the transition to Ind AS has affected the previously reported financial position, financial performance and cash Hows of the Company is provided in Note ,.

(ii) Historical cost convention

The financial statements have been prepared under historical cost convention on accrual basis, unless otherwise stated.

(b) Current versus non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current/ non-current classification. An asset is treated as current when:

- It is expected to be realised or intended to be sold or consumed in normal operating cycle;

- It is held primarily for the purpose of trading:

- It is expected to be realised within twelve months after the reporting period: or

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

The Company classifies all other assets as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle:

- It is held primarily for the purpose of trading;

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

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

The Company classifies all other liabilities as noncurrent.

Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle for the purpose of current and non- current classification of assets and liabilities.

(c) Property, plant and equipment (PPE)

(i) Property, plant and equipment Freehold land is carried at cost.

Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.

Expenses incurred relating to project, net of income earned during the project development stage prior to its intended use, are considered as pre - operative expenses and disclosed under Capital Work - in -Progress.

Expenditure incurred on commissioning of the project and/or substantial expansion, including the expenditure incurred on trial runs [net of trial run receipts, if any) up to the date of commencement of commercial production are capitalized. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is de-recognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Advances paid towards acquisition of property, plant and equipment outstanding at each Balance Sheet date, are shoivn under other non-current assets and cost of assets not ready for intended use before the year end, are shown as capital work-in- progress.

(ii) Depreciation and amortization methods, estimated useful lives and residual value

Depreciation is provided on straight line basis on the original cost/ acquisition cost of assets or other amounts substituted for cost of fixed assets as per the useful life specified in Part ‘C of Schedule II of the Act, read with notification dated 29 August 2014 of the Ministry of Corporate Affairs,

The useful life is as follows:

{iii) De-recognition

A property, plant and equipment is de-recognized on disposal or when no future economic benefits are expected from its use and disposal. Losses arising from retirement and gains or losses arising from disposal of a tangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss.

(iv) Transition to Ind AS

On transition to Ind AS, the Company has elected to measure all its property, plant and equipment at the previous GAAP cariying amount as its deemed cost on the date of transition of Ind AS i.e, 1 April 2016.

On transition to Ind AS, the Company has elected to exercise the option under Ind AS 21 for accounting of Exchange differences pertaining to long term foreign currency monetary items that are related to acquisition of depreciable/ amortizable assets to adjust in the carrying amount of the related property, plant and equipment in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP. Accordingly amortization and depreciation on exchange fluctuation capitalized is charged over the remaining useful life of the respective assets.

(d) Non-current assets held for sale

Mon-current asset, are classified as held for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use.

Such asset, are generally measured at the lower of their carrying amount and fair value less cost to sell.

Losses on initial classification as held for sale and subsequent gains and losses on re-measurement are recognized in the Statement of Profit and Loss.

Once classified as held-for sale, property, plant and equipment are no longer amortized or depreciated.

(e) Impairment of non-financial assets

At each balance sheet date, the carrying amount of fixed assets is reviewed by the management to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss (recoverable amount is the higher of an asset’s net selling price or value in use). In assessing the value in use, the estimated future cash flows expected from the continuing use of the assets and from their disposal are discounted to their present value using a pre discounted rate that reflects the current marker assessment of time value of money and risks specific to the asset.

Reversal of impairment loss is recognized immediately as income in the Profit and Loss Account.

(f) Inventories

Items of inventories are measured at lower of cost and net realizable value.

Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes incurred in bringing them to their respective present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale,

(g) Cash and cash equivalents

Cash and cash equivalent comprise cash at banks and on hand (including imprest) and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

(h) Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

(i) Revenue recognition

Revenue from sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated cost can be estimated reliably, there is no continuing effective control or managerial involvement with the goods, and the amount of revenue can he measured reliably.

Revenue from operations includes sate of goods plus excise duty, till 30.06.2017. Post the applicability of Goods & Service Tax (GST) with effect from 01^st July 2017, revenue from operations is disclosed net of GST.

Revenue from operations is adjusted with gain/ loss on corresponding on foreign currency transactions related to export.

Export incentive entitlements are recognised as income when the right to receive credit as per the terms of the scheme is established in respect of the exports made, and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds. These are presented as other operating income in the Statement of Profit and Loss.

Other income is accounted for on accrual basis as and when the right to receive arises

(j) Financial instrument

A Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(i) Financial assets Recognition and measurement

All financial assets are recognised at fair value.

(ii) Financial liabilities

Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

Subsequent measurement

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

(iii) Derivative financial instruments and Hedge Accounting

The Company uses various derivative financial instruments such as forwards and options contracts to mitigate the risk of changes in exchange rates. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are also subsequently measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss, except for the effective portion of cash flow hedges which is recognised in Other Comprehensive Income and later to Statement of Profit and Loss when the hedged item affects profit or loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financial assets or non-financial liability.

(k) Employee benefits expense

(i) Short-term employee benefits: All employee benefits falling due within twelve months of the end of the period in which the employees render the related services are classified as short term employee benefits, which include benefits like salaries, wages, short term compensated absences, performance incentives, etc. and are recognised as expenses in the period in which the employee renders the related service and measured accordingly.

(ii) Post-employment benefits: Post employment benefit plans are classified into defined benefits plans and defined contribution plans as under:

a) Defined Gratuity Plans

The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation/superannuation. The gratuity is paid @15 days salary for every completed year of service as per the Payment of Gratuity Act 1972.

The plan provides for a lump sum payment to vested employees at retirement, death while in employment or 011 termination of employment of an amount based on the respective employee’s salary and the tenure of employment. The liability in respect of Gratuity is recognised in the books of accounts based on actuarial valuation by an independent actuary.

b) Defined Contribution Plans

The contribution to provident fund and pension fund and employee state insurance are considered as defined contribution plans and are charged to the statement of profit and loss of the year as they fall due, based on the amount of the contribution required to be made.

c) Compensated absences

As per the Company’s policy, eligible leaves can be accumulated by the employees and carried forward to future periods to either be utilized during the service, or encashed. Encashment can be made during service, on early retirement, on withdrawal of scheme, at resignation and upon death of the employee. Accumulated compensated absences are treated as other long-term employee benefits .The Company’s liability in respect of other long-term employee benefits is recognised in the books of account based on actuarial valuation using projected unit credit method as at Balance Sheet date by an independent actuary. Actuarial losses/gains are recognised in the Statement of Profit and Loss in the year in which they arise.

Actuarial valuation

The liability in respect of all defined benefit plans is accrued in the books of account on the basis of actuarial valuation carried out by an independent actuary using the Projected Unit Credit Method, which recognizes each year of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to build up the final obligation. The obligation is measured at the present value of estimated future cash flows. The discount rates used for determining the present value of obligation under defined benefit plans, is based on the market yields on Government securities as at the Balance Sheet date, having maturity periods approximating to the terms of related obligations. Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive Income.

(I) Finance costs

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

(m) Tax Expenses

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which case, the tax is also recognised in other comprehensive income or equity.

- Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance Sheet date.

- Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

(n) Foreign currencies transactions and translation

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date,

On transition to Ind AS, the Company has elected to exercise the option for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first ind AS financial reporting period as per the previous GAAP.

Thus, exchange differences pertaining to long term foreign currency monetary items that are related to acquisition of depreciable assets are adjusted in the carrying amount of the related fixed assets.

(o) Earnings per share

(i) Basic & Diluted earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company

* by the weighted average number of equity shares outstanding during the financial year

(0) Critical estimates and judgements

The preparation of Financial Statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

(1) Depreciation / amortisation and useful lives of property plant and equipment

Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting period. The useful lives and residual values are based on the Company’s historical experience with similar assets and take into account anticipated technological changes- The depreciation / amortisation for future periods is revised if there are significant changes from previous estimates.

(ii) Recoverability of trade receivable

Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the worth of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

(iii) Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

(iv) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

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Mar 31, 2015

Not Available

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Mar 31, 2014

1.Basis of Accounting:

The financial statements are prepared under historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAPs), and materially comply with the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

2.Fixed Assets:

Fixed Assets are stated at cost of acquisition/construction net of CENVAT applicable CENVAT credit. The cost includes Purchase price and all other attributable costs of bringing the assets to its working condition for its intended use

3.Depreciation:

a. Depreciation on fixed assets is provided on straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956. No depreciation is charged on fixed assets where cumulative depreciation as on the beginning of year is either equivalent or more than the cost of assets. Individual assets purchased during the year and costing less than Rs.5,000/- are depreciated in full in the year of purchase.

b. Depreciation has been provided on Triple shift working basis.

4.Basis of Valuation of Inventories:

a. Raw Material :At lower of cost or net realizable value

b. Work in Progress :At lower of estimated cost or net realizable value

c. Finished Goods :At lower of cost or net realizable value

d. Consumable, Stores, Oil & Fuel :At lower of cost or net realizable value

5.Recognition of Income and Expenditure:

a. The revenue from sale of goods is recognized at the time of sale of goods.

b. Expenditure is recognized on accrual basis. However, certain income/ expenses which are indeterminable are accounted for as and when settled/ finalized.

6.Retirement & Other Benefits

a. Retirement Benefits The Gratuity and Leave Encashment is provided on yearly basis. The contribution to Provident Fund is made on monthly basis at prescribed rates.

b. Other Benefits The Contribution to E.S.I. Fund is made on monthly basis at prescribed rates. The provision for the payment of Bonus is made as per the applicable rules.

7.Foreign Currency Transactions

Transactions in foreign currencies for import and export of Raw materials, Capital goods and Finished goods are recorded at the rates prevailing on the date of transactions. Exchange gain or loss on conversion of liabilities incurred to acquire capital assets is adjusted to the cost of such assets. Exchange gain or losses on transactions of revenue nature are recognized in the Profit and Loss account.

8.Taxes on Income

Income tax comprises of current tax and deferred tax. The deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date.

9.Earning Per Share:

Basic earning per share is calculated by dividing the net profit for the period attributable to equity shareholders by the number of equity shares outstanding at the year-end.

10.Events Occuring after the Balance Sheet Data

Events occurring after the date of Balance Sheet are considered up to the date of finalization of accounts

11.Forward Contracts

The company uses foreign exchange forward and options contracts to hedge its exposure to movements in foreign exchange rates. The use of these foreign exchange forward and options contracts reduce the risk or cost to the company and the company does not use those for trading or speculation purpose

12.Contingent Liabilities

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as Contingent Liabilities and same are disclosed in Notes on Accounts.

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Mar 31, 2012

1. Basis of Accounting :

The financial statements are prepared under historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAPs), and materially comply with the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

2. Fixed Assets:

Fixed Assets are stated at cost of acquisition/construction net of applicable CENVAT credit. The cost includes Purchase price and all other attributable costs of bringing the assets to its working condition for its intended use.

3. Depreciation:

a. Depreciation on fixed assets is provided pro-rata to the period of use, using the straight-line method based at the rates specified in Schedule XIV to the Companies Act, 1956. No depreciation is charged on fixed assets where cumulative depreciation as on the beginning of year is either equivalent or more than the cost of assets. Individual assets purchased during the year and costing less than Rs.5,000/- are depreciated in full in the year of purchase.

b. Depreciation has been provided on Triple shift working basis.

4. Basis of Valuation of Inventories:

a. Raw Material: At lower of cost or net realizable value.

b. Work In Progress: At lower of estimated cost or net realizable value

c. Finished Goods: At lower of cost or net realizable value

d. Consumable, Stores, Oil & Fuel: At lower of cost or net realizable value.

5. Recognition of Income and Expenditure:

a. The revenue from sale of goods is recognized at the time of sale of goods.

b. Expenditure is recognized on accrual basis. However, certain income / expenses which are indeterminable are accounted for as and when settled / finalized.

6. Retirement & Other Benefits

a. Retirement Benefits

The Gratuity and Leave Encashment is provided on yearly basis. The contribution to Provident Fund is made on monthly basis at prescribed rates.

b. Other Benefits

The Contribution to E.S.I. Fund is made on monthly basis at prescribed rates. The provision for the payment of Bonus is made as per the applicable rules.

7. Foreign Currency Transactions

Foreign currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the Statement of Profit and loss. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

8. Taxes On Income

Income tax comprises of current tax and deferred tax. The deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date.

9. Earnings per share:

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the number of equity shares outstanding at the year-end.

10. Events Occurring After The Balance Sheet Date

Events occurring after the date of Balance Sheet are considered up to the date of finalization of accounts.

11. Forward Contracts

The company uses foreign exchange forward and options contracts to hedge its exposure to movements in foreign exchange rates. The use of these foreign exchange forward and options contracts reduce the risk or cost to the Company and the Company does not use those for trading or speculation purposes.

Effective April1, 2008, the Company adopted AS30, 'Financial Instruments: Recognition and Measurement', to the extent that the adoption did not conflict with existing accounting standards and other authoritative pronouncements of the Company Law and other regulatory requirements.

12. Contingent Liabilities

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as Contingent Liabilities and the same are disclosed in Notes on Accounts.

The company has capital reserves of Rs.26,68,000 as on 3lst March, 2012 which includes capital reserve against State subsidy of Rs.26,00,000 and capital reserve against generator subsidy of Rs.68,000,

During the current year the company has made adjustment as addition to general reserve on account of Minimum Alternative Tax entitlement of Rs. 15,77,878 paid during the previous financial year. The company has transferred hundred percent of the current year profits amounting to Rs. 2,81,59,574 available for distribution to the general reserve.

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Mar 31, 2010

1. Basis of Accounting:

The financial statements are prepared under historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAPs), and materially comply with the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

2. Fixed Assets:

2.1. Fixed Assets are stated at cost of acquisition/construction net of applicable CENVAT credit. The cost includes. Purchase price and all other attributable costs of bringing the assets to its working condition for its intended Use.

2.2. The cost of acquisition of imported machinery have been adjusted for exchange fluctuations arising due to difference in exchange rate.

2.3. The Company has capitalized the financing cost for the entire tenure of finance taken for setting up the project.

3. Depreciation:

3.1. Depreciation on fixed assets is provided pro-rata to the period of use, using the straight-line method based at the rates specified in Schedule XIV to the Companies Act, 1956. No depreciation is charged on fixed assets where cumulative depreciation as on the beginning of year is either equivalent or more than the cost of assets. Individual assets purchased during the year and costing less than Rs.5,000/- are depreciated in full in the year of purchase.

3.2. Depreciation has been provided on Triple shift working basis.

3.3. Depreciation on additions made during the year has been provided on pro-rata basis.

3.4. Depreciation on Interest Capitalized has been appropriated from General Reserve.

4. Basis of Valuation of Inventories:

RAW MATERIAL

At lower of cost or net realizable value

WORK IN PROGRESS

At lower of estimated cost or net realizable value

FINISHED GOODS

At lower of cost or net realizable value

CONSUMABLE, STORES, oil & fuel At lower of cost or net realizable value

5. Recognition of Income and Expenditure:

5.1. The revenue from sale of goods is recognized at the time of sale of goods.

5.2. Expenditure is recognized on accrual basis. However, certain income / expenses which are indeterminable are accounted for as and when settled / finalized.

6. INVESTMENTS

Investments are stated at Cost.

7. RETIREMENT & OTHER BENEFITS

7.1. Retirement Benefits

The Gratuity and Leave Encashment is provided on yearly basis as per records. The contribution to Provi- dent Fund is made on monthly basis at the prescribed rates.

7.2. Other Benefits

The Contribution to E.S.I. Fund is made on monthly basis at prescribed rates. The provision for the payment of Bonus is made as per the applicable rules.

8. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies for import and export of Raw materials, finished goods and Capital goods are recorded at the rates prevailing on the date of transactions. Exchange gain or loss on conversion of

liabilities incurred to acquire capital assets is adjusted to the cost of such assets. Exchange gain or losses on transactions of revenue nature are recognized in the Profit and Loss account.

9. Taxes on Income

Income tax comprises of current tax and deferred tax. The deferred tax assets and liabilities are recog- nized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date.

10. Earning Per Share

Basic earning per share is calculated by dividing the net profit for the period attributable to equity share- holders by the number of equity shares outstanding at the year-end.

11. EVENTS OCCURING AFTER THE BALANCE SHEET DATE

Events occurring after the date of Balance Sheet are considered up to the date of finalization of accounts

12. CONTINGENT LIABILITIES

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent Liabilities and same are disclosed in Notes on Accounts.