Accounting Policies of Tamilnadu Telecommunications Ltd. Company

Mar 31, 2025

II Significant Accounting Policies

a. Basis of Preparation of Financial Statements

Accounts are drawn up on the principle of going concern concept with revenues recognized and expenses accounted
on accrual basis and are prepared to comply in all material aspects with Indian Accounting Standards (Ind AS) as
prescribed under Section 133 of Companies Act 2013 read with relevant rules of the Companies (Indian Accounting
Standards) Rules with effect from 1st April 2016. Figures are rounded off to nearest rupees in hundreds. Refer Note
31 to the financial statements.

b. Use of estimates:

Preparation of financial statements in conformity with the recognition and the measurement principle of Ind AS
requires the management of the company to make estimates and assumptions that affects the reported balances of
assets and liabilities, disclosure relating to contingent liabilities as on the date of the Financial Statements and the
reported amount of incomes and expenses for the reporting period.

Estimates and the underlying assumption are reviewed on ongoing basis. The revision to the accounting estimates if
material is recognized in the period in which the estimates are revised.

2 Property, Plant and Equipment:

a. Property, Plant and Equipment are stated at cost net of accumulated depreciation and accumulated impairment
losses, if any.

b. The costs directly attributable including borrowing cost on qualifying asset are capitalized when the Property, Plant
and Equipment are ready for use, as intended by the management.

c. Subsequent expenditure relating to Property, Plant and Equipment including major inspection costs, spare parts,
standby and servicing equipment are capitalized only when it is probable that future economic benefits associated
with these will flow to the Company, the cost of the item can be measured reliably and the company expects to use
them during more than period.

d. Depreciation is calculated on straight line basis over estimated useful life as prescribed in Schedule II of the
Companies Act 2013, up-to the cost of the asset (net of residual value - which is considered at 5 % of cost of assets).

e. Plant and Equipment costing individually Rs. 5,000 and below are fully depreciated in the year of purchase.

f. Where the cost of an item of Property, Plant and Equipment are significant and have different useful lives, they are
treated as separate components and depreciated over their estimated useful lives.

g. Depreciation on Property, Plant and Equipment, added or deleted during the reporting period is provided from or till
the date of such addition or deletion.

h. The estimated useful lives, residual values and depreciation / amortization method are reviewed at the end of each
reporting period with the effect of changes in estimates accounted for on a prospective basis.

i. The cost of assets not put to use, before the year end are disclosed under Capital Work-in-Progress.

3 Impairment of Assets

As at the end of each Balance Sheet date, the carrying amount of assets is assessed as to whether there is any indication

of impairment. If the estimated recoverable amount is found less than its carrying amount, the impairment loss is recognized

and assets are written down to their recoverable amount.

4 Financial Assets and Liabilities

The Company recognizes all Financial Assets and Liabilities at Fair Value at inception and subsequent measurement is

done at amortized cost. Fair Value adjustment is done only where material.

5 Inventories

a. Inventories are valued at lower of cost and net realizable value. The cost of raw material excluding goods in transit,
components and stores are assigned by using the weighted average cost formula. Goods in transit are valued at cost
to date. In the case of finished goods, stock-in-trade and work-in-progress, cost includes costs of purchase, costs of
conversion and other costs incurred in bringing the inventories to their present location and condition.

b. Saleable / Disposable scrap is valued at net realizable value.

c. Stores, Tools and Spares/Components are valued at cost.

6 Foreign Currency Transactions:

a. Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of
the transaction.

b. Assets and Liabilities are re-instated at the year-end at the rate prevalent at each annual Balance Sheet date. The
Income / Expenditure on account of this are charged to Statement of Profit and Loss.

c. Any Incomes or Expenses on account of exchange difference either on settlement or on translation is recognized in
the Statement of Profit and Loss.

7 Revenue Recognition

a. Sales:

Sale is recognized on dispatch of goods to customers upon inspection and clearance by the clients. Export sales on
FOB basis are recognized upon despatch and that of CIF basis upon acceptance of goods by the clients.

b. Other Income and Expenses:

On accrual basis.

8 Employee Benefits:

i) Short-term employee benefits:

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered
by employees is recognized during the period when the employee renders the service.

ii) Post -Employment benefit Plans:

a) Upto the year 2008-09 the Company has set up separate Trust for Provident Fund and has been contributing
towards the same. Contribution towards pension fund is made to PF authorities on monthly basis. From
01.04.2009 onwards based on the order of the Provident Fund Commissioner-I, withdrawing the relaxation
under Para 79 of the Employees'' Provident Fund Scheme 1952, the Provident Fund contributions are remitted
to the PF authorities.

b) Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

c) For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit
Method, with actuarial valuations being carried out at each annual balance sheet date. All re-measurement
items occurring during the year are recognized in the Other Comprehensive Income (OCI). Re-measurements
arising from defined benefit plans comprise actuarial gains and losses on benefit obligations and the return on
plan assets in excess of what has been estimated. The company recognises these items of re-measurements
immediately in other comprehensive income and all the other expenses related to defined benefit plans in
employee benefit expenses in profit and loss account.

d) The retirement benefit obligation recognized in the annual balance sheet represents the present value of
the defined obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of
scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value

of available refunds and reductions in future contributions to the scheme. For the employees who had already
left like VSS optees etc., the gratuity and leave encashment is provided on actual basis.

9 Provision for Warranty Period Expenses

Provision is made for warranty period expenses at a percentage on net turnover of the year, arrived at based on actual
warranty period expenses incurred compared with the average net turnover of the previous three financial years.

10 Liquidated Damages

Provision for liquidated damages is recognised for the period of delay between the due date of supply of the goods as
per delivery schedule and its expected date of delivery of the said goods. In respect of repair/replacement, provision for
liquidated damages is recognised at the time of revenue recognition.

11 Borrowing Costs

Borrowing costs which are not attributable to be acquisition and construction of the qualifying asset are being recognized
as an expense in the period in which they are incurred.

12 Accounting for Leases

The lease agreement entered with the lessors are for monthly rental hiring basis of office accommodation for a period of
eleven months and with subsequent renewal clause on mutual agreement. The lease agreement also can be cancelled by
either party on giving notice at any time with in a prescribed time limit. The lease does not transfer all the risks and rewards
incidental to ownership. There is no provision to acquire title to the asset upon fulfilment of the agreed conditions. The
monthly lease rents are being recognized as an expense in the period in which they are incurred.

13 Taxes on Income

a) Taxation comprises of current tax and deferred tax charge or credit.

b) Current tax is the amount of tax payable on the taxable Income for the year as determined in accordance with the
applicable tax rates and provisions of Income Tax Act,1961.

c) The deferred tax on timing differences between book profit and taxable profit for the year is accounted for applying
the tax rates and laws that have been enacted or substantively enacted as on the annual balance sheet date.
Deferred tax assets arising from timing difference in excess of deferred tax liability are recognized to the extent there
is a reasonable certainty that such assets can be realized in future.

14 Claims by the Company

Claims on purchasers/suppliers towards differential in awarded rate during the scheduled delivery period are accounted
when claims are preferred and carried forward till such time the company has a legal right to recover such amounts. Such
claims are reviewed at annual balance sheet date.

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Mar 31, 2024

CORPORATE INFORMATION AND STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

1 Corporate Information

Tamilnadu Telecommunications Limited is a Company in India incorporated on 13th May 1988, under the provisions of Companies Act, 1956, with Registrar of Companies, Tamil Nadu Vide CIN L32201TN1988PLC015705, having its registered office at No.16, First Floor, Aziz Mulk 3rd street, Thousand Lights, Chennai, Tamil Nadu, India, 600006. The company is engaged in the business of manufacturing of Optical Fiber Cables for Telecommunications.

II Significant Accounting Policies

a. Basis of Preparation of Financial Statements

Accounts are drawn up on the principle of going concern concept with revenues recognized and expenses accounted on accrual basis and are prepared to comply in all material aspects with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of Companies Act 2013 read with relevant rules of the Companies (Indian Accounting Standards) Rules with effect from 1st April 2016. Figures are rounded off to nearest rupees in hundreds. Refer Note 31 to the financial statements.

b. Use of estimates:

Preparation of financial statements in conformity with the recognition and the measurement principle of Ind AS requires the management of the company to make estimates and assumptions that affects the reported balances of assets and liabilities, disclosure relating to contingent liabilities as on the date of the Financial Statements and the reported amount of incomes and expenses for the reporting period.

Estimates and the underlying assumption are reviewed on ongoing basis. The revision to the accounting estimates if material is recognized in the period in which the estimates are revised.

2 Property, Plant and Equipment:

a. Property, Plant and Equipment are stated at cost net of accumulated depreciation and accumulated impairment losses, if any.

b. The costs directly attributable including borrowing cost on qualifying asset are capitalized when the Property, Plant and Equipment are ready for use, as intended by the management.

c. Subsequent expenditure relating to Property, Plant and Equipment including major inspection costs, spare parts, standby and servicing equipment are capitalized only when it is probable that future economic benefits associated with these will flow to the Company, the cost of the item can be measured reliably and the company expects to use them during more than period.

d. Depreciation is calculated on straight line basis over estimated useful life as prescribed in Schedule II of the Companies Act 2013, up-to the cost of the asset (net of residual value - which is considered at 5 % of cost of assets).

e. Plant and Equipment costing individually Rs. 5,000 and below are fully depreciated in the year of purchase.

f. Where the cost of an item of Property, Plant and Equipment are significant and have different useful lives, they are treated as separate components and depreciated over their estimated useful lives.

g. Depreciation on Property, Plant and Equipment, added or deleted during the reporting period is provided from or till the date of such addition or deletion.

h. The estimated useful lives, residual values and depreciation / amortization method are reviewed at the end of each reporting period with the effect of changes in estimates accounted for on a prospective basis.

i. The cost of assets not put to use, before the year end are disclosed under Capital Work-in-Progress.

3 Impairment of Assets

As at the end of each Balance Sheet date, the carrying amount of assets is assessed as to whether there is any indication of impairment. If the estimated recoverable amount is found less than its carrying amount, the impairment loss is recognized and assets are written down to their recoverable amount.

4 Financial Assets and Liabilities

The Company recognizes all Financial Assets and Liabilities at Fair Value at inception and subsequent measurement is

done at amortized cost. Fair Value adjustment is done only where material.

5 Inventories

a. Inventories are valued at lower of cost and net realizable value. The cost of raw material excluding goods in transit, components and stores are assigned by using the weighted average cost formula. Goods in transit are valued at cost to date. In the case of finished goods, stock-in-trade and work-in-progress, cost includes costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

b. Saleable / Disposable scrap is valued at net realizable value.

c. Stores, Tools and Spares/Components are valued at cost.

6 Foreign Currency Transactions:

a. Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of the transaction.

b. Assets and Liabilities are re-instated at the year-end at the rate prevalent at each annual Balance Sheet date. The Income / Expenditure on account of this are charged to Statement of Profit and Loss.

c. Any Incomes or Expenses on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

7 Revenue Recognition

a. Sales:

Sale is recognized on dispatch of goods to customers upon inspection and clearance by the clients. Export sales on FOB basis are recognized upon despatch and that of CIF basis upon acceptance of goods by the clients.

b. Other Income and Expenses:

On accrual basis.

8 Employee Benefits:

i) Short-term employee benefits:

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee renders the service.

ii) Post -Employment benefit Plans:

a) Upto the year 2008-09 the Company has set up separate Trust for Provident Fund and has been contributing towards the same. Contribution towards pension fund is made to PF authorities on monthly basis. From 01.04.2009 onwards based on the order of the Provident Fund Commissioner-I, withdrawing the relaxation under Para 79 of the Employees'' Provident Fund Scheme 1952, the Provident Fund contributions are remitted to the PF authorities.

b) Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

c) For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each annual balance sheet date. All re-measurement items occurring during the year are recognized in the Other Comprehensive Income (OCI). Re-measurements arising from defined benefit plans comprise actuarial gains and losses on benefit obligations and the return on plan assets in excess of what has been estimated. The company recognises these items of re-measurements immediately in other comprehensive income and all the other expenses related to defined benefit plans in employee benefit expenses in profit and loss account.

d) The retirement benefit obligation recognized in the annual balance sheet represents the present value of the defined obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value

of available refunds and reductions in future contributions to the scheme. For the employees who had already left like VSS optees etc., the gratuity and leave encashment is provided on actual basis.

9 Provision for Warranty Period Expenses

Provision is made for warranty period expenses at a percentage on net turnover of the year, arrived at based on actual warranty period expenses incurred compared with the average net turnover of the previous three financial years.

10 Liquidated Damages

Provision for liquidated damages is recognised for the period of delay between the due date of supply of the goods as per delivery schedule and its expected date of delivery of the said goods. In respect of repair/replacement, provision for liquidated damages is recognised at the time of revenue recognition.

11 Borrowing Costs

Borrowing costs which are not attributable to be acquisition and construction of the qualifying asset are being recognized as an expense in the period in which they are incurred.

12 Accounting for Leases

The lease agreement entered with the lessors are for monthly rental hiring basis of office accommodation for a period of eleven months and with subsequent renewal clause on mutual agreement. The lease agreement also can be cancelled by either party on giving notice at any time with in a prescribed time limit. The lease does not transfer all the risks and rewards incidental to ownership. There is no provision to acquire title to the asset upon fulfilment of the agreed conditions. The monthly lease rents are being recognized as an expense in the period in which they are incurred.

13 Taxes on Income

a) Taxation comprises of current tax and deferred tax charge or credit

b) Current tax is the amount of tax payable on the taxable Income for the year as determined in accordance with the applicable tax rates and provisions of Income Tax Act,1961.

c) The deferred tax on timing differences between book profit and taxable profit for the year is accounted for applying the tax rates and laws that have been enacted or substantively enacted as on the annual balance sheet date. Deferred tax assets arising from timing difference in excess of deferred tax liability are recognized to the extent there is a reasonable certainty that such assets can be realized in future.

14 Claims by the Company

Claims on purchasers/suppliers towards differential in awarded rate during the scheduled delivery period are accounted when claims are preferred and carried forward till such time the company has a legal right to recover such amounts. Such claims are reviewed at annual balance sheet date.

15 Provisions and Contingent Liabilities

A provision is recognised, when the Company has the present obligation as result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which reliable estimate can be made.

Where no reliable estimate can be made or when there is a possible obligation or present obligations that may, but probably will not, require an outflow of resources, disclosure is made as contingent liability.

When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

16 Onerous Contract

The excess of unavoidable costs of meeting the obligations on onerous contracts over economic benefits expected to be received is charged to the Statement of Profit and Loss in the year in which the contract become onerous and is recognized and measured as loss.

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Mar 31, 2015

1. Basis of Preparation of Financial Statements

Accounts are drawn up on the principle of going concern concept with revenues recognized and expenses accounted on accrual basis and in accordance with the generally accepted accounting principles and standards and in accordance with the provisions of Companies Act, 2013 (to the extent notified) and the provisions of Companies Act, 1956 (to the extent applicable).

2. Fixed Assets and Depreciation

a. Fixed Assets are stated at historical cost ( net of CENVAT ) including applicable taxes, duties, adjustments arising from exchange rate variations and other identifiable direct expenses and interest upto the date of installation. The cost of assets not put to use, before the year end are disclosed under Capital Work-in- progress.

b. Depreciation on Fixed Assets is provided in accordance with the useful lives as specified in Schedule II of the Companies Act, 2013, on straight line method, up to the cost of the asset (net of residual value). Residual Value is considered at 5% of cost of assets.

c. Depreciation on fixed assets added or deleted during the year is provided from or till the date of such addition or deletion.

3. Foreign Currency Transactions

a. Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of the transaction.

b. Monetary items denominated in foreign currencies at the year end are translated at the year end rates.

c. Any Income or Expenses on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit & Loss.

d. The gain or loss on account of Foreign exchange rate fluctuation includes such gain / loss passed on by TCIL on imports procured by it on behalf of TTL as per extant MOUs.

4. Valuation of Inventory

a. Raw materials : at weighted average cost

b. Work-in-progress : at cost up to the stage of completion or realizable value whichever is lower

c. Finished Goods : at cost or net realizable value whichever is lower

d. Scrap : at net realizable value

e. Stores, Tools & Spares : at cost

5. Revenue Recognition

a. Sales: Sale is recognized on despatch of goods to customers upon inspection and clearance by the clients. Export sales on FOB basis are recognized upon despatch and that of CIF basis upon acceptance of goods by clients. Sales shown in the Statement of Profit and Loss exclude Excise Duty and Sales Tax.

b. Other Income and Expenses: On Accrual Basis.

6. Excise Duty : Excise Duty payment is accounted on the basis of payment made in respect of goods cleared and necessary provision is made for the excise duty on finished goods, if any at the factory at the year end.

7. Deferred Revenue Expenditure

a. As per the policy of the company, the preliminary and share issue expenses are being amortized over a period of ten years.

b. Expenses incurred towards Employees' Voluntary Separation Scheme (VSS) are being amortized over a period of five years.

8. Employees' Retirement Benefits:

i) Short-term employee benefits:The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee renders the service.

ii) Post –Employment benefit Plans:Upto the year 2008-09 the Company has set up separate Trust for Provident Fund and has been contributing towards the same. Contribution towards pension fund is made to PF authorities on monthly basis. From 01.04.2009 onwards based on the order of the Provident Fund Commissioner-I, withdrawing the relaxation under Para 79 of the Employees' Provident Fund Scheme 1952, the Provident Fund contributions are remitted to the PF authorities.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in full in the Profit and Loss account for the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested, and otherwise is amortized on straight-line basis over the average period until the benefits become vested.

The retirement benefit obligation recognized in the balance sheet represents the present value of the defined obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the scheme. For the employees who had already left like VSS optees etc., the gratuity and leave encashment is provided on actual basis.

9. Provision for Warranty Period Expenses

Provision is made for warranty period expenses at a percentage on net turnover of the year, arrived at based on actual warranty period expenses incurred compared with the average net turnover of the previous three financial years.

10. Taxes on Income

a) Taxation comprises of Current Ta x and Deferred Ta x charge or credit

b) Provision for Current Taxes is as per the provisions of Ta x Laws prevailing in India

c) Deferred Tax charge or credit for the deferred tax assets / liabilities are accounted considering reasonable / virtual certainty of the company making taxable income in the near future.

11. Contingent Liabilities

Contingent Liabilities are disclosed after a careful evaluation of the facts and legal aspects of the matter involved.

12. Borrowing Costs

Borrowing costs ( which are not attributable to be acquisition and construction of the qualifying asset) are being recognized as an expense in the period in which they are incurred.

13. Accounting for Leases

The lease agreement entered with the lessors are for monthly rental hiring basis of Office accommodation for a period of 11 months and with subsequent renewal clause on mutual agreement. The lease agreement also can be cancelled by either party on giving notice at any time with in a prescribed time limit. The lease does not transfer all the risks and rewards incidental to ownership. There is no provision to acquire title to the asset upon fulfillment of the agreed conditions. The monthly lease rents are being recognized as an expense in the period in which they are incurred.

14. Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

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Mar 31, 2014

1. Basis of Preparation of Financial Statements

Accounts are drawn up on the principle of going concern concept with revenues recognized and expenses accounted on accrual basis and in accordance with the generally accepted accounting principles and standards and in accordance with the provisions of Companies Act, 1956.

2. Fixed Assets and Depreciation

a. Fixed Assets are stated at historical cost ( net of CENVAT ) including applicable taxes, duties, adjustments arising from exchange rate variations and other identifiable direct expenses and interest upto the date of installation. The cost of assets not put to use, before the year end are disclosed under Capital Work-in-progress.

b. Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

c. Depreciation on fixed assets added or deleted during the year is provided from or till the date of such addition or deletion.

3. Foreign Currency Transactions

a. Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of the transaction.

b. Monetary items denominated in foreign currencies at the year end are translated at the year end rates.

c. Any Income or Expenses on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account.

d. The gain or loss on account of Foreign exchange rate fluctuation includes such gain / loss passed on by TCIL on imports procured by it on behalf of TTL as per extant MOUs.

4. Valuation of Inventory

a. Raw materials : at weighted average cost

b. Work-in-progress : at cost up to the stage of completion or realizable value whichever is lower.

c. Finished Goods : at cost or net realizable value whichever is lower

d. Scrap : at net realizable value

e. Stores, Tools & Spares : at cost

5. Revenue Recognition

a. Sales: Sale is recognized on despatch of goods to customers upon inspection and clearance by the clients. Export sales on FOBbasis are recognized upon despatch and that of CIF basis upon acceptance of goods by clients. Sales shown in the Profit and Loss Account exclude Excise Duty and Sales Tax.

b. Other Income and Expenses: On Accrual Basis.

6. Excise Duty

Excise Duty payment is accountedon the basis of payment made in respect of goods cleared and necessary provision is made for the excise duty on finished goods, if any at the factory at the year end.

7. Deferred Revenue Expenditure

a. As per the policy of the company, the preliminary and share issue expenses are being amortized over a period often years.

b. Expenses incurred towards Employees'' Voluntary Separation Scheme (VSS) are being amortized over a period of five years.

8. Employees'' Retirement Benefits:

i) Short-term employee benefits:

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee renders the service.

ii) Post -Employment benefit Plans:

Upto the year 2008-09 the Company has set up separate Trustfor Provident Fund and has been contributing towards the same. Contribution towards pension fund is made to PF authorities on monthly basis. From 01.04.2009 onwards based on the order ofthe Provident Fund Commissioner-1, withdrawing the relaxation under Para 79 of the Employees'' Provident Fund Scheme 1952, the Provident Fund contributions are remitted to the PF authorities.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in full in the Profit and Loss account for the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested, and otherwise is amortized on straight-line basis over the average period until the benefits become vested.

The retirement benefit obligation recognized in the balance sheet represents the present value of the defined obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the presentvalue of available refunds and reductions in future contributions to the scheme. For the employees who had already left like VSS optees etc., the gratuity and leave encashment is provided on actual basis.

9. Provision for Warranty Period Expenses:

Provision is made for warranty period expenses at a percentage on net turnover of the year, arrived at based on actual warranty period expenses incurred compared with the average net turnover of the previous three financial years.

10. a) Taxation comprises ofCurrent Tax and Deferred Tax charge or credit

b) Provision for Current Taxes is as per the provisions of Tax Laws prevailing in India

c) Deferred Tax charge or credit for the deferred tax assets / liabilities are accounted considering reasonable / virtual certainty of the company making taxable income in the near future.

11. Contingent Liabilities

Contingent Liabilities are disclosed after a careful evaluation of the facts and legal aspects of the matter involved.

12. Borrowing Costs

Borrowing costs are being recognized as an expense in the period in which they are incurred.

13. Accounting for Leases

The lease agreement entered with the lessors are for monthly rental hiring basis of Office accommodation for a period of 11 months and with subsequent renewal clause on mutual agreement. The lease agreement also can be cancelled by either party on giving notice at any time with in a prescribed time limit. The lease doesn''t transfer all the risks and rewards incident to ownership. There is no provision to acquire title to the asset upon fulfillment of the agreed conditions. The monthly lease rents are being recognized as an expense in the period in which they are incurred.

14. Impairment of Assets:

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

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Mar 31, 2013

1. Basis of Preparation of Financial Statements

Accounts are drawn up on the principle of going concern concept with revenues recognized and expenses accounted on accrual basis and in accordance with the generally accepted accounting principles and standards and in accordance with the provisions of Companies Act, 1956.

2. Fixed Assets and Depreciation

a. Fixed Assets are stated at historical cost ( net of CENVAT ) including applicable taxes, duties, adjustments arising from exchange rate variations and other identifiable direct expenses and interest up to the date of installation. The cost of assets not put to use, before the yearend are disclosed under Capital Work-in- . progress.

b. Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner ''prescribed under Schedule XIV of the Companies Act, 1956.

c. Depreciation on fixed assets added or deleted during the year is provided from or till the date of such addition or deletion.

4. Valuation of Inventory

a. Raw materials : at weighted average cost

b. Work-in-progress : at cost up to the stage of completion or realizable value whichever is lower.

c. Finished Goods : at cost or net realizable value whichever is lower d. Scrap : at net realizable value

e. Stores, Tools & Spares : at cost ''

5. Revenue Recognition

a. Sales: Sale is recognized on dispatch of goods to customers upon inspection and clearance by the clients. Export sales on FOB basis are recognized upon dispatch and that of CIF basis upon acceptance of goods -by clients. Sales shown in the Profit and Loss Account exclude Excise Duty and Sales Tax.

b. Other Income and Expenses: On Accrual Basis.

6. Excise Duty

Excise Duty payment is accounted on the basis of payment made in respect of goods cleared and necessary provision is made for the excise duty on finished goods, if any at the factory at the year end.

7. Deferred Revenue Expenditure

a. As per the policy of the company, the preliminary and share issue expenses are being amortized over a period of ten years.

b. Expenses incurred towards Employees'' Voluntary Separation Scheme (VSS) are being amortized over a period of five years.

8. Employees'' Retirement Benefits:

i) Short-term employee benefits: ''

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee renders the service. ,

ii) Post -Employment benefit Plans:

Up to the year 2008-09 the Company has set up separate Trust for Provident Fund and has been contributing '' towards the same. Contribution towards pension fund is made to PF authorities on monthly basis. From 01.04.2009 onwards based on the order of the Provident Fund Commissioner-I, withdrawing the relaxation under Para 79 of the Employees'' Provident Fund Scheme 1952, the Provident Fund contributions are remitted to the PF authorities.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in full in the Profit and Loss account for the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested, and otherwise is amortized on straight-line basis over the average period until the benefits become vested.

The retirement benefit obligation recognized in the balance sheet represents the present value of the defined obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the scheme. For the employees who had already left like VSS opted etc., the gratuity and leave encashment is provided on actual basis.

9. Provision for Warranty Period Expenses: ''

Provision is made for warranty period expenses at a percentage of net turnover of the year, arrived at based on actual warranty period expenses incurred compared with the average net turnover of the previous three financial years.

10. a) Taxation comprises of Current Tax and Deferred Tax charge or credit

b) Provision for Current Taxes is as per the provisions of Tax Laws prevailing in India

c) Deferred Tax charge or credit for the deferred tax assets / liabilities are accounted considering reasonable / virtual certainty of the company making taxable income in the near future.

11. Contingent Liabilities . Contingent Liabilities are disclosed after a careful evaluation of the facts and legal aspects of the matter involved.

12. Borrowing Costs

Borrowing costs are being recognized as an expense in the period in which they are incurred.''

13. Accounting for Leases

The lease agreement entered with the lassoers are for monthly rental hiring basis of Office accommodation for a period of 11 months and with subsequent renewal clause on mutual agreement. The lease agreement also can be cancelled by either party on giving notice at any time with in a prescribed time limit. The lease doesn''t transfer all the risks and rewards incident to ownership. There is no provision to acquire title to the asset upon fulfillment of the agreed conditions. The monthly lease rents are being recognized as anexpen.se in the period in which they are incurred. , ''

14. Impairment of Assets:

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

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Mar 31, 2012

1. Basis of Preparation of Financial Statements .

Accounts are drawn up on the principle of going concern concept with revenues recognized and expenses accounted on accrual basis and in accordance with the generally accepted accounting principles and standards and in accordance with the provisions of Companies Act, 1956.

2. Fixed Assets and Depreciation

a. Fixed Assets are stated at historical cost { net of CENVAT ) including applicable taxes, duties, adjustments arising from exchange rate variations and other identifiable direct expenses and interest upto the date of installation. The cost of assets not put to use, before the year end'are disclosed under Capital Work-in- progress.

b. Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner prescribed under Schedule XIV of the Companites Act, 1956.

c. Depreciation on fixed assets added or deleted during the year is provided from or till the date of such addition or deletion.

3. Foreign Currency Transactions

a. Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of the transaction.

b. Monetary items denominated in foreign currencies at the year end are translated at the year end rates.

c. Any Income or Expenses on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account.

d. The gain or loss on account of Foreign exchange rate fluctuation includes such gain / loss passed on by TCIL on imports procured by it on behalf of TTL as per extant MOUs. ’

4. Valuation of Inventory

a. Raw- materials : at weighted average cost

b. Work-in-progress : at cost up to the stage of completion or realizable value whichever is

lower.

c. Finished Goods : at cost or net realizable value whichever is lower

d. Scrap : at net realizable value '

e. Stores, Tools & Spares : at cost .

5. Revenue Recognition

a. Sales: Sale is recogni2ed on despatch of goods to customers upon inspection and clearance by the clients.

, Export sales on FOB basis are recognized upon despatch and that of CIF basis upon acceptance of goods

by clients. Sales shown in the Profit and Loss Account exclude Excise Duty and Sales Tax.

b. Other Income and Expenses: On Accrual Basis.

6. Excise Duty .

Excise Duty payment is accounted on the basis of payment made in respect of goods cleared and necessary provision is made for the excise duty on finished goods, if any at the factory at the year end.

7. Deferred Revenue Expenditure

a. As per the policy of the company, the preliminary and share issue expenses are being amortized over a period of ten years.

b. Expenses incurred towards Employees’ Voluntary Separation Scheme (VSS) are being amortized over a period of five years.

8. Employees’ Retirement Benefits:

i) Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee renders the service.

ii) Post -Employment benefit Plans: Upto the year 2008-09 the Company has set up separate Trust for Provident Fund and has been contributing towards the same. Contribution towards pension fund is made to PF authorities on monthly basis. From 01.04.2009 onwards based on the order of the Provident Fund Commissioner-I, withdrawing the relaxation under Para 79 of the Employees’ Provident Fund Scheme 1952, the Provident Fund contributions are remitted to the PF authorities.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in full in the Profit and Loss account for the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested, and otherwise is amortized on straight-line basis over the average period until the benefits become vested.

The retirement benefit obligation recognized in the balance sheet represents the present value of the defined obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the scheme. For the employees who had already left like VSS optees etc., the gratuity and leave encashment is provided on actual basis.

9. Provision for Warranty Period Expenses:

Provision is made for warranty period expenses at a percentage on net turnover of the year, arrived at based on actual warranty period expenses incurred compared with the average net turnover of the previous three financial years.

10. a) Taxation comprises of Current Tax and Deferred Tax charge or credit

b) Provision for Current Taxes is as per the provisions of Tax Laws prevailing in India

c) Deferred Tax charge or credit for the deferred tax assets / liabilities are accounted considering reasonable / virtual certainty of the company making taxable income in the near future.

11. Contingent Liabilities

Contingent Liabilities are disclosed after a careful evaluation of the facts and legal aspects of the matter involved.

12. Borrowing Costs

Borrowing costs are being recognized as an expense in the period in which they are incurred.

13. Accounting for Leases

The lease agreement entered with the lessors are for monthly rental hiring basis of Office accommodation for a period of 11 months and with! Subsequent renewal clause on mutual agreement. The lease agreement also can be cancelled by either" party on giving notice at any time with in a prescribed time limit. The lease doesn’t transfer all the risks and rewards incident to ownership. There is no provision to acquire title to the asset upon fulfillment of the agreed conditions. The monthly lease rents are being recognized as an expense in the period in which they are incUfried.

14. Impairment of Assets:

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

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Mar 31, 2011

1. Basis of Preparation of Financial Statements

Accounts are drawn up on the principle of going concern concept with revenues recognized and expenses accounted on accrual basis and in accordance with the generally accepted accounting principles and standards and in accordance with the provisions of Companies Act, 1956.

2. Fixed Assets and Depreciation

a. Fixed Assets are stated at historical cost ( net of CENVAT ) including applicable taxes, duties, adjustments arising from exchange rate variations and other identifiable direct expenses and interest upto the date of installation. The cost of assets not put to use, before the year end are disclosed under Capital Work-in- progress.

b. Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

c. Depreciation on fixed assets added or deleted during the year is provided from or till the date of such addition or deletion.

3. Foreign Currency Transactions

a. Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of the transaction.

b. Monetary items denominated in foreign currencies at the year end are translated at the year end rates.

c. Any Income or Expenses on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account.

d. The gain or loss on account of Foreign exchange rate fluctuation includes such gain / loss passed on by TCIL on imports procured by it on behalf of TTL as per extant MOUs.

4. Valuation of Inventory

a. Raw materials : at weighted average cost

b. Work-in-progress : at cost up to the stage of completion or realizable value whichever is lower.

c. Finished Goods : at cost or net realizable value whichever is lower

d. Scrap : at net realizable value

e. Stores, Tools & Spares : at cost

5. Revenue Recognition

a. Sales: Sale is recognized on despatch of goods to customers upon inspection and clearance by the clients. Export sales on FOB basis are recognized upon despatch and that of CIF basis upon acceptance of goods by clients. Sales shown in the Profit and Loss Account exclude Excise Duty and Sales Tax.

b. Other Income and Expenses: On Accrual Basis.

6. Excise Duty

Excise Duty payment is accounted on the basis of payment made in respect of goods cleared and necessary provision is made for the excise duty on finished goods, if any at the factory at the year end.

7. Deferred Revenue Expenditure

a. As per the policy of the company, the preliminary and share issue expenses are being amortized over a period of ten years.

b. Expenses incurred towards Employees' Voluntary Separation Scheme (VSS) are being amortized over a period of five years.

8. Employees' Retirement Benefits:

i) Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee renders the service.

ii) Post -Employment benefit Plans

Into the year 2008-09 the Company has set up separate Trust for Provident Fund and has been contributing towards the same. Contribution towards pension fund is made to PF authorities on monthly basis. From 01.04.2009 onwards cased on the order of the Provident Fund Commissioner-I, withdrawing the relaxation under Para 79 of the Employees' Provident Fund Scheme 1952, the Provident Fund contributions are remitted to the PF authorities.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in full in the Profit and Loss account for the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested, and otherwise is amortized on straight-line basis over the average period until the benefits become vested

The retirement benefit obligation recognized in the balance sheet represents the present value of the defined obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the scheme. For the employees who had already left like VSS optees etc., the gratuity and leave encashment is provided on actual basis.

---

Mar 31, 2010

1. Basis of Preparation of Financial Statements

Accounts are drawn up on the principle of going concern concept with revenues recognized and expenses accounted on accrual basis and in accordance with the generally accepted accounting principles and standards and in accordance with the provisions of Companies Act, 1956.

2. Fixed Assets and Depreciation

a. Fixed Assets are stated at historical cost ( net of CENVAT ) including applicable taxes, duties, adjustments arising from exchange rate variations and other identifiable direct expenses and interest upto the date of installation. The cost of assets not put to use, before the year end are disclosed under Capital Work-in-progress.

b. Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

c. Depreciation on fixed assets added or deleted during the year is provided from or till the date of such addition or deletion.

3. Foreign Currency Transactions

a. Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of the transaction.

b. Monetary items denominated in foreign currencies at the year end are translated at the year end rates.

c. Any Income or Expenses on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account.

d. The gain or loss on account of Foreign exchange rate fluctuation includes such gain / loss passed on by TCIL on imports procured by it on behalf of TTL as per extant MOUs.

4. Valuation of Inventory

a. Raw materials : at weighted average cost

b. Work-in-progress : at cost up to the stage of completion or

realizable value whichever is

lower.

c. Finished Goods : at cost or net realizable value whichever

is lower

d. Scrap : at net realizable value

e. Stores, Tools &

Spares : at cost

5. Revenue Recognition

a. Sales: Sale is recognized on despatch of goods to customers upon inspection and clearance by the clients. Export sales on FOB basis are recognized upon despatch and that of CIF basis upon acceptance of goods by clients. Sales shown in the Profit and Loss Account exclude Excise Duty and Sales Tax.

b. Other Income and Expenses: On Accrual Basis.

6. Excise Duty

Excise Duty payment is accounted on the basis of payment made in respect of goods cleared and necessary provision is made for the excise duty on finished goods, if any at the factory at the year end.

7. Deferred Revenue Expenditure

a. As per the policy of the company, the preliminary and share issue expenses are being amortized over a period of ten years.

b. Expenses incurred towards Employees’ Voluntary Separation Scheme (VSS) are being amortized over a period of five years.

8. Employees Retirement Benefits:

i) Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized during the period when the employee renders the service.

ii) Post –Employment benefit Plans

Upto the year 2008-09 the Company has set up separate Trust for Provident Fund and has been contributing towards the same. Contribution towards pension fund is made to PF authorities on monthly basis. From 01.04.2009 onwards based on the order of the Provident Fund Commissioner-I, withdrawing the relaxation under Para 79 of the Employees’ Provident Fund Scheme 1952, the Provident Fund contributions are remitted to the PF authorities.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in full in the Profit and Loss account for the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested, and otherwise is amortized on straight-line basis over the average period until the benefits become vested.

The retirement benefit obligation recognized in the balance sheet represents the present value of the defined obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the scheme. For the employees who had already left like VSS optees etc., the gratuity and leave encashment is provided on actual basis.