Accounting Policies of Tirupati Innovar Ltd. Company

Mar 31, 2025

1.0 Corporate Information

Tirupati Tyres Limited is a Public Limited Company, incorporated under the provisions of Companies Act, 1956
and having CIN L25111MH1988PLC285197. The Company is primarily engaged in the business of manufacturing
and trading in tyres and allied products thereof. The Registered office of the Company is situated at Unit No. 606,
Reliables Pride, Anand Nagar, opp. Heera Panna, Jogeshwari (W), Mumbai, Maharashtra, 400102.

The Equity Shares of the Company are presently listed on BSE Limited ("BSE") and the Metropolitan Stock
Exchange of India Limited ("MSEI").

These financial statements were authorized for issue in accordance with a resolution of the directors on 27^th May,
2025.

1.1 Basis of preparation of financial statements

a. Accounting Convention: -

These financial statements of the Company have been prepared in accordance with Generally Accepted Accounting
Principles in India ("Indian GAAP"). Indian GAAP comprises mandatory accounting standards as prescribed
under Section 133 of the Companies Act, 2013 ("the Act") read with the Rule 7 of the Companies (Accounts) Rules,
2014. The financial statements have been prepared on an accrual basis and under the Historical Cost Convention
and the Companies (Accounting Standards) Amendment Rules 2016 and the relevant provisions of the Companies
Act, 2013.

b. Functional and Presentation Currency:-

The functional and presentation currency of the company is Indian rupees. This financial statement is presented in
Indian rupees. All amounts disclosed in the financial statements and notes are rounded off to lakhs the nearest INR
rupee in compliance with Schedule III of the Act, unless otherwise stated. Due to rounding off, the numbers
presented throughout the document may not add up precisely to the totals and percentages may not precisely
reflect the absolute figures.

c. Use of Estimates and Judgments

The preparation of financial statement in conformity with accounting standard requires the Management to make
estimates, judgments, and assumptions. These estimates, judgments and assumptions affects the application of
accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of financial statement and reported amounts of revenue and expenses during the period.
Accounting estimates could change form period to period. Actual result could differ from those estimates. As soon
as the Management is aware of the changes, appropriate changes in estimates are made. The effects of such changes
are reflected in the period in which such changes are made and, if material, their effects are disclosed in the notes
to financial statement. Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions
to accounting estimates are recognised in the period in which the estimate is revised and in future periods affected.

d. Current and Non - Current Classification

An asset or a liability is classified as Current when it satisfies any of the following criteria:

i. It is expected to be realized / settled, or is intended for sales or consumptions, in the Company''s
Normal Operating Cycle;

ii. It is held primarily for the purpose of being traded.

iii. It is expected to be realized / due to be settled within twelve months after the end of reporting date;

iv. The Company does not have an unconditional right to defer the settlement of the liability for at least
twelve months after the reporting date. All other assets and liabilities are classified as Non - Current.
For the purpose of Current / Non - Current classification of assets and liabilities, the Company has
ascertained its operating cycle as twelve months. This is based on the nature of services and the time
between the acquisition of the assets or liabilities for processing and their realization in Cash and Cash
Equivalents.

1.2 Basis of Preparation

a) Property, Plant & Equipment and Intangible Assets:-

There are no property, plant or Equipment and Intangible Assets in the company for the financial year 2023-24.

b) Depreciation / Amortization: -

The Company is not having any property, plant or Equipment and Intangible Assets for the financial year 2023-24,
therefore this clause is not applicable to the Company.

c) Impairment of Assets:-

An asset is treated as impaired when the carrying cost of an 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 recognised in prior period is reversed if there has been a change in the estimate of the recoverable amount.

d) Investments:-

There are no current and non-current investments in the company for the financial year 2024-25.

e) Government Grants and Subsidies:-

The Company is entitled to receive any subsidy from the Government authorities or any other authorities in respect
of manufacturing or other facilities are dealt as follows:

• Grants in the nature of subsidies which are non - refundable are credited to the respective accounts to which the

grants relate, on accrual basis, where there is reasonable assurance that the Company will comply with all the
necessary conditions attached to them.

• Grants in the nature of Subsidy which are Refundable are shown as Liabilities in the Balance Sheet at the Reporting

date.

f) Employee Benefits:

The accounting of Employee benefits, having nature of defined benefit is based on assumptions. Contribution to
defined benefits is recognized as expense when employees have rendered services entitling them to avail such
benefits.

g) Inventory:-

There are no Inventory in the company for the financial year 2024-25.

h) Revenue Recognition:-

Revenue is recognized when it is probable that economic benefit associated with the transaction flows to the
Company in ordinary course of its activities and the amount of revenue can be measured reliably, regardless of
when the payment is being made. Revenue is measured at the fair value of consideration received or receivable,
taking into the account contractually defined terms of payments, net of its returns, trade discounts and volume
rebates allowed.

Revenue includes only the gross inflows of economic benefits, including the excise duty, received and receivable
by the Company, on its own account. Amount collected on behalf of third parties such as sales tax, value added tax
and goods and service tax (GST) are excluded from the Revenue.

Sale of goods is recognized at the point of dispatch of goods to customers, sales are exclusive of Sales tax, Vat, GST
and Freight Charges if any. The revenue and expenditure are accounted on a going concern basis.

Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the rate
applicable i.e. on the basis of matching concept.

Other items of Income are accounted as and when the right to receive arises.

i) Taxes on Income:-

1. Current Tax:-

Provision for current tax is made after taken into consideration benefits admissible under the provisions of the
Income Tax Act, 1961.

2. Deferred Taxes:-

Deferred Income Tax is provided using the liability method on all temporary difference at the balance sheet date
between the tax basis of assets and liabilities and their carrying amount for financial reporting purposes.

I. Deferred Tax Assets are recognized for all deductible temporary differences to the extent that it is
probable that taxable profit will be available in the future against which this items can be utilized.

II. II. Deferred Tax Assets and liabilities are measured at the tax rates that are expected to apply to the
period when the assets is realized or the liability is settled, based on tax rates ( and the tax) that have
been enacted or enacted subsequent to the balance sheet date.

Discontinuing Operations:- During the year the company has not discontinued any of its operations.

j) Trade Receivable:

Trade receivables are recognized at fair value, the outstanding balances of sundry debtors, advances etc. are verified
by the management periodically and on the basis of such verification management determines whether the said
outstanding balance are good, bad or doubtful and accordingly same are written off or provided for.

Receivables that are expected in one year or less, are classified as current assets, if not they are presented as non¬
current assets.

k) Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of
transactions of a non-cash nature any deferrals or accruals of past or future operating cash receipts or payments
and item of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated. For the purpose of presentation in the Statement
of Cash Flows, cash and cash equivalents includes cash in hand and Balances with Banks.

l) Cash and cash equivalents:

Cash and cash equivalents in the balance sheet 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 are
unrestricted for withdrawal and usage.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits,
as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash
management.

m) Earnings per Share:

Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by average
number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity shareholders is adjusted for after income tax effect of
interest and other financing costs associated with dilutive potential equity shares and the number of shares that are
outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2024

NOTE: 1 SIGNIFICANT ACCOUNTING POLICIES:

1.0 Corporate Information

Tirupati Tyres Limited is a Public Limited Company, incorporated under the provisions of Companies Act, 1956 and having CIN L25111MH1988PLC285197. The Company is primarily engaged in the business of manufacturing and trading in tyres and allied products thereof. The Registered office of the Company is situated at Unit No. 606, Reliables Pride, Anand Nagar, opp. Heera Panna, Jogeshwari (W), Mumbai, Maharashtra, 400102.

The Equity Shares of the Company are presently listed on BSE Limited ("BSE") and the Metropolitan Stock Exchange of India Limited ("MSEI").

These financial statements were authorized for issue in accordance with a resolution of the directors on 27^th May, 2024.

1.1 Basis of preparation of financial statements

a. Accounting Convention: -

These financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India ("Indian GAAP"). Indian GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with the Rule 7 of the Companies (Accounts) Rules, 2014. The financial statements have been prepared on an accrual basis and under the Historical Cost Convention and the Companies (Accounting Standards) Amendment Rules 2016 and the relevant provisions of the Companies Act, 2013.

b. Functional and Presentation Currency:-

The functional and presentation currency of the company is Indian rupees. This financial statement is presented in Indian rupees. All amounts disclosed in the financial statements and notes are rounded off to lakhs the nearest INR rupee in compliance with Schedule III of the Act, unless otherwise stated. Due to rounding off, the numbers presented throughout the document may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.

c. Use of Estimates and Judgments

The preparation of financial statement in conformity with accounting standard requires the Management to make estimates, judgments, and assumptions. These estimates, judgments and assumptions affects the application of accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of financial statement and reported amounts of revenue and expenses during the period. Accounting estimates could change form period to period. Actual result could differ from those estimates. As soon as the Management is aware of the changes, appropriate changes in estimates are made. The effects of such changes are reflected in the period in which such changes are made and, if material, their effects are disclosed in the notes to financial statement. Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods affected.

d. Current and Non - Current Classification

An asset or a liability is classified as Current when it satisfies any of the following criteria:

i. It is expected to be realized / settled, or is intended for sales or consumptions, in the Company''s Normal Operating Cycle;

ii. It is held primarily for the purpose of being traded.

iii. It is expected to be realized / due to be settled within twelve months after the end of reporting date;

iv. The Company does not have an unconditional right to defer the settlement of the liability for at least twelve months after the reporting date. All other assets and liabilities are classified as Non - Current. For the purpose of Current / Non - Current classification of assets and liabilities, the Company has ascertained its operating cycle as twelve months. This is based on the nature of services and the time between the acquisition of the assets or liabilities for processing and their realization in Cash and Cash Equivalents.

1.2 Basis of Preparation

a) Property, Plant & Equipment and Intangible Assets:-

There are no property, plant or Equipment and Intangible Assets in the company for the financial year 2023-24.

b) Depreciation / Amortization: -

The Company is not having any property, plant or Equipment and Intangible Assets for the financial year 2023-24, therefore this clause is not applicable to the Company.

c) Impairment of Assets:-

An asset is treated as impaired when the carrying cost of an 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 recognised in prior period is reversed if there has been a change in the estimate of the recoverable amount.

d) Investments:-

There are no current and non-current investments in the company for the financial year 2023-24.

e) Government Grants and Subsidies:-

The Company is entitled to receive any subsidy from the Government authorities or any other authorities in respect of manufacturing or other facilities are dealt as follows:

• Grants in the nature of subsidies which are non - refundable are credited to the respective accounts to which the

grants relate, on accrual basis, where there is reasonable assurance that the Company will comply with all the necessary conditions attached to them.

• Grants in the nature of Subsidy which are Refundable are shown as Liabilities in the Balance Sheet at the Reporting

date.

f) Employee Benefits:

The accounting of Employee benefits, having nature of defined benefit is based on assumptions. Contribution to defined benefits is recognized as expense when employees have rendered services entitling them to avail such benefits.

g) Inventory:-

There are no Inventory in the company for the financial year 2023-24.

h) Revenue Recognition:-

Revenue is recognized when it is probable that economic benefit associated with the transaction flows to the Company in ordinary course of its activities and the amount of revenue can be measured reliably, regardless of when the payment is being made. Revenue is measured at the fair value of consideration received or receivable, taking into the account contractually defined terms of payments, net of its returns, trade discounts and volume rebates allowed.

Revenue includes only the gross inflows of economic benefits, including the excise duty, received and receivable by the Company, on its own account. Amount collected on behalf of third parties such as sales tax, value added tax and goods and service tax (GST) are excluded from the Revenue.

Sale of goods is recognized at the point of dispatch of goods to customers, sales are exclusive of Sales tax, Vat, GST and Freight Charges if any. The revenue and expenditure are accounted on a going concern basis.

Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable i.e. on the basis of matching concept.

Other items of Income are accounted as and when the right to receive arises.

i) Taxes on Income:-

1. Current Tax:-

Provision for current tax is made after taken into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

2. Deferred Taxes:-

Deferred Income Tax is provided using the liability method on all temporary difference at the balance sheet date between the tax basis of assets and liabilities and their carrying amount for financial reporting purposes.

I. Deferred Tax Assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available in the future against which this items can be utilized.

II. II. Deferred Tax Assets and liabilities are measured at the tax rates that are expected to apply to the period when the assets is realized or the liability is settled, based on tax rates ( and the tax) that have been enacted or enacted subsequent to the balance sheet date.

Discontinuing Operations:- During the year the company has not discontinued any of its operations.

j) Trade Receivable:

Trade receivables are recognized at fair value, the outstanding balances of sundry debtors, advances etc. are verified by the management periodically and on the basis of such verification management determines whether the said outstanding balance are good, bad or doubtful and accordingly same are written off or provided for.

Receivables that are expected in one year or less, are classified as current assets, if not they are presented as noncurrent assets.

k) Cash Flow Statement:

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

operating, investing and financing activities of the Company are segregated. For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash in hand and Balances with Banks.

l) Cash and cash equivalents:

Cash and cash equivalents in the balance sheet 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 are unrestricted for withdrawal and usage.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

m) Earnings per Share:

Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders is adjusted for after income tax effect of interest and other financing costs associated with dilutive potential equity shares and the number of shares that are outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

n) Provisions:

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These estimates are reviewed each reporting date and adjusted to reflect the current best estimates.

o) Borrowings:

There are no Borrowings in the company for the financial year 2023-24.

p) Trade payables:

These amounts represent liabilities for goods that have been acquired in the ordinary course of business from suppliers. Trade payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.

q) Financial Instruments and Risk Review:

The Company''s principal Financial Assets include investments, trade receivables, cash and cash equivalents, other bank balances and loan. The Company''s financial liabilities comprise of borrowings and trade payables.

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Mar 31, 2023

B) Significant Accounting Policies

a) Basis of Accounting

The financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting. The Financial Statements of the Company have been prepared to comply with the Indian Accounting standards (‘Ind AS’), including the rules notified under the relevant provisions of the Companies Act, 2013

b) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria are met before revenue is recognized:

• Sales is recognized on dispatch to the customers and recorded net of trade discounts, rebates, etc.

• Interest income is recognized on a time proportion basis taking in to account the amount outstanding and the applicable interest rate.

• Dividend income is recognized when the company’s right to receive dividend is established on the reporting date.

c) Finance Cost

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

d) Investments

Investments that are intended to be held for more than a year, from the date of acquisition are classified as long term investment are carried at cost less any provision for permanent diminution in value. Investments other than long term investments are being current investments are valued at cost or fair market value whichever is lower.

e) INVENTORIES

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any, except in case of by-products which are valued at net realizable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

f) Taxes on Income

Current Tax: Provision for Income Tax is determined in accordance with the provisions of Income TaxAct, 1961.

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Mar 31, 2015

(a) BASIS OF PRESENTATION OF FINANCIAL STATEMENTS:

The financial statements are prepared in accordance with generally accepted accounting principles in India under the historical cost convention and on accrual basis of accounting. These financial statement have been prepared to comply in all material aspects with the mandatory and applicable Accounting Standards as prescribed by the Companies (Accounting Standards) Rules, 2006, as amended and relevant provisions of the Companies Act, 2013(to the extent notified).

All assets and liabilities have been classified as current or non current as per the Company's normal operating cycle and other criteria set out in the Revised Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the company has ascertained its operating cycle as twelve months for the purpose of current non-current classification of assets and liabilities.

(b) USE OF ESTIMATES :

The presentation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which results are known/materialized.

(c) REVENUE RECOGNITION :

The company recognizes sale of products when they are invoiced to customers. Revenue in respect of other income is recognized when no significant uncertainty as to its determination or realization exists.

(d) FIXED ASSETS :

Fixed assets are stated at cost less accumulated depreciation. Cost for this purpose includes purchase price, non refundable taxes or levies and other directly attributable costs of bringing the assets to its working condition for its intended use.

(e) DEPRECIATION :

Depreciation is provided on Straight Line method at the rates specified II to the Companies Act, 2013. Depreciation is provided for on a pro-rata basis on the assets acquired, sold or disposed off during the year.

(F) TAXES ON INCOME :

(i) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

(ii) Deferred tax is provided on all timing differences which are recognized during the period.

Deferred Tax Asset is recognized only if there is a reasonable certainty on the realisability of the assets.

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Mar 31, 2014

(i) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS.

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

(ii) REVENUE RECOGNITION.

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

(iii) FIXED ASSETS AND DEPRECIATION.

Fixed Assets are value at cost less depreciation. The depreciation has been calculated at the rates provided as per Companies Act, 1956 on single shift and if the Asset is purchased during the year depreciation is provided on the days of utilisation in that year.

2. CHANGE IN SIGNIFICANT ACCOUNTING POLICIES

(i) INVENTORY

Company has converted its Investments into Stock in Trade. Company relies on its own valuations systems. Records have been verified and certified by management.

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Mar 31, 2013

A. Accounting Conventions:

The company''s financial statements have been prepared in accordance with the historical cot convention on accural basis of accounting, as applicable to going concern in accordance with generally accepted accounting principle in india, mandatory accounting standards prescribed in the companies (Accounting Standards) Rules 2006 issued by Central Government in consultation with the provisions of companies act, 1956 to the extent applicable. The financial statements are presented in Indian rupees.

All assets and liabilities have been classification as current or non current as per company''s normal operating cycle and other criteria set out in the Revised Schedule VI of Companeis Act, 1956. Based on the nature of business, the company has ascertained its operating cycle as 12 months for the purpose of current or non current classification of Assets and liabilities.

B. Revenue Recognition:

1. Sales Revenue is recognized on dispatch of goods, net of freight, insurance and VAT.

2. Interest income is recognised on time proportion basis.

C. Fixed Assets:

Fixed assets are stated at cost of acquisition and inclusive of inward freight, duties & taxes & incidential expenses related to acquisition net of capital subsidy relating to specific fixed assets.

Capital work in progress/Intangible assets under development includes cost of assets at site, advances made for acquisition of capital assets and pre operative expenditure pending allocation to fixed assets.

D. Inventory Valuation:

Inventories are valued at cost or net realizable price whichever is lower except scrap at net realisable value. The cost formula used for valuation of inventories are:-

1. In respect of raw material and stores and spares have been valued at Purchase Price, inclusive of Frieght.

2. In respect of work in process is valued at cost of raw material plus conversion cost.

3. Finished goods are valued at Selling Price less estimated margin of Profits.

E. Depreciation:

Depreciation has been provided on provided on Straight line Method in Accordance with and in the manner specified in Schedule XVI to the Companies Act, 1956.

F. Taxes on Income:

Provision for Tax is made for both current and deferred taxes. Provisions for current income tax is made on the current tax rates based on assessable income. The Company provides for deferred tax based on the tax effect of timing differences resulting from the recognition of items in the financial statements and in estimating its current tax provision.

G. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result so past event and it is probable that there will be outflow of resources. Contingent liability, which are considered significant and material by the company, are disclosed in the Notes to Accounts. Contingent Assets are neither recognised nor disclosed in financial statements.

H. Investments:

1. Long term investments are considered ''at Cost'' on individual investment basis, unless there is a decline other than temporary in value thereof, in which case adequate provision is made against such diminution in the value of investments.

2. Current investments are valued at lower of cost or market value.

I. Borrowing Cost:

Borrwoing cost that are directly attributable to acquisition or construction of qualifying assets or treated as part of cost of capital assets. Other borrowing cost or treated as expenses for the period in which they are incurred.

J. Earning Per Share:

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earning considered in ascertaining the Company''s earnings per share is the net profit for the period after deducting preferences dividends and any attributable tax thereto for the period.

K. Cash and Cash Equivalent:

In the cash flow statement, cash and cash equivalent includes cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

Detail of transactions entered into with the related parties during the year as required by Accounting Standard (AS)-18 on ''Related Party Disclosure'' issued by the Institute of Chartered Accountants of India are as under:

Transactions with the related parties: NI

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Mar 31, 2012

A. Accounting Conventions:

The company''s financial statements have been prepared in accordance with the historical cot convention on accural basis of accounting, as applicable to going concern in accordance with generally accepted accounting principle in india, mandatory accounting standards prescribed in the companies (Accounting Standards) Rules 2006 issued by Central Government in consultation with the provisions of companies act, 1956 to the extent applicable. The financial statements are presented in Indian rupees.

All assets and liabilities have been classification as current or non current as per company''s normal operating cycle and other criteria set out in the Revised Schedule VI of Companeis Act, 1956. Based on the nature of business, the company has ascertained its operating cycle as 12 months for the purpose of current or non current classification of Assets and liabilities.

B. Revenue Recognition:

1. Sales Revenue is recognized on dispatch of goods, net of freight, insurance and VAT.

2. Interest income is recognised on time proportion basis.

C. Fixed Assets:

Fixed assets are stated at cost of acquisition and inclusive of inward freight, duties & taxes & incidential expenses related to acquisition net of capital subsidy relating to specific fixed assets.

Capital work in progress/Intangible assets under development includes cost of assets at site, advances made for acquisition of capital assets and pre operative expenditure pending allocation to fixed assets.

D. Inventory Valuation:

Inventories are valued at cost or net realizable price whichever is lower except scrap at net realisable value. The cost formula used for valuation of inventories are:-

1. In respect of raw material and stores and spares have been valued at Purchase Price, inclusive of Frieght.

2. In respect of work in process is valued at cost of raw material plus conversion cost.

3. Finished goods are valued at Selling Price less estimated margin of Profits.

E. Depreciation:

Depreciation has been provided on provided on Straight line Method in Accordance with and in the manner specified in Schedule XVI to the Companies Act, 1956.

F. Taxes on Income:

Provision for Tax is made for both current and deferred taxes. Provisions for current income tax is made on the current tax rates based on assessable income. The Company provides for deferred tax based on the tax effect of timing differences resulting from the recognition of items in the financial statements and in estimating its current tax provision.

G. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result so past event and it is probable that there will be outflow of resources. Contingent liability, which are considered significant and material by the company, are disclosed in the Notes to Accounts. Contingent Assets are neither recognised nor disclosed in financial statements.

H. Investments:

1. Long term investments are considered ''at Cost'' on individual investment basis, unless there is a decline other than temporary in value thereof, in which case adequate provision is made against such diminution in the value of investments.

2. Current investments are valued at lower of cost or market value.

I. Borrowing Cost:

Borrwoing cost that are directly attributable to acquisition or construction of qualifying assets or treated as part of cost of capital assets. Other borrowing cost or treated as expenses for the period in which they are incurred.

J. Earning Per Share:

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earning considered in ascertaining the Company''s earnings per share is the net profit for the period after deducting preferences dividends and any attributable tax thereto for the period.

K. Cash and Cash Equivalent:

In the cash flow statement, cash and cash equivalent includes cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

Detail of transactions entered into with the related parties during the year as required by Accounting Standard (AS)-18 on ''Related Party Disclosure'' issued by the Institute of Chartered Accountants of India are as under:

Transactions with the related parties: NIL

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Mar 31, 2011

A. Accounting Conventions:

The company''s financial statements have been prepared in accordance with the historical cot convention on accural basis of accounting, as applicable to going concern in accordance with generally accepted accounting principle in india, mandatory accounting standards prescribed in the companies (Accounting Standards) Rules 2006 issued by Central Government in consultation with the provisions of companies act, 1956 to the extent applicable. The financial statements are presented in Indian rupees.

All assets and liabilities have been classification as current or non current as per company''s normal operating cycle and other criteria set out in the Revised Schedule VI of Companeis Act, 1956. Based on the nature of business, the company has ascertained its operating cycle as 12 months for the purpose of current or non current classification of Assets and liabilities.

B. Revenue Recognition:

1. Sales Revenue is recognized on dispatch of goods, net of freight, insurance and VAT.

2. Interest income is recognised on time proportion basis.

C. Fixed Assets:

Fixed assets are stated at cost of acquisition and inclusive of inward freight, duties & taxes & incidential expenses related to acquisition net of capital subsidy relating to specific fixed assets.

Capital work in progress/Intangible assets under development includes cost of assets at site, advances made for acquisition of capital assets and pre operative expenditure pending allocation to fixed assets.

D. Inventory Valuation:

Inventories are valued at cost or net realizable price whichever is lower except scrap at net realisable value. The cost formula used for valuation of inventories are:-

1. In respect of raw material and stores and spares have been valued at Purchase Price, inclusive of Frieght.

2. In respect of work in process is valued at cost of raw material plus conversion cost.

3. Finished goods are valued at Selling Price less estimated margin of Profits.

E. Depreciation:

Depreciation has been provided on provided on Straight line Method in Accordance with and in the manner specified in Schedule XVI to the Companies Act, 1956.

F. Taxes on Income:

Provision for Tax is made for both current and deferred taxes. Provisions for current income tax is made on the current tax rates based on assessable income. The Company provides for deferred tax based on the tax effect of timing differences resulting from the recognition of items in the financial statements and in estimating its current tax provision.

G. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result so past event and it is probable that there will be outflow of resources. Contingent liability, which are considered significant and material by the company, are disclosed in the Notes to Accounts. Contingent Assets are neither recognised nor disclosed in financial statements.

H. Investments:

1. Long term investments are considered ''at Cost'' on individual investment basis, unless there is a decline other than temporary in value thereof, in which case adequate provision is made against such diminution in the value of investments.

2. Current investments are valued at lower of cost or market value.

I. Borrowing Cost:

Borrwoing cost that are directly attributable to acquisition or construction of qualifying assets or treated as part of cost of capital assets. Other borrowing cost or treated as expenses for the period in which they are incurred.

J. Earning Per Share:

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earning considered in ascertaining the Company''s earnings per share is the net profit for the period after deducting preferences dividends and any attributable tax thereto for the period.

K. Cash and Cash Equivalent:

In the cash flow statement, cash and cash equivalent includes cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

Detail of transactions entered into with the related parties during the year as required by Accounting Standard (AS)-18 on ''Related Party Disclosure'' issued by the Institute of Chartered Accountants of India are as under:

Transactions with the related parties: NIL