Alfred Herbert (India) Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

1 Corporate Information

The Alfred Herbert (India) Limited (''the Company") is a Non-Banking Finance Company (NBFC) having the registered office at Herbert House 13/3, Strand Road, Kolkata-700 001 , engaged in non-banking financial activities financial service activities. It has been registered with the Reserve Bank of India (RBI) as a Non-Banking Finance Company (NBFC) and is therefore governed by directions and laws issued for NBFC by RBI.

2 Statement of Compliance with Ind AS and Recent Pronouncements

2.1 Statement of Compliance

"These financial statements have been prepared in accordance with Indian Accounting Standards ("Ind AS") prescribed under Section 133 of the Companies Act, 2013 ("Act") read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). Ind ASs issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the financial statements approved for issue by the Board of Directors have been considered in preparing these financial statements. Accounting policies have been consistently applied except where a newly issued Indian Accounting Standard is initially adopted or a revision to an existing Indian Accounting Standard requires a change in the accounting policy hitherto in use."

2.2 Application of new and revised standards

"During the year ended March 31, 2026, the Ministry of Corporate Affairs (MCA) notified amendments to existing Indian Accounting Standards vide the Companies (Indian Accounting Standards) Amendment Rules, 2025 dated May 7, 2025 and the Companies (Indian Accounting Standards) Second Amendment Rules, 2025 dated August 13, 2025. These amendments were primarily relating to:

• Ind AS 21 "The Effects of Changes in Foreign Exchange Rates", introducing guidance for assessing lack of exchangeability between currencies, estimation of spot exchange rates where a currency is not exchangeable and related disclosure requirements, together with consequential amendments to Ind AS 101 "First-time Adoption of Indian Accounting Standards";

• Ind AS 1 "Presentation of Financial Statements", including amendments relating to classification of liabilities as current or non-current and related disclosure requirements;

• Ind AS 7 "Statement of Cash Flows" and Ind AS 107 "Financial Instruments: Disclosures", introducing disclosure requirements relating to supplier finance arrangements;

• Consequential and editorial amendments in various standards including Ind AS 10 "Events after the Reporting Period", Ind AS 108 "Operating Segments", Ind AS 109 "Financial Instruments", and Ind AS 115 "Revenue from Contracts with Customers". Revision in these standards did not have a material impact on the financial position, financial performance, cash flows or earnings per share of the Company for the year."

2.3 Recent accounting pronouncements

Standards issued but not yet effective

The Ministry of Corporate Affairs ("MCA") has notified amendments to Ind AS 1 "Presentation of Financial Statements" relating to classification of liabilities as current or non-current and non-current liabilities with covenants, which are effective for reporting periods beginning on or after April 1,2026.

The amendments clarify that lender waivers obtained after the balance sheet date cannot be considered for classification of liabilities as current or non-current and require retrospective application in accordance with Ind AS 8.

The Company does not expect these amendments to have any material impact on its financial statements.

3 Material Accounting Policies

3.1 Basis of Preparation

The Standalone Financial Statements have been prepared under the historical cost convention on accrual basis excepting certain financial instruments which are measured in terms of relevant Ind AS at fair value/ amortized costs at the end of each reporting period.

Historical cost convention is generally based on the fair value of the consideration given in exchange for goods and services.

The Standalone Financial Statements are presented in Indian Rupees and all values are rounded off to the nearest lakhs upto two decimal places.

3.2 Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions.

The Company categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed for such measurement:

Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within level 1 that are observable either directly or indirectly for the asset or liability.

Level 3: Inputs for the asset or liability which are not based on observable market data (unobservable inputs).

The company has an established control framework with respect to the measurement of fair values. This includes a finance team that has overall responsibility for overseeing all significant fair value measurements who regularly review significant unobservable inputs, valuation adjustments and fair value hierarchy under which the valuation should be classified.

3.3 Property Plant and Equipment

Property, Plant and Equipment are stated at cost of acquisition, construction and subsequent improvements thereto less accumulated depreciation and impairment losses, if any. For this purpose cost include deemed cost on the date of transition and comprises purchase price of assets or its construction cost including duties and taxes, inward freight and other expenses incidental to acquisition or installation and adjustment for exchange differences wherever applicable and any cost directly attributable to bring the asset into the location and condition necessary for it to be capable of operating in the manner intended for its use.

Parts of an item of Property, Plant and Equipment having different useful lives and material value and subsequent expenditure on Property, Plant and Equipment arising on account of capital improvement or other factors are accounted for as separate components.

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in the income statement when incurred.

3.4 Investment Property

"Investment properties are properties held to earn rentals or for capital appreciation, or both. Investment properties are measured initially at their cost of acquisition. The cost comprises purchase price, borrowing cost, if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that the future econom ic benefits associated with the item will flow to the Company. All

other repair and maintenance costs are recognised in the Statement of Profit and Loss as incurred."

3.5 Derecognition of Tangible Assets and Investment Property

An item of Property, Plant and Equipment and Investment Property is de-recognised upon disposal or when no future economic benefits are expected to arise from its use or disposal. Gain or loss arising on the disposal or retirement of an item of Property, Plant and Equipment and Investment Property is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Profit and Loss.

3.6 Impairment of Tangible Assets and Investment Property

Tangible assets and Investment Property are reviewed at each balance sheet date for impairment. In case events and circumstances indicate any impairment, recoverable amount of assets is determined. An impairment loss is recognized in the statement of profit and loss, whenever the carrying amount of assets either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The recoverable amount is the higher of asset''s fair value less cost of disposal and its value in use. In assessing value in use, the estimated future cash flows from the use of the assets are discounted to their present value at appropriate rate.

Impairment losses recognized earlier may no longer exist or may have come down. Based on such assessment at each reporting period the impairment loss is reversed and recognized in the Statement of Profit and Loss. In such cases the carrying amount of the asset is increased to the lower of its recoverable amount and the carrying amount that have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.

3.7 Capital work in progress and Capital Advances

Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as Capital work in progress. Advances given towards acquisition of Property, Plant and Equipment outstanding at each Balance Sheet date are disclosed in Other Non Financial Assets.

3.8 Foreign Currency Transactions

Transactions in foreign currencies are accounted for at the exchange rate prevailing on the date of the transaction. Foreign currency assets and liabilities are translated at exchange rates prevailing at the year end. The loss or gain thereon and also on the exchange differences on settlement of the foreign currency transaction during the year are recognized in the Statement of Profit & Loss, except in the cases where any fixed asset acquired from a country outside India, in such case, these are adjusted to the cost of respective fixed assets.

3.9 Financial Assets and Financial Liabilities

Financial Assets and Financial Liabilities (financial instruments) are recognised when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial Liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in the Statement of Profit and Loss. However, trade receivables that do not contain a significant financing component are measured at transaction price.

The classification of financial instruments whether to be measured at Amortized Cost, at Fair Value through Profit or Loss (FVTPL) or at Fair Value through Other Comprehensive Income (FVTOCI) depends on the objective and contractual terms to which they relate. Classification of financial instruments are determined on initial recognition.

(i) Cash and cash equivalents

All highly liquid financial instruments, which are readily convertible into determinable amounts of cash and which are subject to an insignificant risk of change in value and are having original maturities of three months or less from the date of purchase, are considered as cash equivalents. Cash and cash equivalents includes balances with banks which are unrestricted for withdrawal and usage.

(ii) Investment in subsidiaries

The Company has chosen to carry investments in subsidiaries at cost less impairment, if any in the standalone financial statements.

(iii) Financial Assets and Financial Liabilities measured at amortised cost

Financial Assets held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are measured at amortized cost.

The above Financial Assets and Financial Liabilities subsequent to initial recognition are measured at amortized cost using Effective Interest Rate (EIR) method.

The effective interest rate is the rate that discounts estimated future cash payments or receipts (including all fees and points paid or received, transaction costs and other premiums or discounts) through the expected life of the Financial Asset or Financial Liability to the gross carrying amount of the financial asset or to the amortised cost of financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

(iv) Financial Asset at Fair Value through Other Comprehensive Income (FVTOCI)

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Subsequent to initial recognition, they are measured at fair value and changes therein are recognised directly in other comprehensive income.

(v) For the purpose of para (iii) and (iv) above, principal is the fair value of the financial asset at initial recognition and interest consists of consideration for the time value of money and associated credit risk.

(vi) Financial Assets or Liabilities at Fair value through profit or loss

Financial Instruments which does not meet the criteria of amortised cost or fair value through other comprehensive income, as applicable in each case, are classified as Fair Value through Profit or loss. These are recognised at fair value and changes therein are recognized in the statement of profit and loss.

(vii) Impairment of financial assets

A financial asset is assessed for impairment at each balance sheet date. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.

The company measures the loss allowance for a financial asset at an amount equal to the lifetime expected credit

losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses.

However, for trade receivables or contract assets that result in relation to revenue from contracts with customers, the company measures the loss allowance at an amount equal to lifetime expected credit losses.

(viii) Derecognition of financial instruments

The Company derecognizes a financial asset or a group of financial assets when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset (except for equity instruments designated as FVTOCI), the difference between the asset''s carrying amount and the sum of the consideration received and receivable are recognized in statement of profit and loss.

On derecognition of assets measured at FVTOCI the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.

Financial liabilities are derecognized if the Company''s obligations specified in the contract expire or are discharged or cancelled. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in Statement of Profit and Loss.

3.10 Equity Share Capital

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its liabilities. Par value of the equity shares is recorded as share capital and the amount received in excess of par value is classified as Securities Premium.

Costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects.

3.11 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or constructive obligation as a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are not recognised for future

operating losses. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Contingent liabilities are not recognized and are disclosed by way of notes to the standalone financial statements when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or when there is a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the same or a reliable estimate of the amount in this respect cannot be made.

Contingent assets are not recognised but disclosed in the Standalone Financial Statements by way of notes to accounts when an inflow of economic benefits is probable.

3.12 Employee Benefits

Employee benefits are accrued in the year in which services are rendered by the employees. Short term employee benefits are recognized as an expense in the statement of profit and loss for the year in which the related service is rendered.

(i) Gratuity (Defined Benefit Plan) : The Company has a Gratuity Fund administered by the Trustees, which is independent of the Company''s finance. The liability in respect of Gratuity has been determined by actuarial valuation following Projected Unit Credit Method.

(ii) Leave Encashment : According to the prevailing practice of the Company, the employees are allowed to enjoy the leave within the year. No encashment of leave is allowed.

(iii) Provident Fund (Defined Contribution Scheme) : Accounted for on accrual basis based on the monthly contribution made to the appropriate authorities.

3.13 Recognition of Dividend and Interest Income

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Dividend Income is recognised when the Company''s right to receive the payment is established. Under Ind AS 109, interest income is recorded using the Effective Interest Rate (EIR) method for all financial instruments measured at amortised cost. The EIR is the rate that exactly discounts estimated future cash receipts through the expected life of the financial

instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset. The EIR (and therefore the amortised cost of the asset) is calculated by taking into account any discount or premium on acquisition, fees and costs that are an integral part of the EIR.

3.14 Leases

As a lessee

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company''s lease asset class primarily consist of leases for Land. At the inception of the contract, Company assess whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) Company has substantially all of the economic benefits from the use of the asset through the period of the lease and

(iii) Company has the right to direct the use of the asset.

At the date of commencement of the lease, Company recognizes a right-of-use asset (""ROU"") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low-value leases. For these short-term or low-value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date of the lease plus any initial direct cost less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities include these options when it is reasonably certain that they will be exercised. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option. On the Balance Sheet, ROU assets have been included in

property, plant and equipment and lease liabilities have been presented separately.

3.15 Taxes on Income

Income tax expense representing the sum of current tax expense and the net charge of the deferred taxes is recognized in the income statement except to the extent that it relates to items recognized directly in equity or other comprehensive income.

Current tax is provided on the taxable income and recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Standalone Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

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

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilized.

3.16 Earnings Per Share

Basic earnings per share are computed by dividing the net profit attributable to the equity shareholders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit attributable to the equity shareholders of the company by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

4 Critical accounting judgments, assumptions and key sources of estimation and uncertainty

The preparation of the standalone financial statements in conformity with the measurement principle of Ind AS

requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the standalone financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized and, if material, their effects are disclosed in the notes to the financial statements.

Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of assumptions in the financial statements have been disclosed below. The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are discussed below:

4.1 Depreciation and impairment on property, plant and equipment and investment property

Property, plant and equipment are depreciated on straight-line basis over the estimated useful lives in accordance with Schedule II of the Companies Act, 2013, taking into account the estimated residual value, wherever applicable.

The company reviews its carrying value of its Tangible Assets and Investment Property whenever there is objective evidence that the assets are impaired. In such situation Asset''s recoverable amount is estimated which is higher of asset''s or cash generating units (CGU) fair value less cost of disposal and its value in use. In assessing value in use the estimated future cash flows are discounted using pre-tax discount rate which reflect the current assessment of time value of money. In determining fair value less cost of disposal, recent market realisations are considered or otherwise in absence of such transactions appropriate valuations are adopted. The Company reviews the estimated useful lives of the assets regularly in order to determine the amount of depreciation and amount of impairment expense to be recorded during any reporting period. This reassessment may result in change estimated in future periods.

4.2 Current Tax and Deferred Tax

Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses during the estimation of the provision for income taxes.

Deferred tax assets are recognised for unused losses (carry forward of prior years'' losses) and unused tax credit to the extent that it is probable that taxable profit would be available against which the losses could be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

4.3 Defined Benefit Obligations (DBO)

Critical estimate of DBO involves a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate, anticipation of future salary increases, etc as estimated by Independent Actuary appointed for this purpose by the Management. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

4.4 Provisions and Contingencies

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

Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations/ against the Company as it is not possible to predict the outcome of pending matters with accuracy.

The carrying amounts of provisions and liabilities and estimation for contingencies are reviewed regularly and revised to take account of changing facts and circumstances.

3 Significant Accounting Policies

3.1 Basis of Preparation

The Standalone Financial Statements have been
prepared under the historical cost convention on accrual
basis excepting certain financial instruments which
are measured in terms of relevant Ind AS at fair value/
amortized costs at the end of each reporting period.

Historical cost convention is generally based on the fair
value of the consideration given in exchange for goods
and services.

The Standalone Financial Statements are presented
in Indian Rupees and all values are rounded off to the
nearest lakhs upto two decimal places.

3.2 Fair Value Measurement

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date
under current market conditions.

The Company categorizes assets and liabilities measured
at fair value into one of three levels depending on
the ability to observe inputs employed for such
measurement:

Level 1: Inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within
level 1 that are observable either directly or indirectly for
the asset or liability.

Level 3: Inputs for the asset or liability which are not

based on observable market data (unobservable inputs).

The company has an established control framework
with respect to the measurement of fair values. This
includes a finance team that has overall responsibility
for overseeing all significant fair value measurements
who regularly review significant unobservable inputs,
valuation adjustments and fair value hierarchy under
which the valuation should be classified.

3.3 Property Plant and Equipment

Property, Plant and Equipment are stated at cost of
acquisition, construction and subsequent improvements
thereto less accumulated depreciation and impairment
losses, if any. For this purpose cost include deemed cost
on the date of transition and comprises purchase price
of assets or its construction cost including duties and
taxes, inward freight and other expenses incidental to
acquisition or installation and adjustment for exchange
differences wherever applicable and any cost directly
attributable to bring the asset into the location and
condition necessary for it to be capable of operating in
the manner intended for its use.

Parts of an item of Property, Plant and Equipment having
different useful lives and material value and subsequent
expenditure on Property, Plant and Equipment arising
on account of capital improvement or other factors are
accounted for as separate components.

The cost of replacing part of an item of property, plant
and equipment is recognised in the carrying amount of
the item if it is probable that the future economic benefits
embodied within the part will flow to the Company and
its cost can be measured reliably. The costs of the day-
to-day servicing of property, plant and equipment are
recognised in the income statement when incurred.

3.4 Investment Property

"Investment properties are properties held to earn rentals
or for capital appreciation, or both. Investment properties
are measured initially at their cost of acquisition. The cost
comprises purchase price, borrowing cost, if capitalisation
criteria are met and directly attributable cost of bringing
the asset to its working condition for the intended use.
Subsequent costs are included in the asset''s carrying
amount or recognised as a separate asset, as appropriate,
only when it is probable that the future econom ic benefits
associated with the item will flow to the Company. All
other repair and maintenance costs are recognised in the
Statement of Profit and Loss as incurred."

3.5 Derecognition of Tangible Assets and Investment
Property

An item of Property, Plant and Equipment and Investment
Property is de-recognised upon disposal or when no

future economic benefits are expected to arise from its
use or disposal. Gain or loss arising on the disposal or
retirement of an item of Property, Plant and Equipment
and Investment Property is determined as the difference
between the sales proceeds and the carrying amount of
the asset and is recognised in the Statement of Profit and
Loss.

3.6 Impairment of Tangible Assets and Investment
Property

Tangible assets and Investment Property are reviewed at
each balance sheet date for impairment. In case events
and circumstances indicate any impairment, recoverable
amount of assets is determined. An impairment loss is
recognized in the statement of profit and loss, whenever
the carrying amount of assets either belonging to Cash
Generating Unit (CGU) or otherwise exceeds recoverable
amount. The recoverable amount is the higher of asset''s
fair value less cost of disposal and its value in use. In
assessing value in use, the estimated future cash flows
from the use of the assets are discounted to their present
value at appropriate rate.

Impairment losses recognized earlier may no longer exist
or may have come down. Based on such assessment at
each reporting period the impairment loss is reversed
and recognized in the Statement of Profit and Loss. In
such cases the carrying amount of the asset is increased
to the lower of its recoverable amount and the carrying
amount that have been determined, net of depreciation,
had no impairment loss been recognized for the asset in
prior years.

3.7 Capital work in progress and Capital Advances

Cost of assets not ready for intended use, as on the
Balance Sheet date, is shown as Capital work in progress.
Advances given towards acquisition of Property, Plant
and Equipment outstanding at each Balance Sheet date
are disclosed in Other Non Financial Assets.

3.8 Foreign Currency Transactions

Transactions in foreign currencies are accounted for at the
exchange rate prevailing on the date of the transaction.
Foreign currency assets and liabilities are translated at
exchange rates prevailing at the year end. The loss or
gain thereon and also on the exchange differences on
settlement of the foreign currency transaction during the
year are recognized in the Statement of Profit & Loss,
except in the cases where any fixed asset acquired from
a country outside India, in such case, these are adjusted
to the cost of respective fixed assets.

3.9 Financial Assets and Financial Liabilities

Financial Assets and Financial Liabilities (financial
instruments) are recognised when the Company becomes

a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets
and financial Liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are
added to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately
in the Statement of Profit and Loss. However, trade
receivables that do not contain a significant financing
component are measured at transaction price.

The classification of financial instruments whether to
be measured at Amortized Cost, at Fair Value through
Profit or Loss (FVTPL) or at Fair Value through Other
Comprehensive Income (FVTOCI) depends on the
objective and contractual terms to which they relate.
Classification of financial instruments are determined on
initial recognition.

(i) Cash and cash equivalents

All highly liquid financial instruments, which are readily
convertible into determinable amounts of cash and
which are subject to an insignificant risk of change in
value and are having original maturities of three months
or less from the date of purchase, are considered as cash
equivalents. Cash and cash equivalents includes balances
with banks which are unrestricted for withdrawal and
usage.

(ii) Investment in subsidiaries

The Company has chosen to carry investments in
subsidiaries at cost less impairment, if any in the
standalone financial statements.

(iii) Financial Assets and Financial Liabilities measured
at amortised cost

Financial Assets held within a business whose objective
is to hold these assets in order to collect contractual
cash flows and the contractual terms of the financial
asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal
amount outstanding are measured at amortized cost.

The above Financial Assets and Financial Liabilities
subsequent to initial recognition are measured at
amortized cost using Effective Interest Rate (EIR) method.

The effective interest rate is the rate that discounts
estimated future cash payments or receipts (including all
fees and points paid or received, transaction costs and
other premiums or discounts) through the expected life

of the Financial Asset or Financial Liability to the gross
carrying amount of the financial asset or to the amortised
cost of financial liability, or, where appropriate, a shorter
period, to the net carrying amount on initial recognition.

(iv) Financial Asset at Fair Value through Other
Comprehensive Income (FVTOCI)

Financial assets are measured at fair value through other
comprehensive income if these financial assets are held
within a business whose objective is achieved by both
collecting contractual cash flows and selling financial
assets and the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding. Subsequent to initial recognition,
they are measured at fair value and changes therein are
recognised directly in other comprehensive income.

(v) For the purpose of para (iii) and (iv) above, principal
is the fair value of the financial asset at initial recognition
and interest consists of consideration for the time value
of money and associated credit risk.

(vi) Financial Assets or Liabilities at Fair value through
profit or loss

Financial Instruments which does not meet the criteria of
amortised cost or fair value through other comprehensive
income, as applicable in each case, are classified as Fair
Value through Profit or loss. These are recognised at
fair value and changes therein are recognized in the
statement of profit and loss.

(vii) Impairment of financial assets

A financial asset is assessed for impairment at each
balance sheet date. A financial asset is considered to
be impaired if objective evidence indicates that one or
more events have had a negative effect on the estimated
future cash flows of that asset.

The company measures the loss allowance for a financial
asset at an amount equal to the lifetime expected credit
losses if the credit risk on that financial instrument has
increased significantly since initial recognition. If the
credit risk on a financial instrument has not increased
significantly since initial recognition, the company
measures the loss allowance for that financial instrument
at an amount equal to 12-month expected credit losses.

However, for trade receivables or contract assets
that result in relation to revenue from contracts with
customers, the company measures the loss allowance at
an amount equal to lifetime expected credit losses.

(viii) Derecognition of financial instruments

The Company derecognizes a financial asset or a group
of financial assets when the contractual rights to the

cash flows from the asset expire, or when it transfers the
financial asset and substantially all the risks and rewards
of ownership of the asset to another party.

On derecognition of a financial asset (except for equity
instruments designated as FVTOCI), the difference
between the asset''s carrying amount and the sum of the
consideration received and receivable are recognized in
statement of profit and loss.

On derecognition of assets measured at FVTOCI the
cumulative gain or loss previously recognised in other
comprehensive income is reclassified from equity to
profit or loss as a reclassification adjustment.

Financial liabilities are derecognized if the Company''s
obligations specified in the contract expire or are
discharged or cancelled. The difference between the
carrying amount of the financial liability derecognized
and the consideration paid and payable is recognized in
Statement of Profit and Loss.

3.10 Equity Share Capital

An equity instrument is a contract that evidences residual
interest in the assets of the company after deducting all
of its liabilities. Par value of the equity shares is recorded
as share capital and the amount received in excess of par
value is classified as Securities Premium.

Costs directly attributable to the issue of ordinary shares
are recognised as a deduction from equity, net of any tax
effects.

3 Significant Accounting Policies

3.1 Basis of Preparation

The Standalone Financial Statements have been prepared under the historical cost convention on accrual basis excepting certain financial instruments which are measured in terms of relevant Ind AS at fair value/ amortized costs at the end of each reporting period.

Historical cost convention is generally based on the fair value of the consideration given in exchange for goods and services.

The Standalone Financial Statements are presented in Indian Rupees and all values are rounded off to the nearest lakhs upto two decimal places.

3.2 Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions.

The Company categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed for such measurement:

Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within level 1 that are observable either directly or indirectly for the asset or liability.

Level 3: Inputs for the asset or liability which are not

based on observable market data (unobservable inputs).

The company has an established control framework with respect to the measurement of fair values. This includes a finance team that has overall responsibility for overseeing all significant fair value measurements who regularly review significant unobservable inputs, valuation adjustments and fair value hierarchy under which the valuation should be classified.

3.3 Property Plant and Equipment

Property, Plant and Equipment are stated at cost of acquisition, construction and subsequent improvements thereto less accumulated depreciation and impairment losses, if any. For this purpose cost include deemed cost on the date of transition and comprises purchase price of assets or its construction cost including duties and taxes, inward freight and other expenses incidental to acquisition or installation and adjustment for exchange differences wherever applicable and any cost directly attributable to bring the asset into the location and condition necessary for it to be capable of operating in the manner intended for its use.

Parts of an item of Property, Plant and Equipment having different useful lives and material value and subsequent expenditure on Property, Plant and Equipment arising on account of capital improvement or other factors are accounted for as separate components.

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will low to the Company and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in the income statement when incurred.

3.4 Investment Property

"Investment properties are properties held to earn rentals or for capital appreciation, or both. Investment properties are measured initially at their cost of acquisition. The cost comprises purchase price, borrowing cost, if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that the future econom ic benefits associated with the item will low to the Company. All other repair and maintenance costs are recognised in the Statement of Profit and Loss as incurred."

3.5 Derecognition of Tangible Assets and Investment Property

An item of Property, Plant and Equipment and Investment Property is de-recognised upon disposal or when no

future economic benefits are expected to arise from its use or disposal. Gain or loss arising on the disposal or retirement of an item of Property, Plant and Equipment and Investment Property is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Profit and Loss.

3.6 Impairment of Tangible Assets and Investment Property

Tangible assets and Investment Property are reviewed at each balance sheet date for impairment. In case events and circumstances indicate any impairment, recoverable amount of assets is determined. An impairment loss is recognized in the statement of profit and loss, whenever the carrying amount of assets either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The recoverable amount is the higher of asset''s fair value less cost of disposal and its value in use. In assessing value in use, the estimated future cash lows from the use of the assets are discounted to their present value at appropriate rate.

Impairment losses recognized earlier may no longer exist or may have come down. Based on such assessment at each reporting period the impairment loss is reversed and recognized in the Statement of Profit and Loss. In such cases the carrying amount of the asset is increased to the lower of its recoverable amount and the carrying amount that have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.

3.7 Capital work in progress and Capital Advances

Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as Capital work in progress. Advances given towards acquisition of Property, Plant and Equipment outstanding at each Balance Sheet date are disclosed in Other Non Financial Assets.

3.8 Foreign Currency Transactions

Transactions in foreign currencies are accounted for at the exchange rate prevailing on the date of the transaction. Foreign currency assets and liabilities are translated at exchange rates prevailing at the year end. The loss or gain thereon and also on the exchange differences on settlement of the foreign currency transaction during the year are recognized in the Statement of Profit & Loss, except in the cases where any fixed asset acquired from a country outside India, in such case, these are adjusted to the cost of respective fixed assets.

3.9 Financial Assets and Financial Liabilities

Financial Assets and Financial Liabilities (financial instruments) are recognised when the Company becomes

a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial Liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in the Statement of Profit and Loss. However, trade receivables that do not contain a significant financing component are measured at transaction price.

The classification of financial instruments whether to be measured at Amortized Cost, at Fair Value through Profit or Loss (FVTPL) or at Fair Value through Other Comprehensive Income (FVTOCI) depends on the objective and contractual terms to which they relate. Classification of financial instruments are determined on initial recognition.

(i) Cash and cash equivalents

All highly liquid financial instruments, which are readily convertible into determinable amounts of cash and which are subject to an insignificant risk of change in value and are having original maturities of three months or less from the date of purchase, are considered as cash equivalents. Cash and cash equivalents includes balances with banks which are unrestricted for withdrawal and usage.

(ii) Investment in subsidiaries

The Company has chosen to carry investments in subsidiaries at cost less impairment, if any in the standalone financial statements.

(iii) Financial Assets and Financial Liabilities measured at amortised cost

Financial Assets held within a business whose objective is to hold these assets in order to collect contractual cash lows and the contractual terms of the financial asset give rise on specified dates to cash lows that are solely payments of principal and interest on the principal amount outstanding are measured at amortized cost.

The above Financial Assets and Financial Liabilities subsequent to initial recognition are measured at amortized cost using Effective Interest Rate (EIR) method.

The effective interest rate is the rate that discounts estimated future cash payments or receipts (including all fees and points paid or received, transaction costs and other premiums or discounts) through the expected life

of the Financial Asset or Financial Liability to the gross carrying amount of the financial asset or to the amortised cost of financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

(iv) Financial Asset at Fair Value through Other Comprehensive Income (FVTOCI)

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash lows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash lows that are solely payments of principal and interest on the principal amount outstanding. Subsequent to initial recognition, they are measured at fair value and changes therein are recognised directly in other comprehensive income.

(v) For the purpose of para (iii) and (iv) above, principal is the fair value of the financial asset at initial recognition and interest consists of consideration for the time value of money and associated credit risk.

(vi) Financial Assets or Liabilities at Fair value through profit or loss

Financial Instruments which does not meet the criteria of amortised cost or fair value through other comprehensive income, as applicable in each case, are classified as Fair Value through Profit or loss. These are recognised at fair value and changes therein are recognized in the statement of profit and loss.

(vii) Impairment of financial assets

A financial asset is assessed for impairment at each balance sheet date. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash lows of that asset.

The company measures the loss allowance for a financial asset at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses.

However, for trade receivables or contract assets that result in relation to revenue from contracts with customers, the company measures the loss allowance at an amount equal to lifetime expected credit losses.

(viii) Derecognition of financial instruments

The Company derecognizes a financial asset or a group of financial assets when the contractual rights to the

cash lows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a inancial asset (except for equity instruments designated as FVTOCI), the difference between the asset''s carrying amount and the sum of the consideration received and receivable are recognized in statement of proit and loss.

On derecognition of assets measured at FVTOCI the cumulative gain or loss previously recognised in other comprehensive income is reclassiied from equity to proit or loss as a reclassiication adjustment.

Financial liabilities are derecognized if the Company''s obligations speciied in the contract expire or are discharged or cancelled. The difference between the carrying amount of the inancial liability derecognized and the consideration paid and payable is recognized in Statement of Proit and Loss.

3.10 Equity Share Capital

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its liabilities. Par value of the equity shares is recorded as share capital and the amount received in excess of par value is classiied as Securities Premium.

Costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects.

1. SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation of financial statements

The Financial statements are prepared on accrual basis under the historical cost convention (except where impairment is made and revaluation is carried out) on the basis of going concern and in accordance with the provisions of the Companies Act, 2013 (‘the Act’) and Accounting standards specified under section 133 of ‘the Act’ read with Rule 7 of the Companies (Accounts) Rules, 2014 and accounting principles generally accepted in India. Accounting policies unless specifically stated to be otherwise, are consistent and are in consonance with generally accepted accounting principles.

Use of Estimates

In preparing the Financial statements in conformity with accounting principles generally accepted in India, Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of Financial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognised in the period the same is determined.

Property, Plant & Equipment

Tangible Assets other than leasehold building and those, which have been revalued, are stated at cost net of impairment loss, if any, less depreciation/amortisation. Cost represents expenses relating to acquisition, installation of Assets and other directly attributable costs incurred till the date assets are put to use. Capital work-in-progress includes expenses relating to construction of Building, not ready for its intended use as on the close of the reported period.

Impairment of Assets

Impairment is ascertained at each Balance sheet date in respect of the Company’s fixed assets. An impairment loss is recognised whenever the carrying amount of an asset or cash generating unit exceeds its recoverable amount.

Depreciation / Amortisation

(i) The Company has provided Depreciation on straight Line Method as per the requirement of schedule II of the Companies Act, 2013.

(ii) Depreciation on incremental value of fixed assets due to revaluation is provided on straight-line basis with respect to technically evaluated, remaining useful life of the assets.

(iii) Leasehold Building is being amortised over the lease period. Investments

Non Current Investments are stated at cost less provision for diminution in value other than temporary, if any. Current investments are valued at cost or market price or realisable value whichever is lower. Dividend is accounted for as and when the right to receive the same is established.

Dividend Payment

Dividends payable to the Company’s shareholders are recognised in the period in which they are approved by the Company’s shareholders.

Foreign Currency Transaction

Transactions in foreign currencies are accounted for at the exchange rate prevailing on the date of the transaction. Foreign currency assets and liabilities are translated at exchange rates prevailing at the year end. The loss or gain thereon and also on the exchange differences on settlement of the foreign currency transaction during the year are recognised in the statement of profit and Loss.

Revenue Recognition

Sales are recognised on passing of the ownership of goods as per the terms of sales.Claims, commission and service charges to the extent considered realisable have been accounted for on ascertainment of amounts thereof. Interest is accrued and recognised on time proportion basis and determined by contractual rate of interest. Dividend is accounted for as and when the right to receive the same is established.

Employee Benefits

Short term employee benefits is recognized as expense in the statement of profit and Loss of the year in which related service is rendered. post employment and other long term employee benefits are provided in the accounts in the following manner :

i) Gratuity (Defined Benefit plan) : The Company has a Gratuity Fund administered by the Trustees, which is independent of the Company’s finance. The liability in respect of Gratuity has been determined by actuarial valuation following projected Unit Credit Method.

ii) Leave Encashment : According to the prevailing practice of the Company, the employees are allowed to enjoy the leave within the year. No encashment of leave is allowed.

iii) provident Fund (Defined Contribution scheme) : Accounted for on accrual basis based on the monthly contribution made to the appropriate authorities.

Taxes on Income

Income tax is accounted for in accordance with Accounting standard (As-22) - “Accounting for Taxes on Income”. Current Tax is calculated on the taxable income using prevailing tax rate and applicable tax laws.

Deferred tax is provided and recognised on timing differences between taxable income and accounting income subject to prudential consideration.

Deferred tax assets on unabsorbed depreciation and carry forward losses are not recognized unless there is a virtual certainty about availability of future taxable income to realise such assets.

Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when there is a present legal or statutory obligation as a result of past events and where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities are recognised only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

Contingent Assets are not recognized in the Financial statements.

Notes to the Balance Sheet and Statement of Profit & Loss

1. SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation of financial statements

The Financial statements are prepared on accrual basis under the historical cost convention (except where impairment is made and revaluation is carried out) on the basis of going concern and in accordance with the provisions of the Companies Act, 2013 (''the Act'') and Accounting standards specified under section 133 of ''the Act'' read with Rule 7 of the Companies (Accounts) Rules, 2014 and accounting principles generally accepted in India. Accounting policies unless specifically stated to be otherwise, are consistent and are in consonance with generally accepted accounting principles.

Use of Estimates

In preparing the Financial statements in conformity with accounting principles generally accepted in India, Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of Financial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognized in the period the same is determined.

Property, Plant & Equipment

Tangible Assets other than leasehold building and those, which have been revalued, are stated at cost net of impairment loss, if any, less depreciation/amortization. Cost represents expenses relating to acquisition, installation of Assets and other directly attributable costs incurred till the date assets are put to use.

Capital work-in-progress includes expenses relating to construction of Building, not ready for its intended use as on the close of the reported period.

Impairment of Assets

Impairment is ascertained at each Balance sheet date in respect of the Company''s fixed assets. An impairment loss is recognized whenever the carrying amount of an asset or cash generating unit exceeds its recoverable amount. Depreciation / Amortization

(i) The Company has provided Depreciation on straight Line Method as per the requirement of schedule II of the Companies Act, 2013.

(ii) Depreciation on incremental value of fixed assets due to revaluation is provided on straight-line basis with respect to technically evaluated, remaining useful life of the assets.

(iii) Leasehold Building is being amortized over the lease period.

Investments

Non-Current Investments are stated at cost less provision for diminution in value other than temporary, if any. Current investments are valued at cost or market price or realizable value whichever is lower. Dividend is accounted for as and when the right to receive the same is established.

Dividend Payment

Dividends payable to the Company''s shareholders are recognized in the period in which they are approved by the Company''s shareholders.

Foreign Currency Transaction

Transactions in foreign currencies are accounted for at the exchange rate prevailing on the date of the transaction. Foreign currency assets and liabilities are translated at exchange rates prevailing at the year end. The loss or gain thereon and also on the exchange differences on settlement of the foreign currency transaction during the year are recognized in the statement of Profit and Loss. Revenue Recognition sales are recognized on passing of the ownership of goods as per the terms of sales. Claims, commission and service charges to the extent considered realizable have been accounted for on ascertainment of amounts thereof. Interest is accrued and recognized on time proportion basis and determined by contractual rate of interest. Dividend is accounted for as and when the right to receive the same is established.

Employee Benefits

short term employee benefits is recognized as expense in the statement of Profit and Loss of the year in which related service is rendered. Post-employment and other long term employee benefits are provided in the accounts in the following manner :

i) Gratuity (Defined Benefit Plan) : The Company has a Gratuity Fund administered by the Trustees, which is independent of the Company''s finance. The liability in respect of Gratuity has been determined by actuarial valuation following Projected Unit Credit Method.

ii) Leave Encashment : According to the prevailing practice of the Company, the employees are allowed to enjoy the leave within the year. No encashment of leave is allowed.

iii) Provident Fund (Defined Contribution scheme) : Accounted for on accrual basis based on the monthly contribution made to the appropriate authorities.

Taxes on Income

Income tax is accounted for in accordance with Accounting standard (As-22) - "Accounting for Taxes on Income". Current Tax is calculated on the taxable income using prevailing tax rate and applicable tax laws.

Deferred tax is provided and recognized on timing differences between taxable income and accounting income subject to prudential consideration.

Deferred tax assets on unabsorbed depreciation and carry forward losses are not recognized unless there is a virtual certainty about availability of future taxable income to realise such assets.

Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when there is a present legal or statutory obligation as a result of past events and where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

Contingent Assets are not recognized in the Financial statements.

2.1.1. There has been no change / movement in the number of outstanding shares as at the beginning and at the end of our reporting period.

2.1.2 The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity is entitled to one vote per share. The Company may declare and pay dividends. The dividend, if any proposed by the Board of Directors of the Company is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in proportion to the number of equity shares held by Equity Shareholders.

2.1.3 EQUITY SHARES IN THE COMPANY HELD BY EACH SHAREHOLDER HOLDING MORE THAN 5% EQUITY SHARES

Notes to the Balance Sheet and Statement of Profit and Loss (Contd.)

Basis of preparation of financial statements

The Financial Statements are prepared on accrual basis under the historical cost convention (except where impairment is made and revaluation is carried out) on the basis of going concern and in accordance with the provisions of the Companies Act, 2013 (''the Act'') and Accounting Standards specified under section 133 of ''the Act'' read with Rule 7 of the Companies (Accounts) Rules, 2014 and accounting principles generally accepted in India. Accounting policies unless specifically stated to be otherwise, are consistent and are in consonance with generally accepted accounting principles.

Use of Estimates

in preparing the Financial Statements in conformity with accounting principles generally accepted in India, Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of Financial Statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognized in the period the same is determined.

Property, Plant & Equipment

Tangible Assets other than leasehold building and those, which have been revalued, are stated at cost net of impairment loss, if any, less depreciation/amortization. Cost represents expenses relating to acquisition, installation of Assets and other directly attributable costs incurred till the date assets are put to use.

Capital work-in-progress includes expenses relating to construction of Building, not ready for its intended use as on the close of the reported period.

Impairment of Assets

impairment is ascertained at each Balance Sheet date in respect of the Company''s fixed assets. An impairment loss is recognized whenever the carrying amount of an asset or cash generating unit exceeds its recoverable amount. Depreciation / Amortization

(i) The Company has provided Depreciation on Straight Line Method as per the requirement of Schedule ii of the Companies Act, 2013.

(ii) Depreciation on incremental value of fixed assets due to revaluation is provided on straight-line basis with respect to technically evaluated, remaining useful life of the assets.

(iii) Leasehold Building is being amortized over the lease period.

Investments

Non Current investments are stated at cost less provision for diminution in value other than temporary, if any. Current investments are valued at cost or market price or realizable value whichever is lower. Dividend is accounted for as and when the right to receive the same is established.

Dividend

Dividends payable to the Company''s shareholders are recognized in the period in which they are approved by the Company''s shareholders.

Foreign Currency Transaction

Transactions in foreign currencies are accounted for at the exchange rate prevailing on the date of the transaction. Foreign currency assets and liabilities are translated at exchange rates prevailing at the year end. The loss or gain thereon and also on the exchange differences on settlement of the foreign currency transaction during the year are recognized in the Statement of profit and Loss. Revenue Recognition

Sales are recognized on passing of the ownership of goods as per the terms of sales. Claims, commission and service charges to the extent considered realizable have been accounted for on ascertainment of amounts thereof. interest is accrued and recognized on time proportion basis and determined by contractual rate of interest. Dividend is accounted for as and when the right to receive the same is established.

Employee Benefits

Short term employee benefits is recognized as expense in the Statement of profit and Loss of the year in which related service is rendered. post employment and other long term employee benefits are provided in the accounts in the following manner:

i) Gratuity (Defined Benefit plan) : The Company has a Gratuity Fund administered by the Trustees, which is independent of the Company''s finance. The liability in respect of Gratuity has been determined by actuarial valuation following projected Unit Credit Method.

ii) Leave Encashment : According to the prevailing practice of the Company, the employees are allowed to enjoy the leave within the year. No encashment of leave is allowed.

iii) provident Fund (Defined Contribution Scheme) : Accounted for on accrual basis based on the monthly contribution made to the appropriate authorities.

Taxes on Income

income tax is accounted for in accordance with Accounting Standard (AS-22) - "Accounting for Taxes on income". Current Tax is calculated on the taxable income using prevailing tax rate and applicable tax laws.

Deferred tax is provided and recognized on timing differences between taxable income and accounting income subject to prudential consideration.

Deferred tax assets on unabsorbed depreciation and carry forward losses are not recognized unless there is a virtual certainty about availability of future taxable income to realize such assets.

provisions, Contingent Liabilities and Contingent Assets provisions are recognized when there is a present legal or statutory obligation as a result of past events and where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

Contingent Assets are not recognized in the Financial Statements.

Notes to the Balance Sheet and Statement of Profit & Loss

1. SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation of financial statements

The Financial Statements are prepared on accrual basis under the historical cost convention (except where impairment is made and revaluation is carried out) on the basis of going concern and in accordance with the provisions of the Companies Act, 2013 (''the Act'') and Accounting Standards specified under section 133 of''the Act'' read with Rule 7 of the Companies (Accounts) Rules, 2014 and accounting principles generally accepted in India. Accounting policies unless specifically stated to be otherwise, are consistent and are in consonance with generally accepted accounting principles.

Use of Estimates

In preparing the Financial Statements in conformity with accounting principles generally accepted in India, Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of Financial Statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognized in the period the same is determined.

Fixed Assets

Tangible Fixed Assets other than leasehold building and those, which have been revalued, are stated at cost net of impairment loss, if any, less depreciation/amortization. Cost represents expenses relating to acquisition and installation of Fixed Assets are capitalized till the assets are put to use. Capital work-in-progress includes expenses relating to construction of Building, not ready for its intended use as on the close of the reported period.

Impairment of Assets

Impairment is ascertained at each Balance Sheet date in respect of the Company’s fixed assets. An impairment loss is recognized whenever the carrying amount of an asset or cash generating unit exceeds its recoverable amount. Depreciation / Amortization

(i) The Company has provided Depreciation on Straight Line Method as per the requirement of Schedule II of the Companies Act, 2013.

(ii) Depreciation on incremental value of fixed assets due to revaluation is provided on straight-line basis with respect to technically evaluated, remaining useful life of the assets.

(iii) Leasehold Building is being amortized over the lease period.

Investments

Long Term Investments are stated at cost less provision for diminution in value other than temporary, if any. Current investments are valued at cost or market price or realizable value whichever is lower. Dividend is accounted for as and when the right to receive the same is established.

Foreign Currency Transaction Transactions in foreign currencies are accounted for at the exchange rate prevailing on the date of the transaction. Foreign currency assets and liabilities are translated at

exchange rates prevailing at the year end. The loss or gain thereon and also on the exchange differences on settlement of the foreign currency transaction during the year are recognized in the Statement of Profit and Loss.

Revenue Recognition

Sales are recognized on passing of the property in goods as per the terms of sales. Claims, commission and service charges to the extent considered realizable have been accounted for on ascertainment of amounts thereof. Interest is accrued and recognized on time basis and determined by contractual rate of interest.

Employee Benefits

Short term employee benefits is recognized as expense in the Statement of Profit and Loss of the year in which related service is rendered. Post employment and other long term employee benefits are provided in the accounts in the following manner:

i) Gratuity (Defined Benefit Plan): The Company has a Gratuity Fund administered by the Trustees, which is independent of the Company''s finance. The liability in respect of Gratuity has been determined by actuarial valuation following Projected Unit Credit Method.

ii) Leave Encashment : According to the prevailing practice of the Company, the employees are allowed to enjoy the leave within the year. No encashment of leave is allowed.

iii) Provident Fund (Defined Contribution Scheme) : Accounted for on accrual basis based on the monthly contribution made to the appropriate authorities.

Proposed Dividend

Dividend recommended by the Board of Directors is provided for in the accounts, pending shareholders ‘approval. Taxes on Income

Income tax is accounted for in accordance with Accounting Standard (AS-22) - “Accounting for Taxes on Income". Deferred tax is provided and recognized on timing differences between taxable income and accounting income subject to prudential consideration.

Deferred tax assets on unabsorbed depreciation and carry forward losses are not recognized unless there is a virtual certainty about availability of future taxable income to realise such assets.

Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when there is a present legal or statutory obligation as a result of past events and where it is probable that there willbe outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for. Contingent Assets are not recognized in the Financial Statements.

2.1.1. There has been no change / movement in the number of outstanding shares as at the beginning and at the end of our reporting period.

2.1.2 The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity is entitled to one vote per share. The Company may declare and pay dividends. The dividend ,if any proposed by the Board of Directors of the Company is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in proportion to the number of equity shares held by Equity Shareholders.

2.1.3 Equity shares in the Company held by each shareholder holding more than 5% Equity Shares.

Basis of preparation of financial statements

The Financial Statements are prepared on accrual basis under the historical cost convention (except where impairment is made and revaluation is carried out) on the basis of going concern and in accordance with the provisions of the Companies Act, 2013 (''the Act'') and Accounting standards specified under section 133 of ''the Act'' read with Rule 7 of the Companies (Accounts) Rules, 2014 and accounting principles generally accepted in India. Accounting policies unless specifically stated to be otherwise, are consistent and are in consonance with generally accepted accounting principles.

Use of Estimates

In preparing the Financial Statements in conformity with accounting principles generally accepted in India, Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of Financial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognised in the period the same is determined.

fixed Assets

Tangible Fixed Assets other than leasehold building and those, which have been revalued, are stated at cost net of impairment loss, if any, less depreciation/amortisation. Cost represents expenses relating to acquisition and installation of Fixed Assets are capitalised till the assets are put to use.

Capital work-in-progress includes expenses relating to construction of Building, not ready for its intended use.

Impairment of Assets

Impairment is ascertained at each Balance Sheet date in respect of the Company''s fixed assets. An impairment loss is recognised whenever the carrying amount of an asset or cash generating unit exceeds its recoverable amount.

Depreciation

(i) Effective from April 1,2014, the Company has charged Depreciation based on the revised remaining useful life of the assets as per the requirement of Schedule II of the Companies Act, 2013.

(ii) Depreciation on incremental value of fixed assets due to revaluation is provided on straight-line basis with respect to technically evaluated, remaining useful life of the assets.

Investments

Long Term Investments are stated at cost less provision for diminution in value other than temporary, if any. Current investments are valued at cost or market price or realisable value whichever is lower.

Foreign Currency Transaction

Transactions in foreign currencies are accounted for at the exchange rate prevailing on the date of the transaction. Foreign currency assets and liabilities are translated at exchange rates prevailing at the year end. The loss or gain thereon and also on the exchange differences on settlement of the foreign currency transaction during the year are recognised in the Statement of Profit and Loss.

Revenue Recognition

Sales are recognised on passing of the property in goods as per the terms of sales. Claims, commission and service charges to the extent considered realisable have been accounted for on ascertainment of amounts thereof. Interest is accrued and recognised on time basis and determined by contractual rate of interest.

Employee Benefits

Short term employee benefits is recognized as expense in the Statement of Profit and Loss of the year in which related service is rendered. post employment and other long term employee benefits are provided in the accounts in the following manner :

i) Gratuity (Defined Benefit Plan) : The Company has a Gratuity Fund administered by the Trustees, which is independent of the Company''s finance. The liability in respect of Gratuity has been determined by actuarial valuation following Projected Unit Credit Method.

ii) Leave Encashment : According to the prevailing practice of the Company, the employees are allowed to enjoy the leave within the year. No encashment of leave is allowed.

iii) Provident Fund (Defined Contribution Scheme) : Accounted for on accrual basis based on the monthly contribution made to the appropriate authorities.

Proposed Dividend

Dividend recommended by the Board of Directors is provided for in the accounts, pending shareholders'' approval.

Taxes on income

Income tax is accounted for in accordance with Accounting Standard (AS-22) - "Accounting for Taxes on income". Deferred tax is provided and recognised on timing differences between taxable income and accounting income subject to prudential consideration.

Deferred tax assets on unabsorbed depreciation and carry forward losses are not recognized unless there is a virtual certainty about availability of future taxable income to realise such assets.

Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when there is a present legal or statutory obligation as a result of past events and where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities are recognised only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

Contingent Assets are not recognized in the Financial Statements.

Basis of preparation of financial statements

The accounts have been prepared under the historical cost convention in accordance with the provisions of the Companies Act, 1956 and mandatory accounting standards notified by the Companies (Accounting Standards) Rules 2006. Accounting policies unless specifically stated to be otherwise, are consistent and are in consonance with generally accepted accounting principles.

Use of Estimates

The preparation of financial statements require management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities and assets as at the Balance Sheet date and the reported amounts of income and expenses during the year.

Difference between the actual results and the estimates are recognized in the year in which the results are known/materialized.

Fixed Assets

Fixed Assets other than those, which have been revalued, are stated at cost. Expenses relating to acquisition and installation of Fixed Assets are capitalised till the assets are put to use. Capital-work-in-progress includes expenses relating to construction of Building.

Impairment

Fixed Assets are reviewed at each Balance Sheet date for impairment. In case events and circumstances indicate any impairment, recoverable amount of fixed assets is determined. An impairment loss is recognized, whenever the carrying amounts of assets either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The recoverable amount is the greater of assets net selling price or its value in use. In assessing the value in use, the estimated future cash flows from the use of assets are discounted to their present value at appropriate rate. An impairment loss is reversed if there has been change in the recoverable amount and such loss either no longer exists or has decreased. Impairment loss/reversal thereof is adjusted to the carrying value of the respective assets, which in case of CGU, are allocated to its assets on a prorata basis.

Depreciation

(i) Depreciation on original cost of fixed assets acquired/installed upto 15th December, 1993 has been provided on straight line method at the rates prevailing at the time of acquisition /installation and on assets acquired after the aforesaid date at the rates specified in schedule XIV to Companies Act, 1956.

(ii) Depreciation on incremental value of fixed assets due to revaluation is provided on straight-line basis with respect to technically evaluated, remaining useful life of the assets.

Investments

Long Term Investments are stated at cost less provision for diminution in value other than temporary, if any. Current investments are valued at cost or realisable value whichever is lower.

Inventories

Inventories are valued at lower of the cost or net realisable value. Cost of inventories is generally determined on ''First in First out ''basis.

Foreign Currency Transaction

Transactions in foreign currencies are accounted for at the exchange rate prevailing on the date of the transaction. Foreign currency assets and liabilities are translated at exchange rates prevailing at the year end. The loss or gain thereon and also on the exchange differences on settlement of the foreign currency transaction during the year are recognized in the profit and loss account.

Income

Sales are recognised on passing of the property in goods as per the terms of sales.

Claims, commission and service charges to the extent considered realisable have been accounted for on ascertainment of amounts thereof. Interest income is recognized on time proportion method.

Employee Benefits

Employee benefits viz. Provident, Superannuation and Pension Funds, Leave Encashment are accounted for on accrual basis. The year-end liability in respect of gratuity is determined on the basis of actuarial valuation. Contribution to Provident, Superannuation, Pension and Gratuity Funds are made to the appropriate authorities. Liability for leave encashment is accounted for on accrual basis as per Management''s estimate and not on actuarial valuation basis.

Income Tax

Provision for tax is made for both current and deferred tax. Current Tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing difference which are capable of reversal in subsequent periods are recognised using tax rates and tax laws which have been enacted. Deferred Tax Assets are recognized and carried forward only to the extent there is virtual certainty that assets will be realised in future.

Provisions, Contingencies and Contingent Assets

Provisions are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

Contingent Assets are neither recognized nor disclosed in the financial statement. Contingent liabilities are not provided for and are disclosed by way of notes.

Basis of preparation of financial statements

The accounts have been prepared under the historical cost convention in accordance with the provisions of the Companies Act, 1956 and mandatory accounting standards notified by the Companies (Accounting Standards) Rules 2006. Accounting policies unless specifically stated to be otherwise, are consistent and are in consonance with generally accepted accounting principles.

Use of Estimates

The preparation of financial statements require management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities and assets as at the Balance Sheet date and the reported amounts of income and expenses during the year.

Difference between the actual results and the estimates are recognized in the year in which the results are known/materialized.

Fixed Assets

Fixed Assets other than those, which have been revalued, are stated at cost. Expenses relating to acquisition and installation of Fixed Assets are capitalised till the assets are put to use. Capital-work-in-progress includes expenses relating to construction of Building.

Impairment

Fixed Assets are reviewed at each Balance Sheet date* for impairment. In case events and circumstances indicate any impairment, recoverable amount of fixed assets is determined. An impairment loss is recognized, whenever the carrying amounts of assets either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The recoverable amount is the greater of assets net selling price or its value in use. In assessing the value in use, the estimated future cash flows from the use of assets are discounted to their present value at appropriate rate. An impairment loss is reversed if there has been change in the recoverable amount and such loss either no longer exists or has decreased. Impairment loss/reversal thereof is adjusted to the carrying value of the respective assets, which in case of CGU, are allocated to its assets on a prorata basis.

Depreciation

(i) Depreciation on original cost of fixed assets acquired/installed upto 15th December, 1993 has been provided on straight line method at the rates prevailing at the time of acquisition /installation and on assets acquired after the aforesaid date at the rates specified in schedule XIV to Companies Act, 1956.

00 Depreciation on incremental value of fixed assets due to revaluation is provided on straight-line basis with respect to technically evaluated, remaining useful life of the assets.

Investments

Long Term Investments are stated at cost less provision for diminution in value other than temporary, if any.

Current investments are valued at cost or realisable value whichever is lower.

Inventories

Inventories are valued at lower of the cost or net realisable value. Cost of inventories is generally determined on "First in First out 'basis.

Foreign Currency Transaction

Transactions in foreign currencies are accounted for at the exchange rate prevailing on the date of the transaction. Foreign currency assets and liabilities are translated at exchange rates prevailing at the year end. The loss or gain thereon and also on the exchange differences on settlement of the foreign currency transaction during the year are recognized in the profit and loss account.

Income

Sales are recognised on passing of the property in goods as per the terms of sales. Claims, commission and service charges to the extent considered realisable have been accounted for on ascertatnwsnant of amounts thereof. Interest income is recognized on time proportion method.

Retirement Benefits

Retirement benefits to employees viz. Provident, Superannuation and Pension Funds, Leave Encashment are accounted for on accrual basis. The year-end liability in respect of gratuity is determined on the basis of actuarial valuation. Contribution to Provident, Superannuation, Pension and Gratuity Funds are made to the appropriate authorities. Liability for leave encashment is accounted for on accrual basis as per Management's estimate.

Income Tax

Provision for tax is made for both current and deferred tax. Current Tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing difference which are capable of reversal in subsequent periods are recognised using tax rates and tax laws which have been enacted. Deferred Tax Assets are recognized and carried forward only to the extent there is virtual certainty that assets will be realised in future.

Provisions, Contingencies and Contingent Assets

Provisions are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

Contingent Assets are neither recognized nor disclosed in the financial statement. Contingent liabilities are not provided for and are disclosed by way of notes,

Basis of preparation of financial statements

The accounts have been prepared under the historical cost convention in accordance with the provisions of the Companies Act, 1956 and mandatory accounting standards notified by the Companies (Accounting Standards) Rules 2006. Accounting policies unless specifically stated to be otherwise, are consistent and are in consonance with generally accepted accounting principles.

Use of Estimates

The preparation of financial statements require management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities and assets as at the Balance Sheet date and the reported amounts of income and expenses during the year. Contingencies are recorded when it is probable that a liability will be incurred and the amounts can be reasonably estimated. Difference between the actual results and the estimates are recognized in the year in which the results are known/materialized.

Fixed Assets

Fixed Assets other than those, which have been revalued, are stated at cost. Expenses relating to acquisition and installation of Fixed Assets are capitalised till the assets are put to use. Capital-work-in-progress includes expenses relating to construction of Building.

Impairment

Fixed Assets are reviewed at each Balance Sheet date for impairment, In case events and circumstances indicate any impairment, recoverable amount of fixed assets is determined. An impairment loss is recognized, whenever the carrying amounts of assets either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount, The recoverable amount is the greater of assets net selling price or its value in use. In assessing the value in use, the estimated future cash flows from the use of assets are discounted to their present value at appropriate rate. An impairment loss is reversed if there has been change in the recoverable amount and such loss either no longer exists or has decreased. Impairment loss/reversal thereof is adjusted to the carrying value of the respective assets, which in case of CGU, are allocated to its assets on a prorata basis.

Depreciation

(i) Depreciation on original cost of fixed assets acquired/installed upto 15th December, 1993 has been provided on straight line method at the rates prevailing at the time of acquisition /installation and on assets acquired after the aforesaid date at the rates specified in schedule XIV to Companies Act, 1956.

(ii) Depreciation on incremental value of fixed assets due to revaluation is provided on straight-line basis with respect to technically evaluated, remaining useful life of the assets.

Investments

Long Term Investments are stated at cost less provision for diminution in value other than temporary, if any.

Current investments are valued at cost or realisable value whichever is lower.

Inventories

Inventories are valued at lower of the cost or net realisable value. Cost of inventories is generally determined on First in First out basis.

Foreign Currency Transaction

Transactions in foreign currencies are accounted for at the exchange rate prevailing on the date of the transaction. Foreign currency assets and liabilities are translated at exchange rates prevailing at the year end. The loss or gain thereon and also on the exchange differences on settlement of the foreign currency transaction during the year are recognized in the profit and loss account, except in the cases of fixed assets acquired from a country outside India, in which case, these are adjusted to the cost of respective fixed assets

Income

Sales are recognised on passing of the property in goods as per the terms of sales. Claims, commission and service charges to the extent considered realisable have been accounted for on ascertainment of amounts thereof. Interest income is recognized on time proportion method.

Retirement Benefits

Retirement benefits to employees viz. Provident, Superannuation and Pension Funds, Leave Encashment are accounted for on accrual basis. The year-end liability in respect of gratuity is determined on the basis of actuarial valuation. Contribution to Provident, Superannuation, Pension and Gratuity Funds are made to the appropriate authorities. Liability for leave encashment is accounted for on accrual basis as per Managements estimate.

Income Tax

Provision for tax is made for both current and deferred tax. Current Tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing difference which are capable of reversal in subsequent periods are recognised using tax rates and tax laws which have been enacted. Deferred Tax Assets are recognized and carried forward only to the extent there is virtual certainty that assets will be realised in future.

Provisions, Contingencies and Contingent Assets

Provisions are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

Contingent Assets are neither recognized nor disclosed in the financial statement. Contingent liabilities are not provided for and are disclosed by way of notes.

Basis of preparation of financial statements

The accounts have been prepared under the historical cost convention in accordance with the provisions of the Companies Act, 1956 and mandatory accounting standards issued by the Institute of Chartered Accountants of India. Accounting policies unless specifically stated to be otherwise, are consistent and are in consonance with generally accepted accounting principles.

Use of Estimates

The preparation of financial statements require management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities and assets as at the Balance Sheet date and the reported amounts of Income and expenses during the year,

Contingencies are recorded when it is probable that a liability will be incurred and the amounts can be reasonably estimated. Difference between the actual results and the estimates are recognized in the year in which the results are known/materialized.

Fixed Assets

Fixed Assets other than those, which have been revalued, are stated at cost. Expenses relating to acquisilion and installation of Fixed Assets are capitalised till the assets are put to use. Capital-work-in-progress includes expenses relating to construction of Building.

Impairment

Fixed Assets are reviewed at each Balance Sheet date for impairment. In case events and circumstances indicate any impairment, recoverable amount of fixed assets is determined. An impairment loss is recognized, whenever the carrying amounts of assets either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The recoverable amount is the greater of assets net selling price or its value in use. In assessing the value in use, the estimated future cash flows from the use of assets are discounted to their present value at appropriate rate. An impairment loss is reversed if there has been change in the recoverable amount and such loss either no longer exists or has decreased, Impairment loss/reversal thereof is adjusted to the carrying value of the respective assets, which in case of CGU, are allocated to its assets on a prorata basis.

Depreciation

(i) Depreciation on original cost of fixed assets acquired/installed upto 15th December, 1993 has been provided on straight line method at the rates prevailing at the time of acquisition /installation and on assets acquired after the aforesaid date at the rates specified in schedule XIV to Companies Act, 1956

(ii) Depreciation on incremental value of fixed assets due to revaluation is provided on straight-line basis with respect to technically evaluated, remaining useful life of the assets.

Investments

Long Term Investments are stated at cost less provision for diminution in value other than temporary, if any Current investments are valued at cost or realisable value whichever is lower.

Inventories

Inventories are valued at lower of the cost or net realisable value. Cost of inventories is generally determined on "First in First out" basis.

Foreign Currency Transaction

Transactions in foreign currencies are accounted for at the exchange rate prevailing on the date of the transaction. Foreign currency assets and liabilities are translated at exchange rates prevailing at the year end. The loss or gain thereon and also on the exchange differences on settlement of the foreign currency transaction during the year are recognized in the profit and loss account, except in the cases of fixed assets acquired from a country outside India, in which case, these are adjusted to the cost of respective fixed assets.

Income

Sales are recognised on passing of the property in goods as per the terms of sales. Claims, commission and service charges to the extent considered realisable have been accounted for on ascertainment of amounts thereof. Interest income is recognized on time proportion method.

Retirement Benefits

Retirement benefits to employees viz. Provident, Superannuation and Pension Funds, Leave Encashment are accounted for on accrual basis. The year-end liability in respect of gratuity is determined on the basis of actuarial valuation. Contribution to Provident, Superannuation, Pension and Gratuity Funds are made to the appropriate authorities. Liability for leave encashment is accounted for on accrual basis as per Managements estimate.

Income Tax

Provision for tax is made for both current and deferred tax. Current Tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing difference which are capable of reversal in subsequent periods are recognised using tax rates and tax law:. which have been enacted. Deferred Tax Assets are recognized and carried forward only to the extent there is virtual certainty that assets will be realised in future.

Provisions, Contingencies and Contingent Assets

Provisions are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

Contingent Assets are neither recognized nor disclosed in the financial statement. Contingent liabilities are not provided for and are disclosed by way of notes.