Bombay Wire Ropes Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

SIGNIFICANT ACCOUNTING POLICIES

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of Bombay Wire Ropes Ltd are prepared in accordance with the Indian Accounting Standards
(Ind AS) under the Financial assumptions which are not applicable for Going concern basis, as the company has
discontinued its operations. The Ind AS are prescribed under section 133 of the Companies Act, 2013, read with
rule 7 of Companies (Account) Rules 2014, other pronouncements of Institute of Chartered Accountants of India, the
provisions of Companies Act, 2013 and guidelines issued by Securities and Exchange Board of India.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The Company has prepared these financial statements as per the format prescribed in Schedule III to The Companies
Act, 2013.

1.2 USE OF ESTIMATES

The preparation of the financial statements in conformity with the Ind AS requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as on
the date of the financial statements and the reported amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in the period in which the results are known/
materialized.

1.3 PROPERTY PLANT AND EQUIPMENTS (PPE)

Property, Plant and Equipments are stated at cost of acquisition (net of Cenvat and GST wherever applicable) or
construction less accumulated depreciation and impairment loss, if any. Cost includes any directly attributable cost of
bringing each asset to its working condition for intended use.

Assets under installation or under construction as at balance sheet date are shown as Capital Work in Progress
together with project expenses.

Ind AS 16 “Property, Plant and Equipment” requires the cost of an item of property, plant and equipment to include the
initial estimate of the costs of dismantling/decommissioning and removing the asset and restoring the site on which it
is located. Ind AS requires the liability, both initially and subsequently, to be measured at the amount required to settle
the present obligation at the end of the reporting period, reflecting a current market-based discount rate.

Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion &
impairment, if any.

1.4 DEPRECIATION AND AMORTISATION

a) Depreciation on Fixed Assets is provided on Straight Line method in accordance with the rates as specified in
Schedule II to the Companies Act, 2013 (as amended).

b) Depreciation/Amortization on assets added, sold or discarded during the year has been provided on pro-rata
basis.

1.5 FINANCIAL ASSETS

The Company classifies its financial assets in the following measurement categories:

(1) Those to be measured subsequently at fair value (either through other comprehensive income, or through the
Statement of Profit and Loss), and

(2) Those measured at amortised cost.

The classification depends on the Company’s business model for managing the financial assets and the contractual
terms of the cash flows.

At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial
assets carried at fair value through the Profit and Loss are expensed in the Statement of Profit and Loss.

The Company measures the expected credit loss associated with its assets based on historical trend, industry
practices and the business environment in which the entity operates or any other appropriate basis. The impairment
methodology applied depends on whether there has been a significant increase in credit risk.

1.6 INVENTORIES

a) Inventories (other than by-products) are valued at lower of cost and net realizable value after providing for
obsolescence, if any. Cost of inventory comprises of purchase price, cost of conversion and other cost that have
been incurred in bringing the inventories to their respective present location and condition. Interest costs are not
included in value of inventories. The cost of Inventories is computed on weighted average basis.

b) Assets identified and technically evaluated as obsolete and held for disposal are valued at their estimated net
realizable value.

c) By products are valued at net realizable value.

1.7 REVENUE RECOGNITION

a) Sale of Goods is recognised at the time of transfer of substantial risk and rewards of ownership to the buyer for a
consideration, net of discounts.

b) Gross Turnover includes excise duty but excludes sales tax / GST.

c) Dividend Income is recognised when the Company’s right to receive dividend is established.

d) Interest Income is recognised on time proportion basis taking into account the amount outstanding and rate
applicable.

e) All Other Income is accounted for on accrual basis.

1.8 EXPENSES

All expenses are accounted for on accrual basis.

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of Bombay Wire Ropes Ltd are prepared in accordance with the Indian Accounting Standards (Ind AS) under the Financial assumptions which are not applicable for Going concern basis, as the company has discontinued its operations. The Ind AS are prescribed under section 133 of the Companies Act, 2013, read with rule 7 of Companies (Account) Rules 2014, other pronouncements of Institute of Chartered Accountants of India, the provisions of Companies Act, 2013 and guidelines issued by Securities and Exchange Board of India.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The Company has prepared these financial statements as per the format prescribed in Schedule III to The Companies Act, 2013.

1.2 USE OF ESTIMATES

The preparation of the financial statements in conformity with the Ind AS requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

1.3 PROPERTY PLANT AND EQUIPMENTS (PPE)

Property, Plant and Equipments are stated at cost of acquisition (net of Cenvat and GST wherever applicable) or construction less accumulated depreciation and impairment loss, if any. Cost includes any directly attributable cost of bringing each asset to its working condition for intended use.

Assets under installation or under construction as at balance sheet date are shown as Capital Work in Progress together with project expenses.

Ind AS 16 “Property, Plant and Equipment” requires the cost of an item of property, plant and equipment to include the initial estimate of the costs of dismantling/decommissioning and removing the asset and restoring the site on which it is located. Ind AS requires the liability, both initially and subsequently, to be measured at the amount required to settle the present obligation at the end of the reporting period, reflecting a current market-based discount rate.

Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion & impairment, if any.

1.4 DEPRECIATION AND AMORTISATION

a) Depreciation on Fixed Assets is provided on Straight Line method in accordance with the rates as specified in Schedule II to the Companies Act, 2013 (as amended).

b) Depreciation/Amortization on assets added, sold or discarded during the year has been provided on pro-rata basis.

1.5 FINANCIAL ASSETS:

The Company classifies its financial assets in the following measurement categories:

(1) Those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

(2) Those measured at amortised cost.

The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial assets carried at fair value through the Profit and Loss are expensed in the Statement of Profit and Loss.

The Company measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

1.6 INVENTORIES

a) Inventories (other than by-products) are valued at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventory comprises of purchase price, cost of conversion and other cost that have been incurred in bringing the inventories to their respective present location and condition. Interest costs are not included in value of inventories. The cost of Inventories is computed on weighted average basis.

b) Assets identified and technically evaluated as obsolete and held for disposal are valued at their estimated net realizable value.

c) By products are valued at net realizable value.

1.7 REVENUE RECOGNITION

a) Sale of Goods is recognised at the time of transfer of substantial risk and rewards of ownership to the buyer for a consideration, net of discounts.

b) Gross Turnover includes excise duty but excludes sales tax / GST.

c) Dividend Income is recognised when the Company’s right to receive dividend is established.

d) Interest Income is recognised on time proportion basis taking into account the amount outstanding and rate applicable.

e) All Other Income is accounted for on accrual basis.

1.8 EXPENSES

All expenses are accounted for on accrual basis.

1.9 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

a) Provision is recognized in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered probable.

b) A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the Balance Sheet date.

c) Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

d) Reimbursement expected in respect of expenditure to settle a provision is recognized only when it is virtually certain that the re-imbursement will be received.

e) A Contingent Asset is not recognized in the accounts.

1.10 IMPAIRMENT OF ASSETS

Impairment loss, if any, is recognized to the extent, the carrying amount of assets exceed their recoverable amount. Recoverable amount is higher of an asset’s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Impairment Losses recognized in prior years are reversed when there is an indication that the impairment losses recognized no longer exist or have decreased. Such reversals are recognized as an increase in carrying amount of assets to the extent that it does not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized in previous years. After impairment, depreciation or amortization on assets is provided on the revised carrying amount of the respective asset over its remaining useful life.

1.11 FOREIGN CURRENCY TRANSACTION

Foreign currency transactions are accounted at the exchange rates prevailing on the date of transactions.

Foreign currency current assets and current liabilities outstanding at the balance sheet date are translated at the exchange rate prevailing on that date and the resultant gain or loss is recognized in the Profit & Loss account.

Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss Account except in case of long term liabilities, where they relate to acquisition or construction of fixed assets, in which case they are adjusted to the carrying cost of such assets in accordance with the exemption under Para D13AA of Ind AS 101.

1.12 BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of a qualifying asset is capitalised as part of the cost of such asset till such time the asset is ready for its intended use. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss in the period in which they are incurred.

1.13 INSURANCE CLAIM

Insurance claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

1.14 EMPLOYEE BENEFITS

a) Contribution to Provident Fund is accounted for on accrual basis. The Provident Fund contributions are made to recognised Provident Fund.

b) Company’s defined contributions made to Pension Fund of Government and Superannuation Scheme of Life Insurance Corporation of India are charged to the Profit and Loss account on accrual basis.

c) Contribution to Gratuity Fund and provision for Leave Encashment is based on actuarial valuation carried out as on the Balance Sheet date as per Projected Unit Credit Method.

The Company recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability. Gains or losses through re-measurements of the net defined benefit liability/(asset) are recognized in other comprehensive income.

1.15 TAXES ON INCOME:

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, when there is a brought forward loss or unabsorbed depreciation under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be realized.

1.16 EARNINGS PER SHARE:

Basic earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extra ordinary items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of any extra ordinary items, if any) by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares.

1.17 FINANCIAL LIABILITY:

Financial Liabilities are subsequently carried at amortized cost using the effective interest method, except for loans where the difference between IRR and normal rate of interest was immaterial.

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets upto the date when they are ready for their intended use and other borrowing costs are charged to Profit & Loss account.

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Mar 31, 2014

1.1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India historical cost convention on accrual basis.

GAAP comprises mandatory Companies (Accounting Standards) Rules, 2006 notified by the Central Government of India under Section 211 (3C) of the Companies Act, 1956, other pronouncements of the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

Accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or a revision to an existing Accounting Standard requires a change in the accounting policy hitherto in use.

All assets and liabilities have been classified as current or non-current as per the normal operating cycle of the Company and other criteria set out in the Schedule VI to the Companies Act, 1956. Based on the nature of operations and time between the procurement of raw material and realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities

1.2. USE OF ESTIMATES:

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenditure during the period. Actual results might differ from the estimates. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

1.3 FIXED ASSETS, INTANGIBLE ASSETS AND CAPITAL WORK-IN-PROGRESS:

a) Fixed Assets are stated at their original cost (net of accumulated depreciation and impairments). Cost, (net of cenvat) includes acquisition price, import duties, other non-refundable taxes and levies, attributable expenses and pre-operational expenses including finance charges, wherever applicable.

b) Intangible Assets expected to provide future enduring economic benefits are recorded at the consideration paid for acquisition of such assets and are carried at cost of acquisition less accumulated amortization and impairment, if any.

c) Expenditure during Construction Period:

Expenditure (including financing cost relating to borrowed funds for construction or acquisition of fixed assets) incurred on projects under implementation are treated as Pre-operative Expenses pending allocation to the assets and are shown under "Capital Work-In-Progress". Capital Work-In-Progress is stated at the amount expended up to the date of Balance Sheet for the cost of fixed assets that are not yet ready for their intended use.

1.4. DEPRECIATION AND AMORTISATION:

a) Depreciation on Fixed Assets is provided on Straight Line method in accordance with the rates as specified in Schedule XIV to the Companies Act, 1956 (as amended).

b) Depreciation/Amortization on assets added, sold or discarded during the year has been provided on pro-rata basis.

c) Computer Software (Acquired) are amortized on straight line basis over a period of five years.

1.5. INVESTMENTS:

Trade Investments are the investments made for or to enhance the Company''s business interest.

Investments are either classified as current or long-term based on Management''s intention at the time of purchase. Long-term investments are carried at cost less provisions for diminution recorded to recognize any decline, other than temporary, in the carrying value of each investment. Current investments are carried at the lower of cost and fair value, category wise. Cost for overseas investments comprises of the Indian Rupee value of the consideration paid for the investment translated at the exchange rate prevalent at the date of investment. Cost includes acquisition charges such as brokerage, fee and duties.

1.6. INVENTORIES:

a) Inventories (other than by-products) are valued at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventory comprises of purchase price, cost of conversion and other cost that have been incurred in bringing the inventories to their respective present location and condition. Interest costs are not included in value of inventories. The cost of Inventories is computed on weighted average basis.

b) Assets identified and technically evaluated as obsolete and held for disposal are valued at their estimated net realizable value.

c) By products are valued at net realizable value.

1.7. REVENUE RECOGNITION:

a) Sale of Goods is recognised at the time of transfer of substantial risk and rewards of ownership to the buyer for a consideration, net of discounts.

b) Gross Turnover includes excise duty but excludes sales tax / value added tax.

c) Dividend Income is recognised when the Company''s right to receive dividend is established.

d) Interest Income is recognised on time proportion basis taking into account the amount outstanding and rate applicable.

e) All Other Income is accounted for on accrual basis.

1.8. EXPENSES:

All expenses are accounted for on accrual basis.

1.9. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

a) Provision is recognized in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered probable.

b) A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the balance sheet date.

c) Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

d) Reimbursement expected in respect of expenditure to settle a provision is recognized only when it is virtually certain that the re-imbursement will be received.

e) A Contingent Asset is not recognized in the accounts.

1.10. IMPAIRMENT OF ASSETS:

Impairment loss, if any, is recognized to the extent, the carrying amount of assets exceed their recoverable amount. Recoverable amount is higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Impairment Losses recognized in prior years are reversed when there is an indication that the impairment losses recognized no longer exist or have decreased. Such reversals are recognized as an increase in carrying amount of assets to the extent that it does not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized in previous years.

After impairment, depreciation or amortization on assets is provided on the revised carrying amount of the respective asset over its remaining useful life.

1.11. FOREIGN CURRENCY TRANSACTION:

a) Transactions in foreign currency are initially recorded at the exchange rate at which the transaction is carried out.

b) Monetary Assets and Liabilities related to foreign currency transactions remaining outstanding at the year end are translated at the year end rate.

Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

c) In case of items which are covered by forward exchange contracts, the difference between the year end rate and the rate on the date of the contract is recognised as exchange difference. The premium or discount on forward exchange contracts is recognised over the period of the respective contract.

d) Any income or expense on account of exchange difference either on settlement or on translation at the year end is recognised in the Statement of Profit and Loss.

1.12. BORROWING COSTS:

Borrowing costs that are attributable to the acquisition or construction of a qualifying asset is capitalised as part of the cost of such asset till such time the asset is ready for its intended use. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss in the period in which they are incurred.

1.13. INSURANCE CLAIM:

Insurance claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

1.14. EMPLOYEE BENEFITS:

a) Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss for the year in which the related service is rendered.

b) Long term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employees have rendered services. The expense is recognized at the present value of the amount payable as per actuarial valuations. However, funding of gratuity and leave encashment benefit on actual valuation has not been made. Actuarial gains and losses in respect of such benefits are recognized in the Statement of Profit and Loss.

1.15. TAXES ON INCOME:

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, when there is a brought forward loss or unabsorbed depreciation under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be realized.

Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in the guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement.

The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal Income Tax during the specified period.

1.16. EARNINGS PER SHARE:

Basic earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extra ordinary items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of any extra ordinary items, if any) by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares.

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Mar 31, 2013

1.1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India under the historical cost convention on accrual basis.

GAAP comprises mandatory Companies (Accounting Standards) Rules, 2006 notified by the Central Government of India under Section 211(3C) of the Companies Act, 1956, other pronouncements of the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

Accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or a revision to an existing Accounting Standard requires a change in the accounting policy hitherto in use.

All assets and liabilities have been classified as current or non-current as per the normal operating cycle of the Company and other criteria set out in the Schedule VI to the Companies Act, 1956. Based on the nature of operations and time between the procurement of raw material and realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities ''

1.2. USE OF ESTIMATES :

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenditure during the period. Actual results might differ from the estimates. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

1.3 FIXED ASSETS, INTANGIBLE ASSETS AND CAPITAL WORK-IN-PROGRESS :

a) Fixed Assets are stated at their original cost (net of accumulated depreciation and impairments). Cost, (net of convert) includes acquisition price, import duties, other non-refundable taxes and levies, attributable expenses and pre-operational expenses including finance charges, wherever applicable.

b) Intangible Assets expected to provide future enduring economic benefits are recorded at the consideration paid for acquisition of such assets and are carried at cost of acquisition less accumulated amortization and impairment, if any.

c) Expenditure during Construction Period:

Expenditure (including financing cost relating to borrowed funds for construction or acquisition of fixed assets) incurred on projects under implementation are treated as Pre-operative Expenses pending allocation to them .

assets and are shown under "Capital Work-ln-Progress". Capital Work-ln-Progress is stated at the amount expended up to the date of Balance Sheet for the cost of fixed assets that are not yet ready for their intended use.

1.4. DEPRECIATION AND AMORTISATION :

a) Depreciation on fixed assets is provided on Straight Line method in accordance with the rates as specified in Schedule XIV to the Companies Act, 1956 (as amended).

b) Depreciation/Amortization on assets added, sold or discarded during the year has been provided on pro-rata basis.

c) Computer Software (Acquired) are amortized on straight line basis over a period of five years.

1.5. INVESTMENTS :

Trade Investments are the investments made for or to enhance the Company''s business interest.

Investments are either classified as current or long-term based on management''s intention at the time of purchase.

Long-term investments are carried at cost less provisions for diminution recorded to recognize any decline, other than temporary, in the carrying value of each investment. Current investments are carried at the lower of cost and fair value, category wise. Cost for overseas investments comprises of the Indian Rupee value of the consideration paid for the investment translated at the exchange rate prevalent at the date of investment. Cost includes acquisition charges such as brokerage, fee and duties.

1.6. INVENTORIES :

a) Inventories (other than by-products) are valued at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of purchase price, cost of conversion and other cost that have been incurred in bringing the inventories to their respective present location and condition. Interest costs are not included in value of inventories. The cost of Inventories is computed on a weighted average basis.

b) Assets identified and technically evaluated as obsolete and held for disposal are valued at their estimated net realizable value.

c) By products are valued at net realizable value.

1.7. REVENUE RECOGNITION :

a) Sale of Goods is recognized at the time of transfer of substantial risk and rewards of ownership to the buyer for a consideration, net of discounts.

b) Gross Turnover includes excise duty but excludes sales tax / value added tax.

c) Dividend Income is recognized when the Company''s right to receive dividend is established.

d) Interest Income is recognized on a time proportion basis taking into account the amount outstanding and rate applicable. .

e) All Other Income is accounted for on accrual basis.

1.8. EXPENSES :

All expenses are accounted for on an accrual basis.

1.9. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :

a) A provision is recognized in respect of obligations where, based on the evidence available, its existence at the date of the Balance Sheet date is considered probable.

b) A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the balance sheet date.

c) Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

d) Reimbursement expected in respect of expenditure to settle a provision is recognized only when it is virtually certain that the re-imbursement will be received.

e) A Contingent Asset is not recognized in the accounts.

1.10. IMPAIRMENT OF ASSETS :

Impairment loss, if any, is recognized to the extent, the carrying amount of assets exceed their recoverable amount. Recoverable amount is higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Impairment Losses recognized in prior years are reversed when there is an indication that the impairment losses recognized no longer exist or have decreased. Such reversals are recognized as an increase in carrying amount of assets to the extent that it does not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized in previous years.

After impairment, depreciation or amortization on assets is provided on the revised carrying amount of the respective asset over its remaining useful life.

b) Monetary Assets and Liabilities related to foreign currency transactions remaining outstanding at the yearend are translated at the yearend rate.

Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

c) In case of items which are covered by forward exchange contracts, the difference between the yearend rate and the rate on the date of the contract is recognized as exchange difference. The premium or discount on forward exchange contracts is recognized over the period of the respective contract.

d) Any income or expense on account of exchange difference either on settlement or on translation at the year end is recognized in the Statement of Profit and Loss.

1.12. BORROWING COSTS :

Borrowing costs that are attributable to the acquisition or construction of a qualifying asset is capitalized as part of the cost of such asset till such time the asset is ready for its intended use. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss in the period in which they are incurred.

1.13. INSURANCE CLAIM :

Insurance claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

1.14. EMPLOYEE BENEFITS : .

a) Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss for the year in which the related service is rendered.

b) Long term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employees have rendered services. The expense is recognized at the present value of the amount payable as per actuarial valuations. However, funding of gratuity and leave encashment benefit on actual valuation has not been made. Actuarial gains and losses in respect of such benefits are recognized in the Statement of Profit and Loss.

1.15. TAXES ON INCOME :

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, when there is a brought forward loss or unabsorbed depreciation under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be realized.

Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in the guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement.

The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal Income Tax during the specified period.

1.16. EARNINGS PER SHARE :

Basic earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extra ordinary items, if any) by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of any extra ordinary items, if any) by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares.

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Mar 31, 2012

(a) Basis of Accounting:

The Financial statements are prepared on an accrual basis of accounting following the historical cost convention in accordance with generally accepted accounting principles ("GAAP"), in compliance with the provisions of the Companies Act, 1956 and the Accounting Standards as specified in the Companies (Accounting Standards) Rules, 2006, prescribed by the Central Government under section 211 (3C) of the Act.

(b) Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reported period. The estimates and assumptions used in the accompanying financial statements are based upon Management's evaluation of the relevant facts and circumstances as on the date of financial statements. Actual results may differ from the estimates used in preparing the accompanying financial statements. Differences between the actual results and estimates are recognized in the period in which the results are known/materialize.

(c) Classification of Assets & Liabilities:

The Revised Schedule VI to the Companies Act 1956 requires assets and liabilities to be classified as either current or Non-current.

Previous Year Figures

The financial statements for the year ended 31st March, 2012 have been presented as per the Revised Schedule VI to the Companies Act, 1956. Accordingly, the previous year's figures have been reclassified to conform to this year's classification.

(d) Investments:

Short term investments are valued at cost or net asset value, whichever is lower.

For the purpose of arriving at profit/loss on sale of investments, the cost is determined on Weighted Average basis.

(e) Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

(f) Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

(g) Taxation:

Income taxes are accounted for in accordance with Accounting Standard (AS) - 22 "Accounting for taxes on income", notified under the Companies (Accounting Standards) Rules 2006. Income tax comprises both current and deferred tax.

Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence.

Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

(h) Fixed Assets :

Fixed assets are stated at cost less accumulated depreciation. The Company capitalises all costs relating to acquisition and installation of fixed assets.

(i) Depreciation:

Depreciation on fixed assets has not been provided for the year as the same are held for disposal in view of the wire rope factory having been closed.

(j) Retirement Benefits :

Contribution to the Provident Fund is made at a predetermined rate and charged to the Profit & Loss Account. Incremental liability for gratuity for the year/period is charged to revenue on the basis of actuarial valuation. Liability for employees leave encashment benefits is provided for on an accrual basis.

(k) Sales :

Sales are recorded at invoice value and inclusive of excise duties and export benefits but net of sales tax, returns and trade discount.

(I) Inventories :

Finished goods are valued at cost or market value, whichever is lower.

Stock-in-process is valued at raw material cost including other direct expenses, depreciation and appropriate portion of production and administration overheads.

Raw Material is valued at cost (FIFO Basis)

Stores & Spares are valued at cost (FIFO Basis)

Scrap is valued at estimated realisable value.

(m) Revenue Recognition :

Revenue in respect of insurance, other claims and interest, etc. is recognised only when it is reasonably certain that ultimate collection will be made.

(n) Modvat Credit :

Modvat Credit is accounted on the basis of materials received.

(o) Foreign Currency Transactions:

Transaction of foreign currency is respect of export sales are recorded at amounts actually realised.

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Mar 31, 2010

The Profit & Loss Account and Balance Sheet are prepared under the historical cost convention on accrual basis of accounting. ,

i) Fixed Assets :

Fixed assets are stated at cost less accumulated depreciation. The Company capitalises all costs relating to acquisition and installation of fixed assets.

ii) Depreciation:

Depreciation on fixed assets has not been provided for the year as the same are held for disposal in view of the wire rope factory having been closed.

iii) Investments:

Investments are stated at the cost of acquisition.

iv) Retirement Benefits :

Contribution to the Provident Fund is made at a predetermined rate and charged to the Profit & Loss Account. Incremental liability for gratuity for the year/period is charged to revenue on the basis of actuarial valuation. Liabil- ity for employees leave encashment benefits is provided for on an accrual basis.

v) Sales:

Sales are recorded at invoice value and inclusive of excise duties and export benefits but net of sales tax, returns and trade discount. vi) Inventories:

Finished goods are valued at cost or market value, whichever is lower.

Stock-in-process is valued at raw material cost including other direct expenses, depreciation and appropriate portion of production and administration overheads. Raw Material is valued at cost (FIFO Basis) Stores & Spares are valued at cost (FIFO Basis) Scrap is valued at estimated realisable value.

vii) Revenue Recognition :

Revenue in respect of insurance, other claims and interest, etc. is recognised only when it is reasonably certain that ultimate collection will be made.

viii) Modvat Credit:

Modvat Credit is accounted on the basis of materials received.

ix) Foreign Currency Transactions :

Transaction of foreign currency is respect of export sales are recorded at amounts actually realised.

x) Contingent Liabilities :

These are disclosed by way of notes to the Balance Sheet. Provision is made in the accounts in respect of those liabilities, which are likely to materialise after the year/period end and up to the finalisation of accounts and have a material effect on the position stated in the Balance Sheet.