Enterprise International Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1. Reporting Entity

Enterprise International Limited referred to as "the Company" is domiciled in India. The Company''s registered office is at "Malayalay", Unit No.2A(S), 2nd Floor, 3 Woodburn Park, Kolkata - 700020. The Company is a trader of Textiles, Automobile Parts and Fruit & Nuts.

2. Summary of Material Accounting Policies

The Company has consistently applied the following accounting policies to all periods presented in the financial statements.

2.1 Statement of Compliance

The standalone financial statements of the company comply in all material aspects with Indian Accounting Standards ("Ind AS”) as prescribed under section 133 of the Companies Act, 2013 ("the Act”), as notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) (Amendment) Rules, 2016 and other accounting principles generally accepted in India.

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

2.2 Basis of Preparation and Presentation

The financial statements have been prepared under the historical cost convention on accrual basis.

2.3 Functional and Presentation Currency

These financial statements are presented in Indian National Rupee (''INR''), which is the Company’s functional currency. All amounts have been rounded to the nearest rupees, unless otherwise indicated.

2.4 Use of Judgements and Estimates

In preparing these financial statements, management has made judgements, estimates and assumptions that affect of the company''s accounting policies and the reported amounts of assets, liabilities, income and expenses. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Actual results may differfrom these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

Judgements

Information about the judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the financial statements have been given below:

- Classification of leases into finance and operating lease.

- Classification of financial assets: assessment of business model within which the assets are held and assessment of whether the contractual terms of the financial asset are solely payments of principal and interest on the principal amount outstanding.

Assumptions and Estimation Uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the financial statements for the every period ended is included below:- Recognition of deferred tax assets: availability of future taxable profit against which carryforward tax losses can be used;

- Impairment test: key assumptions underlying recoverable amounts;

- Useful life and residual value of Property, Plant and Equipment;

- Recognition and measurement of provisions and contingencies; key assumptions about the likelihood and magnitude of an outflow of resources.

2.5 Classification of Assets and Liabilities as Current and Non-Current

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

- Expected to be realised / settled (liabilities) or intended to be sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realised / settled within twelve months after the reporting period, or

- Cash and Cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period or there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other assets / liabilities are classified as non-current.

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

The operating cycle is the time between the acquisition of the assets for processing and their realisation in cash and cash equivalents.

2.6 Property, Plantand Equipment Recognition and Measurement

Items of property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment loss, if any. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost and incidental expenditure during construction incurred upto the date when the assets are ready to use.

Capital work in progress includes cost of assets at sites, construction expenditure and interest on the funds deployed less any impairment loss, if any.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as a separate item (major components) of property, plant and equipment.

Useful lives of depreciable and amortisable assets

The Company reviews the estimate useful lives of depreciable or amortisable assets at each reporting period, based its expected utility of those assets. During the current financial year, the management determined that there were no changes to the useful lives of depreciable or amortisable assets.

Subsequent Measurement

Subsequent expenditure is capitalised only if it is probable that there is an increase in the future economic benefits associated with the expenditure will flow to the Company.

Depreciation

Depreciation is calculated on Straight Line Method using the rates arrived at on the basis of estimated useful lives given in Schedule II of the Companies Act, 2013.

Depreciation on additions to or on disposal of assets is calculated on pro-rata basis.

Depreciation methods, useful lives and residual values are reviewed in each financial year end and changes, if any, are accounted for prospectively.

Capital work-in-progress

Expenditure incurred during the construction period, including all expenditure direct and indirect expenses, incidental and related to construction, is carried forward and on completion, the costs are allocated to the respective property, plantand equipment.

De-recognition

An item of property, plant and equipment is de-recognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between net disposal proceeds and the carrying amount of the asset and is recognised in the Statement of Profit and Loss.

2.7 Investment Property

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are measured initially at cost including transaction costs. Subsequent to initial recognition investment properties are measured in accordance with Ind AS 16 “Property Plant and Equipment", requirements for cost model.

An investment property is de-recognised upon disposal or when the investment property is permanently withdrawn form use and no future economic benefits are expected form the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of profit and loss in the year in which the property is de-recognised. Investment property owned by the Company is depreciated underthe straight-line method over its estimated useful life of 30 years.

2.8 IntangibleAssets

Intangible Assets (Other than Goodwill) acquired separately are stated at cost less accumulated amortization and impairment loss, if any. Intangible assets are amortized on straight line method basis over the estimated useful life. Estimated useful life of the Software is considered as 10 years. Amortisation methods, useful lives and residual values are reviewed in each financial year end and changes, if any, are accounted for prospectively.

An intangible asset is de-recognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset are recognised in the Statement of Profit and Loss when the asset is derecognised.

2.9 Impairment of Tangible and IntangibleAssets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication on impairment. If any such indication exists, then the recoverable amount of assets is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or Cash Generating Unit(CGUs).

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CG U. An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment loss in respect of assets other than goodwill is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years. A reversal of impairment loss is recognised immediately in the Statement of Profit & Loss.

2.10 Foreign Currency Transactions

Transactions in foreign currencies are recorded by the Company at their respective functional currency at the exchange rates prevailing at the date of the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currency are translated to the functional currency at the exchange rates prevailing at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in the Statement of Profit and Loss.

2.11 Employee Benefits

Short Term Employee Benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services.

Post-Employement Benefit

No post-emplyment benefits are payable by the Company.

2.12 Borrowing Cost

Borrowings costs include interest, other costs incurred in connection with borrowing to the extent that they are regarded as an adjustment to the interest cost.

2.13 Revenue Recognition

The Company recognises revenue from sale of goods when;

i) the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;

ii) the amount of revenue can be measured reliably;

iii) it is probable that the economic benefits associated with the transaction will flow to the Company; and

iv) the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue (other than sale of goods) is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Claim on insurance companies, interest and others, where quantum of accrual cannot be ascertained with reasonable certainty, are accounted for on acceptance basis.

Revenue represents net value of goods and services provided to customers after deducting for certain incentives including, but not limited to discounts, volume rebates, incentive programs etc.

Interest incomes are recognised on an accrual basis using the effective interest method.

Dividends are recognised at the time the right to receive payment is established.

2.14 Inventories

Inventories are valued at lower of cost and net realisable value except waste/scrap which is valued at net realisable value. Cost of traded goods is determined by taking cost of purchases and related overheads. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and to make the sale.

2.15 Provisions, Contingent Liabilities and Contingent Assets

Based on the best estimate provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event and it is probable ("more likely than not") that it is required to settle the obligation, and a reliable estimate can be made of the amount of the obligation at reporting date.

A contingent liability is a possible obligation that arises from a past event, with the resolution of the contingency dependent on uncertain future events, or a present obligation where no outflow is probable. Major contingent liabilities are disclosed in the financial statements unless the possibility of an outflow of economic resources is remote.

Contingent assets are not recognized in the financial statements but disclosed, where an inflow of economic benefit is probable.

2.16 Financial Instruments

Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Classifications

The Company classifies its financial assets as subsequently measured at either amortised cost or fair value depending on the company''s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets.

Financial assets at amortised cost

Afinancial asset is measured at amortised cost only if both of the following conditions are met:

- it is held within a business model whose objective is to hold assets in order to collect contractual cash flows.

- the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest.

After initial measurement, such financial assets are subsequently measured at amortised cost using the Effective Interest Rate (''EIR'') method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance income in the Statement of Profit and Loss. The losses arising from impairment are recognised in the Statement of Profit and Loss.

Financial assets atfairvalue through OtherComprehensive Income (FVOCI)

Financial assets with contractual cash flow characteristics that are solely payments of principal and interest and held in a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets are classified to be measured at FVOCI.

Financial assets atfairvalue through profitand loss(FVTPL)

Any Financial assets, which does not meet the criteria for categorization as at amortized cost or as FVOCI, is classified as at FVTPL.

In addition, the company may elect to classify a Financial assets, which otherwise meets amortized cost or FVOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ''accounting mismatch'').

Financial assets included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.

Equity Instruments

All equity instruments in scope of Ind AS 109 are measured at fair value. On initial recognition an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in fair value in OCI. This election is made on an investment-by-investment basis.

All other Financial Instruments are classified as measured at FVTPL.

Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the company’s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''passthrough'' arrangement: and either (a) the company has transferred substantially all the risks and rewards of the asset, or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the company continues to recognize the transferred asset to the extent of the company’s continuing involvement. In that case, the company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obi igations that the company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the company could be required to repay.

On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount allocated to the portion of the asset derecognised) and the sum of (i) the consideration received (including any new asset obtained less any new liability assumed) and (ii) any cumulative gain or loss that had been recognised in OCI is recognised in the Statement of Profit and Loss.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

With regard to trade receivable, the Company applies the simplified approach as permitted by Ind AS 109, Financial Instruments, which requires expected lifetime losses to be recognised from the initial recognition of the trade receivables.

Financial liabilities

Initial recognition and measurement

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

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

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial Liabilities measured at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.

The EIR amortisation is included asfinance costs in the Statement of Profit and Loss.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit and loss include financial liabilities designated upon initial recognition as atfair value through profit and loss.

Gains or losses on I iabilities held for trading are recognised in the Statement of Profit and Loss.

Financial liabilities designated upon initial recognition at fair value through profit and loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to the Statement of Profit

and Loss. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the Statement of Profit and Loss.

Derecognition of financial liabilities

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

2.17 Income Tax

Income tax expense comprises current and deferred tax. It is recognised in the Statement of Profit and Loss except to the extent that it relates to items recognised directly in Equity or in Other Comprehensive Income.

Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income for the year. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax assets and liabilities are offset only if, the Company:

a) Has a legally enforceable right to set off the recognised amounts; and

b) Intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Deferred tax

Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the balance sheet and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabil ities in a transaction that affects neither the taxable profit nor the accounting profit.

In view uncertainty to have taxable income in immediate future as prudent, no differ tax assets are recognised for the year.

The carrying amount of deferred tax assets is reviewed at each balance sheet date 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 asset to be recovered.

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

Minimum Alternative Tax (MAT) 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 the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the Statement of Profit and Loss and included in deferred tax assets. The Company reviews the same at each balance sheet date and writes down the carrying

L. A

amount of MAT entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

2.18 Leases

Lease in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to Statement of Profit and Loss on a straight line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost increases.

2.19 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The board of directors of the Company has been identified as being the chief operating decision maker by the Management of the Company.

2.20 Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events (such as bonus shares, share-based payment arrangements), if any, other than conversion of potential equity shares that have changed the number of equity shares outstanding without a corresponding change in resources. For calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of the shares outstanding during the period are adjusted for the effects for all dilutive potential equity shares.

2.21 Cash Flow Statement

Cashflows are reported using the indirect method, whereby Profit before tax (PBT) is adjusted of the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing activities of the company is segregated best on the available information.

2.22 Cash and Cash Equivalent

The company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consists of balance with banks and cash in hand which are unrestricted for withdrawal and usage.

2.23 Investments

Investments held for less than 12 months are shown as current investments and those held for more than 12 months are shown as non-current investments.

---

Mar 31, 2024

2. Significant Accounting Policies

2.1 Basis of Preparation

The financial statements have been prepared on a “Going Concern” basis.

The financial statements have been prepared on historical cost basis, except certain financial
instruments which are measured at fair value or amortised cost at the end of the each reporting period,
as explained in the accounting policies below. All asserts and liabilities are classified as current and
non-current as per the Company’s normal operating cycle.

2.2 Functional and Presentation Currency

These financial statements are presented in Indian National Rupee (''INR''), which is the Company''s
functional currency. All amounts have been rounded to the nearest rupees, unless otherwise indicated.

2.3 Use of Judgements and Estimates

In preparing these financial statements, management has made judgements, estimates and
assumptions that affect of the company''s accounting policies and the reported amounts of assets,
liabilities, income and expenses. Management believes that the estimates used in the preparation of
the financial statements are prudent and reasonable. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are
recognised prospectively.

Judgements

Information about the judgements made in applying accounting policies that have the most significant
effects on the amounts recognised in the financial statements have been given below:

- Classification of leases into finance and operating lease.

- Classification of financial assets: assessment of business model within which the assets are held and
assessment of whether the contractual terms of the financial asset are solely payments of principal and

Notes to the financial statements for the year ended March 31*'', 2024
interest on the principal amount outstanding.

Assumptions and Estimation Uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a
material adjustment in the financial statements for the every period ended is included below:¬
- Recognition of deferred tax assets: availability of future taxable profit against which carryforward
tax losses can be used;

- Impairment test: key assumptions underlying recoverable amounts;

- Useful life and residual value of Property, Plant and Equipment;

- Recognition and measurement of provisions and contingencies: key assumptions about the
likelihood and magnitude of an outflow of resources.

2.4 Classification of Assets and Liabilities as Current and Non-Current

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

- Expected to be realised / settled (liabilities) or intended to be sold or consumed in normal operating
cycle;

- Held primarily for the purpose of trading;

- Expected to be realised / settled within twelve months after the reporting period, or

- Cash and Cash equivalents unless restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting period or there is no unconditional right to defer the
settlement of the liability for at least twelve months after the reporting period.

All other assets /liabilities are classified as non-current.

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

The operating cycle is the time between the acquisition of the assets for processing and their realisation
in cash and cash equivalents.

2.5 Property, Plantand Equipment
Recognition and Measurement

Items of property, plant and equipment are stated at cost less accumulated depreciation and
accumulated impairment loss, if any. The cost of assets comprises of purchase price and directly
attributable cost of bringing the assets to working condition for its intended use including borrowing cost

Notes to the financial statements for the year ended March 31”, 2024

and incidental expenditure during construction incurred upto the date when the assets are ready to use.
Capital work in progress includes cost of assets at sites, construction expenditure and interest on the
funds deployed less any impairment loss, if any.

If significant parts of an item of property, plant and equipment have different useful lives, then they are
accounted for as a separate item (major components) of property, plant and equipment.

Subsequent Measurement

Subsequent expenditure is capitalised only if it is probable that there is an increase in the future
economic benefits associated with the expenditure will flow to the Company.

Depreciation

Depreciation is calculated on Straight Line Method using the rates arrived at on the basis of estimated
useful lives given in Schedule II ofthe Companies Act, 2013.

Depreciation on additions to or on disposal of assets is calculated on pro-rata basis.

Depreciation methods, useful lives and residual values are reviewed in each financial year end and
changes, if any, are accounted for prospectively.

The management believes that these estimated useful lives are realistic and reflect a fair approximation
ofthe period over which the assets are likely to be used.

Capital work-in-progress

Expenditure incurred during the construction period, including all expenditure direct and indirect
expenses, incidental and related to construction, is carried forward and on completion, the costs are
allocated to the respective property, plant and equipment.

De-recognition

An item of property, plant and equipment is de-recognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the difference
between net disposal proceeds and the carrying amount ofthe asset and is recognised in the Statement
of Profit and Loss.

2.6 Intangible Assets

Intangible Assets (Other than Goodwill) acquired separately are stated at cost less accumulated
amortization and impairment loss, if any. Intangible assets are amortized on straight line method basis
over the estimated useful life. Estimated useful life of the Software is considered as 10 years.
Amortisation methods, useful lives and residual values are reviewed in each financial year end and
changes, if any, are accounted for prospectively.

An intangible asset is de-recognised on disposal, or when no future economic benefits are expected
from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the

difference between the net disposal proceeds and the carrying amount of the asset are recognised in
the Statement of Profit and Loss when the asset is derecognised.

2.7 Impairment of Non-financial Assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other
than inventories and deferred tax assets) to determine whether there is any indication on impairment. If
any such indication exists, then the recoverable amount of assets is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates
cash inflows from continuing use that are largely independent of the cash inflows of other assets or
Cash Generating Unit (CGUs).

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs
to sell. Value in use is based on the estimated future cash flows, discounted to their present value using
a pretax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset or CGU. An impairment loss is recognised if the carrying amount of an asset or CGU
exceeds its recoverable amount.

Impairment loss in respect of assets other than goodwill is reversed only to the extent that the assets
carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss had been recognised in prior years. A reversal of
impairment loss is recognised immediately in the Statement of Profit & Loss.

2.8 Foreign Currency Transactions

Transactions in foreign currencies are recorded by the Company at their respective functional currency
at the exchange rates prevailing at the date of the transaction first qualifies for recognition. Monetary
assets and liabilities denominated in foreign currency are translated to the functional currency at the
exchange rates prevailing at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in the
Statement of Profit and Loss.

2.9 Employee Benefits

As per INDAS-19 Employee Benefits, the Company is required to make provisions for post employment
benefits such as gratuity and other retirement benefits. However, the company has only 3-4 employees
and does not operate any formal post employment benefit plan. Due to the immaterial nature of the
obligation, the company has not made any provision for post employment benefits like gratuity, leave
pay in financial statements. This approach is in accordance with materiality principle and has been
consistently applied.

2.10 Revenue Recognition

The Company recognises revenue from sale of goods when;

i) the Company has transferred to the buyer the significant risks and rewards of ownership of the
goods;

ii) the amount of revenue can be measured reliably;

iii) it is probable that the economic benefits associated with the transaction will flow to the Company;
and

iv) the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue (other than sale of goods) is recognised to the extent that it is probable that the economic
benefits will flow to the company and the revenue can be reliably measured. Claim on insurance
companies, interest and others, where quantum of accrual cannot be ascertained with reasonable
certainty, are accounted for on acceptance basis.

Revenue represents net value of goods and services provided to customers after deducting for certain
incentives including, but not limited to discounts, volume rebates, incentive programs etc.

Interest incomes are recognised on an accrual basis using the effective interest method.

Dividends are recognised at the time the right to receive payment is established.

2.11 Inventories

Inventories are valued at lower of cost and net realisable value except waste/scrap which is valued at
net realisable value. Cost of traded goods is determined by taking cost of purchases and related
overheads. Net realisable value is the estimated selling price in the ordinary course of business, less
estimated costs of completion and to make the sale.

---

Mar 31, 2014

A. Use of estimates: The preparation of the financial statements in the conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

b. Tangible fixed assets: Fixed assets are stated at cost, after deducting accumulated depreciation up to the date of balance sheet. Direct costs are capitalized when the assets are ready for use and include borrowing costs related to the acquisition of qualifying assetsforthe period uptothe completion of installation of such assets.

c. Depreciation/Amortization: Depreciation on fixed assets is provided on pro-rata basis to the period of use, using the written down value method based on rates specified in Schedule XIV to the Act.

d. Impairment of assets: An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value being higher of value in use and netselling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognized as expenses in the Statement of Profit and Loss in the year in which as asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

e.lnventories:

lnventories are value dat lower of costornet realizable value.

f. Revenue recognition: Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably measured. Revenue from sale of goods is recognised when all the significant risks & rewards of ownership of the goods have been passed to the recognized buyers, usually on delivery of the goods. Dividend Income is recognised when right to receive is established.

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

g. Investments: Investments which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments /non- current investments. Long term investments are carried at cost unless there is diminution (otherthan temporary) in the value of investments.

h. Employee benefits: Short-term employees'' benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the related service is rendered.

i. Foreign exchange transactions: Transactions in foreign currencies are recorded at a rate that approximates the exchange rate prevailing at the date of the transaction. Exchange differences arising on foreign currency transactions are recognized in the statement of profit and loss. Monetary items denominated in foreign currencies at the yearend are restated atyearend rates.

j. Contingencies: Contingent liability is a possible obligation that arises from past events and 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 enterprise, or is a present obligation that arises from past events but is not recognized because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made.

k. Taxation: The current charges for Income Taxes are calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profit offered for Income taxes and the profit as per the financial statements. Deferred tax assets and liabilities are computed using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets in respect of losses carried forward and unabsorbed depreciation are recognized only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized and are reassessed for the appropriateness of their respective carrying values at each Balance Sheet date.

I. Duty drawback: These are being accounted for as and when actually received.

m. Earnings per share: The basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the period by the weighted average numberof equity shares outstanding during the period.

n. Operating Leases:

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating lease Operating lease receipts are recognized as an income in the statement of Profit & Loss as per the lease terms.

---

Mar 31, 2013

A. Use of estimates: The preparation of the financial statements in the conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

b. Tangible fixed assets: Fixed assets are stated at cost, after deducting accumulated depreciation up to the date of balance sheet. Direct costs are capitalized when the assets are ready for use and include borrowing costs related to the acquisition of qualifying assets for the period up to the completion of installation of such assets.

c. Depreciation/Amortization: Depreciation on fixed assets is provided on pro-rata basis to the period of use, using the written down value method based on rates specified in Schedule XIV to the Act.

d. Impairment of assets: An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognized as expenses in the Statement of Profit and Loss in the year in which as asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been an improvement in recoverable amount.

e. Inventories: Inventories are valued at lower of cost or net realizable value.

f. Revenue recognition: Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably mea- sured. Revenue from sale of goods is recognised when all the significant risks & rewards of ownership of the goods have been passed to the recognized buyers, usually on delivery of the goods. Dividend Income is recognised when right to receive is established. Interest Income is recognised on time proportion basis taking into account the amount outstanding and rate applicable.

g. Investments: Investments which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments/non-current investments. Long term investments are carried at cost unless there is diminution (other than temporary) in the value of investments.

h. Employee benefits: Short-term employees'' benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the related service is rendered.

i. Foreign exchange transactions: Transactions in foreign currencies are recorded at a rate that approximates the exchange rate prevailing at the date of the transaction. Exchange differences arising on foreign currency transactions are recognized in the statement of profit and loss. Monetary items denominated in foreign currencies at the year end are restated at year end rates.

i. Contingencies: Contingent liability is a possible obligation that arises from past events and 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 enterprise, or is a present obligation that arises from past events but is not recog- nized because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made.

k. Taxation: The current charges for Income Taxes are calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differ- ences that result between the profit offered for Income taxes and the profit as per the financial statements. Deferred tax assets and liabilities are computed using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets in respect of losses carried forward and unabsorbed depreciation are recog- nized only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized and are reassessed for the appropriateness of their respective carrying values at each Balance Sheet date.

I. Duty drawback: These are being accounted for as and when actually received.

m. Earnings per share: The basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the period by the weighted average number of equity shares outstanding during the period.

n. Operating Leases :

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating lease.

Operating lease receipts are recognized as an income in the statement of Profit & Loss as per the lease terms.

In accordance with the requirements under the Accounting Standard (AS-22) relating to deferred tax, the deferred tax liability at the end of the year works out to be Rs. 35,828(as on 01.04.2012 Rs.1,35,217). As a measure of prudence and as recommended under AS-22 the same has been currently recognized in the accounts.

---

Mar 31, 2010

A) Basis of preparation of Financial Statements :

The financial statements are prepared under the historical cost convention on the accrual basis in accordance with Generally Accepted Accounting Principles (GAAP) in India, and materially comply with the mandatory accounting standards issued by the Central Government and the provisions of the Companies Act, 1956 (the Act).

b) Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period reported. Actual results could differ from these estimates. Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the assets net sales price or present value as determined above. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonable estimated. Actual results could differ from those estimates.

c) Revenue recognition :

The Company recognises sales at the point of despatch of goods to the customers.

d) Fixed Assets and capital work in progress :

Fixed Assets are stated at cost, after deducting accumulated depreciation up to the date of balance sheet. Direct costs are capitalized when the assets are ready for use and include borrowing costs related to the acquisition of qualifying assets for the period up to the completion of installation of such assets.

e) Depreciation :

Depreciation on fixed assets is provided pro-rata to the period of use, using the written down value method based on rates specified in Schedule XIV to the Act.

f) Impairment :

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is recognised as an expense in the Profit and Loss Account in the year in which an asset is identified as impaired The impairment loss recognized in prior accounting period is reserved if there has been an improvement in recoverable amount.

g) Inventories :

Inventories are valued at lower of cost or net realisable value.

h) Foreign Currency Transactions and translations :

Transactions in foreign currencies are recorded at a rate that approximates the exchange rate prevailing at the date of the transaction Exchange differences arising on foreign currency transactions are recognised in the profit and loss account.

i) Duty Draw Back :

These are being accounted for as and when actually received.

j) Investments :

Long term Investments are stated at cost and any decline other than temporary, in the value of such investments is charged to the Profit and Loss Account.

k) Employee benefits :

(i) Short-term employee benefits are charged off at the undiscounted amount in the year in which the related services are rendered.

(li) No post employment and other long-term employee benefits are payable by the company.

l) Contingent Liability :

i) Contingent liabilities if any are disclosed by way of notes to the Accounts.

ii) Demands raised by the Custom Authorities disputed by the Company Rs.26,27,309/- (Previous year Rs.26,27,309/-)

iii) Bank Guarantee given by a scheduled bank to a third party Rs.41,20,256/- (P. Y. Rs.32,28,756/-)

m) Income taxes, Deferred Tax and Fringe Benefits Tax :

The current charge for Income taxes is calculated in accordance with the relevant tax regulations applicable to the Company.

Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences that result between the profit offered for income taxes and the profit as per the financial statements. Deferred tax assets and liabilities are computed using the tax rates and tax laws that have been enacted or substaintively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the period that includes the enactment date.

Deferred tax assets in respect of losses carried forward and unabsorbed depreciation are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Other deferred tax assets are recognised only if there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised and are reassessed for the appropriateness of their respective carrying values at each balance sheet date.

n) Earnings per share :

The basic earnings per share is computed by dividing the net profit attributable to equity shareholders for the period by the weighted average number of equity shares outstanding during the period.