Jayatma Enterprises Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

Note 1 : Company Overview

JAYATMA ENTERPRISES LIMITED(Formerly Known as JAYATMA SPINNERS LIMITED) ("the company"), is a public limited Company incorporated as private limited company in 1983 and subsequently converted to public limited company in 1994. The company''s shares are listed on Bombay Stock Exchange. The registered office of the Company is located at 2^nd Floor, 1, Laxminagar Co-op Hou. Soc. Ltd., Beside Naranpura Post Office, Naranpura, Ahmedabad-380013, Gujrat (India). The Company has revenue from other operations such as Lease & License Fees income, interest & Dividend income etc. During the year under review, the Company has not changed nature of business.

The financial statements for the year ended 31st March, 2025 were considered by the Board of Directors and approved for issuance on 15^th May, 2025.

Note 2 : Basis of Preparation

The financial statements have been prepared in accordance with the Indian Accounting Standards ("Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016, as applicable. Accounting Policies have been consistently applied except where newly issued accounting standard is initially adopted or revision to the existing standards requires a change in the accounting policy hitherto in use. Management evaluates all recently issued or revised accounting standards on an on-going basis.

The financial statements are prepared in INR (Rs. in Lakhs) And All the values are rounded off to nearest rupees, except when otherwise indicated.

2.1. Statement of Compliance

These financial statements have been prepared in accordance with the Indian Accounting Standards ("Ind AS") as prescribed by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act,2013 ("the Act"), read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended), other relevant provisions of the Act and other accounting principles generally accepted in India.

2.2. Basis of Measurement

The financial statements have been prepared on historical cost convention, except for following:

a) Financial instruments (assets / liabilities) classified as Fair Value through profit or loss or Fair Value through Other Comprehensive Income are measured at Fair Value.

b) Non-current assets held for sale are measured at the lower of the carrying amount and fair value less cost to sell;

2.3. Functional and Presentation Currency

The financial statements have been presented in Indian Rupees (INR), which is also the Company''s functional currency. All financial information presented in denomination of lakhs with rounding off to two decimals as per the requirements of Schedule III, unless otherwise stated.

2.4. Recent Accounting Pronouncements:

Ministry of Corporate Affairs (''MCA'') notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31 March 2025, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Note 3 : Significant accounting judgments, estimates and assumptions

The preparation of financial statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, the disclosures of contingent assets and contingent liabilities at the date of financial statements, income and expense during the period. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized in the periods in which the estimates are revised and in future periods which are affected.

Critical Accounting Estimates and Judgments

In the process of applying the Company''s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the financial statements.

(i) . Contingences and Commitments

In the normal course of business, contingent liabilities may arise from litigations and other claims against the Company. Where the potential liabilities have a low probability of crystallizing or are very difficult to quantify reliably, such liabilities treated are as contingent liabilities. Such liabilities are disclosed in the notes but are not provided for in the financial statements.

Although there can be no assurance regarding the final outcome of the legal proceedings, the management do not expect them to have a materially adverse impact on our financial position or profitability.

(ii) . Taxes

Deferred tax assets are recognized for unused tax credits to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

(iii) . Employee Benefits

Discount rate used to determine the carrying amount of the Company''s defined benefit obligation. The cost of defined benefit plan is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, expected rates of return on assets, future salary increases, mortality rates and future pension increases. Due to the long- term nature of these plans, such estimates are subject to significant uncertainty. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

(iv) . Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Estimated irrecoverable amounts are based on the ageing of the receivable balance and historical experience. Individual trade receivables are written off when management deems it not to be collectible.

(v) . Allowance for uncollectible trade receivables

Provision matrix takes into accounts historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the day of the receivables are due and the rates as given in the provision matrix.

(vi) . Impairment of Property, Plant & Equipment

The value in use calculation requires the directors to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value. Where the actual future cash flows are less than expected, an impairment loss which is material in nature is accounted for.

(vii) . Litigations

The provision is recognized based on the best estimate of the amount desirable to settle the present obligation arising at the reporting period and of the income is recognized in the cases involving high degree of certainty as to realization.

(viii) . Useful Life of Property, Plant and Equipment

As described in Note 4.3, the Company reviews the estimated useful lives and residual values of property, plant and equipment at the end of each reporting period. During the current financial year, the management determined that there were no changes to the useful lives and residual values of the property, plant and equipment

Note 4 : Significant Accounting Policies

4.1. A financial instrument is any contract that gives rise to a financial asset of one entity and a financial

liability or equity instrument of another entity.

a) Financial Assets

Financial Assets comprises of investments in equity instruments, trade receivables, cash and cash equivalents and other financial assets.

• Recognition and Initial Measurement:

All financial assets are initially recognised when the Company becomes a party to the contractual provisions of the instruments. A financial asset is initially measured at fair value plus, 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. Purchases or sales of financial assets that requires delivery of assets within a period of time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that the company committed to purchase or sell the asset.

• Classification and Subsequent Measurement:

For purposes of subsequent measurement, financial assets are classified in four categories:

> Measured at amortised cost;

> Measured at fair value through other comprehensive income (FVTOCI);

> Measured at fair value through profit or loss (FVTPL); and

> Equity Instruments measured at fair value through other comprehensive income (FVTOCI).

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

• Measured at amortised cost

A financial asset is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is achieved by both collecting contractual cash flows; and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

• As per initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.

• Measured at FVTOCI

A financial asset is measured at the FVTOCI if both the following conditions are met:

• The objective of the business model is achieved by both collecting contractual cash flows and selling the financial assets; and

• The asset''s contractual cash flows represent SPPI.

Financial assets meeting these criteria are measured initially at fair value plus transaction costs. They are subsequently measured at fair value with any gains or losses arising on remeasurement recognised in other comprehensive income, except for impairment gains or losses and foreign exchange gains or losses. Interest calculated using the effective interest method is recognised in the statement of profit and loss in interest income. Where the asset is disposed of, the cumulative gain or loss previously accumulated in other comprehensive income reserve is transferred in the statement of profit and loss.

• Measured at FVTPL

FVTPL is a residual category for financial assets. Any financial assets, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as FVTPL. In addition, the Company may elect to designate a financial asset, which otherwise meets amortised cost or FVTOCI criteria, as at FVTPL. Financial asset included within the FVTPL category are measured at fair value with all changes recognized in the statement of profit and loss. Interest / dividend income on financial instruments measured at FVTPL are presented separately under other income.

• Equity Instruments measured at FVTOCI

All equity investments in scope of Ind AS - 109 are measured at fair value. Equity instruments which are, held for trading are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present subsequent changes in the fair value in other comprehensive income. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable. In case the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the OCI. There is no reclassification of the amounts from OCI to the statement of profit and loss, even on sale of investment.

• Derecognition

The Company derecognises a financial asset on trade date only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.

In accordance with Ind As 109, the company uses Expected Credit Loss (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL). Expected credit losses measured through a loss allowance at an amount equal to:

1) The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date);or

2) Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument)

For trade receivables Company applies ''simplified approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates.

For other assets, the company uses 12 month ECL, if any, to provide for impairment loss where there is no significant increase in credit risk. If there significant increase in credit risk full lifetime ECL is used.

b) Financial Liabilities• Recognition and Initial Measurement

Financial liabilities are classified, at initial recognition, as at fair value through profit or loss, loans and borrowings, payables or as derivatives, as appropriate. All financial liabilities are recognize initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

• Subsequent Measurement

Financial liabilities are measured subsequently at amortised cost or FVTPL. A financial liability is classified as FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.

• Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

c) Off setting Financial Instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the counterparty.

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are categorized as equity instruments at FVTOCI, and financial assets or liabilities that are specifically designated as FVTPL. For financial assets which are debt instruments, a reclassification is made only if there is a change in business model for managing those assets. Changes to the business model are expected to be very infrequent. The management determines the change in a business model as a result of external or internal changes which are significant to the Company''s Operations. A Change in business occurs when the company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively effective from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

4.2. Property, Plant and Equipmenta) Recognition and Measurement

Property, plant and equipment held for use in the production or/and supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost, less any accumulated depreciation/ amortisation and accumulated impairment losses (if any).

Cost of an item of property, plant and equipment acquired comprises its purchase price, including non-refundable import duties and taxes, as per deducting any trade discounts and rebates, borrowing cost, if capitalization criteria is met and any directly attributable costs of bringing the assets to its working condition and location for its intended use and present value of any estimated cost of dismantling and removing the item and restoring the site on which it is located. However cost excludes excise duty, value added tax and service tax and GST, to the extent credit of the duty or tax is availed of.

Profit or loss arising on the disposal of property, plant and equipment are recognized in the statement of profit and loss. Gain or losses on disposals are determined by comparing proceeds with the carrying amount. These are included in the Statement of Profit and Loss within Other Gain/Losses.

Subsequent Expenditure

Subsequent costs are included in the asset''s carrying amount, only when it is probable that future economic benefits associated with the cost incurred will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for any component accounted for as a separate asset is derecognised when replaced.

Major inspection /repairs /overhauling expenses are recognized in the carrying amount of the item of property, plant and equipment as a replacement if the recognition criteria are satisfied. Any unamortised part of the previously recognised expenses of similar nature is derecognised.

b) Depreciation and Amortisation-Tangible Assets

• Depreciation on property, plant and equipment is provided on straight line method at the rates determined based on the useful lives of respective assets as prescribed in the Schedule II of the Act.

• Each part of items of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

• Depreciation on additions (disposals) during the year is provided on a pro-rata basis i.e., from (up to)

the date on which asset is ready for use (disposed of).

• Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted, if appropriate.

• The residual value for all the assets are retained at 5% of the cost

• Useful life of the Tangible assets as per Part C of Schedule II of the Companies Act, 2013 read with notification dated 29.08.2014 of Ministry of corporate affairs is as follows :

Category of assets	Useful life of Asset as per Schedule II
Factory Building	30 Years
Electric installation	10 Years
Computer (Servers and Networks)	6 Years
Computer (Desktops and Laptops)	3 Years
Vehicles on hire	6 years
Vehicle Other than Hire	8 years
Office Equipment	5 Years
Furniture & Fixtures	10 Years

c) Disposal of Assets

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from use of 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 recognized in the statement of profit and loss.

d) Reclassification to Investment Property

When the use of a property changes from owner-occupied to investment property, the property is reclassified as investment property only when it has substantial value on the date of reclassification and if so it is reclassified at its carrying amount.

4.3. Amortization of Intangible Assets

Intangible assets acquired are accounted at their acquisition cost and are amortised over its useful life.

4.4. Inventories

• Inventories are valued at the lower of cost and net realizable value.

• Traded Goods: cost includes cost or purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis.

• Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated cost necessary to make the sale.

4.5. Impairment

a) Financial assets (other than at fair value)

The Company assesses at each date of balance sheet, whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured though a loss allowance. The Company recognises lifetime expected losses for all contract assets and / or all trade receivables that do not constitute financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the twelve-month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly, since initial recognition.

b) Non-financial assets Tangible and Intangible assets

Property, Plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there is an indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for cash generating unit (CGU) to which the asset belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised in the statement of profit and loss.

Reversal of impairment loss

Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized directly in other comprehensive income and presented within equity.

4.6. Provisions, Contingent Liabilities and Contingent Assets a) Provisions:

Provisions are recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre tax rates that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Onerous Contracts:

Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract is considered to exist when a contract under which the unavoidable costs of meeting the obligations exceed the economic benefits expected to be received from it.

b) Contingent Liabilities:

Contingent liability is a possible obligation arising 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 Company or a present obligation that arises from past events but is not recognised because it is not possible that an outflow of resources embodying economic benefit will be required to settle the obligations or reliable estimate of the amount of the obligations cannot be made. The Company discloses the existence of contingent liabilities in other notes to financial statements. Means Contingent liabilities are not recognised in the financial statements.

c) Contingent Assets:

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of economic benefits. Contingent assets are not recognised though are disclosed, where an inflow of economic benefits is probable.

4.7. Revenue Recognition

• Revenue 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, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the Government.

• The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Company''s activities as described below. The Company bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specific of each arrangement.

Sale of Goods

Revenue from the sale of goods is recognized when significant risks and rewards of ownership are transferred to customers and the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. Revenue from the sale of goods is measured at the fair value of the consideration received or receivables, net of returns and allowances, trade discounts and volume rebates.

Sale of Services

Revenue from services is recognized in the accounting period in which the services are rendered and when invoices are raised.

Interest Income

For all debt instruments measured either at amortised cost or at fair value through other comprehensive income (FVTOCI), interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate to the gross carrying amount of the financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument ( for example, prepayment, extension, call and similar options ) but does not consider the expected credit losses.

Dividend Income

Dividend income from investments is recognized when the Company''s right to receive payment has been established.

4.8. Leases

At inception of contract, the Group assesses whether the Contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At inception or on reassessment of a contract that contains a lease component, the Group allocates consideration in the contract to each lease component on the basis of their relative standalone price.

As a lessee

i. Right-of-use assets

The Group recognizes right-of-use assets at the commencement date of the lease. Right-of- use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any re measurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, lease payments made at or before the commencement date less any lease incentives received and estimate of costs to dismantle. Right- of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

The Group presents right-to-use assets that do not meet the definition of investment property in ''Property, plant and equipment''.

ii. Lease Liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. In calculating the present value of lease payments, the Group generally uses its incremental borrowing rate at the lease commencement date if the discount rate implicit in the lease is not readily determinable.

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. The carrying amount is remeasured when there is a change in future lease payments arising from a change in index or rate. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to purchase the underlying asset.

The Group presents lease liabilities under financial liabilities in the Balance Sheet.

iii. Short term leases and leases of low value of assets

The Group applies the short-term lease recognition exemption to its short-term leases. It also applies the lease of low- value assets recognition exemption that are considered to be low value. Lease payments on short-term leases and leases of low value assets are recognised as expense on a straight-line basis over the lease term.

As a lessor

Leases in which the Group does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Group to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Group''s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

4.9. Foreign Currency Translation

• Foreign currency transactions are translated into the functional currency using the spot rates of exchanges at the dates of the transactions.

• Foreign Currency Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchanges at the reporting date.

• Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities are recognised in profit or loss in the year in which they arise.

Non-monetary items are not retranslated at period end and are measured at historical cost (translated using the exchange rate at the transaction date).

4.10. Borrowing Costs

• Borrowing Costs consist of interest and other costs that an entity incurs in connection with the borrowings of funds.

• Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are capitalised as a part of the cost of that asset that necessarily takes a substantial period of time to complete and prepare the asset for its intended use. The Company considers a period of twelve months or more as a substantial period of time.

All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.

4.11. Employee Benefits

a) Short Term Employee Benefits

Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related services are provided. Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within twelve months as at the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period.

b) Other Long Term Employee Benefits

The known liabilities for earned leaves that are not expected to be settled wholly within twelve months are measured as the present value of the expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method.

c) Post-Employment Benefits

• Defined Benefit Plans

The known liability, if any, recognised in the balance sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The Company''s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods. The defined benefit obligation is calculated annually by Actuaries using the projected unit credit method. In other cases, such expenditure are charged to Statement of Profit and Loss Account considering it as Short Term Benefits.

• Defined Contribution Plan

Defined contributions, if any, to Statutory Schemes are charged to the statement of profit and loss of the year.

d) Termination Benefit

Expenditure incurred on Voluntary Retirement Scheme is charged to the statement of profit and loss immediately.

4.12. Income Taxes

Income tax comprises current and deferred tax. It is recognized in the statement of profit and loss except to the extent that it relates to an item recognized directly in equity or in other comprehensive income.

i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been

enacted or substantively enacted by the end of the reporting period.

ii) Deferred Tax

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

• Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes (i.e. taxbase). Deferred tax is also recognized for carry forward of unused tax losses and unused tax credits.

• Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available

against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

• The carrying amount of deferred tax assets is reviewed at the end of each reporting period. The Company reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or that entire deferred tax asset to be utilised. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profit will be available.

• Deferred tax relating to items recognised outside the statement of profit and loss is recognised either in other comprehensive income or in equity. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly inequity.

• Deferred tax assets and liabilities are offset when there is a legally enforceable right to setoff current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

4.13. Derivative financial instruments

Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently re-measured to their fair value at the end of each reporting period. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

4.14. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding during the period are adjusted for the effects of all dilutive potential ordinary shares.

4.15. Fair Value Measurement

A number of the accounting policies and disclosures of the Company require the measurement of fair values, for both financial and non-financial assets and liabilities.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the input that is significant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

• Level 2 — Inputs other than quoted prices included within Level 1, that are observable for the

asset or liability, either directly or indirectly; and

• Level 3 — Inputs which are unobservable inputs for the asset or liability.

External valuers are involved for valuation of significant assets and liabilities. Involvement of external valuers is decided by the management of the Company considering the requirements of Ind AS and selection criteria include market knowledge, reputation, independence and whether professional standards are maintained.

4.16. Current / non- current classification

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

• Expected to be realized or intended to be sold or consumed in normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realized within twelve months after the reporting period ; or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All the other assets are classified as non-current.

A liability is classified as current when:

• It is expected to be settled in normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months as per 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.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and non-current liabilities respectively for the year ended 31^st March, 2025.

4.17. Cash and cash equivalent

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity of three months or less, which are subject to an insignificant risk of change in value.

4.18. Investment properties

• Investment property, if any, is property (comprising land or building or both) held to earn rental income or for capital appreciation or both, but not for sale in ordinary course of business, used in the production or supply of goods or services or for administrative purposes.

• Upon initial recognition, an investment property is measured at cost. Subsequently they are stated in the balance sheet at cost, less accumulated depreciation/amortization and accumulated impairment losses, if any.

• Any gain or loss on disposal of investment property is determined as the difference between net disposal proceeds and the carrying amount of the property and is recognized in the statement of profit and loss.

• The depreciable investment property i.e., buildings, are depreciated on a straight line method at a rate determined based on the useful life as provided under Schedule II of the Act.

• Leasehold land if any, is amortised on a straight line basis over the period of lease.

• Investment properties are derecognised either when they have been disposed off or when they are permanently withdrawn from the use and no future economic benefit is expected from their disposal. The net difference between the net disposal proceeds and the carrying amount of the asset is recognised in profit or loss in the period of derecognition.

4.19. Non-current assets (or disposal groups) held for sale and discontinued operations

• Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of the carrying amount and the fair value less cost to sell.

• An impairment loss, if any, is recognized for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognized for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the noncurrent asset (or disposal group) is recognised at the date of de-recognition.

• Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Non-current assets (or disposal group), if any, classified as held for sale are presented separately in the balance sheet. Any profit or loss, if any, arising from the sale or Remeasurement of discontinued operations is presented as part of a single line item in statement of profit and loss.

4.20. Cash dividend distribution to equity holders

The Company recognizes a liability to make cash distributions to equity holders of the Company when the distribution is authorized and the distribution is no longer at the discretion of the Company. Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors.

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Mar 31, 2024

Note 4 : Significant Accounting Policies

4.1. A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.

a) Financial Assets

Financial Assets comprises of investments in equity instruments, trade receivables, cash and cash
equivalents and other financial assets.

• Recognition and Initial Measurement:

All financial assets are initially recognised when the Company becomes a party to the contractual
provisions of the instruments. A financial asset is initially measured at fair value plus, 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. Purchases or sales of financial assets that requires delivery of assets
within a period of time frame established by regulation or convention in the market place (regular way
trades) are recognized on the trade date, i.e., the date that the company committed to purchase or sell
the asset.

• Classification and Subsequent Measurement:

For purposes of subsequent measurement, financial assets are classified in four categories:

> Measured at amortised cost;

> Measured at fair value through other comprehensive income (FVTOCI);

> Measured at fair value through profit or loss (FVTPL); and

> Equity Instruments measured at fair value through other comprehensive income (FVTOCI).

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the
Company changes its business model for managing financial assets.

• Measured at amortised cost

A financial asset is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is achieved by both collecting contractual
cash flows; and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest (SPPI) on the principal amount outstanding.

• As per initial measurement, such financial assets are subsequently measured at amortised cost
using the effective interest rate (EIR) method.

• Measured at FVTOCI

A financial asset is measured at the FVTOCI if both the following conditions are met:

• The objective of the business model is achieved by both collecting contractual cash flows and
selling the financial assets; and

• The asset''s contractual cash flows represent SPPI.

Financial assets meeting these criteria are measured initially at fair value plus transaction costs. They
are subsequently measured at fair value with any gains or losses arising on remeasurement recognised
in other comprehensive income, except for impairment gains or losses and foreign exchange gains or
losses. Interest calculated using the effective interest method is recognised in the statement of profit
and loss in interest income. Where the asset is disposed of, the cumulative gain or loss previously
accumulated in other comprehensive income reserve is transferred in the statement of profit and loss.

• Measured at FVTPL

FVTPL is a residual category for financial assets. Any financial assets, which does not meet the criteria
for categorization as at amortized cost or as FVTOCI, is classified as FVTPL. In addition, the Company
may elect to designate a financial asset, which otherwise meets amortised cost or FVTOCI criteria, as at
FVTPL. Financial asset included within the FVTPL category are measured at fair value with all changes
recognized in the statement of profit and loss. Interest / dividend income on financial instruments
measured at FVTPL are presented separately under other income.

• Equity Instruments measured at FVTOCI

All equity investments in scope of Ind AS - 109 are measured at fair value. Equity instruments which are,
held for trading are classified as at FVTPL. For all other equity instruments, the Company may make an
irrevocable election to present subsequent changes in the fair value in other comprehensive income.
The Company makes such election on an instrument-by-instrument basis. The classification is made on
initial recognition and is irrevocable. In case the Company decides to classify an equity instrument as at
FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the OCI.
There is no reclassification of the amounts from OCI to the statement of profit and loss, even on sale of
investment.

• Derecognition

The Company derecognises a financial asset on trade date only when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and substantially all the risks and
rewards of ownership of the asset to another entity.

In accordance with Ind As 109, the company uses Expected Credit Loss (ECL) model, for evaluating
impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).
Expected credit losses measured through a loss allowance at an amount equal to:

1) The 12-months expected credit losses (expected credit losses that result from those default events
on the financial instrument that are possible within 12 months after the reporting date);or

2) Full lifetime expected credit losses (expected credit losses that result from all possible default
events over the life of the financial instrument)

For trade receivables Company applies ''simplified approach'' which requires expected lifetime losses to be
recognised from initial recognition of the receivables. The Company uses historical default rates to
determine impairment loss on the portfolio of trade receivables. At every reporting date these historical
default rates are reviewed and changes in the forward looking estimates.

For other assets, the company uses 12 month ECL, if any, to provide for impairment loss where there is no
significant increase in credit risk. If there significant increase in credit risk full lifetime ECL is used.

b) Financial Liabilities

• Recognition and Initial Measurement

Financial liabilities are classified, at initial recognition, as at fair value through profit or loss, loans and
borrowings, payables or as derivatives, as appropriate. All financial liabilities are recognize initially at fair
value and, in the case of loans and borrowings and payables, net of directly attributable transaction
costs.

• Subsequent Measurement

Financial liabilities are measured subsequently at amortised cost or FVTPL. A financial liability is
classified as FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such
on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses,
including any interest expense, are recognised in profit or loss. Other financial liabilities are
subsequently measured at amortised cost using the effective interest rate method. Interest expense and
foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also
recognised in profit or loss.

• Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires.

c) Off setting Financial Instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when
there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a
net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be
contingent on future events and must be enforceable in the normal course of business and in the event of
default, insolvency or bankruptcy of the counterparty.

The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are categorized as equity instruments at
FVTOCI, and financial assets or liabilities that are specifically designated as FVTPL. For financial assets
which are debt instruments, a reclassification is made only if there is a change in business model for
managing those assets. Changes to the business model are expected to be very infrequent. The
management determines the change in a business model as a result of external or internal changes which
are significant to the Company''s Operations. A Change in business occurs when the company either begins
or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial
assets, it applies the reclassification prospectively effective from the reclassification date which is the first
day of the immediately next reporting period following the change in business model. The Company does
not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

4.2. Property, Plant and Equipment

a) Recognition and Measurement

Property, plant and equipment held for use in the production or/and supply of goods or services, or
for administrative purposes, are stated in the balance sheet at cost, less any accumulated
depreciation/ amortisation and accumulated impairment losses (if any).

Cost of an item of property, plant and equipment acquired comprises its purchase price, including
non-refundable import duties and taxes, as per deducting any trade discounts and rebates,
borrowing cost, if capitalization criteria is met and any directly attributable costs of bringing the
assets to its working condition and location for its intended use and present value of any estimated
cost of dismantling and removing the item and restoring the site on which it is located. However
cost excludes excise duty, value added tax and service tax and GST, to the extent credit of the duty
or tax is availed of.

Profit or loss arising on the disposal of property, plant and equipment are recognized in the
statement of profit and loss. Gain or losses on disposals are determined by comparing proceeds
with the carrying amount. These are included in the Statement of Profit and Loss within Other
Gain/Losses.

Subsequent Expenditure

Subsequent costs are included in the asset''s carrying amount, only when it is probable that future
economic benefits associated with the cost incurred will flow to the Company and the cost of the
item can be measured reliably. The carrying amount of any component accounted for any
component accounted for as a separate asset is derecognised when replaced.

Major inspection /repairs /overhauling expenses are recognized in the carrying amount of the item
of property, plant and equipment as a replacement if the recognition criteria are satisfied. Any
unamortised part of the previously recognised expenses of similar nature is derecognised.

b) Depreciation and Amortisation-Tangible Assets

• Depreciation on property, plant and equipment is provided on straight line method at the rates
determined based on the useful lives of respective assets as prescribed in the Schedule II of the Act.

• Each part of items of property, plant and equipment with a cost that is significant in relation to the
total cost of the item is depreciated separately.

• Depreciation on additions (disposals) during the year is provided on a pro-rata basis i.e., from (up to)
the date on which asset is ready for use (disposed of).

• Depreciation method, useful lives and residual values are reviewed at each financial year-end and
adjusted, if appropriate.

c) Disposal of Assets

An item of property, plant and equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from use of 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 recognized in the
statement of profit and loss.

d) Reclassification to Investment Property

When the use of a property changes from owner-occupied to investment property, the property is
reclassified as investment property only when it has substantial value on the date of
reclassification and if so it is reclassified at its carrying amount.

4.3. Amortization of Intangible Assets

Intangible assets acquired are accounted at their acquisition cost and are amortised over its useful
life.

4.4. Inventories

(i). Inventories are valued at the lower of cost and net realizable value.

• Traded Goods: cost includes cost or purchase and other costs incurred in bringing the inventories to
their present location and condition. Cost is determined on weighted average basis.

• Net realizable value is the estimated selling price in the ordinary course of business, less the
estimated costs of completion and estimated cost necessary to make the sale.

4.5. Impairment

a) Financial assets (other than at fair value)

The Company assesses at each date of balance sheet, whether a financial asset or a group of
financial assets is impaired. Ind AS 109 requires expected credit losses to be measured though a
loss allowance. The Company recognises lifetime expected losses for all contract assets and / or all
trade receivables that do not constitute financing transaction. For all other financial assets,

expected credit losses are measured at an amount equal to the twelve-month expected credit
losses or at an amount equal to the life time expected credit losses if the credit risk on the financial
asset has increased significantly, since initial recognition.

b) Non-financial assets

Tangible and Intangible assets

Property, Plant and equipment and intangible assets with finite life are evaluated for recoverability
whenever there is an indication that their carrying amounts may not be recoverable. If any such
indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-
in-use) is determined on an individual asset basis unless the asset does not generate cash flows that
are largely independent of those from other assets. In such cases, the recoverable amount is
determined for cash generating unit (CGU) to which the asset belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is
recognised in the statement of profit and loss.

Reversal of impairment loss

Impairment losses recognized in prior periods are assessed at each reporting date for any
indications that the loss has decreased or no longer exists.

An impairment loss is reversed if there has been a change in the estimates used to determine the
recoverable amount. An impairment loss is reversed only to the extent that the asset''s carrying
amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortization, if no impairment loss had been recognized directly in other
comprehensive income and presented within equity.

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Mar 31, 2015

A. Basis of Preparation of Financial Statements

The financial statements have been prepared in accordance with the generally accepted accounting principles and on accrual basis of accounting under historical cost.

b. Use of Estimates

The preparation of financial statements requires the Management make estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Difference between the actual results and estimates are recognized in the period in which the results materialize or are known.

c. Inventories

Items of Inventories are valued at cost.

d. Cash Flow Statement

Cash Flow are reported using the indirect method, whereby profit/loss before extraordinary items and tax is adjusted for effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

e. Fixed Assets and Depreciation

1. Fixed Assets are stated at cost less accumulated depreciation. All cost, including financing cost till commencement of assets put to use, effect of foreign exchange contracts and adjustment arising from exchange rate variations attributable to the fixed assets are capitalised.

2. Expenditure including finance costs related to borrowed funds for the fixed assets incurred on projects under implementation is included under "Capital Work in Progress". These expenses are transferred to fixed assets on commencement of respective projects.

3. Tangible Assets

(i) Depreciation on Fixed Assets is provided to the extent of depreciable amount on Straight Line Method based on balance useful lives of the Assets as per useful life prescribed in Schedule II to the Companies Act, 2013.

(ii) The carrying amount of the asset, as on date of Schedule II becoming effective, after retaining the residual value, shall be recognised in the opening balance of retained earnings where the remaining useful life of an asset is NIL.

f. Revenue Recognition

Sales of goods and other operational revenue are net of tax.

g. Other Income

Interest Income is accounted on accrual basis. Dividend Income is accounted for when the right to receive it is established.

h. Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the dated of the transaction. Monetary assets & liabilities remaining unsettled at the year-end are translated at closing rates.

i. Investments

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as Long Term Investments. Long Term Investments and Current Investments are carried at cost. Unquoted investments are stated at book value. However, provision for diminution in value of investment is made to recognise a decline in the value of investment.

j. Earnings per Share

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

k. Tax on Income

Current Tax is determined on the basis of the amount of tax payable in respect of taxable income for the year.

Deferred Tax is calculated at current statutory Income Tax rate and is recognized on timing differences, being the difference between the Taxable Income and Accounting Income that originate in one period. Deferred Tax Assets subject to the consideration of prudence are recognized and carried forward only to the extent that there is a responsible certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

l. Provisions and contingencies

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made of the obligation. Contingent Assets are neither recognized nor disclosed in the financial statements. Contingent Liabilities are not recognized but are disclosed by way of notes.

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Mar 31, 2014

A. Basis of Preparation of Financial Statements : The financial statements have been prepared in accordance with the generally accepted accounting principles and on accrual basis of accounting under historical cost.

b. Use of Estimates : The preparation of financial statements requires the Management to make estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Difference between the actual results and estimates are recognized in the period in which the results materialize or are known.

c. Inventories : Items of Inventories are valued at cost.

d. Cash Flow Statement : Cash Flows are reported using the indirect method, whereby profit/loss before extraordinary items and tax is adjusted for effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

e. Depreciation and amortization : Depreciation has been provided on straight line method as per the provision of section 205(2)(a) of The Companies Act, 1956 and as per the SCHEDULE XIV of The Companies Act, 1956. However, as per the consistency followed by the Management, the Company has not provided depreciation on its fixed assets from 1998-1999 to 2011-2012 (Refer Note 11) However from FY 2012-13 the Company has provided depreciation on SLM on the Assets purchased thereafter.

f. Revenue Recognition : Sales of goods and other operational Revenue are net of tax.

g. Other Income : Interest Income is accounted on accrual basis. Dividend Income is accounted for when the right to receive it is established.

h. Tangible fixed assets : Fixed Assets are stated at cost of acquisition less accumulated depreciation upto year 1997-99. The installation and direct attributable major expenses incurred on the addition of the assets are capitalized to respective assets. (Refer Note 11)

i. Investments : Investments classified as long term investments are stated at cost of acquisition, except where there is permanent diminution in value of investments, appropriate provision for diminishing value has been made in the accounts.

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

k. Tax on Income : Current Tax is determined on the basis of the amount of tax payable in respect of taxable income for the year.

Deferred tax asset/liability arising due to timing differences and unabsorbed losses under tax laws is not recognized during the year based on the concept of prudence and uncertainty for the realistic estimates for the future profits.

l. Provisions and contingencies : Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made of the obligation. Contingent Assets are neither recognized nor disclosed in the financial statements. Contingent Liabilities are not recognized but are disclosed by way of notes.

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Mar 31, 2013

A. Basis of Preparation of Financial Statements

The financial statements have been prepared in accordance with the generally accepted accounting principles and on accrual basis of accounting under historical cost.

b. Use of Estimates

The preparation of financial statements requires the Management to make estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Difference between the actual results and estimates are recognized in the period in which the results materialize or are known.

c. Inventories

Items of Inventories are valued at cost.

d. Cash Flow Statement

Cash Flows are reported using the indirect method, whereby profit/loss before extraordinary items and tax is adjusted for effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

e. Depreciation and amortization

Depreciation has been provided on straight line method as per the provision of section 205(2)(a) of The Companies Act, 1956 and as per the SCHEDULE XIV of The Companies Act, 1956. However, as per the consistency followed by the Management, the Company has not provided depreciation on its fixed assts from 1998-1999 to 2011-2012 (Refer Note 11) However Company has provided depreciation on SLM on the Assets purchased during the year.

f. Revenue Recognition

Sales of goods and other operational Revenue are net of tax.

g. Other Income

Interest Income is accounted on accrual basis. Dividend Income is accounted for when the right to receive it is established.

h. Tangible fixed assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation upto year 1997-99. The installation and direct attributable major expenses incurred on the addition of the assets are capitalized to respective assets. (Refer Note 11)

i. Investments

Investments classified as long term investments are stated at cost of acquisition, except where there is permanent diminution in value of investments, appropriate provision for diminishing value has been made in the accounts..

j. Earnings per share

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

k. Tax on Income

Current Tax is determined on the basis of the amount of tax payable in respect of taxable income for the year.

Deferred tax asset/liability arising due to timing differences and unabsorbed losses under tax laws is not recognized during the year based on the concept of prudence and uncertainty for the realistic estimates for the future profits.

l. Provisions and contingencies

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made of the obligation... Contingent Assets are neither recognized nor disclosed in the financial statements. Contingent Liabilities are not recognized but are disclosed by way of notes.

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Mar 31, 2012

A. Basis of Accounting and Preparation of financial statements :

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles and on accrual basis ol accounting under historical cost.

b. Use of Estimates :

. The preparation of the financial statements requires the Management to make estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Difference between the actual results and estimates are recognized in the period in which the results materialize or are known.

C. Inventories :

Items of Inventories are valued at cost.

d. Cash Flow Statements :

Cash Flows are reported using the indirect method, whereby profit/(loss before extraordinary items and tax is adjusted for the effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

e. Depreciation and amortization :

Depreciation has been provided on straight line method as per the provision of section 205(2)(a) of The Companies Act, 1956 and as per the SCHEDULE XIV of The Companies Ad, 1956. However, as per the consistency followed by the Management, the Company has not provided depreciation on its fixed assets since 1996-99. (Refer Note 9)

f. Revenue Recognition :

Sale of goods are net of tax.

g. Other Income :

Interest Income is accounted on accrual basis. Dividend Income is accounted for when the right to receive it is established.

h. Tangible fixed assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation upto year 1997-99. The installation and dired attributable major expenses incurred on the addition of the assets are capitalized to respedive assets. (Refer Note 9)

i. Investments :

Investments classified as long term investments are stated at cost of acquisition, except where there Is permanent diminution in value of investments, such are stated at net of provisions made.

j. Earnings per share :

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

k. Taxes on Income :

Current Tax is determined on the basis of the amount of tax payable in respect of taxable income for the year.

Deferred tax asset arising due to timing differences and unabsorbed losses under tax laws is not recognized during the year based on the concept of prudence and uncertainty for the realistic estimates of the future profits.

l. Provisions and contingencies :

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events, it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent Assets are neither recognized nor disclosed in the financial statements. Contingent Liabilities are not provided for and are disclosed by way of notes.

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Mar 31, 2011

(1) SYSTEM OF ACCOUNTING

Accounts have been maintained on accrual concept, unless otherwise stated.

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported balances of assets and liabilites and disclosures relating to the contingent liabilites as at the date of the financial statements and reported amounts of income and expenses during the year. Differences between actual results and estimates are recognised in the period in which the results are known/ materialised.

(2) FIXED ASSETS:

Fixed Assets are valued at cost including allocated Pre-operative expenses less Depreciation.

(3) DEPRECIATION:

Depreciation on Fixed Assets have been provided on Straight Line Method at the rates given in the Schedule XIV to the Companies Act, 1956 as ammended by notification daled 16-12-93. Depreciation on Plant & Machinery is provided at the rates given for Continuous process Plant. (See Note-6)

(4) INVESTMENTS : Investment are stated at cost.

(5) VALUATION OF INVENTORIES :

Inventory is valued at lower of cost or net realisable value.

(6) RETIRMENT BENEFITS :

Gratuity is accounted on accrual basis.

(7) SALES & OTHER INCOME :

Sales is net of tax.

Dividend & Other income are accounted on cash basis.

(8) PROVISIONS, CONTINGENT LlABILITIES AND CONTINGENT ASSETS :

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events, it is probable that there will be an out flow of resources and a reliable estimate can be made of the amount of the obligation. Contingent Assets are neither recognised nor disclosed in the financial statements. Contingent liabilities are not provided for and are disclosed by way of notes.

(9) CONTINGENT LIABILITIES NOT PROVIDED FOR:

(a) Claims against company not acknowledged Rs. 3900000/-

as debt. Rs.(3900000/-)

(10) Balances of Unsecured Loans, Sundry Debtors, Sundry Creditors, Loans and Advances and other liabilities are subject to confirmation and reconciliation Any adjustment that may be necessary will be made in the subsequent year on receipt of confirmation.

(11) In accordance with the "Accounting Standard 22" issued by the Institute of Chartered Accountants of India, "Deferred tax assets" arising due to timing differences and unabsorbed losses under tax laws is not recognised during the year based on the concept of prudence and uncertainty for the realistic estimates of the future profits,

(12) The Company has not provided depreciation on its fixed assets since 1998-99. Due to this, profit for the current year is higher stated by Rs. 372724/- (1101350/-) to the extent of depreciation charge. Consequently, the Net Block of Fixed Assets and Net Worth is shown higher by Rs.16154421/- (15781697/-) to the extent of unprovided accumulated depreciation.