M Lakhamsi Industries Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1. Company information

M Lakhamsi Industries Limited is Manufacturer, Exporter, Trader of Oil Seeds,
Pulses and Oil having unit at Rajkot and Mumbai - India. The registered office of
the Company is situated at Mumbai. The Company is listed on the Bombay Stock
Exchange (BSE).

2. Basis of preparation

(i) Compliance with Ind AS

These standalone financial statements have been prepared in accordance with
the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as
notified by Ministry of Corporate Affairs pursuant to Section 133 of the
Companies Act, 2013 (''Act'') read with Companies (Indian Accounting
Standards) Rules, 2015, as amended, and other relevant provisions of the Act
and guidelines issued by the Securities and Exchange Board of India (SEBI).

(ii) Historical cost convention

The standalone financial statements have been prepared on a historical cost
convention and accrual basis, except for the following assets and liabilities:

1) Certain financial assets and liabilities that are measured at fair value;

2) Assets held for sale — measured at lower of carrying amount or fair value
less cost to sell; and

3) Defined benefit plans - plan assets measured at fair value.

(iii) Current and non-current classification

All assets and liabilities have been classified as current or non-current as per
the Company''s normal operating cycle of twelve months and other criteria set
out in Schedule III to the Act.

(iv) Rounding of amounts

All amounts disclosed in the standalone financial statements and notes have
been rounded off to two decimals of the nearest lakh as per the requirement
of Schedule III, unless otherwise stated.

3. Use of estimates and judgements

The estimates and judgements used in the preparation of the standalone
financial statements are continuously evaluated by the Company and are based
on historical experience and various other assumptions and factors (including
expectations of future events) that the Company believes to be reasonable under
the existing circumstances. Differences between actual results and estimates are
recognised in the year in which the results are known/ materialized.

The said estimates are based on the facts and events, that existed as at the
reporting date, or that occurred after that date but provide additional evidence
about conditions existing as at the reporting date.

4. Investment in subsidiaries

Investments in subsidiaries are accounted at cost less impairment in accordance

with Ind AS 27, ''Separate Financial Statements'', except where investments
initially accounted at cost are subsequently accounted and presented in
accordance with Ind AS 105, ''Non-current Assets Held for Sale and Discontinued
Operations'', when they are classified as held for sale.

5. Foreign Currency Transactions and Translations

(i) Functional and presentation currency

The standalone financial statements are presented in Indian rupee (INR),
which is Company''s functional and presentation currency.

(ii) Transactions and balances

Transactions in foreign currencies are recognised at the prevailing exchange
rates on the transaction dates. Realised gains and losses on settlement of
foreign currency transactions are recognised in the standalone statement
of profit and loss. Monetary foreign currency assets and liabilities at the year-
end are translated at the year-end exchange rates and the resultant
exchange differences are recognised in the standalone statement of profit
and loss. Non-monetary assets and liabilities that are measured in terms of
historical cost in foreign currencies are not translated thereafter.

6. Revenue Recognition

Revenue is recognised on satisfaction of performance obligation upon transfer of
control of promised products or services to customers, at an amount that reflects
the consideration expected to be received by the Company in exchange for those
products or services. Revenue is measured based on the transaction price, which
is the consideration, adjusted for discounts and returns, etc., if any.

The Company satisfies a performance obligation and recognises revenue over
time, if one of the following criteria is met:

i. The customer simultaneously receives and consumes the benefits provided by
the Company''s performance as the Company performs; or

(ii) The Company''s performance creates or enhances an asset that the customer
controls as the asset is created or enhanced; or

(iii) The Company''s performance does not create an asset with an alternative use
to the Company and the Company has an enforceable right to payment for
performance completed to date.

For performance obligations where one of the above conditions are not met,
revenue is recognised at the point in time at which the performance obligation is
satisfied.

Revenue is measured at the amount of consideration which the Company expects
to be entitled to in exchange for transferring distinct goods to a customer as
specified in the contract, excluding amounts collected on behalf of third parties (for
example taxes and duties collected on behalf of the government). Consideration is
generally due upon satisfaction of performance obligations and a receivable is
recognised when it becomes unconditional. Generally, the credit period upto 45-60
days from the shipment or delivery of goods as the case may be. Consideration are
determined based on its most likely amount.

The Company recognises provision for sales return, based on the historical results.
The Company accounts for sales returns accrual by recording an allowance for
sales returns concurrent with the recognition of revenue at the time of sale of
product. The estimate of sales returns is determined primarily by the Company''s
historical experience in the markets in which the Company operates.

Export benefits are recognised in the year of export when right to receive the
benefit is established and conditions attached to the benefits are satisfied.

Trade Receivable:

Trade receivables are amounts due from customers for goods sold in the ordinary
course of business and reflects company''s unconditional right to consideration
(that is, payment is due only on the passage of time). Trade receivables are
recognised initially at the transaction price as they do not contain significant
financing components. The company holds the trade receivables with the objective
of collecting the contractual cash flows and therefore measures them subsequently
at amortised cost using the effective interest method, less loss allowance.

7. Other Income

Interest income for all debt instruments is recognised using the effective interest
rate method. The effective interest rate is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial asset to
the gross carrying amount of a 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 is recognised in standalone statement of profit and loss only when the
right to receive payment is established.

8. Income tax

The income tax expense for the year is the tax payable on the current year''s
taxable income based on the applicable income tax rate adjusted for changes in
deferred tax assets and liabilities attributable to temporary differences and to
unused tax losses.

The current income tax expense is calculated on the basis of the tax laws enacted
or substantively enacted at the end of the reporting period in the countries where
the Company and its subsidiaries, associates and joint ventures operate and
generate taxable income. The Company periodically evaluates positions taken in
tax returns with respect to situations in which applicable tax regulation is subject
to interpretation. It establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities.

Deferred income tax is accounted in full, using the Balance Sheet approach, on
temporary differences arising between the tax bases of assets and liabilities and
their carrying amount in the standalone financial statements. Deferred income
tax is determined using tax rates (and laws) that have been enacted or
substantively enacted by the end of the reporting period and are expected to
apply when the related deferred income tax asset is realised or the deferred
income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and
unused tax losses, only if, it is probable that future taxable amounts will be
available to utilise those temporary differences and losses.

There are many transactions and calculations for which the ultimate tax
determination is uncertain. The Company recognises liabilities for anticipated tax
issues based on estimates of whether additional taxes will be due. The uncertain
tax positions are measured at the amount expected to be paid to taxation
authorities when the Company determines that the probable outflow of economic
resources will occur. Where the final tax outcome of these matters is different
from the amounts that were initially recorded, such differences will impact the
current and deferred income tax assets and liabilities in the period in which such
determination is made.

Deferred income tax is provided in full, using the liability method on temporary
differences arising between the tax bases of assets and liabilities and their
carrying amount in the financial statement. Deferred income tax is determined
using tax rates (and laws) that have been enacted or substantially enacted by
the end of the reporting period and are excepted to apply when the related
deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets and liabilities are offset when there is a legally enforceable
right to offset current tax assets and liabilities and when the deferred tax
balances relate to the same taxation authority.

Tax assets and tax liabilities are off set where the Company has a legally
enforceable right to offset and intends either to settle on a net basis, or to realize
the asset and settle the liability simultaneously.

Current and deferred tax is recognized in the standalone statement of profit and
loss, except to the extent it relates to items recognized in other comprehensive
income or directly in equity. In this case, the tax is also recognized in other
comprehensive income or directly in equity, respectively.

Minimum Alternate Tax (MAT) credit is recognized as deferred tax asset only when
and to the extent it is reasonably certain that the Company will pay normal income
tax during the specified period. Such asset is reviewed at each balance sheet date
and the carrying amount of the MAT credit asset is written down to the extent
there is no longer a convincing evidence to the effect that the Company will pay
normal income tax during the specified period.

The Company elected to exercise the option permitted under section 115BAA of the
Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment)
Ordinance, 2019.

9. Impairment of non-financial assets

The carrying amount of the non-financial assets are reviewed at each balance
sheet date if there is any indication of impairment based on internal /external
factors. An impairment loss is recognized whenever the carrying amount of an
asset or a cash generating unit exceeds its recoverable amount. The recoverable
amount of the assets (or where applicable, that of the cash generating unit to
which the asset belongs) is estimated as the higher of its fair value less costs of
disposal and its value in use. Impairment loss is recognized in the standalone
statement of profit and loss.

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

A previously recognized impairment loss is increased or reversed depending on
changes in circumstances. However, the carrying value after reversal is not
increased beyond the carrying value that would have prevailed by charging usual
depreciation / amortization if there was no impairment.

10. Cash and cash equivalents

For the purpose of presentation in the standalone statement of cash flows, cash
and cash equivalents includes cash on hand, deposits held at call with financial
institutions, other short-term, highly liquid investments with original maturities of
three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value, and bank overdrafts.
Bank overdrafts are shown within borrowings in current liabilities in the balance
sheet.

11. Inventories

- Raw Materials and components, Work-in-progress, Finished goods and
Stock-in-trade are valued at lower of cost and net realisable value.

- Goods in transit are valued at cost to date.

- ''Cost'' includes expenditure incurred in acquiring the inventories,
production or conversion costs and other costs incurred in bringing them to
their existing location and condition. In the case of finished goods and
work- in-progress, cost includes an appropriate share of overheads based
on normal operating output. Cost formulae used is ''First In First Out''.

- Inter-unit transfers are valued either at works or factory costs of the
transferor unit.

- Stores and spares are inventories that do not qualify to be recognized as
property, plant and equipment and consists of packing materials,
engineering spares (such as machinery spare parts) which are used in
operating machines or consumed as indirect materials in the manufacturing
process. Stores and spares, excluding certain gases are charged to
standalone statement of profit and loss during the year in which they are
purchased.

The factors that the Company considers in determining the provision for slow
moving, obsolete and other non-saleable inventory include estimated shelf life,
planned product discontinuances, price changes and ageing of inventory, to the
extent each of these factors impact the Company''s business and markets. The
Company considers all these factors and adjusts the inventory provision to reflect
its actual experience on a periodic basis.

12. Investments and financial assets Classification

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

• those to be measured subsequently at fair value (either through other

comprehensive income, or through statement of profit or loss), and

• those measured at amortised cost.

The classification depends on the Company''s business model for managing the
financial assets and the contractual terms of the cash flows. For assets measured
at fair value, gains and losses will either be recorded in standalone statement of
profit and loss or Other comprehensive income / (loss). For investments in
equity instruments, it will depend on whether the Company has made an
irrevocable election at the time of initial recognition to account for the equity
investment at fair value through other comprehensive income.

Measurement

At initial recognition, the Company measures a financial asset at its fair value.

Transaction costs of financial assets carried at fair value through the profit and loss

are expensed in the standalone statement of profit and loss.

Measurement of debt instruments

Subsequent measurement of debt instruments depends on the Company''s business

model for managing the asset and the cash flow characteristics of the asset. The

Company classifies its debt instruments into following categories:

(1) Amortised cost: Assets that are held for collection of contractual cash flows
where those cash flows represent solely payments of principal and interests are
measured at amortised cost. Interest income from these financial assets is
included in other income using the effective interest rate method.

(2) Fair value through profit and loss: Assets that do not meet the criteria for
amortised cost are measured at fair value through statement of Profit and Loss.

Interest income from these financial assets is included in other income.
Measurement of equity instruments

The Company measures its equity investment other than in subsidiaries at fair value
through profit and loss. However, where the Company''s management makes an
irrevocable choice on initial recognition to present fair value gains and losses on
specific equity investments in other comprehensive income, there is no
subsequent reclassification, on sale or otherwise, of fair value gains and losses to
the Statement of Profit and Loss.

Impairment of financial assets

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

De-recognition of financial assets

A financial asset is derecognised only when.

• The Company has transferred the rights to receive cash flows from the financial
asset, or

• Retains the contractual rights to receive the cash flows of the financial asset, but
assumes a contractual obligation to pay the cash flows to one or more recipients.

• Where the Company has transferred an asset, the Company evaluates whether
it has transferred substantially all risks and rewards of ownership of the financial
asset. In such cases, the financial asset is derecognized. Where the entity has not
transferred substantially all risks and rewards of ownership of the financial asset,
the financial asset is not derecognized.

• Where the Company has neither transferred a financial asset nor retains
substantially all risks and rewards of ownership of the financial asset, the financial
asset is derecognized if the Company has not retained control of the financial
asset. Where the Company retains control of the financial asset, the asset is
continued to be recognized to the extent of continuing involvement in the financial
asset.

13. Property, plant and equipment (including capital work-in- progress)

Property, plant and equipment are stated at cost net of accumulated depreciation
and accumulated impairment losses, if any. The cost comprises purchase price,
the cost of replacing a part of plant and equipment and borrowing costs if
capitalization criteria are met and any attributable cost of bringing the asset to its
working condition and location for the intended use. When significant parts of plant
and equipment are required to be replaced at intervals, the Company depreciates
them separately based on their specific useful lives. Spare parts are capitalized
when they meet the definition of property, plant and equipment i.e., when the
Company intends to use them for more than a period of 12 months.

Subsequent costs are included in the asset''s carrying amount or recognized as a
separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the item
can be measured reliably. The carrying amount of any component accounted for
as a separate asset is derecognized when replaced. All other repairs and
maintenance are charged to the standalone statement of profit and loss during the
year in which they are incurred.

An item of property, plant and equipment and any significant part initially
recognized is derecognized upon disposal or when no future economic benefits
are expected from its use or disposal. Gains or losses arising from de¬
recognition of property, plant and equipment are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and is
recognized in the standalone statement of profit and loss when the asset is
derecognized.

On transition to Ind AS, the Company had elected to continue with carrying value
of all its property, plant and equipment recognized as at 1 April 2016, measured
as per the previous GAAP and use that carrying value as the deemed cost of the
property, plant and equipment.

Freehold land is carried at historical cost. Capital Work-in- progress includes
expenditure incurred till the assets are put into intended use. Capital Work in¬
Progress are measured at cost less accumulated impairment losses, if any.

Depreciation:

(i) Depreciation is provided on the straight line method as per the useful life
prescribed in Schedule II to the Act, with residual value of 5%, except in
respect of the following categories of the assets, in whose case the useful life
of the assets have been assessed based on the technical advice, taking into
account the nature of the asset, the estimated usage of the asset, the
operating conditions of the asset, past history of replacement, anticipated
technological changes, manufacturer''s warranties and maintenance support,
etc.

Significant components of each of the individual assets are depreciated
separately over their respective useful lives; the remaining components are
depreciated over the life of the principal asset.

(ii) Depreciation on additions to assets or on sale/disposal of assets is calculated
pro-rata from the date of such addition or upto the date of such sale/disposal
as the case may be. Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These are included in the
Statement of Profit and Loss.

14. Borrowings and other financial liabilities

Borrowings and other financial liabilities are initially recognized at fair value (net
of transaction costs incurred). Difference between the fair value and the
transaction proceeds on initial recognition is recognized as an asset / liability
based on the underlying reason for the difference.

Subsequently, all financial liabilities are measured at amortized cost using the
effective interest rate method.

Borrowings are derecognized from the standalone balance sheet when the
obligation specified in the contract is discharged, cancelled or expired. The
difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid,
including any non-cash assets transferred or liabilities assumed, is
recognized in standalone statement of profit and loss. The gain / loss is
recognized in other equity in case of transaction with shareholders.

Borrowings are classified as current liabilities unless the Company has an
unconditional right to defer settlement of the liability for at least 12 months after
the reporting period.

15. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production
of an asset that necessarily takes a substantial period of time to get ready for its
intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur. Borrowing costs

consist of interest and other costs that an entity incurs in connection with the
borrowing of funds.

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Mar 31, 2024

Significant accounting policies and other explanatory information

1. Company information

M Lakhamsi Industries Limited is Manufacturer, Exporter, Trader of Oil Seeds,
Pulses and Oil having unit at Rajkot and Mumbai - India. The registered office of
the Company is situated at Mumbai. The Company is listed on the Bombay Stock
Exchange (BSE).

2. Basis of preparation

(i) Compliance with Ind AS

These standalone financial statements have been prepared in accordance
with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'')
as notified by Ministry of Corporate Affairs pursuant to Section 133 of the
Companies Act, 2013 (''Act'') read with Companies (Indian Accounting
Standards) Rules, 2015, as amended, and other relevant provisions of the Act
and guidelines issued by the Securities and Exchange Board of India (SEBI).

(ii) Historical cost convention

The standalone financial statements have been prepared on a historical cost
convention and accrual basis, except for the following assets and liabilities:

1) Certain financial assets and liabilities that are measured at fair value;

2) Assets held for sale — measured at lower of carrying amount or fair
value less cost to sell; and

3) Defined benefit plans - plan assets measured at fair value.

(iii) Current and non-current classification

All assets and liabilities have been classified as current or non-current as per
the Company''s normal operating cycle of twelve months and other criteria set
out in Schedule III to the Act.

(iv) Rounding of amounts

All amounts disclosed in the standalone financial statements and notes have
been rounded off to two decimals of the nearest lakh as per the requirement
of Schedule III, unless otherwise stated.

3. Use of estimates and judgements

The estimates and judgements used in the preparation of the standalone
financial statements are continuously evaluated by the Company and are based
on historical experience and various other assumptions and factors (including
expectations of future events) that the Company believes to be reasonable
under the existing circumstances. Differences between actual results and
estimates are recognised in the year in which the results are known/
materialized.

The said estimates are based on the facts and events, that existed as at the
reporting date, or that occurred after that date but provide additional evidence

about conditions existing as at the reporting date.

4. Investment in subsidiaries

Investments in subsidiaries are accounted at cost less impairment in accordance
with Ind AS 27, ''Separate Financial Statements'', except where investments
initially accounted at cost are subsequently accounted and presented in
accordance with Ind AS 105, ''Non-current Assets Held for Sale and Discontinued
Operations'', when they are classified as held for sale.

5. Foreign Currency Transactions and Translations

(i) Functional and presentation currency

The standalone financial statements are presented in Indian rupee (INR),
which is Company''s functional and presentation currency.

(ii) Transactions and balances

Transactions in foreign currencies are recognised at the prevailing exchange
rates on the transaction dates. Realised gains and losses on settlement of
foreign currency transactions are recognised in the standalone
statement of profit and loss. Monetary foreign currency assets and liabilities
at the year-end are translated at the year-end exchange rates and the
resultant exchange differences are recognised in the standalone statement
of profit and loss. Non-monetary assets and liabilities that are measured in
terms of historical cost in foreign currencies are not translated thereafter.

6. Revenue Recognition

Revenue is recognised on satisfaction of performance obligation upon transfer of
control of promised products or services to customers, at an amount that
reflects the consideration expected to be received by the Company in exchange
for those products or services. Revenue is measured based on the transaction
price, which is the consideration, adjusted for discounts and returns, etc., if any.

The Company satisfies a performance obligation and recognises revenue over
time, if one of the following criteria is met:

i. The customer simultaneously receives and consumes the benefits provided
by the Company''s performance as the Company performs; or

(ii) The Company''s performance creates or enhances an asset that the customer
controls as the asset is created or enhanced; or

(iii) The Company''s performance does not create an asset with an alternative use
to the Company and the Company has an enforceable right to payment for
performance completed to date.

For performance obligations where one of the above conditions are not met,
revenue is recognised at the point in time at which the performance obligation
is satisfied.

Revenue is measured at the amount of consideration which the Company expects
to be entitled to in exchange for transferring distinct goods to a customer as
specified in the contract, excluding amounts collected on behalf of third parties
(for example taxes and duties collected on behalf of the government).
Consideration is generally due upon satisfaction of performance obligations and a
receivable is recognised when it becomes unconditional. Generally, the credit
period upto 45-60 days from the shipment or delivery of goods as the case may
be. Consideration are determined based on its most likely amount.

The Company recognises provision for sales return, based on the historical
results. The Company accounts for sales returns accrual by recording an
allowance for sales returns concurrent with the recognition of revenue at the time
of sale of product. The estimate of sales returns is determined primarily by the
Company''s historical experience in the markets in which the Company operates.

Export benefits are recognised in the year of export when right to receive the
benefit is established and conditions attached to the benefits are satisfied.

Trade Receivable:

Trade receivables are amounts due from customers for goods sold in the ordinary
course of business and reflects company''s unconditional right to consideration
(that is, payment is due only on the passage of time). Trade receivables are
recognised initially at the transaction price as they do not contain significant
financing components. The company holds the trade receivables with the
objective of collecting the contractual cash flows and therefore measures them
subsequently at amortised cost using the effective interest method, less loss
allowance.

7. Other Income

Interest income for all debt instruments is recognised using the effective interest
rate method. The effective interest rate is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial asset to
the gross carrying amount of a 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 is recognised in standalone statement of profit and loss only when
the right to receive payment is established.

8. Income tax

The income tax expense for the year is the tax payable on the current year''s
taxable income based on the applicable income tax rate adjusted for changes in
deferred tax assets and liabilities attributable to temporary differences and to
unused tax losses.

The current income tax expense is calculated on the basis of the tax laws
enacted or substantively enacted at the end of the reporting period in the
countries where the Company and its subsidiaries, associates and joint ventures
operate and generate taxable income. The Company periodically evaluates
positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes provisions where
appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is accounted in full, using the Balance Sheet approach, on
temporary differences arising between the tax bases of assets and liabilities and
their carrying amount in the standalone financial statements. Deferred income
tax is determined using tax rates (and laws) that have been enacted or
substantively enacted by the end of the reporting period and are expected to
apply when the related deferred income tax asset is realised or the deferred
income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and
unused tax losses, only if, it is probable that future taxable amounts will be
available to utilise those temporary differences and losses.

There are many transactions and calculations for which the ultimate tax
determination is uncertain. The Company recognises liabilities for anticipated
tax issues based on estimates of whether additional taxes will be due. The
uncertain tax positions are measured at the amount expected to be paid to
taxation authorities when the Company determines that the probable outflow of
economic resources will occur. Where the final tax outcome of these matters is
different from the amounts that were initially recorded, such differences will
impact the current and deferred income tax assets and liabilities in the period in
which such determination is made.

Deferred income tax is provided in full, using the liability method on temporary
differences arising between the tax bases of assets and liabilities and their
carrying amount in the financial statement. Deferred income tax is determined
using tax rates (and laws) that have been enacted or substantially enacted by
the end of the reporting period and are excepted to apply when the related
deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets and liabilities are offset when there is a legally enforceable
right to offset current tax assets and liabilities and when the deferred tax
balances relate to the same taxation authority.

Tax assets and tax liabilities are off set where the Company has a legally
enforceable right to offset and intends either to settle on a net basis, or to realize
the asset and settle the liability simultaneously.

Current and deferred tax is recognized in the standalone statement of profit and
loss, except to the extent it relates to items recognized in other comprehensive
income or directly in equity. In this case, the tax is also recognized in other
comprehensive income or directly in equity, respectively.

Minimum Alternate Tax (MAT) credit is recognized as deferred tax asset only when
and to the extent it is reasonably certain that the Company will pay normal
income tax during the specified period. Such asset is reviewed at each balance
sheet date and the carrying amount of the MAT credit asset is written down to the
extent there is no longer a convincing evidence to the effect that the Company
will pay normal income tax during the specified period.

The Company elected to exercise the option permitted under section 115BAA of the
Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment)
Ordinance, 2019.

9. Impairment of non-financial assets

The carrying amount of the non-financial assets are reviewed at each balance
sheet date if there is any indication of impairment based on internal /external
factors. An impairment loss is recognized whenever the carrying amount of an
asset or a cash generating unit exceeds its recoverable amount. The recoverable
amount of the assets (or where applicable, that of the cash generating unit to
which the asset belongs) is estimated as the higher of its fair value less costs of
disposal and its value in use. Impairment loss is recognized in the standalone
statement of profit and loss.

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

A previously recognized impairment loss is increased or reversed depending on
changes in circumstances. However, the carrying value after reversal is not
increased beyond the carrying value that would have prevailed by charging usual
depreciation / amortization if there was no impairment.

10. Cash and cash equivalents

For the purpose of presentation in the standalone statement of cash flows, cash

and cash equivalents includes cash on hand, deposits held at call with financial
institutions, other short-term, highly liquid investments with original maturities of
three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown within borrowings in current liabilities in
the balance sheet.

11. Inventories

- Raw Materials and components, Work-in-progress, Finished goods and
Stock-in-trade are valued at lower of cost and net realisable value.

- Goods in transit are valued at cost to date.

- ''Cost'' includes expenditure incurred in acquiring the inventories,
production or conversion costs and other costs incurred in bringing them
to their existing location and condition. In the case of finished goods and
work- in-progress, cost includes an appropriate share of overheads based
on normal operating output. Cost formulae used is ''First In First Out''.

- Inter-unit transfers are valued either at works or factory costs of the
transferor unit.

- Stores and spares are inventories that do not qualify to be recognized as
property, plant and equipment and consists of packing materials,
engineering spares (such as machinery spare parts) which are used in
operating machines or consumed as indirect materials in the
manufacturing process. Stores and spares, excluding certain gases are
charged to standalone statement of profit and loss during the year in
which they are purchased.

The factors that the Company considers in determining the provision for slow
moving, obsolete and other non-saleable inventory include estimated shelf life,
planned product discontinuances, price changes and ageing of inventory, to the
extent each of these factors impact the Company''s business and markets. The
Company considers all these factors and adjusts the inventory provision to reflect
its actual experience on a periodic basis.

12. Investments and financial assets Classification

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

• those to be measured subsequently at fair value (either through other

comprehensive income, or through statement of profit or loss), and

• those measured at amortised cost.

The classification depends on the Company''s business model for managing the
financial assets and the contractual terms of the cash flows. For assets measured
at fair value, gains and losses will either be recorded in standalone statement
of profit and loss or Other comprehensive income / (loss). For investments
in equity instruments, it will depend on whether the Company has made an
irrevocable election at the time of initial recognition to account for the equity
investment at fair value through other comprehensive income.

Measurement

At initial recognition, the Company measures a financial asset at its fair value.

Transaction costs of financial assets carried at fair value through the profit and loss

are expensed in the standalone statement of profit and loss.

Measurement of debt instruments

Subsequent measurement of debt instruments depends on the Company''s

business model for managing the asset and the cash flow characteristics of the asset.
The Company classifies its debt instruments into following categories:

(1) Amortised cost: Assets that are held for collection of contractual cash flows
where those cash flows represent solely payments of principal and interests are
measured at amortised cost. Interest income from these financial assets is
included in other income using the effective interest rate method.

(2) Fair value through profit and loss: Assets that do not meet the criteria for
amortised cost are measured at fair value through statement of Profit and Loss.
Interest income from these financial assets is included in other income.

Measurement of equity instruments

The Company measures its equity investment other than in subsidiaries at fair value
through profit and loss. However, where the Company''s management makes an
irrevocable choice on initial recognition to present fair value gains and losses on
specific equity investments in other comprehensive income, there is no
subsequent reclassification, on sale or otherwise, of fair value gains and losses
to the Statement of Profit and Loss.

Impairment of financial assets

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

De-recognition of financial assets

A financial asset is derecognised only when.

• The Company has transferred the rights to receive cash flows from the financial
asset, or

• Retains the contractual rights to receive the cash flows of the financial asset, but
assumes a contractual obligation to pay the cash flows to one or more
recipients.

• Where the Company has transferred an asset, the Company evaluates
whether it has transferred substantially all risks and rewards of ownership of the
financial asset. In such cases, the financial asset is derecognized. Where the
entity has not transferred substantially all risks and rewards of ownership of the
financial asset, the financial asset is not derecognized.

• Where the Company has neither transferred a financial asset nor retains
substantially all risks and rewards of ownership of the financial asset, the
financial asset is derecognized if the Company has not retained control of the
financial asset. Where the Company retains control of the financial asset, the
asset is continued to be recognized to the extent of continuing involvement in the
financial asset.

13. Property, plant and equipment (including capital work-in- progress)

Property, plant and equipment are stated at cost net of accumulated depreciation
and accumulated impairment losses, if any. The cost comprises purchase price,
the cost of replacing a part of plant and equipment and borrowing costs if
capitalization criteria are met and any attributable cost of bringing the asset to
its working condition and location for the intended use. When significant parts of
plant and equipment are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives. Spare parts are
capitalized when they meet the definition of property, plant and equipment i.e.,
when the Company intends to use them for more than a period of 12 months.

Subsequent costs are included in the asset''s carrying amount or recognized as a
separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the
item can be measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognized when replaced. All other
repairs and maintenance are charged to the standalone statement of profit and
loss during the year in which they are incurred.

An item of property, plant and equipment and any significant part initially
recognized is derecognized upon disposal or when no future economic benefits
are expected from its use or disposal. Gains or losses arising from de¬
recognition of property, plant and equipment are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and is
recognized in the standalone statement of profit and loss when the asset is
derecognized.

On transition to Ind AS, the Company had elected to continue with carrying value
of all its property, plant and equipment recognized as at 1 April 2016, measured
as per the previous GAAP and use that carrying value as the deemed cost of the
property, plant and equipment.

Freehold land is carried at historical cost. Capital Work-in- progress includes
expenditure incurred till the assets are put into intended use. Capital Work in¬
Progress are measured at cost less accumulated impairment losses, if any.

Depreciation:

(i) Depreciation is provided on the straight line method as per the useful life
prescribed in Schedule II to the Act, with residual value of 5%, except in
respect of the following categories of the assets, in whose case the useful
life of the assets have been assessed based on the technical advice, taking
into account the nature of the asset, the estimated usage of the asset, the
operating conditions of the asset, past history of replacement, anticipated
technological changes, manufacturer''s warranties and maintenance support,
etc.

Significant components of each of the individual assets are depreciated
separately over their respective useful lives; the remaining components are
depreciated over the life of the principal asset.

(ii) Depreciation on additions to assets or on sale/disposal of assets is calculated
pro-rata from the date of such addition or upto the date of such
sale/disposal as the case may be. Gains and losses on disposals are
determined by comparing proceeds with carrying amount. These are
included in the Statement of Profit and Loss.

14. Borrowings and other financial liabilities

Borrowings and other financial liabilities are initially recognized at fair value (net
of transaction costs incurred). Difference between the fair value and the
transaction proceeds on initial recognition is recognized as an asset / liability
based on the underlying reason for the difference.

Subsequently, all financial liabilities are measured at amortized cost using the
effective interest rate method.

Borrowings are derecognized from the standalone balance sheet when the
obligation specified in the contract is discharged, cancelled or expired. The
difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid,
including any non-cash assets transferred or liabilities assumed, is
recognized in standalone statement of profit and loss. The gain / loss is
recognized in other equity in case of transaction with shareholders.

Borrowings are classified as current liabilities unless the Company has an
unconditional right to defer settlement of the liability for at least 12 months after
the reporting period.

15. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or
production of an asset that necessarily takes a substantial period of time to get
ready for its intended use or sale are capitalised as part of the cost of the asset.
All other borrowing costs are expensed in the period in which they occur.
Borrowing costs consist of interest and other costs that an entity incurs in
connection with the borrowing of funds.

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Mar 31, 2015

A. Basis of preparation of accounts:

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. Indian Generally Accepted Accounting Principles comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the previsions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

b. Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

c. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation and impairment loss, if any. All costs, attributable to the fixed assets are capitalized.

d. Depreciation and Amortization

Depreciation on fixed assets is provided on written down value method (WDV) over the useful lives of assets estimated by the Management.

Depreciation for assets purchased / sold during a period is proportionately charged. The Management estimates the useful lives for the other fixed assets as follows:

Furniture and fixtures 5 years

The useful lives for these assets are same as prescribed under Part C of Schedule II of the Companies Act 2013. Depreciation and amortization methods, useful lives and residual values are reviewed periodically, including at each financial year end .

e. Impairment

The Management periodically assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset's net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

f. Investment

Current investments are carried at lower of cost and quoted/fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long- term investments is made only if such a decline is other than temporary.

Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation includes income from Dividends and income from sale of shares and units of mutual funds. Dividend income is recognized when right to receive is established. Interest income is recognized on time proportion basis taking 1 J&yi account the amount outstanding and rate applicable. Income from Investment representing Commodity Market arbitrage trade is recognized on the terms of the agreements as and when the investment/trade is made.

h. Employee Benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and less account of the year in which the related service is rendered.

i. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

j. Provision, Contingent Liabilities and Contingent Assets

Provision is recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation atthe balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Contingent Liabilities are not recognized bur are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

k. Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year.

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

l. Cash and cash equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks and corporations. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

m. Cash FIow Statement

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

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Mar 31, 2014

A. Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

b. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation and impairment loss, if any. All costs, attributable to the fixed assets are capitalized.

c. Depreciation and Amortisation

Depreciation on fixed assets is provided to the extent of depreciable amount on written down value method (WDV) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 over their useful life.

d. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

e. Investment

Current investments are carried at lower of cost and quoted/fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long- term investments is made only if such a decline is other than temporary.

f. Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation, includes income from Dividends and income from sale of shares and units of mutual funds. Dividend income is recognized when right to receive is established interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. Income from Investment representing Commodity Market arbitrage trade is recognised on the terms of the agreements as and when the investment/trade is made.

g. Employee Benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

h. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

i. Provision, Contingent Liabilities and Contingent Assets

Provision is recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources, will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2012

A. Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convetion.

B. Use of Estimates

The preparation of financial statements requires 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. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

C. Own Fixed Assets

Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated depreciation and impairment loss, if any. All costs, attributable to the fixed assets are capitalized.

D. Depreciation and Amortisation

Depreciation on fixed assets is provided to the extent of depreciable amount on written down value method (WDV) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 over their useful life.

E. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

F. Investment

Current investments are carried at lower of cost and quoted/fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long- term investments is made only if such a decline is other than temporary.

G. Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation includes income from Dividends and income from sale of shares and units of mutual funds. Dividend income is recognized when right to receive is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

H. Employee Benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and less account of the year in which the related service is rendered.

I. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

J. Provision, Contingent Liabilities and Contingent Assets

Provision involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized bur are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

K. Figures of previous year

The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current year presentation.

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Mar 31, 2010

I) Basis of Accounting

The financial statements are prepared on an accrual basis of accounting and in accordance with the generally accepted accounting principles in India and provisions of the Companies Act, 1956 read with the Companies (Accounting Standards) Rules, 2006. The accounts reflect historical costs.

ii) Fixed Assets

All fixed assets are stated at cost of acquisition, less accumulated depreciation and includes ad- justment attributable to fixed assets.

iii) Depreciation

Depriciation on fixed assets has been provided on written down value method at the rates speci- fied in Schedule XIV of the Companies Act, 1956.

Depreciation on additions / deletions of assets during the year is provided on a pro-rata basis.

iv) Investments

Long term investments are valued at cost with an appropriate provision for permanent diminution in value.

v) Income tax

Current Tax

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

Deferred Taxation

The deferred tax charge or credit is recognised using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deffered tax assets are recognised only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on development during the year and available case law, to reasses realisation/liabilities.

vi Provisions and Contingent Liabilities

The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of reources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made with there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is apossible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.