Midland Polymers Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1.3 Significant accounting policies:

A summary of the significant accounting policies applied in the preparation of the financial
statements is as given below. These accounting policies have been applied consistently to all the
periods presented in the financial statements.

1.4 Ind AS 105: Non-Current Assets held for Sale or Discontinued Operations:

This standard specifies accounting for assets held for sale, and the presentation and disclosure for

discontinued operations:

(a) Assets that meet the criteria to be classified as held for sale to be measured at the lower of carrying
amount and fair value less cost to sell, and depreciation on such assets to cease; and

(b) Assets that meet the criteria to be classified as held for sale to be presented separately in the
balance sheet and the results of discontinued operations to be presented separately in the statement
of profit and loss.

1.5 Ind AS 106: Exploration for Evolution of Mineral resources:

This standard specifies the financial reporting for the exploration for evaluation of mineral resources. In
particular, this standard requires:

a. Limited improvements to existing accounting practices for exploration and valuation of expenditures

b. Entities that recognize exploration and evaluation of assets to assess such assets for impairment in
accordance with this standard and measure any impairment. Disclosures that identify and explain the
amounts in the entity’s financial statements arising from the exploration for the evaluation of mineral

resources and help users of those financial statements understand the amount, timing and certainty
of future cash flows from any exploration and evaluation of assets recognized.

This Ind AS 106 not applicable, the company is in the business of Infrastructure and services. Hence
this Ind AS does not have any financial impact on the financial statements of the company.

1.6 Ind AS-16: Property, Plant and Equipment:

Property, Plant and Equipment are stated at cost less accumulated depreciation.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties
and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable
cost of bringing the item to its working condition for its intended use and estimated costs of dismantling
and removing the item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and
direct labor, any other costs directly attributable to bringing the item to working condition for its intended
use, and estimated costs of dismantling and removing the item and restoring the site on which it is located.

Property, plant and equipment which are significant to the total cost of that item of Property, Plant and
Equipment and having different useful life are accounted for as separately.

Gains or losses arising from derecognition of property, plant and equipment are measured as the difference
between the net disposal proceeds and carrying amount of the asset is recognized in the statement of profit
or loss when the asset is derecognized.

Depreciation on Property Plant and Equipment is provided on Straight line method. Depreciation is
provided based on useful life as prescribed under part C of the schedule II of the Companies act, 2013.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (upto) the date on which
asset is ready for use (disposed of).

Impairment

Property Plant and Equipment are evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less cost of disposal and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of
assets (cash-generating units).

1.7 Impairment Assets (Ind AS 36)

The Company’s non-financial assets, other than deferred tax assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, then the asset’s
recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash inflows are grouped together into
cash-generating units (CGUs). Each CGU represents the smallest group of assets that generates cash
inflows that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair
value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the CGU (or the asset).

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its estimated
recoverable amount. Impairment losses are recognized in the statement of profit and loss. Impairment loss
recognized in respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated
to the CGU, and then to reduce the carrying amounts of the other assets of the CGU (or group of CGUs)
on a pro rata basis.

The books of accounts of the company doesn’t carry any impairment of assets during the reporting period,
hence this accounting standard does not have financial impact on the financial statements of the company.

1.8 Intangible assets (Ind AS 38):

Intangible assets are amortized over the estimated useful lives and assessed for impairment whenever
there is an indication that the intangible asset may be impaired. The amortization period and the
amortization method are reviewed at least at each financial year end. Changes in the expected useful life
or the expected pattern of consumption of future economic benefits embodied in the asset is accounted
for by changing the amortization period or method, as appropriate, and are treated as change in accounting
estimates.

The amortization expense on intangible assets with finite useful lives is recognized in profit or loss.

The books of accounts of the company doesn’t carry any Intangible assets during the reporting period,
hence this accounting standard does not have financial impact on the financial statements of the company.

1.9 Cash Flow Statement (Ind AS 7):

Cash flows are reported using the indirect method under Ind AS 7, 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.

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances
(with an original maturity of three months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are subject to insignificant risk of
changes in value.

a). Non-cash items: Nil

1.10 Operating Cycle:

The Company has adopted its normal operating cycle as twelve months based on the nature of products
and the time between the acquisition of assets for processing and their realization, for the purpose of
current / non-current classification of assets and liabilities.

1.11 Capital Work in Progress

The Books of Accounts of Company is not carrying Capital work-in-progress during the reporting period.

1.12 Investments:

Investments are classified as Non-Current and Current investments.

Investments, which are readily realisable and are intended to be held for not more than one year from the
date on which such investments are made, are classified as current investments. All other investments are
classified as non-current investments.

Current investments are carried at lower of cost and fair value. Non-Current Investments are carried at
cost less provision for other than temporary diminution, if any, in value of such investments.

The Books of Accounts of Company have Investments during the reporting period.

1.13 Effects of changes in foreign Rates (Ind AS 21):

Foreign currency transactions are recorded at the exchange rates prevailing on the dates when the relevant
transactions took place. Exchange difference arising on settled foreign currency transactions during the
year and translation of assets and liabilities at the year-end are recognized in the statement of profit and
loss.

In respect of Forward contracts entered into to hedge risks associated with foreign currency fluctuation
on its assets and liabilities, the premium or discount at the inception of the contract is amortized as income
or expense over the period of contract. Any profit or loss arising on the cancellation or renewal of forward
contracts is recognized as income or expense in the period in which such cancellation or renewal is made.
The company has not entered any foreign exchange transactions during the reporting period; hence this
accounting standard does not have financial impact on the financial statements.

1.14 Borrowing Costs (Ind AS 23):

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or
sale, are added to the cost of those assets, until such time as the assets is substantially ready for the
intended use or sale.

Investment income earned on temporary investment of specific borrowings pending their expenditure on
qualifying assets is recognized in statement of profit and loss.

Discounts or premiums and expenses on the issue of debt securities are amortized over the term of related
securities are included within borrowing costs. Premiums payable on early redemptions of debt securities,
in lieu of future costs, are recognized as borrowing costs.

All other borrowing costs are recognized as expenses in the period in which it is incurred.

1.15 Revenue Recognition (Ind AS 18-Revenues):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured. The following specific recognition criteria must also be met
before revenue is recognized:

a) Sales Revenue is recognized on dispatch to customers as per the terms of the order. Gross sales are
net of returns and applicable trade discounts and excluding GST billed to the customers.

b) Subsidy from Government is recognized when such subsidy has been earned by the company and it
is reasonably certain that the ultimate collection will be made.

c) Interest income is recognized on a time proportion basis taking into account the amount outstanding
and the applicable interest rate. Interest income is included under the head “other income” in the
statement of profit and loss.

d) All other incomes are recognized based on the communications held with the parties and based on
the certainty of the incomes.

1.16 Accounting for Government Grants and Disclosure of Government Assistance (Ind AS 20):
Government grants:

Government grants are not recognized until there is reasonable assurance that the Company will comply
with the conditions attached to them and that the grants will be received.

Government grants are recognized in the Statement of Profit and Loss on a systematic basis over the years
in which the Company recognizes as expenses the related costs for which the grants are intended to
compensate or when performance obligations are me.

Government grants, whose primary condition is that the Company should purchase, construct or otherwise
acquire non-current assets and non-monetary grants are recognized and disclosed as ‘deferred income’
under non-current liability in the Balance Sheet and transferred to the Statement of Profit and Loss on a
systematic and rational basis over the useful lives of the related assets.

The benefit of a government loan at a below-market rate of interest and effect of this favorable interest is
treated as a government grant. The loan or assistance is initially recognized at fair value and the
government grant is measured as the difference between proceeds received and the fair value of the loan
based on prevailing market interest rates and recognized to the income statement immediately on
fulfillment of the performance obligations. The loan is subsequently measured as per the accounting policy
applicable to financial liabilities.

The company has not received any Government Grants during the reporting period; hence this accounting
standard does not have financial impact on the financial statements.

• Stocks at Depots are inclusive of duty, wherever applicable, paid at the time of dispatch from
Factories.

• Based on the information provided the difference between physical verification and valuation of the
of inventories are charged to the profit and loss account.

1.18 Trade Receivables - Doubtful debts:

Provision is made in the Accounts for Debts/Advances which is in the opinion of Management Are
Considered doubtful of Recovery.

1.19 Retirement and other Employee Benefits:

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no
obligation, other than contribution payable to the provident fund. The Company recognizes contribution
payable to the provident fund scheme as expenditure, when an employee renders related service.

Gratuity liability is a defined benefit obligation and the cost of providing the benefits under this plan is
determined on the basis of actuarial valuation at each year-end. Actuarial valuation is carried out for this
plan using the projected unit credit method. Actuarial gains and losses for defined benefits plan is
recognized in full in the period in which they occur in the statement of profit and loss.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short term
employee benefit. The Company measures the expected cost of such absences as the additional amount
that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long¬
term employee benefit for measurement purposes. Such long-term compensated absences are provided
for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial
gains/losses are immediately taken to the statement of profit and loss and are not deferred. The Company
presents the leave as a current liability in the balance sheet, to the extent it does not have an unconditional
right to defer its settlement for 12 months after the reporting date.

1.20 Ind AS 17- Leases

A Lease is classified as a Finance Lease if it transfers substantially all the risks and rewards incidental to
ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and
rewards incidental to ownership.

Finance charges in respect of finance lease obligations are recognized as finance costs in the statement of
profit and loss. In respect of operating leases for premises, which are cancellable / renewable by mutual
consent on agreed terms, the aggregate lease rents payable is charged as rent in the Statement of Profit
and Loss.

1.21 Insurance Claims:

Insurance Claims are accounted for on the basis of claims admitted/expected to be admitted and to the
extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate
collection.

1.22 Earnings per Share (Ind AS 33):

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period. Partly
paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to
participate in dividends relative to a fully paid equity share during the reporting period. The weighted
average number of equity shares outstanding during the period is adjusted for events such as bonus issue,
bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have
changed the number of equity shares outstanding, without a corresponding change in resources.

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

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Mar 31, 2015

GENERAL

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees.

METHOD OF ACCOUNTING

The Company is following Mercantile System of Accounting and recognize income and expenditure on accrual basis.

In respect of derivative contracts, premium paid, gains/losses on settlement and losses on restatement are recognised in the Profit and Loss Statement.

USE OF EXTIMATES

The preparation of the financial statements in conformity with GAAP requires estimates and assumptions to be made that effect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known \ materialized.

FIXED ASSETS:

Fixed assets are stated at cost of acquisition inclusive of freight, duties, taxes & all other incidental expenses. No fixed assets have been revalued in the financial statement.

DEPRECIATION AND AMORTISATION

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written Down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013

Expenditure related to Preferential allotment has been debited to deferred revenue expenditure and l/5th portion of the same had been written during the year.

INVENTORIES

During the year, company does not have inventory as at 31st March 2015.

INVESTMENTS

Company had acquired 900000 unquoted equity shares at a total consideration of Rs. 360.00 Lacs of M/s Protect Nature Private Limited ("PNPL") (97.26% Holding of "PNPL"). Pursuant to the said acquisitions, PNPL became subsidiaries of the Company. Long Term Investments are stated at Cost.

Further during the year company had purchased 67200 Quoted Equity Shares at a total consideration of Rs. 23.32 Lacs of M/s Choksi Laboratories Limited.

TAXES ON INCOME

Tax Expense is the aggregate of Current Tax and Deferred Tax.

Tax Liability of the company is estimated considering the Provision of the Income Tax Act- 1961. Deferred Tax is recognized subject to the consideration of Prudence, on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent year.

MAT Credit Entitlement of Rs. 31,98,033/- pertaining to the earlier years has been account for, for set off in subsequent years as per Section 115JAA of the Income tax Act.

EARNING PER SHARE:

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

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Mar 31, 2014

GENERAL

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI).

METHOD OF ACCOUNTING

The Company is following Mercantile System of Accounting and recognize income and expenditure on accrual basis.

USE OF EXTIMATES

The preparation of the financial statements in conformity with GAAP requires estimates and assumptions to be made that effect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known \ materialized.

FIXED ASSETS:

Fixed assets are stated at cost of acquisition inclusive of freight, duties, taxes & all other incidental expenses. No fixed assets has been revalued in the financial statement.

DEPRECIATION AND AMORTISATION

The company has provided depreciation on assets on WDV method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956.

Expenditure related to Preferential allotment has been debited to deferred revenue expenditure and 1/5th portion of the same had been written during the year.

INVENTORIES

During the year, company does not have inventory.

INVESTMENTS

During the year, Company has acquired 900000 unquoted equity shares at a total consideration of Rs. 360.00 Lacs of M/s Protect Nature Private Limited ("PNPL") (97.26% Holding of "PNPL"). Pursuant to the said acquisitions, PNPL became subsidiaries of the Company. Long Term Investments are stated at Cost.

TAXES ON INCOME:

Tax Expense is the aggregate of Current Tax and Deferred Tax.

Tax Liability of the company is estimated considering the Provision of the Income Tax Act-1961.

Deferred Tax is recognized subject to the consideration of Prudence, on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent year.

MAT Credit Entitlement of Rs. 23,74,354/- pertaining to the earlier years has been account for, for set off in subsequent years as per Section 115JAA of the Income tax Act.

EARNING PER SHARE:

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

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Mar 31, 2013

GENERAL

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI).

METHOD OF ACCOUNTING

The Company is following Mercantile System of Accounting and recognize income and expenditure on accrual basis.

USE OF ESTIMATES

The preparation of the financial statements in conformity with GAAP requires estimates and assumptions to be made that effect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known \ materialized.

FIXED ASSETS:

Fixed assets are stated at cost of acquisition inclusive of freight, duties, taxes & all other incidental expenses. No fixed assets has been revalued in the financial statement.

DEPRECIATION AND AMORTISATION

The company has provided depreciation on assets on WDV method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956.

Expenditure related to Preferential allotment has been debited to deferred revenue expenditure and 1/5th portion of the same had been written during the year.

INVENTORIES

During the year, company does not have inventory.

INVESTMENTS

Long Term Investments are stated at Cost.

TAXES ON INCOME:

Tax Expense is the aggregate of Current Tax and Deferred Tax.

Tax Liability of the company is estimated considering the Provision of the Income Tax Act-1961.

Deferred Tax is recognized subject to the consideration of Prudence, on timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent year.

MAT Credit Entitlement of Rs. 20,20,270/- pertaining to the earlier years has been account for, for set off in subsequent years as per Section 115JAA of the Income tax Act.

EARNING PER SHARE:

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

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Mar 31, 2012

I. Method of Accounting: The Company is following Mercantile System of accounting and recognizes income and expenditure on accrual basis except income/expenses which could not be quantified with reasonable accuracy are accounted for on cash basis. Accounting policies not referred to otherwise are inconsistent with generally accepted accounting principles.

ii. Use of Estimates: The preparation of Financial Statements requires estimates & assumptions to be made that effect he reported amount of assets & liability on the date of financial statements and the reported amount of revenues & expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known\ materialized.

iii. Fixed Assets: Fixed assets are stated at their original cost less depreciation. Cost includes inward freight, duties, taxes and expenses incidental to acquisition and installation and net of CENVAT credit allowed. No fixed asset has being revalued in the financial statement.

iv. Depreciation and Amortization: Depreciation for the year has been provided on written down value method in the manner and at the rates prescribed in Schedule XIV of the Companies Act, 1956. No depreciation is charged on the assets disposed off during the year.

v. Revenue Recognition: Revenue from sale of goods is recognized upon passage of title to the customers, which generally consider with delivery. Revenue from other income is recognized on completion of services.

vi. Inventories: In the current year, there are no inventories. In normal course of business, Inventories are valued as follows:

Raw-Materials -At Cost

Store & Spares -At Cost

Stock-in-Process -At Estimated Cost

Finished Goods -At Net Realizable Value

vii. Investment: Long term investments are stated at cost.

vii. Employees Benefits:

i) Contributions to Provident Fund & ESIC are accounted for on accrual basis and charged to Profit & Loss A/c for the year.

ii) Gratuity and Leave encashment are accounted for on accrual basis.

viii. Taxes on Income:

Tax expense (tax saving) is the aggregate of current tax and deferred tax.

(a) Current tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of Income Tax Act, 1961.

(b) Deferred Tax is recognized, on timing differences, being the differences resulting from the recognition of items in the financial statement and in estimating its current tax income tax provision. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized.

ix) Earnings Per Share: Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by weighted average number of equity shares outstanding during the year.

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Mar 31, 2010

(a) Accounting Policies and Practices: -

i. Method of Accounting: The Company is following Mercantile System of accounting and recognizes income and expenditure on accrual basis except income/expenses which could not be quantified with reasonable accuracy, are accounted for on cash basis. Accounting policies not referred to otherwise are inconsistent with generally accepted accounting principles,

ii. Fixed Assets: Fixed assets are stated at their original cost less depreciation. Cost includes inward freight, duties, taxes and expenses incidental to acquisition and installation and net of CENVAT credit allowed.

iii. Depreciation: Depreciation has been provided on written down value method in the manner and at the rates prescribed in Schedule XIV of the Companies Act, 1956. No Depreciation has been charged on the assets disposed off during the year.

iv. Revenue Recognition: Revenue from sale of goods is recognized upon passage of title to the customers, which generally coincides with delivery.

v. Inventories: In the current year, there are no inventories. In normal course of business, Inventories are valued as follows:

Raw-Materials -At Cost

Store & Spares -At Cost

Stock-in-Process -At Estimated Cost

Finished Goods -At Net Realizable Value

vi. Investment: Long term investments are stated at cost.

vii. Retirement Benefits:

i) Contributions to Provident Fund & ES1C are accounted for on accrual basis and charged to Profit & Loss A/c for the year.

ii) Gratuity and Leave encashment are accounted for on accrual basis.

viii. Taxation Tax expense (tax saving) is the aggregate of current tax and deferred tax.

(a) Current tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of Income Tax Act, 1961.

(b) Deferred Tax is recognized, on timing differences, being the differences resulting from the recognition of items in the financial statement and in estimating its current tax income tax provision. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized.

ix) Earning Per Share: Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by weighted average number of equity shares outstanding during the year.

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Mar 31, 2009

A. Accounting Policies and Practices: -

i Method of Accounting: The Company is following Mercantile System of accounting and recognizes income and expenditure on accrual basis except income/expenses which could not be quantified with reasonable accuracy, are accounted for on cash basis. Accounting policies not referred to otherwise arc inconsistent with generally accepted accounting principles.

ii. Fixed Assets: Fixed assets are stated at their original cost less depreciation. Cost includes inward freight, duties, taxes and expenses incidental to acquisition and installation and net of CENVAT credit allowed.

iii. Depreciation: Depreciation for the year has been provided on written down value method in the manner and at the rates prescribed in Schedule XIV of the Companies Act. 1956. Depreciation on the assets added/disposed off during the year is provided on pro-rata basis with reference to the date of addition/disposal.

iv Revenue Recognition: Revenue from sale of goods is recognized upon passage of title to the customers, which generally consider with delivery.

v. Inventories: Inventories are valued as follows:

Raw-Materials -At Cost

Store & Spares -At Cost

Stock-in-Process -At Estimated Cost

Finished Goods -At Net Realizable Value

vi. Investment: Long term investments are stated at cost.

vii. Retirement Benefits:

i) Contributions to Provident Fund & ESIC are accounted for on accrual basis and charged to Profit & Loss A/c for the year

ii) Gratuity and Leave encashment are accounted for on accrual basis.

viii. Taxation:

Tax expense (tax saving) is the aggregate of current tax, deferred tax and fringe benefit tax

(a) Current tax is the provision made for income tax liability on the profits for the year in accordance with the provisions of Income Tax Act, 1961.

(b) Fringe benefit tax is measured at the amount expected to be paid to the Tax Authorities it accordance with the provisions of Income Tax Act, 1961.

(c) Deferred Tax is recognized, on timing differences, being the differences resulting from the recognition of items in the financial statement and in estimating its current tax income tax provision. Deferred tax assets are not recognized on unabsorbcd depreciation and carry forward of losses unless there is virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized.

ix) Earning Per Share: Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by weighted average number of equity shares outstanding during the year.