Naraingarh Sugar Mills Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2024

3.1. Basis of Preparation

The financial statements of the Company have been prepared in accordance with
Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards)
Rules, 2015 and other relevant provisions of the Companies Act, 2013.

3.2. Use of Estimates

The preparation of financial statements in conformity with Ind AS requires the management to make
judgments, estimates and assumptions that may impact the application of accounting policies and the
reported value of assets, liabilities, revenues, expenses and related disclosures concerning the items
involved as well as contingent assets and liabilities at the Balance Sheet date. The estimates and
management’s judgments are based on previous experience and other factors considered reasonable
and prudent in the circumstances. Accounting estimates could differ from period to period and actual
results may differ from those estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis and appropriate changes in estimates are made as the management becomes aware of
changes in circumstances surrounding the estimates. Revisions to accounting estimates are recognised
in the financial statements in the period in which estimates are revised and in any future periods
affected and their effects are disclosed in the notes to financial statements.

3.3. Revenue Recognition

-Revenue from sale of goods is recognised when risk and rewards of ownership are transferred to the
customers.

-Revenue from services is recognised when services are rendered and related costs are incurred.

-Other income is recognised on accrual basis unless otherwise stated.

-Insurance and other claims are accounted for on settlement of claims/on receipt.

- Sales are shown net of taxes, as applicable.

3.4. Operating Lease

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the
leased assets are classified as operating leases. Operating lease charges are recognised as an expense in
the Statement of Profit & Loss on a straight line basis.

3.5. Foreign Currency Transactions

Transactions in foreign currency are initially recorded in the functional currency by applying spot
exchange rate at the date the transaction first qualifies for recognition. Monetary assets and liabilities
denominated in foreign currencies are translated to functional currency at closing rate in effect on the
reporting date. Exchange differences arising on settlement or translation of monetary items are
recognised in Statement of Profit or Loss in the year in which they arise with the exception that
exchange differences on long-term monetary items related to acquisition of property, plant and
equipment are adjusted to carrying cost of property, plant and equipment.

Non-monetary assets and liabilities denominated in foreign currency and measured at historical cost
are translated to functional currency using the exchange rate in effect on the date of transaction.

3.6. Borrowing Costs

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

3.7. Government Grants

Government grants are not recognised until there is reasonable assurance that the Company will
comply with the conditions attaching to them and such grants can reasonably have a value placed upon
them. Government grants are recognised in profit or loss on a systematic basis over the periods in
which the Company recognises as expenses the related costs for which the grants are intended to
compensate. Government grants that are receivable as compensation for expenses or losses already
incurred or for the purpose of giving immediate financial support to the Company with no future
related costs are recognised in profit or loss in the period in which they become receivable.

Government grants are deducted from the value of the concerned asset if the grant is specifically
received for the purchase, construction or acquisition of the asset. However, if it is received as a
contribution towards the total investment or by way of contribution to its capital outlay and no
repayment is ordinarily required to be made, such grants are treated as Capital Reserves.

3.8. Employee Benefits

a) Short-term Employee Benefits :

Bonus is accounted for on accrual basis.

b) Post-Employment Benefits

(i) Defined Contribution Plans :

Contributions, as required under the Statute/Rule, made to Provident Fund are charged to the
Statement of Profit & Loss of the year when the contributions to the fund are due.

Provisions of Employees State Insurance are not applicable.

(ii) Defined Benefit Plans :

ayment of Gratuity Act are determined on the basis of
actuarial valuation made at the end of each financial year using the projected unit credit
method. Obligation is measured at the present value of estimated future cash flows using a
discounted rate that is determined by reference to market yields at the Balance Sheet date on
Government bonds where the terms of the Government bonds are consistent with the
estimated terms of the defined benefit obligation. The net interest cost is calculated by
applying the discount rate to the net balance of the defined benefit obligation and fair value of
plan assets. This cost is included in employee benefits expense in the
Statement of Profit & Loss. Re-measurement gains or losses arising from experience
adjustments changes in actuarial assumptions are recognised in the period in which they
occur, directly in other comprehensive income. They are included in retained earnings in the
Statement of Changes in Equity and in the Balance Sheet. Re-measurements are not
reclassified to Statement of Profit & Loss in subsequent periods.

c) Other Long-term Employee Benefits:

The Company’s liabilities for leave encashment is determined on the basis of actuarial valuation
made at the end of each financial year using the projected unit credit method, except for short-term
compensated absences which are provided for based on estimates. The benefits are discounted
using the market yields at the end of the reporting period that gave terms approximating to the
terms of the related obligation. Re-measurements as a result of experience adjustments and
changes in actuarial assumptions are recognised in Statement of Profit & Loss.

The Company presents the entire leave as a current liability in the Balance Sheet, since it does not
have any unconditional right to defer its settlement for twelve months after the reporting date.

d) Termination Benefits:

Termination benefits are recognised as an expense as and when incurred.

3.9. Taxes on Income

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

-Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on
timing differences, being the difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent periods.

-Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off assets
against liabilities.

-Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is
convincing evidence that the Company will be in a position to avail of such credit under the provisions
of the Income Tax Act, 1961.

3.10. Property, Plant & Equipment

For transition to Ind AS, the Company has elected to continue with the carrying value of all of its PPE
recognised as of 01^st April, 2016 (transition date) measured as per the previous GAAP and use that
carrying value as its deemed cost as of the transition date.

PPE are stated at cost of acquisition or construction less accumulated depreciation and impairment of
assets, if any.

The cost comprises purchase price, borrowing costs if capitalisation criteria are met and directly
attributable cost of bringing the asset to its working condition for the intended use and net of
Cenvat/Input availed.

Capital Work-in-Progress

Expenses incurred during construction/installation period are included under Capital Work-in-Progress
and allocated to relevant fixed assets in the ratio of cost of the respective assets on completion of
construction/installation.

Depreciation/Amortisation

-Depreciation on PPE (Sugar Plant) is provided on the basis of actual working days/utilisation, on
written down value method over the useful life of assets estimated by the management

(Refer note 4.9).

-Depreciation on PPE (Power Plant) is provided on written down value method over the useful life of
assets assigned to each asset in accordance with Schedule II of the Companies Act, 2013
-Residual value of assets is considered at 5% of the original cost of the assets.

-Depreciation on additions to fixed assets is calculated on month-end balances.

-Depreciation on assets sold & scrapped, during the year, is provided upto the month in which such
fixed assets are sold or scrapped.

3.11. Impairment of Non-Financial Assets

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of
impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of
the assets exceeds its recoverable value. An impairment loss, if any, is charged to the
Statement of Profit & Loss in the year in which an asset is identified as impaired. Reversal of
impairment losses recognised in prior years is recorded when there is an indication that the impairment
losses recognised for the assets no longer exist or have decreased.

3.12. Valuation of Inventories

Valuation of Inventories is done as under:

-Raw Material.

At cost (on FIFO method)

-Work-in-Progress
At estimated process cost.

-Finished Goods

At cost or market price whichever is lower.

-Stores & Spares
At estimated realisable value.

3.13. Earnings Per Share (EPS)

-Annualised basic earnings per equity share is arrived at based on net profit/(loss) attributable to
equity shareholders to the basic weighted average number of equity shares outstanding.

-Annualised diluted earnings per equity share is arrived at based on adjusted net profit/(loss)
attributable to equity shareholders to the adjusted weighted average number of equity shares
outstanding, for the effects of all dilutive potential equity shares; except where the results are
anti-dilutive. At present the Company does not have any dilutive potential equity shares.

3.14. Cash Flow Statement:

-The Cash Flow Statement is prepared by the indirect method set out in Indian Accounting Standard
(Ind AS) 7 on Cash Flow Statements and presents the cash flows by operating, investing and financing
activities of the Company.

-Cash and cash equivalents presented in the Cash Flow Statement consists of cash in hand,
cheques & drafts in hand and balances in current accounts.

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Mar 31, 2014

1.1. Basis of Accounting

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India under the historical convention on accrual basis. These financial statements have been prepared to comply, in all material aspects, with the accounting standards notified under Section 211(3C) (which continues to be applicable in terms of General Circular 15/2013 dated 15th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013), other relevant provisions of the Companies Act, 1956 and the presentation requirements as prescribed by the revised Schedule VI of the Companies Act, 1956, to the extent applicable.

1.2. Use of Estimates

The preparation of financial statements inconformity with generally accepted accounting principles requires that management makes estimates and assumptions that affect the reported amounts of income and expenses of the year, the reported balance of assets and liabilities and the disclosure relating to contingent liabilities as at the date of the financial statements. These estimates are based upon management''s best knowledge of current events and actions. The difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

1.3. Fixed Assets

* Tangible Assets

Fixed Assets are stated at their cost of acquisition or construction less accumulated depreciation and impairment of assets, if any.

The cost comprises purchase price, borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use and net of Cenvat/VAT availed.

* Capital Work-in-Progress

Expenses incurred during construction/installation period are included under capital work-in-progress and allocated to relevant fixed assets in the ratio of cost of the respective assets on completion of construction/installation.

1.4. Depreciation

* Depreciation on fixed assets is provided, on the basis of actual working days/utilisation, on written down value method, as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

* Depreciation on additions to fixed assets is calculated on month-end balances.

* Depreciation on assets sold & scrapped, during the year, is provided upto the month in which such fixed assets are sold or scrapped.

1.5. Capital Subsidy

Government grants are deducted from the value of the concerned asset if the grant is specifically received from the purchase, construction or acquisition of the asset. However, if it is received as a contribution towards the total investment or by way of contribution to its capital outlay and no repayment is ordinarily required to be made, such grants are treated as capital reserves.

1.6. Valuation of Inventories

* Raw Material.

At cost (on fifo method)

* Work-in-Progress

At estimated process cost.

* Finished Goods

At cost or market price whichever is lower.

(inclusive of excise duty)

* Stores & Spares

At estimated realisable value.

1.7. Excise Duty/Cenvat

* Excise Duty in respect of goods lying in the factory, at the close of the year, is accounted for at the prevalent applicable rate of duty.

* Cenvat on capital goods is credited to respective assets.

* Cenvat on purchase of raw material and other material is deducted from the cost of such material.

* Cenvat on input service is credited to respective expense.

1.8. Revenue Recognition

* Revenue from sale of goods is recognised when risk and rewards of ownership are transferred to the customers.

* Revenue from services is recognised when services are rendered and related costs are incurred.

* Other income is recognised on accrual basis unless otherwise stated.

* Insurance and other claims are accounted for on settlement of claims/on receipt.

* Sales are shown net of Excise Duty and other taxes, as applicable.

1.9. Employee Benefits

a) Short-term Employee Benefits :

Bonus is accounted for on accrual basis.

b) Post-Employment Benefits

(i) Defined Contribution Plans :

Contributions as required under the Statute/Rule are made to Provident Fund and charged to the Statement of Profit & Loss of the year when the contributions to the fund are due.

Provisions of Employees State Insurance are not applicable.

(ii) Defined Benefit Plans :

Gratuity is accounted for on accrual basis - the Company has not taken any Gratuity policy with Life Insurance Corporation of India or any other insurer covered under the specified provisions of the Income Tax Act, 1961.

c) Other Long-term Employee Benefits :

Leave Encashment, on the basis of actual computation, is accounted for on accrual basis, during the tenure of employment the payment in respect thereof is made by the Company from its own funds as per the past practice consistently followed by the Company.

d) Termination Benefits :

Termination benefits are recognised as an expense as and when incurred.

1.10. Foreign Currency Transactions

* Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction.

* Gains or losses, if any, arising due to exchange differences at the time of transaction or settlement are accounted for in the Statement of Profit & Loss.

1.11. Investments

* Current Investments are carried at cost or fair value whichever is lower.

* Non-Current Investments are carried at cost. Provision for diminution in value of non-current investments is made only, if a decline is other than temporary.

1.12. Borrowing Costs

Borrowing costs which are directly attributable to acquisition, construction or production of a qualifying asset are capitalised as part of the cost of such assets. Other borrowing costs are recognised as an expense in the period in which they are incurred.

1.13. Operating Lease

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease charges are recognised as an expense in the Statement of Profit & Loss on a straight line basis.

1.14. Taxes on Income

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

* Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

* Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off assets against liabilities.

* Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will be in a position to avail of such credit under the provisions of the Income Tax Act, 1961.

1.15. Earnings Per Share (EPS)

* Annualised basic earnings per equity share is arrived at based on net profit/(loss) attributable to equity shareholders to the basic weighted average number of equity shares outstanding.

* Annualised diluted earnings per equity share is arrived at based on adjusted net profit /(loss) attributable to equity shareholders to the adjusted weighted average number of equity shares outstanding, for the effects of all dilutive potential equity shares; except where the results are anti-dilutive. At present the Company does not have any dilutive potential equity shares.

1.16. Cash Flow Statement:

* The Cash Flow Statement is prepared by the indirect method set out in Accounting Standard (AS) 3 on Cash Flow Statements and presents the cash flows by operating, investing and financing activities of the Company.

* Cash and cash equivalents presented in the Cash Flow Statement consists of balance in current accounts and cash in hand.

1.17. Impairment of Assets

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to the Statement of Profit & Loss in the year in which an asset is identified as impaired. Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the assets no longer exist or have decreased.

1.18. Contingencies and Provisions

A provision is recognised when the Company has a present obligation as a result of past events. It is probable that an outflow of resources embodying economic benefit 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 the best estimate of the expenditure 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.

A contingent liability is disclosed, unless the possibility of an outflow of resources embodying the economic benefit is remote.

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Mar 31, 2013

1.1. Basis of Accounting

The financial statements are prepared under historical cost convention, on accrual basis of accounting in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards (AS) as notified under the Companies (AS) Rules, 2006 and the presentation requirements as prescribed by the revised Schedule VI of the Companies Act, 1956, to the extent applicable.

1.2. Use of Estimates

The preparation of financial statements inconformity with generally accepted accounting principles requires that management makes estimates and assumptions that affect the reported amounts of income and expenses of the year, the reported balance of assets and liabilities and the disclosure relating to contingent liabilities as at the date of the financial statements. These estimates are based upon management''s best knowledge of current events and actions. The difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

1.3. Fixed Assets

- Tangible Assets

Fixed Assets are stated at their cost of acquisition or construction less accumulated depreciation and impairment of assets, if any.

The cost comprises purchase price, borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use '' and net of Cenvat/VAT availed.

- IntangibleAssets

Intangible Assets are stated at cost less accumulated amortisation and impairment loss, if any.

- Capital Work-in-Progress

Expenses incurred during construction /installation period are included under capital work- in-progress and allocated to relevant fixed assets in the ratio of cost of the respective assets on completion of construction/installation.

1.4. Depreciation/Amortisation

- Depreciation on fixed assets is provided, on the basis of actual working days/utilisation, on written down value method, as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

- Depreciation on additions to fixed assets is calculated on month-end balances.

- Depreciation on assets sold & scrapped, during the year, is provided upto the month in which such fixed assets are sold or scrapped.

- Intangible Assets are amortised on straight line basis over their estimated useful life not exceeding ten years, based on economic benefits that would be derived, as per the estimates made by the Management.

1.5. Impairment of Assets

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to the Statement of Profit & Loss in the year in which an asset is identified as impaired. Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the assets no longer exist or have decreased.

1.6. Valuation of Inventories

- RawMaterial.

At cost (on fifo method)

- Work-in-Progress

At estimated process cost.

Finished Goods At cost or market price whichever is lower. (inclusive of excise duty)

- Stores & Spares

At estimated realisable value.

1.7. Excise Duty/Cenvat

- Excise Duty in respect of goods lying in the factory, at the close of the year, is accounted for at the prevalent applicable rate of duty.

- Cenvat on capital goods is credited to respective assets.

- Cenvat on purchase of raw material and other material is deducted from the cost of such material.

- Cenvat on input service is credited to respective expense.

1.8. Revenue Recognition

- Revenue from sale of goods is recognised when risk and rewards of ownership are transferred to the customers.

- Revenue from services is recognised when services are rendered and related costs are incurred.

- Other income is recognised on accrual basis unless otherwise stated.

- Insurance and other claims are accounted for on settlement of claims/on receipt.

- Sales are shown net of Excise Duty and other taxes, as applicable.

1.9. Employee Benefits

a) Short-term Employee Benefits: Bonus are accounted for on accrual basis.

b) Post-Employment Benefits

(i) Defined Contribution Plans:

- Contributions as required under the Statute/Rule are made to Provident Fund and charged to the Statement of Profit & Loss of the year when the contributions to the funds are due.

- Provisions of Employees State Insurance are not applicable. (ii) Defined Benefit Plan:

Gratuity is accounted for on accrual basis - the Company has not taken any Gratuity policy with Life Insurance Corporation of India or any other insurer covered under the specified provisions of the Income Tax Act, 1961.

c) Other Long-term Employee Benefit:

Leave Encashment, on the basis of actual computation, is accounted for on accrual basis, during the tenure of employment the payment in respect thereof is made by the Company from its own funds as per the past practice consistently followed by the Company.

d) Termination Benefits:

Other termination benefits are recognised as an expense as and when incurred.

1.10. Borrowing Costs

Borrowing costs which are directly attributable to acquisition, construction or production of a qualifying asset are capitalised as part of the cost of such assets. Other borrowing costs are recognised as an expense in the period in which they are incurred.

1.11 Foreign Currency Transactions

- Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction.

- Gains or losses, if any, arising due to exchange differences at the time of transaction or settlement are accounted for in the Statement of Profit & Loss.

1.12. Investments

- Investments are classified into current and long-term investments. Investments that 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 cost or fair value whichever is lower.

- Long-term investments are carried at cost. Provision for diminution in value of long-term investments is made only, if a decline is other than temporary.

1.13. Operating Lease

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease charges are recognised as an expense in the Statement of Profit & Loss on a straight line basis.

1.14. TaxesonIncome

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

- Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

- Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off assets against liabilities.

- Minimum Alternate Tax (MAT)tredit is recognised as an asset only when and to the extent there is convincing evidence that the Company will be in a position to avail of such credit under the provisions of the Income TaxAct, 1961.

1.15. Earnings Per Share (EPS)

Annualised basic earnings per equity share is arrived at based on net profit/(loss) attributable to equity shareholders to the basic weighted average number of equity shares outstanding.

- Annualised diluted earnings per equity share is arrived at based on adjusted net profit /(loss) attributable to equity shareholders to the adjusted weighted average number of equity shares outstanding, for the effects of all dilutive potential equity shares; except where the results are anti-dilutive. At present the Company does not have any dilutive potential equity shares.

1.16. Cash Flow Statement:

- The Cash Flow Statement is prepared by the indirect method set out in Accounting Standard (AS) 3 on Cash Flow Statements and presents the cash flows by operating, investing and financing activities of the Company.

- Cash and cash equivalents presented in the Cash Flow Statement consist of cash in hand, cheques a drafts in hand, balances in current account, fixed deposit (with an original maturity of three months or less).

1.17. Prior Period Items/Extra-ordinary Items

Prior Period Items/Extra-ordinary items, having material impact on the financial affairs of the Company, are disclosed separately.

1.18. Provisions, Contingent Liabilities and Contingent Assets

- The Company recognises a provision when there is a present obligation as a result of a past event and it is more likely than not that there will be an outflow of resources embodying economic benefits to settle such obligation and the amount of such obligation can be reliably estimated. Provisions are not discounted to its present value, and are determined based on the management''s best estimate of the amount of obligation required at the year end. These are reviewed at each balance sheet date and adjusted to reflect current management estimates.

- Contingent liabilities are disclosed in respect of possible obligations that have arisen from past events and the existence of which will be confirmed only by the occurrence or non occurrence of future events not wholly within the control of the Company. Contingent liabilities are also disclosed for present obligations in respect of which it is not probable that there will be an outflow of resources or a reliable estimate of the amount of obligation cannot be made. When there is a possible obligation or a present obligation where the likelihood of an outflow of resources is remote, no disclosure or provision is made.

- Contingent assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2012

1. Basis of Accounting

The financial statements have been prepared under historical cost convention on accrual basis of accounting in accordance with accounting principles generally accepted in India, the applicable Accounting Standards (AS) and the relevant provisions of the Companies Act, 1956.

2. Valuation of Inventories

-Raw Material At cost -Material in Process

At estimated process cost.

- Finished Goods

At cost or market price whichever is lower.

(inclusive of Excise Duty)

- Stores Et Spares etc.

At estimated realisable value.

3. Excise Duty/Cenvat

- Excise Duty in respect of goods lying in the factory, at the close of the year, is accounted for at the prevalent applicable rate of duty.

- Cenvat on capital goods is credited to respective assets.

- Cenvat on purchase of raw material and other material is deducted from the cost of such material.

- Cenvat on Input Service is credited to respective expense.

4. Prior Period Items/Extra-ordinary Items

Prior period items/Extra-ordinary items, having material impact on the financial affairs of the Company, are disclosed separately.

5. Depreciation

- Depreciation on fixed assets is provided, on the basis of actual working days/utilisation, on written down value method, as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

- Depredation on additions to fixed assets is calculated on month-end balances.

- Depreciation on assets sold & scrapped, during the year, is provided upto the month in which such fixed assets are sold or scrapped.

6. Revenue Recognition

- Revenue from sales of goods is recognised when risk and rewards of ownership are transferred to the customers.

- Revenue from services is recognised as and when services are rendered and related costs incurred.

- Other income is recognised on accrual basis unless otherwise stated.

- Sales are shown net of Excise Duty and other taxes, as applicable.

7. Fixed Assets

Tangible assets

- Fixed Assets are stated at their cost of acquisition or construction less accumulated depreciation and impairment of assets, if any.

- Cost comprises of purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Capital Work-in-Progress ''

Expenses incurred during construction/installation period are included under capital work-in-progress and allocated to relevant fixed assets in the ratio of cost of the respective assets on completion of construction/installation.

8. Foreign Currency Transactions

- Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction.

- Gains or losses, if any, arising due to exchange differences at the time of transaction or settlement are accounted for in the Statement of Profit & Loss.

9. Investments

- Current Investments are carried at cost or fair value whichever is lower.

- Long-term investments are carried at cost. Provision for diminution in value of long term investments is made only, if a decline is other than temporary.

10. Employee Benefits

- Contributions as required under the Statute/Rule are made to Provident Fund and charged to the Statement of Profit 6t Loss of the year when the contributions to the fund are due.

- Provisions of Employees State Insurance are not applicable.

- Leave Encashment and Bonus are accounted for on accrual basis.

- Gratuity is accounted for on accrual basis - the Company has not opted for any policy for Group Gratuity Scheme from Life Insurance Corporation of India or any other insurer covered under the specified provisions of the Income Tax Act, 1961.

- Termination benefits are recognised as an expense as and when incurred.

11. Borrowing Costs

Borrowing costs which are directly attributable to acquisition, construction or production of a qualifying asset are capitalised as a part of the cost of such assets. Other borrowing costs are recognised as an expense in the period in which they are incurred.

12. Operating Lease

Leases where significant portion of reward and ownership are retained by the lessor is classified as Operating Lease Et lease rentals, thereon, are charged to Statement of Profit & Loss.

13. Earning Per Share (EPS)

Annualised basic earning per equity share is arrived at based on net profit/(loss) attributable to equity shareholders to the basic weighted average number of equity shares.

14. Taxeson Income

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

- Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets/liabilities, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

15. Impairment of Assets

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss, if any, is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the assets no longer exist or have decreased.

16. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the Notes to Accounts.

Contingent assets are neither recognised nor disclosed in the financial statements.

17. Insurance and other claims

Insurance claims are accounted for on settlement of claims/on receipt.

18. Miscellaneous Expenditure

The Company follows the policy of treating some expenditure, the benefits of which accrue to the Company over an extended period as miscellaneous or deferred revenue expenditure and amortises such expenditure over a period of upto five years depending on the nature & expected future benefits of such expenditure.

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Mar 31, 2011

1. Accounting Concepts

- The financial statements are prepared under historical cost convention on accrual basis of accounting in accordance with generally accepted accounting principles, applicable Accounting Standards and the relevant provisions of the Companies Act, 1956.

2. Fixed Assets

Tangible assets

-Fixed Assets are stated at their cost of acquisition or construction less accumulated depreciation and impairment of assets, if any.

- Cost comprises of purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

- Capital Work-in-Progress

Expenses incurred during construction/installation period are included under capital work- in-progress and allocated to relevant fixed assets in the ratio of cost of the respective assets on completion of construction/installation.

3. Depreciation

- Depreciation on fixed assets is provided, on the basis of actual working days/utilisation, on written down value method, as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

- Depreciation on additions to fixed assets is calculated on month-end balances.

- Depreciation on assets sold & scrapped, during the year, is provided Up to the month in which such fixed assets are sold or scrapped.

4. Inventories

-Raw Material

At cost

-Material in Process

At estimated process cost.

- Finished Goods

At lower of cost or market price

(inclusive of Excise Duty)

- Stores & Spares etc.

At estimated realisable value.

5. Revenue Recognition

- Revenue from sales of goods is recognised when risk and rewards of ownership are transferred to the customers.

- Revenue from services is recognised as and when services are rendered and related costs incurred.

- Other income is recognised on accrual basis unless otherwise stated.

- Sales are shown net of Excise Duty and other taxes, as applicable.

6. Excise Duty/Cen vat

- Excise Duty in respect of goods lying in the factory, at the close of the year, is accounted for at the prevalent applicable rate of duty.

-Cenvat on Capital goods is credited to respective assets and cenvat on purchase of raw material and other material is deducted from the cost of such material.

7. Earning per Share (EPS)

Annualised basic earning per equity share is arrived at based on net profit/(loss) after taxation to the basic weighted average number of equity shares.

8. Employee Benefits

-Contribution as required under the Statute/Rule is made to Employees Provident Fund and charged to the Profit a Loss Account of the year when the contribution to the fund is due.

- Provisions of Employees State Insurance are not applicable.

- Bonus & Gratuity are accounted for on accrual basis - the Company has not opted for any scheme in respect of Gratuity.

- Leave Encashment is accounted for on accrual basis.

- Termination benefits are recognised as an expense as and when incurred.

9. Foreign Currency Transactions

- Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction.

- Gains or losses, if any, arising due to exchange differences at the time of transaction or settlement are accounted for in the Profit ft Loss Account (except those relating to acquisition of fixed assets, which are adjusted in the cost of assets).

10. Borrowing Costs

Borrowing costs which are directly attributable to acquisition, construction or production of a qualifying asset are capitalised as a part of the cost of such assets. Other borrowing costs are recognised as an expense in the period in which they are incurred.

11. Investments

Current Investments are carried at lower of cost & fair value. Long-term investments are carried at cost. Provision for diminution in value of long term investments is made only, if a decline is other than temporary.

12. Impairment of Assets

The cash generating units are evaluated at the Balance Sheet date to ascertain the estimated recoverable amount/value in use as against the written down value. Impairment loss, if any, is recognised whenever the Written down Value exceeds estimated recoverable amount/value in use.

13. Taxes on Income

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

- Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

14. Insurance and other claims

Insurance claims are accounted for on settlement of claims/on receipt.

15. Prior Period Items/Extra-ordinary Items

Prior period items/Extra-ordinary items, having material impact on the financial affairs of the Company, are disclosed separately.

16. Miscellaneous Expenditure

The Company follows the policy of treating some expenditure, the benefits of which accrue to the Company over an extended period as miscellaneous or deferred revenue expenditure and amortises such expenditure over a period of up to five years depends on the nature and expected future benefits of such expenditure.

17. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the Notes to Accounts. Contingent assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2010

1. Accounting Concepts

The financial statements are prepared under historical cost convention on accrual basis of accounting in accordance with generally accepted accounting principles, applicable Accounting Standards and the relevant provisions of the Companies Act, 1956.

2 Fixed Assets

TangibleAssets

- Fixed Assets are stated at their cost of acquisition or construction less accumulated depreciation and impairment of assets, if any.

- Cost comprises of purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

- Intangible Assets are shown at acquisition cost less accumulated amortisation.

- Capital Work-in-Progress

Expenses incurred during construction/installation period are included under capital work-in-progress and allocated to relevant fixed assets in the ratio of cost of the respective assets on completion of construction/installation.

3. Depreciation

- Depreciation on fixed assets is provided, on the basis of actual working days/utilisation, on written down value method, as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

- Depreciation on additions to fixed assets is calculated on month-end balances.

- Depreciation on assets sold a scrapped, during the year, is provided upto the month in which such fixed assets are sold or scrapped.

4. Valuation of Inventories -Raw Material

At cost

-Material in Process

At estimated process cost.

- Finished Goods

At lower of cost or market price ¦

(inclusive of Excise Duty)

- Stores/Spares 6t By Products At estimated realisable value.

5. Revenue Recognition

- Revenue from sales of goods is recognised when risk and rewards of ownership are transferred to the customers.

- Revenue from services is recognised as and when services are rendered and related costs incurred.

- Other income is recognised on accrual basis unless otherwise stated.

- Sales are shown net of Excise Duty and other taxes, as applicable.

6. Excise Duty/Cenvat

- Excise Duty in respect of goods lying in the factory, at the close of the year, is accounted for at the prevalent applicable rate of duty.

- Cenvat on Capital goods is credited to respective assets and cenvat on purchase of raw material and other material is deducted from the cost of such material.

7. Earning per Share (EPS)

Annualised basic earning per equity share is arrived at based on net profit/(loss) after taxation to the basic weighted average number of equity shares.

8. Retirement Benefits

- Contribution as required under the Statute/Rule is made to Provident Fund and charged to the Profit 6t Loss Account of the year when the contribution to the fund is due.

- Provisions of Employees State Insurance are not applicable.

- Gratuity and leave encashment are accounted for on accrual basis.

- Termination benefits are recognized as an expense as and when incurred.

9. Foreign Currency Transactions

- Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction.

- All gains or losses arising due to exchange differences at the time of transaction or settlement are accounted for in the Profit & Loss Account (except those relating to acquisition of fixed assets, which are adjusted in the cost of assets).

10. Borrowing Costs

Borrowing costs which are directly attributable to acquisition, construction or production of a qualifying asset are capitalised as a part of the cost of such assets. Other borrowing costs are recognised as an expense in the period in which they are incurred.

11. Investments

Current Investments are carried at lower of cost & fair value. Long-term investments are carried at cost. Provision for diminution in value of long term investments is made only, if a decline is other than temporary.

12. Impairment of Assets

The cash generating units are evaluated at the Balance Sheet date to ascertain the estimated recoverable amount/value in use as against the Written Down Value. Impairment loss, if any, is recognized whenever the Written Down Value exceeds estimated recoverable amount/value in use.

13. Taxes on Income

- Current Tax is determined on the basis of harmonious contextual interpretation of the Income Tax Act, 1961.

- Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

14. Insurance and other claims

Insurance claims are accounted for on settlement of claims/on receipt.

15. Prior Period Items/Extra-ordinary Items

Prior period items/Extra-ordinary items, having material impact on the financial affairs of the Company, are disclosed separately.

16. Miscellaneous Expenditure

The Company follows the policy of treating some expenditure, the benefits of which accrue to the Company over an extended period as miscellaneous or deferred revenue expenditure and amortises such expenditure over a period of upto five years depending on the nature & expected future benefits of such expenditure.

17. Provisions, Contingent Liabilities and Contingent Assets.

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the Notes to Accounts. Contingent assets are neither recognised nor disclosed in the financial statements.