P S Raj Steels Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

Note 1: Nature of Business Operation:

P S Raj Steels Limited (formerly known as P S Raj Steels Private Limited) (hereinafter referred to as ‘the
company’) is a manufacturer and trader of Stainless Steel Pipes, Tubes and Coils. The Company was
incorporated under the provisions of Companies act, 1956 and domiciled in India. The registered office of
the company is V & P.O. Talwandi Rukka, Hisar, Haryana, 125001, India.

Note 2: ACCOUNTING POLICIES:

2.1: BASIS OF PREPARTION OF FINANCIAL STATEMENTS

i) 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 under Section 133 of the
Companies Act 2013 (‘ the Act’) read with rule 7 of the Companies (Accounts) Rules, 2014,
the provisions of the act. The accounting policies adopted in the preparation of financial
statements have been consistently applied. All assets and liabilities have been classified as
current or non-current as per the company’s normal operating cycle and other criteria set out
in the schedule III to the Companies Act, 2013. Based on the nature of operation and time
difference between the provision of services and realization of cash and cash equivalents, the
company has ascertained its operating cycle as 12 months for the purpose of current and non¬
current classification of assets and liabilities.

ii) All amounts included in the financial statements are reported in Indian rupees (in rupees). Due
to rounding off, the numbers presented throughout the document may not add up precisely to
the totals and percentages may not precisely reflect the absolute figures. Previous year figures
have been regrouped/ re-arranged, wherever necessary.

2.2: USE OF ESTIMATES

The preparation of financial statements in accordance with the accounting standards notified u/s 133 of the
Companies Act, 2013 requires the management to make judgments, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the
end of the reporting period. Accounting estimates could change from period to period. Actual results could
differ from these estimates. Appropriate changes and estimates are made as management become 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.

2.3 ACCOUNTING CONVENTION

The group follows the mercantile system of accounting, recognizing income and expenditure on accrual basis.
The accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to
specifically otherwise, are consistent with the generally accepted accounting principles.

2.4: PROPERTY, PLANT AND EQUIPMENT

i) Tangible assets

Property, Plant and Equipment are stated at cost net of recoverable taxes, trade discounts and
rebates and include amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. The cost of Assets comprises its purchase price, borrowing cost and
any cost directly attributable to bringing the asset to its working condition for its intended use,
net charges on foreign exchange contracts and adjustments arising from exchange rate
variations attributable to the assets. Subsequent expenditures related to an item of Property,
Plant and Equipment are added to its book value only if they increase the future benefits from
the existing assets beyond its previously assessed standard of performance.

Projects under which assets are not ready for their intended use are disclosed under Capital
Work-in- Progress.

ii) Depreciation

Depreciation on Property, Plant and Equipment is provided on Written Down Value Method
(WDV).Depreciation is provided based on useful life of the assets as prescribed in Schedule II
to the Companies Act, 2013 except in respect of the following assets, where useful life is
different than those prescribed in Schedule II are used. The residual value is not more than
5% of the original cost of the Asset. The Asset residual value, useful lives and method of
depreciation are reviewed at each financial year end and adjusted prospectively, if
appropriate.

In respect of addition or extensions forming an integral part of existing assets and insurance
spares, including incremental cost arising on account of translation of foreign currency
liabilities for acquisition of Fixed Assets, depreciation is provided as aforesaid over the
residual life of the respective assets.

iii) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated
amortization/depletion and impairment loss, if any. The cost comprises purchase price,
borrowing costs, and any cost directly attributable to bringing the asset to its working
condition for the intended use and net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the intangible assets.

The amortization of the intangible assets with a finite useful life reflects the manner in which
the economic benefit is expected to be generated. The estimated useful life of amortized
intangible is reviewed and where appropriate are adjusted, annually.

iii) Impairment of Assets

Property, plant and equipment are stated at cost, less accumulated depreciation and
impairment. Cost includes all direct costs and expenditures incurred to bring the asset to its
working condition and location for its intended use. Trial run expenses (net of revenue) are
capitalized. Borrowing costs incurred during the period of construction is capitalized as part
of cost of the qualifying assets.

The gain or loss arising on disposal of an asset is determined as the difference between the
sale proceeds and the carrying value of the asset, and is recognized in the statement of profit
and loss.

2.5: RETIREMENT BENEFITS AND OTHER EMPLOYEE BENEFITS

i) POST EMPLOYMENT BENEFITS

DEFINED CONTRIBUTION PLAN: A defined contribution plan is a post- employment benefit plan under
which the company pays specified contributions to a separate entity. The company’s contribution to Provident
Fund is determined based on the fixed percentage of eligible employees salary and charged to statement of
profit and loss account on accrual basis.

ii) DEFINED BENEFIT PLAN

The Company has a defined benefit gratuity plan. Employee who has completed five years or more of
service gets a gratuity on departure at 15 days’ salary (last drawn salary) for each completed year of service.
The scheme of gratuity is unfunded.

The Company has made provision for payment of Gratuity to its employees. This Provision is made as per the
method prescribed under the Payment of Gratuity Act. The cost of providing gratuity under this plan is
determined on the basis of actuarial valuation at period/year end.

2.6: INVESTMENTS

All investments are classified as Long term Investments. On Initial recognition, all investments are measured
at cost. The cost comprises the Purchase price and directly attributable acquisition charges such as brokerage,
fees, and duties.

Long term Investments are carried at cost. However provision for diminution in value is made to recognize a
decline other than temporary in the value of the long term investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged
or credited to the statement of Profit & loss.

2.7: VALUATION OF INVENTORIES

Items of Inventories are measured at lower of cost or net realizable value after providing for obsolescence, if
any, except in case of by-products which are valued at the net realizable value. Cost of inventories Comprises
of all costs of purchase, cost of conversion and other costs including manufacturing overheads incurred in
bringing them to their respective present location and condition. Cost of raw materials, process Chemicals,
store and spares, packing materials, trading and other products are determined on the basis of valuation of the
finished goods as per the provisions so applicable.

i) Raw Material, Components, stores and spares

Raw Material, Components, stores and spares are valued at cost.

ii) Work-in-Progress and Finished Goods

Work-in-Progress is valued at lower of cost and net realizable value. Cost includes direct
materials and labour and a proportion of manufacturing overhead based on normal operating
capacity. Net Realizable value is the estimated selling price in the ordinary course of
business, less estimated cost of completion and estimated costs necessary to make the sale.

2.8: REVENUE RECOGNITION

Revenue from contracts with customers is recognized when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Group expects to
be entitled in exchange for those goods or services. Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction price (net of variable consideration) allocated to
that performance obligation. The transaction price of goods sold and services rendered is net of
variable consideration on account of various discounts and schemes offered by the Company as part
of the contract. The Company recognizes revenue when the amount of revenue can be reliably
measured, it is probable that future economic benefits will flow to the Company regardless of when
the payment is being made. Revenue from operations include sales of goods net of goods and service
tax, adjusted for discounts (net) and gain/loss on corresponding hedged contracts.

Sale of goods

Revenue from sale of goods is recognized at the point of dispatch of the finished goods to the
customers against invoice(s), The Company collects goods and services tax on behalf of the
government and therefore these are not economic benefits flowing to the companies, hence, they are
excluded from the revenues.

Export Benefits

Export benefits constituting import duty benefits under duty drawback are accounted for on accrual
basis. The same is recognized in the books of accounts in the year in which the right to receive the
duty drawback credit as per the terms of the scheme is established in respect of the export made.

Interest income

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

2.9: FOREIGN EXCHANGE TRANSACTION

Transactions denominated in foreign currencies are translated into functional currency using the
exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date
of the transaction.

Monetary items denominated in foreign currencies at the 31-03-2025 are restated at the 31-03-2025.
In the case of items which are covered by forward exchange contracts, the difference between the year
end rate and rate on the date of the contract is recognized as exchange difference and the premium
paid on forward contracts is recognized over the life of the contract.

Non -monetary foreign currency items are carried at cost.

In respect of integral foreign operations, all transactions are translated at rates prevailing on the date
of transaction or that approximates the actual rate at the date of transaction. Monetary assets and
liabilities are restated at the 31-03-2025 rate.

Any income or expense on account of exchange difference either on settlement or on translation is
recognized in the Profit and Loss Statement, except in case of long term liabilities, where they relate
to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

2.10: BORROWING COSTS

Borrowing cost attributable to the acquisition or construction of a qualifying asset are capitalized as
part of the cost of such asset. A qualifying asset is one that necessarily takes substantial period of time
to get ready for intended use. All other borrowing costs are recognized as an expense in the period in
which they are incurred. Borrowing Cost consist of Interest, Other Cost that an entity incurs in
connection with the borrowing of funds.

2.11: TAXATION

Income Tax comprised of Current, Deferred Taxes and Mat Credit.

i) Current Income Tax

Current Income Tax for the current and prior periods are measured at the amount expected to
be paid to the tax authorities, using the applicable tax rates. The tax rates and tax laws used to
compute the current tax amounts are those that are enacted or substantively enacted as at the
reporting date and applicable for the period. While determining the tax provisions, the
Company assesses whether each uncertain tax position is to be considered separately or
together with one or more uncertain tax positions depending the nature and circumstances of
each uncertain tax position. The Company offsets current tax assets and current tax liabilities,
where it has a legally enforceable right to set off the recognized amounts and where it intends
either to settle on a net basis, or to realize the asset and liability simultaneously.

ii) Deferred Income Tax

Deferred income tax is recognized using the balance sheet approach. Deferred income tax
assets and liabilities are recognized for deductible and taxable temporary differences arising
between the tax base of assets and liabilities and their carrying amount in financial statements,
except when the deferred income tax arises from the initial recognition of goodwill or an asset
or liability in a transaction that is not a business combination and affects neither accounting
nor taxable profits or loss at the time of the transaction. Deferred income tax assets are
recognized to the extent it is probable that taxable profit will be available against which the
deductible temporary differences and the carry forward of unused tax credits and unused tax
losses can be utilized. The carrying amount of deferred income tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the deferred income tax asset to be utilized.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to
apply in the period when the asset is realized or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted at the reporting date.

iii) MAT Credit

MAT Credit is recognized as an asset only when and to the extent there is convincing
evidence that the company will pay normal Income Tax during the specified period. In the
year in which the MAT Credit becomes eligible to be recognized as an asset in accordance
with the recommendation contained in Guidance Notes issued by the ICAI, the said asset is
created by way of a credit to the statement of profit & loss and shown as MAT Credit
entitlement. The Company reviews the same at each Balance Sheet date and writes down the
carrying amount of MAT Credit entitlement to the extent there is no longer convincing
evidence to the effect that company will pay normal Income Tax during the specified period.

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Mar 31, 2024

Note 2: Significant Accounting Policies

2.1: BASIS OF PREPARTION OF FINANCIAL STATEMENTS

i) These financial statements have been prepared in accordance with the Accounting
Standards notified under Section 133 of the Companies Act, 2013, read with Rule 7 of
the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies
Act, 2013.The financial statements have been prepared on going concern basis under
the historical cost convention on accrual basis.

ii) All amounts included in the financial statements are reported in Indian rupees (in
rupees). Due to rounding off, the numbers presented throughout the document may not
add up precisely to the totals and percentages may not precisely reflect the absolute
figures. Previous year figures have been regrouped/ re-arranged, wherever necessary.

iii) Current versus non-current classification

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

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

• Held primarily for the purpose of trading

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

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

All other assets are classified as non-current.

A liability⁷ is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

There is no unconditional right to defer the settlemenfmf^^Tidbility for at least
twelve months after the repoi^g^ _stee,_{3 pv|}

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The Company classifies all other liabilities as non-current.

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

The operating cycle is the time between the acquisition of assets for processing and
their realization in cash and cash equivalents. The Company has identified twelve
months as its operating cycle.

2.2: USES OF ESTIMATES

The preparation of financial statements in accordance with the accounting standards notified
u/s 133 of the Companies Act, 2013 requires the management to make judgments, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities
and the disclosure of contingent liabilities, at the end of the reporting period. Although these
estimates are based on the management’s best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result in the outcomes requiring a
material adjustment to the carrying amounts of assets or liabilities in future periods.

2.3: PROPERTY, PLANT AND EQUIPMENT

i) Tangible, assets

- Property, Plant and Equipment are stated at cost net of recoverable taxes, trade

discounts and rebates and include amounts added on revaluation, less accumulated
depreciation and impairment loss, if any. The cost of Assets comprises its purchase
price, borrowing cost and any cost directly attributable to bringing the asset to its
working condition for its intended use, net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the assets. Subsequent
expenditures related to an item of Property, Plant and Equipment are added to its book
value only if they increase the future benefits from the existing assets beyond its
previously assessed standard of performance.

Projects under which assets are not ready for their intended use are disclosed under
Capital Work-in- Progress.

ii) Depreciation

Depreciation on Property, Plant and Equipment is provided on Written Down Value
Method (WDV).Depreciation is provided based on useful life of the assets as
prescribed in Schedule II to the Companies Act, 2013 except in respect of the following
assets, where useful life is different than those prescribed in Schedule II are used. The
residual value is not more than 5% of the original cost of the Asset. The Asset residual
value, useful lives and method of depreciation are reviewed at each financial year end
and adjusted prospectively, if appropriate.

In respect of addition or extensions forming an integral part of existing assets and
insurance spares, including incremental cost arising on accouptof translation of foreign
currency liabilities for acquisition of Fixed Assets, depreciation is provided as aforesaid
over the

iii) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less
accumulated amortization/depletion and impairment loss, if any. The cost comprises
purchase price, borrowing costs, and any cost directly attributable to bringing the asset
to its working condition for the intended use and net charges on foreign exchange
contracts and adjustments arising from exchange rate variations attributable to the
intangible assets.

The amortization of the intangible assets with a finite useful life reflects the manner in
which the economic benefit is expected to be generated. The estimated useful life of
amortised intangible is reviewed and where appropriate are adjusted, annually.

iv) Impairment of Assets

Property, plant and equipment are stated at cost, less accumulated depreciation and
impairment. Cost includes all direct costs and expenditures incurred to bring the asset
to its working condition and location for its intended use. Trial run expenses (net of
revenue) are capitalised. Borrowing costs incurred during the period of construction is
capitalised as part of cost of the qualifying assets.

The gain or loss arising on disposal of an asset is determined as the difference between
the sale proceeds and the carrying value of the asset, and is recognised in the statement
of profit and loss.

2.4: Employee benefits

Short term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the period in which the employees render the
related service are recognised in respect of employees’ services up to the end of the reporting
period and are measured at the amounts expected to be paid when the liabilities are settled. The
liabilities are presented as current employee benefits obligations in the balance sheet.

Defined contribution plans

Payments to defined contribution plans are charged as an expense as they fall due. Payments
made to state managed retirement benefit schemes are dealt with as payments to defined
contribution schemes where the Group’s obligations under the schemes are equivalent to those
arising in a defined contribution retirement benefit scheme.

Defined benefit plans

For defined benefit retirement schemes the cost of providing benefits i ^determined using the
Projected Unit Credit Method, with actuarial valuation being carried out"at{eiich balance sheet
date. Re-measurement gains and losses of the net defined (Wnefit- Yiiiyility/fasset) are
recognised in^eih^elv ia.q^gr^ny^hensive income. The service cthe net defined benefit Ti^ility/(askt)i5 Tt§at§dJ£&^£^^b^e^tlg/rⁿployment costs.

Past service cost is recognised as an expense when the plan amendment or curtailment occurs
o^when any related restructuring costs or termination benefits are recognised, whichever is
earlier The retirement benefit obligation recognised in the balance sheet represents the present
value of the defined-benefit obligation as reduced by the fair value plan assets.

2 5- INVESTMENTS . . , . . '' ,

* ’ Property that is held for long term rental yields or for Capital Appreciation or both is classified

as Investment Property. Investment Property is measured at its cost, including related
transaction cost and where applicable Borrowing costs. Current investments are earned at
lower of cost or quoted/fair value. Provision for diminution in the value of long term
investments is made only if such a decline is other than temporary.

2.6: VALUATION OF INVENTORIES

Items of Inventories are measured at lower of cost or net realizable value after providing for
obsolescence, if any, except in case of by-products which are valued at the net realizable value.
Cost of inventories Comprises of all costs of purchase, cost of conversion and other costs
including manufacturing overheads incurred in bringing them to their respective present
location and condition. Cost of raw materials, process Chemicals, store and spares, packing
materials, trading and other products are determined on the basis of valuation of the finished
goods as per the provisions so applicable according to AS-2

i) Raw Material, Components, stores and spares

Raw Material, Components, stores and spares are valued at cost, as per the provision of
AS-2

ii) Work-in-Progress and Finished Goods

Work-in-Progress is valued at lower of cost and net realizable value. Cost includes
direct materials and labour and a proportion of manufacturing overhead based on
normal operating capacity. Net Realizable value is the estimated selling price in the
ordinary course of business, less estimated cost of completion and estimated costs
necessary to make the sale.

2.6: REVENUE RECOGNITION

Revenue from contracts with customers is recognised when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Group
expects to be entitled in exchange for those goods or services. Revenue towards satisfaction of
a performance obligation is measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation. The transaction price of goods sold
and services rendered is net of variable consideration on account of various discounts and
schemes offered by the Company as part of the contract. The Company recognises revenue
when the amount of revenue can be reliably measured, it is probable that future economic
benefits will flow to the Compaffcf\^h^n t l^aymentTsbeiiig made.

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IT

Sale of goods

Revenue from sale of products is recognized when the company transfers the control of goods
to the customer as per the terms of contract. The company considers whether there are other
promises in the contract that are separate performance obligations to which a portion of the
transaction price needs to be allocated. In the context of the sale of the products, separate
performance obligations may arise from freight and transport services as well as from services
directly related to the sale of the products. These services are generally performed at the time
that the control of the products is transferred. In a few exceptional cases, the freight and
transport services are performed after the control of the products has been transferred. In
determining the transaction price, the Group considers the effects of variable consideration
such as discounts, volume rebates, or other contractual price reductions, the existence of
significant financing component, non-cash considerations and consideration payable to the
customer (if any). However, variable consideration is only included if it is highly probable that
a significant reversal of revenue will not occur once the uncertainty related to the variable
consideration is resolved.

In case of domestic sales, the Group believes that the control gets transferred to the customer
on dispatch of the goods from the factory and in case of exports, revenue is recognised on
passage of control as per the terms of contract / incoterms. Variable consideration in the form
of volume rebates is recognised at the time of sale made to the customers and are offset against
the amounts payable by them.

Interest income

Interest income is accrued on a time proportion basis, by reference to the principal outstanding
and the effective interest rate applicable.

2.7: FOREIGN EXCHANGE TRANSACTION

Transactions denominated in foreign currencies are translated into functional currency using
the exchange rate prevailing on the date of the transaction or that approximates the actual rate
at the date of the transaction.

Monetary items denominated in foreign currencies at the year end are restated at year end
rates. In the case of items which are covered by forward exchange contracts, the difference
between the year end rate and rate on the date of the contract is recognized as exchange
difference and the premium paid on forward contracts is recognized over the life of the
contract.

Non -monetary foreign currency items are carried at cost.

In respect of integral foreign operations, all transactions are translated at rates prevailing on the
date of transaction or that approximates the actual rate at the date of transaction. Monetary
assets and liabilities are restated at the year end rates.

Any income or expense on account of exchange difference either on settlement or on
translation is recognized in the Profit and Loss Statement, except in case of long term
liabilities, where they relate to a^quis^i^rv of *jlxed: assets; in which case they are adjusted to
the carrying cost of such assets. 0 \ Y

for P.S. Ra] Steels Pvt^ /? < J^L.

-^=Br)£: V ft

2.8: BORROWING COSTS

Borrowing cost attributable to the acquisition or construction of a qualifying asset are
capitalized as part of the cost of such asset. A qualifying asset is one that necessarily takes ,
substantial period of time to get ready for intended use. All other borrowing costs are
recognized as an expense in the period in which they are incurred. Borrowing Cost consist of
Interest, Other Cost that an entity incurs in connection with the borrowing of funds. Investment
income* earned on the temporary investment of specific borrowing pending their expenditure
on qualifying assets is deducted from the borrowing cost eligible for capitalization.

2.9: TAXATION

^ Income Tax comprised of Current, Deferred Taxes and Mat Credit,

i) Current Income Tax

Current Income Tax for the current and prior periods are measured at the amount
expected to be paid to the tax authorities, using the applicable tax rates. The tax rates
and tax laws used to compute the current tax amounts are those that are enacted or
substantively enacted as at the reporting date and applicable for the period. While
determining the tax provisions, the Company assesses whether each uncertain tax
position is to be considered separately or together with one or more uncertain tax
positions depending the nature and circumstances of each uncertain tax position. The
Company offsets current tax assets and current tax liabilities, where it has a legally
enforceable right to set off the recognized amounts and where it intends either to settle
on a net basis, or to realize the asset and liability simultaneously.

ii) Deferred Income Tax

£ Deferred income tax is recognized using the balance sheet approach. Deferred income

tax assets and liabilities are recognized for deductible and taxable temporary
differences arising between the tax base of assets and liabilities and their carrying
amount in financial statements, except when the deferred income tax arises from the
initial recognition of goodwill or an asset or liability in a transaction that is not a
business combination and affects neither accounting nor taxable profits or loss at the
time of the transaction. Deferred income tax assets are recognized to the extent it is
probable that taxable profit will be available against which the deductible temporary
differences and the carry forward of unused tax credits and unused tax losses can be
utilized. The carrying amount of deferred income tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the deferred income tax asset to be
utilized. Deferred income tax assets and liabilities are measured at the tax rates that are
expected to apply in the period when the asset is realized or the liability is settled,
based on tax rates (and tax laws) that have been enacted ojrSU^Kntjyely enacted at the
reporting date.

iii) MAT Credit

HAT an asset only when and to mfe^^mere is convincing

eviaenCe''tnar me company will^ffy rftrfiai during the specified period. In

the year in which the MAT Credit becomes eligible to be recognized as an asset in
accordance with the recommendation contained in Guidance Notes issued by the ICAI,
the said asset is created by way of a credit to the statement of profit & loss and shown
as MAT Credit entitlement. The Company reviews the same at each Balance Sheet date
and writes down the carrying amount of MAT Credit entitlement to the extent there is
no longer convincing evidence to the effect that company will pay normal Income Tax
during the specified period.