Shree Steel Wire Ropes Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1. Corporate Information:

Shree Steel Wire Ropes Limited (herein referred to as “SSWRL” or “the Company”), having its CIN: L45202MH1992PLC067466; is engaged in the business of production of Steel Wire Ropes, Strands, Slings, Three Pulley Type Regulating Equipment''s, Section Insulator Assembly and allied products. The Company is a Public Limited Company and is listed on Bombay Stock Exchange (BSE). The Address of the Registered Office is Gat No. 183-185, KIDC, Village Dheku, Taluka Khalapur, Khopoli - 410203 Dist. Raigad, Maharashtra, India.

2. Significant Accounting policies 2.1 Basis of Preparation :

Statement of Compliance:

The Company prepared its financial statements to comply with the accounting standards specified under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time. These financial statements include Balance Sheet as at 31 March 2025, the Statement of Profit and Loss including Other Comprehensive Income, Cash flows Statement and Statement of changes in equity for the year ended 31 March 2025, and a summary of significant accounting policies and other explanatory information (together hereinafter referred to as “financial statements”).

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 Schedule III of the Companies Act, 2013. Based on the nature of products and time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

The financial statements are presented in Indian Rupees.

Basis of Measurement:

The Financial Information for the year ended 31 March 2025 and year ended 31 March 2024 has been prepared on an accrual basis and a historical cost convention, except for the following financial assets and liabilities which have been measured at fair value or amortized cost at the end of each reporting period:

- Derivative financial instruments,

- Certain financial assets and liabilities (refer accounting policy regarding financial instruments)

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Summary of Significant Accounting Policies:

a. Classification of Current / Non-Current Assets and Liabilities:

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 liability is treated as current when:

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

• It is held primarily for the purpose of trading;

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

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Compan y classifies all other liabilities as non-current.

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

b. Fair value measurement

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

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

• In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

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

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

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

• Level 2—Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3—Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risk of the assets or liability and the level of fair value hierarchy as explained above.

c. Property, Plant and Equipment

Property, Plant and Equipment''s are stated at cost, net of accumulated depreciation and impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit and Loss for the period in which such expenses are incurred.

Capital work-in-progress comprises of property, plant and equipment that are not ready for their intended use at the end of reporting period and are carried at cost comprising direct costs, related incidental expenses, other directly attributable costs and borrowing costs.

Gains or losses arising from derecognition of property, plant and equipments are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the asset is derecognized.

Assets	Useful life (In Years)	Assets	Useful life (In Years)
Buildings	5-60	Furniture & Fixtures	10
Plant & Equipments	8-30	Office equipments	5-8
Electrical installations	8-10	Computers	3-6

Depreciation on Property, plant and equipment''s is calculated on pro rata basis on straight-line method using the management assessed useful lives of the assets which is in line with the manner prescribed in Schedule II of the Companies Act, 2013

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively.

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under Current/Non-current as assets and cost of assets not ready to use before such date are disclosed under ''Capital work in-progress''. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in the Statement of Profit and Loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss.

Property, plant and equipment with finite life are evaluated for recoverability whenever there is any indication that

their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

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

d. Intangible Assets

Intangible assets are stated at cost, net of accumulated amortization and impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use.

Gains or losses arising from derecognition of intangible assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the asset is derecognized.

Amortization on intangible assets is calculated on pro rata basis on straight-line method using the useful lives of the assets and in the manner prescribed in Schedule II of the Companies Act, 2013.

The residual values, useful lives and methods of depreciation of Intangible assets are reviewed at each financial year end and adjusted prospectively.

The Company has Goodwill as Intangible Asset. Goodwill is shown at excess of purchase consideration over net tangible assets valued at the time of Business Purchase. Goodwill is not amortized.

e. Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. the Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application, variable lease and low value asset.

f. Borrowing costs

Borrowing cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of borrowings.

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

g. 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. Impairment Loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use.

Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal.

Impairment losses are recognized in the statement of profit and loss

h. Non- Current assets held for sale

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. The Company is committed to the sale expected within one year from the date of classification.

Non-current assets held for sale are measured at the lower of their carrying amount and the fair value less costs to sell. Assets and liabilities classified as held for sale are presented separately in the balance sheet. Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.

In the current year there are no such amounts recognized.

I Inventories

Raw materials, traded goods, work in progress, finished goods, packing materials, project material for long term contracts, scrap materials and stores and spares are valued at lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost of raw materials, packing materials and stores and spares is determined on a first in first out(FIFO) basis and includes all applicable cost incurred in bringing goods to their present location condition.

Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct material as aforesaid, direct labour cost and a proportion of manufacturing overheads based on total manufacturing overheads to raw materials consumed.

Traded goods are value at lower of cost and net realizable value. Cost includes cost of purchase and other cost incurred in bringing the inventories at their location and condition. Cost is determined on weighted average basis.

The stocks of scrap materials have been taken at net realizable value.

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

j. Revenue recognition

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties including taxes. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services.

The following specific recognition must also be met before revenue is recognized.

Sale of goods

Revenue from sale of the goods is recognized when all the significant risk and rewards of ownership of the goods have been passed to the buyer, usually on dispatch of goods. The Company collects GST on behalf of the government and, therefore, these are not economic benefits to the Company. Revenue is disclosed net of discounts and returns, as applicable.

Interest

For all financial asset measured either at amortized cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR).

Dividends

Dividend income is recognized when the Company''s right to receive dividend is established by the reporting date

k. Employee benefits expense

A) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages, incentives, special awards, medical benefits etc. and the expected cost of ex-gratia are charged to the Statement of Profit & Loss account in the period in which the employee renders the related service. A liability is recognised for the amount expected to be paid when there is a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

B) Compensated absences

The Company has its leave policy applicable to all employees. The Company estimates and provides the liability for such short-term and long term benefits based on the terms of the policy. The Company does not treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Accordingly such long-term compensated advances are also provided in short term in financials statements even based on the actuarial valuation using the projected unit credit method at the year-end. Remeasurement gains/losses on defined benefit plans are immediately taken to the Standalone Statement of Profit & Loss and are not deferred.

C) Defined contribution plans:

Retirement benefit in the form of provident fund and ''Employer-Employee Scheme'' are defined contribution schemes. The Company recognises contribution payable to the provident fund and ''Employer Employee'' scheme as an expenditure, when an employee renders the related service. The Company has no obligation, other than the contribution payable to the funds. The Company''s contributions to defined contribution plans are charged to the Statement of Profit & Loss as incurred.

D) Defined benefit plan:

The Company operates a defined benefit gratuity plan for its employees. The costs of providing benefits under this plan is determined on the basis of actuarial valuation at each year-end using the projected unit credit method. Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the Balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to Statement of Profit & Loss in subsequent periods. Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. Past service costs are recognised in profit or loss on the earlier of:

- The date of the plan amendment or curtailment, and

- The date that the Group recognises related restructuring costs

l. Foreign currency translation

The Company''s financial statements are presented in Indian rupee (INR) which is also the Company''s functional currency.

Foreign currency transaction are recorded on initial recognition in the functional currency, using the exchange rate prevailing at the date of transaction.

Measurement of foreign currency item at the balance sheet date

Foreign currency monetary assets and liabilities denominated in foreign currency are translated at the exchange rates prevailing on the reporting date.

Exchange differences

Exchange differences arising on settlement or translation of monetary items are recognized as income or expense in the statement of profit and loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

However, There are no foreign currency transactions during the year.

m. Income taxes

Tax expenses comprise current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognized outside profit and loss is recognized outside profit and loss (either in other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred income tax is measured using the tax rates and the tax laws enacted or substantially enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for deductible temporary differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

At each reporting date, the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such writedown is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis.

Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.

n. Segment reporting

Segment reporting required as per Ind AS-108 is not applicable as the Company operates in one single primary business segment.

o. Earnings per share

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. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue 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 effect of all potentially dilutive equity shares.

p. Provisions, Contingent liabilities and capital commitments

A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit and loss. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

Capital Commitments includes the amount of purchase orders (net of advances) issued to parties for completion of assets.

q. Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand, cheques in hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purposes of cash flow statement consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

r. Financial instruments

Financial assets are divided into the following categories:

• financial assets carried at amortized cost

• financial assets at fair value through other comprehensive income

• financial assets at fair value through profit and loss;

Financial assets are assigned to the different categories by Management on initial recognition, depending on the nature and purpose of the financial assets. The designation of financial assets is re-evaluated at every reporting date at which a choice of classification or accounting treatment is available. Financial Assets like Investments in Subsidiaries are measured at Cost as allowed by Ind-AS 27 —

Separate Financial Statements and hence are not fair valued.

Financial assets carried at amortized cost:

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. These are non-derivative financial assets that are not quoted in an active market. Loans and receivables (including trade and other receivables, bank and cash balances) are measured subsequent to initial recognition at amortized cost using the effective interest method, less provision for impairment. Any change in their value through impairment or reversal of impairment is recognized in the income statement.

In accordance with Ind AS

Allowance on trade receivables and content advances based on historically observed default rates.

Impairment loss allowance recognized during the year is charged to Statement of Profit and Loss.

Financial assets at fair value through other comprehensive income:

Financial assets at fair value through other comprehensive income are non-derivative financial assets held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through profit or loss:

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss. It includes non-derivative financial assets that are either designated as such or do not qualify for inclusion in any of the other categories of financial assets. Gains and losses arising from investments classified under this category are recognized in the income statement when they are sold or when the investment is impaired.

In the case of impairment, any loss previously recognized in other comprehensive income is transferred to the income statement. Impairment losses recognized in the income statement on equity instruments are not reversed through the income statement. Impairment losses recognized previously on debt securities are reversed through the income statement when the increase can be related objectively to an event occurring after the impairment loss was recognized in the income statement.

When the Company considers that fair value of financial assets can be reliably measured, the fair values of financial instruments that are not traded in an active market are determined by using valuation techniques. The Company applies its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at each balance sheet date. Equity instruments measured at fair value through profit or loss that do not have a quoted price in an active market and whose fair value cannot be reliably measured are measured at cost less impairment at the end of each reporting period.

An assessment for impairment is undertaken at least at each balance sheet date:

A financial asset is derecognized only where the contractual rights to the cash flows from the asset expire or the financial asset is transferred and that transfer qualifies for derecognition. A financial asset is transferred if the contractual rights to receive the cash flows of the asset have been transferred or the Company retains the contractual rights to receive the cash flows of the asset but assumes a contractual obligation to pay the cash flows to one or more recipients. A financial asset that is transferred qualifies for derecognition if the Company transfers substantially all the risks and rewards of ownership of the asset, or if the Company neither retains nor transfers substantially all the risks and rewards of ownership but does transfer control of that asset.

Financial liabilities:

Financial liabilities are classified as either ''financial liabilities at fair value through profit or loss'' or ''other financial liabilities''. Financial liabilities are subsequently measured at amortized cost using the effective interest method or at fair value through profit or loss.

Financial liabilities are classified as at fair value through profit or loss when the financial liability is held for trading such as a derivative, except for a designated and effective hedging instrument, or if upon initial recognition it is thus designated to eliminate or significantly reduce measurement or recognition inconsistency or it forms part of a contract containing one or more embedded derivatives and the contract is designated as fair value through profit or loss. Financial liabilities at fair value through profit or loss are stated at fair value. Any gains or losses arising of held for trading financial liabilities are recognized in profit or loss. Such gains or losses incorporate any interest paid and are included in the "other gains and losses" line item.

Other financial liabilities (including borrowing and trade and other payables) are subsequently measured at amortized cost using the effective interest method.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

A financial liability is derecognized only when the obligation is extinguished, that is, when the obligation is discharged or cancelled or expires. Changes in liabilities'' fair value that are reported in profit or loss are included in the income statement within finance costs or finance income.

s. Derivative financial instruments

The Company has not entered into any Derivative contracts during the year.

t. Government grants:

Government grants are recognized where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with.

When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed.

When the grant relates to an asset, it''s recognition as income in the statement of profit and loss is linked to fulfilment of associated export obligations.

The Company has chosen to present grants received to income as other income in the statement of profit and loss.

Note 2.2.:Significant accounting judgements, estimates and assumptions

In the course of applying the policies outlined in all notes, the Company is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future period, if the revision affects current and future period.

In the course of applying the policies outlined in all notes, the Company is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur. The Company uses the following critical accounting estimates in preparation of its financial statements:

1. Revenue Recognition:

The Company applied judgements that significantly affect the determination of the amount and timing of revenue from contracts at a point in time with customers, such as identifying performance obligations in a sales transaction. Also, certain contracts of sale include volume rebates that give rise to variable consideration. In respect of long-term contracts significant judgments are used in:

A) Determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

B) Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected total contract cost as at the reporting date.

2. Cost to complete

The Company''s management estimate the cost to complete for each project for the purpose of revenue recognition and recognition of anticipated losses of the projects, if any. In the process of calculating the cost to complete, Management conducts regular and systematic reviews of actual results and future projections with comparison against budget. The process requires monitoring controls including financial and operational controls and identifying major risks facing the Company and developing and implementing initiative to manage those risks. The Company''s Management is confident that the costs to complete the project are estimated.

3. Useful lives of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in current and future periods.

4. Provisions

The Company estimates the provisions that have present obligations as a result of past events, and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates. The timing of recognition requires application of judgement to existing facts and circumstances which may be subject to change.

5. Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystallising or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognized. Contingent assets are neither recognised nor disclosed in the financial statements.

6. Fair value measurement of financial instruments

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments

7. Provision for income tax and deferred tax assets

The Company uses estimates and judgements based on the relevant rulings in the areas of allocation of revenue, costs, allowances and disallowances which is exercised while determining the provision for income tax. A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised. Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Accordingly, the Company exercises its judgement to reassess the carrying amount of deferred tax assets at the end of each reporting period.

8. Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If an indication exists, or when the annual impairment testing of the asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or Cash-generating-unit''s (CGU''s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from the other assets or group of assets. When the carrying amount of an asset or CGU exceeds it recoverable amount, the asset is considered as impaired and it''s written down to its recoverable amount.

9. Employee benefits

The accounting of employee benefit plans defined benefit requires the Company to use assumptions. These assumptions have been explained under employee benefits note.

10. Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

---

Mar 31, 2024

2. Significant Accounting policies
2.1 Basis of preparation:

Statement of Compliance:

The Company prepared its financial statements to comply with the accounting
standards specified under section 133 of the Companies Act, 2013 read with Companies
(Indian Accounting Standards) Rules, 2015, as amended from time to time. These
financial statements include Balance Sheet as at 31 March 2024, the Statement of Profit
and Loss including Other Comprehensive Income, Cash flows Statement and Statement
of changes in equity for the year ended 31 March 2024, and a summary of significant
accounting policies and other explanatory information (together hereinafter referred to
as "financial statements”).

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 Schedule III of the
Companies Act, 2013. Based on the nature of products and time between the acquisition
of assets for processing and their realization in cash and cash equivalents, the Company
has ascertained its operating cycle as 12 months for the purpose of current/non-current
classification of assets and liabilities.

The financial statements are presented in Indian Rupees.

Basis of Measurement:

The Financial Information for the year ended 31 March 2024 and year ended 31 March
2023 has been prepared on an accrual basis and a historical cost convention, except for
the following financial assets and liabilities which have been measured at fair value or
amortized cost at the end of each reporting period:

- Derivative financial instruments,

- Certain financial assets and liabilities (refer accounting policy regarding financial
instruments)

Historical cost is generally based on the fair value of the consideration given in
exchange for goods and services. Fair value is the price that would be received to sell an

asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date.

Summary of Significant Accounting Policies:

a. Classification of Current / Non-Current Assets and Liabilities:

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 liability is treated as current when:

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

• It is held primarily for the purpose of trading;

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

• There is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

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

b. Fair value measurement

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

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

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

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market
participants act in their economic best interest.

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

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

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

• Level 2 — Valuation techniques for which the lowest level input that is significant
to the fair value measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant
to the fair value measurement is unobservable

For the purpose of fair value disclosures, the Company has determined classes of assets
and liabilities on the basis of the nature, characteristics and risk of the assets or liability
and the level of fair value hierarchy as explained above.

c. Property, Plant and Equipment

Property, Plant and Equipment''s are stated at cost, net of accumulated depreciation and
impairment losses, if any. The cost comprises purchase price, borrowing costs if
capitalization criteria are met and directly attributable cost of bringing the asset to its
working condition for the intended use. Any trade discounts and rebates are deducted in
arriving at the purchase price.

Subsequent expenditure related to an item of property, plant and equipment is added to
its book value only if it increases the future benefits from the existing asset beyond its
previously assessed standard of performance. All other expenses on existing property,
plant and equipment, including day-to-day repair and maintenance expenditure and cost
of replacing parts, are charged to the Statement of Profit and Loss for the period in which
such expenses are incurred.

Capital work-in-progress comprises of property, plant and equipment that are not ready
for their intended use at the end of reporting period and are carried at cost comprising
direct costs, related incidental expenses, other directly attributable costs and borrowing
costs.

Gains or losses arising from derecognition of property, plant and equipments are
measured as the difference between the net disposal proceeds and the carrying amount of
the asset and are recognized in the Statement of Profit and Loss when the asset is
derecognized.

Depreciation on Property, plant and equipment''s is calculated on pro rata basis on
straight-line method using the management assessed useful lives of the assets which is in
line with the manner prescribed in Schedule II of the Companies Act, 2013.

The residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial year end and adjusted prospectively.

Advances paid towards the acquisition of property, plant and equipment outstanding at
each Balance Sheet date is classified as capital advances under Current/Non-current as
assets and cost of assets not ready to use before such date are disclosed under ''Capital
work in-progress''. Subsequent expenditures relating to property, plant and equipment is
capitalized only when it is probable that future economic benefits associated with these
will flow to the Company and the cost of the item can be measured reliably. Repairs and
maintenance costs are recognized in the Statement of Profit and Loss when incurred. The
cost and related accumulated depreciation are eliminated from the financial statements
upon sale or retirement of the asset and the resultant gains or losses are recognized in the
Statement of Profit and Loss.

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

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

d. Intangible Assets

Intangible assets are stated at cost, net of accumulated amortization and impairment
losses, if any. The cost comprises purchase price, borrowing costs if capitalization
criteria are met and directly attributable cost of bringing the asset to its working
condition for the intended use.

Gains or losses arising from derecognition of intangible assets are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and
are recognized in the Statement of Profit and Loss when the asset is derecognized.

Amortization on intangible assets is calculated on pro rata basis on straight-line method
using the useful lives of the assets and in the manner prescribed in Schedule II of the
Companies Act, 2013.

The residual values, useful lives and methods of depreciation of Intangible assets are
reviewed at each financial year end and adjusted prospectively.

The Company has Goodwill as Intangible Asset. Goodwill is shown at excess of
purchase consideration over net tangible assets valued at the time of Business Purchase.
Goodwill is not amortized.

e. Leases

The Company evaluates if an arrangement qualifies to be a lease as per the
requirements of Ind AS 116. Identification of a lease requires significant judgment. the
Company uses significant judgement in assessing the lease term (including anticipated
renewals) and the applicable discount rate. The Company determines the lease term as
the non-cancellable period of a lease, together with both periods covered by an option
to extend the lease if the Company is reasonably certain to exercise that option; and
periods covered by an option to terminate the lease if the Company is reasonably
certain not to exercise that option. In assessing whether the Company is reasonably
certain to exercise an option to extend a lease, or not to exercise an option to terminate a
lease, it considers all relevant facts and circumstances that create an economic incentive
for the Company to exercise the option to extend the lease, or not to exercise the option
to terminate the lease. The Company revises the lease term if there is a change in the
non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the
lease being evaluated or for a portfolio of leases with similar characteristics.

Applied the exemption not to recognize right-of-use assets and liabilities for leases with
less than 12 months of lease term on the date of initial application, variable lease and
low value asset.

f. Borrowing costs

Borrowing cost includes interest and amortization of ancillary costs incurred in
connection with the arrangement of borrowings.

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

g. 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. Impairment Loss is
provided to the extent the carrying amount of assets exceeds their recoverable amount.
Recoverable amount is the higher of an asset''s net selling price and its value in use.

Value in use is the present value of estimated future cash flows expected to arise from
the continuing use of an asset and from its disposal at the end of its useful life. Net
selling price is the amount obtainable from the sale of an asset in an arm''s length
transaction between knowledgeable, willing parties, less the costs of disposal.

Impairment losses are recognized in the statement of profit and loss.

h. Non- Current assets held for sale

The Company classifies non-current assets as held for sale if their carrying amounts will
be recovered principally through a sale rather than through continuing use. Actions
required to complete the sale should indicate that it is unlikely that significant changes
to the sale will be made or that the decision to sell will be withdrawn. The Company is
committed to the sale expected within one year from the date of classification.

Non-current assets held for sale are measured at the lower of their carrying amount and
the fair value less costs to sell. Assets and liabilities classified as held for sale are
presented separately in the balance sheet. Property, plant and equipment and intangible
assets once classified as held for sale are not depreciated or amortized.

In the current year there are no such amounts recognized.

i. Inventories

Raw materials, traded goods, work in progress, finished goods, packing materials,
project material for long term contracts, scrap materials and stores and spares are
valued at lower of cost and net realizable value. However, materials and other items
held for use in the production of inventories are not written down below cost if the
finished products in which they will be incorporated are expected to be sold at or above
cost. Cost of raw materials, packing materials and stores & spares is determined on a
first in first out (FIFO) basis and includes all applicable cost incurred in bringing goods
to their present location condition.

Work-in-progress and finished goods are valued at lower of cost and net realizable
value. Cost includes direct material as aforesaid, direct labour cost and a proportion of
manufacturing overheads based on total manufacturing overheads to raw materials
consumed.

Traded goods are value at lower of cost and net realizable value. Cost includes cost of
purchase and other cost incurred in bringing the inventories at their location and
condition. Cost is determined on weighted average basis.

The stocks of scrap materials have been taken at net realizable value.

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

j. Revenue Recognition

Revenue is measured based on the consideration specified in a contract with a customer
and excludes amounts collected on behalf of third parties including taxes. Revenue is
recognized upon transfer of control of promised products or services to customers in an
amount that reflects the consideration we expect to receive in exchange for those
products or services.

The following specific recognition must also be met before revenue is recognized.

Sale of goods

Revenue from sale of the goods is recognized when all the significant risk and rewards
of ownership of the goods have been passed to the buyer, usually on dispatch of goods.
The company collects GST on behalf of the government and, therefore, these are not
economic benefits to the company. Revenue is disclosed net of discounts and returns, as
applicable.

Interest

For all financial asset measured either at amortized cost or at fair value through other
comprehensive income, interest income is recorded using the effective interest rate
(EIR).

Dividends

Dividend income is recognized when the Company''s right to receive dividend is
established by the reporting date.

k. Employee benefits expense

A) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are
classified as short-term employee benefits. Benefits such as salaries, wages, incetives, special
awards, medical benefits etc. and the expected cost of ex-gratia are charged to the
Statement of Profit & Loss account in the period in which the employee renders the related
service. A liability is recognised for the amount expected to be paid when there is a present
legal or constructive obligation to pay this amount as a result of past service provided by the
employee and the obligation can be estimated reliably.

B) Compensated absences

The Company has its leave policy applicable to all employees. The Company estimates and
provides the liability for such short-term and long term benefits based on the terms of the
policy. The Company does not treats accumulated leave expected to be carried forward
beyond twelve months, as long-term employee benefit for measurement purposes.
Accordingly, such long-term compensated advances are also provided in short term in
financials statements even based on the actuarial valuation using the

projected unit credit method at the year-end. Remeasurement gains/losses on defined
benefit plans are immediately taken to the Statement of Profit & Loss and are not
deferred.

C) Defined contribution plans:

Retirement benefit in the form of provident fund and ''Employer-Employee Scheme'' are
defined contribution schemes. The Company recognises contribution payable to the
provident fund and ''Employer Employee'' scheme as an expenditure, when an employee
renders the related service. The Company has no obligation, other than the contribution
payable to the funds. The Company''s contributions to defined contribution plans are
charged to the Statement of Profit & Loss as incurred.

D) Defined benefit plan:

The Company operates a defined benefit gratuity plan for its employees. The costs of
providing benefits under this plan is determined on the basis of actuarial valuation at each
year-end using the projected unit credit method. Re-measurements, comprising of
actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net
interest on the net defined benefit liability and the return on plan assets (excluding
amounts included in net interest on the net defined benefit liability), are recognised
immediately in the Balance sheet with a corresponding debit or credit to retained earnings
through OCI in the period in which they occur. Re-measurements are not reclassified to
Statement of Profit & Loss in subsequent periods. Net interest is calculated by applying
the discount rate to the net defined benefit liability or asset. Past service costs are
recognised in profit or loss on the earlier of:

-The date of the plan amendment or curtailment, and

-The date that the Group recognises related restructuring costs

l. Foreign currency translation

The Company''s financial statements are presented in Indian rupee (INR) which is also
the Company''s functional currency.

Foreign currency transactions are recorded on initial recognition in the functional
currency, using the exchange rate prevailing at the date of transaction.

Measurement of foreign currency item at the balance sheet date

Foreign currency monetary assets and liabilities denominated in foreign currency are
translated at the exchange rates prevailing on the reporting date.

Exchange differences

Exchange differences arising on settlement or translation of monetary items are
recognized as income or expense in the statement of profit and loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency
are translated using the exchange rates at the dates of the initial transactions.

However, there are no foreign currency transactions during the year.

m. Income taxes

T ax expenses comprise current and deferred tax. Current income-tax is measured at the
amount expected to be paid to the tax authorities in accordance with the Income-tax
Act, 1961. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognized outside profit and loss is recognized
outside profit and loss (either in other comprehensive income or in equity). Current tax
items are recognized in correlation to the underlying transaction either in OCI or
directly in equity.

Deferred tax is provided using the liability method on temporary differences between
the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes at the reporting date. Deferred income tax is measured using the tax rates and
the tax laws enacted or substantially enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax
assets are recognized for deductible temporary differences only to the extent that there
is reasonable certainty that sufficient future taxable income will be available against
which such deferred tax assets can be realized.

At each reporting date, the Company re-assesses unrecognized deferred tax assets. It
recognizes unrecognized deferred tax asset to the extent that it has become reasonably
certain, as the case may be, that sufficient future taxable income will be available against
which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The
Company writes-down the carrying amount of deferred tax asset to the extent that it is
no longer reasonably certain, as the case may be, that sufficient future taxable income
will be available against which deferred tax asset can be realized. Any such write-down
is reversed to the extent that it becomes reasonably certain or virtually certain, as the
case may be, that sufficient future taxable income will be available.

Current tax assets and current tax liabilities are offset when there is a legally enforceable
right to set off the recognized amounts and there is an intention to settle the asset and
the liability on a net basis.

Deferred tax assets and deferred tax liabilities are offset when there is a legally
enforceable right to set off assets against liabilities representing current tax and where
the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by
the same governing taxation laws.

n. Segment reporting

Segment reporting required as per Ind AS-108 is not applicable as the Company
operates in one single primary business segment.

o. Earnings per share

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. The weighted average number of equity shares
outstanding during the period is adjusted for events such as bonus issue 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 effect of all potentially dilutive
equity shares.

---

Mar 31, 2014

(a) Basis of Preparation :

The Financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the Indian generally accepted accounting principles and Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956 and the relevant provisions thereof.

(b) Revenue Recognition:

(i) The Company recognise Sales which are inclusive of Central Excise and Sales Tax. Excise duty related to sales turnover is presented as a reduction from Gross sales.

(ii) Labour charges received is recognised as and when the Job work is completed and the material is ready to dispatch to the contractor.

(iii) Interest on Bank deposits is recognized on the time basis determined by the amount outstanding and the rate of interest applicable as per bank and where no significant uncertainty is there on its collectability.

(iv) Revenue is recognised only when collectability of the resulting revenue is reasonably assured.

(c) Fixed Assets:

(i) Tangible Assets

Fixed Assets are recorded at cost of acquisition or construction. In respect of assets acquired on purchase of Business the fixed assets are recorded at the value determined by competent valuers.

(ii) Intangible Assets

Goodwill is shown at excess of purchase consideration over net tangible assets valued at the time of Business Purchase.

(d) Depreciation:

Depreciation on Tangible fixed assets is provided on straight line method at the rates and the manner specified in Schedule XIV to the Companies Act, 1956.

(e) Impairment:

At each balance sheet date, the Company assesses whether there is any indication that the fixed assets have suffered an impairment loss. As per the assessment conducted by the Company at 31st March 2014, there were no indications that the fixed assets have suffered an impairment loss.

(f) Investments:

Investments are classified as Current or Long term in according with Accounting standard 13 on Accounting for investments. Long Term Non Current investments are valued at cost.

(g) Inventories:

Inventories are measured at lower of the cost and net realisable value. Cost of inventories comprises all costs of purchase (net of input credits i.e. Excise and MVAT), cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Cost of Stores and Spares, raw materials, trading and other products are determined on weighted average basis. Cost of Stock in process and finished stock is determined by the absorption costing method.

Excise duty on finished goods is not included while valuing finished good inventories.

(h) Employee benefits:

Employee benefits such as salaries, allowances, and other employee benefits such as provident and other funds are charged as expenses to the profit and loss account in the period in which the service is rendered.

Company has an obligation towards gratuity, Company has opened on its own a gratuity fund which is an unapproved gratuity fund for the benefits of its employees.

(i) Foreign Currency Transactions:

There are no foreign currency transactions during the year.

(j) Borrowing Cost:

There is no Borrowing cost attributable to the acquisition of qualifying fixed assets which is incurred during the year. All other borrowing cost are charged to profit and loss account.

(k) Taxes on Income:

(i) Provision for Income Tax comprises of Current Tax i.e. tax on taxable income computed as per Income Tax Law applicable for the relevant accounting year.

(ii) Provision for deferred taxation is made using the liability method at the current taxation on all timing differences to the extent that is probable that a liability or assets will crystalise as at the balance sheet date, unless there is evidence to the contrary, deferred tax assets pertaining to business loss are only recognised to the extent that there are deferred tax liabilities offsetting them.

(l) Contingent Liabilities:

Contingent liabilities as defined in Accounting Standard 29 on Provisions, Contingent Liabilities and Contingent Assets. These are disclosed by way of notes to the Balance Sheet. Provision is made in the accounts in respect of those liabilities which are likely to materialise after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

(m) Earnings per share

The Company reports Earnings per share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share". Basic EPS is computed by dividing the net profit after tax for year by the weighted average number of equity shares outstanding during the year.

There was no dilution or fresh issue of equity shares, hence Basic and Dilution EPS are same.

(n) Calls in Arrears:

Details of number of shares against the amount of calls in arrears, are not provided by the company.

(o) Cash Flow Statement:

The Cash Flow Statement is prepared by the Indirect method set out in Accounting Standard 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 on hand, balance in current accounts and demand deposits with the bank.

---

Mar 31, 2012

(a) Basis of Preparation:

The Financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the Indian generally accepted accounting principles and Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956 and the relevant provisions thereof.

(b) Revenue Recognition:

(i) The Company recognise Sales which are inclusive of Central Excise and Sales Tax. Excise duty related to sales turnover is presented as a reduction from Gross sales.

(ii) Labour charges received is recognised as and when the Job work is completed and the material is ready to dispatch to the contractor.

(iii) Revenue is recognised only when collectively of the resulting revenue is reasonably assured.

(c) Fixed Assets:

(i) Tangible Assets

Fixed Assets are recorded at cost of acquisition or construction. In respect of assets acquired on purchase of Business the fixed assets are recorded at the value determined by competent valuers.

(ii) Intangible Assets

Goodwill is shown at excess of purchase consideration over net tangible assets valued at the time of Business Purchase.

(d) Depreciation :

Depreciation on Tangible fixed assets is provided on straight line method at the rates and the manner specified in Schedule XIV to the Companies Act, 1956.

(e) Impairment:

At each balance sheet date, the Company assesses whether there is any indication that the fixed assets have suffered an impairment loss. As per the assessment conducted by the Company at 31st March 2012, there were no indications that the fixed assets have suffered an impairment loss.

(f) Investments:

Investments are classified as Current or Long term in according with Accounting standard 13 on Accounting for investments. Long Term Non Current investments are valued at cost.

(g) Inventories:

Inventories are measured at lower of the cost and net realisable value. Cost of inventories comprises all costs of purchase (net of input credits i.e. Excise and MVAT), cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Cost of Stores and Spares, raw materials, trading and other products are determined on weighted average basis. Cost of Stock in process and finished stock is determined by the absorption costing method. Excise duty on finished goods is not included while valuing finished good inventories.

(h) Employee benefits:

Employee benefits such as salaries, allowances, and other employee benefits such as provident and other funds are charged as expenses to the profit and loss account in the period in which the service is rendered. Company has an obligation towards gratuity, Company has opened on its own a gratuity fund which is an unapproved gratuity fund for the benefits of its employees.

(i) Foreign Currency Transactions:

There are no foreign currency transactions during the year.

(j) Borrowing Cost:

There is no Borrowing cost attributable to the acquisition of qualifying fixed assets which is incurred during the year. All other borrowing cost are charged to profit and loss account.

(k) Taxes on Income:

(i) Provision for Income Tax comprises of Current Tax i.e. tax on taxable income computed as per Income Tax Law applicable for the relevant accounting year.

(ii) Provision for deferred taxation is made using the liability method at the current taxation on all timing differences to the extent that is probable that a liability or assets will crystalise as at the balance sheet date, unless there is evidence to the contrary, deferred tax assets pertaining to business loss are only recognised to the extent that there are deferred tax liabilities off setting them.

(l) Contingent Liabilities:

Contingent liabilities as defined in Accounting Standard 29 on Provisions, Contingent Liabilities and Contingent Assets. These are disclosed by way of notes to the Balance Sheet. Provision is made in the accounts in respect of those liabilities which are likely to materialise after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

(m) Earnings per share

The Company reports Earnings per share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share". Basic EPS is computed by dividing the net profit after tax for year by the weighted average number of equity shares outstanding during the year. There was no dilution or fresh issue of equity shares, hence Basic and Dilution EPS are same.

(n) Calls in Arrears:

Details of number of shares against the amount of calls in arrears, are not provided by the company.

(o) Cash Flow Statement:

The Cash Flow Statement is prepared by the Indirect method set out in Accounting Standard 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 on hand, balance in current accounts and demand deposits with the bank.

---

Mar 31, 2011

(a) System of Accounting :

The Company follows accrual system of accounting for all items of revenue and costs.

(b) Sales:

Sales are inclusive of Central Excise and Sales Tax.

(c) Inflation :

Assets and liabilities are shown at historical costs and no adjustments are made for changes in purchasing power of money.

(d) Fixed Assets:

Fixed Assets are recorded at cost of acquisition or construction. In respect of assets acquired on purchase of Business the fixed assets are recorded at the value determined by competent valuers. Goodwill is shown at excess of purchase consideration over net tangible assets valued at the time of Business purchase.

(e) Depreciation:

Depreciation on fixed assets is provided on straight line method at the rates and the manner specified in Schedule XIV to the Companies Act, 1956.

(f) Investments:

Long Term investments are shown at cost. Provision for diminution in the value of investments is made to recognize a decline of other than temporary in nature.

(g) Inventories:

Inventories are valued at lower of cost or net realisable value, on the weighted average basis. The valuation of inventories has been considered net of Central Excise Duty and Maharashtra Value Added Tax.

(h) Revenue Recognition:

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

(i) Foreign Currency Transactions:

There are no Foreign Currency Transactions during the year

(j) Employee Retirement Benefit:

a) Company's contribution to Provident fund / superannuation fund are charged to Profit & Loss Account

b) The Company has provided the gratuity liability on the basis of actuarial Valuation.

c) Provision for unutilised leave due to employees is not provided.

(k) Taxes on Income:

Provision for Income Tax comprises of Current Tax i.e. tax on taxable income computed as per Income Tax Law applicable for the relevant accounting year.

Provision for deferred taxation is made using the liability method at the current taxation on all timing differences to the extent that is probable that a liability or assets will crystalise as at the balance sheet date, unless there is evidence to the contrary, deferred tax assets pertaining to business loss are only recognised to the extent that there are deferred tax liabilities off setting them.

(l) Borrowing Cost:

There is no Borrowing cost attributable to the acquisition of qualifying fixed assets is incurred during the year. All other borrowing cost are charged to profit & loss account.

(m) Contingent Liabilities:

These are disclosed by way of notes to the Balance Sheet. Provision is made in the accounts in respect of those liabilities which are likely to materialise after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

(n) Amortization of Miscellaneous Expenditure :

Preliminary and Public Issue expenses are nil.

(o) Calls in Arrears :

Details of number of shares against the amount of calls in arrears, are not provided by the company.

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Mar 31, 2010

(a) System of Accounting :

The Company follows accrual system of accounting for all items of revenue and costs.

(b) Sales:

Sales are inclusive of Central Excise & Sales Tax.

(c) Inflation :

Assets and liabilities are shown at historical costs and no adjustments are made for changes in purchasing power of money

(d) Fixed Assets:

Fixed Assets are recorded at cost of acquisition or construction.In respect of assets acquired on purchase of Business the fixed assets are recorded at the value determined by competent valuers. Goodwill is shown at excess of purchase consideration over net tangible assets valued at the time of Business purchase.

Interest on borrowed fund utilised for acquisition of Fixed Assets have been capitalised upto the date of Assets being put to use.

(e) Depreciation :

Depreciation on fixed assets is provided on straight line method at the rates and the manner specified in Schedule XIV to the Companies Act, 1956.

(f) Investments:

Long Term investments are shown at cost. Provision for diminution in the value of investments is made to recognize a decline of other than temporary in nature. Current investments are carried at the lower of cost or market value as at the balance sheet date.

(g) Inventories:

Inventories are valued at lower of cost or net realisable value, on the weighted average basis. The valuation of inventories has been considered net of Central Excise and Maharashtra Value Added Tax.

(h) Revenue Recognition:

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

(i) Foreign Currency Transactions:

There are no Foreign Currency Transactions during the year. (j) Employee Retirement Benefit:

(a) Companys contribution to Provident fund / superannuation fund are charged to Profit & Loss Account.

(b) The Company has provided the gratuity liability on the basis of acturial Valuation.

(c) Provision for unutilised leave due to employees is not provided.

(k) Taxes on Income :

Provisions for current Income Tax and Fringe Benefit Tax is made, after considering exemptions, deductions and carried forward losses available under the Income Tax Act, 1961.

Due to carried forward losses as per the Income Tax Act 1961, the company has not made any provision for Deferred Tax Liability / Deferred Tax Asset in terms of Accounting Standard - 22, on accounting for taxes on Income.

(l) Borrowing Cost:

Borrowing cost attributable to the acquisition of qualifying fixed assets is capitalised as part of the cost of such assets till such assets are put to use. All other borrowing cost are charged to profit and loss account.

(m) Contingent Liabilities:

These are disclosed by way of notes to the Balance Sheet. Provision is made in the accounts in respect of those liabilities which are likely to materialise after the year end, till the f inalisation of accounts and have material effect on the position stated in the Balance Sheet.

(n) Amortization of Miscellaneous Expenditure:

Preliminary and Public Issue expenses are nil.

(o) Calls in Arrears:

Details of number of shares against the amount of call in arrears, are not provided by the company.