Accounting Policies of Ahmedabad Steelcraft Ltd. Company

Mar 31, 2025

A. CORPORATE INFORMATION

Ahmedabad Steel Craft Limited (''The Company'') was incorporated on 14-07-1972 vide Certificate of Incorporation No.
L27109GJ1972PLC011500 under the Companies Act, 1956. Its shares are listed on the Bombay Stock Exchange (''BSE''). The company
is engaged in the business of Trading of Steel and Electrical items and providing EPC services.

B. SUMMARY OF BASIS OF COMPLIANCE, BASIS OF PREPARATION AND PRESENTATION, CRITICAL ACCOUNTING
ESTIMATES, ASSUMPTIONS AND JUDGMENTS AND SIGNIFICANT ACCOUNTING POLICIES

(i) Basis of compliance

The financial statements comply in all material aspects with Indian Accounting Standards (''Ind AS'') notified under Section
133 of the Companies Act, 2013 (''the 2013 Act'') read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015
and other relevant provisions of the Act.

(ii) Basis of Preparation of Financial Statement

The financial statements have been prepared under the historical cost convention using the accrual method of accounting
basis, except for certain financial instruments that are measured at fair values at the end of each reporting period as explained
in the significant accounting polices below.

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 2013 Act.

(iii) Critical accounting estimates, assumptions and judgements

The preparation of the financial statements requires management to make estimates, assumptions and judgments that affect
the reported balances of assets and liabilities and disclosures as at the date of the financial statements and the reported
amounts of income and expense for the periods presented.

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 considering different assumptions and conditions.

Estimates and underlying assumptions are reviewed on an ongoing basis. Impact on account of revisions to accounting
estimates are recognised in the period in which the estimates are revised and future periods are affected.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying values of assets
and liabilities within the next financial year are discussed below :

(a) Useful life of Property, Plant and Equipment

The cost of property, plant and equipment is depreciated over the useful life, which is based on expected usage of the
assets, expected physical wear and tear, the repair and maintenance program and technoligical obsolescence arising
from changes and residual value

(b) Income taxes

Management judgment is required for the calculation of provision for income taxes and deferred tax assets and
liabilities. The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors
used in estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported
in the financial statements.

(c) Contingencies

Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/
claim/ litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

(d) Allowance for uncollectable accounts receivable and advances

Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate allowances
for estimated irrecoverable amounts. Individual trade receivables are written off when management deems them not
to be collectible. Impairment is made on the expected credit losses, which are the present value of the cash shortfall
over the expected life of the financial assets.

(iv) Use of estimates

The preparation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of
assets and liabilities as at the date of the Financial Statements and the reported amount of revenues and expenses during the
reporting period/year.

The difference between the actual results and estimates are recognised in the year in which the results are known/materialise.

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 products and the time between
the acquisition of assets for processing and their realisation in cash and cash equivalent, the Company has ascertained its
operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

(v) Fair Value Measurement

Fair value is the price that would be received to sell an asset or settle a liability in an ordinary transaction between market
participants at the measurement date. The fair value of an asset or a liability is measured using the assumption that market
participants would use when pricing an asset or liability acting in their best economic interest. The Company used valuation
techniques, which were appropriate in circumstances and for which sufficient data were available considering the expected
loss/ profit in case of financial assets or liabilities.

(vi) Property, Plant & Equipment (PPE)

Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and any
accumulated impairment losses. The cost of fixed assets comprises of its purchase price, non-refundable taxes & levies,
freight and other incidental expenses related to the acquisition and installation of the respective assets. Borrowing cost
attributable to financing of acquisition or construction of the qualifying fixed assets is capitalized to respective assets when
the time taken to put the assets to use is substantial.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it
is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged
to the income statement during the financial period in which they are incurred.

Depreciation methods, estimated useful lives and residual value

Depreciation on PPE is calculated using the straight-line method to allocate their cost, net of their residual values, over their
estimated useful lives. However, vehicles, being part of PPE are depreciated on a straight-line method over the shorter of
their respective useful lives as prescribed in Schedule -II to the Companies Act, 2013 . Freehold land is not depreciated.
Schedule II to the Companies Act 2013 (''Schedule'') prescribes the useful lives for various class of assets. For certain class
of assets, based on technical evaluation and assessment, Management believes that, the useful lives adopted by it reflects
the periods over which these assets are expected to be used. Accordingly for those assets, the useful lives estimated by the
management are different from those prescribed in the Schedule. Management''s estimates of the useful lives for various
class of fixed assets are as given below:

Useful lives and residual values of assets are reviewed at the end of each reporting period.

Losses arising from the retirement of, and gains or losses arising from disposal of PPE are recognised in the Statement of
Profit and Loss.

Leasehold land is amortised on a straight line basis over the period of lease.

Capital work-in-progress includes cost of property, plant and equipment under installation / under development as at the
balance sheet date.

Intangible Asset under development includes cost of development of new intangible assets to complete the assets as at the
balance sheet date.

Capital Expenditure on tangible assets for research and development is classified under property, plant and equipment and
is depreciated on the same basis as other property, plant and equipment.

(vii) Intangible Assets

Intangible assets that are acquired by the Company, which have finite useful lives, are measured at cost less accumulated
amortization and accumulated impairment losses (if any). Costs include expenditure that is directly attributable to the
acquisition of the intangible assets.

Subsequent Expenditure:

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to
which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, are recognized in
profit or loss as incurred.

Amortization of intangible assets with finite useful lives:

Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets from the
date that they are available for use.

Computer Softwares are amortised on stright line basis over the estimated useful lives of 5 years.

(viii) Impairment of Non Financial Assets

Assets that have an indefinite useful life, for example goodwill, are not subject to amortisation and are tested annually for
impairment and additionally whenever there is a triggering event for impairment. Assets that are subject to amortisation and
depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount of cash
generating units exceeds its recoverable amount.

(ix) Inventories

(1) Inventories are valued at the lower of cost or net realisable value.

Items of inventories are valued at cost or net realisable value, whichever is lower. Costs of inventories comprises of cost
of purchase and other costs incurred in bringing the inventories to their present location and condition.

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

(2) Cost of Inventory of services being provided by the company

The company measures its inventory of services at the costs of their production. These costs consist primarily of the
labour and other costs of personnel directly engaged in providing the service, including supervisory personnel, and
attributable overheads. Labour and other costs relating to sales and general administrative personnel are not included
but are recognized as expenses in the period in which they are incurred. The cost of inventories of a service does not
include profit margins or non-attributable overheads that are often factored into prices charged by service providers.

(x) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.

Financial Assets

(a) Initial recognition and measurement:

All financial assets are recognised initially at fair value and, in the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

(b) Subsequent measurement

For purposes of subsequent measurement financial assets are classified in two broad categories:

• Financial assets at fair value

• Financial assets at amortised cost

(c) Classification:

The Company classifies financial assets as subsequently measured at amortised cost, fair value through other
comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial
assets and the contractual cash flows characteristics of the financial asset.

(d) Financial assets measured at amortised cost:

Financial assets are measured at amortised cost when asset is held within a business model, whose objective is to hold
assets for collecting contractual cash flows and contractual terms of the asset give rise on specified dates to cash flows
that are solely for payments of principal and interest. Such financial assets are subsequently measured at amortised cost
using the effective interest rate (EIR) method. The losses arising from impairment are recognised in the Statement of
profit and loss. This category generally applies to trade and other receivables.

(e) Financial assets measured at fair value through other comprehensive income (FVTOCI):

Financial assets under this category are measured initially as well as at each reporting date at fair value. Fair value
movements are recognized in the other comprehensive income.

(f) Financial assets measured at fair value through profit or loss (FVTPL):

Financial assets under this category are measured initially as well as at each reporting date at fair value with all changes
recognised in profit or loss.

(g) Investment in Equity Instruments:

Equity instruments which are held for trading are classified as at FVTPL. All other equity instruments are classified as
FVTOCI. Fair value changes on the instrument, excluding dividends, are recognized in the other comprehensive income.
There is no recycling of the amounts from other comprehensive income to profit or loss.

(h) Derecognition of Financial assets:

A financial asset is primarily derecognised when the rights to receive cash flows from the asset have expired or the
Company has transferred its rights to receive cash flows from the asset, if an entity transfers a financial asset in a transfer
that qualifies for derecognition in its entirety and retains the right to service the financial asset for a fee, it shall recognise
either a servicing asset or a servicing liability for that servicing contract. If the fee to be received is not expected to
compensate the entity adequately for performing the servicing, a servicing liability for the servicing obligation shall
be recognised at its fair value. If the fee to be received is expected to be more than adequate compensation for the
servicing, a servicing asset shall be recognised for the servicing right at an amount determined on the basis of an
allocation of the carrying amount of the larger financial asset.

(i) Impairment of Financial assets:

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition
of impairment loss on the financial assets that are debt instruments and trade receivables. For recognition of impairment
loss on other financial assets and risk exposure, the Company determines that whether there has been a significant
increase in the credit risk since initial recognition.

Financial Liabilities

(a) Initial recognition and measurement:

All financial liabilities are recognised initially at fair value and, in the case of loans, borrowings and payables, net of
directly attributable transaction costs. Financial liabilities include trade and other payables, loans and borrowings
including bank overdrafts.

(b) Classification & Subsequent measurement:

I f a financial instrument that was previously recognised as a financial asset is measured at fair value through profit
or loss and its fair value decreases below zero, it is a financial liability measured in accordance with IND AS. Financial
liabilities are classified as held for trading, if they are incurred for the purpose of repurchasing in the near term.

The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities
at fair value through profit or loss.

(c) Loans and Borrowings:

Interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate
(EIR) method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through
EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement

of profit and loss. After initial recognition Gain and Liabilities held for Trading are recognised in statement of profit and
Loss Account.

(d) Derecognition of Financial Liabilities:

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised
in the Statement of Profit and Loss.

(e) Financial guarantee contract

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder
for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a
debt instrument.

Financial Guarantee contracts issued by a company are initially measured at their fair values and,if not designated as
FVTPL, are subsequently measured at the higher of:

• the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109'' Financial
Instruments''; and

• the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance
with the principles of Ind AS '' Revenue''

Offsetting financial instruments:

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis to realise the asset
and settle the liability simultaneously.

Subsequent recoveries of amounts previously written off are credited to Other Income.

(xi) Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash on hand and at bank, deposits held at call with banks, other
short-term highly liquid investments with original maturities of three months or less that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term
cash commitments.

For the purpose of the statement of cash flows, cash and cash equivalents 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.

(xii) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit for the year is adjusted for the effects of transactions of
a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities
of the Company are segregated. The Company considers all highly liquid investments that are readily convertible to known
amounts of cash to be cash equivalents.

(xiii) Borrowing Costs

Borrowing costs directly attributable to the acquisition, production or construction of qualifying assets is capitalized as part
of the cost of such qualifying assets till the date of being ready for intended use. Other borrowing cost is recognized as
expenditure in the period in which they are accrued.

(xiv) Investments

Investments that are readily realisable and are intended to be held for not more than one year from the Reporting Date, are
classified as Current Investments. All other investments are classified as Non Current Investments. Current Investments are
valued at lower of Cost and Fair value. Non Current Investments are valued at cost, except in the case of other than temporary
decline in value, in which case neccessary provision is made.

Section 129 (3) of the companies Act 2013, requires preparation of consolidated financial statement of the Company and
of all the subsidiaries including associate company and joint venture businesses in the same form and manner as that of
its own. Indian Accounting Standard (Ind AS) 28on accounting for Investments in Associates in consolidated Financial
Statements defines Associate as an entity, including an unincorporated entity such as a partnership, over which the investor
has significant influence and that is neither a subsidiary nor an interest in a joint venture. It mentions that if an investing party

holds, directly or indirectly through intermediaries, 20 per cent or more of the voting power of the enterprise, it is presumed
that the investing party does have significant influence, unless it can be clearly demonstrated that this is not the case.

The Company holds investment in the Light Works LLC which by ownership are deemed to be an associate company.
However, the Company does not exercise significant influence in the above mention entity, as demonstrated below:

i) The Company does not have any representation on the board of directors or corresponding governing body
of the investee.

ii) The Company does not participate in policy making process.

iii) The Company does not have any material transaction with the investee.

iv) The Company does not interchange any managerial personnel.

v) The Company does not provide any essential technical information to the investee.

vi) As these are not investments strategic to the core business of Ahmedabad Steel Craft Limited, these are intended to be
divested/liquidated in the near future.

As the interests in above enterprise originated for investment purposes and are not of sufficient proportions for the
company to be able to control or exercise significant influence on decisions of the investee, these are not being construed
as associate company for the purpose of consolidation and therefore it has not been consolidated in the financial statement
of the company.

(xv) Foreign Currency Transactions

Transactions in foreign exchange are accounted for at exchange rate ruling attransaction date. Monetary assets and liabilities
denominated in foreign currency are translated at the rates of exchange at the balance sheet date and the resultant gain or
loss is recognized in the Statement of Profit and Loss. Exchange difference arising on payment or translation of liabilities and
receivables is recognized as income or expense in the year in which the same arises.

---

Mar 31, 2024

1. COMPANY ''S OVERVIEW :-

Ahmedabad Steelcraft Limited (''The Company'') was incorporated on 14-07-1972 vide Certificate of Incorporation No. L27109GJ1972PLC011500 under the Companies Act, 1956. The company is engaged in the business of Trading and Export of Steel Windows and Door Sections.

2. STATEMENT OF COMPLIANCE: -

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended).

Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in accounting policy hitherto in use.

3. BASIS OF PREPARATION OF FINANCIAL STATEMENTS3.1. Basis of preparation and presentation

The financial statements have been prepared and presented under the historical cost convention on an accrual basis of accounting except for the following material items which have been measured at fair value.

• Investments in mutual funds & equity investments

• Derivative financial instrument

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, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if the market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value measurement and/or disclosure purposes in the financial statements is determined on such a basis except for leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.

3.2. Functional and presentation currency

The financial statements are presented in Indian Rupees, the currency of the primary economic environment in which the Company operates.

3.3. Use of Estimates

The preparation of financial statements are in conformity with the recognition and measurement principles of Ind AS which requires management to make critical judgments, estimates and assumptions that affect the reporting of assets, liabilities, income and expenditure and the accompanying disclosures, and the disclosure of contingent liabilities.

Estimates and underlying assumptions are reviewed on an ongoing basis and any revisions to the estimates are recognised in the period in which the estimates are revised and future periods are affected.

Key source of estimation of uncertainty at the date of financial statements, which may cause material adjustment to the carrying amount of assets and liabilities within the next financial year, is in respect of:

• Useful lives of property, plant and equipment (refer note no. 4.1)

• Valuation of deferred tax assets (refer note no. 4.8)

• Valuation of inventories (refer note no. 4.3)

• Provisions & contingent liabilities (refer note no. 4.6)

3.4 Current versus non-current classification

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of classification of its assets and liabilities as current and non-current.

An asset is treated as current when it is:

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

- Held primarily for the purpose of trading; or

- 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 current when:

- It is expected to be settled in normal operating cycle; or

- It is held primarily for the purpose of trading; or

- 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 noncurrent.

Deferred tax assets and liabilities are classified as noncurrent assets and liabilities respectively.

4. MATERIAL ACCOUNTING POLICIES4.1. Property, plant and equipment

Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and any accumulated impairment losses. The cost of fixed assets comprises of its purchase price, non-refundable taxes & levies, freight and other incidental expenses related to the acquisition and installation of the respective assets. Borrowing cost attributable to financing of acquisition or construction of the qualifying fixed assets is capitalized to respective assets when the time taken to put the assets to use is substantial.

When major items of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. The cost of replacement of any property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefit associated with the item will flow to the Company and its cost can be measured reliably. The costs of repairs and maintenance are recognized in the statement of profit and loss as incurred.

An item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of property, plant and equipment and are recognized in the statement of profit and loss.

4.1. A Depreciation

Depreciation is recognized in the statement of profit and loss on a straight line basis over the estimated useful lives of property, plant and equipment.

Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation to be recorded during any reporting period, with the effect of any change in estimate accounted for on a prospective basis. The useful lives and residual values are based on the Company''s historical experience with similar assets and take into account anticipated technological changes. The depreciation / amortization for future periods is revised if there are material changes from previous estimates.

The estimated useful lives are as follows:
Asset Category	No. of years
Office	60
Motor Car	8
Air Conditioner	10
Furniture	10
Office Equipment	5

Schedule II to the Companies Act, 2013 ("Schedule") prescribes the useful lives for various classes of tangible assets.

4.1.B Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangibles are not capitalised and the related expenditure is reflected in profit and loss in the period in which the expenditure is incurred. The useful lives of intangible assets are assessed as either finite or indefinite.

A summary of the policies applied to the Company''s intangible assets is as follows:
Intangible Assets	Method of Amortisation	Estimated Useful life
Software applications	on straight line basis	5 Years based on management estimate

The amortization period and the amortization method of intangible assets are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly.

4.2. Financial Instruments

Financial assets and financial liabilities are recognized when an entity becomes a party to the contractual provisions of the instruments.

Financial assets and liabilities are initially measured at fair value, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. The Company derecognizes financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired.

Financial Assets :

Financial assets measured at amortized cost

A financial asset is measured at the amortized cost if both the following conditions are met:

a) The Company''s business model objective for managing the financial asset is to hold financial assets in order to collect contractual cash flows, and

b) 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.

This category applies to cash and bank balances, trade receivables, loans and other financial assets of the Company. Such financial assets are subsequently measured at amortized cost using the effective interest method.

Financial assets measured at FVTOCI

A financial asset is measured at FVTOCI if both of the following conditions are met:

a) The Company''s business model objective for managing the financial asset is achieved both by collecting contractual cash flows and selling the financial assets, and

b) 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 on the principal amount outstanding.

Financial assets measured at FVTPL

A financial asset is measured at FVTPL unless it is measured at amortized cost or at FVTOCI as explained above.

This is a residual category applied to all other investments of the Company. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are recognized in the Statement of Profit and Loss.

4.2.1. Cash and cash equivalents

Cash and cash equivalents consist of cash on hand, short demand deposits and highly liquid investments, that are readily convertible into known amounts of cash and which are subject to an insignificant risk of change in value. Short term means investments with original maturities / holding period of three months or less from the date of investments.

Bank overdrafts that are repayable on demand and form an integral part of the Company''s cash management are included as a component of cash and cash equivalent for the purpose of statement of cash flow.

4.2.2. Investments

At the time of initial recognition of certain equity instruments, the Company had made an irrevocable election to present subsequent changes in the fair value of equity investments, not held for trading, in other comprehensive income as per para 5.7.5 of Ind AS 109. Rest of the equity instruments are classified as Financial assets measured at FVTPL.

4.2.3. Trade Receivables

Trade receivables are amounts due from customers for sale of goods or services performed in the ordinary course of business. Trade receivables are initially recognized at its transaction price and are classified as current assets as it is expected to be received within the normal operating cycle of the business.

The Company has submitted the related documents to the AD bank RBL and Kotak Bank as required under FEMA compliances for written off the Foreign Trade receivables related to Export of goods, the approval from AD Bank RBL and Kotak Bank is yet to be received as on 31.03.2024 and hence no effect has been provided in the books of the company however provision for expected credit loss has been created for trade receivables .

Financial Liabilities :

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.

4.2.4. Borrowings

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in the statement of profit and loss over the period of the borrowings using the effective interest method.

4.2.5. Trade payables

Trade payables are amounts due to vendors for purchase of goods or services acquired in the ordinary course of business and are classified as current liabilities to the extent it is expected to be paid within the normal operating cycle of the business.

4.2.6. Other financial assets and liabilities

Other non-derivative financial instruments are initially recognized at fair value and subsequently measured at amortized costs using the effective interest rate.

4.3. INVENTORIES

Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, and other costs incurred in bringing them to their respective present location and condition.

4.4. Impairment of Assets Financial assets

At each balance sheet date, the Company assesses whether a financial asset is to be impaired. Ind AS 109 requires expected credit losses to be measured through loss allowance. The Company measures the loss allowance for financial assets at an amount equal to lifetime expected credit losses if the credit risk on that financial asset has increased materially since initial recognition. If the credit risk on a financial asset has not increased materially since initial recognition, the Company measures the loss allowance for financial assets at an amount equal to 12-month expected credit losses. The Company uses both forward-looking and historical information to determine whether a material increase in credit risk has occurred.

Non-financial assets

Property, plant and equipment and intangible assets 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 disposal 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 recognized in the statement of profit and loss to such extent.

4.5. Employee Benefits

Short term employee benefits

Short term benefits payable before twelve months after the end of the reporting period in which the employees have rendered service are accounted as expense in statement of profit and loss.

Long term employee benefits Defined Contribution Plan:

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions for provident fund and pension as per the provisions of the Provident Fund Act, 1952 to the government. The Company''s contribution is recognised as an expense in the Profit and Loss Statement during the period in which the employee renders the related service. The company''s obligation is limited to the amounts contributed by it.

Compensated absences and earned leaves

The company offers a short-term benefit in the form of encashment of unavailed accumulated compensated absence above certain limit for all of its employees and same is being provided for in the books at actual cost.

4.6. A Provisions, contingent liabilities and contingent assets Contingent liability:

A possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company are disclosed as contingent liability and not provided for. Such liability is not disclosed if the possibility of outflow of resources is remote.

The company has filed an appeal before the CIT(A) against the order u/s 147 rws 143(3) for AY 2012-13. The said appeal is still pending for disposal. The contingent liability for the same works out to Rs. 1,43,06,790/-.

Contingent assets:

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets are not recognised and disclosed only when an inflow of economic benefits is probable.

Provisions:

A provision is recognized when as a result of a past event, the Company has a present obligation whether legal or constructive that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. If the obligation is expected to be settled more than 12 months after the end of reporting date or has no definite settlement date, the provision is recorded as non-current liabilities after giving effect for time value of money, if material. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

4.6B SEGMENT REPORTING (IND AS-108)

The Primary and Secondary reportable segments considered are Business Segments and Geographical Segments respectively. The Company is engaged in the business of Trading and Export of Steel Windows and Door sections.

The reportable Geographical Segments are:

i. India

ii. Other Countries

Segment Revenue (Sales Revenue) for the year is as under:		(Amount in Lakhs)
Particulars	2023-24	2022-23
A. India	31.62	141.94
B. Other Countries	43.17	77.66
Total	74.79	219.60

Segment Assets are not directly identifiable / properly allocable against each of the reportable segments. Fixed Assets, forming a substantial part of the total assets of the Company, are interchangeable between both the segments and not identifiable against any individual segment. Hence, no meaningful disclosure of segment assets is possible.

Information about major customers

Revenue of ? 31.62 Lakh (Previous Year ? 141.94 lakh) arose from Sale of Goods within India to Aakash Buildspace LLP (Entity exercising significant influence, the largest customer). No other single customer contributed 10% or more to the Company''s revenue for both FY 2023-24 & FY 2022-23.

4.7. Revenue Recognition

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.

a) Sale of Goods

Revenue from sale of goods consists of the Trading and Export of Steel Windows and Door Sections. Revenue from sale of goods is recognised where control is transferred to the Company''s customers at the time of shipment to or receipt of goods by the customers or on raising of sales invoices to the customers.

Domestic Revenue

Domestic Revenue is recognized when significant risks and rewards in respect of ownership of the goods are transferred to the customer, as per the terms of the order.

Further, the amounts collected on behalf of third parties such as government authorities for GST are excluded from the revenue since the same do not result in increase in Equity.

Export Revenue

Export sales includes shipping, handling and insurance costs billed to the customer and are recognized on the basis of Let Export Order (LEO) Date or AWB or B/L Date whichever is earlier. The timing of the transfer of control varies depending on the individual terms of the sales agreements.

b) Interest Income is recognised on time proportion basis.

c) Dividend Income on Investments is recognized when right to receive the payment is established.

4.8. Income taxes

Income tax expense comprises current and deferred tax expense. Income tax expenses are recognized in statement of profit and loss, except when they relate to items recognized in other comprehensive income or directly in equity, in which case, income tax expenses are also recognized in other comprehensive income or directly in equity respectively.

Current tax is the tax payable on the taxable profit for the year, using tax rates enacted or substantively enacted by the end of reporting period by the governing taxation laws, and any adjustment to tax payable in respect of previous periods. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax is recognized using the Balance Sheet approach on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred taxes arising from deductible and taxable temporary differences between the tax base of assets and liabilities and their carrying amount in the financial statements are recognized using substantively enacted tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.

Deferred tax asset are recognized only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilized. The carrying amount of deferred 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 assets to be utilized.

4.9. Earnings Per Share

a) Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The Company did not have any potentially dilutive securities in any of the periods presented.

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

Earnings per share (EPS), is calculated as under:
Particulars	For the year ended on 31st March, 2024	For the year ended on 31st March, 2023
Profit\(Loss) attributable to the Equity holders (Amount in Lakhs) (A)	(228.63)	(65.74)
Basic/Weighted average number Of Equity Shares outstanding during the year (B)	40,92,000	40,92,000
Nominal Value of Equity Share (Rs/Share)	10/-	10/-
Basic/Diluted Earning per share (Rs/Share)	(5.59)	(1.61)

4.10. Borrowing cost

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

All other borrowing costs are recognised in statement of profit and loss in the period in which they are incurred.

4.12. Foreign currency Transactions

a) Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction. The net gain or loss on account of exchange differences arising on settlement of foreign currency transactions are recognized as income or expense of the period in which they arise. Monetary assets and liabilities denominated in foreign currency as at the balance sheet date are translated at the closing rate. The resultant exchange rate differences are recognized in the statement of profit and loss. Non-monetary assets and liabilities are carried at the rates prevailing on the date of transaction.

b) The investment made in foreign company light work LLC in the form of investment in shares and loans and advances made is considered as Non-Integral operations. The loan has been translated at closing rate of foreign exchange and the resulted exchange difference is transfer to and accumulated in a foreign currency translation Reserve account. The exchange difference on repayment of loan is accounted for and transfer from foreign currency translation account to profit and loss account.

---

Mar 31, 2015

1. COMPANY'S OVERVIEW :-

Ahmedabad Steelcraft Limited ('The Company') was incorporated on 14-07-1972 vide Certificate of Incorporation No. L27109GJ1972PLC01 1500 under the Companies Act, 1956. The Company is engaged in the business of Trading and Export of Steel Windows and Door Sections.

2. SYSTEM OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS :-

a) The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) to comply with the applicable mandatory Accounting Standards read with Revised Schedule VI and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those followed in the previous year, except wherever specified.

b) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

c) The Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

d) Benefit on account of entitlements to import duty free material under the "Focus Market Scheme" & other Export Incentives are accounted for on Cash basis.

3. INVENTORIES:

There is no inventory of goods at the end of the year.

4. CASH AND CASH EQUIVALENTS :

Cash and cash equivalent comprises of cash on hand and balance with Central Bank of India Cash Credit Hypothecation account, Central Bank of India Group Gratuity account, Central Bank of India (Mumbai) account, HDFC Bank Ltd Current account, HDFC Bank Ltd EPC account, account and State Bank of India Bank (Odhav) account as on 31/03/2015.

5. DEPRECIATION :

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets in accordance with Schedule II of the Companies Act, 2013

6. FIXED ASSETS :

Fixed Assets are stated at cost inclusive of incidental and/or installation expenses like freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use less accumulated depreciation.

7. REVENUE RECOGNITION

* Revenue from sale of goods is recognized on transfer of significant risks and rewards of ownership in the goods to the buyer which is generally at the time of dispatch to the customer. Sales are recorded net of returns (if any), trade discounts, rebates, other pricing discounts, vat / sales tax.

* Interest on Investments / loans is recognized on a time proportion basis.

* Dividend Income on Investments is recognized when right to receive the payment is established.

8. FOREIGN EXCHANGE TRANSACTION:

a) Foreign Exchange transactions are converted into Indian Rupees at the rate of exchange prevailing on the date of transaction. Exchange rate difference is charged to Statement of Profit & Loss on Settlement of transactions during the year.

Unsettled transactions at the close of the year are considered taking into account the exchange rate prevailing at the year end and difference is charged to Statement of Profit & Loss.

b) The investment made in foreign Company Light work LLC in the form of investment in shares and loans and advances made is considered as Non-Integral operations. The loan has been translated at closing rate of foreign exchange and the resulted exchange difference is transfer to and accumulated in a foreign currency translation Reserve account. The exchange difference on repayment of loan is accounted for and transfer from foreign currency translation account to profit and loss account.

9. EMPLOYEE BENEFITS:

Gratuity paid to employee retrenched and other payments made to employee on retrenchment are charged to Statement of Profit & Loss on payment basis.

10. INVESTMENTS :

* Valuations of long term (non-current) quoted and unquoted investments are stated at cost less provision, if any, for permanent diminution in value. Current Investments are valued at cost as per consistent practice of the Company.

* The Company has made investments in the capital of Partnership Firm as Partner in the case of the following Partnership Firm.

Name of Limited Liability Partnership Profit/Loss Ratio

Aavkar Realty 46.00 %

Aavkar Projects (Ambavadi) 11.10 %

The Company has made investments in the capital of Limited Liability Partnership (LLP) as Partner in the case of the following Limited Liability Partnership (LLP).

Name of Partnership Firm Profit/Loss Ratio

Endor Properties LLP 6.22 % Tesla Properties LLP 11.72 %

Viewport Properties LLP 2.92 %

Notes Relating to Investment in Lightworks LLC.

During the F.Y. 2014-15, there is neither any new investment / conversion / sale made by the Company of Equity Shares (Common Share) of US $ 1 each fully paid up of Light works LLC. Further, the Company has also given loan to Light works LLC. Company has accounted interest receivable from Light works LLC in books of account as per accounting policies and requirement of accounting standard. Company has made total investment of 7,30,697 US$ the details of which are as under:

Common shares 50% 4,87,847 $

Loan Given 2,42,850 $

7,30,697 $

During the year ending on 31-12-2014 light works LLC has incurred losses and net worth of the Company is negative and there is less possibility of future profit from the operation, hence management is of opinion that there is permanent diminution in the value of Investment in light works LLC. The Long Term (Non Current) unquoted investment in shares of light works LLC is shown as Nominal Value at Re 1 each and provision is made for permanent diminution in value of Investment in accordance with the Accounting Standard-13.

11. PROVISION FOR TAXATION :

Tax expenses comprises of current tax and deferred tax:-

(i) CURRENT TAX:-

No Provision for taxation has been made as there is no tax liability in accordance with the direct tax laws prevailing for the relevant assessment years.

(ii) DEFERRED TAX

Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax Assets of Rs. 4,32,565/- has been created as per Accounting Standard 22 "Accounting of Tax on Income" issued by ICAI on timing difference as follow:-

Depreciation Provided in the Books Rs. 32,25,659

Depreciation allowable as per I.T. Act. Rs. 18,25,773

Timing Difference Rs. 13,99,886

12. EARNINGS PER SHARE

Basic earnings per share are computed using the weighted average number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.

Earning per share (EPS), is calculate as under :

Particulars 31/03/2015 31/03/2014

Profit/(Loss) attributable to the Shareholders (Rs.) (A) (2,23,37,609) 1,81,07,320 Basic/Weighted average number Of Equity Shares outstanding during the year (B) 40,92,000 40,92,000

Nominal Value of Equity Share (Rs.) 10/- 10/-

Basic/Diluted Earning per share (Rs.) (5.45) 4.43

13. RELATED PARTY TRANSACTIONS:-

Disclosure of transactions with Related Parties ,as required by Accounting Standard 18-" Related Party Disclosures" as specified in the Companies (Accounting Standard) Rules 2006 (as amended) has been set out in a separate statement annexed to this note. Related parties as defined under clause 3 of the Accounting Standard 18 have been identified on the basis of representation made by the management and information available with the Company.

14. GENERAL NOTES:

1. As regards the other Accounting Standards, they are statutorily applicable to our Company i.e Ahmedabad Steelcraft Limited but as there are no transactions inviting those Accounting Standards, no specific disclosures on the same are made.

2. Previous year's figures have been regrouped / rearranged wherever necessary to make them comparable with current year figures.

3. Figures have been rounded off to the nearest Rupee for the purpose of presentation.

4. Debtors and Creditors balances appearing in the balance sheet are subject to confirmation of respective parties.

5. Since there are no purchases from S.S.I. Units, there are no outstanding creditors of S.S.I. Units.

6. Amount paid or payable to Auditors:-

As at 31-03-15 As at 31-03-14

i) Audit fees 1,14,000 1,12,360

ii) Tax Audit Fees 57,000 56,180

1,71,000 1,68,540

7. Value of Imports, Expenditure and earning in foreign currency:

As at 31-03-15 As at 31-03-14

i) CIF value of Imports Nil Nil

ii) Spare parts and Components Nil Nil

iii) Earning in Foreign Currency

FOB Value of Export 1,80,41,765 10,91,34,684

Interest Income Received Nil 10,86,399

From Lightworks LLC

iv) Expenditure in foreign Currency Nil Nil

---

Mar 31, 2014

1. COMPANY ''S OVERVIEW :-

Ahmedabad Steelcraft Limited (The Company'') was incorporated on 14-07-1972 vide Certificate of Incorporation No. L27109GJ1972PLC011500 under the Companies Act, 1956. The company is engaged in the business of Trading and Export of Steel Windows and Door Sections.

2. SYSTEM OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS :-

a) The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) to comply with the applicable mandatory Accounting Standards read with Revised Schedule VI and the relevant provisions of the Companies Act, 1956 (as per Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September of the Ministry of Corporate Affairs). The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those followed in the previous year, except wherever specified.

b) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

c) The Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

d) Benefit on account of entitlements to import duty free material under the "Focus Market Scheme" & other Export Incentives are accounted for on Cash basis.

3. INVENTORIES :

There is no inventory of goods in transit. Inventory of Finished Goods is valued at cost or market value whichever is lower. There is no closing stock of Finished Goods as at 31.03.2014.

4. CASH AND CASH EQUIVALENTS :

Cash and cash equivalent comprises of cash on hand and balance with Central Bank of India Cash Credit Hypothecation account, Central Bank of India Group Gratuity account, Central Bank of India (Mumbai) account, Central Bank of India (Pune) account, HDFC Bank Ltd Current account, HDFC Bank Ltd EPC account, HDFC Bank Ltd EEFC account and State Bank of India Bank (Odhav) account as on 31/03/2014.

5. DEPRECIATION :

Depreciation on the assets has been provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

6. FIXED ASSETS :

Fixed Assets are stated at cost inclusive of incidental and/or installation expenses like freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use less accumulated depreciation.

7. REVENUE RECOGNITION

Revenue from sale of goods is recognized on transfer of significant risks and rewards of ownership in the goods to the buyer which is generally at the time of dispatch to the customer. Sales are recorded net of returns (if any), trade discounts, rebates, other pricing discounts, vat / sales tax.

Interest on Investments / loans is recognized on a time proportion basis.

Dividend Income on Investments is recognized when right to receive the payment is established.

8. FOREIGN EXCHANGE TRANSACTION:

a) Foreign Exchange transactions are converted into Indian Rupees at the rate of exchange prevailing on the date of transaction. Exchange rate difference is charged to Statement of Profit & Loss on final payment of the liability. Unsettled transactions at the close of the year are considered taking into account the exchange rate prevailing at the year end and difference is charged to Statement of Profit & Loss.

b) Variation due to fluctuation in exchange rate as on the date of Balance Sheet, the increase / decrease is accounted in respect of Investment and Advance to foreign company is accounted for in the Foreign Currency Transaction Reserve.

9. EMPLOYEE BENEFITS:

Gratuity paid to employee retrenched and other payments made to employee on retrenchment are charged to Statement of Profit & Loss on payment basis.

10. INVESTMENTS :

The Company has made investments in the capital of Partnership Firm as Partner in the case of the following Partnership Firm.

Name of Partnership Firm Profit/Loss Ratio

Aavkar Realty 46.00 %

Aavkar Projects (Ambavadi) 11.10 %

Endor Properties LLP 6.22 %

Tesla Properties LLP 11.72 %

The Company has also contributed Rs. 25,00,000/- towards capital in View Point Properties which has been shown as "Investment in the Capital of Partnership Firm" in Note - I "Other Current Investments". Notes Relating to Investment in Lightworks LLC. During the F.Y. 2013-14, there is neither any new investment / conversion / sale made by the company of Equity Shares (Common

11. TAXATION :

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

13. RELATED PARTY TRANSACTIONS:-

Disclosure of transactions with Related Parties ,as required by Accounting Standard 18-" Related Party Disclosures" as specified in the Companies (Accounting Standard) Rules 2006 (as amended) has been set out in a separate statement annexed to this note. Related parties as defined under clause 3 of the Accounting Standard 18 have been identified on the basis of representation made by the management and information available with the company._

14. GENERAL NOTES:

As regards the other Accounting Standards, they are statutorily applicable to our Company i.e Ahmedabad Steelcraft Limited but as there are no transactions inviting those Accounting Standards, no specific disclosures on the same are made. SCHEDULE FORMING PART OF ACCOUNTS AS ON 31ST MARCH, 2014

---

Mar 31, 2013

1. SYSTEM OF ACCOUNTING :-

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the company, except for certain fixed assets which have been revalued.

b) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

c) Benefit on account of entitlements to import duty free material under the "Duty Entitlement Passbook" scheme & other Export I ncentives are accounted for on Cash basis.

2. FIXED ASSETS :

Fixed Assets are stated at cost inclusive of incidental and/or installation expenses.

3. DEPRECIATION :

Depreciation on the assets has been provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

4. INVENTORIES :

There is no inventory of goods in transit. Inventory of Finished Goods is valued at cost or market value whichever is lower. There is no closing stock of Finished Goods as at 31.03.2013.

5. INVESTMENTS :

Valuation of long term (non-current) quoted investment are stated at cost less provision, if any, for permanent diminution in value. Unquoted long term (non-current) investment are valued at cost. Current Investment are valued at cost as per consistent practice of the Company.

6. FOREIGN EXCHANGE TRANSACTION:

a) Foreign Exchange transactions are converted into I ndian Rupees at the rate of exchange prevailing on the date of transaction. Exchange rate difference is charged to Statement of Profit & Loss on final payment of the liability. Unsettled transaction at the close of the year are considered taking into account the exchange rate prevailing at the year end and difference is charged to Statement of Profit & Loss.

b) Variation due to fluctuation in exchange rate as on the date of Balance Sheet, the increase / decrease is accounted in respect of I nvestment and Advance to foreign company is accounted for in the Foreign Currency Transaction Reserve.

c) The exchange rate difference so occurred in conversion of Equity Shares & Preference Shares into Common shares has been duly accounted for and transferred to Foreign Currency Translation Reserve.

7. EMPLOYEE BENEFITS :

Gratuity paid to employee retrenched charged to Statement of Profit & Loss. Other payment made to employee on retrenchment of employees charged to Statement of Profit & Loss on payment basis.

8. TAXATION :

Deferred tax liability of Rs. 2,32,108/- has been created as per Accounting Standard 22 "Accounting of Tax on Income" issued by ICAI on timing difference as follow..

Depreciation Provided Rs. 17,47,066

Depreciation allowable as per IT. Act. Rs. 24,98,223

Timing Difference Rs. 7,51,157

---

Mar 31, 2012

1. SYSTEM OF ACCOUNTING:-

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the com- pany, except for certain fixed assets which have been revalued.

b) The Company generally follows mercantile system of accounting and recognizes significant items of income and ex- penditure on accrual basis.

c) Benefit on account of entitlements to import duty free material under the "Duty Entitlement Passbook" scheme & other Export Incentives are accounted for on Cash basis.

2. FIXED ASSETS :

Fixed Assets are stated at cost inclusive of incidental and/or installation expenses. They are stated at revalued amount being fair market value on the basis of valuation made by approved valuer. Surplus on account of revaluation is credited to the revaluation reserve account.

3. DEPRECIATION :

Depreciation on the assets has been provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

4. INVENTORIES :

There is no inventories of raw materials, goods in transit, consumable stores, furnace oil and lubricants. Inventories of Finished Goods is valued at cost or market value whichever is lower. There is no closing stock of Finished Goods as at 31.03.2012.

5. INVESTMENTS :

Valuation of long term (non-current) quoted investment are stated at cost less provision, if any, for permanent diminution in value. Unquoted long term (non-current) investment are valued at cost. Current Investment are valued at cost as per consistent practice of the Company.

6. FOREIGN EXCHANGE TRANSACTION:

a) Foreign Exchange transactions are converted into Indian Rupees at the rate of exchange prevailing on the date of transaction. Exchange rate difference is charged to Statement of Profit & Loss on final payment of the liability. Unsettled transaction at the close of the year are considered taking into account the exchange rate prevailing at the year end and diff. is charged to Statement of Profit & Loss.

b) Variation due to fluctuation in exchange rate as on the date of Balance Sheet, the increase / decrease is accounted in respect of Investment and Advance to foreign company is accounted for in the Foreign Currency Transaction Reserve.

7. EMPLOYEE BENEFITS :

Gratuity paid to employee retrenched charged to Statement of Profit & Loss. Other payment made to employee on retrenchment of employees charged to Statement of Profit & Loss on payment basis.

8. TAXATION :

Deffered tax liability of Rs.3,55,955/- has been created as per Accounting Standard 22 "Accounting of Tax on I ncome" issued by ICAI on timing difference as follow.

---

Mar 31, 2011

1. SYSTEM OF ACCOUNTING :-

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the company, except for certain fixed assets which have been revalued.

b) The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

c) Benefit on account of entitlements to import duty free material under the "Duty Entitlement Passbook" scheme & other Export Incentives are accounted for on Cash basis which was hither to accounted for on accrual basis.

2. FIXED ASSETS:

Fixed Assets are stated at cost inclusive of incidental and/or installation expenses. They are stated at revalued amount being fair market value on the basis of valuation made by approved valuer. Surplus on account of revaluation is credited to the revaluation reserve account.

3. DEPRECIATION:

Depreciation on the assets has been provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

4. INVENTORIES:

There is no inventories of raw materials, goods in transit, consumable stores, furnace oil and lubricants. Inventories of Finished Goods is valued at cost or market value whichever is lower. There is no closing stock of Finished Goods as at 31.03.2011.

5. INVESTMENTS:

Valuation of long term quoted investment are stated at cost less provision, if any. for permanent diminution in value. Unquoted long term investment are valued at cost. Current Investment are valued at cost as per consistent practice of the Company.

6. FOREIGN EXCHANGE TRANSACTION:

a) Foreign Exchange transactions are converted into Indian Rupees at the rate of exchange prevailing on the date of transaction. Exchange rate difference is charged to Profit & Loss A/c on final payment of the liability. Unsettled transaction at the close of the year are considered taking into account the exchange rate prevailing at the year end and difference is charged to Profit & Loss Account.

b) Variation due to fluctuation in exchange rate as on the date of Balance Sheet, the increase / decrease is accounted in respect of Investment and Advance to foreign company is accounted for in the Foreign Currency Translation Reserve.

7, EMPLOYEE BENEFITS:

Gratuity paid to employee retrenched charged to Profit & Loss Account. Other payment made to employee on retrenchment of employees charged to Profit & Loss Account on payment basis.

---

Mar 31, 2010

1. SYSTEM OF ACCOUNTING :

(a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act. 1956, as adopted consistently by the company, except for certain fixed assets which have been revalued.

(b)The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

(c) Benefit on account of entitlements to import duty free material under the "Duty Entitlement Pass book" scheme is accounted for on accrual basis. Other Export incentives are also accounted for on accrual basis.

2. FIXED ASSETS:

Fixed Assets are stated at cost inclusive of incidental and/or installation expenses. They are stated at revalued amount being fair market value on the basis of valuation made by approved valuer, Surplus on account of revaluation is credited to the revaluation reserve account.

3. DEPRECIATION :

Depreciation on the Assets has been provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act. 1956.

4. INVENTORIES :

There is no inventory of raw materials, consumable stores, furnace oil and lubricants. Inventories of Finished goods is valued at cost or market value whichever is lower.

5. INVESTMENTS :

Valuation of long term quoted investment are stated at cost less provision, if any, for permanent diminu- tion in value. Unquoted long term investment are valued at cost. Current Investment are valued at cost as per consistent practice of the Company.

6. FOREIGN EXCHANGE TRANSACTION :

(a) Foreign Exchange transactions are converted into Indian Rupees at the rate of exchange prevailing on the date of transaction. Exchange rate difference is charged to Profit & Loss A/c on final payment of the liability. Unsettled transaction at the close of the year are considered taking into account the exchange rate prevailing at the year end and diff. is charged to Profit & Loss Account.

(b) Variation due to fluctuation in exchange rate as on the date of balance sheet, the increase/decrease is accounted in respect of Investment and Advances to foreign company is accounted for in the foreign currency transaction reseerve.

7. EMPLOYEE BENEFITS :

Gratuity paid to employee retrenched charged to profit & Loss Account. Other payment made to employee on retrenchment of employees charged to Profit & Loss Account on payment basis.