Accounting Policies of Arcee Industries Ltd. Company

Mar 31, 2025

Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting
Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as prescribed under Section 133 of the Companies Act 2013 ('' the Act'') read with
rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the act. The accounting policies adopted
in the preparation of financial statements have been consistently applied. All assets and liabilities have
been classified as current or non-current as per the company''s normal operating cycle and other criteria
set out in the schedule III to the Companies Act, 2013. Based on the nature of operation and time
difference between the provision of services and realization of cash and cash equivalents, the company
has ascertained its operating cycle as 12 months for the purpose of current and non-current classification
of assets and liabilities.

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

Use of Estimates

The preparation of financial statements in conformity with Indian Accounting Standards requires
management to make estimates, judgments and assumptions. These estimates, judgments and
assumptions affect the application of accounting policies and reported amounts of assets and liabilities,
the disclosures of contingent assets and liabilities at the date of the financial statements and reported
amounts of revenue and expenses during the year. Accounting Estimates could change from period to
period. Actual results could differ from those estimates. Appropriate changes and estimates are made as
Management become aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which changes are made and, if
material, their effects are disclosed in the notes to the financial statements.

Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be readily measured, regardless of when the payment is being made.
Revenue is measured at fair value of the consideration received or receivable, after deduction of any
trade discounts, volume rebates and any taxes or duties collected on behalf of the government which are
levied on sales such as Goods and Services Tax. Revenue is recognized either in time or point of time,
when (or as) the Company satisfies performance obligations by transferring the goods or services to its
customers.

The company applies the revenue recognition criteria to each separately identifiable component of the
sales transaction as mentioned in Statement of Profit & Loss.

Dividend Income is recognized when the right to received payment is established.

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

Property, Plant and Equipment

i. Tangible assets are stated at cost net of accumulated depreciation and accumulated impairment losses,
if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working
condition of its intended use. The costs comprises of the purchase price, borrowings costs if capitalization
criteria are met and directly attributable costs of bringing the asset to its working condition for the
intended use. Any trade discounts and rebates are deducted in arriving at the cost of the tangible asset.
Any subsequent expenses related to a tangible asset 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
day to day repairs and maintenance expenditure and the cost of replacing parts, are charged to the
statement of profit and loss for the period during which such expenses are incurred.

ii. Cost of borrowing for assets taking substantial time to be ready for use is capitalized for the period up
to the time the asset is ready for use.

iii. Intangible assets are stated at cost of construction less accumulated amortized amount and
accumulated impairment losses, if any.

Depreciation and Amortization

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

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

Employee Benefits

i. Short Term Employee Benefits : Benefits payable to employees within 12 months of rendering services
such as wages, salaries, bonus, paid annual leave, etc are classified as Short Term Employee Benefits and
are recognized in the period in which the employee renders related services.

ii. Long Term/Post Employment/Termination Benefits : Actuarial Valuation is kept in view for
determining the liabilities, if any. Leave Encashment, if any, is accounted for on accrual basis.

iii. Provident Fund : On the basis of payments/contributions made to the concerned Provident Fund
authorities.

Investments

Property that are held for long term rental yields or for Capital Appreciation or both is classified as
Investment Property. Investment Property is measured at its cost, including related transaction cost and
where applicable borrowing costs. Current investments are carried at lower of cost or quoted/fair value.
Provision for diminution in the value of long term investments is made only if such a decline is other than
temporary.

Cash and Cash Equivalents

''Cash'' comprises of cash on hand and demand deposits with Bank. ''Cash Equivalents'' are short term,
highly liquid investment, that are readily convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.

Expenditure

Expenses are accounted on the accrual basis and provisions are made for all known losses and liabilities.

Taxes on income

Deferred Tax is recognized, subject to the consideration of prudence, in respect of deferred tax assets or
liabilities, on timing differences, being the difference between taxable income and accounting income
that originate in one period, and is reversible in one or more subsequent periods.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be
realized in the future; however where there is unabsorbed depreciation or carry forward of losses,
deferred tax assets are recognized only if there is a virtual certainty of realization of such assets and are
reviewed for the appropriateness of their respective carrying values at each reporting date.

Income Taxes are accrued in the same period the related revenue and expenses arise. A provision is made
for income tax annually, based on the tax liability computed, after considering tax allowances and
exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other
matters is probable. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise
to future economic benefits in the form of tax credit against future income tax liability, is recognized as an
asset in the Balance Sheet if there is convincing evidence that the company will pay normal tax in future
and the resultant asset can be measured reliably.

IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An
impairment loss is charged to the Statement of Profit & Loss of the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting periods is adjusted if there has been a
change in the estimate of the recoverable amount.

Borrowing Costs

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

FOREIGN CURRENCY TRANSACTION

There is no Foreign Currency Transaction during the year.

---

Mar 31, 2024

Basis of preparation of financial statements

The financial statements are prepared accordance with Indian Accounting Standards notified under The
Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). The Company
prepared its financial statements in accordance with Accounting Standards notified under section 133 of The
Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian
GAAP).

The Financial Statements are prepared on accrual basis under the historical cost convention, except for
certain Fixed Assets which are carried at revalued amounts.

Use of Estimates

The preparation of financial statements in conformity with Indian Accounting Standards requires
management to make estimates, judgments and assumptions. These estimates, judgments and assumptions
affect the application of accounting policies and reported amounts of assets and liabilities, the disclosures of
contingent assets and liabilities at the date of the financial statements and reported amounts of revenue
and expenses during the year. Accounting Estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes and estimates are made as Management become
aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made and, if material, their effects are disclosed in
the notes to the financial statements.

Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be readily measured, regardless of when the payment is being made. Revenue is
measured at fair value of the consideration received or receivable, after deduction of any trade discounts,
volume rebates and any taxes or duties collected on behalf of the government which are levied on sales
such as Goods and Services Tax. Revenue is recognized either in time or point of time, when (or as) the
Company satisfies performance obligations by transferring the goods or services to its customers.

The company applies the revenue recognition criteria to each separately identifiable component of the sales
transaction as mentioned in Statement of Profit & Loss.

Dividend Income is recognized when the right to received payment is established.

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

Fixed Assets

i. Tangible assets are stated at cost net of accumulated depreciation and accumulated impairment losses, if
any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working
condition of its intended use. The costs comprises of the purchase price, borrowings costs if capitalization
criteria are met and directly attributable costs of bringing the asset to its working condition for the intended
use. Any trade discounts and rebates are deducted in arriving at the cost of the tangible asset. Any
subsequent expenses related to a tangible asset 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 day to
day repairs and maintenance expenditure and the cost of replacing parts, are charged to the statement of
profit and loss for the period during which such expenses are incurred.

ii. Cost of borrowing for assets taking substantial time to be ready for use is capitalized for the period up to
the time the asset is ready for use.

iii. Intangible assets are stated at cost of construction less accumulated amortized amount and accumulated
impairment losses, if any.

Depreciation and Amortization

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

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

Employee Benefits

i. Short Term Employee Benefits : Benefits payable to employees within 12 months of rendering services
such as wages, salaries, bonus, paid annual leave, etc are classified as Short Term Employee Benefits and are
recognized in the period in which the employee renders related services.

ii. Long Term/Post Employment/Termination Benefits : Actuarial Valuation is kept in view for determining
the liabilities, if any. Leave Encashment, if any, is accounted for on accrual basis.

iii. Provident Fund : On the basis of payments/contributions made to the concerned Provident Fund
authorities.

Investments

Property that are held for long term rental yields or for Capital Appreciation or both is classified as
Investment Property. Investment Property is measured at its cost, including related transaction cost and
where applicable borrowing costs. Current investments are carried at lower of cost or quoted/fair value.
Provision for diminution in the value of long term investments is made only if such a decline is other than
temporary.

Cash and Cash Equivalents

''Cash'' comprises of cash on hand and demand deposits with Bank. ''Cash Equivalents'' are short term, highly
liquid investment, that are readily convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.

Expenditure

Expenses are accounted on the accrual basis and provisions are made for all known losses and liabilities.

Taxes on income

Deferred Tax is recognized, subject to the consideration of prudence, in respect of deferred tax assets or
liabilities, on timing differences, being the difference between taxable income and accounting income that
originate in one period, and is reversible in one or more subsequent periods.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be
realized in the future; however where there is unabsorbed depreciation or carry forward of losses, deferred
tax assets are recognized only if there is a virtual certainty of realization of such assets and are reviewed for
the appropriateness of their respective carrying values at each reporting date.

Income Taxes are accrued in the same period the related revenue and expenses arise. A provision is made
for income tax annually, based on the tax liability computed, after considering tax allowances and
exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other
matters is probable. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to
future economic benefits in the form of tax credit against future income tax liability, is recognized as an
asset in the Balance Sheet if there is convincing evidence that the company will pay normal tax in future and
the resultant asset can be measured reliably.

IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment
loss is charged to the Statement of Profit & Loss of the year in which an asset is identified as impaired. The
impairment loss recognized in prior accounting periods is adjusted if there has been a change in the
estimate of the recoverable amount.

Borrowing Costs

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

FOREIGN CURRENCY TRANSACTION

There is no Foreign Currency Transaction during the year.

---

Mar 31, 2014

1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 ("the 1960 Act") (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 ("the 2013 Act") in terms of General Circular 15/2013 dated 13 September, 2013 of the Ministry of Corporate Affairs, Government of lndia) and the relevant provisions of the 1956 Act/2013 Act, as applicable. The financial statements are prepared under the historical cost convention on going concern and on accrual basis.The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2. USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known materialise.

3. REVENUE RECOGNITION

i. Revenue from the sale of goods is recognised in the statement of

profit and loss when the significant risks and rewards of ownership have been transferred to the buyer. Revenue includes consideration received or receivable, excise duty, but net of discounts and other sales related taxes.

ii. Dividend income is recognized when the company''s right to receive

dividend is established, interest Income is recognized on a time proportion basis based on the amount outstanding and the rate applicable.

iii. Other Incomes are generally accounted on accrual basis as they are earned.

4. FIXED ASSETS

Tangible and intangible fixed assets are stated at cost of acquisition (net of CENVAT, wherever applicable), less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use. Direct costs are capitalized till the assets are ready to be put to use. Interest on borrowings; wherever applicable, attributable to new projects is capitalized and included in the cost of fixed assets as appropriate.

5. DEPRECIATION AND AMORTIZATION

Depreciation in respect of Fixed Assets, is provided adopting Straight Line Method over the useful life of the Assets as estimated by the Management. Depreciation for assets purchased/sold during the period is proportionately charged.

6. INVENTORIES

i. Raw Materials are valued at cost comprising purchase price, freight and handling, non refundable taxes and duties and other directly attributable costs

ii. Finished Products are valued at lower of cost and net realizable value.

iii.Scrap & By Products are valued at net realizable value.

iv. Stores and Spares are valued at cost comprising of purchase price, freight and handling, non refundable taxes and duties and other directly attributable costs.

7. EMPLOYEE BENEFITS

i. Short Term Employee Benefits : Benefits payable to employees within 12 months of rendering services such as wages, salaries, bonus, paid annual leave, etc are classified as Short Term Employee Benefits and are recognized in the period in which the employee renders related services

ii. Long Term/Post Employment/Termlnatiort Benefits The Company has taken an Employees Group Gratuity of LIC for meeting out the liability of Gratuity Premium paid is debited as and when due. Actuarial Valuation is also kept in view for determining the liabilities, if any. Leave Encashment, if any, is accounted for on accrual basis.

iii. Provident Fund : On the basis of payments/contributions made to the concerned Provident Fund authorities.

8. INVESTMENTS

Current investments are carried at lower of cost and quoted/fair value. Long Term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

9. CASH AND CASH EQUIVALENTS

Cash comprises of cash on hand and demand deposits with Bank. Cash Equivalents'' are short term, highly liquid investment, that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

10. EXPENDITURE

Expenses are accounted on the accrual basis and provisions are made for all known losses and liabilities.

11. TAXATION

Deferred Tax is recognized, subject to the consideration of prudence in respect of deferred tax, assets or liabilities, on timing differences, being the difference between taxable income and accounting income that originate in one period, and is reversible in one or more subsequent periods.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future; however where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets and are reviewed for the appropriateness of their respective carrying values at each reporting date.

Income Taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability is recognized as an asset in the Balance Sheet if there is convincing evidence that the company will pay normal tax in future and the resultant asset can be measured reliably.

12. IMPAIRMENT

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value An impairment loss, if any, is charged to the Statement of Profit and Loss in the period in which an asset is identified as impaired.The impairment loss, if any, recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount

13. BORROWING COSTS

Borrowing costs that are attributable to the acquisition, construction of qualifying assets are capitalized as part of the cost of such assets till such time the. asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the statement of profit and loss in the period in which they are incurred.

14. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognized when the Company has a present obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

Contingent Liability is disclosed in case of a present obligation arising from past events when it is not probable that an outflow of resources will be required to settle the obligation, or a present obligation when no reliable estimate is possible, or a possible obligation arising from past events where the probability of outflow of resources is remote.

Contingent Assets are neither recognized nor disclosed,

15. EVENTS OCCURRING AFTER THE DATE OF BALANCE SHEET

Material events occurring after date of Balance Sheet are taken into cognizance.

16. CASH FLOW STATEMENT

Cash Flows are reported using the indirect method, whereby profit/loss before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The Cash Flows from regular revenue generating; financing and investing activities of the company are segregated.

17. EARNING PER SHARE

The company reports basic and diluted earnings per share in accordance with Accounting Standard (AS-20) - Earnings per Share. Basic earnings per equity share have been computed by dividing net profit/loss after tax attributable to equity share holders by the weighted average numbers of equity shares outstanding during the year. Diluted earnings during the year adjusted for the effects of all dilutive potential equity shares per share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

18. SEGMENT INFORMATION

The company is engaged primarily in the business of Rigid PVC Pipes. The production facility is located at one place and the business is fully concentrated in India. As the basic of nature of these activities are governed by the same set of risks and returns, these have been grouped as a single business segment. Accordingly, segment reporting disclosure as envisaged in Accounting Standard (AS-17) "Segment Reporting", issued by the Institute of Chartered Accountants of India, is not applicable to the Company.

---

Mar 31, 2013

1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 The financial statements have been prepared on accrual basis under historical cost convention and going concern basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2. USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known/ materialize.

3. REVENUE RECOGNITION

L Revenue from the sale of goods is recognized in the statement of profit and loss when the significant risks and rewards of ownership have been transferred to the buyer. Revenue includes consideration received or receivable, excise duty but net of discounts and other sales related taxes.

ii. Dividend Income is recognized when the company''s right to receive dividend is established. Interest Income is recognized on a time proportion basis based on the amount outstanding and the rate applicable.

iii. Other Incomes are generally accounted on accrual basis as they are earned.

4. FIXED ASSETS

Tangible and intangible fixed assets are stated at cost of acquisition (net of CENVAT wherever applicable), less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use. Direct costs are capitalized till the assets are ready to be put to use. Interest on borrowings, wherever applicable, attributable to new projects is capitalized and included in the cost of fixed assets as appropriate.

5. DEPRECIATION AND AMORTIZATION

Depreciation in respect of Fixed Assets, is provided adopting Straight Line Method over the useful life of the Assets as estimated by the Management. Depreciation for assets purchased/sold during the period is proportionately charged.

6. INVENTORIES

i. Raw Materials are valued at cost comprising purchase price, freight and handling, non refundable taxes and duties and other directly attributable costs

ii. Finished Products are valued at lower of cost and net realizable value.

iii. Scrap & By Products are valued at net realizable value.

iv. Stores and Spares are valued at cost comprising of purchase price, freight and handling, non refundable taxes and duties and other directly attributable costs.

7. EMPLOYEE Benders

i. Short Term Employee Benefits : Benefits payable to employees within 12 months of rendering services such as wages, salaries, bonus, paid annual leave, etc are classified as Short Term Employee Benefits and are recognized in the period in which the employee renders related services, ii Long Term/Post Employment/Termination Benefits: The Company has taken an Employees Group Gratuity of LIC for meeting out the liability of Gratuity. Premium paid is debited as and when due. Actuarial Valuation is also kept in view for determining the liabilities, if any. Leave Encashment, if any, is accounted for on accrual basis,

iii. Provident Fund: On the basis of payments/contributions made to the concerned Provident Fund authorities.

8. INVESTMENTS

Current investments are carried at lower of cost and quoted/fair value. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

9. CASH AND CASH EQUIVALENTS

''Cash'' comprises of cash on hand and demand deposits with Bark. ''Cash Equivalents'' are short term, highly liquid investment, that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

10. EXPENDITURE

Expenses are accounted on the accrual basis and provisions are made for all known fosses and liabilities

11. TAXATION

Deferred Tax is recognized, subject to the consideration of prudence, in respect of deferred tax assets or liabilities, on timing differences, being the difference between taxable income and accounting income that originate in one period, and is reversible in one or more subsequent periods.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future; however where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets and are reviewed for the appropriateness of their respective carrying values at each reporting date

Income Taxes are accrued in the same period the related revenue and expenses arise A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the Balance Sheet if there is convincing evidence that the company will pay normal tax in future and the resultant asset can be measured reliably.

12. IMPAIRMENT

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value An impairment Joss, if any, is charged to the Statement of Profit and Loss in the period in which an asset is identified as impaired. The impairment loss, if any, recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount

13. BORROWING COSTS

Borrowing costs that are attributable to the acquisition, construction of qualifying assets are capitalized as part of the cost of such assets till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the statement of profit and loss in the period in which they are incurred,

14. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognized when the Company has a present obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

Contingent Liability is disclosed in case of a present obligation arising from past events when it is not probable that an outflow of resources will be required to settle the obligation, or a present obligation when no reliable estimate is possible, or a possible obligation arising from past events where the probability of outflow of resources is remote.

Contingent Assets are neither recognized nor disclosed.

15. EVENTS OCCURRING AFTER THE DATE OF BALANCE SHEET

Material events occurring after date of Balance Sheet are taken into cognizance.

16. CASH FLOW STATEMENT

Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The Cash Flows from regular revenue generating; financing and investing activities of the company are segregated.

17. EARNING PER SHARE

The company reports basic and diluted earnings per share in accordance with Accounting Standard (AS-20) - Earnings per Share, Basic earnings per equity share have been computed by dividing net profit after-tax attributable to equity share holders by the weighted average numbers of equity shares outstanding during the year. Diluted earnings during the year adjusted for the effects of all dilutive potential equity shares per share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year,

18. SEGMENT INFORMATION

The company is engaged primarily in the business of Rigid PVC Pipes. The production facility is located at one place and the business is fully concentrated in India. As the basic of nature of these activities are governed by the same set of risks and returns, these have been grouped as a single business segment. Accordingly, segment reporting disclosure as envisaged in Accounting Standard (AS-17) -Segment Reporting", issued by the Institute of Chartered Accountants of India, is not applicable to the Company.

---

Mar 31, 2012

1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the company have been prepared on accrual basis under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under section 211 (3C) of the Companies Act, 1956 and the relevant provisions thereof.

2. USE OF ESTIMATES

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates, if any, are recognized in the period in which the results are known/materialized.

3. REVENUE RECOGNITION

i. Sales Revenues are recognized when goods are invoiced and dispatched to customers, and are recorded inclusive of Excise Duty, but are net of Sales Returns, Trade Discounts and Sales Tax.

ii. Dividend Income is recognized when the company's right to receive dividend is established. Interest Income is recognized on a time proportion basis based on the amount outstanding and the rate applicable.

iii. Other Incomes are generally accounted on accrual basis as they are earned.

4. FIXED ASSETS

Tangible and intangible fixed assets are stated at cost of acquisition (net of CENVAT, wherever applicable), less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use. Direct costs are capitalized till the assets are ready to be put to use. Interest on borrowings, wherever applicable, attributable to new projects is capitalized and included in the cost of fixed assets as appropriate.

5. DEPRECIATION AND AMORTIZATION

Depreciation in respect of Fixed Assets, is provided adopting Straight Line Method over the useful life of the Assets as estimated by the Management.

Depreciation for assets purchased/sold during the period is proportionately charged.

6. INVENTORIES

i. Raw Materials are valued at cost comprising purchase price, freight and handling, non refundable taxes and duties and other directly attributable costs.

ii. Finished Products are valued at lower of cost and net realizable value.

iii. Scrap & By Products are valued at net realizable value.

iv. Stores and Spares are valued at cost comprising of purchase price, freight and handling, non refundable taxes and duties and other directly attributable costs.

7. EMPLOYEE BENEFITS

i. Short Term Employee Benefits ; Benefits payable to employees within 12 months of rendering services such as wages, salaries, bonus, paid annual leave, etc are classified as Short Term Employee Benefits and are recognized in the period in which the employee renders related services.

ii. Long Term/Post Employment/Termination Benefits:The Company has taken an Employees Group Gratuity of LIC for meeting out the liability of Gratuity. Premium paid is debited as and when due. Actuarial Valuation is also kept in view for determining the liabilities, if any. Leave Encashment, if any, is accounted for on accrual basis.

iii. Provident Fund : On the basis of payments/contributions made to the concerned Provident Fund authorities.

8. INVESTMENTS

Current investments are carried at lower of cost and quoted/fair value. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

9. CASH AND CASH EQUIVALENTS

'Cash' comprises of cash on hand and demand deposits with Bank. 'Cash Equivalents' are short term, highly liquid investment, that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

10. EXPENDITURE

Expenses are accounted on the accrual basis and provisions are made for all known losses and liabilities.

11. TAXATION

Deferred Tax is recognized, subject to the consideration of prudence, in respect of deferred tax assets or liabilities, on timing differences, being the difference between taxable income and accounting income that originate in one period, and is reversible in one or more subsequent periods.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future; however where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets and are reviewed for the appropriateness of their respective carrying values at each reporting date.

Income Taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the Balance Sheet if there is convincing evidence that the company will pay normal tax in future and the resultant asset can be measured reliably.

12. IMPAIRMENT

Whether events or changes in circumstances indicate that the carrying value of fixed assets may be impaired, the company subjects such assets to a test of recoverability, based on discounted cash flows expected from use or disposal of such assets. If the assets are impaired, the company recognizes an impairment loss as the difference between the carrying value and value in use.

13. BORROWING COSTS

Borrowing costs that are attributable to the acquisition, construction of qualifying assets are capitalized as part of the cost of such assets till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the statement of profit and loss in the period in which they are incurred.

14. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognized when the Company has a present obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

Contingent Liability is disclosed in case of a present obligation arising from past events when it is not probable that an outflow of resources will be required to settle the obligation, or a present obligation when no reliable estimate is possible, or a possible obligation arising from past events where the probability of outflow of resources is remote.

Contingent Assets are neither recognized nor disclosed.

15. EVENTS OCCURRING AFTER THE DATE OF BALANCE SHEET

Material events occurring after date of Balance Sheet are taken into cognizance.

16. CASH FLOW STATEMENT

Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The Cash Flows from regular revenue generating; financing and investing activities of the company are segregated.

17. EARNING PER SHARE

The company reports basic and diluted earnings per share in accordance with Accounting Standard (AS-20) - Earnings per Share. Basic earnings per equity share have been computed by dividing net profit after tax attributable to equity share holders by the weighted average numbers of equity shares outstanding during the year. Diluted earnings during the year adjusted for the effects of all dilutive potential equity shares per share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

18. SEGMENT INFORMATION

The company is engaged primarily in the business of Rigid PVC Pipes. The production facility is located at one place and the business is fully concentrated in India. As the basic of nature of these activities are governed by the same set of risks and returns, these have been grouped as a single business segment. Accordingly, segment reporting disclosure as envisaged in Accounting Standard (AS-17) "Segment Reporting", issued by the Institute of Chartered Accountants of India, is not applicable to the Company.

---

Mar 31, 2011

I) ACCOUNTING CONVENTION

The financial statements are prepared under the historical cost convention, having due regard to fundamental accounting assumptions of going concern, consistency and accrual, in compliance with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956.

II) SALES

Sales comprise sale of goods and includes excise duty, wherever applicable, but does not include sales tax.

III) FIXED ASSETS AND DEPRECIATION

a) Ail fixed assets are valued at cost less depreciation. All costs relating to the acquisition and installation of fixed assets are capitalised and include incidental expenses & financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets upto the date, the asset is put to use.

b) Depreciation is provided under the "Straight Line Method" at the rates provided in schedule XIV to the Companies Act, 1956.

c) Lease premium for leasehold land is amortised over the period of lease.

IV) VALUATION OF INVENTORIES

a) Raw Materials, Stores and Spares and Loose Tools are valued at cost.

b) Finished Goods is valued at lower of estimated cost or net realisable value.

c) Scrap is valued at net realisable value.

V) CENVAT CREDIT

Cenvat Credit of excise duty, service tax and education cess paid on inputs and capital goods is accounted for by reducing the purchase/service cost of the related inputs or the capital assets as the case may be.

VI) RETIREMENT BENEFITS

The Company has taken an Employees Group Gratuity of LIC for meeting out the liability of Gratuity. Premium paid is debited as and when due. Actuarial Valuation is also kept in view for determining the liabilities, if any. Leave Encashment, if any, is accounted for on accrual basis.

VII) EVENTS OCCURRING AFTER BALANCE SHEET DATE

Events occurring after Balance Sheet date have been considered in the preparation of Financial Statements.

VIII) CONTINGENT LIABILITIES

Contingent liabilities not provided for in the accounts are separately disclosed.

---

Mar 31, 2010

I) GENERAL

a) The financial statements are prepared under the historical cost convention and in accordance with the requirement of the Companies Act, 1956.

b) Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

II) BASIS OF ACCOUNTING

The company follows the mercantile system of Accounting and recongnises income and expenditure on accrual basis.

III) SALES

Sales comprise sale of goods and includes excise duty, wherever applicable, but does not include sales tax.

IV) FIXED ASSETS AND DEPRECIATION

a) All fixed assets are valued at cost less depreciation. All costs relating to the acquisition and installation of fixed assets are capitalised and include incidental expenses & financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets upto the date, the asset is put to use.

b) Depreciation is provided under the "Straight Line Method" at the rates provided in schedule XIV to the Companies Act, 1956.

c) Lease premium for leasehold land is amortised over the period of lease.

V) VALUATION OF INVENTORIES

a) Raw Materials, Stores and Spares and Loose Tools are valued at cost.

b) Finished Goods is valued at lower of estimated cost or net realisable value.

c) Scrap is valued at net realisable value.

VI) CENVAT CREDIT

Cenvat Credit of excise duty service tax and education cess paid on inputs and capital goods is accounted for by reducing the purchase/service cost of the related inputs or the capital assets as the case may be.

VII) RETIREMENT BENEFITS

The Company has taken an Employees Group Gratuity of LIC for meeting out the liability of Gratuity. Premium paid is debited as and when due. Actuarial Valuation is also kept in view for determining the liabilities, if any. Leave Encashment, if any, is accounted for on accrual basis.

VIII) EVENTS OCCURRING AFTER BALANCE SHEET DATE

Events occurring after Balance Sheet date have been considered in the preparation of Financial Statements.

IX) CONTINGENT LIABILITIES

Contingent liabilities not provided for in (he accounts are separately disclosed.