Accounting Policies of Bharat Textiles & Proofing Industries Ltd. Company

Mar 31, 2024

1 Corporate information

M/s.Bharat Textiles and Proofing Industries Ltd (LI7IIITNI990PLC020072), is a public limited company domiciled in the state ofTamilnadu. The Company
is engaged in manufacturing and trading of Tarpaulin, HDPE and chemically processed canvas.

The financial statements were approved for issue by the Board of Directors on 30th May 2024.

2 Basis of preparation of financial statements

2.1 Basis of preparation and compliance with Ind AS

The Financial Statements of the Company as at and for the year ended 31 st March 2023 have been prepared in accordance with Indian Accounting Standards
(‘Ind AS'') notified under Section 133 of the Companies Act, 2013 (‘Act”), and the Companies (Indian Accounting Standards) Rules issued from time to time
and relevant provisions of the Companies Act, 2013 (collectively called as Ind AS).

2.2 Basis of measurement

The financial statements have been prepared on a going concern basis, using historical cost convention and on an accrual method of accounting, except for
financial assets, financial liabilities and defined benefit plans which have been measured at fair value, as required by relevant Ind AS.

2.3 Current and non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current / non-current classification.

An asset is classified as current if it satisfies any of the following criteria:

a) It is expected to be realised or intended to be sold in the Company''s normal operating cycle.

b) It is held primarily for the purpose of trading,

c) It is expected to be realised within twelve months after the reporting period, or

d) It is a cash or cash equivalent unless restricted from being exchanged or used to settle a liability for atleast twelve months after the reporting

period

All other assets are classified as non-current
A liability is classified as current if it satisfies any of the following criteria:

a) it is expected to be settled in the Company''s normal operating cycle,

b) it is held primarily for the purpose of trading,

c) it is due to be settled within twelve months after the reporting period

d) 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. Current liabilities include current portion of noncurrent financial liabilities
Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.

2.4 Use of estimates and assumptions

The preparation of the company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future
periods.

2.5 Property, plant and equipment

Property, plant and equipments are stated at historical cost less accumulated depreciation. Cost comprises of purchase price and other attributable costs,
if any , in bringing the assets to its working condition for its intended use.

Depreciation

(i) Depreciation on Property, plant and equipment is provided for on Straight Line method in the manner prescribed in Part C of Schedule II of the
Companies Act,2013 and reckoning the maximum residual value @ 5% of the original cost of the asset.

(ii) In respect of addition of assets during the year, depreciation has been provided on Pro-rata basis.

2.6 Inventories

Inventories are valued as under :

(I) Raw Materials, Stores & Consumables* - at lower of cost or net realisable value.

(ii) Work In progress** - at cost.

(iii) Finished Goods*** - at lower of cost or net realizable value.

Costs are arrived at by using FIFO method and it includes the followings :

* Cost of raw materials includes purchase price plus transportation charges, insurance charges, handling charges and other direct attributable costs to bring
the material to the present location as on the reporting date.

** Cost ofWork in progress includes landed cost of raw material plus proportionate labour and overheads on absorption costing basis.

*** Cost of finished goods includes landed cost of raw material plus proportionate labour and overheads on absorption costing basis.

2.7 Revenue recognition
Sale of goods

Revenue is recognised at the 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 such as sales tax, value added tax and Goods & Service Tax except excise duty.

Others

All other incomes are recognised when no significant uncertainty as to its subsequent realisation exists.

2.8 Employee benefits

(i) Short-term employee benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related
service is rendered.

(ii) Post Employment benefits

(a) Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal
or constructive obligation to pay further amounts. Contributions paid/payable for Provident Fund of eligible employees is recognized in the statement of
Profit and Loss each year.

(b) Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.The Company''s net obligation in respect of defined benefit
plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods,
discounting that amount and deducting the fair value of any plan assets.

Post employment benefits are recognized as an expense in the statement of profit and loss for the year in which the employee has rendered services. The
calculation of defined benefit obligation is performed by the management under projected unit credit method.

2.9 Financial instruments

Financial instruments are recognised when the Company becomes a party to the contractual provisions of the instrument. Regular way purchases and sales
of financial assets are recognised on trade-date, the date on which the Company commits to purchase or sell the asset.

(A) Financial Assets

The Company determines the classification of its financial assets at initial recognition. The classification depends on the Company''s business model
for managing the financial assets and the contractual terms of the cash flows.

The financial assets are classified in the following measurement categories:

a) Those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

b) Those to be measured at amortised cost.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt
instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether
the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive
income. At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit
or loss, transaction costs that are directly attributable to the acquisition of the financial asset.Transaction costs of financial assets carried at fair value through
profit or loss are expensed in profit or loss as incurred. Subsequent measurement of debt instruments depends on the Company''s business model for
managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt
instruments.

(i) Amortised Cost

The Company classifies its financial assets as at amortised cost only if both of the following criteria are met:

a) The asset is held within a business model with the objective of collecting the contractual cash flows, and

b) The contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding.

Financial assets at amortised cost include loans receivable, trade and other receivables, and other financial assets that are held with the objective of
collecting contractual cash flows.After initial measurement at fair value, the financial assets are measured at amortised cost using the effective interest rate
(EIR) method, less impairment.

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 in finance income in the statement of profit or loss.The losses arising from impairment are recognised in the Statement of Profit
or Loss in other income.

(ii) Fair value through other comprehensive income

Financial assets that are held for collection of contractual cash flows and for selling the financial assets, where the asset''s cash flows represent solely
payments of principal and interest, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through
other comprehensive income, except for the recognition of impairment gains or losses, and interest revenue which are recognised in profit or loss.When

the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity
to profit or loss and recognised in other gains/(losses). Interest income from these financial assets is included in other income using the effective interest
rate method.

(iii) Financial assets at fair value through profit or loss

The Company classifies the following financial assets at fair value through profit or loss:

a) Debt investments that do not qualify for measurement at amortised cost;

b) Debt investments that do not qualify for measurement at fair value through other comprehensive income; and

<) Debt investments that have been designated at fair value through profit or loss.

Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the assets expire, or when it transfers the financial asset
and substantially all the risks and rewards of ownership of the asset to another party.

(B) Financial Liabilities

The Company determines the classification of its financial liabilities at initial recognition.

Classification

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

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss. Loans and borrowings, payables are
subsequently measured at amortised cost.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

2.10 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or
less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash
and short-term deposits, as defined above.

2.11 Taxation

A. Current Tax

Current income tax is measured at the amount of tax expected to be payable on the taxable income for the year.

B. Deferred Tax

Deferred tax is recognised on temporary differences between carrying amounts of assets and liabilities in the financial statements and the corresponding
tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax
assets are generally recognised for all deductible temporary differences to the extend that it is probable that taxable profits will be available against which
those deductible temporary differences can be utilised.Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realised, based on the tax rates (and tax laws) that have been enacted or substantially enacted by the end
of the reporting period.Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

2.12 Segment accounting

The Company operates in a single segment i.e manufacturing and marketing of cotton canvas and hence not call for segmentwise disclosure of assets,
liabilities, revenues or expenses as prescribed under Indian Accounting Standard 108 on “Operating Segments”. The Company operated mainly in Indian
market during the year and there are no reportable geographical segments.

---

Mar 31, 2015

L. Corporate information

M/s Bharat Textiles and Proofing Industries Ltd is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in manufacturing and trading of processed canvas, Tarpaulin, HDPE and chemically processing canvas on Job work basis. The Company caters to both domestic and international market.

2 Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India and the provision of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and at historical cost. Accounting policies not specifically referred to otherwise are consistent with and are in consonance with generally accepted accounting principles.

2A, Use of estimates:

The preparation of financial statements requires estimates and assumption 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 are recognized in the period in which the results are known / materialised

B. Tangible fixed assets

Own fixed assets are stated at Cost less accumulated depreciation and impairment loss, if any. The Cost comprises original cost of acquisition inclusive of Inward freight, attributable borrowing cost, duties and expenditure incurred in acquisition, construction/installation.

C. Tangible assets and depreciation

Depreciation on tangible assets is provided on Straight line method at the rates and in the manner specified in Schedule II of the Companies Act 20l3.On addition / deductions made during the year the depreciation has been calculated on a pro-rata basis. '

D Foreign currency transaction

Trade transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. The difference in the rate between the transaction date and realization/ payment date is transferred to foreign exchange fluctuation a/c. The year end balance of Trade payable/receivable is converted into Indian Rupees at the closing rates. The resultant difference is accounted as profit/loss on foreign exchange fluctuation a/c.

E Borrowing cost

The Borrowing costs attributable to acquisition of fixed assets are capitalized.The other borrowing costs are recognized as an expense in the year in which they are incurred.

F Inventories

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, stores and spares, power and fuel material and other products are determined on FIFO method. The work in progress is determined at estimated cost and the finished goods are valued at lower of cost or estimated realizable value.

G. Revenue Recognition

Revenue is recognized only when it can be reliably measured and it's reasonable to expect ultimate collection. Revenue from operation includes Sale of goods and services. Sale of goods is recognized when significant risk and rewards of ownership of goods have been passed to the buyer. Sale of services is recognized on completion of services and transfer of significant risk and rewards to customer. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

H Retirement benefits

The Company offers its employee's defined contribution plans in the form of Provident fund and family pension fund. The provident fund, family pension fund covers substantially for all regular employees. Contribution to provident Fund and Pension Fund are charged to profit and loss account in the year of accrual.

Leave Salary is determined and provided in the accounts at the end of each year. However the Company does not have a system of carrying forward the benefits of leave credit of each employee.

The provision for Gratuity liability to employee is recognized at the present value of the amount payable determined using actuarial valuation technique.

I Deferred Taxation

In accordance with Accounting Standard (AS 22) "Accounting for Taxes on Income" issued by Institute of Chartered Accountants of India, Deferred Tax resulting from timing differences between book and tax profit is accounted for at the current rate of tax to the extent that the timing difference ire expected to crystallize. Deferred Tax Assets are recognized only when there is virtual certainty of sufficient future profits available to realize such assets.

L. Provisions. Contingent liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and It is probable that there will be outflow of resources. Contingent liabilities are not' recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement.

---

Mar 31, 2014

Corporate information

M/s Bharat Textiles and Proofing Industries Ltd is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956.The Company is engaged in manufacturing and trading of processed canvas,Tarpaulin, HDPE and chemically processing canvas on Job work basis. The Company caters to both domestic and international market.

Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India and the provision of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and at historical cost. Accounting policies not specifically referred to otherwise are consistent with and are in consonance with generally accepted accounting principles.

A. Use of estimates: The preparation of financial statements requires estimates and assumption 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 are recognized in the period in which the results are known / materialised

B. Tangible fixed assets Own fixed assets are stated at Cost less accumulated depreciation and impairment loss, if any.The Cost comprises original cost of acquisition inclusive of Inward freight, attributable borrowing cost, duties and expenditure incurred in acquisition, construction/ installation.

C. Tangible assets and depreciation Depreciation on tangible assets is provided on Straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act 1956.On addition / deductions made during the year the depreciation has been calculated on a pro-rata basis.

D. Foreign currency transaction Trade transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.The difference in the rate between the transaction date and realization/ payment date is transferred to foreign exchange fluctuation a/c. The year end balance of Trade payable/receivable is converted into Indian Rupees at the closing rates. The resultant difference is accounted as profit/loss on foreign exchange fluctuation a/c.

E. Borrowing cost The Company has no Borrowing costs attributable to acquisition of fixed assets. The other borrowing costs are recognized as an expense in the year in which they are incurred

F. Inventories Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, stores and spares, power and fuel material and other products are determined on FIFO method.The work in progress is determined at estimated cost and the finished goods are valued at lower of cost or estimated realizable value.

G. Revenue Recognition Revenue is recognized only when it can be reliably measured and it''s reasonable to expect ultimate collection. Revenue from operation includes Sale of goods and services. Sale of goods is recognized when significant risk and rewards of ownership of goods have been passed to the buyer. Sale of services is recognized on completion of services and transfer of significant risk and rewards to customer. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

H. Retirement benefits The Company offers its employee''s defined contribution plans in the form of Provident fund and family pension fund.The provident fund, family pension fund covers substantially for all regular employees. Contribution to provident Fund and Pension Fund are charged to profit and loss account in the year of accrual. Leave Salary is determined and provided in the accounts at the end of each year. However the Company does not have a system of carrying forward the benefits of leave credit of each employee. The provision for Gratuity liability to employee is recognized at the present value of the amount payable determined using actuarial valuation technique.

I. Deferred Taxation In accordance with Accounting Standard (AS 22) "Accounting for Taxes on Income" issued by Institute of Chartered Accountants of India, Deferred Tax resulting from timing differences between book and tax profit is accounted for at the current rate of tax to the extent that the timing difference are expected to crystallize. Deferred Tax Assets are recognized only when there is virtual certainty of sufficient future profits available to realize such assets.

J. Provisions, Contingent liabilities and Contingent Assets Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement.

---

Mar 31, 2013

Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India and the provision of the Companies Act, 1 956. The financial statements have been prepared on an accrual basis and at historical cost. Accounting policies not specifically referred to otherwise are consistent with and are in consonance with generally accepted accounting principles.

A. Use of estimates:

The preparation of financial statements requires estimates and assumption 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 are recognized in the period in which the results are known / materialised

B. Tangible fixed assets

Own fixed assets are stated at Cost less accumulated depreciation and impairment loss, if any. The Cost comprises original cost of acquisition inclusive of Inward freight, attributable borrowing cost, duties and expenditure incurred in acquisition, construction/ installation.

C. Tangible assets and depreciation

Depreciation on tangible assets is provided on Straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act 1956.On addition / deductions made during the year the depreciation has been calculated on a pro-rata basis.

D Foreign currency transaction

Trade transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. The difference in the rate between the transaction date and realization/ payment date is transferred to foreign exchange fluctuation a/c. The yearend balance of Trade payable/receivable is converted into Indian Rupees at the closing rates. The resultant difference is accounted as profit/loss on foreign exchange fluctuation a/c.

E. Borrowing cost

The Company has no Borrowing costs attributable to acquisition of fixed assets. The other borrowing costs are recognized as an expense in the year in which they are incurred.

F Inventories

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, stores and spares, power and fuel material and other products are determined on FIFO method. The work in progress is determined at estimated cost and the finished goods are valued at lower of cost or estimated realizable value.

G. Revenue Recognition.

Revenue is recognized only when it can be reliably measured and it''s reasonable to expect ultimate collection. Revenue from operation includes Sale of goods and services. Sale of goods is recognized when significant risk and rewards of ownership of goods have been passed to the buyer. Sale of services is recognized on completion of services and transfer of significant risk and rewards to customer. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

H. Retirement benefits

The Company offers its employee''s defined contribution plans in the form of Provident fund and family pension fund. The provident fund, family pension fund covers substantially for all regular employees. Contribution to provident Fund and Pension Fund are charged to profit and loss account in the year of accrual.

Leave Salary is determined and provided in the accounts at the end of each year. However the Company does not have a system of carrying forward the benefits of leave credit of each employee.

The provision for Gratuity liability to employee is recognized at the present value of the amount payable determined using actuarial valuation technique.

I Deferred Taxation

In accordance with Accounting Standard (AS 22) "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, Deferred Tax resulting from timing differences between book and tax profit is accounted for at the current rate of tax to the extent that the timing difference are expected to crystallize. Deferred Tax Assets are recognized only when there is virtual certainty of sufficient future profits available to realize such assets.

J. Provisions, Contingent liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement.

---

Mar 31, 2012

A. Use of estimates:

The preparation of financial statements requires estimates and assumption 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 du ring the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known /materialized

B. Tangible fixed assets

Own fixed assets are stated at Cost less accumulate! depreciation and impairment loss, if any. The Col comprises original cost of acquisition inclusive of Inward freight, attributable borrowing cost, duties and expenditure incurred in acquisition, construction/installation.

C. Tangible assets and depreciation

Depreciation on tangible assets is provided on Straight line method at the rates and in the manner steadied in Schedule XIV of the Companies Act 1956.On addition / deductions made during the vear the depreciation has been calculated on a pro-rata basis.

D. Foreign currency transaction

Trade transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. The difference in the rate between the transaction date and realization/ payment date is transferred to foreign exchange fluctuation a/c. The year end balance of Trade payable/receivable are converted into Indian Rupees at the closing rates. The resultant difference is accounted as profit/loss on foreign exchange fluctuation a/c.

E. Borrowing cost

The Company has no Borrowing costs attributable to acquisition of fixed assets. The other borrowing costs are recognized as an expense in the year in which they are incurred

F. Inventories

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, stores and spares, power and fuel material and other products are determined on FIFO method. The work in progress is determined at estimated cost and the finished goods are valued at lower of cost or estimated realizable value.

G. Revenue Recognition

Revenue is recognized only when it can be reliably measured and its reasonable to expect ultimate collection. Revenue from operation includes Sale of goods and services. Sale of goods is recognized when significant risk and rewards of ownership of goods have been passed to the buyer. Sale of services is recognized on completion of services a nd transfer of significant risk are rewards to customer. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

H. Retirement benefits

The Company offers its employees defined contribution plans in the form of Provident fund and family pension fund. The provident fund, family pension fund covers substantially for all regular employees. Contribution to provident Fund and Pension Fund are charged to profit and loss account in the year of accrual.

Leave Salary is determined and provided in the accounts at the end of each year. However the Company does not have a system of carrying forward the benefits of leave credit of each employee.

The provision for Gratuity liability to employee is recognized at the present value of the amount payable determined using actuarial valuation technique.

I. Deferred Taxation

In accordance with Accounting Standard (AS 22) "Acounting for Taxes on Income" issued by Instit ute of Chartered Accountants of India, Deferred Tax resulting from timing differences beto/een book and tax profit is accounted for at the arrent rate of tax to the extent that the timing difference are expected to crystallize. Deferred Tax Assets are recognized only when there is virtual certainty of sufficient future profits available to realize such assets.

J. Provisions. Contingent liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be out flowo resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statement.

---

Mar 31, 2011

(a) GENERAL

(i) Accounting policies not specifically referred to otherwise are consistent with earlier years and are in consonance with generally accepted accounting principles. The accounts have been prepared on the basis of historical cost.

(ii) Expense and Income to the extent considered payable and receivable respectively are accounted for on accrual basis.

(b) REVENUE RECOGNITION

(i) Sale of goods is recognised on delivery to customers. Sales turnover are stated at net of trade discounts and rebates granted during the ordinary course of the business.

(ii) In appropriate circumstances revenue is recognised when no significant uncertainty as to determination or realisation exists.

(c) FIXED ASSETS

(i) Fixed assets are stated at their original cost of acquisition inclusive of Inward freight, duties and expenditure incurred in acquisition, construction/installation.

(ii) Assets below Rs.5000/- are written off in the year of Purchase.

(d) DEPRECIATION

(i) Depreciation on assets is provided on Straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act 1956.

(ii) On addition / deductions made during the year the depreciation has been calculated on a pro-rata basis.

(e) INVENTORIES METHOD OF VALUATION

(1) Raw materials - at cost

(2) Work in progress - at estimated cost.

(3) Finished goods - at lower of cost or Estimated realisable value.

(4) Stores & Spares - at cost.

(f) FOREIGN CURRENCY TRANSACTION

All payments and receipts made in foreign currency are converted into rupees at the rate prevailing on the date of transaction. The difference in the rate between the transaction date and realisation date is transferred to foreign exchange fluctuation a/c.The year end balance of Sundry debtors/creditors are converted into Indian Rupees at the closing rates. The resultant difference is accounted as foreign exchange fluctuation a/c.

(g) BORROWING COST :The Company has no Borrowing costs attributable to acquisition of assets. The other borrowing costs are recognized as an expense in the year in which they are incurred.

(h) DEFERRED TAXATION

In accordance with Accounting Standard (AS 22) "Accounting for Taxes on Income" issued by Institute of Chartered Accountants of India, Deferred Tax resulting from timing differences between book and tax profit is accounted for at the current rate of tax to the extent that the timing difference are expected to crystalise. Deferred Tax Assets are recognized only when there is virtual certainty of sufficient future profits available to realize such assets.

(i) RETIREMENT BENEFITS

The Company contribution to provident Fund and Pension Fund are charged to profit and loss account in the year of accrual. The liability in respect of leave encashment is recognized on accrual basis.

(j) CONTINGENT LIABILITIES

Contingent liabilities are determined on the basis of available information and are disclosed by way of notes to the accounts.