Accounting Policies of Captain Technocast Ltd. Company

Mar 31, 2025

2. Significant Accounting Policies:

(i) Basis of preparation

These standalone financial statements are prepared in accordance with Schedule
III of the Companies Act. 2013 and under the historical cost basis of
accounting and evaluated on a going concern basis, with revenues and expenses
accounted for on their accrual to comply in all material aspects with the applicable
accounting principles and applicable Accounting Standards notified under section
133 of the Companies Act. 2013 (The Act) read with rule 7 of Companies
(Accounts) Rules. 2014. The accountings policies have been consistently applied
by the Company; and the accounting policies not referred to otherwise, are in
conformity with Indian Generally Accepted Accounting Principles (’Indian GAAP'').
The accounting policies adopted In the preparation of financial statements are
consistent with those of previous year.

(ii) Use of Estimates

The preparation of financial statements requires estimates and assumptions to
be made that affect the reported balances of assets as on the date of tho
financial statements and the reported amount of revenues and expenses during
the reporting period. Accounting estimates could change from period to period.
Actual results could differ from those estimates. Appropriate changes in estimates
are made as and when the Management becomes aware of the changes in the
circumstances surrounding the estimates. Changes in estimates are reflected in
the financial statements in the period in which the changes are made and if
material, their effects are disclosed in the notes to the financial statements.

(iii) Rovonuo 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 reliably measured.

Sales of Goods.

Sales are recognized when significant risks and rewards of ownership of
goods have been passed to the buyer. Sales and Purchases are being
accounted for excluding GST Collected / Paid on sales and purchases.

Jobwork Incomo/Material Testing Income/Packing & Forwarding Income:

Jobwork Income & Material Testing Income are recognized on accrual basis on
completion of provision of services and Packing & Forwarding Charged in Sales
Invoices is recognized along with Sales.

Interest:

Revenue is recognized on a time proportion basis taking into account the
amount outstanding and the rate applicable

Other Income:

Other Income being excise duty rebate claim, duty drawback, solar power
generation income, etc are being recognized on accrual basis in the year in which
right to receive the same is established

(iv) Properly, Plant & Equipment (PPE):

Gross PPE are stated at cost of acquisition including incidental expenses relating
to acquisition and installation. Fixed Assets are stated at cost net of modvat /
cenvat / other credits and includes amounts added on revaluation, less
accumulated depreciation and impairment loss, if any.

(v) Depreciation / Amortization on tangible fixed assets:

Depreciation on fixed assets is on Written Down Value (WDV) Method at the
rates arrived at on the basis of useful life / remaining useful life and in the
manner as prescribed in. Part C. Schedule II of the Companies Act, 2013.

Details of useful life of an asset and its residual value estimated by the
management: -

(vi) Inventories:

Inventories of Raw Materials, Semi-Finished Goods, Finished Goods and Waste
& Scrap are stated at cost or net realizable value, whichever is lower. Cost
comprises all cost of purchase, cost of conversion and other costs incurred in
bringing the inventories to their present location and condition. Cost formula is
arrived at on ''FIFO basis''. Due allowance is estimated and made for defective
and obsolete items, wherever necessary, based on the past experience of the
Company.

(vii) Employee Benefits

Short Term Employco Benefits:

The undiscounted amount of short-tenm employee benefits expected to be paid in
exchange for the services rendered by employees are recognized as an expense
during the poriod when the employees render the services. These benefits
include performance incentive and compensated absences.

Post-Employment Benefits Defined Contribution Plans:

A defined contribution plan is a post-employment benefit plan under which the
Company pays specified contributions to a separate entity. The Company makes
specified monthly contributions towards Provident Fund. State Government
Schemes. The Company''s contribution is recognized as an expense in the Profit
and Loss Statement during the period in which the employee renders the related
service.

(viii) Foreign Currency Transactions:

Transactions denominated in foreign currencies are recorded at the exchange
rate prevailing on the date of transaction.

Foreign currency current assets and current liabilities outstanding at the balance
sheet date are translated at the exchange rate prevailing on that date and the
net gain or loss is recognized in the profit and loss account

Foreign currency translation differences relating to liabilities incurred for
purchasing of fixed assets from foreign countries are recognized in the profit and
loss account. All other foreign currency gain or losses are recognized in the profit
and loss account.

(ix) Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition, construction or
production of qualifying assets are capitalised as part of the cost of such assets.
A qualifying asset is one that necessarily takes substantial period of time to get
ready for intended use. Costs incurred in raising funds are amortised equally
over the period for which the funds are acquired. All other borrowing costs are
charged to statement of profit and loss.

(x) Income Taxos:

Tax expense comprises of current tax and deferred tax. Current tax is measured
at the amount expected to be paid to the tax authorities in accordance with the
Income-tax Act, 1961 using the applicable tax rates. Deferred income tax reflects
the current period timing differences between taxable income and accounting
income for the period and reversal of timing differences of earlier years/period.

Deferred tax assets are recognized only to the extent that there is a reasonable
certainty that sufficient future income will be available except that deferred tax
assets, in case there are unabsorbed depreciation or losses, are recognized if
there is virtual certainty that sufficient future taxable income will be available to
realize the same

Deferred tax assets and liabilities are measured using the tax rates and tax law
that have been enacted or substantively enacted by the Balance Sheet date

(xi) Earnings / (Loss) per share:

Basic earnings/(loss) per share are calculated by dividing the net profit / (loss) for
the period attributable to equity shareholders (after deducting preference
dividends and attributable taxes, if any) by the weighted average number of
equity shares outstanding during the period. The weighted average number of
equity shares outstanding during the period are adjusted for any bonus shares
issued during the year and also after the balance sheet date but before the
date the financial statements are approved by the board of directors.

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Mar 31, 2024

1. General Information

Captain Technocast Limited (CIN:L27300GJ2010PLC061678), is a company limited by shares, incorporated and domiciled in India. Company is engaged mainly in manufacturing Investment C asting in Carbon Steel, Alloy Steel & Super Alloy Steel & Non — Ferrous and has also setup plant for manufacturing of Ball Valve used in investment casting from its plant located at captain gate, survey no - 257, plot no. 4, Shapar - Veraval, Dist. Rajkot - 360024.

2. Significant accounting policies:

(i) Basis of preparation:

These standalone financial statements are prepared in accordance with Schedule III of the Companies Act, 2013 and under the historical cost basis of accounting and evaluated on a going concern basis, with revenues and expenses accounted for on their accrual to comply n all material aspects with the applicable accounting principles and applicable Accounting Standards notified under section 133 of the Companies Act, 2013 (The Act) read with rule 7 of Companies (Accounts) Rules, 2014. The accountings policies have been consistently applied by the Company; and the accounting policies not referred to otherwise, are in conformity with Indian Generally Accepted Accounting Principles (''Indian GAAP''). The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

(ii) Use of Estimates:

The preparation of financial statements require estimates and assumptions to be made that affect the reported balances of assets as on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Accounting estimates could change from period to period. Actual results could differ from these estimates. Appropriate changes in estimates are made as and when the Management becomes aware of the changes in the circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which the changes are made and if material, their effects are disclosed in the notes to the financial statements.

(iii) Revenue Recognition:

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

Sales of Goods:

Sales are recognized when significant risks and rewards of ownership of goods have been passed to the buyer. Sales and Purchases are being accounted for excluding GSX-Cotteeted / Paid on sales and purchases.

''of ,VA\

Jobwork Income / Material Testing Income / Packing & Forwarding Income:

Jobwork Income & Material Testing Income are recognized on accrual basis on completion of provision of services and Packing & Forwarding Charged in Sales Invoices is recognized along with Sales.

Interest:

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

Other Income:

Other Income being excise duty rebate claim, duty drawback, solar power generation income, etc. are being recognized on accrual basis in the year in which right to receive the same is established

(iv) Property, Plant & Equipments (PPE1:

Gross PPE are stated at cost of acquisition including incidental expenses relating to acquisition and installation. Fixed Assets are stated at cost net of modvat / cenvat / other credits and includes amounts added on revaluation, less accumulated depreciation and impairment loss, if any.

(v) Depreciation / Amortization on tangible fixed assets:

Depreciation on fixed assets is on Written Down Value (WDV) Method at the rates arrived at on the basis of useful life / remaining useful life and in the manner as prescribed in, Part C, Schedule II of the Companies Act, 2013.

Details of useful life of an asset and its residual value estimated by the management:-
Type of Asset	Useful Life as per management''s estimate from April 1, 2014
Factory Building	30 Years
Plant & Machinery	15 Years
Laboratory Equipments	10 Years
Electrifications	10 Years
Tools & Instruments	15 Years
Solar Roof Tops	15 Years
Vehicles (Two Wheelers)	10 Years

Vehicles (Four Wheelers)	8 Years
Furniture & Fixtures	10 Years
CCTV Cameras	5 Years
Air Conditioners	15 Years
Water Cooler	5 Years
Refrigeration& Canteen Equipment	5 Years
Mobiles	5 Years
Software & Computers	3 Years

In none of the case, residual value of an asset is more than five per cent of original cost of the asset

(vi) Inventories:

Inventories of Raw Materials, Semi-Finished Goods, Finished Goods and Waste & Scrap are stated at cost or net realizable value, whichever is lower. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost formula is arrived at on ''FIFO basis''. Due allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past experience of the Company.

(vii) Retirement Benefits and other employee benefits:

Defined Contribution Plans:

Defined contribution to provident fund is charged to the profit and loss account on accrual basis. Defined Benefit Plans:

Provision for gratuity liability is provided based on actuarial valuation made for the year.

Leave encashment expenditure is charged to profit and loss account at the time of leave enchased and paid, if any. Bonus expenditure is charged to profit and loss account on accrual basis.

(viii) Foreign Currency Transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.

Foreign currency current assets and current liabilities outstanding at the balance sheet date are translated at the exchange rate prevailing on that date and the net gain or loss is recognized in the profit and loss account

Foreign currency translation differences relating to liabilities incurred for purchasing of fixed assets from foreign countries are recognized in the profit and loss account. All other foreign currency gain or losses are recognized in the profit and loss account.

(ix) Lease Accounting:

Operating leases: Assets acquired as leases where a significant portion of risk and rewarcs of ownership are retained by the lessor are classified as operating lease. Lease rentals being income or expense are booked to the statement of profit and loss as incurred.

Initial direct costs in respect of the lease acquired are expensed out in the year in which such costs are incurred.

(x) Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Costs incurred in raising funds are amortised equally over the period for which the funds are acquired. All other borrowing costs are charged to statement of profit and loss.

(xi) Taxes on Income

Tax expenses comprise Current Tax / Minimum Alternate Tax (MAT) and deferred tax charge or credit.

Current Tax: Provision for current tax / Minimum Alternate Tax (MAT) is made based on tax liability computed after considering tax allowances and exemptions, in accordance with the provisions of The Income Tax Act, 1961.

Deferred Tax: Deferred tax assets and liability is recognized, on timing differences, being the differences 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 arising mainly on account of brought forward losses, unabsorbed depreciation and minimum alternate tax under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. At each Balance Sheet date, the carrying amounts of deferred ^assets,..

are reviewed to reassure realisation. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

(xii) Earnings / (Loss) per share:

Basic earnings/(loss) per share are calculated by dividing the net profit / (loss) for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes, if any) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for any bonus shares issued during the year and also after the balance sheet date but before the date the financial statements are approved by the board of directors.

(xiii) Provisions, contingent liabilities and contingent assets :

A provision is recognised when the company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in resoect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation.

A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements. Contingent liabilities are disclosed by way of notes to the accounts.

Contingent assets are not recognized.

(xiv) Cash and Cash Equivalents:

Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand and fixed deposits with bank.

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of 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. Cash flows from operating, investing and financing activities of the Company are segregated, accordingly.

(xv) Segment Reporting:

In accordance with Accounting Standard-17 - “Segment Reporting” issued by the Institute of Chartered Accountants of India is not applicable as the Company has mainly one business segment i.e. "manufacturing and selling of Investment Casting.". There are no other primary reportable segments. The major and material activities of the company are restricted to only one geographical segment i.e. India, hence the secondary segment disclosures are also not applicable.

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Mar 31, 2023

2. Significant accounting policies:

m Raatft of preparation:

These standalone financial statements are prepared in accordance with Schedule III of the
Compan.es Act. 2013 and under the historical cost basis of accounting and evaluated on a
going concern basis, with revenues and expenses accounted for on their accrual to comply ,n all
material aspects with the applicable accounting principles and applicable Accounting Standards
notified under section 133 of the Companies Act, 2013 (The Act) read with rule 7 of Compames
(Accounts) Rules 2014 The accountings policies have bean consistently applied by the Company:
and the accounting policies not referred to otherwise, are In conformity with Indian Generally
Accepted Accounting Principles (''Indian GAAP''). The accounting policies adopted in the
preparation of financial statements are consistent with those of previous year.

(si) lisa of Estimates:

The preparation of financial statements require estimates and assumptions to be made that
affect the reported balances of assets as on the date of the financial statements and the
reported amount of revenues and expenses during the reporting pened. Accounting estimates
could change from period to period. Actual results could differ from these estimates. Appropriate
changes in estimates are made as and when me Management becpmes aware of the changes
in the circumstances surrounding the estimates. Changes In estimates are reflected In the
financial statements in the period in which the changes are made and if material, their effects
are disclosed in the notes to the financial statements.

(lil) Revenue Recognition:

Revenue is recognised to the extent that it is probable that the economic benefits will flow to me
company and the revenue can be reliably measured
Sates of Goods:

Sales are recognized when significant risks and rewards of ownership of goods have been
passed to the buyer. Sales and Purchases are being accounted tor excluding GST Collected r

Paid on sales and purchases.

/vST''\A

jotmk income / Material Tasting Income / Peking & Forwarding Income:

jobwork Income & Material Testing Income are recognised on accrual basis on complete! of

provision of services and Packing * Forwarding Charged in Saies Invoices is recognised along

with Sales.

Interest:

Revenue is recognized on a lime proportion basis taking into acconnl the amount outstanding

and the rate applicable.

Other Income:

Other income being excise duty rebate claim, duty drawback, solar power generation income,
etc. are being recognized on accrual basis M the year in which right to receive the same is

established

(}_V) property. Plant & Equipments {PEE):

Gross PPE are stated at cost of acquisition including incidental expenses relating to acquisition
and installation, fixed Assets are; stated at cost net of rrodvat / cenvat i other credits and
includes amounts added on revaluation, less accumulated depreciation and impairment loss, If

any

{v} Depreciation t Amortization on ^_fl><^d_assets.

Depreciation on fixed assets Is on Written Down Voice (WOT) Method at the rates arrived at on
the basis of useful life I remaining useful life and in the manner as prescribed in, Part 0.
Schedule H of the Companies Act, 2013.

(vi) Inventories;

Inventories of Raw Materials, Semi-Finished Goods, Finished Goods and Waste a Scrap are
stated at cost or net realizable value, whichever is lower Cost comprises all cost of purchase,
cost of conversion and other costs Incurred in bringing the inventories to their present location
and condition Cost formula is arrived at on T1F0 basis'', Due allowance Is estimated and made
ter defective and obsolete items, wherever necessary, based on the past experience of the

Company.

(_Vii) Retirement Benefit and other employee benefit^

Defined Contribution Plans:

Defined contribution to provident fund is charged to the profit and loss account on accural basis.
Defined Berfaffit Plans:

Provision [or gratuity liability is provided based on actuarial valuation made for the year.

Leave encashment expenditure Is charged to profit and loss account at the time of leave
enchased ahd paid, if any. Bonus expenditure is charged to profit and loss account on accrual

basis

(viiii Foreign Currency Trans actions:

Transactions denominated In foreign currencies are recorded at the exchange rate prevailing on
the date of transaction

Foreign currency current assets and current liabilities outstanding at the balance sheet date are
translated at the exchange rate prevailing on that date and the net gain or loss is recognized in
the profit and loss account.

Foreign currency translation differences relating to liabilities incurred for purchasing of fixed
assets front foreign countries are recognised in the profit and loss account. All other foreign
currency gain or losses are recognized In the profit and loss account

(in) Lease Accounting:

nnpratinn leases: Assets acquired as leases where a signifrcant portion of risk and rewards ol
ownership are retained by the lessor are classified as operating lease. Lease rentals being
income or expanse are booked to the statement of profit and loss as incurred
Initial direct costs in respect of the lease acquired are expensed out in the year m which such

costs are incurred.

(x) Borrowing Cosb

Borrowing costs that are directly attributable to the acquisition, construction or production of
qualifying assets are capitalised as part of the cost of such assets. A qualifying asset Is one that
necessarily takes substantial period of time to get ready for intended use. Costs incurred in
raising funds are amortised equally over the period tor which the funds are acquired. All other
borrowing costs are charged to statement of profit and loss.

(xi) Taxes on income

Tax expenses comprise Current Tax I Minimum Alternate Tax (MAT) and deferred lax charge ar
credit

onrenl Tax: Provision for current tax tMinimum Alternate Tax (MAT) is made based on tax
liability computed aftet considering tax allowances and exemptions, in accordance with the
provisions of The Income Tax Act, 1961.

Deterred lax. Deterred tax assets and liability is recognized, on timing differences, being the
differences between taxable income and accounting income that originate in one period and are
capable of reverb in one or more subsequent periods. Deferred tax assets arising mainly on
account of brought forward losses, unabsorbed depreciation and minimum alternate tax under
tax laws, are recognised, only if there Is a virtual certainty of its realisation, supported by
convincing evidence. At each Balance Sheet date, the carrying amounts of deferred tax assets
are reviewed to reassure realisation. The deterred tax asset and deferred tax liability is calculated
by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance

Sheet date,

D j I

(xjl) Farnincis I (Loss) per share:

Basic aamings/(loss) per share are calculated by bidding the net profit I (loss) for the period
attributable to equity shareholders (after deducting preference dividends and attributable taxes,
if any) by the weighted average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period are adjusted for any
bonus shares issued during the year and also after the balance sheet date but before the date
the financial statements are approved by the board of directors.

---

Mar 31, 2018

Significant accounting policies:

(i) Basis of preparation:

These financial statements as restated are prepared in accordance with Schedule III of the Companies Act, 2013 and under the historical cost basis of accounting and evaluated on a going concern basis, with revenues and expenses accounted for on their accrual to comply in all material aspects with the applicable accounting principles and applicable Accounting Standards notified under section 133 of the Companies Act, 2013 (The Act) read with rule 7 of Companies (Accounts) Rules, 2014. The accounting policies have been consistently applied by the Company; and the accounting policies not referred to otherwise, are in conformity with Indian Generally Accepted Accounting Principles (‘Indian GAAP’). The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.\

(ii) Use of Estimates:

The preparation of financial statements require estimates and assumptions to be made that affect the reported balances of assets as on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Accounting estimates could change from period to period. Actual results could differ from these estimates. Appropriate changes in estimates are made as and when the Management becomes aware of the changes in the circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which the changes are made and if material, their effects are disclosed in the notes to the financial statements.

(iii) 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 reliably measured.

Sales of Goods:

Sales are recognized when significant risks and rewards of ownership of goods have been passed to the buyer. Sales and Purchases are being accounted for excluding Excise Duty / GST Collected / Paid on sales and purchases.

Jobwork Income / Material Testing Income / Packing & Forwarding Income:

Jobwork Income & Material Testing Income are recognized on accrual basis on completion of provision of services and Packing & Forwarding Charged in Sales Invoices is recognized along with Sales.

Interest:

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

Rent:

Rent income is recognized on a time proportion basis at the rates and as per the terms & conditions agreed upon with the it.

Other Income:

Other Income being excise duty rebate claim, duty drawback etc. are being recognized on accrual basis in the year in which right to receive the same is established

(iv) Tangible Fixed Assets :

Gross fixed assets are stated at cost of acquisition including incidental expenses relating to acquisition and installation. Fixed Assets are stated at cost net of modvat / cenvat / other credits and includes amounts added on revaluation, less accumulated depreciation and impairment loss, if any.

(v) Depreciation / Amortization on tangible fixed assets:

Depreciation on fixed assets is on Written Down Value (WDV) Method at the rates arrived at on the basis of useful life / remaining useful life and in the manner as prescribed in, Part C, Schedule II of the Companies Act, 2013.

In none of the case, residual value of an asset is more than five per cent of original cost of the asset.

(vi) Inventories:

Inventories of Raw Materials, Semi-Finished Goods, Finished Goods and Waste & Scrap are stated at cost or net realizable value, whichever is lower. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost formula is arrived at on ‘FIFO basis’. Due allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past experience of the Company.

(vii) Retirement Benefits and other employee benefits : Defined Contribution Plans :

Defined contribution to provident fund is charged to the profit and loss account on accrual basis.

Defined Benefit Plans :

Provision for gratuity liability is provided based on actuarial valuation made covering all the period of five years. Leave encashment expenditure is charged to profit and loss account at the time of leave encashed and paid, if any. Bonus expenditure is charged to profit and loss account on accrual basis.

(viii) Foreign Currency Transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.

Foreign currency current assets and current liabilities outstanding at the balance sheet date are translated at the exchange rate prevailing on that date and the net gain or loss is recognized in the profit and loss account.

Foreign currency translation differences relating to liabilities incurred for purchasing of fixed assets from foreign countries are recognized in the profit and loss account. All other foreign currency gain or losses are recognized in the profit and loss account.

(ix) Lease Accounting:

Operating leases: Assets acquired as leases where a significant portion of risk and rewards of ownership are retained by the lessor are classified as operating lease. Lease rentals being income or expense are booked to the statement of profit and loss as incurred. Initial direct costs in respect of the lease acquired are expensed out in the year in which such costs are incurred.

(x) Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Costs incurred in raising funds are amortised equally over the period for which the funds are acquired. All other borrowing costs are charged to statement of profit and loss.

(xi) Taxes on Income

Tax expenses comprise Current Tax / Minimum Alternate Tax (MAT) and deferred tax charge or credit.

Current Tax: Provision for current tax / Minimum Alternate Tax (MAT) is made based on tax liability computed after considering tax allowances and exemptions, in accordance with the provisions of The Income Tax Act, 1961.

Deferred Tax: Deferred tax assets and liability is recognized, on timing differences, being the differences 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 arising mainly on account of brought forward losses, unabsorbed depreciation and minimum alternate tax under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. At each Balance Sheet date, the carrying amounts of deferred tax assets are reviewed to reassure realisation. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

(xii) Earnings / (Loss) per share:

Basic earnings/(loss) per share are calculated by dividing the net profit / (loss) for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for any bonus shares issued during the year and also after the balance sheet date but before the date the financial statements are approved by the board of directors.

(xiii) Provisions, contingent liabilities and contingent assets :

A provision is recognised when the company has a present obligation as a result of past events and 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. Provisions are not discounted to their present value and are determined based on best estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation.

A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

Contingent liabilities are disclosed by way of notes to the accounts.

Contingent assets are not recognized.

(xiv) Cash and Cash Equivalents:

Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of 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. Cash flows from operating, investing and financing activities of the Company are segregated, accordingly.

(xv) Segment Reporting :

In accordance with Accounting Standard-17 - “Segment Reporting” issued by the Institute of Chartered Accountants of India is not applicable as the Company has only one business segment i.e. “manufacturing and selling of Investment Casting.”. There are no other primary reportable segments. The major and material activities of the company are restricted to only one geographical .