Accounting Policies of Centenial Surgical Suture Ltd. Company

Mar 31, 2025

2 Significant accounting policies :

2.1 Basis of preparation :

(i) The financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified pursuant to Section 133 of the Companies Act, 2013 ("the Act”), read with
Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting
Standards) Amendment Rules, 2016.

The accounting policies adopted in the preparation of these financial statements are consistent for all
the periods presented.

The financial statements are presented in Indian Rupees, which is the Company''s functional currency
and all values are rounded off to the nearest Lakhs with two decimal places, except when otherwise
indicated.

(ii) The Ind AS standalone financial statements have been prepared on a historical cost convention basis,
except for the following :

¦ certain financial assets and liabilities that are measured at fair value;

¦ defined benefit plans - net defined benefit (asset) / liabilities - Fair value of plan assets less present
value of defined benefit obligation .

2.2 Current and non-current classification :

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating
cycle and other criteria set out in Schedule III to the Act. Based on the nature of the products and the time
taken between acquisition of assets for processing and their realisation in cash and cash equivalents, the
Company has ascertained its normal operating cycle as twelve months for the purpose of current or non¬
current classification of assets and liabilities. Deferred tax assets and liabilities are classified as non-current
assets and non-current liabilities.

2.3 Significant accounting judgments, estimates and assumptions :

The preparation of financial statements in conformity with Ind AS requires Company''s management to make
estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities.
Actual results could differ from those estimates.

Estimates and judgments are reviewed on an ongoing basis. They are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the Company and that are believed to be
reasonable under the circumstance. Revisions to accounting estimates are recognised in the period in which the
estimates are revised and future periods are affected.

The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date,
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the
next financial year, are described below :

a) Impairment of Property, Plant and Equipment (PPE) :

The evaluation of applicability of indicators of impairment of assets requires assessment of external
factors (significant decline in asset''s value, significant changes in the technological, market, economic
or legal environment, market interest rates etc.) and internal factors (obsolescence or physical damage
of an asset, poor economic performance of the asset etc.) which could result in significant change in
recoverable amount of the PPE.

b) Determination of the estimated useful lives :

Useful lives of all PPE are based on the estimation done by the Company''s Management which is in line
with the useful lives as prescribed in Part ‘C'' of Schedule II to the Act. In cases, where the useful lives
are different from those prescribed in Schedule II and in case of intangible assets, these are estimated
by management based on technical advice, taking into account the nature of the asset, the estimated
usage of the asset, the operating conditions of the asset, past history of replacement, anticipated
technological changes, manufacturer''s warranties and maintenance support. (Refer note 3).

c) Current and deferred taxes :

Significant management judgment is required to determine the amount of current and deferred taxes
that can be recognised, based upon the likely timing and the level of future taxable profits together
with future tax planning strategies.

d) Employee benefits :

Management''s estimate of the Company''s obligation is determined based on actuarial valuation. An
actuarial valuation involves making various assumptions that may differ from actual developments in
the future. These include the determination of the discount rate, future salary increases and mortality
rates. Due to the complexities involved in the valuation and its long-term nature, these liabilities are
highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for
plans operated in India, the Company''s management considers the interest rates of government bonds.
Future salary increases and gratuity increases are based on expected future inflation rates for India.

Retirement and other employee benefits :

i) Retirement benefits in the form of provident fund (where contributed to the Regional PF
Commissioner) is a defined contribution scheme. The Company has no obligation, other than the
contribution payable to the provident fund. The Company recognizes contribution payable to the
provident fund scheme as expenditure, when an employee renders the related service. If the
contribution payable to the scheme for service received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting
the contribution already paid. If the contribution already paid exceeds the contribution due for services
received before the balance sheet date, then excess is recognized as an asset to the extent that the
pre-payment will lead to, for example, a reduction in future payment or a cash refund.

ii) Gratuity liability under the Payment of Gratuity Act is a defined benefit obligation and is provided for
on the basis of an actuarial valuation on projected unit credit method made at the end of each financial
year. The gratuity plan has been funded by policy taken from Life Insurance Corporation of India.
Actuarial gains and losses for defined benefit plan are recognized in full in the year in which they occur
in the Statement of Profit and Loss.

iii) Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term
employee benefit. The Company measures the expected cost of such absences as the additional
amount that it expects to pay as a result of the unused entitlement that has accumulated at the
reporting date.

iv) The Company treats accumulated leave expected to be carried forward beyond twelve months, as long¬
term employee benefit for measurement purposes. Such long-term compensated absences are provided
for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains
/ losses are immediately taken to the statement of profit and loss and are not deferred. The Company
presents the entire leave as a current liability in the balance sheet, since it does not have an unconditional
right to defer its settlement for 12 months after the reporting date.

Refer note 43 for details of the key assumptions used in determining the accounting of these plans.

2.4 Property, Plant and Equipment (PPE) :

Property, Plant and Equipment (PPE) are stated at cost of acquisition or construction (including directly
attributable expenses thereto), net of impairment loss if any, less depreciation / amortisation. Cost includes
financing costs of borrowed funds attributable to acquisition or construction of qualifying fixed assets, up to
the date the assets are put to use. If significant parts of an item of PPE have different useful lives, then they are
accounted for as separate items major components) of PPE. An item of PPE is de-recognised upon disposal or
when no future economic benefits are expected to arise from the combined use of the asset. Any gain or loss
arising on the disposal or retirement of an item of PPE is determined as the difference between the sales
proceeds and is recognised in the Statement of Profit and Loss. Cost of assets not ready for intended use, as on
the reporting date, is shown under capital work-in-progress. Advances given towards acquisition of property,
plant and equipment outstanding as at reporting date are disclosed as "other non-current assets”.

Depreciation / Amortization :

i) Leasehold land is depreciated over the period of the lease.

ii) Depreciation on cost of PPE is provided on straight-line method (SLM) over the useful lives as specified
in Part ‘C'' of Schedule II of the Act. Useful lives are reviewed by the Company''s management at each
Balance Sheet date and revised, if appropriate. In case of a revision, the unamortized depreciable
amount is charged over the revised remaining useful life.

iii) Depreciation on additions / deletions to PPE during the year is provided for on a pro-rata basis with
reference to the date of additions / deletions except low value of items costing Rs.5,000.00 or less
which are fully depreciated in the year when the assets are put to use.

iv) Depreciation on subsequent expenditure on PPE arising on account of capital improvement or other
factors is provided for prospectively over the remaining useful life.

v) Intangible assets are recorded at its acquisition price and amortized on the straight-line method over a
period of three years.

2.5 Impairment :

The carrying amounts of PPE are reviewed at each balance sheet date to determine if there is any indication
of impairment based on internal / external factors. Assessment of indication of impairment of an asset is
made at the year end. An impairment loss is recognized wherever the carrying amount of an asset exceeds
its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in
use. In assessing value in use, the Company measures its ‘value in use'' on the basis of estimated discounted
cash flows of projections based on current prices.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining
useful life.

2.6 Inventories :

Inventories comprise of all costs of purchase, conversion and other costs incurred in bringing the inventories
to their present location and condition.

Raw materials are valued at the lower of cost and net realisable value. Cost is ascertained on a moving weighted
average basis, except for goods in transit which is ascertained on a specific identification basis.

Work-in-progress, finished goods and traded goods are carried at the lower of cost and net realizable value.
Cost is determined on a weighted average basis. In case of work-in progress and manufactured finished
goods, cost includes material, labour and production overheads. Fixed production overheads are allocated
on the basis of normal capacity of production facilities.

Net realisable value of work-in-progress is determined with reference to the estimated selling price less
estimated cost of completion and estimated costs necessary to make the sale of related finished goods. Raw
materials held for production of finished goods are not written down below cost, except if it is estimated
that the cost of the finished product will exceed its net realisable value.

2.7 Foreign Currency Transactions :

Initial recognition :

Foreign currency transactions are translated in the functional currency, by applying to the foreign currency
amount the exchange rate between the functional currency and the foreign currency, prevailing at the date
of transaction.

Conversion :

Foreign currency monetary items as at balance sheet date are translated using the closing exchange rate on
that date.

Exchange differences :

Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies at the year end exchange
rates are recognised in the Statement of Profit and Loss in the year in which they arise, except exchange
differences arising from the translation of qualifying cash flow hedges to the extent that the hedges are
effective, which are recognized in Other Comprehensive Income (OCI).

2.8 Operating Lease :

Ind AS 116 defines a lease term as the noncancellable period for which the lessee has the right to use an
underlying asset including optional periods, when an entity is reasonably certain to exercise an option to
extend (or not to terminate) a lease. The Company considers all relevant facts and circumstances that create
an economic incentive for the lessee to exercise the option when determining the lease term. The option to
extend the lease term is included in the lease term, if it is reasonably certain that the lessee would exercise
the option. The Company reassesses the option when significant events or changes in circumstances occur
that are within the control of the lessee.

IND AS 116 : Leases:

The company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-
of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for
any lease payments made at or before the commencement date, plus any initial direct costs incurred and an
estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site
on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement
date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The
estimated useful lives of right-of-use assets are determined on the same basis as those of property and
equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and
adjusted for certain re-measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, company''s incremental borrowing rate. Generally, the company uses its incremental borrowing
rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following :

¦ Fixed payments, including in-substance fixed payments;

¦ Variable lease payments that depend on an index or a rate, initially measured using the index or rate as
at the commencement date;

¦ Amounts expected to be payable under a residual value guarantee; and

¦ The exercise price under a purchase option that the company is reasonably certain to exercise, lease
payments in an optional renewal period if the company is reasonably certain to exercise an extension
option, and penalties for early termination of a lease unless the company is reasonably certain not to
terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when
there is a change in future lease payments arising from a change in an index or rate, if there is a change in
the company''s estimate of the amount expected to be payable under a residual value guarantee, or if
company changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying
amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset
has been reduced to zero.

The company presents right-of-use assets that do not meet the definition of investment property in ‘property,
plant and equipment'' and lease liabilities in ‘loans and borrowings'' in the statement of financial position.

Short-term leases and leases of low-value assets

The company has elected not to recognise right-of-use assets and lease liabilities for short term leases of real
estate properties that have a lease term of 12 months. The company recognises the lease payments
associated with these leases as an expense on a straight-line basis over the lease term.

Under Ind AS 17

In the comparative period, Leases, where the lessor effectively retains substantially all the risks and benefits
of ownership of the leased assets during the lease term, are classified as operating leases. Operating lease
payments are recognized as expense in the Statement of Profit and loss on a straight-line basis over the lease
term, unless such payments are structured to increase in line with expected general inflation to compensate
for the lessor''s expected inflationary cost increases.

2.9 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. Revenue is measured at the fair value of the consideration
received or receivable and represents amounts receivable for goods and services provided in the normal
course of business, net of discounts and taxes:

i. Revenue from sale of goods is recognised on transfer of significant risk and rewards of ownership of
products to the customers.

ii. Interest income is accounted for on a time proportion basis taking into account the amount
outstanding and the rate applicable.

iii. Dividend income is recorded when the right to receive payment is established.

2.10 Employee benefits :

a) Short term employee benefits :

Employee benefits payable wholly within twelve months of rendering the service are classified as short-term
employee benefits and are recognised in the period in which the employee renders the related service.

b) Post-employment benefits :

Defined benefit plans

Most of the employees are covered under Employees'' Gratuity Scheme, which is a defined benefit plan.
The Company contributes to a fund maintained with Life Insurance Corporation of India (LIC) on the
basis of the year-end liability determined based on actuarial valuation. Net interest expense and other
expenses related to defined benefit plans are recognised in the Statement of Profit and Loss.

Defined benefit plans

Provision for long-term employee benefits comprise of compensated absences. These are measured on the
basis of year end actuarial valuation in line with the Company''s rules for compensated absences.
Remeasurement gains or losses are recognised in statement of profit and loss in the period in which they arise.

2.11 Financial instruments :

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

Financial assets :

Initial recognition and measurement:

Financial assets are recognized initially at fair value. Transaction costs that are directly attributable to the
acquisition of financial assets (other than financial assets not recorded at fair value through profit and loss) are
added to the fair value of financial assets. Transaction costs directly attributable to the acquisition of financial
assets at fair value through profit and loss are recognised immediately in Statement of Profit and Loss.

Subsequent measurement:

For the purposes of subsequent measurement, financial assets are classified into below categories:

¦ Financial assets at amortised cost;

¦ Financial assets at fair value through profit or loss (FVTPL)

¦ Financial assets at fair value through other comprehensive income (FVTOCI)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the
Company changes its business model for managing financial assets.

Financial assets including derivatives at fair value through profit or loss (FVTPL) :

Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost of
fair value through other comprehensive income on initial recognition. The transaction costs directly
attributable to the acquisition of financial assets at fair value through profit or loss are immediately
recognized in the Statement of Profit and Loss.

Financial Liabilities :

Initial recognition and measurement:

Financial liabilities are classified, at initial recognition, as measured at amortised cost or financial liabilities at
fair value through profit or loss (FVTPL). The Company''s financial liabilities include trade and other payables.

Equity instruments issued by the Company are classified as equity in accordance with the substance of the
contractual arrangements and the definitions of a financial liability and an equity instrument. An equity
instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of
its liabilities.

2.12 Income and deferred taxes :

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected
to be paid to the tax authorities in accordance with the provisions of the Indian Income Tax Act, 1961.
Deferred tax is provided using the liability method on temporary differences between the tax base of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the
balance sheet date. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax
assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and
any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit
will be available against which the deductible temporary differences, and the carry forward of unused tax
credits and unused tax losses can be utilized.

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Mar 31, 2024

1 Corporate information :

CENTENIAL SURGICAL SUTURE LTD. ("the Company”) is a public limited company domiciled and incorporated in India and having its registered office at F-29, MIDC, Murbad, Thane 421401, MAHARASHTRA. The Company''s shares are listed on BSE Limited (BSE) in India. The Company is inter alia engaged in the development, manufacturing and supply of Medical Devices. The Company''s manufacturing units are located in the State of MAHARASHTRA at Murbad, Thane.

2 Significant accounting policies :

2.1 Basis of preparation :

(i) The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified pursuant to Section 133 of the Companies Act, 2013 ("the Act"), read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

The accounting policies adopted in the preparation of these financial statements are consistent for all the periods presented.

The financial statements are presented in Indian Rupees, which is the Company''s functional currency and all values are rounded off to the nearest Lakhs with two decimal places, except when otherwise indicated.

(ii) The Ind AS standalone financial statements have been prepared on a historical cost convention basis, except for the following :

¦ certain financial assets and liabilities that are measured at fair value;

¦ defined benefit plans - net defined benefit (asset) / liabilities - Fair value of plan assets less present value of defined benefit obligation.

2.2 Current and non-current classification :

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule III to the Act. Based on the nature of the products and the time taken between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its normal operating cycle as twelve months for the purpose of current or noncurrent classification of assets and liabilities. Deferred tax assets and liabilities are classified as non-current assets and non-current liabilities.

2.3 Significant accounting judgments, estimates and assumptions :

The preparation of financial statements in conformity with Ind AS requires Company''s management to make estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities. Actual results could differ from those estimates.

Estimates and judgments are reviewed on an ongoing basis. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstance. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.

The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below :

a) Impairment of Property, Plant and Equipment (PPE) :

The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant decline in asset''s value, significant changes in the technological, market, economic or legal environment, market interest rates etc.) and internal factors (obsolescence or physical damage of an asset, poor economic performance of the asset etc.) which could result in significant change in recoverable amount of the PPE.

b) Determination of the estimated useful lives :

Useful lives of all PPE are based on the estimation done by the Company''s Management which is in line with the useful lives as prescribed in Part ‘C of Schedule II to the Act. In cases, where the useful lives are different from those prescribed in Schedule II and in case of intangible assets, these are estimated by management based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturer''s warranties and maintenance support.

c) Current and deferred taxes :

Significant management judgment is required to determine the amount of current and deferred taxes that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

d) Employee benefits :

Management''s estimate of the Company''s obligation is determined based on actuarial valuation. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate; future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, these liabilities are highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the Company''s management considers the interest rates of government bonds. Future salary increases and gratuity increases are based on expected future inflation rates for India.

Retirement and other employee benefits :

i) Retirement benefits in the form of provident fund (where contributed to the Regional PF Commissioner) is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.

ii) Gratuity liability under the Payment of Gratuity Act is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year. The gratuity plan has been funded by policy taken from Life Insurance Corporation of India. Actuarial gains and losses for defined benefit plan are recognized in full in the year in which they occur in the Statement of Profit and Loss.

iii) Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

iv) The Company treats accumulated leave expected to be carried forward beyond twelve months, as longterm employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains / losses are immediately taken to the statement of profit and loss and are not deferred. The Company presents the entire leave as a current liability in the balance sheet, since it does not have an unconditional right to defer its settlement for 12 months after the reporting date.

Refer note 43 for details of the key assumptions used in determining the accounting of these plans.

2.4 Property, Plant and Equipment (PPE) :

Property, Plant and Equipment (PPE) are stated at cost of acquisition or construction (including directly attributable expenses thereto), net of impairment loss if any, less depreciation / amortisation. Cost includes financing costs of borrowed funds attributable to acquisition or construction of qualifying fixed assets, up to the date the assets are put to use. If significant parts of an item of PPE have different useful lives, then they are accounted for as separate items major components of PPE. An item of PPE is de-recognised upon disposal or when no future economic benefits are expected to arise from the combined use of the asset. Any gain or loss arising on the disposal or retirement of an item of PPE is determined as the difference between the sales proceeds and is recognised in the Statement of Profit and Loss. Cost of assets not ready for intended use, as on the reporting date, is shown under capital work-in-progress. Advances given towards acquisition of property, plant and equipment outstanding as at reporting date are disclosed as "other non-current assets”.

Depreciation / Amortization :

i) Leasehold land is depreciated over the period of the lease.

ii) Depreciation on cost of PPE is provided on straight-line method (SLM) over the useful lives as specified in Part ‘C'' of Schedule II of the Act. Useful lives are reviewed by the Company''s management at each Balance Sheet date and revised, if appropriate. In case of a revision, the unamortized depreciable amount is charged over the revised remaining useful life.

iii) Depreciation on additions / deletions to PPE during the year is provided for on a pro-rata basis with reference to the date of additions / deletions except low value of items costing Rs.5,000.00 or less which are fully depreciated in the year when the assets are put to use.

iv) Depreciation on subsequent expenditure on PPE arising on account of capital improvement or other factors is provided for prospectively over the remaining useful life.

v) Intangible assets are recorded at its acquisition price and amortized on the straight-line method over a period of three years.

2.5 Impairment :

The carrying amounts of PPE are reviewed at each balance sheet date to determine if there is any indication of impairment based on internal / external factors. Assessment of indication of impairment of an asset is made at the year end. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the Company measures its ‘value in use'' on the basis of estimated discounted cash flows of projections based on current prices.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

2.6 Inventories :

Inventories comprise of all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition.

Raw materials are valued at the lower of cost and net realisable value. Cost is ascertained on a moving weighted average basis, except for goods in transit which is ascertained on a specific identification basis.

Work-in-progress, finished goods and traded goods are carried at the lower of cost and net realizable value. Cost is determined on a weighted average basis. In case of work-in progress and manufactured finished goods, cost includes material, labour and production overheads. Fixed production overheads are allocated on the basis of normal capacity of production facilities.

Net realisable value of work-in-progress is determined with reference to the estimated selling price less estimated cost of completion and estimated costs necessary to make the sale of related finished goods. Raw materials held for production of finished goods are not written down below cost, except if it is estimated that the cost of the finished product will exceed its net realisable value.

2.7 Foreign Currency Transactions :

Initial recognition :

Foreign currency transactions are translated in the functional currency, by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency, prevailing at the date of transaction.

Conversion :

Foreign currency monetary items as at balance sheet date are translated using the closing exchange rate on that date.

Exchange differences :

Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the yearend exchange rates are recognised in the Statement of Profit and Loss in the year in which they arise, except exchange differences arising from the translation of qualifying cash flow hedges to the extent that the hedges are effective, which are recognized in Other Comprehensive Income (OCI).

2.8 Operating Lease :

Ind AS 116 defines a lease term as the noncancellable period for which the lessee has the right to use an underlying asset including optional periods, when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. The Company considers all relevant facts and circumstances that create

an economic incentive for the lessee to exercise the option when determining the lease term. The option to extend the lease term is included in the lease term, if it is reasonably certain that the lessee would exercise the option. The Company reassesses the option when significant events or changes in circumstances occur that are within the control of the lessee.

IND AS 116 : Leases:

The company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurredandanestimateofcoststodismantleandremovetheunderlyingassetortorestoretheunderlyingassetort hesite on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, company''s incremental borrowing rate. Generally, the company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following :

¦ Fixed payments, including in-substance fixed payments;

¦ Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

¦ Amounts expected to be payable under a residual value guarantee; and

¦ The exercise price under a purchase option that the company is reasonably certain to exercise, lease payments in an optional renewal period if the company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the company is reasonably certain not to terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the company''s estimate of the amount expected to be payable under a residual value guarantee, or if company changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company presents right-of-use assets that do not meet the definition of investment property in ‘property, plant and equipment'' and lease liabilities in ‘loans and borrowings'' in the statement of financial position.

Short-term leases and leases of low-value assets

The company has elected not to recognise right-of-use assets and lease liabilities for short term leases of real estate properties that have a lease term of 12 months. The company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

Under Ind AS 17

In the comparative period, Leases, where the less or effectively retains substantially all the risks and benefits of ownership of the leased assets during the lease term, are classified as operating leases. Operating lease payments are recognized as expense in the Statement of Profit and loss on a straight-line basis over the lease term, unless such payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.

2.9 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. Revenue is measured at the fair value of the consideration

received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts and taxes:

i. Revenue from sale of goods is recognised on transfer of significant risk and rewards of ownership of products to the customers.

ii. Interest income is accounted for on a time proportion basis taking into account the amount outstanding and the rate applicable.

iiI. Dividend income is recorded when the right to receive payment is established.

2.10 Employee benefits :

a) Short term employee benefits :

Employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and are recognised in the period in which the employee renders the related service.

b) Post-employment benefits :

Defined benefit plans

Most of the employees are covered under Employees'' Gratuity Scheme, which is a defined benefit plan. The Company contributes to a fund maintained with Life Insurance Corporation of India (LIC) on the basis of the year-end liability determined based on actuarial valuation. Net interest expense and other expenses related to defined benefit plans are recognised in the Statement of Profit and Loss.

Defined benefit plans

Provision for long term employee benefits comprise of compensated absences. These are measured on the basis of year end actuarial valuation in line with the Company''s rules for compensated absences. Remeasurement gains or losses are recognised in statement of profit and loss in the period in which they arise.

2.11 Financial instruments :

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

Financial assets :

Initial recognition and measurement:

Financial assets are recognized initially at fair value. Transaction costs that are directly attributable to the acquisition of financial assets (other than financial assets not recorded at fair value through profit and loss) are added to the fair value of financial assets. Transaction costs directly attributable to the acquisition of financial assets at fair value through profit and loss are recognised immediately in Statement of Profit and Loss.

Subsequent measurement:

For the purposes of subsequent measurement, financial assets are classified into below categories:

¦ Financial assets at amortised cost;

¦ Financial assets at fair value through profit or loss (FVTPL)

¦ Financial assets at fair value through other comprehensive income (FVTOCI)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

Financial assets including derivatives at fair value through profit or loss (FVTPL) :

Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost of fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets at fair value through profit or loss are immediately recognized in the Statement of Profit and Loss.

Financial Liabilities :

Initial recognition and measurement:

Financial liabilities are classified, at initial recognition, as measured at amortised cost or financial liabilities at fair value through profit or loss (FVTPL). The Company''s financial liabilities include trade and other payables.

Equity instruments issued by the Company are classified as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

2.12 Income and deferred taxes :

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the provisions of the Indian Income Tax Act, 1961. Deferred tax is provided using the liability method on temporary differences between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

2.13 Provisions, Contingent Liabilities and Contingent Assets :

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made of the amount of obligation. Provisions are not discounted to its present value and are determined based on best estimate 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 disclosure by way of a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Contingent assets are not recognised or disclosed in the financial statements.

2.14 Earnings per share :

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders, by the weighted average number of equity shares outstanding during the period.

Diluted earnings per share is computed by dividing the net profit or loss for the year attributable to the equity shareholders, by the weighted average number of equity and equivalent diluted equity shares outstanding during the year except where the results would be antidilutive.

2.15 Cash and cash equivalents :

Cash and cash equivalents include cheques in hand, cash at bank and deposits with banks having original maturity of not more than three months.

2.16 Fair value measurement :

The Company''s accounting policies and disclosures require the measurement of fair values for, both financial and non-financial assets and liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company has an established control framework with respect to the measurement of fair values. The Company''s management regularly reviews significant unobservable inputs and valuation adjustments. If third party information is used to measure fair values, then the management assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such valuations should be classified.

When measuring the fair value of a financial asset or a financial liability, the Company uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 : Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 : Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value includes discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result from general

approximation of value and the same may differ from the actual realised value. Further information about the assumptions made in measuring fair value is included in the note 2.11 on financial instruments.

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Mar 31, 2016

1. CORPORATE INFORMATION:

CENTENIAL SURGICAL SUTURE LTD. (''the Company'') is a public company domiciled and headquartered in Mumbai, Maharashtra, India. It is incorporated under the Companies Act, 1956 and its shares are listed on the BSE Ltd., Maharashtra and Ahmedabad Stock Exchange Ltd., Gujarat. The Company is in the business of manufacturing, marketing and selling of surgical sutures and medical devices.

2. BASIS OF PREPARATION :

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and Companies (Accounting Standards) Amendment Rules, 2016. The financial statements have been prepared under the historical cost convention on an accrual basis.

The accounting policies adopted in the preparation of financial statements are consistent with those used in previous year, except for the change in accounting policy explained below.

2.1. Summary of significant accounting policies

[a] Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting year. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future years.

[b] Property, Plant and Equipment

Property, plant and equipment, capital work in progress are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing plant, property and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the year during which such expenses are incurred. Gains or losses arising from de recognition of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

[c] Depreciation on property, plant and equipment

Leasehold Land is amortized on straight Line Basis over the period of lease i.e. 95 years. Depreciation on property, plant and equipment is calculated on a straight-line basis using the rates arrived at, based on the useful lives estimated by the management, which are equal to the useful lives prescribed under Schedule II to the Companies Act, 2013. Depreciation on the amount of adjustment to property, plant and equipment on account of capitalization of insurance spares is provided over the remaining useful lives of related assets. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

[d] Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred. Costs relating to software, software licenses and website development, which are acquired, are capitalized and amortized on a straight-line basis over their four year useful lives or actual period of license, whichever is lower.

[e] Leases

Where the Company is lessee

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

[f] Borrowing costs

Borrowing cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of borrowings. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the year they occur.

[g] Impairment of Assets

The fixed assets are reviewed for impairment at each balance sheet date. An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate or recoverable amount. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

[h] Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long - term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

[i] Inventories Inventories are valued as follows:

Raw materials, stores and spares and Lower of cost and net realizable value. However, packing materials materials and other items held for use in the production

of inventories are not written down below cost if the finished products in which they will be incorporated, are expected to be sold at or above cost. Cost is determined on moving weighted average method.

Work in progress and finished goods Lower of cost and net realizable value. Cost includes (own Manufactured) direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty. Cost is determined on monthly moving weighted average basis.

Traded goods Lower of cost and net realizable value. Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on moving weighted average basis.

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

[j] 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. The following specific recognition criteria must also be met before revenue is recognized:

Sale of goods

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. The Company collects sales taxes and value added taxes (VAT) on behalf of the government and, therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from revenue. Excise duty deducted from revenue (gross) is the amount that is included in the revenue (gross) and not the entire amount of liability arising during the year.

Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

Export Benefits

Export entitlements in the form of Duty Drawback Scheme, Focus Product Scheme and Merchandise Export from India are recognized in the statement of profit and loss when the right to receive credit as per the terms of the scheme is established in respect of exports made and when there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.

Dividends

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

[k] Foreign currency translation Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction. Nonmonetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

Exchange differences

Exchange differences arising on the settlement of monetary items, or on reporting such monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

[l] Retirement and other employee benefits

(i) Retirement benefits in the form of provident fund (where contributed to the Regional PF Commissioner) is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash refund. Retirement benefits in the form of provident fund contributed to the Trust set up by the employer is a defined benefit scheme and is provided for on the basis of actuarial valuation of projected unit credit method made at the end of each financial year. The difference between the actuarial valuation of the provident fund of employees at the year end and the balance of own managed funds is provided for as liability in the books by the Company.

(ii) Gratuity liability under the Payment of Gratuity Act is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year. The gratuity plan has been funded by policy taken from Life Insurance Corporation of India. Actuarial gains and losses for defined benefit plan are recognized in full in the year in which they occur in the statement of profit and loss.

(iii) Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

(iv) The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/losses are immediately taken to the statement of profit and loss and are not deferred. The Company presents the entire leave as a current liability in the balance sheet, since it does not have an unconditional right to defer its settlement for 12 months after the reporting date.

[m] Income taxes

Tax expense comprises of current tax and deferred tax. Current income tax is measured at the amount expected to be paid to the income tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the Company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits. At each reporting date, the Company reassesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

[n] Segment reporting

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

[o] Earnings per equity share

Basic earnings per equity share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of shares outstanding during the year is adjusted for share split that have changed the number of equity shares outstanding without a corresponding change in resources. For the purpose of calculating diluted earnings per equity share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

[p] Provisions

A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

[q] Cash and cash equivalents

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

[r] Contingent Liabilities

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.

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Mar 31, 2015

1.1. Basis of Accounting

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects 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 an accrual basis and under the historical cost convention unless otherwise specified. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year unless otherwise specified.

1.2. Use of Estimates

Preparation of financial statements in conformity with generally accepted accounting principles, requires management to make estimates and assumption to be made, that affect reported amounts of assets and liabilities at the date of financial statements and reported amount of revenues and expenses during the reported period. Actual results could differ from these estimates and differences between the actual results and estimates are recognized in the period in which results are known / materialized.

1.3. Fixed Assets

Tangible assets are stated at cost of acquisition and installation including other direct expenses, less accumulated depreciation, and impairment losses, if any. Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably.

1.4. Expenditure during Construction Period

All identifiable revenue expenses including interest incurred is allocated to capital cost of respective assets.

1.5. Investments

Investments are stated at cost of acquisition.

1.6. Inventories

1.6.1. Raw materials, packing materials, finished/traded goods are valued at cost or net realisable value whichever is lower.

1.6.2. Works in process are valued at estimated cost.

1.7. Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transaction. The net gain or loss on account of exchange differences arising on settlement of foreign currency transactions are recognised as income or expenses of the period in which they arise. The resultant exchange differences are recognised in the statement of profit and loss.

1.8. Revenue Recognition

Revenue on sales is recognised when risk and rewards of ownership of products are passed on to customers, which are generally on dispatch of goods. Sales are net of discounts, sales tax and returns; excise duty collected on sales is shown by way of deduction from sales. Dividend income is recognised when right to receive dividend is established and there is no uncertainty as to its reliability. Revenue in respect of other income is recognised when a reasonable certainty as to its realisation exists.

1.9. Export Benefits

Eligible export benefits, if any, are recognised in the statement of profit and loss when the right to receive credit as per the terms of the entitlement and reasonable certainty of collection / utilisation is stabilised in respect of exports made/to be made.

1.10. Depreciation / Amortization

Depreciation is provided on Written Down Value method at the rates specified in Schedule XIV to the Companies Act, 1956. Leasehold land is being amortised over the period of the lease.

1.11. Employee Benefits

1.11.1. Short Term Employee Benefits:

Short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised undiscounted during the period employee renders services.

1.11.2. Post Employment Benefits:

Company's contribution for the period paid / payable to defined contribution retirement benefit schemes are charged to statement of profit and loss account. Company's liability towards defined benefit plan viz. gratuity is determined using the Projected Unit Credit Method as per the actuarial valuation carried out at the balance sheet date.

Defined benefit in the form of compensated absences is provided for based on actuarial valuation at the year-end in accordance with Company's rules.

1.12 Research and Development

Research costs are expensed as and when incurred.

1.13. Custom Duty

The customs duty payable on raw materials, stores, spares and components is accounted thereof from the bonded warehouse are provided for and included in the valuation of inventory.

1.14. Cenvat, Service Tax and VAT Credit

Cenvat, Service Tax and VAT credit receivable/availed are treated as an asset with relevant expenses being accounted net of such credit, and the same is reduced to the extent of their utilisations.

1.15. Income Tax

Current tax is accounted on the basis of Income Tax Act, 1961. Deferred tax resulting from timing differences between book and tax profits is accounted for at the current rate of tax, to the extent that the timing differences are expected to crystallise. MAT Credit Entitlement as per the provisions of Income Tax Act, 1961 is treated as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961, by credit to the Statement of Profit and Loss.

Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The carrying amount of deferred tax is reviewed at each balance sheet date. The Company writes down the carrying amount of the deferred tax assets to the extent that it is no longer reasonably certain or virtually certain and supported by convincing evidence, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised.

1.16. Impairment of Assets

The fixed assets are reviewed for impairment at each balance sheet date. An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate or recoverable amount. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

1.17. Operating Leases

The Company has not taken any leases.

1.18. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised only when there is present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an out flow of resources will be required to settle the obligation or a reliable estimate of amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

1.19. Borrowing Cost

Borrowing cost attributable to acquisition or construction of qualifying assets is capitalised as cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

(b) The Company has only one class of shares referred to as equity shares having face value of Rs. 10/-. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2014

1.1. Basis of Accounting

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects 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 an accrual basis and under the historical cost convention unless otherwise specified. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year unless otherwise specified.

2.2. Use of Estimates

Preparation of financial statements in conformity with generally accepted accounting principles, requires management to make estimates and assumption to be made, that affect reported amounts of assets and liabilities at the date of financial statements and reported amount of revenues and expenses during the reported period. Actual results could differ from these estimates and differences between the actual results and estimates are recognized in the period in which results are known / materialized.

2.3. Fixed Assets

Tangible assets are stated at cost of acquisition and installation including other direct expenses, less accumulated depreciation, and impairment losses, if any. Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably.

2.4. Expenditure during Construction Period

All identifiable revenue expenses including interest incurred is allocated to capital cost of respective assets.

2.5. Investments

Investments are stated at cost of acquisition.

2.6. Inventories

2.6.1. Raw materials, packing materials, finished/traded goods are valued at cost or net realisable value whichever is lower.

2.6.2. Works in process are valued at estimated cost.

2.7. Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transaction. The net gain or loss on account of exchange differences arising on settlement of foreign currency transactions are recognised as income or expenses of the period in which they arise. The resultant exchange differences are recognised in the statement of profit and loss,

2.8. Revenue Recognition

Revenue on sales is recognised when risk and rewards of ownership of products are passed on to customers, which are generally on dispatch of goods. Sales are net of discounts, sales tax and

returns; excise duty collected on sales is shown by way of deduction from sales. Dividend income is recognised when right to receive dividend is established and there is no uncertainty as to its reliability. Revenue in respect of other income is recognised when a reasonable certainty as to its realisation exists.

2.9. Export Benefits

Eligible export benefits, if any, are recognised in the statement of profit and loss when the right to receive credit as per the terms of the entitlement and reasonable certainty of collection / utilisation is stabilised in respect of exports made/to be made.

2.10. Depreciation/Amortization

Depreciation is provided on Written Down Value method at the rates specified in Schedule XIV to the Companies Act, 1956. Leasehold land is being amortised over the period of the lease.

2.11. Employee Benefits

2.11.1. Short Term Employee Benefits:

Short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised undiscounted during the period employee renders services.

2.11.2. Post-Employment Benefits:

Company''s contribution for the period paid / payable to defined contribution retirement benefit schemes are charged to statement of profit and loss account. Company''s liability towards defined benefit plan viz. gratuity is determined using the Projected Unit Credit Method as per the actuarial valuation carried out at the balance sheet date.

Defined benefit in the form of compensated absences is provided for based on actuarial valuation at the year-end in accordance with Company''s rules.

2.12. Research and Development

Research costs are expensed as and when incurred.

2.13. Custom Duty

The customs duty payable on raw materials, stores, spares and components is accounted thereof from the bonded warehouse are provided for and included in the valuation of inventory.

2.14. Cenvat, Service Tax and VAT Credit

Cenvat, Service Tax and VAT credit receivable / availed are treated as an asset with relevant expenses being accounted net of such credit, and the same is reduced to the extent of their utilisations.

2.15. Income Tax

Current tax is accounted on the basis of Income Tax Act, 1961. Deferred tax resulting from timing differences between book and tax profits is accounted for at the current rate of tax, to the extent that the timing differences are expected to crystallise. MAT Credit Entitlement as per the provisions of Income Tax Act, 1961 is treated as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961, by credit to the Statement of Profit and Loss.

Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The carrying amount of deferred tax is reviewed at each balance sheet date. The Company writes down the carrying amount of the deferred tax assets to the extent that it is no longer reasonably certain or virtually certain and supported by convincing evidence, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised.

2.16. Impairment of Assets

The fixed assets are reviewed for impairment at each balance sheet date. An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate or recoverable amount. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

2.17. Operating Leases

The Company has not taken any leases.

2.18. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised only when there is present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an out flow of resources will be required to settle the obligation or a reliable estimate of amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

2.19. Borrowing Cost

Borrowing cost attributable to acquisition or construction of qualifying assets is capitalised as cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

(b) The Company has only one class of shares referred to as equity shares having face value of Rs. 10/-. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

Cash credit facilities are secured by way of hypothecation of stock and book debts. It is further secured by collateral charge on immoveable properties, hypothecation of plant and machinery, other fixed assets of the Company, in addition to personal guarantee of the Promoter / Director.

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Mar 31, 2013

1.1. Basis of Accounting

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects 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 an accrual basis and under the historical cost convention unless otherwise specified. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year unless otherwise specified.

1.2. Use of Estimates

Preparation of financial statements in conformity with generally accepted accounting principles, requires management to make estimates and assumption to be made, that affect reported amounts of assets and liabilities at the date of financial statements and reported amount of revenues and expenses during the reported period. Actual results could differ from these estimates and differences between the actual results and estimates are recognized in the period in which results are known / materialized.

1.3. Fixed Assets

Tangible assets are stated at cost of acquisition and installation including other direct expenses, less accumulated depreciation, and impairment losses, if any. Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably.

1.4. Expenditure during Construction Period

All identifiable revenue expenses including interest incurred is allocated to capital cost of respective assets.

1.5. Investments

Investments are stated at cost of acquisition.

1.6. Inventories

1.6.1. Raw materials, packing materials, finished/traded goods are valued at cost or net realisable value whichever is lower.

1.6.2. Works in process are valued at estimated cost.

1.7. Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transaction. The net gain or loss on account of exchange differences arising on settlement of foreign currency transactions are recognised as income or expenses of the period in which they arise. The resultant exchange differences are recognised in the statement of profit and loss.

1.8. Revenue Recognition

Revenue on sales is recognised when risk and rewards of ownership of products are passed on to customers, which are generally on dispatch of goods. Sales are net of discounts, sales tax and returns; excise duty collected on sales is shown by way of deduction from sales. Dividend income is recognised when right to receive dividend is established and there is no uncertainty as to its reliability. Revenue in respect of other income is recognised when a reasonable certainty as to its realisation exists.

1.9. Export Benefits .

Eligible export benefits, if any, are recognised in the statement of profit and loss when the right to receive credit as per the terms of the entitlement and reasonable certainty of collection / utilisation is stabilised in respect of exports made/to be made.

1.10. Depreciation / Amortization

Depreciation is provided on Written Down Value method at the rates specified in Schedule XIV to the Companies Act, 1956. Leasehold land is being amortised over the period of the lease.

1.11. Employee Benefits

1.11.1. Short Term Employee Benefits:

Short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised undiscounted during the period employee renders services.

1.11.2. Post Employment Benefits:

Company''s contribution for the period paid / payable to defined contribution retirement benefit schemes are charged to statement of profit and loss account. Company''s liability towards defined benefit plan viz. gratuity is determined using the Projected Unit Credit Method as per the actuarial valuation carried out at the balance sheet date.

Defined benefit in the form of compensated absences is provided for based on actuarial valuation at the year-end in accordance with Company''s rules.

1.12. Research and Development

Research costs are expensed as and when incurred.

1.13. Custom Duty

The customs duty payable on raw materials, stores, spares and components is accounted thereof from the bonded warehouse are provided for and included in the valuation of inventory.

1.14. Cenvat, Service Tax and VAT Credit

Cenvat, Service Tax and VAT credit receivable/availed are treated as an asset with relevant expenses being accounted net of such credit, and the same is reduced to the extent of their utilisations.

1.15. Income Tax

Current tax is accounted on the basis of Income Tax Act, 1961. Deferred tax resulting from timing differences between book and tax profits is accounted for at the current rate of tax, to the extent that the timing differences are expected to crystallise. MAT Credit Entitlement as per the provisions of Income Tax Act, 1961 is treated as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961, by credit to the Statement of Profit & Loss.

Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The carrying amount of deferred tax is reviewed at each balance sheet date. The Company writes down the carrying amount of the deferred tax assets to the extent that it is no longer reasonably certain or virtually certain and supported by convincing evidence, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised.

1.16. Impairment of Assets

The fixed assets are reviewed for impairment at each balance sheet date. An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of profit & loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate or recoverable amount. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

1.17. Operating Leases

The Company has not taken any leases.

1.18. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised only when there is present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an out flow of resources will be required to settle the obligation or a reliable estimate of amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

1.19. Borrowing Cost

Borrowing cost attributable to acquisition or construction of qualifying assets is capitalised as cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

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Mar 31, 2012

1.1. Basis of Accounting

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects 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 an accrual basis and under the historical cost convention unless otherwise specified. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year unless otherwise specified.

During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

1.2. Use of Estimates

Preparation of financial statements in conformity with generally accepted accounting principles, requires management to make estimates and assumption to be made, that affect reported amounts of assets and liabilities at the date of financial statements and reported amount of revenues and expenses during the reported period. Actual results could differ from these estimates and differences between the actuai results and estimates are recognized in the period in which results are known / materialized.

1.3. Fixed Assets

Tangible assets are stated at cost of acquisition and installation including other direct expenses, less accumulated depreciation, and impairment losses, if any. Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably.

1.4. Expenditure during Construction Period

All identifiable revenue expenses including interest incurred is allocated to capital cost of respective assets.

1.5. Investments

Investments are stated at cost of acquisition.

1.6. Inventories

1.6.1. Raw materials, packing materials, finished/traded goods are valued at cost or net realisable value whichever is lower.

1.6.2. Works in process are valued at estimated cost.

1.7. Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transaction. The net gain or loss on account of exchange differences arising on settlement of foreign currency transactions are recognised as income or expenses of the period in which they arise. The resultant exchange differences are recognised in the statement of profit and loss.

1.8. Revenue Recognition

Revenue on sales is recognised when risk and rewards of ownership of products are passed on to customers, which are generally on dispatch of goods. Incomes from services are recognised when services are rendered. Sales are net of discounts, sales tax and returns; excise duty collected on sales is shown by way of deduction from sales. Dividend income is recognised when right to receive dividend is established and there is no uncertainty as to its reliability. Revenue in respect of other income is recognised when a reasonable certainty as to its realisation exists.

1.9. Export Benefits

Eligible export benefits, if any, are recognised in the statement of profit and loss when the right to receive credit as per the terms of the entitlement and reasonable certainty of collection / utilisation is stablised in respect of exports made/to be made.

1.10. Depreciatiorv'Amortization

Depreciation is provided on Written Down Value method at the rates specified in Schedule XIV to the Companies Act, 1956. Leasehold land is being amortised over the period of the lease.

1.11. Employee Benefits

1.11.1. Short Term Employee Benefits:

Short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised undiscounted during the period employee renders services.

1.11.2. Post Employment Benefits:

Company's contribution for the period paid / payable to defined contribution retirement benefit schemes are charged to statement of profit and loss account. Company's liability towards defined benefit plan viz. gratuity is determined using the Projected Unit Credit Method as per the actuarial valuation carried out at the balance sheet date.

Defined benefit in the form of compensated absences is provided for based on actuarial valuation at the year-end in accordance with Company's rules.

1.12. Research and Development

Research costs are expensed as and when incurred.

1.13. Custom Duty

The customs duty payable on raw materials, stores, spares and components is accounted thereof from the bonded warehouse are provided for and included in the valuation of inventory.

1.14. Cenvat, Service Tax and VAT Credit

Cenvat, Service Tax and VAT credit receivable/availed are treated as an asset with relevant expenses being accounted net of such credit, and the same is reduced to the extent of their utilisations.

1.15. Income Tax

Current tax is accounted on the basis of Income Tax Act, 1961. Deferred tax resulting from timing differences between book and tax profits is accounted for at the current rate of tax, to the extent that the timing differences are expected to crystallise. MAT Credit Entitlement as per the provisions of Income Tax Act, 1961 is treated as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961, by credit to the Statement of Profit & Loss.

Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficent future taxable income will be available against which such deferred tax assets can be realised. The carrying amount of deferred tax is reviewd at each balance sheet date. The Company writes down the carrying amount of the deferred tax assets to the extent that it is no longer reasonbly certian or virtually certain and supported by convincing evidence, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised.

1.16. Impairment of Assets

The fixed assets are reviewed for impairment at each balance sheet date. An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of profit & loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate or recoverable amount. Any such write-down is reveresed to the extent that it becomes reasonbly certain or virtually certain, as the case may be, that sufficent future taxable income will be available.

1.17. Operating Leases

The Company has not taken any leases.

1.18. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised only when there is present obligation as a result of past events and when a reliable -estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an out flow of resources will be required to settle the obligation or a reliable estimate of amount of the obligation cannot be made. Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

1.19. Borrowing Cost

Borrowing cost attributable to acquisition or construction of qualifying assets is capitalised as cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

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Mar 31, 2011

ACCOUNTING CONVENTION : The financial statements are prepared under the historical cost convention in accordance with applicable accounting standards.

FIXED ASSETS : Fixed Assets are stated at cost 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.

DEPRECIATION : Depreciation is provided as per the W.D.V method at rates provided by Company's Act.

INVESTMENTS : Investments are stated at cost.

INVENTORIES : Inventories are stated at lower of cost and net realisable value. Cost includes excise duty and appropriate allocation of direct and variable overheads.

TAXES ON INCOME : Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). Provision for Income Tax is recognised on an annual basis under the taxes payable method, based on the estimated tax liability computed after taking credit for allowances and exemption in accordance with Indian Income Tax Act, 1961.

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date for appropriateness of their carrying value at each balance sheet date.

GRATUITY, LEAVE ENCASHEMENT : The Company has registered with the Life Insurance Corporation of India under the Employees Group Gratuity Scheme and provision for gratuity has been made during the year. No provision has been made in the accounts towards encashment of earned leaves not availed by the employees up to March 31, 2011. Since their encashment as per the rules of the company does not fall due on the said date. The same shall be accounted for as and when paid.

CUSTOMS DUTY: The customs duty payable on raw materials, stores, spares and components is accounted thereof from the bonded warehouses.

FOREIGN EXCHANGE TRANSACTIONS : Transactions in foreign currency are recorded at the exchange rate prevailing at the time of transaction. The exchange difference arising out of the subsequent settlements are dealt with in Profit & Loss Account.

DEFERRED TAX : Deferred Tax is accounted for by computing the Tax effect of timing differences, which arise during the year and reversed in subsequent periods.

SALES : Sale of goods is recognised at the point of dispatch to the customer.

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Mar 31, 2010

ACCOUNTING CONVENTION : The financial statements are prepared under the historical cost convention in accordance with applicable accounting standards.

FIXED ASSETS : fixed Assets are stated at cost less accumulated depredation, cost is inclusive of freight, duties, levies, and any directly attributable cost of bringing the assets to their working condition for intended use.

DEPRECIATION : Depreciation is provided as per the W.D.V method at rates provided by Companys Act.

INVESTMENTS : Investments are stated at cost.

INVENTORIES : Inventories are stated at lower of cost and net realisable value. Cost includes excise duty and appropriate allocation of direct and variable overheads,

TAXES ON INCOME : Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law) and deferred tax charge or credit {reflecting the tax effects of timing differences between accounting income and taxable income for the period). Provision for Income Tax is recognised on an annual basis under the taxes payable method, based on the estimated tax liability computed after taking credit for allowances and exemption in accordance with Indian Income Tax Act, 1961.

The deferred tax change or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets Can be realised in future; however, where there is un absorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date for appropriateness of their carrying value at each balance sheet date.

GRATUITY; LEAVE ENCASHEMENT : The Company has registered with the Life Insurance Corporation of India under the Employees Croup Gratuity Scheme and provision for gratuity has been made during the year. No provision has been made in the accounts towards encashment of earned leaves not availed by the employees up to March 31, 2010. Since their encashment as per the rules of the company does not fall due on the said date. The same shall be accounted for as and when paid.

CUSTOMS DUTY : The customs duty payable on raw materials, stores, spares and components is accounted thereof from the bonded warehouses.

FOREIGN EXCHANGE TRANSECTIONS ; Transactions in foreign currency are recorded at the exchange rate prevailing at the time of transaction. The exchange difference arising out of the subsequent settlements are dealt with in Profit & Loss Account.

DEFERRED TAX : Deferred Tax is accounted for by computing the Tax effect of timing differences, which arise during the year and reversed in subsequent periods.

SALES : Sale of goods is recognised at the point of dispatch to the customer.