Accounting Policies of Control Print Ltd. Company

Mar 31, 2025

B) Material Accounting Policies

(i) Statement of compliance with Ind AS

The financial statements have been prepared
in accordance with Indian Accounting
Standard (Ind AS) as notified under Section
133 of the Companies Act, 2013 read with the
Companies (Indian Accounting Standard)
Rules, 2015 as amended from time to time
and other relevant provisions of the Act.

(ii) Basis of Preparation and Presentation

These financial statements are prepared in
accordance with Indian Accounting Standards
(Ind AS) under the historical cost convention
on accrual basis except for certain financial
instruments which are measured at fair
values. All assets and liabilities have been
classified as current or non-current based on
normal operating cycle of business activities
of the Company, which is 12 months.

(iii) Use of estimates

The preparation of the financial statements
requires Management to make judgements,
estimates and assumptions that affect the

reported amounts of revenues, expenses,
assets and liabilities and accompanying
disclosures, and the disclosure of contingent
liabilities. Uncertainty about these
assumptions and estimates could result in
outcomes that require a material adjustment
to the carrying amount of assets or liabilities
affected in future periods.

The said estimates are based on the facts
and events, that existed as at the reporting
date, or that occurred after that date but
provide additional evidence about conditions
existing as at the reporting date.

(iv) Property, Plant and Equipment

Property, plant and equipment are stated at
historical cost less accumulated depreciation
and impairment losses, if any. Freehold land
is not depreciated. The cost of an item of
property, plant and equipment comprises its
cost of purchase and any attributable cost of
bringing the asset to its working condition for
its intended use.

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

(v) Capital work in progress

Property, plant and equipment under
construction as well as Coding and Marking
machines held exclusively for Rental prior to
dispatch to Customer’s location are disclosed
as capital work in progress.

(vi) Intangible Assets

Intangible assets with finite useful lives
that are acquired separately are carried
at cost less accumulated amortisation and
accumulated impairment losses. Amortisation
is recognised on a straight line basis over
their estimated useful lives. The estimated
useful life and amortisation method are
reviewed at the end of each reporting period,
with the effect of any changes in estimate
being accounted for on a prospective basis.
Intangible assets with indefinite useful lives
that are acquired separately are carried at
cost less accumulated impairment losses.

Estimated useful lives of the Intangible
assets are as follows:

Computer Software 6 Years

Technical Know How 6 Years

There are no intangible assets having
indefinite useful life.

An intangible asset is derecognised upon
disposal or when no future economic benefits
are expected to arise. Gains or losses arising
from derecognition of an intangible asset,
measured as the difference between the net
disposal proceeds and the carrying amount
of the asset, are recognised in profit or loss
when the asset is derecognised.

(vii) Leases

As a Lessee

At inception of a contract, the Company
assesses whether a contract is, or contain
a lease. A contract is, or contains, a lease
if the contract conveys the right to control
the use of an identified asset for a period
of time in exchange for consideration. To
assess whether a contract conveys the right
to control the use of an identified asset, the
Company assesses whether:

• The contract involves the use of an identified
asset this may be specified explicitly or
implicitly and should be physically distinct or
represent substantially all of the capacity of
a physically distinct asset.

• The Company has the right to substantially
all of the economic benefits from the use of
the asset throughout the period of use; and

• The Company has the right to direct the use
of the asset. The Company has this right
when it has the decision making rights that
are most relevant to changing how and for
what purposes the asset is used.

At the date of commencement of lease, the
Company recognises a Right-of-use asset
(“ROU”) and a corresponding liability for all
lease arrangements in which it is a lessee,
except for leases with the term of twelve
months or less (short term leases) and low
value leases. For short term and low value
leases, the Company recognises the lease
payment as an operating expense on straight
line basis over the term of lease.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis
over the period of the lease term and useful
life of the underlying asset.

The lease liability is initially measured at
amortised cost at the present value of the
future lease payments. The lease payments
are discounted using the interest rate implicit
in the lease or, if that rate cannot be readily
determined, the Company’s incremental
borrowing rate.

Upon adoption of the Ind AS 116 Leases,
Lease liability and ROU asset have been
separately presented in the Balance Sheet.
A Portion of the annual operating lease
costs, which was previously fully recognised
as a rental / lease expense, is recorded as
interest expense. In addition, the portion of
the lease payments, which represents the
reduction of the lease liability is recognised in
the cash flow statement as an outflow from
financing activities, which was previously fully
recognised as an outflow from operating
activities.

As a lessor

At the inception of a lease, the lease
arrangement is classified as either a finance
lease or an operating lease, based on
contractual terms and substance of the
lease arrangement. Whenever the terms of
the lease transfer substantially all the risks
and rewards of ownership to the lessee,
the contract is classified as a finance lease.
All other leases are classified as operating
leases.

Lease income from operating leases where
the Company is a lessor is recognised in
income on a straight-line basis over the lease
term unless the receipts are structured in
accordance with lease agreement. Adoption
of the new standard had no impact upon
leases for which the Company is a lessor.

(viii) Depreciation and Amortisation

Property, plant and equipment

Depreciation is calculated using the straight¬
line method to allocate their cost, net of their
residual values, over their estimated useful
lives.

The useful lives have been taken as specified
by Schedule II to the Companies Act, 2013
except for coding and marking machines
where useful lives have been determined as
seven years based on technical evaluation
done by the Management and for Plant &
Machineries for masks useful lives have been
determined and duly certified by Chartered
Engineer as three years.

Pro-rata depreciation is charged on property,
plant and equipment from/up to the date on
which such assets are ready to put to use/are
deleted or discarded.

Intangible Assets

Intangible assets are amortised over their
respective individual estimated useful life on
straight line basis commencing from the date
such asset is acquired for use in the Company.

Computer Software and Technical Know
How are classified as intangible assets and
amortised on straight line basis over a period
of 6 years.

Pro-rata amortisation is charged on
intangible assets from/up to the date on
which such assets are acquired for use/are
deleted or discarded.

(ix) Impairment of Assets

A tangible or intangible asset is treated as
impaired when the carrying amount of the
asset exceeds its estimated recoverable value.
Carrying amounts of tangible or intangible
assets are reviewed at each balance sheet
date to determine Indications of impairment,
if any, of those assets. If any such Indication
exists, the recoverable amount of the asset
is estimated and an impairment loss equal
to the excess of the carrying amount over
its recoverable value is recognised as an
impairment loss and the same is charged to
profit and loss account. The impairment loss,
if any, recognised in prior accounting period
is reversed if there is a change in estimate of
recoverable amount.

(x) Financial Instruments

Financial assets and financial liabilities are
recognised when the Company becomes
a party to the contractual provision of the
instrument. All the financial assets and
financial liabilities are initially measured
at fair value, except for trade receivables
which are initially measured at transaction
price. Transaction costs that are directly

attributable to the acquisition or issue of
financial assets and financial liabilities (other
than financial assets and financial liabilities
at fair value through profit or loss) are
added to or deducted from the fair value of
the financial assets or financial liabilities, as
appropriate, on initial recognition.

(xi) Financial Assets
Initial recognition

Financial assets are recognised when the
Company becomes a party to the contractual
provisions of the instruments.

• Financial assets are initially recognised
at fair value plus transaction costs for all
financial assets not carried at fair value
through profit or loss.

• Financial assets carried at fair value
through profit or loss are initially
recognised at fair value, and transaction
costs are expensed in the Statement of
Profit and Loss.

Subsequent measurement

All recognised financial assets are
subsequently measured either at amortised
cost or fair value [either through other
comprehensive income (FVTOCI) or through
profit or loss (FVTPL)] depending on the
classification of the financial assets as
follows:

(a) Financial Asset measured at Amortised
Cost: The Company’s financial assets
primarily consists of cash and cash
equivalents, trade receivables, loans to
employees, security deposits and other
eligible current and non-current assets
which are classified as financial assets
carried at amortised cost.

(b) Financial Asset measured at Fair Value
through Other Comprehensive Income

(FVTOCI): On initial recognition, the
Company has made irrevocable election
in respect of purchases/acquisition
on an instrument-by-instrument basis
to present the subsequent changes
in fair value in other comprehensive
income pertaining to investments in
equity instruments. This election is not
permitted if the equity investment is held
for trading. These elected investments
are initially measured at fair value plus

transaction costs. Subsequently, they are
measured at fair value with gains and
losses arising from changes in fair value
recognised in other comprehensive
income and accumulated in the ‘Reserve
for equity instruments through other
comprehensive income’. The cumulative
gain or loss is not reclassified to profit
or loss on disposal of the investments as
the same has been recognised in other
comprehensive income.

(c) Financial assets at fair value through
profit or loss (FVTPL): Investments in
equity instruments are classified as at
FVTPL, unless the Company irrevocably
elects on initial recognition to present
subsequent changes in fair value in other
comprehensive income for investments
in equity instruments which are not held
for trading.

(d) Financial assets at Cost: Contribution
to Venture fund in form of purchase of
units with lock in period of more than
12 months is classified as Non-current
Investment.

Derecognition of financial assets

A financial asset is derecognised when the
contractual right to receive cash flows from
the asset has expired; the Company has
transferred the financial asset along with all
the risks and rewards or has assumed an
obligation to pay the received cash flows
in full to a third party under a pass-through
arrangement.

On derecognition of a financial asset in
its entirety, the difference between the
carrying amounts measured at the date of
derecognition and the consideration received
is recognised in profit or loss.

Impairment of financial assets

The Company applies the expected credit
loss model for recognising impairment loss
on financial assets measured at amortised
cost, trade receivables and other contractual
rights to receive cash or other financial asset.

Expected Credit Loss (ECL) is the difference
between all contractual cash flows that are
due in accordance with the contract and the
cash flows expected to receive (i.e., all cash
shortfalls).

(xii) Financial Liabilities

Financial liabilities of the Company are
contractual obligation to deliver cash or
another financial asset to another entity. The
Company’s financial liabilities include long¬
term and short-term borrowings, trade and
other payables and other eligible current and
non-current liabilities.

Classification Measurement and De¬
recognition

All recognised financial liabilities are
subsequently measured at amortised
cost. The Company de-recognise financial
liabilities when, and only when, the Company’s
obligations are discharged, cancelled, or
have expired. Gain and losses are recognised
in profit or loss when the liabilities are
derecognised.

(xiii) Offsetting of financial instruments

Financial Assets and Financial Liabilities
are offset and the net amount is reported
in the balance sheet only if there is a
currently enforceable legal right to offset the
recognised amounts and there is an intention
to settle on a net basis, to realize the assets
and settle the liabilities simultaneously.

(xiv) Valuation of Inventories

Inventories are valued at lower of cost and
net realisable value after providing for non
moving material, obsolescence wherever
necessary. The cost of inventories have been
computed to include all cost of purchases,
cost of conversion and other related costs
incurred in bringing the inventories to their
present location and condition. Net realisable
value is the estimated selling price in the
ordinary course of business, less estimated
costs of completion and estimated costs
necessary to make the sale.

Inventories are carried in the balance sheet
as follows:

(xv) Translation of Foreign Currency
Transactions

The Company’s financial statements are
presented in Indian Rupees (?) which is
Company’s functional and presentation
currency. Transactions denominated in
foreign currency are recognised at the rates
of exchange prevailing at the date of the
transactions. At the end of each reporting
period, monetary items denominated in
foreign currencies are retranslated at the
rates prevailing at year end date. Exchange
differences on monetary items are recognised
in profit or loss in the period in which they
arise. Income and Expenses of foreign branch
have been translated at the average rate for
the year.

(xvi) Revenue Recognition

The Company derives revenues primarily
from sale of manufactured goods, traded
goods, and related services.

Revenue is recognised on satisfaction of
performance obligation upon transfer of
control of promised products or services
to customers in an amount that reflects
the consideration the Company expects to
receive in exchange for those products or
services.

The Company does not expect to have any
contracts where the period between the
transfer of the promised goods or services to
the customer and payment by the customer
exceeds one year. As a consequence, it does
not adjust any of the transaction prices for
the time value of money.

Revenue from sales of manufactured goods,
traded goods and related services are
recognised when significant risks and rewards
of ownership of the goods are transferred to
the customer, recovery of the consideration
is probable, the amount of revenue can be

measured reliably, and all performance
obligation related to contract is satisfied.
Sales are disclosed net of returns and claims.

Other operating revenue include duty
drawback & Export Incentives which are
recognised when the right to receive is
established.

Other Income includes Interest Income,
Dividend Income, Gain on Foreign Exchange
Fluctuations etc. Interest Income accrued
on a time basis by reference to the principal
outstanding and the effective interest rate.
Dividend Income accounted in the period
in which the right to receive the same is
established.

(xvii) Government Grants

Grants and subsidies from the Government
are recognised when there is reasonable
assurance that the grant/ subsidy will be
received, and all the prescribed conditions
will be complied with.

Grant or subsidy relating to an expense item
is recognised as income in the statement
of profit or loss over the periods necessary
to match them on a systematic basis to the
costs which is intended to compensate.

Grant or subsidy relating to an asset are
included in non-current liabilities as deferred
income and are credited to statement of
profit or loss on a straight-line basis over
the expected lives of the related assets and
presented within other income.

(xviii) Borrowing Costs

Borrowing costs directly attributable to the
acquisition, construction or production of
qualifying assets are capitalised as part of
the cost of such assets. A qualifying asset
is one that necessarily takes a substantial
period of time to get ready for their intended
use. All other borrowing costs are recognised
as expense in the period in which they are
incurred.

(xix) Dividends

Final dividend on shares is recorded as
a liability on the date of approval by the
shareholders at the annual general meeting
and interim dividend are recorded as a
liability on the date of declaration by the
Company’s Board of Directors.

(xx) Earnings per share

Basic earnings per share is calculated by
dividing the net profit or loss after tax for the
period attributable to the equity shareholders
by the weighted average number of Equity
Shares outstanding during the year adjusted
for bonus elements in equity shares issued
during the year

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

(xxi) Employee Benefits

Short-term Employee Benefits:

Employee benefits such as salaries, wages,
short term compensated absences, expected
cost of bonus, ex-gratia and performance-
linked rewards falling due wholly within
twelve months of rendering the service are
classified as short term employee benefits
and are expensed in the period in which the
employee renders the related service.

Long-term Employee Benefits:

Defined Contribution Plans:

Contributions to the employee’s provident
fund, Employee’s Pension Scheme and
Employee’s State Insurance are recognised
as defined contribution plan and charged
as expenses during the period in which the
employees perform the services.

Defined Benefit Plans:

Retirement benefits in the form of Gratuity
is considered as defined benefit plan and
determined on actuarial valuation using the
Projected Unit Credit Method at the balance
sheet date.

Interest Cost, Current Service Cost and Past
Service Cost are recognised in profit and loss
account immediately. Re-measurement gain
and losses arising due to change in actuarial
assumptions and estimates are recognised
directly in Other Comprehensive Income. Such
re-measurements are not reclassified to the
Statement of Profit and Loss in subsequent
periods.

Other Long -term Emplouee Benefit:

Compensated absences which are not
expected to occur within twelve months after
the end of the period in which the employee
renders the related services are recognised
as a liability at the present value of the
defined benefit obligation at the balance
sheet date. Annual leaves can either be
availed or encashed subject to restriction on
the maximum accumulation of leaves.

Termination Benefits:

Termination benefits are recognised as
an expense in the period in which they are
incurred.

The employee benefit with regards to
both Leave encashment and Gratuity are
unfunded.

(xxii) Exceptional Items

An item of income or expense which by its
size, type or incidence requires disclosure in
order to improve an understanding of the
performance of the Company is treated as
an exceptional item and the same is disclosed
in the notes to accounts.

(xxiii) Taxes on Income
Current Tax:

Tax on income for the current period is
determined on the basis of estimated taxable
income and computed in accordance with the
provisions of the relevant tax laws, outcome
of past assessments / appeals and legal
opinion sought by the Company.

The Company has recognised provision for
Income Tax for the year ended 31 March 2025
as per Section 115JB of the Income Tax Act,
1961 and is on the same basis as followed for
the year ended 31 March 2024.

Deferred Tax:

Deferred tax is provided using the balance
sheet approach on temporary differences
at the reporting date between the tax bases
of assets and liabilities and their carrying
amounts for financial reporting purposes
at the reporting date. Deferred tax assets
and liabilities are measured at the tax rates
that are expected to apply in the year when
the asset is realized or the liability is settled,

based on tax rates (and tax laws) that have
been enacted or substantively enacted at the
reporting date.

Minimum Alternate Tax (MAT) credit:

Minimum Alternate Tax (MAT) credit is
recognised as an asset only when and to
the extent there is convincing evidence that
the Company will pay income tax under the
normal provisions during the specified period,
resulting in utilisation of MAT credit.

In the year in which the MAT credit becomes
eligible to be recognised as an asset in
accordance with the recommendations
contained in the Guidance Note issued by the
Institute of Chartered Accountants of India,
the said asset is created by way of a credit to
the statement of Profit & Loss and shown as
MAT Credit Entitlement.

Consistent with the stated accounting policy,
the Company has recognised deferred tax
asset, being the Excess of tax on book profit
paid over the Normal income tax for the
past several years standing at ''49.57 Crores
allowed forward as a MAT credit, which can
be utilised against the normal income tax
liability in future years.

Based on the evaluation of the factors
mentioned as per Ind-AS 12 “Income Taxes”,
the Company has determined that there is
virtual certainty that sufficient future taxable
profits will be available against which the
MAT credit Entitlement of ''49.57 Crores can
be utilised.

Therefore, the Company has recognised a
deferred tax asset of '' 49.57 Crores in the
financial Statements for the year ended 31
March 2025.

(xxiv) Segment Reporting

The Company is engaged predominantly
into manufacturing of Coding & Marking
Machines and consumables thereof. The
Company has only One Reportable business
segment identified by Management namely

Coding & Marking Machines and consumable
thereof.

---

Mar 31, 2024

B) Material Accounting Policies

(i) Statement of compliance with Ind AS

The financial statements have been prepared in accordance with Indian Accounting Standard (Ind AS) as notified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standard) Rules, 2015 as amended from time to time and other relevant provisions of the Act.

(ii) Basis of Preparation and Presentation

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on accrual basis except for certain financial instruments which are measured at fair values. All assets and liabilities have been classified as current or non-current based on normal operating cycle of business activities of the Company, which is 12 months.

(iii) Use of estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions

and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

(iv) Property, Plant and Equipment

Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses, if any. Freehold land is not depreciated. The cost of an item of property, plant and equipment comprises its cost of purchase and any attributable cost of bringing the asset to its working condition for its intended use.

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

(v) Capital work in progress

Property, plant and equipment under construction as well as Coding and Marking machines held exclusively for Rental prior to dispatch to Customer’s location are disclosed as capital work in progress.

(vi) Intangible Assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

Estimated useful lives of the Intangible assets are as follows:

Computer Software 6 Years

Technical Know How 6 Years

There are no intangible assets having indefinite useful life.

An intangible asset is derecognised upon disposal or when no future economic benefits are expected to arise. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.

(vii) Leases As a Lessee

At inception of a contract, the Company assesses whether a contract is, or contain a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

• The contract involves the use of an identified asset this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset.

• The Company has the right to substantially all of the economic benefits from the use of the asset throughout the period of use; and

• The Company has the right to direct the use of the asset. The Company has this right when it has the decision making rights that are most relevant to changing how and for what purposes the asset is used.

At the date of commencement of lease, the Company recognises a Right-of-use asset (“ROU”) and a corresponding liability for all lease arrangements in which it is a lessee, except for leases with the term of twelve months or less (short term leases) and low

value leases. For short term and low value leases, the Company recognises the lease payment as an operating expense on straight line basis over the term of lease.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the period of the lease term and useful life of the underlying asset.

The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate.

Upon adoption of the Ind AS 116 Leases, Lease liability and ROU asset have been separately presented in the Balance Sheet. , A Portion of the annual operating lease costs, which was previously fully recognised as a rental / lease expense, is recorded as interest expense. In addition, the portion of the lease payments which represents the reduction of the lease liability is recognised in the cash flow statement as an outflow from financing activities, which was previously fully recognised as an outflow from operating activities.

As a lessor

At the inception of a lease, the lease arrangement is classified as either a finance lease or an operating lease, based on contractual terms and substance of the lease arrangement. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured in accordance with lease agreement. Adoption of the new standard had no impact upon leases for which the Company is a lessor.

(viii) Depreciation and Amortisation

Property, plant and equipment

Depreciation is calculated using the straightline method to allocate their cost, net of their

residual values, over their estimated useful lives.

The useful lives have been taken as specified by Schedule II to the Companies Act, 2013 except for coding and marking machines where useful lives have been determined as seven years based on technical evaluation done by the management and for Plant & Machineries for masks useful lives have been determined and duly certified by Chartered Engineer as three years.

Pro-rata depreciation is charged on property, plant and equipment from/up to the date on which such assets are ready to put to use/are deleted or discarded.

Intangible Assets

Intangible assets are amortised over their respective individual estimated useful life on straight line basis commencing from the date such asset is acquired for use in the Company.

Computer Software and Technical Know How are classified as intangible assets and amortised on straight line basis over a period of 6 years.

Pro-rata amortisetion is charged on intangible assets from/up to the date on which such assets are acquired for use/are deleted or discarded.

(ix) Impairment of Assets

A tangible or intangible asset is treated as impaired when the carrying amount of the asset exceeds its estimated recoverable value. Carrying amounts of tangible or intangible assets are reviewed at each balance sheet date to determine Indications of impairment, if any, of those assets. If any such Indication exists, the recoverable amount of the asset is estimated and an impairment loss equal to the excess of the carrying amount over its recoverable value is recognised as an impairment loss and the same is charged to profit and loss account. The impairment loss, if any, recognised in prior accounting period is reversed if there is a change in estimate of recoverable amount.

(x) Financial Instruments

Financial assets and financial liabilities are recognised when the Company becomes

a party to the contractual provision of the instrument. All the financial assets and financial liabilities are initially measured at fair value, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.

(xi) Financial Assets Initial recognition

Financial assets are recognised when the Company becomes a party to the contractual provisions of the instruments.

• Financial assets are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss.

• Financial assets carried at fair value through profit or loss are initially recognised at fair value, and transaction costs are expensed in the Statement of Profit and Loss.

Subsequent measurement

All recognised financial assets are subsequently measured either at amortised cost or fair value [either through other comprehensive income (FVTOCI) or through profit or loss (FVTPL)] depending on the classification of the financial assets as follows:

(a) Financial Asset measured at Amortised Cost: The Company’s financial assets primarily consists of cash and cash equivalents, trade receivables, loans to employees, security deposits and other eligible current and non-current assets which are classified as financial assets carried at amortised cost.

(b) Financial Asset measured at Fair Value through Other Comprehensive Income

(FVTOCI): On initial recognition, the Company has made irrevocable election in respect of purchases/acquisition on an instrument-by-instrument basis to present the subsequent changes in fair

value in other comprehensive income pertaining to investments in equity instruments. This election is not permitted if the equity investment is held for trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the ‘Reserve for equity instruments through other comprehensive income’. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments as the same has been recognised in other comprehensive income.

(c) Financial assets at fair value through profit or loss (FVTPL): Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading.

(d) Financial assets at Cost: Contribution to Venture fund in form of purchase of units with lock in period of more than 12 months is classified as Non-current Investment.

Derecognition of financial assets

A financial asset is derecognised when the contractual right to receive cash flows from the asset has expired; the Company has transferred the financial asset along with all the risks and rewards or has assumed an obligation to pay the received cash flows in full to a third party under a pass-through arrangement.

On derecognition of a financial asset in its entirety, the difference between the carrying amounts measured at the date of derecognition and the consideration received is recognised in profit or loss.

Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on

financial assets measured at amortised cost, trade receivables and other contractual rights to receive cash or other financial asset.

Expected Credit Loss (ECL) is the difference between all contractual cash flows that are due in accordance with the contract and the cash flows expected to receive (i.e., all cash shortfalls).

(xii) Financial Liabilities

Financial liabilities of the Company are contractual obligation to deliver cash or another financial asset to another entity. The Company’s financial liabilities include longterm and short-term borrowings, trade and other payables and other eligible current and non-current liabilities.

Classification Measurement and Derecognition

All recognised financial liabilities are subsequently measured at amortised cost. The Company de-recognise financial liabilities when, and only when, the Company’s obligations are discharged, cancelled, or have expired. Gain and losses are recognised in profit or loss when the liabilities are derecognised.

(xiii) Offsetting of financial instruments

Financial Assets and Financial Liabilities are offset and the net amount is reported in the balance sheet only if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

(xiv) Valuation of Inventories

Inventories are valued at lower of cost and net realisable value after providing for non moving material, obsolescence wherever necessary. The cost of inventories have been computed to include all cost of purchases, cost of conversion and other related costs incurred in bringing the inventories to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

(xv) Translation of Foreign Currency Transactions

The Company’s financial statements are presented in Indian Rupees ('') which is Company’s functional and presentation currency. Transactions denominated in foreign currency are recognised at the rates of exchange prevailing at the date of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at year end date. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise. Income and Expenses of foreign branch have been translated at the average rate for the year.

(xvi) Revenue Recognition

The Company derives revenues primarily from sale of manufactured goods, traded goods, and related services.

Revenue is recognised on satisfaction of performance obligation upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services.

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, it does not adjust any of the transaction prices for the time value of money.

Revenue from sales of manufactured goods, traded goods and related services are recognised when significant risks and rewards of ownership of the goods are transferred to the customer, recovery of the consideration is probable, the amount of revenue can be measured reliably, and all performance obligation related to contract is satisfied. Sales are disclosed net of returns and claims.

Other operating revenue include duty drawback & Export Incentives which are recognised when the right to receive is established.

Other Income includes Interest Income, Dividend Income, Gain on Foreign Exchange Fluctuations etc. Interest Income accrued on a time basis by reference to the principal outstanding and the effective interest rate. Dividend Income accounted in the period in which the right to receive the same is established.

(xvii) Government Grants

Grants and subsidies from the Government are recognised when there is reasonable assurance that the grant/ subsidy will be received, and all the prescribed conditions will be complied with.

Grant or subsidy relating to an expense item is recognised as income in the statement of profit or loss over the periods necessary to match them on a systematic basis to the costs which is intended to compensate.

Grant or subsidy relating to an asset are included in non-current liabilities as deferred income and are credited to statement of profit or loss on a straight-line basis over the expected lives of the related assets and presented within other income.

(xviii) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for their intended use. All other borrowing costs are recognised as expense in the period in which they are incurred.

(xix) Dividends

Final dividend on shares is recorded as a liability on the date of approval by the

shareholders at the annual general meeting and interim dividend are recorded as a liability on the date of declaration by the Company’s Board of Directors.

(xx) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss after tax for the period attributable to the equity shareholders by the weighted average number of Equity Shares outstanding during the year adjusted for bonus elements in equity shares issued during the year.

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

(xxi) Employee Benefits

Short-term Employee Benefits:

Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia and performance-linked rewards falling due wholly within twelve months of rendering the service are classified as short term employee benefits and are expensed in the period in which the employee renders the related service.

Long-term Employee Benefits:

Defined Contribution Plans:

Contributions to the employee’s provident fund, Employee’s Pension Scheme and Employee’s State Insurance are recognised as defined contribution plan and charged as expenses during the period in which the employees perform the services.

Defined Benefit Plans:

Retirement benefits in the form of Gratuity is considered as defined benefit plan and determined on actuarial valuation using the Projected Unit Credit Method at the balance sheet date.

Interest Cost, Current Service Cost and Past Service Cost are recognised in profit and loss account immediately. Re-measurement gain and losses arising due to change in actuarial

assumptions and estimates are recognised directly in Other Comprehensive Income. Such re-measurements are not reclassified to the Statement of Profit and Loss in subsequent periods.

Other Long -term Emplouee Benefit:

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the present value of the defined benefit obligation at the balance sheet date. Annual leaves can either be availed or encashed subject to restriction on the maximum accumulation of leaves.

Termination Benefits:

Termination benefits are recognised as an expense in the period in which they are incurred.

The employee benefit with regards to both Leave encashment and Gratuity are unfunded.

(xxii) Exceptional Items

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the Company is treated as an exceptional item and the same is disclosed in the notes to accounts.

(xxiii) Taxes on Income Current Tax:

Tax on income for the current period is determined on the basis of estimated taxable income and computed in accordance with the provisions of the relevant tax laws, outcome of past assessments / appeals and legal opinion sought by the Company.

The Company has recognised provision for Income Tax for the year ended 31 March 2024 as per Section 115JB of the Income Tax Act, 1961 and is on the same basis as followed for the year ended 31 March 2023.

Deferred Tax:

Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at

the reporting date. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Minimum Alternate Tax (MAT) credit:

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay income tax under the normal provisions during the specified period, resulting in utilisetion of MAT credit.

In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of Profit & Loss and shown as MAT Credit Entitlement.

(xxiv) Segment Reporting

The Company is engaged predominantly into manufacturing of Coding & Marking Machines and consumables thereof. The Company has only One Reportable business segment identified by management namely Coding & Marking Machines and consumable thereof.

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Mar 31, 2023

B) Significant Accounting Policies

(i) Statement of compliance with Ind AS

The financial statements have been prepared in accordance with Indian Accounting Standard (Ind AS) notified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standard) Rules, 2015 and other relevant provisions of the Act.

(ii) Basis of Preparation and Presentation

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on accrual basis except for certain financial instruments which are measured at fair values. All assets and liabilities have been classified as current or non-current based on normal operating cycle of business activities of the Company, which is 12 months.

(iii) Use of estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the

reported amounts of revenues, expenses, assets and liabilities and accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

(iv) Property, Plant and Equipment

Prop ert y, pl a nt a nd equ i pm en t a re sta ted at historical cost less accumulated depreciation and impairment losses, if any. Freehold land is not depreciated. The cost of an item of property, plant and equipment comprises its cost of purchase and any attributable cost of bringing the asset to its working condition for its intended use.

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

(v) Capital work in progress

Property, plant and equipment under construction as well as Coding and Marking machines held exclusively for Rental prior to dispatch to Customer''s location are disclosed as capital work in progress.

(vi) Intangible Assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight line basis over their estimated useful lives. The estimated useful life and amortisation

method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

Estimated useful lives of the Intangible assets are as follows:

Computer Software 6 Years

Technical Know How 6 Years

There are no intangible assets having indefinite useful life.

An intangible asset is derecognised upon disposal or when no future economic benefits are expected to arise. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.

(vii) Leases

As a Lessee

The Company has adopted Ind AS 116, Leases effective for accounting periods beginning on or after 1 April 2019 and applied the modified retrospective method and recognised Lease Liability under the h ea d Ot h er Non -Cu rren t Li a b i l i t i es wi t h corresponding recognition of right-of-use assets under the head Property, plant and equipment and will not restate prior years.

The lease liability reflects the net present value of the remaining lease payments adjusted for payments made before the commencement date, lease incentives and other items related to the lease agreement, and the right-of-use asset corresponds to the lease liability.

Upon adoption of the new standard, a portion of the annual operating lease costs, which was previously fully recognised as a rental / lease expense, is recorded as interest expense. In addition, the portion of the lease payments which represents the reduction of the lease liability is recognised

in the cash flow statement as an outflow from financing activities, which was previously fully recognised as an outflow from operating activities.

Consequently, the Company has recognised an amount of ''128.62 Lakhs in depreciation expense and ''53.17 Lakhs in finance costs for the year ended 31 March 2023

As a lessor

Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured in accordance with lease agreement. Adoption of the new standard had no impact upon leases for which the Company is a lessor.

(viii) Depreciation and Amortisation

Property, plant and equipment

Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives.

The useful lives have been taken as specified by Schedule II to the Companies Act, 2013 except for coding and marking machines where useful lives have been determined as seven years based on technical evaluation done by the management and for Plant & Machineries for masks useful lives have been determined and duly certified by Chartered Engineer as three years.

Pro-rata depreciation is charged on property, plant and equipment from/up to the date on which such assets are ready to put to use/are deleted or discarded.

Intangible Assets

Intangible assets are amortised over their respective individual estimated useful life on straight line basis commencing from the date such asset is acquired for use in the Company.

Computer Software and Technical Know How are classified as intangible assets and amortised on straight line basis over a period of 6 years.

Pro-rata amortisation is charged on intangible assets from/up to the date on which such assets are acquired for use/are deleted or discarded.

(ix) Impairment of Assets

A tangible or intangible asset is treated as impaired when the carrying amount of the a sset exceed s i t s est i ma t ed recovera b l e value. Carrying amounts of tangible or intangible assets are reviewed at each balance sheet date to determine Indications of impairment, if any, of those assets. If any such Indication exists, the recoverable amount of the asset is estimated and an impairment loss equal to the excess of the carrying amount over its recoverable value is recognised as an impairment loss and the same is charged to profit and loss account. The impairment loss, if any, recognised in prior accounting period is reversed if there is a change in estimate of recoverable amount.

(x) Financial Instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provision of the instrument. All the financial assets and financial liabilities are initially measured at fair value, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.

(xi) Financial Assets

Classification and Measurement

All recognised financial assets are

subsequently measured either at

amortised cost or fair value [either through other comprehensive income (FVTOCI) or through profit or loss (FVTPL)] depending on the classification of the financial assets as follows:

(a) Financial Asset measured at Amortised Cost: The Company''s financial assets primarily consists of cash and cash equivalents, trade receivables, loans to employees, security deposits and other eligible current and non-current assets which are classified as financial assets carried at amortised cost.

(b) Financial Asset measured at Fair Value through Other Comprehensive Income (FVTOCI): On initial recognition, the Company has made irrevocable election in respect of purchases/ acquisition on/after 1 July 2019 on an instrument-by-instrument basis to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments. This election is not permitted if the equity investment is held for trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the ''Reserve for equity instruments through other comprehensive income''. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments as the same has been recognised in other comprehensive income.

(c) Financial assets at fair value through profit or loss (FVTPL) : Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading.

(d) Financial assets at Cost: Contribution to Venture fund in form of purchase of units with lock in period of more than 12 months is classified as Non-current Investment.

Derecognition of financial assets

A financial asset is derecognised when the contractual right to receive cash flows from the asset has expired; the Company has transferred the financial asset along with all the risks and rewards or has assumed an obligation to pay the received cash flows in full to a third party under a pass-through arrangement.

On derecognition of a financial asset in its entirety, the difference between the carrying amounts measured at the date of derecognition and the consideration received is recognised in profit or loss.

Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, trade receivables and other contractual rights to receive cash or other financial asset.

Expected Credit Loss (ECL) is the difference between all contractual cash flows that are due in accordance with the contract and the cash flows expected to receive (i.e., all cash shortfalls).

(xii) Financial Liabilities

Financial liabilities of the Company are contractual obligation to deliver cash or another financial asset to another entity. The Company''s financial liabilities include lo n g -ter m a nd sh or t -ter m b orrowi n g s, trade and other payables and other eligible current and non-current liabilities.

Classification Measurement and Derecognition

All recognised financial liabilities are subsequently measured at amortised cost. The Company de-recognise financial liabilities when, and only when, the Company''s obligations are discharged, cancelled, or have expired. Gain and losses are recognised in profit or loss when the liabilities are derecognised.

(xiii) Offsetting of financial instruments

Fi n a n ci a l Asset s a nd Fi n a n ci a l Li a b i li t i es are offset and the net amount is reported in the balance sheet only if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

(xiv) Valuation of Inventories

Inven t ori es a re va lu ed a t l ower of co st and net realisable value after providing for non moving material, obsolescence wherever necessary. The cost of inventories have been computed to include all cost of purchases, cost of conversion and other related costs incurred in bringing the inventories to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

Inventories are carried in the balance sheet as follows:

Inventory	Basis of Valuation
Raw materials, Packing materials, Components	At lower of cost, on weighted average basis and net realisable Value
Work-in Progress	At lower of cost of material on weighted average basis, plus appropriate production overheads and net realisable value
Finished goods -Manufacturing	At lower of cost of material on weighted average basis plus appropriate share of overhead and net realisable value
Finished goods -Trading	At lower of cost, on weighted average basis and net realisable value

(xv) Translation of Foreign Currency Transactions

The Company''s financial statements are presented in Indian Rupees (INR) which is Company''s functional and presentation currency. Transactions denominated in foreign currency are recognised at the rates of exc h a n ge preva i li n g a t t h e d a t e of t h e transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at year end date. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise. Income and Expenses of foreign branch have been translated at the average rate for the year.

(xvi) Revenue Recognition

The Company derives revenues primarily from sale of manufactured goods, traded goods, and related services.

Company has adopted Indian Accounting Standard 115 (Ind AS 115) - ''Revenue from contracts with customers'' using the modified retrospective approach i.e., cumulative catch-up transition method, applied to contracts that were not completed as on the transition date i.e., 1 April 2018. Accordingly, the comparative amounts of revenue and the corresponding contract assets / liabilities have not been retrospectively adjusted. The effect on adoption of Ind-AS 115 was insignificant.

Revenue is recognised on satisfaction of performance obligation upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services.

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, it does not adjust any of the transaction prices for the time value of money.

Revenue from sales of manufactured goods, traded goods and related services are recognised when significant risks and rewards of ownership of the goods are transferred to the customer, recovery of the consideration is probable, the amount of revenue can be measured reliably, and all performance obligation related to contract is satisfied. Sales are disclosed net of returns and claims.

Other operating revenue include duty drawback & Export Incentives which are recognised when the right to receive is established.

Other Income includes Interest Income, Dividend Income, Gain on Foreign Exchange Fluctuations etc. Interest Income accrued on a time basis by reference to the principal outstanding and the effective interest rate. Dividend Income accounted in the period in which the right to receive the same is established.

(xvii) Government Grants

Grants and subsidies from the Government are recognised when there is reasonable assurance that the grant/ subsidy will be received, and all the prescribed conditions will be complied with.

Grant or subsidy relating to an expense item is recognised as income in the statement of profit or loss over the periods necessary to match them on a systematic basis to the costs which is intended to compensate.

Grant or subsidy relating to an asset are included in non-current liabilities as deferred income and are credited to statement of profit or loss on a straight-line basis over the expected lives of the related assets and presented within other income.

(xviii) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for their intended use. All other borrowing costs are recognised as expense in the period in which they are incurred.

(xix) Dividends

Final dividend on shares is recorded as a liability on the date of approval by the shareholders at the annual general meeting and interim dividend are recorded as a liability on the date of declaration by the Company''s Board of Directors.

(xx) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss after tax for the period attributable to the equity shareholders by the weighted average number of Equity Shares outstanding during the year adjusted for bonus elements in equity shares issued during the year.

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

(xxi) Employee Benefits

Short-term Employee Benefits:

Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia and performance-linked rewards falling due wholly within twelve months of rendering the service are classified as short term employee benefits and are expensed in the period in which the employee renders the related service.

Long-term Employee Benefits:

Defined Contribution Plans:

Contributions to the employee''s provident fund, Employee''s Pension Scheme and Employee''s State Insurance are recognised as defined contribution plan and charged as expenses during the period in which the employees perform the services.

Defined Benefit Plans:

Retirement benefits in the form of Gratuity is considered as defined benefit plan and determined on actuarial valuation using the Projected Unit Credit Method at the balance sheet date.

Interest Cost, Current Service Cost and Past Service Cost are recognised in profit and loss account immediately. Remeasurement gain and losses arising due to change in actuarial assumptions and estimates are recognised directly in Other Comprehensive Income. Such remeasurements are not reclassified to the Statement of Profit and Loss in subsequent periods.

Other Long -term Employee Benefit:

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the present value of the defined benefit obligation at the balance sheet date. Annual leaves can either be availed or encashed subject to restriction on the maximum accumulation of leaves.

Termination Benefits:

Termination benefits are recognised as an expense in the period in which they are incurred.

The employee benefit with regards to bot h Leave en ca sh m en t a nd Gra t u i t y a re unfunded.

(xxii) Exceptional Items

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the Company is treated as an exceptional item and the same is disclosed in the notes to accounts.

(xxiii) Taxes on Income Current Tax:

Tax on income for the current period is determined on the basis of estimated

taxable income and computed in accordance with the provisions of the relevant tax laws, outcome of past assessments / appeals and legal opinion sought by the Company.

The Company has recognised provision for Income Tax for the year ended 31 March 2023 as per Section 115JB of the Income Tax Act, 1961 and is on the same basis as followed for the year ended 31 March 2022.

Deferred Tax:

Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Minimum Alternate Tax (MAT) credit:

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay income tax under the normal provisions during the specified period, resulting in utilisation of MAT credit.

In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of Profit & Loss and shown as MAT Credit Entitlement.

(xxiv) Segment Reporting

The Company is engaged predominantly into manufacturing of Coding & Marking Machines and consumables thereof. The Company has only One Reportable business segment identified by management namely Coding & Marking Machines and consumable thereof.

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Mar 31, 2018

1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

A) Significant Accounting Policies

(i) Statement of compliance with Ind AS

The financial statements have been prepared in accordance with Indian Accounting Standard (Ind AS) notified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standard) Rules, 2015 and other relevant provisions of the Act. These financial statements are the first financial statements under Ind AS. The financial statements upto year ended March 31, 2017 have been prepared in accordance with the requirements of the previous Indian GAAP, which includes Accounting Standards notified under Section 133 of the Companies Act, 2013, read with the Companies (Accounting Standards) Rules 2006, Rule 7 of the Companies (Accounts) Rules 2014, provisions of the Companies Act, 2013 to the extent notified. The date of transition to Ind AS is April 01, 2016. Refer separate note no. 47 “First Time Adoption of Ind AS” for information on how the Company adopted Ind AS.

(ii) Basis of preparation and presentation

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on accrual basis except for certain financial instruments which are measured at fair values. All assets and liabilities have been classified as current or non-current based on normal operating cycle of business activities of the Company, which is 12 months.

(iii) Use of estimates

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

(iv) Property, Plant and Equipment

Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses, if any. Freehold land is not depreciated. The cost of an item of property, plant and equipment comprises its cost of purchase and any attributable cost of bringing the asset to its working condition for its intended use.

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

(v) Capital Work-in-Progress

Property, Plant and Equipment under construction are disclosed as capital work in progress.

On transition to Ind AS, the Company has elected to continue with the carrying value of all its Capital-Work-in-Progress recognized as at April 1, 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the work-in-progress.

(vi) Intangible Assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

Estimated useful lives of the Intangible assets are as follows:

Computer Software 6 Years Technical Know How 6 Years

There are no intangible assets having indefinite useful life.

An intangible asset is derecognised upon disposal or when no future economic benefits are expected to arise. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.

(vii) Leases As a lessee

Lease of Property, plant and equipment are classified as finance leases where the Company has substantial risks and rewards of ownership. In any other case the same is classified as operating lease. Finance leases are capitalised at the lease’s inception period at the fair value of the leased property or, if lower, the present value of the minimum lease payments.

Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease unless the payments are structured in accordance with lease agreements.

As a lessor

Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured in accordance with lease agreement.

(viii) Depreciation and Amortization Property, plant and equipment

Depreciation is calculated using the straight line method to allocate their cost, net of their residual values, over their estimated useful lives.

The useful lives have been taken as specified by Schedule II to the Companies Act, 2013 except for coding and marking machines where useful lives have been determined as seven years based on technical evaluation done by the management.

Pro-rata depreciation is charged on property, plant and equipment from/up to the date on which such assets are ready to put to use/are deleted or discarded.

Intangible Assets

Intangible assets are amortised over their respective individual estimated useful life on straight line basis commencing from the date such asset is acquired for use in the Company.

Computer Software and Technical Know How are classified as intangible assets and amortised on straight line basis over a period of 6 years.

Pro-rata amortization is charged on intangible assets from/up to the date on which such assets are acquired for use/are deleted or discarded.

(ix) Impairment of Assets

A tangible or intangible asset is treated as impaired when the carrying amount of the asset exceeds its estimated recoverable value. Carrying amounts of tangible or intangible assets are reviewed at each balance sheet date to determine indications of impairment, if any, of those assets. If any such indication exists, the recoverable amount of the asset is estimated and an impairment loss equal to the excess of the carrying amount over its recoverable value is recognised as an impairment loss and the same is charged to profit and loss account. The impairment loss, if any, recognised in prior accounting period is reversed if there is a change in estimate of recoverable amount.

(x) Financial Instruments

Financial assets and financial liabilities are recognized when the Company becomes a partyto the contractual provision of the instrument. All the financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.

(xi) Financial Assets Classification and Measurement

All the financial assets are initially measured at fair value. Transaction costs that are directly attributable to the financial asset (other than financial assets covered at fair value through profit or loss) are added to or deducted from the fairvalue measured on initial recognition offinancial asset.

All recognised financial assets are subsequently measured either at amortised cost or fair value [either through other comprehensive income (FVTOCI) or through profit or loss (FVTPL)] depending on the classification of the financial assets as follows:

(a) Financial Asset measured at Amortised Cost : The Company’s financial assets primarily consists of cash and cash equivalents, trade receivables, loans to employees, security deposits and other eligible current and non-current assets which are classified as financial assets carried at amortised cost.

(b) Financial Asset measured at Fair Value through Other Comprehensive Income (FVTOCI): On initial recognition, the Company can make an irrevocable election (on an instrument-by-instrument basis) to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments. This election is not permitted if the equity investment is held for trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the ‘Reserve for equity instruments through other comprehensive income’. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments as the same has been recognised in other comprehensive income.

(c) Financial assets at fair value through profit or loss (FVTPL): Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading.

Derecognition of financial assets

A financial asset is derecognised when the contractual right to receive cash flows from the asset has expired; the company has transferred the financial asset along with all the risks and rewards or has assumed an obligation to pay the received cash flows in full to a third party under a pass-through arrangement.

On derecognition of a financial asset in its entirety, the difference between the carrying amount measured at the date ofderecognition and the consideration received is recognised in profit or loss.

Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, trade receivables and other contractual rights to receive cash or other financial asset.

Expected Credit Loss (ECL) is the difference between all contractual cash flows that are due in accordance with the contract and the cash flows expected to receive (i.e. all cash shortfalls).

(xii) Financial Liabilities

All the financial liabilities are initially recognised at fair value. Transaction costs that are directly attributable to the issue of financial liabilities (other than financial liabilities carried at fair value through profit or loss) are added to or deducted from the fairvalue measured on initial recognition offinancial liabilities.

Financial liabilities of the Company are contractual obligation to deliver cash or another financial asset to another entity. The Company’s financial liabilities include long-term and short-term borrowings, trade and other payables and other eligible current and non-current liabilities.

Classification Measurement and De-recognition

All recognized financial liabilities are subsequently measured at amortised cost. The Company de-recognise financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. Gain and losses are recognized in profit or loss when the liabilities are derecognized.

(xiii) Offsetting of financial instruments

Financial Assets and Financial Liabilities are offset and the net amount is reported in the balance sheet only if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

(xiv) Valuation of Inventories

Inventories are valued at lower of cost and net realisable value after providing for non moving material, obsolescence wherever necessary. The cost of inventories have been computed to include all cost of purchases, cost of conversion and other related costs incurred in bringing the inventories to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

Inventories are carried in the balance sheet as follows

(xv) Translation of Foreign Currency Transactions

The Company’s financial statements are presented in Indian Rupees (INR) which is Company’s functional and presentation currency. Transactions denominated in foreign currency are recognised at the rates of exchange prevailing at the date of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at year end date. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise. Income and Expenses offoreign branch have been translated at the average rate for the year.

(xvi) Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue from sale of manufactured and traded goods is recognised when significant risks and rewards of ownership of the goods are transferred to the customer, recovery of the consideration is probable and the amount of revenue can be measured reliably. Sales are disclosed net of returns and claims.

Revenue from services is recognised when the services are rendered in accordance with the specific terms of contract and when collectability of the resulting receivable is reasonably assured. Revenue from the maintenance contracts are recognised pro rata over the period of contract.

Other operating revenue includes sales tax remission, excise duty refund, GST Refund and other export incentives and duty drawback, and is recognized when the right to receive is established.

Other Income includes Interest Income, Dividend Income, gain on Foreign Exchange Fluctations etc. Interest Income accrued on a time basis by reference to the principal outstanding and the effective interest rate. Dividend Income accounted in the period in which the right to receive the same is established.

(xvii) Government Grants

Grants or subsidies from the Government are recognised when there is reasonable assurance that the grant or subsidy will be received and all the prescribed conditions will be complied with.

Grant or subsidy relating to an expense item is recognised as income in the statement of profit or loss over the periods necessary to match them on a systematic basis to the costs which is intended to compensate.

Grant or subsidy relating to an asset are included in non-current liabilities as deferred income and are credited to statement of profit or loss on a straight-line basis over the expected lives of the related assets and presented within other income.

(xviii) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for their intended use. All other borrowing costs are recognized as expense in the period in which they are incurred.

(xix) Dividends

Final dividend on shares are recorded as a liability on the date of approval by the shareholders at the annual general meeting and interim dividend are recorded as a liability on the date of declaration by the Company’s Board of Directors.

(xx) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss after tax for the period attributable to the equity shareholders by the weighted average number of Equity Shares outstanding during the year adjusted for bonus elements in equity shares issued during the year.

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

(xxi) Employee Benefits Short-term Employee Benefits:

Employee benefits such as salaries, wages, shortterm compensated absences, expected cost of bonus, ex-gratia and performance-linked rewards falling due wholly within twelve months of rendering the service are classified as short term employee benefits and are expensed in the period in which the employee renders the related service.

Long-term Employee Benefits:

Defined Contribution Plans:

Contributions to the employee’s provident fund, Employee’s Pension Scheme and Employee’s State Insurance are recognized as defined contribution plan and charged as expenses during the period in which the employees perform the services.

Defined Benefit Plans:

Retirement benefits in the form of Gratuity is considered as defined benefit plan and determined on actuarial valuation using the Projected Unit Credit Method at the balance sheet date.

Interest Cost, Current Service Cost and Past Service Cost are recognized in profit and loss account immediately. Re-measurement gain and losses arising due to change in actuarial assumptions and estimates are recognized directly in Other Comprehensive Income. Such re-measurements are not reclassified to the Statement of Profit and Loss in subsequent periods.

Other Long -term Employee Benefit:

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognized as a liability at the present value of the defined benefit obligation at the balance sheet date. Annual leaves can either be availed or encashed subject to restriction on the maximum accumulation of leaves.

Termination Benefits:

Termination benefits are recognized as an expense in the period in which they are incurred.

The employee benefitwith regards to both Leave encashment and Gratuity are unfunded.

(xxii) Exceptional Items

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the company is treated as an exceptional item and the same is disclosed in the notes to accounts.

(xxiii) Taxes on Income Current Tax:

Tax on income for the current period is determined on the basis of estimated taxable income and computed in accordance with the provisions of the relevant tax laws, outcome of past assessments / appeals and legal opinion sought by the Company.

Deferred Tax:

Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Minimum Alternate Tax (MAT) credit:

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay income tax under the normal provisions during the specified period, resulting in utilization of MAT credit.

In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of Profit & Loss and shown as MAT Credit Entitlement.

(xxiv) Segment Reporting

The Company is engaged predominantly into manufacturing of Coding & Marking Machines and consumables thereof. The Company has only One Reportable business segment identified by management namely Coding & Marking Machines and consumable thereof.

(xxv) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes to financial statements. Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is probable. Provisions, contingent liabilities are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed as the possibility of outflow of resources is remote.

(xxvi) Cash Flow Statements

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method, adjusting the net profit for the effects of changes during the period in inventories, operating receivables, payables, transactions of a non-cash nature such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and losses, and undistributed profits of associates and all other items for which the cash effects are investing or financing cash flows.

For the purpose of presentation in the statement of cash flow, cash and cash equivalents includes cash on hand and balance held with banks.

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Mar 31, 2015

A. Basis of Preparation of Financial Statements:

The Accounts have been prepared as a going concern under historical cost convention in accordance with the Generally Accepted Accounting Principles in India and the provisions of the Companies Act, 2013.

B. Fixed Assets:

All Fixed Assets are valued at their original cost which includes expenditure incurred in acquisition and construction / installation and other related expenses including duties and other non-refundable taxes or levies, any directly attributable cost of bringing the asset to its working condition. Capital work in progress is carried at cost comprising of direct cost and related incidental expenses.

C. Intangible Assets:

Intangible Assets are stated at cost of acquisition less amortization.

D. lnvestments:

Investments are stated at cost as the same are Long Term Investments. A provision for diminution is made to recognize a decline, other than temporary, in the value of Long Term Investments.

E. Inventories:

Inventories are valued on FIFO basis as under:

a) Raw material and components are valued at lower of Cost or Net Realizable Value.

b) Work in progress is valued at Cost.

c) Finished Goods are valued at lower of Cost or Net Realizable Value.

d) Stores, spares and consumables are valued at Cost.

e) Goods in transit are valued at Cost.

f) Cost of manufactured goods is ascertained at cost plus appropriate share of overheads.

The management has written off the cost of machines & spares given on rental basis on the basis of evaluation of its usage of the finished product to bring the same to its realizable market value.

F. Depreciation:

Depreciation on fixed assets has been provided on Straight Line basis at the rates prescribed in Schedule II of the Companies Act, 2013. Intangible Assets are amortized on straight line basis over the estimated economic useful life.

G. Impairment of Assets:

The Company on an annual basis makes an assessment of any indicator that may lead to "Impairment of Assets". If any such indications exist, the Company estimates the recoverable amount of the assets. If such recoverable amount is less than the carrying amount of the assets, than the carrying amount is reduced to its recoverable amount by treating the difference between them as impairment loss and the same is charged to Profit & Loss Account.

H. Revenue Recognition:

Sales are net of returns and claims. Income and expenditure are recognized on accrual basis. Revenue from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred. Revenue from maintenance contracts are recognized pro-rata over the period of the contract.

I. Foreign Currency Transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are restated at year end rates. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account.

J. Employee Benefits:

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered. Post employment and other long term employee benefits are recognized as an expense In the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss Account.

K. Borrowing Costs:

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the 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 profit and loss account.

L. Provisions, Contingent Liabilities and Contingent Assets:

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

M. Taxation:

The Current charge for income taxes is calculated in accordance with the relevant tax regulations, past assessments & legal opinion sought by the Company. Deferred-tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent that there is convincing evidence that the Company will pay income tax under the normal provisions during the specified period, resulting in utilization of MAT credit. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of Profit & Loss and shown as MAT Credit Entitlement.

N. Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

O. Earnings Per Share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earning considered in ascertaining the Company's earnings per share is the net profit for the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2014

A. Basis of Preparation of Financial Statements:

The Accounts have been prepared as a going concern under historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

B. Fixed Assets:

All Fixed Assets are valued at their original cost which includes expenditure incurred in acquisition and construction / installation and other related expenses including duties and other non-refundable taxes or levies, any directly attributable cost of bringing the asset to its working condition. Capital work in progress is carried at cost comprising of direct cost and related incidental expenses.

C. Intangible Assets:

Intangible Assets are stated at cost of acquisition less amortization.

D. lnvestments:

Investments are stated at cost as the same are Long Term Investments. A provision for diminution is made to recognize a decline, other than temporary, in the value of Long Term Investments.

E. Inventories:

Inventories are valued on FIFO basis as under:

a) Raw material and components are valued at lower of Cost or Net Realizable Value.

b) Work in progress is valued at Cost.

c) Finished Goods are valued at lower of Cost or Net Realizable Value.

d) Stores, spares and consumables are valued at Cost.

e) Goods in transit are valued at Cost.

f) Cost of manufactured goods is ascertained at cost plus appropriate share of overheads.

The management has written off the cost of machines & spares given on rental basis on the basis of evaluation of its usage of the finished product to bring the same to its realizable market value.

F. Depreciation:

Depreciation on fixed assets has been provided on Straight Line basis at the rates prescribed in Schedule XIV of the Companies Act, 1956. Intangible Assets are amortized on straight line basis over the estimated economic useful life.

G. Impairment of Assets:

The Company on an annual basis makes an assessment of any indicator that may lead to "Impairment of Assets". If any such indications exist, the Company estimates the recoverable amount of the assets. If such recoverable amount is less than the carrying amount of the assets, than the carrying amount is reduced to its recoverable amount by treating the difference between them as impairment loss and the same is charged to Profit & Loss Account.

H. Revenue Recognition:

Sales are net of returns and claims. Income and expenditure are recognized on accrual basis. Revenue from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred. Revenue from maintenance contracts are recognized pro-rata over the period of the contract.

I. Foreign Currency Transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are restated at year end rates. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account.

J. Employee Benefits:

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered. Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss Account.

K. Borrowing Costs:

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the 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 profit and loss account.

L. Provisions, Contingent Liabilities and Contingent Assets:

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

M. Taxation:

The Current charge for income taxes is calculated in accordance with the relevant tax regulations, past assessments & legal opinion sought by the Company. Deferred-tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent that there is convincing evidence that the Company will pay income tax under the normal provisions during the specified period, resulting in utilization of MAT credit. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of Profit & Loss and shown as MAT Credit Entitlement.

N. Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

O. Earnings Per Share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earning considered in ascertaining the Company''s earnings per share is the net profit for the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

Terms/Rights attached to Equity Shares:

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in the proportion to the number of equity shares held by the shareholders.

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Mar 31, 2013

A. Basis of Preparation of Financial Statements:

The Accounts have been prepared as a going concern under historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

B. Fixed Assets:

All Fixed Assets are valued at their original cost which includes expenditure incurred in acquisition and construction / installation and other related expenses including duties and other non-refundable taxes or levies, any directly attributable cost of bringing the asset to its working condition. Capital work in progress is carried at cost comprising of direct cost and related incidental expenses.

C. intangible Assets:

Intangible Assets are stated at cost of acquisition less amortization.

D. Investments:

Investments are stated at cost as the same are Long Term Investments. A provision for diminution is made to recognize a decline, other than temporary, in the value of Long Term Investments.

E. Inventories:

Inventories are valued on FIFO basis as under:

a) Raw material and components are valued at lower of Cost or Net Realizable Value.

b) Work in progress is valued at Cost.

c) Finished Goods are valued at lower of Cost or Net Realizable Value.

d) Stores, spares and consumables are valued at Cost.

e) Goods in transit are valued at Cost.

f) Cost of manufactured goods is ascertained at cost plus appropriate share of overheads.

The management has written off the cost of machines & spares given on rental basis on the basis of evaluation of its usage of the finished product to bring the same to its realizable market value.

F. Depreciation:

Depreciation on fixed assets has been provided on Straight Line basis at the rates prescribed in Schedule XIV of the Companies Act, 1956. Intangible Assets are amortized on straight line basis over the estimated economic useful life.

G. Impairment of Assets:

The Company on an annua! basis makes an assessment of any indicator that may lead to "Impairment of Assets". If any such indications exist, the Company estimates the recoverable amount of the assets. If such recoverable amount is less than the carrying amount of the assets, than the carrying amount is reduced to its recoverable amount by treating the difference between them as impairment loss and the same is charged to Profit & Loss Account.

H. Revenue Recognition:

Sales are net of returns and claims. Income and expenditure are recognized on accrual basis. Revenue from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred. Revenue from maintenance contracts are recognized pro-rata over the period of the contract.

I. Foreign Currency Transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are restated at year end rates. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account.

J. Employee Benefits:

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered. Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss Account.

K. Borrowing Costs:

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the 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 profit and loss account.

L. Provisions, Contingent Liabilities and Contingent Assets:

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

M. Taxation:

The Current charge for income taxes is calculated in accordance with the relevant tax regulations, past assessments & legal opinion sought by the Company. Deferred-tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent that there is convincing evidence that the Company will pay income tax under the normal provisions during he specified period, resulting in utilization of MAT credit. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of Profit & Loss and shown as MAT Credit Entitlement.

N. Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized.

O. Earnings Per Share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earning considered in ascertaining the Company''s earnings per share is the net profit for the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2012

A. Basis of Preparation of Financial Statements

The Accounts have been prepared as a going concern under historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

B. Fixed Assets:

All fixed assets are valued at their original cost which includes expenditure incurred in acquisition and construction I installation and other related expenses less accumulated depreciation. Capital work in progress is carried at cost comprising of direct cost and related incidental expenses.

C. Intangible Assets:

Intangible Assets are stated at cost of acquisition less amortization.

D. Investments:

Investments are stated at cost as the same are Long Term Investments.

E. Inventories:

Inventories are valued on FIFO basis as under:

a) Raw material and components are valued at lower of Cost or Net Realizable Value.

b) Finished Goods are valued at lower of Cost or Net Realizable Value.

c) Stores, spares and consumables are valued at Cost.

d) Goods in transit are valued at Cost.

e) Cost of manufactured goods is ascertained at cost plus appropriate share of overheads.

The management has written off the cost of machines & spares given on rental basis on the basis of evaluation of its usage of the finished product to bring the same to its realizable market value.

F. Depreciation:

Depreciation on fixed assets has been provided on Straight Line basis at the rates prescribed in Schedule XIV of the Companies Act, 1956. Intangible Assets are amortized on straight line basis over the estimated economic useful life.

G. Impairment of Assets:

The Company on an annual basis makes an assessment of any indicator that may lead to "Impairment of Assets". If any such indications exist, the Company estimates the recoverable amount of the assets. If such recoverable amount is less than the carrying amount of the assets, than the carrying amount is reduced to its recoverable amount by treating the difference between them as impairment loss and the same is charged to Profit & Loss Account.

H. Revenue Recognition:

Sales are net of returns and claims. Income and expenditure are recognized on accrual basis. Revenue from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred. Revenue from maintenance contracts are recognized pro- rata over the period of the contract.

I. Foreign Currency Transactions :

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the yearend are restated at year end rates. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

J. Employee Benefits:

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered. Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss Account.

K. Borrowing Costs:

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the 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 profit and loss account.

L. Provisions, Contingent Liabilities and Contingent Assets:

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

M. Taxation:

The Current charge for income taxes is calculated in accordance with the relevant tax regulations, past assessments & legal opinion sought by the Company. Deferred-tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

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Mar 31, 2011

The Accounts have been prepared as a going concern under historical cost convention.

1. Fixed Assets:

All fixed assets are valued at their original cost which includes expenditure incurred in acquisition and construction / installation and other related expenses less accumulated depreciation.

a) The Company on an annual basis makes an assessment of any indicator that may lead to "Impairment of Assets”. If any such indications exist, the Company estimates the recoverable amount of the assets. If such recoverable amount is less than the carrying amount of the assets, than the carrying amount is reduced to its recoverable amount by treating the difference between them as impairment loss and the same is charged to Profit & Loss Account.

b) Capital work in progress is carried at cost, comprising of direct cost and related incidental expenses.

2. Intangible Assets:

Intangible Assets are stated at cost of acquisition less amortization.

3. Investments:

Investments are stated at cost as the same are of long term in nature.

4. Inventories:

Inventories are valued on FIFO basis as under:

I) a) Raw material and components are valued at lower of Cost or Net Realisable Value.

b) Finished Goods are valued at lower of Cost or Net Realisable Value.

c) Stores, spares and consumables are valued at Cost.

d) Goods in transit are valued at Cost.

e) Cost of manufactured goods is ascertained at cost plus appropriate share of overheads.

II) The management has written off the cost of machines & spares given on rental basis on the basis of evaluation of its usage of the finished product to bring the same to its realizable market value.

5. Depreciation:

Depreciation on fixed assets has been provided on Straight Line basis at the rates prescribed in Schedule XIV of the Companies Act, 1956.

Intangible Assets are amortized on straight line basis over the estimated economic useful life.

6. a) Sales:

Sales are net of returns and claims.

b) Recognition of Income and Expenditure:

Income and expenditure are recognised on accrual basis.

Revenue from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred.

Revenue from maintenance contracts are recognised pro-rata over the period of the contract.

7. Borrowing Costs:

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the 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 profit and loss account.

8. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in Notes to Accounts. Contingent assets are neither recognised nor disclosed in financial statements.

9. Taxation:

The Current charge for income taxes is calculated in accordance with the relevant tax regulations, past assessments & legal opinion sought by the Company. Deferred-tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

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Mar 31, 2010

The Accounts have been prepared as a going concern under historical cost convention.

1) Fixed Assets

All fixed assets are valued at their original cost which includes expenditure incurred in acquisition and construction / installation and other related expenses less accumulated depreciation.

a) The Company on an annual basis makes an assessment of any indicator that may lead to "Impairment of Assets". Ifanysuchindicationsexists.theCompanyestimatestherecoverable amount of the assets. If such recoverable amount is less than the carrying amount of the assets, than the carrying amount is reduced to its recoverable amount by treating the difference between them as impairment loss and the same is charged to Profit & Loss Account.

b) Capital work in progress is carried at cost, comprising of direct cost and related incidental expenses.

2) IntangibleAssets

Intangible Assets are stated at cost of acquisition less amortisation.

3) Investments

I nvestments are stated at cost as the same are of long term in nature.

4) Inventories

Inventories are valued on FIFO basis as under:

a) Raw material and components are valued at lower of Cost or Net Realisable Value.

b) Finished Goods are valued at lower of Cost or Net Realisable Value.

c) Stores, spares and consumables are valued at Cost.

d) Goods in transit are valued at Cost.

e) Cost of manufactured goods is ascertained at cost plus appropriate share of overheads.

5) Depreciation

Depreciation on fixed assests has been provided on Straight Line basis at the rates prescribed in Schedule XIV of the Companies Act, 1956.

IntangibleAssets are amortised on straight line basis over the estimated economic useful life.

6) a) Sales: Sales are net of returns and claims.

b) Recognition of Income and Expenditure:

Income and expenditure are generally recognised on accrual basis except for Leave Encashment which is recognised on cash basis which is contrary to "Accounting Standard 15" issued by the Institute of Chartered Accountants of India.

Revenue from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred.

Revenue from maintenance contracts are recognised pro-rata over the period of the contract.

7) Borrowing Costs

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the 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 profit and loss account.

8) Foreign Exchange Transactions

Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction. Monetary a items denominated in foreign currencies (such as cash, receivables, payables etc) outstanding at the year end are translated at exchange rate applicable on balance sheet date.

Any gains or losses arising due to exchange differences arising on translation or settlement are accounted for in the Profit and Loss Account.

9) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in Notes to Accounts. Contingent assets are neither recognised nor disclosed in financial statements.

10) Taxation

The Current charge for income taxes is calculated in accordance with the relevant tax regulations, past assessments & legal opinion sought by the Company. Deferred-tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.