Accounting Policies of Deccan Bearings Ltd. Company

Mar 31, 2025

2.1 BASIS OF PREPARATION:

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

The financial statements of the Company for the year ended 31^st March, 2025 were approved
for issue in accordance with the resolution of the Board of Directors on 17^th May, 2025.

The statements have been prepared under the historical cost convention.

2.2 CURRENT AND NON CURRENT CLASSIFICATION :

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

The operating cycle is the time between the acquisition of assets for processing and their
realisation in cash and cash equivalents. The Company has identified twelve months as its
operating cycle.

2.3 SIGNIFICANT ACCOUNTING JUGEMENTS, ESTIMATES AND ASSUMPTIONS :

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

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

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

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

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

b. Determination of the estimated useful lives

Useful lives of all PPE are based on the estimation done by the Management which is in line
with the useful lives as prescribed in part ''C'' of Schedule II to the Act.

c. Current and deferred taxes

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

Deferred tax assets and liabilities not accounted in the financial statement due to the virtual
uncertainty of profit during the year.

2.4 PROPERTY, PLANT AND EQUPMET:

a. All items of property, plant and equipments are measured at cost less accumulated
depreciation and any accumulated impairment losses if any.

b. DEPRECIATION / AMORTIZATION:

Depreciation on Property, Plant and Equipment is provided on straight line method.
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the
Companies Act, 2013.

c. IMPAIRMENT:

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

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

2.5 INVENTORIES:

There was no stock of Inventories during the year.

2.6 FOREIGN CURRENCEY TRANSACTIONS: NA
Initial Recognition: Not applicable

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

Conversion: Not applicable

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

Exchange Difference: Not applicable

Realised gains and losses on Foreign exchange transactions pertaining to current assets and
current liabilities are recognized in the Profitand Loss Account.

2.7 CASH AND CASH EQUIVALENTS:

Cash and cash equivalent include cheques in hand, cash at bank and deposits with banks
having original maturity of not more than three months. Bank deposits with original
maturity period of more than three months but less than twelve months are classified as
other bank balances.

2.8 FINANCIAL INSTRUMENTS:

A financial instrument is any contract that gives rise to financial assets of one entity and
financial liabilities or equity instrument of another entity.

Financial Assets

Initial recognition and measurement

All financial assets are recognized initially at cost.

Subsequent measurement

All recognized financial assets are subsequently measured in their entity either amortised
cost or fair value depending on the classification of the financial assets.

Financial Liabilities

Initial recognition and measurement

All financial liabilities are recognized initially at a fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables and borrowings.

Subsequent measurement

Financial liabilities at fair value through profit and loss.

Gains or losses on liabilities held for trading are recognized in the statement of profitand
loss account.

Derecognition of Financial Assets and Liabilities

The Company derecognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire or when the Company transfers the contractual rights to
receive the cash flows of the financial asset in which substantially all the risks and rewards
of ownership of the financial asset and does not retain control of the financial asset.

2.9 REVENUE RECOGNITION:

Revenue is recognized to the extent it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured. Revenue is measured at the fair value
of the consideration received or receivable and represents receivable for goods and services
provided in the normal course of business, net of discount and taxes:

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

ii. 1 nterest income is accounted for on a time proportion basis taking into account the amount
outstanding and the rate applicable.

2.10 EMPLOYEMENT DENEFITS:

i] Gratuity Liability a defined benefit scheme: Employees are not eligible for gratuity
benefits. Hence no provision of gratuity is made in the accounts.

ii] Provident Fund: Not applicable.

Provident Fund contributions are made to Government Provident Fund Authority are
charged to revenue.

2.11 INCOME AND DEFERRED TAXES:

TAXATION:

I] CURRENT TAX:

Provision for Current income tax liability is made on estimated taxable income under
Income Tax Act, 1961 after considering permissible tax exemption, deductions and
disallowances.

II] DEFFERED TAX: Not applicable.

Deferred tax resulting from timing difference between book and tax profits is accounted for
under the liability method, at the current rate of tax to the extent that the timing difference
are expected to crystallize.

---

Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES:

2.1 BASIS OF PREPARATION:

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

The financial statements of the Company for the year ended 31^st March, 2024 were approved
for issue in accordance with the resolution of the Board of Directors on 15^th May, 2024.

The statements have been prepared under the historical cost convention.

2.2 CURRENT AND NON CURRENT CLASSIFICATION :

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

Deferred tax assets and liabilities not accounted in the financial statement due to the virtual
uncertainty of profit during the year.

2.3 SIGNIFICANT ACCOUNTING JUGEMENTS, ESTIMATES AND ASSUMTIONS :

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

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

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

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

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

NOTES TO IND AS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2024

b. Determination of the estimated useful lives

Useful lives of all PPE are based on the estimation done by the Management which is in line
with the useful lives as prescribed in part ''C'' of Schedule II to the Act.

c. Current and deferred taxes

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

The operating cycle is the time between the acquisition of assets for processing and their
realisation in cash and cash equivalents. The Company has identified twelve months as its
operating cycle.

2.4 PROPERTY, PLANT AND EQUPMET:

a. All items of property, plant and equipments are measured at cost less accumulated
depreciation and any accumulated impairment losses if any.

b. DEPRECIATION / AMORTIZATION:

Depreciation on Property, Plant and Equipment is provided on straight line method.
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the
Companies Act, 2013.

c. IMPAIRMENT:

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

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

2.5 INVENTORIES:

There was no stock of Inventories during the year.

2.6 FOREIGN CURRENCEY TRANSACTIONS: NA
Initial Recognition: Not applicable

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

Conversion: Not applicable

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

NOTES TO IND AS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2024
Exchange Difference: Not applicable

Realised gains and losses on Foreign exchange transactions pertaining to current assets and
current liabilities are recognized in the Profit and Loss Account.

2.7 CASH AND CASH EQUIVALENTS:

Cash and cash equivalent include cheques in hand, cash at bank and deposits with banks
having original maturity of not more than three months. Bank deposits with original
maturity period of more than three months but less than twelve months are classified as
other bank balances.

2.8 FINANCIAL INSTRUMENTS:

A financial instrument is any contract that gives rise to financial assets of one entity and
financial liabilities or equity instrument of another entity.

Financial Assets

Initial recognition and measurement

All financial assets are recognized initially at cost.

Subsequent measurement

All recognized financial assets are subsequently measured in their entity either amortised
cost or fair value depending on the classification of the financial assets.

Financial Liabilities

Initial recognition and measurement

All financial liabilities are recognized initially at a fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables and borrowings.

Subsequent measurement

Financial liabilities at fair value through profit and loss.

Gains or losses on liabilities held for trading are recognized in the statement of profit and
loss account.

Derecognition of Financial Assets and Liabilities

The Company derecognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire or when the Company transfers the contractual rights to
receive the cash flows of the financial asset in which substantially all the risks and rewards
of ownership of the financial asset and does not retain control of the financial asset.

2.9 REVENUE RECOGNITION:

Revenue is recognized to the extent it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured. Revenue is measured at the fair value
of the consideration received or receivable and represents receivable for goods and services
provided in the normal course of business, net of discount and taxes:

NOTES TO IND AS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2024

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

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

2.10 EMPLOYEMENT BENEFITS:

i] Gratuity Liability a defined benefit scheme: Employees are not eligible for gratuity
benefits. Hence no provision of gratuity is made in the accounts.

ii] Provident Fund: Not applicable.

Provident Fund contributions are made to Government Provident Fund Authority are
charged to revenue.

2.11 INCOME AND DEFERRED TAXES:

TAXATION:

I] CURRENT TAX : Not applicable.

Provision for Current income tax liability is made on estimated taxable income under
Income Tax Act, 1961 after considering permissible tax exemption, deductions and
disallowances.

II] DEFFERED TAX : Not applicable.

Deferred tax resulting from timing difference between book and tax profits is accounted for
under the liability method, at the current rate of tax to the extent that the timing difference
are expected to crystallize.

---

Mar 31, 2015

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Accounts have been prepared on a going concern basis under historical cost convention on Accrual basis and in accordance with the generally accepted accounting principles in India and the provisions of Companies Act 2013.

(b) USE OF ESTIMATE:

The preparation of financial statement in Conformity with the generally accepted accounting principles requires management to make estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues during the reporting period the difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

(c) REVENUE RECOGNITION:

Revenues are recognized when it is earned and no significant uncertainty exists as to as ultimate collection.

(d) FIXED ASSETS:

Fixed Assets are stated at Cost except for Land, Factory Building, Plant & Machinery, Staff quarters which were revalued as on 31st March, 1996, and Plant & Machinery again revalued as on 31.03.2003, are stated at the value as determined by the approved valuers.

(e) DEPRECIATION:

Depreciation on Fixed Assets is provided on straight line method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

(f) INVESTMENTS:

Investments are stated at cost.

(g) INVENTORIES:

Inventories are valued as under, after providing for obsolescence.

i] Raw-materials at cost

ii] Finished goods and Work-in-Progress at cost of Direct materials, Direct wages and appropriate overheads.

iii] Traded Goods at lower of cost or realisable value.

(h) RETIREMENT BENEFITS:

i] Gratuity Liability a defined benefit scheme: Except Mumbai Office, All employees are covered under Employee Gratuity Scheme. The Company contributes to the Fund on tire basis of the year-end liability actuarially determined in pursuance of the Scheme.

The Company has not made full provision in tire Books of Accounts, since no actuarial valuation in respect of Mumbai office employees are done by tire Company at tire end of tire Financial Year.

ii] Provident Fund: Provident Fund contributions are made to Government Provident Fund Authority are charged to revenue.

iii] Employees Pension Scheme: Contribution to employees Pension Scheme 1995 is made to Government Provident Fund Authority are charged to revenue.

(i) FOREIGN CURRENCY TRANSACTION:

Realised gains and losses on Foreign exchange transactions pertaining to current assets and current liabilities are recognized in tire Profit and Loss Account.

(j) TAXATION:

I] CURRENT TAX

Provision for Current income tax liability is made on estimated taxable income under Income Tax Act, 1961 after considering permissible tax exemption, deductions and disallowances.

II] DEFERRED TAX

Deferred tax resulting from timing difference between book and tax profits is accounted for under tire liability method, at the current rate of tax to the extent that tire timing difference are expected to crystallize.

(k) IMPAIRMENT OF ASSETS:

At each Balance Sheet date, tire Company assesses whether there is any indication that an asset may be impaired. If any such indication exist, The Company estimates tire recoverable amount. If carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit & Loss Account to tire extent the carrying amount exceeds recoverable amount.

(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 as outflow of resources. Contingent Liabilities are not recognized but are disclosed in tire notes.

Contingent Assets are neither recognized nor disclosed in the financial statements.

(m) DEFERRED TAXATION:

The Company has recognized Deferred Tax Liabilities using current tax rate. Deferred Tax Assets/ Liabilities are reviewed at Balance Sheet date for tire appropriateness of their respective carrying value based on tire developments/ information available.

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Mar 31, 2014

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

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

(b) USE OF ESTIMATE:

The preparation of financial statement in Conformity with the generally accepted accounting principles requires management to make estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues during the reporting period the difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

(c) REVENUE RECOGNITION:

Revenues are recognized when it is earned and no significant uncertainty exists as to as ultimate collection.

(d) FIXED ASSETS:

Fixed Assets are stated at Cost except for Land, Factory Building, Plant & Machinery, Staff quarters which were revalued as on 31st March, 1996, and Plant & Machinery again revalued as on 31.03.2003, are stated at the value as determined by the approved valuers.

(e) DEPRECIATION:

Depreciation on Fixed Assets is provided on straight line basis at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on revalued assets is calculated on straight line basis on the values given by the approved valuers. The difference between depreciation on assets based on revaluation and that on original cost is transferred from Profit and Loss Account to Revaluation Reserves.

(f) INVESTMENTS:

Investments are stated at cost.

(g) INVENTORIES:

Inventories are valued as under, after providing for obsolescence.

i] Raw-materials at cost

ii] Finished goods and Work-in-Progress at cost of Direct materials, Direct wages and appropriate overheads.

iii] Traded Goods at lower of cost or realisable value.

(h) RETIREMENT BEFEFITS:

i] Gratuity Liability a defined benefit scheme: Except Mumbai Office, All employees are covered under Employee Gratuity Scheme. The Company contributes to the Fund on the basis of the year-end liability actuarially determined in pursuance of the Scheme.

The Company has not made full provision in the Books of Accounts, since no actuarial valuation in respect of Mumbai office employees are done by the Company at the end of the Financial Year.

ii] Provident Fund: Provident Fund contributions are made to Government Provident Fund Authority are charged to revenue.

iii] Employees Pension Scheme: Contribution to employees Pension Scheme 1995 is made to Government Provident Fund Authority are charged to revenue.

(i) FOREIGN CURRENCY TRANSACTION:

Realised gains and losses on Foreign exchange transactions pertaining to current assets and current liabilities are recognized in the Profit and Loss Account.

(j) TAXATION :

I] CURRENT TAX

Provision for Current income tax liability is made on estimated taxable income under Income Tax Act, 1961 after considering permissible tax exemption, deductions and disallowances.

II] DEFFERED TAX

Deferred tax resulting from timing difference between book and tax profits is accounted for under the liability method, at the current rate of tax to the extent that the timing difference are expected to crystallize.

(k) IMPAIRMENT OF ASSETS:

At each Balance Sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exist, The Company estimates the recoverable amount. If carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit & Loss Account to the extent the carrying amount exceeds recoverable amount.

(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 as outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

(m) DEFERRED TAXTATION:

The Company has recognized Deferred Tax Liabilities using current tax rate. Deferred Tax Assets/ Liabilities are reviewed at Balance Sheet date for the appropriateness of their respective carrying value based on the developments/ information available.

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Mar 31, 2013

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

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

(b) USE OF ESTIMATE:

The preparation of financial statement in Conformity with the generally accepted accounting principles requires management to make estimates ;and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues during the reporting period the difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

(c) REVENUE RECOGNITION:

Revenues are recognized when it is earned and no significant uncertainty exists as to as ultimate collection.

(d) FIXED ASSETS:

Fixed Assets; are stated at Cost except for Land, Factory Building, Plant & Machinery,

Staff quarters which were revalued as on 31st March, 1996, and Plant & Machinery again revalued as on 31.03.2003, are stated at the value as determined by the approved values.

(e) DEPRECIATION:

Depreciation ;on Fixed Assets is provided on straight line basis at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on revalued assets is calculated on straight line basis on the values given by the approved valuers. The difference between depreciation on assets based on revaluation and that on original cost is transferred from Profit and Loss Account to Revaluation Reserves.

(f) INVESTMENTS:

Investments are stated at cost. .

(g) INVENTORIES:

Inventories are valued as under, after providing for obsolescence.

i] Raw-materials at cost

ii Finished goods and Work-in-Progress at cost of Direct materials, Direct ''wages and appropriate overheads.

iii] Traded Goods at lower of cost or realizable value.

(h) RETIREMENT BEFEFITS:

i]Gratuity Liability a defined benefit scheme: Except Mumbai Office, All employees are covered under Employee Gratuity Scheme. The Company contributes to the Fund on the basis of the year-end liability actuarially determined in pursuance of the Scheme.

The Company has not made full provision in the Books of Accounts, since no actuarial valuation in respect of Mumbai office employees are done by the Company at the end of the Financial Year.

ii]Provident Fund: Provident Fund contributions are made to Government Provident Fund Authority are charged to revenue.

Iii Employees Pension Scheme: Contribution to employees Pension Scheme 1995 is made to Government Provident Fund Authority are charged to revenue.

(i) FOREIGN CURRENCY TRANSACTION:

Realized gains and losses on Foreign exchange transactions pertaining to current assets .

and current liabilities are recognized in the Profit and Loss Account.

0) TAXATION:

I] CURRENT TAX Provision for Current income tax liability is made on estimated taxable income under Income Tax Act, 1961 after considering permissible tax exemption, deductions and disallowances.

II] DEFFEREDTAX

Deferred tax resulting from timing difference between book and tax profits is accounted for under the liability method, at the current rate of tax to the extent that the timing difference are expected to crystallize.

(k) IMPAIRMENT OF ASSETS: *

At each Balance Sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exist; The Company estimates the recoverable amount. If carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit & Loss Account to the extent the carrying amount exceeds recoverable amount.

(I) 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 as outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

(m) DEFERRED TAXTATION:

The Company has recognized Deferred Tax Liabilities using current tax rate.

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Mar 31, 2010

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

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

(b) USE OF ESTIMATE:

The preparation of financial statement in Conformity with the generally accepted accounting principles requires management to make estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues during the reporting period the difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

(c) REVENUE RECOGNITION:

Revenues are recognized when it is earned and no significant uncertainty exists as to as ultimate collection.

(d) FIXED ASSETS:

Fixed Assets are stated at Cost except for Land, Factory Building, Plant & Machinery, Staff quarters which were revalued as on 31st March, 1996, and Plant & Machinery again revalued as on 31.03.2003, are stated at the value as determined by the approved valuers.

(e) DEPRECIATION:

Depreciation on Fixed Assets is provided on straight line basis at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on revalued assets is calculated on straight line basis on the values given by the approved valuers. The difference between depreciation on assets based on revaluation and that on original cost is transferred from Profit and Loss Account to Revaluation Reserves.

(f) INVESTMENTS:

Investments are stated at cost.

(g) INVENTORIES:

Inventories are valued as under, after providing for obsolescence.

i] Raw-materials at cost

ii] Finished goods and Work-in-Progress at cost of Direct materials, Direct wages and appropriate overheads.

iii] Traded Goods at lower of cost or realisable value.

(h) RETIREMENT BENEFITS:

i> Gratuity Liability a defined benefit scheme: Except Mumbai Office, All employees are covered under Employee Gratuity Scheme. The Company contributes to the Fund on the basis of the year-end liability actuarially determined in pursuance of the Scheme.

The Company has not made full provision in the Books of Accounts, since no actuarial valuation in respect of Mumbai office employees are done by the Company at the end of the Financial Year.

ii] Provident Fund: Provident Fund contributions are made to Government Provident Fund Authority are charged to revenue.

iii] Employees Pension Scheme: Contribution to employees Pension Scheme 1995 is made to Government Provident Fund Authority are charged to revenue.

(i) FOREIGN CURRENCY TRANSACTION:

Realised gains and losses on Foreign exchange transactions pertaining to current assets and current liabilities are recognized in the Profit and Loss Account.

0) TAXATION:

I] CURRENT TAX

Provision for Current income tax liability is made on estimated taxable income under Income Tax Act, 1961 after considering permissible tax exemption, deductions and disallowances.

II] DEFFERED TAX

Deferred tax resulting from timing difference between book and tax profits is accounted for under the liability method, at the current rate of tax to the extent that the timing difference are expected to crystallize.

(k) IMPAIRMENT OF ASSETS:

At each Balance Sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exist, The Company estimates the recoverable amount. If carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit & Loss Account to the extent the carrying amount exceeds recoverable amount.

(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 as outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

(m) The Company has not received any intimation from suppliers regarding their status under The Micro, Small and Medium Enterprises Development Act 2006, and hence the Disclosure, if any relating to the amount unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.