Accounting Policies of Eastern Treads Ltd. Company

Mar 31, 2024

1 Summary of significant accounting policies
1.1A Basis of preparation

These financial statements are the separate financial statements of the Company (also called standalone financial
statements) prepared in accordance with Indian Accounting Standards (''Ind AS'') notified under section 133 of
the Companies Act 2013 (the ''Act''), read together with the Companies (Indian Accounting Standards) Rules,
2015 (as amended).

These financial statements have been prepared under the historical cost convention, on the accrual basis of
accounting, except for certain financial assets and financial liabilities that are measured at fair values at the end
of each reporting period, as explained in the accounting policies below

The accounting policies have been applied consistently over all the periods presented in these financial statements
except as mentioned below:

Previous year figures have been re-grouped/reclassified where necessary, to confirm with the current year
presentation for the purpose of comparability.

1.1B Application of new accounting pronouncements

The Company has applied the following Ind AS pronouncements pursuant to issuance of the Companies (Indian
Accounting Standards) Amendment Rules, 2018. The effect is described below :-i. Effective 1 April 2019, the
Company has adopted Ind AS 116 “ Leases “, as notified by the Ministry of Corporate Affairs (MCA) in the
Companies (Indian Accounting Standards) Amendment Rules, 2019 using modified retrospective method. Ind
AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases and
requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for
finance leases under Ind AS 17. The application of Ind AS 116 did not have material impact on the Financial
State ments.ii. The Company has adopted Ind AS 12 “Income Taxes” as per Appendix C to Ind AS 12. The
amendment to Ind AS 12 requires the entities to consider recognition and measurement requirements when
there is uncertainty over income tax treatments. The application of the amended provision to Ind AS 12 did not
have material impact on the Financial Statements.iii. The Company has adopted Ind AS 23 “ Borrowing Costs” as
amended, which requires the entity to calculate and apply the capitalisation rate on general borrowings, if any
specific borrowing remains outstanding after the related asset is ready for its intended use or sale and that
borrowing becomes part of the funds that entity borrows generally. This amendment is also did not have a
material impact on the Financial Statements.

1.2 Use of estimates and judgements

The preparation of the Company''s financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the related
disclosures.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised if the revision affects only that period, or in the
period of the revision and future period, if the revision affects current and future period.

Significant management judgements

The following are significant management judgements in applying the accounting policies of the Company that
have the most significant effect on the financial statements.

Classification of leases

The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement
as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to,
transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty
of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of
minimum lease payments to fair value of leased asset and extent of specialised nature of the leased asset.

Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability that
future taxable income will be available against which the deductible temporary differences and tax loss carry
forward can be utilised. In addition, significant judgement is required in assessing the impact of any legal or
economic limits or uncertainties in various tax jurisdictions

Evaluation of indicators for impairment of assets

The evaluation of applicability of indicators of impairment of assets requires assessment of several external and
internal factors which could result in deterioration of recoverable amount of the assets. In assessing impairment,
management estimates the recoverable amount of each asset or cash generating units based on expected
future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions
about future operating results and the determination of a suitable discount rate.

Recoverability of advances / receivables

At each balance sheet date, based on historical default rates observed over expected life, the management
assesses the expected credit loss on outstanding receivables and advances.

Useful lives of depreciable / amortisable assets

Management reviews its estimate of the useful lives of depreciable / amortisable assets at each reporting date,
based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic
obsolescence that may change the utility of certain items of property, plant and equipment.

Defined benefit obligation (DBO)

Management''s estimate of the DBO is based on a number of critical underlying assumptions such as standard
rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation
in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

Fair value measurements

Management applies valuation techniques to determine the fair value of financial instruments (where active
market quotes are not available) and non-financial assets. This involves developing estimates and assumptions
consistent with how market participants would price the instrument. Management bases its assumptions on
observable data as far as possible but this is not always available. In that case management uses the best
information available. Estimated fair values may vary from the actual prices that would be achieved in an arm''s
length transaction at the reporting date.

1.3 Revenue recognition

Revenue from contracts with customers is recognised on transfer of control of promised goods or services to a
customer at an amount that reflect the consideration to which the Company is expected to be entitled to in
exchange for those goods or services. Revenue towards satisfaction of a Performance obligation is measured at
the amount of transaction price (net of variable consideration) allocated to that Performance obligation.

a) Sale of goods

Revenue from sale of goods is recognised when the control on the goods have been transferred to the customers.
The Performance obligation in case of sale of goods is satisfied at a point of time, i.e., when the material is
shipped to the customer or on delivery to the customer, as may be specified in the contract.

b) Rendering of Services

Revenue from job work and retreading services are recognised at the completion of the agreed services.

c) Interest and other income

Interest income is reported on an accrual basis using the effective interest method and is included under the
head “other income” in the Statement of Profit and Loss.

d) Lease IncomeLease income arising from operating leases is accounted for over the lease terms and is
included in other operating revenue in the statement of profit or loss.

e) Export IncentivesIncome from export incentives are recognised when the right to receive credit as per the
terms of the Scheme is established and when there is certainty of realisation.

1.4 Leases

The company has applied Ind AS 116 using the modified retrospective approach and therefore the comparative
information has not been restated and continues to be reported under Ind AS 17.

i. /4s a lesseeThe company recognises a right-of-use asset and a lease liability at the lease commencement
date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred
and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the
site on which it is located, less any lease incentives received.

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

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

Lease payments included in the measurement of the lease liability comprise the following:- Fixed payments,
including in-substance fixed payments;- Variable lease payments that depend on an index or a rate, initially
measured using the index or rate as at the commencement date;- Amounts expected to be payable under a
residual value guarantee; and- The exercise price under a purchase option that the company is reasonably
certain to exercise, lease payments in an optional renewal period if the company is reasonably certain to exercise
an extension option, and penalties for early termination of a lease unless the company is reasonably certain not
to terminate early.

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

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

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

Under Ind AS 17
Finance Lease

In the comparative period, leases are classified as Finance Lease whenever the terms of the lease transfer
substantially all the risks and rewards of ownership of the lease. All other leases are classified as Operating
lease.

Operating Lease

In the comparative period, leases in which a significant portion of the risks and rewards of ownership are not
transferred to the Company as lessee are classified as operating leases. Payments made under operating
leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over
the period of the lease unless the payments are structured to increase in line with expected general inflation to
compensate for the lessor''s expected inflationary cost increases.

ii. 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 to increase in line with expected general
inflation to compensate for the expected inflationary cost increases. The respective leased assets are included
in the balance sheet based on their nature.

1.5 Employee benefits

Employee benefits include provident fund, employee state insurance scheme, gratuity and compensated absences.
Expenses and liabilities in respect of employee benefits are recorded in accordance with Ind AS 19, Employee
Benefits.

a) Short-term employee benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short¬
term employee benefits. These benefits include salaries and wages, performance incentives which are expected
to occur in next twelve months. The undiscounted amount of short-term employee benefits to be paid in exchange
for employee services is recognised as an expense as the related service is rendered by employees.

(b) Defined contribution plan

The Company has defined contribution plans for employees comprising of Provident Fund and Employee''s State
Insurance. The contributions paid/payable to these plans during the year are charged to the Statement of Profit
and Loss for the year.

(c) Defined benefit plans

The Company has a defined benefit plan (the “Gratuity Plan”). The Gratuity Plan provides a lump sum payment
to employees who have completed five years or more of service at retirement, disability or termination of
employment, being an amount based on the respective employee''s last drawn salary and the number of years of
employment with the Company. Presently the Company''s gratuity plan is unfunded.

The present value of the defined benefit obligation is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on government bonds that have terms
approximating to the terms of the related obligation. The net interest cost is calculated by applying the discount
rate to the net balance of the defined benefit obligation and the fair value of plan assets if any. This cost is
included in employee benefit expense in the statement of profit and loss.

The liability or asset recognised in the balance sheet in respect of gratuity plan is the present value of the
defined benefit obligation at the end of the reporting period less the fair value of plan assets if any. The defined
benefit obligation is calculated annually by actuaries using the projected unit credit method.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions
are recognised in the period in which they occur, directly in other comprehensive income and are never reclassified
to profit or loss. Changes in the present value of the defined benefit obligation resulting from plan amendments
or curtailments are recognised immediately in the statement of profit and loss as past service cost.

The present value of the defined benefit obligation denominated in '' is determined by discounting the estimated

future cash outflows by reference to market yields at the end of the reporting period on government bonds that
have terms approximating to the terms of the related obligation.

Service and interest cost on the Company''s defined benefit plan is included in employee benefits expense.
Employee contributions, all of which are independent of the number of years of service, are treated as a reduction
of service cost.

1.6 Foreign currency transactions

The functional currency of the Company is the Indian Rupee (INR). These financial statements are presented in
INR ('' ). In the financial statements of the Company, transactions in currencies other than the functional currency
are translated into the functional currency at the exchange rates ruling at the date of the transaction.

Monetary assets and liabilities denominated in other currencies are translated into the functional currency at
exchange rates prevailing on the reporting date. Non-monetary assets and liabilities denominated in other
currencies and measured at historical cost or fair value are translated at the exchange rates prevailing on the
dates on which such values were determined.

All exchange differences are included in the statement of profit and loss except any exchange differences on
monetary items designated as an effective hedging instrument of the currency risk of designated forecasted
sales or purchases, which are recognized in the other comprehensive income.

1.7 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the
asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of
interest and other costs that an entity incurs in connection with the borrowing of funds.

1.8 Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all
attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income
on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed.
When the grant relates to an asset, it is treated as deferred income and released to the statement of profit and
loss over the expected useful lives of the assets concerned. When the Company receives grants of non-monetary
assets, the asset and the grant are recorded at fair value amounts and released to statement of profit and loss
over the expected useful life in a pattern of consumption of the benefit of the underlying asset.

1.9 Taxation

(a) Income tax

Income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either
in other comprehensive income (OCI) or in equity). Current tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax
returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.

(b) Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities
are recognised for all taxable temporary differences, except when it is probable that the temporary differences
will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax

credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to
be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

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.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction
either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

1.10 Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs
directly attributable to acquisition are capitalised until the property, plant and equipment are ready for use, as
intended by management.

Expenditure incurred after the property, plant and equipment have been put into operation, such as repairs and
maintenance, are normally charged to the statements of profit and loss in the period in which the costs are
incurred. Major inspection and overhaul expenditure is capitalized if the recognition criteria are met.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the
proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized net within
other income/other expenses in statement of profit and loss.

An item of property, plant and equipment and any significant part initially recognised is derecognized upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in the statement of profit and loss, when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year end and adjusted prospectively, if appropriate.

The Audit Committee and the Board of Directors of the Company at their respective meetings held on 31 March
2022 approved adoption of revaluation model as permitted by Ind AS 16 “Property, Plant and Equipment” for
measurement of carrying value of the land owned by the Company. Fair valuation of the land was carried out by
a registered valuer and the fair value of land was estimated at Rs. 720.61 lakhs and consequent revaluation gain
of Rs. 430.26 lakhs (net of tax) has been recognized in other comprehensive income, during the quarter ended
March 31, 2022.

1.11 Capital work in progress

Assets in the course of construction are capitalized in capital work in progress account. At the point when an
asset is capable of operating in the manner intended by management, the cost of construction is transferred to
the appropriate category of property, plant and equipment. Costs associated with the commissioning of an asset
are capitalised when the asset is available for use but incapable of operating at normal levels until the period of
commissioning has been completed. Revenue generated from production during the trial period is credited to
capital work in progress.

1.12 Depreciation

Assets in the course of development or construction and freehold land are not depreciated. Other property, plant
and equipment are stated at cost less accumulated depreciation and any provision for impairment. Depreciation
commences when the assets are ready for their intended use.

Depreciation is calculated on the depreciable amount, which is the cost of an asset less its residual value.
Depreciation on tangible assets has been provided under Straight Line Method over the useful life of the assets
estimated by the management (determined based on technical estimates), which is in line with the terms prescribed
in Schedule II to the Companies Act, 2013. Depreciation for assets purchased/sold during the year is
proportionately charged.

The Company has evaluated the applicability of component accounting as prescribed under Ind AS 16 and
Schedule II of the Companies Act, 2013. The management has not identified any significant component having
different useful lives as the company''s assets are not capable of being accounted separately as components.
Schedule II requires the Company to identify and depreciate significant components with different useful lives
separately.

Note: The useful life of Plant and machinery given under lease is taken as 3 years to 5 years based on the lease
agreements. The residual value of the same has been considered as the amount guaranteed by the lessees as
per the lease agreements at the end of the lease period. Hence the useful lives and residual values for these
assets are different from the useful lives/residual value as prescribed under Part C of Schedule II of the Companies
Act 2013. The useful life of vehicles given to employees as per the car policy scheme approved by the Company
is taken as 3 years to 5 years based on the tenure of scheme availed by the employee.

Depreciation methods, useful lives and residual values are reviewed at each financial year end and changes in
estimates, if any, are accounted for prospectively.

1.13 Intangible assets

Intangible assets are recorded at the consideration paid for the acquisition of such assets and are carried at cost
less accumulated amortisation and impairment. Advances paid towards the acquisition of intangible assets
outstanding at each Balance Sheet date are disclosed as other non-current assets and the cost of intangible
assets not ready for their intended use before such date are disclosed as intangible assets under development.

The Company amortises intangible over their estimated useful lives using the straight-line method. The estimated
useful lives of assets are as follows:

net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and
Loss when the asset is derecognised.

The residual values, useful lives and methods of amortisation of intangible assets are reviewed at each financial
year end and adjusted prospectively, if appropriate.

1.14 Impairment of non - financial assets

The carrying amount of assets is reviewed at each Balance Sheet date if there is any indication of impairment
based on internal/external factors. An impairment loss will be recognised wherever the carrying amount of an
asset exceeds its estimated recoverable amount. The recoverable amount is greater of the assets net selling
price and value in use. In assessing the value in use; the estimated future cash flows are discounted to the
present value using the weighted average cost of capital.

1.15 Inventories

Inventories are valued at the lower of cost and net realisable value item wise. Cost includes indirect costs
incurred in bringing the inventory to its present location and condition are accounted for as follows:

(i) Raw materials: cost includes cost of purchase net of duties, taxes that are recoverable from the government
and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on
FIFO basis.

(ii) Finished goods and work in progress: cost includes cost of direct materials and labour and a proportion of
manufacturing overheads based on the normal operating capacity, but excluding borrowing costs. Cost is
determined on FIFO basis.

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

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Mar 31, 2017

1. Background

Eastern Treads Limited was incorporated on 02/07/1993. Its shares are listed in Bombay Stock Exchange. The Company is primarily engaged in the business of manufacturing and dealing of tread rubber and rubber based adhesives and retreading services.

2. Accounting Policies Significant Accounting Policies

The significant Accounting Policies followed by the Company are as stated below:

General

The financial statements are prepared under historical cost convention and in accordance with the applicable Accounting Standards in India.

Use of Estimates

The preparation of financial statements in conformity with the Generally Accepted Accounting Principal (GAAP) requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and reported amount of income and expenses during the period. Actual figures may differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

Fixed Assets

Fixed Assets are stated at historical cost less accumulated depreciation. Advances paid towards acquisition of fixed assets and contractors are disclosed under ''Capital Advances''

Depreciation

Depreciation on tangible assets has been provided under Straight Line Method over the useful life of the assets estimated by the management which is in line with the terms prescribed in Schedule II to The Companies Act, 2013. Depreciation for assets purchased/sold during the period is proportionately charged.

Note: Depreciation on plant & Machinery has been charged on triple shift basis for the first quarter and on double shift basis for the remaining quarters as against double shift basis during the entire previous year. The useful life of plant & equipment given under lease is taken as 3 years and 5 years based on the lease agreements. The residual value of the same has been considered as the amount guaranteed by the lessees as per the lease agreements at the end of the lease period. Hence the useful lives and residual values for these assets are different from the useful lives/residual value as prescribed under Part C of Schedule II of the Companies Act 2013. The useful life of vehicles given to employees as per the car policy scheme approved by the Company is taken as 3 years to 5 years based on the tenure of scheme availed by the employee.

Amortization of Intangible Assets

Intangible assets, being Computer Software are written off over a period of five years under Straight Line Method.

Revenue Recognition

Revenue from sale of goods is recognized at the point of dispatch to the customers. Revenue from job work is recognized at the completion of the agreed services. Revenue from retreading services is recognized at the completion of the agreed services. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

Inventories and Tools & Spares

Raw materials are valued at cost on FIFO basis using weighted Average formula. Finished Goods are valued at lower of cost or net realizable value. Cost includes indirect costs. 25% of Tools & Spares are written off to revenue.

Employee Benefits

(a) Short term employee benefits such as salaries, wages, bonus and incentives which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such benefits are recognized on an undiscounted basis and charged to the profit and loss account.

(b) Defined Contribution Plans - Contributions made to the Recognized Provident Fund & Employee State Insurance Corporation are expensed to the Profit & Loss Account. The Company''s obligation is limited to the amount contributed by it.

(c) Defined Benefit Plans - Gratuity liability is a defined benefit obligation and is provided for interim period calculated on a year-to-date basis by using actuarially determined rates at the end of prior financial year.

Foreign Exchange Transactions

Revenue denominated in foreign currencies is translated into relevant functional currencies using the exchange rate in effect on the date of transaction. Transaction gain or loss realized upon the settlement of foreign currency transactions are included in determining net profit for the period in which transaction is settled.

The forward exchange contracts taken to hedge existing assets/liabilities are translated at the closing exchange rates and resultant exchange differences are recognized in the same manner as those on the underlying foreign currency asset/liability.

Borrowing Costs

Borrowing costs are expensed in the absence of outlay on qualifying assets.

Segment Reporting

In the absence of more than one distinguishable business/geographical segment, segment information is not given.

Taxes on Income

Income tax expense comprises current tax and deferred tax charge or credit. The current tax is determined as the amount of tax payable in respect of the estimated taxable income of the period. The deferred tax charge or credit is recognized using prevailing enacted or substantively enacted tax rates. Where there are unabsorbed depreciation or carry forward losses, deferred tax asset are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets are reviewed at each Balance Sheet date based on the developments during the period.

MAT Credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized 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 profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

Impairment of Assets

The carrying amount of assets is reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing the value in use; the estimated future cash flows are discounted to the present value using the weighted average cost of capital.

Provisions, Contingent Liabilities and Contingent Assets

The Company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2015

General

The financial statements are prepared under historical cost convention and in accordance with the applicable accounting standards in India.

Use of Estimates

The preparation of financial statements in conformity with the Generally Accepted Accounting Principal (GAAP) requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and reported amount of income and expenses during the period. Actual figures may differ from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

Fixed Assets

Fixed Assets are stated at historical cost less accumulated depreciation. Advances paid towards acquisition of fixed assets and contractors are disclosed under ''Capital Advances''

Depreciation

Depreciation on tangible assets has been provided under Straight Line Method over the useful life of the assets estimated by the management which is in line with the terms prescribed in Schedule II to The Companies Act, 2013. Depreciation for assets purchased/sold during the period is proportionately charged.

The management estimates the useful life of the fixed assets as follows:

Factory Building : 30 years

Building -Godown : 30 years

Roads - Non RCC : 5 years

Plant & Equipment : 15 years (Depreciation charged on double shift basis)

Electrification & Water Systems : 10 years Lab Equipments : 10 years

Furniture & Fixtures : 10 years

Office Equipments : 5 years

Computer & Accessories : 3 years

Vehicles : 8 years

During the current year, the Company has reviewed the useful life of its assets as per the Companies Act, 2013 and has re-estimated the same accordingly. Consequently, an amount of Rs. 104,05,973/- being the excess depreciation charged as per the earlier regime is written back during the year.

Amortisation of Intangible Assets

Intangible assets, being Computer Software are written off over a period of five years under Straight Line Method.

Revenue Recognition

Revenue from sale of goods is recognised at the point of despatch to the customers. Revenue from job work is recognised at the completion of the agreed services. Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

Inventories and Tools & Spares

Raw materials are valued at cost on FIFO basis. Finished Goods are valued at lower of cost or net realisable value. Cost includes indirect costs. 25% of Tools & Spares are written off to revenue.

Employee Benefits

(a) Short term employee benefits such as salaries, wages, bonus and incentives which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such benefits are recognised on an undiscounted basis and charged to the profit and loss account.

(b) Defined Contribution Plans - Contributions made to the Recognised Provident Fund & Employee State Insurance Corporation are expensed to the Profit & Loss Account. The Company''s obligation is limited to the amount contributed by it.

(c) Defined Benefit Plans - The Company is a member of Group Gratuity Scheme administered by LIC of India. The liability for gratuity is accounted on the basis of actuarial valuation done by LIC of India.

Foreign Exchange Transactions

Revenue denominated in foreign currencies is translated into relevant functional currencies using the exchange rate in effect on the date of transaction. Transaction gain or loss realised upon the settlement of foreign currency transactions are included in determining net profit for the period in which transaction is settled.

The premium or discount on a forward exchange contract taken to hedge foreign currency risk of an existing asset/liability is recognised over the period of the contract and is recognised in the statement of profit and loss.

The forward exchange contracts taken to hedge existing assets/liabilities are translated at the closing exchange rates and resultant exchange differences are recognised in the same manner as those on the underlying foreign currency asset/liability.

Borrowing Costs

Borrowing costs are expensed in the absence of outlay on qualifying assets.

Segment Reporting

In the absence of more than one distinguishable business/ geographical segment, segment information is not given.

Taxes on Income

Income tax expense comprises current tax and deferred tax charge or credit. The current tax is determined as the amount of tax payable in respect of the estimated taxable income of the period. The deferred tax charge or credit is recognised using prevailing enacted or substantively enacted tax rates. Where there are unabsorbed depreciation or carry forward losses, deferred tax asset are recognised only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. Deferred tax assets are reviewed at each Balance Sheet date based on the developments during the period.

MAT Credit is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. 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 profit and loss account and shown as MAT Credit Entitlement. The company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that company will pay normal Income Tax during the specified period.

Impairment of Assets

The carrying amount of assets is reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An impairment loss will be recognised wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing the value in use; the estimated future cash flows are discounted to the present value using the weighted average cost of capital.

Provisions, Contingent Liabilities and Contingent Assets

The Company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2013

The significant Accounting Policies followed by the Company are as stated below:

General

The financial statements are prepared under historical cost convention and in accordance with the applicable Accounting Standards in India.

Use of Estimates

The preparation of financial statements in conformity with the Generally Accepted Accounting Principles (GAAP) requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and reported amount of income and expenses during the period. Actual figures may differ from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

Fixed Assets

Fixed Assets are stated at historical cost less accumulated depreciation.

Advances paid towards acquisition of fixed assets and contractors are disclosed under ''Capital Advances''

Depreciation

Depreciation has been provided on fixed assets under Straight Line Method at the rates and in the manner given underScheduleXIVtoTheCompaniesAct, 1956.

Amortisation of Intangible Assets

Intangible assets are written off over a period of five years under Straight Line Method

Revenue Recognition

Revenue from sale of goods is recognised at the point of despatch to the customers. Revenue from job work is recognised at the completion of the agreed services.

Inventories and Tools & Spares

Raw materials are valued at cost on FIFO basis.

Finished Goods are valued at lower of cost or net realisable value. Cost includes indirect costs.

25% of Tools & Spares are written off to revenue.

Preference Share Issue Expenses

The expenses in relation to the preference share issue is written off over a period of 5 years on straight line method.

Employee Benefits

a.Short term employee benefits such as salaries, wages, bonus and incentives which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such

benefits are recognised on an undiscounted basis and charged to the profit and loss account.

b.Defined Contribution Plans - Contributions made to the Recognised Provident Fund & Employee State Insurance Corporation are expensed to the Profit & Loss Account. The Company''s obligation is limited to the amount contributed by it.

c.Defined Benefit Plans - The Company is a member of Group Gratuity Scheme administered by LIC of India. The liability for gratuity is accounted on the basis of acturial valuation done by LIC of India.

Borrowing Costs

Borrowing costs are expensed in the absence of outlay on qualifying assets.

Segment Reporting

In the absence of more than one distinguishable business/geographical segment, segment information is not given.

Taxes on Income

Income tax expense comprises current tax and deferred tax charge or credit. The current tax is determined as the amount of tax payable in respect of the estimated taxable income of the period. The deferred tax charge or credit is recognised using prevailing enacted or substantively enacted tax rates. Where there are unabsorbed depreciation or carry forward losses, deferred tax asset are recognised only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. Deferred tax assets are reviewed at each Balance Sheet date based on the developments during the period.

MAT Credit is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. 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 profit and loss account and shown as MAT Credit Entitlement. The company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that company will pay normal Income Tax during the specified period.

Impairment of Assets

The carrying amount of assets is reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An impairment loss will be recognised wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing the value in use; the estimated future cash flows are discounted to the present value using the weighted average cost of capital.

Provisions, Contingent Liabilities and Contingent Assets

The company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2012

General

The financial statements are prepared under historical cost convention and in accordance with the applicable accounting standards in India.

Use of Estimates

The preparation of financial statements in confirm its with the Generally Accepted Accounting Principles (GAAP) requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and reported amount of income and expenses during the period. Actual figures may differ from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

Fixed Assets

Fixed Assets are stated at historical cost less accumulated depreciation.

Advances paid towards acquisition of fixed assets and contractors are disclosed under'Capital Advances'.

Depreciation

Depreciation has been provided on fixed assets under Straight Line Method at the rates and in the manner given under Schedule XlV to The Companies Act, 1956.

Revenue Recognition

Revenue from sale of goods is recognised at the point of despatch to the customers.

Revenue from job work is recognised at the completion of the agreed services.

Inventories and Tools & Spares

Raw materials are valued at cost on FIFO basis.

Finished Goods are valued at lower of cost or net realisable value. Cost includes indirect costs.

25% of Tools & Spares are written off to revenue.

Preference Share Issue Expenses

The expenses in relation to the preference share issue is written off over a period of 5 years on straight line method.

Employee Benefits

a. Short term employee benefits such as salaries, wages, bonus and incentives which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such benefits are recognised on an undiscounted basis and charged to the profit and loss account.

b. Defined Contribution Plans - Contributions made to the Recognised Provident Fund & Employee State Insurance Corporation are expensed to the Profit & Loss Account. The Company's obligation is limited to the amount contributed by it.

c. Defined Benefit Plans - The Company is a member of Group Gratuity Scheme administered by LIC of India. The liability for gratuity is accounted on the basis of acturial valuation done by LIC of India

Borrowing Costs

Borrowing costs are expensed in the absence of outlay on qualifying assets.

Segment Reporting

In the absence of more than one distinguishable business/ geographical segment, segment information is not given.

Taxes on Income

Taxes on Income is accounted under the Tax Effect Method in accordance with Accounting Standard -22 issued by the Institute of Chartered Accountants of India. On account of the substantial amount of unabsorbed losses and depreciation under the tax provisions, the net DTA position of the previous year (Rs. 79.20 Lakhs) was not recognised as on 31.03.2011. In view of the increased profitability and the positive future outlook, Deferred Tax Asset of Rs. 4.12 lakhs is recognised during the year.

Impairment of Assets

The carrying amount of assets is reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An impairment loss will be recognised wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing the value in use; the estimated future cash flows are discounted to the present value using the weighted average cost of capital.

Provisions, Contingent Liabilities and Contingent Assets

The Company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2010

The significant Accounting Policies followed by the Company are as stated below:

General

The financial statements are prepared under historical cost convention and in accordance with the applicable accounting standards in India.

Use of Estimates

The preparation of financial statements in confirmity with the Generally Accepted Accounting Principal (GAAP) requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and reported amount of income and expenses during the period. Actual figures may differ from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

Fixed Assets

Fixed Assets are stated at historical cost less accumulated depreciation. Advances paid towards acquisition of fixed assets are disclosed under fixed capital expenditure.

Depreciation

Depreciation has been provided on fixed assets under Straight Line Method at the rates and in the manner given under Schedule XIV to The Companies Act, 1956.

Revenue Recognition

Revenue from sale of goods is recognised at the point of despatch to the customers. Revenue from job work is recognised at the completion of the agreed services.

Inventories and Tools & Spares

Raw materials are valued at cost on FIFO basis. Finished Goods are valued at lower of cost or net realisable value. Cost includes indirect costs. 25% of Tools & Spares are written off to revenue.

Preference Share Issue Expenses

The expenses in relation to the preference share issue is written off over a period of 5 years.

Employee Benefits

a. Short term employee benefits such as salaries, wages, bonus and incentives which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such benefits are recognised on an undiscounted basis and charged to the profit and loss account.

b. Defined Contribution Plans - Contributions made to the Recognised Provident Fund & Employee State Insurance Corporation are expensed to the Profit & Loss Account. The Company’s obligation is limited to the amount contributed by it.

c. Defined Benefit Plans - The Company is a member of Group Gratuity Scheme administered by LIC of India. The liability for gratuity is accounted on the basis of acturial valuation done by L I C of India.

Borrowing Costs

Borrowing costs are expensed in the absence of outlay on qualifying assets.

Segment Reporting

In the absence of more than one distinguishable business/ geographical segment segment information is not given.

Taxes on Income

Taxes on Income is accounted under the Tax Effect Method in accordance with Acounting Standard 22 issued by the Institute of Chartered Accountants of India. On account of the substantial amount of unabsorbed losses and depreciation under the tax provisions, the net position is a Deferred Tax Asset of Rs.138.50 lacs. This has not been recognised in the accounts as there is no virtual certainty of sufficient taxable profits in the foreseable future, which would offset the same.

Impairment of Assets

The carrying amount of assets is reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An impairment loss will be recognised wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing the value in use; the estimated future cash flows are discounted to the present value using the weighted average cost of capital.

Provisions, Contingent Liabilities and Contingent Assets

The company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognised nor disclosed in the financial statements.