Accounting Policies of Foundry Fuel Products Ltd. Company

Mar 31, 2024

Note 1 - Significant accounting policies

1.1 Basis of preparation of financial statements:

Compliance with Ind AS

The financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under Companies (Indian Accounting Standards) Rules, 2015 as amended
by the Companies (Indian Accounting Standards) Rules, 2019.

1.2 Presentation and disclosures of financial statements:

All assets and liabilities have been classified as current & non-current as per Company''s normal
operating cycle and other criteria set out in the Division II of Schedule III to the Companies Act,
2013. The figures are rounded off to lakhs with two decimals.

In view of no business activities carried on by the Company, 12 months has been considered by the
Company as normal operating cycle for the purpose of current/non-current classification of assets
& liabilities. Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The financial statements are presented in Indian Rupee, which is the functional currency of the
Company.

1.3 Use of estimates and judgements:

The preparation of the financial statements in conformity with IND AS requires the Management to
make estimates judgments and assumptions that affect the application of accounting policies, reported
balances of assets and liabilities, the disclosure of contingent assets and liabilities as on the date of
financial statements and reported amounts of income and expenses during the year. Management
believes that the estimates and assumptions used in the preparation of financial statements are
prudent and reasonable. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the estimates are revised
and future periods are affected. The financial instruments are measured at fair value and fair value
is determined based on hierarchy given in Note 16 (b). There are no other items that have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year.

1.4 Basis of measurement:

The financial statements have been prepared on a historical cost convention and on accrual basis
except for non-current investments which have been measured at fair value amount. The financial
statements are in accordance with Division II of Schedule III to the Act, as applicable to the Company.

1.5 Financial Instruments:

Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instrument. Financial assets and 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
and loss) are added to or deducted from the fair value measured on initial recognition of financial
asset or financial liability. The transaction costs directly attributable to the acquisition of financial
assets and financial liabilities at fair value through profit and loss are immediately recognised in the
statement of profit and loss.

Effective interest method:

The effective interest method is a method of calculating the amortised cost of a financial instrument
and of allocating interest income or expense over the relevant period. The effective interest rate is
the rate that exactly discounts future cash receipts or payments through the expected life of the
financial instrument, or where appropriate, a shorter period.

(a) Financial assets:

Cash and bank balances:

Cash and cash equivalents include cash in hand, bank balances, deposits with banks (other
than on lien) and all short term highly liquid investments (with zero exit load at the time of
investment) that are readily convertible into known amounts of cash and are subject to an
insignificant risk of changes in value.

Financial assets at amortized cost:

Financial assets are subsequently measured at amortised cost if these financial assets are
held within a business model whose objective is to hold these assets in order to collect
contractual cash flows and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

Financial assets measured at fair value:

Financial assets are measured at fair value through other comprehensive income if these
financial assets are held within a business model whose objective is to hold these assets in
order to collect contractual cash flows or to sell these financial assets and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.

Equity investments which are not held for trading, irrevocable election is made to measure at
fair value through other comprehensive income. Such election is made on an instrument by
instrument basis at the time of initial recognition of such equity investments.

Financial asset not measured at amortised cost or at fair value through other comprehensive
income is carried at fair value through the statement of profit and loss.

Impairment of financial assets:

The Company recognizes loss allowances using the expected credit loss (ECL) model for the
financial assets which are not fair valued through profit or loss. For all other financial assets,
expected credit losses are measured at an amount equal to the 12-month ECL, unless there
has been a significant increase in credit risk from initial recognition in which case those are
measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required
to adjust the loss allowance at the reporting date to the amount that is required to be recognised
is recognized as an impairment gain or loss in profit or loss.

De-recognition of financial assets:

The Company de-recognises a financial asset only when the contractual rights to the cash
flows from the asset expire, or it transfers the financial asset and substantially all risks and
rewards of ownership of the asset to another entity.

(b) Financial liabilities and equity instruments:

Classification as debt or equity:

Financial liabilities and equity instruments issued by the Company are classified according to
the substance of the contractual arrangements entered into and the definitions of a financial
liability and an equity instrument.

Equity instruments:

An equity instrument is any contract that evidences a residual interest in the assets of the
Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds
received, net of direct issue costs.

Financial liabilities:

Trade and other payables are initially measured at fair value, net of transaction costs, and are
subsequently measured at amortised cost, using the effective interest rate method where the
time value of money is significant.

De-recognition of financial liabilities:

The Company de-recognises financial liabilities when, and only when, the Company''s
obligations are discharged, cancelled or they expire.

1.6 Property, plant and equipment

a) Property, plant and equipment are stated at cost of acquisition less accumulated depreciation
and accumulated impairment losses, if any. Gross carrying amount of all property, plant and
equipment are measured using cost model. Cost of property, plant and equipment includes
non-refundable taxes and duties, borrowing cost directly attributable to the qualifying asset
and any directly attributable costs of bringing the asset to its working condition for its intended
use and the present value of the expected cost for the dismantling/decommissioning of the
asset.

b) Parts (major components) of an item of property, plant and equipments having different useful
lives are accounted as separate items of property, plant and equipments. When significant
parts of property, plant and equipment are required to be replaced at intervals, the Company
derecognises the replaced part, and recognises the new part with its own associated useful
life.

c) Capital work-in-progress comprises of cost incurred on property, plant and equipment under
construction / acquisition that are not yet ready for their intended use at the Balance Sheet
date.

d) Property, plant and equipment are eliminated from financial statement, either on disposal or
when retired from active use. Losses arising in the case of retirement of property, plant and
equipment and gains or losses arising from disposal of property, plant and equipment are
recognised in the statement of profit and loss in the year of occurrence.

e) Depreciation on property, plant and equipment

Depreciation on property, plant and equipment (other than freehold land and capital work in
progress) is provided on straight line basis over the useful life of the relevant assets net of
residual value whose life is in consonance with the life mentioned in Schedule II of the
Companies Act, 2013 except;

b) In the case of assets purchased, sold or discarded during the year, depreciation on such
assets is calculated on pro-rata basis from the date of such addition or as the case may be,
upto the date on which such asset has been sold or discarded.

c) The residual values, useful lives and methods of depreciation of property, plant and equipment
are reviewed at each balance sheet date and in case of any changes, effect of the same is
given prospectively.

1.7 Revenue recognition:

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured. Revenue is recognized on satisfaction of
performance obligation as per contract and upon transfer of control of products to customers. Revenue
is measured at the transaction price that is allocated to that performance obligation.

1.8 Impairment of non-financial assets

The carrying amounts of assets are reviewed at each balance sheet date for any indication of
impairment based on internal / external factors. An impairment loss is recognised wherever the
carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher
of a) fair value of assets less cost of disposal and b) its value in use. Value in use is the present
value of future cash flows expected to derive from an assets or Cash-Generating Unit (CGU).

Based on the assessment done at each balance sheet date, recognised impairment loss is further
provided or reversed depending on changes in circumstances. After recognition of impairment loss
or reversal of impairment loss as applicable, the depreciation charge for the asset is adjusted in
future periods to allocate the asset''s revised carrying amount, less its residual value (if any), on a
systematic basis over its remaining useful life. If the conditions leading to recognition of impairment
losses no longer exist or have decreased, impairment losses recognised are reversed to the extent
it does not exceed the carrying amount that would have been determined after considering
depreciation / amortisation had no impairment loss been recognised in earlier years.

1.9 Leases

At inception of a contract, the Company assesses whether a contract is, or contains, 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. The Company has elected not to recognize

right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The
Company recognizes the lease payments associated with these leases as an expense on a straight¬
line basis over the lease term.

At commencement or on modification of a contract that contains a lease component, the Company
allocates the consideration in the contract to each lease and non-lease component on the basis of
their relative stand-alone prices.

The Company recognizes 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 comprise of the initial amount of the
lease liability adjusted for any lease payments made at or before the commencement date net of
lease incentive received, 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.

The right-of-use assets is subsequently measured at cost less any accumulated depreciation,
accumulated impairment losses, if any and adjusted for any re-measurement of the lease liability.
The right-of-use asset is depreciated using the straight-line method from the commencement date
over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-
of-use assets are determined on the same basis as those of property, plant and equipment.

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, the Company''s incremental borrowing rate. The lease liability is
measured at amortized cost using the effective interest method.

1.10 Taxes on income:

a) Tax expenses for the year comprises of current tax, deferred tax charge or credit and
adjustments of taxes for earlier years. Current and deferred tax is recognised in profit or loss,
except to the extent that it relates to items recognised in other comprehensive income or
directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively

b) Provision for current tax is made as per the provisions of Income Tax Act, 1961.

c) 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,
and deferred tax assets are recognised for all deductible temporary differences, carry forward
tax losses and allowances to the extent that it is probable that future taxable profits will be
available against which those deductible temporary differences, carry forward tax losses and
allowances can be utilised.

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. 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 taxation authority.

Deferred tax assets are recognised only to the extent that it is probable that future taxable
profit will be available against which such deferred tax assets can be utilized. In situations
where the Company has unused tax losses and unused tax credits, deferred tax assets are
recognised only if it is probable that they can be utilized against future taxable profits. Deferred
tax assets are reviewed for the appropriateness of their respective carrying amounts at each
Balance Sheet date.

At each reporting date, the Company re-assesses unrecognised deferred tax assets. It
recognises previously unrecognised deferred tax assets to the extent that it has become
probable that future taxable profit allow deferred tax assets to be recovered.

1.11 Cash and cash equivalents:

Cash and cash equivalents include cash in hand, bank balances, deposits with banks (other than on
lien) and all short term highly liquid investments / mutual funds that are readily convertible into
known amounts of cash and are subject to an insignificant risk of changes in value.

1.12 Cash flow statement:

Cash flows are reported using the indirect method, where by net profit/(loss) before tax is adjusted
for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments and item of income or expenses associated with investing or
financing cash flows. The cash flows from operating, investing and financing activities of the Company
are segregated.

1.13 Earnings per share:

a) Basic earnings per share is calculated by dividing the net profit or loss (after tax) for the year
attributable to equity shareholders by the weighted average number of equity shares outstanding
during the year. The weighted average number of equity shares outstanding during the period
is adjusted for events of bonus issue and share split, if any.

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

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Mar 31, 2015

1.1. Basis of preparation of financial Statements

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention on accrual basis. GAAP comprises mandatory Accounting Standards as specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies Act, 2013 (to the extent notified) and guidelines issued by Securities and Exchange Board of India.

1.2. Presentation and disclosure of financial statements:

All assets and liabilities have been classified as current & non-current as per company's normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013.

In view of no business activities carried on by the Company, 12 months has been considered by the Company as its operating cycle for the purpose of current / non- current classification of assets and liabilities.

1.3. Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the application of accounting policies, reported balances of assets and liabilities, disclosure of contingent liabilities as on the date of financial statements and reported amounts of income and expenses during the period. Management believes that the estimates and assumptions used in the preparation of financial statements are prudent and reasonable. Actual results could differ from those estimates. Any difference between the actual results and estimates are recognized in the period in which the results are known / materialize. Any revision to accounting estimates is recognized prospectively in the current and future periods.

1.4. Fixed Assets

Tangible assets are stated at cost of acquisition / construction less accumulated depreciation and accumulated impairment losses, if any. Cost of fixed assets includes non - refundable taxes and duties, borrowing cost directly attributable to the qualifying asset and any directly attributable costs of bringing the asset to its working condition for its intended use.

Capital work - in - progress comprises of cost incurred on fixed assets under construction / development / acquisition that are not yet ready for their intended use at the Balance Sheet Date.

1.5. Depreciation and Amortization

Depreciation is provided using straight line basis in accordance with schedule II to the Companies Act. 2013.

As per the transitional provision under Part C of Schedule II of the Companies Act, 2013, in respect of assets acquired prior to 1st April, 2014, the carrying amount as on 1st April, 2014 is depreciated over the remaining useful life of the assets and in respect of assets whose remaining useful life of an asset is nil, the carrying value after retaining the residual value (if any) is recognized in the opening balance of retained earnings (net of taxes).

Depreciation on individual assets whose cost does not exceed five thousand rupees has been provided at the rate of hundred per cent in the year of capitalization.

1.6. Impairment of assets

The carrying amounts of assets are reviewed at each balance sheet date for any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Based on the assessment done at each balance sheet date, recognised impairment loss is further provided or reversed depending on changes in circumstances. After recognition of impairment loss or reversal of impairment loss as applicable, the depreciation charge for the fixed asset is adjusted in future periods to allocate the asset's revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life. If the conditions leading to recognition of impairment losses no longer exist or have decreased, impairment losses recognised are reversed to the extent it does not exceed the carrying amount that would have been determined after considering depreciation/ amortization had no impairment loss been recognised in earlier years.

1.7. Investments

Investments are classified into current and long-term investments.

Investments that are readily realizable and intended to be held for not more than a year from the date on which such investments are made are classified as current investments. All other investments are classified as long-term investments.

Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value of long term investments is made to recognize a decline, other than temporary, on an individual investment basis.

The cost of investments comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. In determining the holding cost of investments and the or loss on sale of investments, the 'weighted average cost' method is followed.

1.8. Revenue recognition

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

1.9. Employee Benefits

There is no employee in the Company as on 31st March 2015. There are no short term employee benefits, defined contribution and benefit plan which requires accounting in the financial statements.

1.10. Borrowing cost

Borrowing costs that are directly attributable to the acquisition, construction or development of a qualifying asset are capitalized as part of the cost of the respective asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset which necessarily takes a substantial period of time to get ready for its intended use or sale. 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.

1.11. Taxes on income

Tax expenses comprises of current tax, deferred tax charge or credit and adjustments of taxes for earlier years.

Provision for current tax is made as per the provisions of Income Tax Act, 1961.

Deferred tax charge or credit reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years and are measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits. Deferred tax assets are reviewed for the appropriateness of their respective carrying amounts at each balance sheet date.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably/virtually certain as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.12. Cash and cash equivalents

Cash and cash equivalents include cash in hand, bank balances, deposits with banks (other than on lien) and all short term and highly liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of changes in value.

1.13. Cash flow statements

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

1.14. Provisions and contingent liabilities

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

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

1.15. Earnings per share

Basic earning per share is calculated by dividing the net profit or loss (after tax) for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue, share warrants and share split. Diluted earnings per share calculated by dividing the net profit or loss (after tax) for the year attributable to shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

1.16. Segmental reporting

The segments have been identified taking into account the nature of the products, geographical locations, nature of risks and returns, internal organization structure and internal financial reporting system. The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole.

1.17. Prior period items

Prior period items are disclosed separately in the Financial Statement.

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Mar 31, 2014

1.1. Basis of preparation of Financial Statements

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as specified in the Companies (Accounting Standards) Rules, 2006 prescribed by the Central Government and the relevant provisions of the Companies Act, 1956 (to the extent applicable) and the Companies Act, 2013 (to the extent notified). As clarified by General circular 08/2014 dated 4th April 2014 issued by the Ministry of Corporate Affairs, financial statements for the year ended 31st March 2014 have been prepared in accordance with the Companies Act, 1956.

1.2. Presentation and disclosure of financial statements

All assets and liabilities have been classified as current & non-current as per company''s normal operating cycle and other criteria set out in the revised schedule VI.

In view of no business activities carried on by the Company, 12 months has been considered by the Company as its operating cycle for the purpose of current/ non- current classification of assets and liabilities.

1.3. Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the application of accounting policies, reported balances of assets and liabilities, disclosure of contingent liabilities as on the date of financial statements and reported amounts of income and expenses during the period. Management believes that the estimates and assumptions used in the preparation of financial statements are prudent and reasonable. Actual results could differ from those estimates. Any difference between the actual results and estimates are recognized in the period in which the results are known / materialize. Any revision to accounting estimates is recognized prospectively in the current and future periods.

1.4. Fixed Assets

Tangible assets are stated at cost of acquisition / construction less accumulated depreciation and accumulated impairment losses, if any.

Cost of fixed assets includes non - refundable taxes and duties, borrowing cost directly attributable to the qualifying asset and any directly attributable costs of bringing the asset to its working condition for its intended use.

Capital work - in - progress comprises of cost incurred on fixed assets under construction/ development/acquisition that are not yet ready for their intended use at the Balance Sheet Date.

1.5. Depreciation and Amortization

Depreciation is provided using straight line method on pro - rata basis at the rates prescribed under schedule XIV to the Companies Act, 1956, except in respect of certain items of plant & machinery where triple shift depreciation rate is charged instead of single shift rate. Depreciation on individual assets whose cost does not exceed five thousand rupees has been provided at the rate of hundred per cent in the year of capitalization

1.6. Impairment of assets

The carrying amounts of assets are reviewed at each balance sheet date for any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Based on the assessment done at each balance sheet date, recognised impairment loss is further provided or reversed depending on changes in circumstances. After recognition of impairment loss or reversal of impairment loss as applicable, the depreciation charge for the fixed asset is adjusted in future periods to allocate the asset''s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life. If the conditions leading to recognition of impairment losses no longer exist or have decreased, impairment losses recognized are reversed to the extent it does not exceed the carrying amount that would have been determined after considering depreciation / amortization had no impairment loss been recognized in earlier years.

1.7. Investments

Investments are classified into current and long-term investments.

Investments that are readily realizable and intended to be held for not more than a year from the date on which such investments are made are classified as current investments. All other investments are classified as long-term investments.

Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value of long term investments is made to recognize a decline, other than temporary, on an individual investment basis.

The cost of investments comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. In determining the holding cost of investments and the gain or loss on sale of investments, the ''weighted average cost'' method is followed.

1.8. Revenue recognition

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

i. Dividend income on investment is accounted for in the year in which the right to receive the payment is established.

1.9. Employee Benefits

There is no employee in the Company as on 31st March 2014. There are no short term employee benefits, defined contribution and benefit plan which requires accounting in the financial statements.

1.10. Borrowing cost

Borrowing costs that are directly attributable to the acquisition, construction or development of a qualifying asset are capitalized as part of the cost of the respective asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset which necessarily takes a substantial period of time to get ready for its intended use or sale. 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.

1.11. Taxes on income

Tax expenses comprises of current tax, deferred tax charge or credit and adjustments of taxes for earlier years.

Provision for current tax is made as per the provisions of Income Tax Act, 1961.

Deferred tax charge or credit reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years and are measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits. Deferred tax assets are reviewed for the appropriateness of their respective carrying amounts at each balance sheet date.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably/virtually certain as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.12. Cash and cash equivalents

Cash and cash equivalents include cash in hand, bank balances, deposits with banks (other than on lien) and all short term and highly liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of changes in value.

1.13. Cash flow statements

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

1.14. Provisions and contingent liabilities

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

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

1.15. Earnings per share

Basic earning per share is calculated by dividing the net profit or loss (after tax) for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue, share warrants and share split. Diluted earnings per share is calculated by dividing the net profit or loss (after tax) for the year attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

1.16. Segmental reporting

The segments have been identified taking into account the nature of the products, geographical locations, nature of risks and returns, internal organization structure and internal financial reporting system. The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole.

1.17. Prior period items

Prior period items are disclosed separately in the Financial Statement.

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Mar 31, 2013

1.1. Basis of preparation of financial Statements

The financial statements are prepared in accordance with Indian Generally Accepted Account- ing Principles ("GAAP") under the historical cost convention on accrual basis. GAAP com- prises mandatory Accounting Standards as specified in the Companies (Accounting Standards) Rules, 2006 prescribed by the Central Government and the relevant provisions of the Compa- nies Act, 1956 and guidelines issued by the Securities and Exchange Board of India.

1.2. Presentation and disclosure of financial statements:

All assets and liabilities have been classified as current & non-current as per company''s normal operating cycle and other criteria set out in the revised schedule VI.

In view of no business activities carried on by the Company, 12 months has been considered by the Company as its operating cycle for the purpose of current/ non- current classification of assets and liabilities.

1.3. Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the application of accounting policies, reported balances of assets and liabilities, disclosure of contingent liabili- ties as on the date of financial statements and reported amounts of income and expenses during the period. Management believes that the estimates and assumptions used in the preparation of financial statements are prudent and reasonable. Actual results could differ from those esti- mates. Any difference between the actual results and estimates are recognized in the period in which the results are known / materialize. Any revision to accounting estimates is recognized prospectively in the current and future periods.

1.4. Fixed Assets

Tangible assets are stated at cost of acquisition / construction less accumulated depreciation and accumulated impairment losses, if any.

Cost of fixed assets includes non - refundable taxes and duties, borrowing cost directly attribut- able to the qualifying asset and any directly attributable costs of bringing the asset to its working condition for its intended use.

Capital work - in - progress comprises of cost incurred on fixed assets under construction/ development/acquisition that are not yet ready for their intended use at the Balance Sheet Date.

1.5. Depreciation and Amortization

Depreciation is provided using straight line method on pro - rata basis at the rates prescribed under schedule XIV to the Companies Act, 1956, except in respect of certain items of plant &

machinery where triple shift depreciation rate is charged instead of single shift rate.

Depreciation on individual assets whose cost does not exceed five thousand rupees has been provided at the rate of hundred per cent in the year of capitalization

1.6. Impairment of assets

The carrying amounts of assets are reviewed at each balance sheet date for any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Based on the assessment done at each balance sheet date, recognised impairment loss is further provided or reversed depending on changes in circumstances. After recognition of impairment loss or reversal of impairment loss as applicable, the depreciation charge for the fixed asset is adjusted in future periods to allocate the asset''s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

1.7. Investments

Investments are classified into current and long-term investments.

Investments that are readily realizable and intended to be held for not more than a year from the date on which such investments are made are classified as current investments. All other invest- ments are classified as long-term investments.

Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value of long term investments is made to recognize a decline, other than temporary, on an individual investment basis.

The cost of investments comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. In determining the holding cost of investments and the gain or loss on sale of investments, the ''weighted average cost'' method is followed.

1.8. Revenue recognition

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

Dividend income on investment is accounted for in the year in which the right to receive the payment is established.

1.9. Employee Benefits

There is no employee in the Company as on 31 st March 2013. During the year and in the previ- ous year, there was only one employee in the Company. There are no short term employee ben- efits, defined contribution and benefit plan which requires accounting in the financial state- ments.

1.10. Borrowing cost

Borrowing costs that are directly attributable to the acquisition, construction or development of a qualifying asset are capitalized as part of the cost of the respective asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset which necessarily takes a substantial period of time to get ready for its intended use or sale. 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.

1.11. Taxes on income

Tax expenses comprises of current tax, deferred tax charge or credit and adjustments of taxes for earlier years.

Provision for current tax is made as per the provisions of Income Tax Act, 1961.

Deferred tax charge or credit reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years and are measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all de- ferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits. Deferred tax assets are reviewed for the appropriateness of their respective carrying amounts at each balance sheet date.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recog- nizes unrecognized deferred tax assets to the extent that it has become reasonably/virtually certain as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.12. Cash and cash equivalents

Cash and cash equivalents include cash in hand, bank balances, deposits with banks (other than on lien) and all short term and highly liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of changes in value.

1.13. Cash flow statements

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operat- ing cash receipts or payments and item of income or expenses associated with investing or fi- nancing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

i.14. Provisions and contingent liabilities

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

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

1.15. Earnings per share

Basic earning per share is calculated by dividing the net profit or loss (after tax) for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the period is. adjusted for events of bonus issue, share warrants and share split. Diluted earnings per share is calculated by dividing the net profit or loss (after tax) for the year attributable to equity share- holders with weighted average number of equity shares outstanding during the year and are adjusted for the effects of all dilutive potential equity shares.

1.16. Segmental reporting

The segments have been identified taking into account the nature of the products, geographical locations, nature of risks and returns, internal organization structure and internal financial re- porting system. The Company prepares its segment information in conformity with the account- ing policies adopted for preparing and presenting the financial statements of the company as a whole.

1.17. Prior period items

Prior period items are disclosed separately in the Financial Statement.

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Mar 31, 2010

(A) Basis of preparation of financial statements :

(i) The financial statements have been prepared under the historical cost convention and accrual basis in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the Company.

(ii) Accounting policies not specifically referred to otherwise be consistent with generally accepted accounting principles followed by the Company.

(B) Fixed Assets and Depreciation :

(i) Fixed Assets are stated at cost less depreciation.

(ii) Depreciation is provided on Straight-Line method at the rates specified in Schedule - XIV of the Companies Act, 1956

(C) Impairment of Assets

An asset is treated as impaired when carrying cost of the asset exceeds its recoverable amount. An impairment loss, if any, is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

(D) Investments:

(i) Long Term Investments are carried at cost after deducting provisions, where the fall in market value has been considered as other than temporary in nature.

(ii) Current Investments are valued at lower of cost or market value.

(E) Valuation of Inventories:

Raw materials, stores & spares and finished goods are valued at cost or net realizable value, whichever is lower. Cost is determined on FIFO Basis.

(F) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost till the assets are ready for use. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are treated as expense in the period in which these are incurred.

(G) Sales:

Sales are net off sales tax. Revenue from sales is recognized at the point of dispatch to the customers when the risk and reward stands transferred to the customers.

(H) Provisions, Contingent Liabilities & 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 the notes to the accounts. Contingent Asset is neither recognized nor disclosed in the financial statements.

(I) Taxes on Income

Current Tax is determined as the tax payable in respect of taxable income for the year.

Provision is made for Deferred tax for all timing differences arising between taxable in- come and accounting income at currently enacted or substantively enacted tax rate.

Deferred Tax assets are recognized, only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.