Accounting Policies of Frontline Corporation Ltd. Company

Mar 31, 2025

2.1 Statements of compliance

The Financial Statements have been prepared in accordance with Indian Accounting Standards (IND AS) as
prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards)
Rules, 2015 and Companies (Indian Accounting Standards) (Amendment) Rules, 2016 and relevant provisions of
the Companies Act, 2013. The Financial Statements comply with IND AS notified by Ministry of Company Affairs
("MCA"). The Company has consistently applied the accounting policies used in the preparation for all periods
presented.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policies hitherto in
use.

As the quarter and year figures are taken from the source and rounded to the nearest digit, the figures reported
for the previous quarter might not always added up to the yearend figure reported in this statement.

2.2 BASIS OF PREPARATION AND PRESENTATION

These financial statements have been prepared on the historical cost basis, except for certain financial
instruments which are measured at fair values at the end of each reporting period, as explained in accounting
policies below.

Historical cost is generally based on the fair value of the consideration given in the exchange for goods and
services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price is directly
observable or estimated using another valuation technique .In estimating the fair values of an asset or a
liability, the Company takes into account the characteristics of the asset or liability if market participants would
take those characteristics into account when pricing the asset or liability at the measurement date. The
principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a
liability is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant
that would use the asset in highest and best use.

When measuring the fair value of an asset or liability, the Company uses observable market data as far as
possible. if the inputs used to measure the fair value of an asset or liability fall into different levels of the fair
value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value
hierarchy as the lowest level input that is significant to the entire measurement. For assets and liabilities that
are recognized in balance sheet on a recurring basis, the Company determines whether transfers have occurred
between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant
to the fair value measurement as a whole) at the end of each reporting period.

Fair value for measurement and/or disclosure purposes in these financial statements is determined on
such a basis, except for leasing transactions that are within the scope of Ind AS 17, and measurements
that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or
value in use in Ind AS 36.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities
on the basis of nature, characteristics and risks of asset or liability and the level of the fair value
hierarchy as explained above.

The principal accounting policies are set out below:

2.3 Inventories

Inventories comprise all cost of purchase, and other costs incurred in bringing the inventories to their
present location and condition. The valuation of the Inventories are based on FIFO Method.

Finished goods purchased for sale, are carried at cost or net realisable value whichever is lower. Excise
duty, VAT is included in the value of finished goods inventory for Petroleum product (i.e. MS and
HSD) at Petrol Pump for trading purpose, Other than Petroleum products, finished goods are valued at
cost or net realizable value whichever is lower. Obsolete and slow-moving items are valued at cost or
estimated net realisable value whichever is lower.

2.4 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit 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 of financing cash flows. The cash
flows are segregated into operating, investing and financing activities based on the extent of
information available.

Cash and cash equivalents:

Cash and cash equivalents comprise cash in hand, demand deposits with banks/corporations and short¬
term highly liquid investments (original maturity less than 3 months) that are readily convertible into
known amount of cash and are subject to an insignificant risk of change in value.

2.5 Taxation

Income tax expense represents the sum of the current tax and deferred tax.

2.5.1 Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit
before tax’ as reported in the Statement of Profit and Loss because of items of income and expense that
are taxable or deductible in the other years and items that are never taxable or deductible. The
Company’s current tax is calculated using tax rates and laws that have been enacted or substantively
enacted by the end of the reporting period.

2.5.2 Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and

liabilities in the Financial Statements and the corresponding tax bases used in the computation of
taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax
assets are generally recognized for all deductible temporary differences to the extent that is probable
that taxable profit will be available against which those deductible temporary differences can be
utilised. Such deferred tax assets and liabilities are not recognized if the temporary difference arises
from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit
nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced
to the extent that sufficient taxable profits will be available to allow all or part of the deferred tax asset
to be utilised.

Deferred tax liabilities and assets are measured at that are expected to apply in the period in which the
liability is settled or the asset realised, based enacted or substantively enacted by the end of the
reporting period.

The measurement of the deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the Company expects, at the end of the reporting period, to recover or
settle the carrying amount of its assets and liabilities.

2.5.3 Current and deferred tax for the year

Current and deferred tax expense is recognized in the Statement of Profit and Loss, except when they
relate to the items that are recognized in other comprehensive income or directly in equity, in which
case, the current and deferred tax are also recognized in other comprehensive income or directly in
equity respectively.

2.6 Property, Plant and Equipment (Including capital work in progress)

Property, plant and equipment are carried at historical cost less accumulated depreciation and
impairment losses, if any. The cost of property, plant and equipment comprises the purchase price net of
any trade discounts and rebates, any import duties and other taxes (other than those subsequently
recoverable) and includes interest on borrowings attributable to acquisition of qualifying property, plant
and equipment to the date the asset is ready for its intended use and other incidental expenses incurred
up to that date. Subsequent expenditure relating to property, plant and equipment’s is capitalised only if
such expenditure results in an increase in the future benefits from such asset beyond its previously
assessed standard of performance.

Property, Plant and Equipment acquired and put to use for project purpose are capitalised and
deprecation thereon is included in the project cost till the project is ready for its intended use.

Any part or components of property, plant and equipment which are separated identifiable and expected
to have a useful life which are different from that of the main assets are capitalised separated, based on
the technical assessment of the management.

Property, plant and equipment retired from active use and held for sale are stated at the lower of their
net book value and net realisable value and are disclosed separately.

Capital Work In Progress

Capital work in progress represents projects under the property, plant and equipment’s are not intended
use and are carried at cost determined as aforesaid.

Projects under which assets are not ready for their intended use and other capital work-in-progress are
carried at cost, comprising direct cost, related incidental expenses and attributable interest.

2.6.1 Depreciation

Depreciation is provided for property, plant and equipment so as to expense the cost over their
estimated useful lives based on technical evaluation. The estimated useful lives are reviewed at the end
of each reporting period, with the effect of any change in estimate accounted for on a prospective basis.
In respect of Assets costing less than Rs 5,000/- the rate of depreciation is taken as 100%. Depreciation
is computed pro-rata with reference to the number of months of use during the year.

Residual Value of the depreciated assets are taken as Nil.

The estimated useful lives are as mentioned below''

2.7 Investment properties:

Investment properties comprise portion of freehold land and office buildings that are held for long- term
rental yields and /or for capital appreciation. Investment properties are initially recognized at cost.
Subsequently investment property comprising of buildings is carried at cost less accumulated
depreciation and accumulated impairment losses, if any.

The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if
the recognition criteria are met. When significant parts of the investment property are required to be
replaced at intervals, the Company depreciates them separately based on their specified useful lives. All
other repair and maintenance costs are recognized in profit and loss as incurred.

Depreciation on building is provided over the estimated useful lives as specified in Schedule II to the
Companies Act, 2013. The useful lives and depreciation method of investments properties are reviewed,
and adjusted on prospective basis as appropriate, at each balance sheet date. The effects of any revision
are included in the statements of profit and loss when the changes arise.

Investment properties are derecognized when either they have been disposed of or when the investment
property is permanently withdrawn from use no future economic benefit is expected economic benefit is
expected from its disposal.

The difference between the net disposal proceeds and the carrying amount of the asset is recognized in
the statements of profit and loss in the period of de-recognition.

2.8 Impairment of non-financial assets:

The Company assesses whether there is an indication that an asset may be impaired and also whether
there is an indication of reversal of impairment loss recognized in the previous periods. If any indication
exists, or when annual impairment testing for an asset is required, if any, the company determines the
recoverable amount and impairment loss is recognized when the carrying amount of an asset exceeds its
recoverable amount.

Recoverable amount is determined:

In the case of an individual assets, at the higher of the fair value less cost to sell and the value in use;
and

In the case of cash generating unit (a company of assets that generates identified, independent cash
flows), at the higher of the cash generating unit’s fair value less cost to sell and the value in use.

In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken
into account. If no such transaction can be identified, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples, quoted share price for publicity traded companies
or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are
prepared separately for each of the company’s CGUs to which the individual assets are allocated. These
budget and forecast calculation generally cover a period of five years. For longer periods, a long-term
growth rate is calculated and applied to project future cash flows after the fifth year.

Impairment losses of continuing operations, including impairment on inventories, are recognized in the
statement of profit and loss, except for properties previously revalued with the revaluation taken to
other Comprehensive income (the ‘OCI’), if any. For such properties, the impairment is recognized in
OCI to the amount of any previous revaluation.

2.9 Intangible assets

Intangible assets are recognized when it is probable that the future economic benefits that are
attributable to the assets will flow to the company and the cost of the asset can be measured reliably.

The intangible assets are recorded at cost and amortized on straight line basis over the estimated useful

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2.10 Amortisation

Intangible assets are amortized over the estimated useful life of 3 years on straight line method.

Intangible assets with indefinite useful lives, if any are not amortised, but are tested for impairment
annually, either individually or at the cash-generating unit level. The assessment of indefinite life is
reviewed annually to determine whether the indefinite life continues to be supportable. If not, the
change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from de-recognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognized in the
statement of profit and loss when the asset is derecognized.

2.11 Revenue recognition

Revenue from contracts with customers

The Company derives revenues primarily from Transportation of Goods, sale of Automobile parts &
Lubricants and HSD-BSVI, Wind Power, Supply of Man Power, Renting of Immovable property and
Petrol Pump operation.

Ind AS 115 “Revenue from Contracts with Customers” provides a control-based revenue recognition
model and provides a five-step application approach to be followed for revenue recognition.

• Identify the contract(s) with a customer;

• Identify the performance obligations;

• Determine the transaction price;

• Allocate the transaction price to the performance obligations;

• Recognize revenue when or as an entity satisfies performance obligation.

Revenue from contracts with customers is recognized when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Company expects
to be entitled in exchange for those goods or services. Revenue excludes amounts collected on behalf of
third parties.

Sale of Goods/Services

Revenue is recognized to the extent it is probable that the economic benefits will flow to the company
and that the revenue can be reliably measured, regardless of when the payment is being made. Revenue
is measured at the fair value of consideration received or receivable, taking into account contractually
defined terms of payment and excluding taxes or duties collected on behalf of the government. The
Company assesses its revenue arrangements against specific criteria, i.e., whether it has exposure to the
significant risks and rewards associated with the sale of goods or the rendering of services, in order to
determine if it is acting as a principal or as an agent. Revenue is recognized, net of trade discounts, sales
tax, GST or other taxes, as applicable.

Revenue from goods transport services is recognized when goods are delivered to the customers/near
transshipment points.

Rent income is recognized on straight line basis over the period of agreement.

Power distribution

Revenue from power distribution business is recognized upon deposit of units of generated power at the
grid of the purchasing customer and billing to the customers and includes unbilled revenues accrued up
to the end of the accounting year. Customers are billed as per the tariff rates issued by electricity
regulatory commission. Interest is accounted on accrual basis on overdue bills.

Interest income

For all financial assets measured either at amortized cost or at fair value through other comprehensive
income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly
discounts the estimated future cash payments or receipts over the expected life of the financial
instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or
to the amortized cost of a financial liability. When calculating the effective interest rate, the company
estimates the expected cash flows by considering all the contractual terms of the financial instrument.
Interest income is included in other income in the statement of profit and loss.

Other Income

Dividend Income from investments is recognized when the shareholder’s right to receive payment is
established, which is generally when shareholders approve the dividend.

Insurance claims are accounted for on the basis of claims admitted/expected to be admitted and to the
extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate
collection.

2.12 Employee Benefits

Employee benefits are accrued in the period in which the associated services are rendered by the
employees of the Company, as detailed below:

Defined contribution plans

The Company’s contribution to State Governed provided fund scheme, Employee State Insurance
scheme and Employee pension scheme are considered as defined contribution plans and expenses are
recognized in the Statement of Profit and Loss based on the amount of contribution required to be made
and when services are rendered by the employees.

Defined benefit plans

The cost of the defined benefit plans and the present value of the defined benefit obligation are based on
actuarial valuation using the projected unit credit method. An actuarial valuation involves making
various assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future salary increases and morality and its long-term nature, a
defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
reviewed at each reporting date.

The Company accrues for liability towards Gratuity which is a defined benefit plan. The present value
of obligation under such defined benefit plan is determined based on actuarial valuation as the balance
sheet date, using the Projected Unit Credit Method. Remeasurement, comprising actuarial gains and
losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets
(excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognized
in other comprehensive income in the period in which they occur. Remeasurement recognized in other
comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or
loss. Past service cost is recognized in profit or loss in the period of a plan amendment. Net interest is
calculated by applying the discount rate at the beginning of the period to the net defined benefit liability
or asset. Defined benefit costs are categorized as follows:

• Service cost (including current service cost, past service cost, as well as gains and losses on
curtailments and settlements);

• Net interest expense or income; and

• Re measurement

The Company presents the first two components of defined benefit costs in profit or loss in the line item
‘Employee benefits expense’. Curtailment gains and losses are accounted for as past service costs.

The retirement benefit obligation recognized in the balance sheet represents the actual deficit or surplus
in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the
present value of any economic benefits available in the form of refunds from the plans or reductions in
future contributions to the plans.

Compensated absences

Compensated absences which are not expected to occur within twelve months after the end of the period
in which the employee renders the related services are recognized as an actuarially determined liability
at the present value of the obligation at the Balance sheet date.

2.14 Lease
As a Lessee

Right of use Asset

The Company recognises a right-of-use asset and a lease liability at the lease commencement
date. At the commencement date, a lessee shall measure the right-of-use asset at cost which
comprises initial measurement of the lease liability, any lease payments made at or before the
commencement date, less any lease incentives received, any initial direct costs incurred by the
lessee; and an estimate of costs to be incurred by the lessee in dismantling and removing the
underlying asset, restoring the site on which it is located or restoring the underlying asset to the
condition required by the terms and conditions of the lease.

Lease Liability

At the commencement date, a lessee shall measure the lease liability at the present value of the
lease payments that are not paid at that date. The lease payments shall be discounted using the
interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be
readily determined, the lessee shall use the lessee’s incremental borrowing rate.

Short-term lease and leases of low-value assets

The Company has elected not to recognise right-of-use assets and lease liabilities for short- term
leases that have a lease term of less than 12 months or less and leases of low-value assets,
including IT Equipment. The Company recognises the lease payments associated with these
leases as an expense on a straight-line basis over the lease term.

The election for short-term leases shall be made by class of underlying asset to which the right
of use relates. A class of underlying asset is a grouping of underlying assets of a similar nature
and use in Company’s operations. The election for leases for which the underlying asset is of
low value can be made on a lease-by-lease basis.

As a lessor

Leases in which the company does not transfer substantially all the risks and reward of ownership of
assets are classified as operating lease. Rental income from operating lease is recognised on a straight¬
line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an
operating lease are added to the carrying amount of the leased asset and recognised over the lease term
on the same basis as rental income. Contingents rent are recognised as revenue in the period in which
they are earned.

2.15 Foreign Currency transactions:

The functional currency of the Company is Indian Rupees which represents the currency of the primary
economic environment in which it operates.

“In preparing the financial statements, transactions in currencies other than the entity’s functional
currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date. Non-monetary items are carried at fair value that are
denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value
was determined.

2.16 Borrowing costs:

a) Borrowing costs that are attributable to the acquisition, construction, or production of a qualifying
asset are capitalized as a part of the cost such asset till such time the asset is ready for its intended use or
sale. A qualifying asset is an asset that necessarily requires a substantial period of time (generally over
twelve months) to get ready for its intended use or sale.

b) All other borrowing costs are recognized as expenses in the period in which they are incurred.

2.17 Financial instruments

Financial assets and financial liabilities are recognized when a Company entity becomes a party to the
contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are
recognized immediately in profit or loss.

2.17.1 Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.
Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within
the time frame established by regulation or convention in the marketplace.

All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value,
depending on the classification of the financial assets.

Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortized cost:

• The asset is held within a business model whose objective is to hold assets in order to collect contractual cash
flows; and

• The contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

For the impairment policy on financial assets measured at amortised cost, refer para of Impairment of financial
assets.

Debt instruments that meet the following conditions are subsequently measured at fair value through other
comprehensive income:

• The asset is held within a business model whose objective is achieved both by collecting Contractual cash
flows and selling financial assets; and

• the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

Interest income is recognized in profit or loss for FVTOCI debt instruments. For the purposes of recognizing
foreign exchange gains and losses, FVTOCI debt instruments are treated as financial assets measured at
amortized cost. Thus, the exchange differences on the amortized cost are recognized in profit or loss and other
changes in the fair value of FVTOCI financial assets are recognized in other comprehensive income and
accumulated under the heading of ''Reserve for debt instruments through other comprehensive income''. When
the investment is disposed of, the cumulative gain or loss previously accumulated in this reserve is reclassified
to profit or loss.

For the impairment policy on debt instruments at FVTOCI, refer Para of Impairment of financial assets. All other
financial assets are subsequently measured at fair value.

Effective interest method

The effective interest method is a method of calculating the amortized cost of a debt instrument and of
allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts
estimated future cash receipts (including all fees and points paid or received that form an integral part of the
effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Income is recognized on an effective interest basis for debt instruments other than those financial assets
classified as at FVTPL. Interest income is recognized in profit or loss and is included in the "Other income" line
item.

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

Debt instruments that do not meet the amortised cost criteria or FVTOCI criteria (see above) are measured at
FVTPL. In addition, debt instruments that meet the amortised cost criteria or the FVTOCI criteria but are
designated as at FVTPL are measured at FVTPL.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses
arising on Remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss
incorporates any dividend or interest earned on the financial asset and is included in the ''Other income'' line
item. Dividend on financial assets at FVTPL is recognised when the Company''s right to receive the dividends is
established, it is probable that the economic benefits associated with the dividend will flow to the entity, the
dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be
measured reliably.

Impairment of financial assets

The Company applies the expected credit loss model for recognizing impairment loss on financial assets
measured at amortized cost, debt instruments at FVTOCI, lease receivables, trade receivables, other contractual
rights to receive cash or other financial asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as
the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls),
discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or
originated credit-impaired financial assets). The Company estimates cash flows by considering all contractual
terms of the financial instrument (for example, prepayment, extension, call and similar options) through the
expected life of that financial instrument.

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime
expected credit losses if the credit risk on that financial instrument has increased significantly since initial
recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition,
the Company measures the loss allowance for that financial instrument at an amount equal to 12-month
expected credit losses. 12-month expected credit losses are portion of the life-time expected credit losses and
represent the lifetime cash shortfalls that will result if default occurs within the 12 months after the reporting
date and thus, are not cash shortfalls that are predicted over the next 12 months.

If the Company measured loss allowance for a financial instrument at lifetime expected credit loss model in the
previous period, but determines at the end of a reporting period that the credit risk has not increased
significantly since initial recognition due to improvement in credit quality as compared to the previous period,
the Company again measures the loss allowance based on 12-month expected credit losses.

When making the assessment of whether there has been a significant increase in credit risk since initial
recognition, the Company uses the change in the risk of a default occurring over the expected life of the
financial instrument instead of the change in the amount of expected credit losses. To make that assessment,
the Company compares the risk of a default occurring on the financial instrument as at the reporting date with
the risk of a default occurring on the financial instrument as at the date of initial recognition and considers
reasonable and supportable information, that is available without undue cost or effort, that is indicative of
significant increases in credit risk since initial recognition.

For trade receivables or any contractual right to receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 11 and Ind AS 18, the Company always measures the loss
allowance at an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the
Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is
computed based on a provision matrix which takes into account historical credit loss experience and adjusted
for forward-looking information.

The impairment requirements for the recognition and measurement of a loss allowance are equally applied to
debt instruments at FVTOCI except that the loss allowance is recognized in other comprehensive income and is
not reduced from the carrying amount in the balance sheet.

Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to
another party.

On derecognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the
sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in
other comprehensive income and accumulated in equity is recognized in profit or loss if such gain or loss would
have otherwise been recognized in profit or loss on disposal of that financial asset.

On derecognition of a financial asset other than in its entirety (e.g. when the Company retains an option to
repurchase part of a transferred asset), the Company allocates the previous carrying amount of the financial
asset between the part it continues to recognize under continuing involvement, and the part it no longer
recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference
between the carrying amount allocated to the part that is no longer recognized and the sum of the
consideration received for the part no longer recognized and any cumulative gain or loss allocated to it that had
been recognized in other comprehensive income is recognized in profit or loss if such gain or loss would have
otherwise been recognized in profit or loss on disposal of that financial asset. A cumulative gain or loss that had
been recognized in other comprehensive income is allocated between the part that continues to be recognized
and the part that is no longer recognized on the basis of the relative fair values of those parts.

2.17.2 Financial liabilities

All financial liabilities are subsequently measured at amortized cost using the effective interest method
or at FVTPL.

However, financial liabilities that arise when a transfer of a financial asset does not qualify for
derecognition or when the continuing involvement approach applies, financial guarantee contracts
issued by the Company, and commitments issued by the Company to provide a loan at below-market
interest rate are measured in accordance with the specific accounting policies set out below.

Financial liabilities subsequently measured at amortized cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at
amortized cost at the end of subsequent accounting periods. The carrying amounts of financial liabilities
that are subsequently measured at amortized cost are determined based on the effective interest method.
Interest expense that is not capitalized as part of costs of an asset is included in the ''Finance costs'' line
item.

The effective interest method is a method of calculating the amortized cost of a financial liability and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts) through the
expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying
amount on initial recognition.

Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in
accordance with the terms of a debt instrument.

Financial guarantee contracts issued by a Company entity are initially measured at their fair values and,
if not designated as at FVTPL, are subsequently measured at the higher of:

• The amount of loss allowance determined in accordance with impairment requirements of Ind AS
109; and

• The amount initially recognized less, when appropriate, the cumulative amount of income recognized
in accordance with the principles of Ind AS 18.

Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company’s obligations are
discharged, cancelled or have expired. An exchange between with a lender of debt instruments with
substantially different terms is accounted for as an extinguishment of the original financial liability and
the recognition of a new financial liability. Similarly, a substantial modification of the terms of an
existing financial liability (whether or not attributable to the financial difficulty of the debtor) is
accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability. The difference between the carrying amount of the financial liability derecognized
and the consideration paid and payable is recognized in profit or loss.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement
recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any interest
paid on the financial liability and is included in the ''Other income'' line item.

2.18 Earnings per share

Basic earnings per share are computed by dividing the net profit after tax by weighted average number of
equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after
tax by weighted average number of shares outstanding during the period are adjusted for the effects of all
dilutive potential equity shares, if any

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Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES:

2.1 Statements of compliance

The Financial Statements have been prepared in accordance with Indian Accounting Standards (IND AS) as prescribed
under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 and
Companies (Indian Accounting Standards) (Amendment) Rules, 2016 and relevant provisions of the Companies Act,
2013. The Financial Statements comply with IND AS notified by Ministry of Company Affairs ("MCA"). The Company
has consistently applied the accounting policies used in the preparation for all periods presented.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policies hitherto in use.

As the quarter and year figures are taken from the source and rounded to the nearest digit, the figures reported for
the previous quarter might not always added up to the yearend figure reported in this statement.

2.2 BASIS OF PREPARATION AND PRESENTATION

These financial statements have been prepared on the historical cost basis, except for certain financial instruments
which are measured at fair values at the end of each reporting period, as explained in accounting policies below.

Historical cost is generally based on the fair value of the consideration given in the exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique .In estimating the fair values of an asset or a liability, the Company takes
into account the characteristics of the asset or liability if market participants would take those characteristics into
account when pricing the asset or liability at the measurement date. The principal or the most advantageous market
must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that
market participants would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in highest and best use.

When measuring the fair value of an asset or liability, the Company uses observable market data as far as possible. if
the inputs used to measure the fair value of an asset or liability fall into different levels of the fair value hierarchy,
then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest
level input that is significant to the entire measurement. For assets and liabilities that are recognized in balance sheet

on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by
re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting period.

Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis,
except for leasing transactions that are within the scope of Ind AS 17, and measurements that have some
similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis
of nature, characteristics and risks of asset or liability and the level of the fair value hierarchy as explained above.

The principal accounting policies are set out below:

2.3 Inventories

Inventories comprise all cost of purchase, and other costs incurred in bringing the inventories to their present
location and condition. The valuation of the Inventories are based on FIFO Method.

Finished goods purchased for sale, are carried at cost or net realisable value whichever is lower. Excise duty, VAT is
included in the value of finished goods inventory for Petroleum product (i.e. MS and HSD) at Petrol Pump for trading
purpose, Other than Petroleum products, finished goods are valued at cost or net realizable value whichever is
lower. Obsolete and slow-moving items are valued at cost or estimated net realisable value whichever is lower.

2.4 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit 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 of financing cash flows. The cash flows are segregated
into operating, investing and financing activities based on the extent of information available.

Cash and cash equivalents:

Cash and cash equivalents comprise cash in hand, demand deposits with banks/corporations and short-term highly
liquid investments (original maturity less than 3 months) that are readily convertible into known amount of cash
and are subject to an insignificant risk of change in value.

2.5 Taxation

Income tax expense represents the sum of the current tax and deferred tax.

2.5.1 Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as
reported in the Statement of Profit and Loss because of items of income and expense that are taxable or deductible
in the other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax
rates and laws that have been enacted or substantively enacted by the end of the reporting period.

2.5.2 Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the
Financial Statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are
generally recognized for all deductible temporary differences to the extent that is probable that taxable profit will
be available against which those deductible temporary differences can be utilised. Such deferred tax assets and
liabilities are not recognized if the temporary difference arises from the initial recognition of assets and liabilities in
a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilised.

Deferred tax liabilities and assets are measured at that are expected to apply in the period in which the liability is
settled or the asset realised, based enacted or substantively enacted by the end of the reporting period.

The measurement of the deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount
of its assets and liabilities.

2.5.3 Current and deferred tax for the year

Current and deferred tax expense is recognized in the Statement of Profit and Loss, except when they relate to the
items that are recognized in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognized in other comprehensive income or directly in equity respectively.

2.6 Property, Plant and Equipment (Including capital work in progress)

Property, plant and equipment are carried at historical cost less accumulated depreciation and impairment losses, if
any. The cost of property, plant and equipment comprises the purchase price net of any trade discounts and
rebates, any import duties and other taxes (other than those subsequently recoverable) and includes interest on
borrowings attributable to acquisition of qualifying property, plant and equipment to the date the asset is ready for
its intended use and other incidental expenses incurred up to that date. Subsequent expenditure relating to
property, plant and equipment''s is capitalised only if such expenditure results in an increase in the future benefits
from such asset beyond its previously assessed standard of performance.

Property, Plant and Equipment acquired and put to use for project purpose are capitalised and deprecation thereon
is included in the project cost till the project is ready for its intended use.

Any part or components of property, plant and equipment which are separated identifiable and expected to have a
useful life which are different from that of the main assets are capitalised separated, based on the technical
assessment of the management.

Property, plant and equipment retired from active use and held for sale are stated at the lower of their net book
value and net realisable value and are disclosed separately.

Capital Work In Progress

Capital work in progress represents projects under the property, plant and equipment''s are not intended use and
are carried at cost determined as aforesaid.

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at
cost, comprising direct cost, related incidental expenses and attributable interest.

2.6.1 Depreciation

Depreciation is provided for property, plant and equipment so as to expense the cost over their estimated useful
lives based on technical evaluation. The estimated useful lives are reviewed at the end of each reporting period,
with the effect of any change in estimate accounted for on a prospective basis.

2.7 Investment properties:

Investment properties comprise portion of freehold land and office buildings that are held for long- term rental yields
and /or for capital appreciation. Investment properties are initially recognized at cost. Subsequently investment
property comprising of buildings is carried at cost less accumulated depreciation and accumulated impairment losses,
if any.

The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition
criteria are met. When significant parts of the investment property are required to be replaced at intervals, the
Company depreciates them separately based on their specified useful lives. All other repair and maintenance costs
are recognized in profit and loss as incurred.

Depreciation on building is provided over the estimated useful lives as specified in Schedule II to the Companies Act,
2013. The useful lives and depreciation method of investments properties are reviewed, and adjusted on prospective
basis as appropriate, at each balance sheet date. The effects of any revision are included in the statements of profit
and loss when the changes arise.

Investment properties are derecognized when either they have been disposed of or when the investment property is
permanently withdrawn from use no future economic benefit is expected economic benefit is expected from its
disposal.

The difference between the net disposal proceeds and the carrying amount of the asset is recognized in the
statements of profit and loss in the period of de-recognition.

2.8 Impairment of non-financial assets:

The Company assesses whether there is an indication that an asset may be impaired and also whether there is an
indication of reversal of impairment loss recognized in the previous periods. If any indication exists, or when annual
impairment testing for an asset is required, if any, the company determines the recoverable amount and impairment
loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

Recoverable amount is determined:

In the case of an individual assets, at the higher of the fair value less cost to sell and the value in use; and

In the case of cash generating unit (a company of assets that generates identified, independent cash flows), at the
higher of the cash generating unit''s fair value less cost to sell and the value in use.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
In determining fair value less costs of disposal, recent market transactions are taken into account. If no such
transaction can be identified, an appropriate valuation model is used. These calculations are corroborated by
valuation multiples, quoted share price for publicity traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared
separately for each of the company''s CGUs to which the individual assets are allocated. These budget and forecast
calculation generally cover a period of five years. For longer periods, a long-term growth rate is calculated and applied
to project future cash flows after the fifth year.

Impairment losses of continuing operations, including impairment on inventories, are recognized in the statement of
profit and loss, except for properties previously revalued with the revaluation taken to other Comprehensive income
(the ''OCI''), if any. For such properties, the impairment is recognized in OCI to the amount of any previous revaluation.

2.9 Intangible assets

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the
assets will flow to the company and the cost of the asset can be measured reliably.

2.10 Amortisation

Intangible assets are amortized over the estimated useful life of 3 years on straight line method.

Intangible assets with indefinite useful lives, if any are not amortised, but are tested for impairment annually, either
individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine
whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is
made on a prospective basis.

Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when
the asset is derecognized.

2.11 Revenue recognition

Revenue from contracts with customers

The Company derives revenues primarily from Transportation of Goods, sale of Automobile parts & Lubricants and
HSD-BSVI, Wind Power, Supply of Man Power and Renting of Immovable property.

Ind AS 115 "Revenue from Contracts with Customers" provides a control-based revenue recognition model and

provides a five-step application approach to be followed for revenue recognition.

• Identify the contract(s) with a customer;

• Identify the performance obligations;

• Determine the transaction price;

• Allocate the transaction price to the performance obligations;

• Recognize revenue when or as an entity satisfies performance obligation.

Revenue from contracts with customers is recognized when control of the goods or services are transferred to the
customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
those goods or services. Revenue excludes amounts collected on behalf of third parties.

Sale of Goods/Services

Revenue is recognized to the extent it is probable that the economic benefits will flow to the company and that the
revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair
value of consideration received or receivable, taking into account contractually defined terms of payment and
excluding taxes or duties collected on behalf of the government. The Company assesses its revenue arrangements
against specific criteria, i.e., whether it has exposure to the significant risks and rewards associated with the sale of
goods or the rendering of services, in order to determine if it is acting as a principal or as an agent. Revenue is
recognized, net of trade discounts, sales tax, GST or other taxes, as applicable.

Revenue from goods transport services is recognized when goods are delivered to the customers/near transshipment
points.

Rent income is recognized on straight line basis over the period of agreement.

Power distribution

Revenue from power distribution business is recognized upon deposit of units of generated power at the grid of the
purchasing customer and billing to the customers and includes unbilled revenues accrued up to the end of the
accounting year. Customers are billed as per the tariff rates issued by electricity regulatory commission. Interest is
accounted on accrual basis on overdue bills.

Interest income

For all financial assets measured either at amortized cost or at fair value through other comprehensive income,
interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated
future cash payments or receipts over the expected life of the financial instrument or a shorter period, where

appropriate, to the gross carrying amount of the financial asset or to the amortized cost of a financial liability. When
calculating the effective interest rate, the company estimates the expected cash flows by considering all the
contractual terms of the financial instrument. Interest income is included in other income in the statement of profit
and loss.

Other Income

Dividend Income from investments is recognized when the shareholder''s right to receive payment is established,
which is generally when shareholders approve the dividend.

Insurance claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent that
the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

2.12 Employee Benefits

Employee benefits are accrued in the period in which the associated services are rendered by the employees of the
Company, as detailed below:

Defined contribution plans

The Company''s contribution to State Governed provided fund scheme, Employee State Insurance scheme and
Employee pension scheme are considered as defined contribution plans and expenses are recognized in the
Statement of Profit and Loss based on the amount of contribution required to be made and when services are
rendered by the employees.

Defined benefit plans

The cost of the defined benefit plans and the present value of the defined benefit obligation are based on actuarial
valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that
may differ from actual developments in the future. These include the determination of the discount rate, future salary
increases and morality and its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.

The Company accrues for liability towards Gratuity which is a defined benefit plan. The present value of obligation
under such defined benefit plan is determined based on actuarial valuation as the balance sheet date, using the
Projected Unit Credit Method. Remeasurement, comprising actuarial gains and losses, the effect of the changes to
the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the
balance sheet with a charge or credit recognized in other comprehensive income in the period in which they occur.
Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and is not
reclassified to profit or loss. Past service cost is recognized in profit or loss in the period of a plan amendment. Net
interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability
or asset. Defined benefit costs are categorized as follows:

• Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and
settlements);

• Net interest expense or income; and

• Re measurement

The Company presents the first two components of defined benefit costs in profit or loss in the line item ''Employee
benefits expense''. Curtailment gains and losses are accounted for as past service costs.

The retirement benefit obligation recognized in the balance sheet represents the actual deficit or surplus in the
Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any
economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

Compensated absences

Compensated absences which are not expected to occur within twelve months after the end of the period in which
the employee renders the related services are recognized as an actuarially determined liability at the present value
of the obligation at the Balance sheet date.

2.14 Lease
As a Lessee

Right of use Asset

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. At the
commencement date, a lessee shall measure the right-of-use asset at cost which comprises initial
measurement of the lease liability, any lease payments made at or before the commencement date, less any
lease incentives received, any initial direct costs incurred by the lessee; and an estimate of costs to be incurred
by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or
restoring the underlying asset to the condition required by the terms and conditions of the lease.

Lease Liability

At the commencement date, a lessee shall measure the lease liability at the present value of the lease
payments that are not paid at that date. The lease payments shall be discounted using the interest rate
implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the
lessee shall use the lessee''s incremental borrowing rate.

Short-term lease and leases of low-value assets

The Company has elected not to recognise right-of-use assets and lease liabilities for short- term leases that
have a lease term of less than 12 months or less and leases of low-value assets, including IT Equipment. The
Company recognises the lease payments associated with these leases as an expense on a straight-line basis
over the lease term.

The election for short-term leases shall be made by class of underlying asset to which the right of use relates.
A class of underlying asset is a grouping of underlying assets of a similar nature and use in Company''s
operations. The election for leases for which the underlying asset is of low value can be made on a lease-by¬
lease basis.

As a lessor

Leases in which the company does not transfer substantially all the risks and reward of ownership of assets are
classified as operating lease. Rental income from operating lease is recognised on a straight-line basis over the term
of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the
carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.
Contingents rent are recognised as revenue in the period in which they are earned.

2.15 Foreign Currency transactions:

The functional currency of the Company is Indian Rupees which represents the currency of the primary economic
environment in which it operates.

"In preparing the financial statements, transactions in currencies other than the entity''s functional currency (foreign
currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each
reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that
date. Non-monetary items are carried at fair value that are denominated in foreign currencies are retranslated at the
rates prevailing at the date when the fair value was determined.

2.16 Borrowing costs:

a) Borrowing costs that are attributable to the acquisition, construction, or production of a qualifying asset are
capitalized as a part of the cost such asset till such time the asset is ready for its intended use or sale. A qualifying
asset is an asset that necessarily requires a substantial period of time (generally over twelve months) to get ready for
its intended use or sale.

b) All other borrowing costs are recognized as expenses in the period in which they are incurred.

2.17 Financial instruments

Financial assets and financial liabilities are recognized when a Company entity becomes a party to the contractual
provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in
profit or loss.

2.17.1 Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular
way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame
established by regulation or convention in the marketplace.

All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value,
depending on the classification of the financial assets.

Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortized cost:

• The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows;
and

• The contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

For the impairment policy on financial assets measured at amortised cost, refer para of Impairment of financial assets.

Debt instruments that meet the following conditions are subsequently measured at fair value through other
comprehensive income:

• The asset is held within a business model whose objective is achieved both by collecting Contractual cash flows and
selling financial assets; and

• the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

Interest income is recognized in profit or loss for FVTOCI debt instruments. For the purposes of recognizing foreign
exchange gains and losses, FVTOCI debt instruments are treated as financial assets measured at amortized cost. Thus,
the exchange differences on the amortized cost are recognized in profit or loss and other changes in the fair value of
FVTOCI financial assets are recognized in other comprehensive income and accumulated under the heading of
''Reserve for debt instruments through other comprehensive income''. When the investment is disposed of, the
cumulative gain or loss previously accumulated in this reserve is reclassified to profit or loss.

For the impairment policy on debt instruments at FVTOCI, refer Para of Impairment of financial assets. All other
financial assets are subsequently measured at fair value.

Effective interest method

The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating
interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future
cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where
appropriate, a shorter period, to the net carrying amount on initial recognition.

Income is recognized on an effective interest basis for debt instruments other than those financial assets classified as
at FVTPL. Interest income is recognized in profit or loss and is included in the "Other income" line item.

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

Debt instruments that do not meet the amortised cost criteria or FVTOCI criteria (see above) are measured at FVTPL.
In addition, debt instruments that meet the amortised cost criteria or the FVTOCI criteria but are designated as at
FVTPL are measured at FVTPL.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses
arising on Remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates
any dividend or interest earned on the financial asset and is included in the ''Other income'' line item. Dividend on
financial assets at FVTPL is recognised when the Company''s right to receive the dividends is established, it is probable
that the economic benefits associated with the dividend will flow to the entity, the dividend does not represent a
recovery of part of cost of the investment and the amount of dividend can be measured reliably.

Impairment of financial assets

The Company applies the expected credit loss model for recognizing impairment loss on financial assets measured at
amortized cost, debt instruments at FVTOCI, lease receivables, trade receivables, other contractual rights to receive
cash or other financial asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the
weights. Credit loss is the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at
the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-
impaired financial assets). The Company estimates cash flows by considering all contractual terms of the financial
instrument (for example, prepayment, extension, call and similar options) through the expected life of that financial
instrument.

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected
credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the
credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures
the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. 12-month
expected credit losses are portion of the life-time expected credit losses and represent the lifetime cash shortfalls
that will result if default occurs within the 12 months after the reporting date and thus, are not cash shortfalls that
are predicted over the next 12 months.

If the Company measured loss allowance for a financial instrument at lifetime expected credit loss model in the
previous period, but determines at the end of a reporting period that the credit risk has not increased significantly
since initial recognition due to improvement in credit quality as compared to the previous period, the Company again
measures the loss allowance based on 12-month expected credit losses.

When making the assessment of whether there has been a significant increase in credit risk since initial recognition,
the Company uses the change in the risk of a default occurring over the expected life of the financial instrument
instead of the change in the amount of expected credit losses. To make that assessment, the Company compares the
risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on
the financial instrument as at the date of initial recognition and considers reasonable and supportable information,
that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial
recognition.

For trade receivables or any contractual right to receive cash or another financial asset that result from transactions
that are within the scope of Ind AS 11 and Ind AS 18, the Company always measures the loss allowance at an amount
equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has
used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on
a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking
information.

The impairment requirements for the recognition and measurement of a loss allowance are equally applied to debt
instruments at FVTOCI except that the loss allowance is recognized in other comprehensive income and is not reduced
from the carrying amount in the balance sheet.

Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
party.

On derecognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum
of the consideration received and receivable and the cumulative gain or loss that had been recognized in other
comprehensive income and accumulated in equity is recognized in profit or loss if such gain or loss would have
otherwise been recognized in profit or loss on disposal of that financial asset.

On derecognition of a financial asset other than in its entirety (e.g. when the Company retains an option to repurchase
part of a transferred asset), the Company allocates the previous carrying amount of the financial asset between the
part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the
relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated
to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized
and any cumulative gain or loss allocated to it that had been recognized in other comprehensive income is recognized
in profit or loss if such gain or loss would have otherwise been recognized in profit or loss on disposal of that financial
asset. A cumulative gain or loss that had been recognized in other comprehensive income is allocated between the
part that continues to be recognized and the part that is no longer recognized on the basis of the relative fair values
of those parts.

2.17.2 Financial liabilities

All financial liabilities are subsequently measured at amortized cost using the effective interest method or at FVTPL.
However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when
the continuing involvement approach applies, financial guarantee contracts issued by the Company, and
commitments issued by the Company to provide a loan at below-market interest rate are measured in accordance
with the specific accounting policies set out below.

Financial liabilities subsequently measured at amortized cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortized cost
at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently
measured at amortized cost are determined based on the effective interest method. Interest expense that is not
capitalized as part of costs of an asset is included in the ''Finance costs'' line item.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating
interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash payments (including all fees and points paid or received that form an integral part of the effective interest
rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where
appropriate) a shorter period, to the net carrying amount on initial recognition.

Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the
holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms
of a debt instrument.

Financial guarantee contracts issued by a Company entity are initially measured at their fair values and, if not
designated as at FVTPL, are subsequently measured at the higher of:

• The amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and

• The amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance
with the principles of Ind AS 18.

Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company''s obligations are discharged,
cancelled or have expired. An exchange between with a lender of debt instruments with substantially different terms
is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.
Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the
financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the
recognition of a new financial liability. The difference between the carrying amount of the financial liability
derecognized and the consideration paid and payable is recognized in profit or loss.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognized in
profit or loss. The net gain or loss recognized in profit or loss incorporates any interest paid on the financial liability
and is included in the ''Other income'' line item.

2.18 Earnings per share

Basic earnings per share are computed by dividing the net profit after tax by weighted average number of equity
shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by
weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential
equity shares, if any

---

Mar 31, 2014

1.1 Basis of Preparation of Financial Statements

The company follows accrual method of accounting and the Financial Statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the Relevant Provisions of The Companies Act, 1956.

All assets and liabilities have been classified as current or non - current as per Company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

1.2 Use of Estimate:

The preparation of Financial Statements requires management to make assumptions that may affect reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of financial and the reported amounts of revenues and expense. Actual results could differ from those estimates .Any revisions to accounting estimates are recognized prospectively in current and future projects.

1.3 Inventory Valuation:

(a) Trading Activities:

Inventories are valued at cost or net realizable value whichever is lower. Cost of materials is ascertained on FIFO method.

(b) Provision is made for obsolete, slow-moving and defective stocks, where necessary.

1.4 Fixed Assets and Depreciation:

Tangible Fixed Assets:

(a) Fixed asset are stated at cost of acquisition or construction less accumulated depreciation and impairment losses, if any. The cost of an item of tangible fixed assets comprises its purchase price, including import duties and other non-refundable taxes or levies and any attributable costs of bringing the asset to its working condition for intended use. Any trade discount and rebates are deducted in arriving at the purchase price.

(b) Advance paid towards acquisition of tangible fixed assets outstanding at each Balance Sheet date, are shown under long-term loans and advances and cost of assets not ready for intended use before the year end, are shown as capital work-in-progress. All costs relating to the acquisition and installation of fixed assets are capitalised until the asset is ready for use.

Depreciation on Tangible:

Depreciation is provided on straight line method at the rates provided in Schedule XIV of the Companies Act, 1956 in accordance with the provisions of Section 205 (2) (b) of the Companies Act, 1956. In respect of Assets costing less than Rs. 5,000/- the rate of depreciation is taken as 100%. Depreciation is computed pro-rata with reference to the number of months of use during the year.

Intangible Assets and Amortisation:

Intangible assets including Export benefits under duty exemption passbook are recognised only if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably.

The intangible assets are recorded at cost and amortized on straight line basis over the estimated useful lives as follows:

Intangible Asset Estimated Useful Life (Years)

Softwares 3 years

Loose Tools:

Loose Tools are being written off over a period of 5 years in equal Amounts. Damaged or unserviceable tools are charged to revenue in the same year.

1.5 Impairment of Assets:

An Asset is treated as impaired when carrying cost of assets exceeds its recoverable value. An impairment loss is charged for when the asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. Reversal of impairment loss is recognised as income in the statement of profit & loss.

1.6 Borrowing Cost:

Borrowing costs are interest and other costs (including exchange differences arising from foreign currency borrowings to the extent that they are regarded as adjustment to interest cost) incurred by the company in connection with the borrowing of fund. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as a part of the cost of such asset. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All others borrowing cost are charged to the statement of profit and loss.

1.7 Leases:

Asset taken on lease by the Company in its capacity as lessee, where the Company has substantially assumed all risks and rewards of ownership are classified as finance lease. Such a lease is capitalised at the inception of the lease period at lower of fair value or present value of the minimum lease payments and a liability is recognised for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vests with the lessor, are recognised as operating leases. Lease rentals under operating leases are recognised in the statement of profit and loss on a straight line basis.

1.8 Revenue Recognition:

Revenue is recognized on accrual basis if there is reasonable certainty of its ultimate realization/ collection.

(a) In respect of Transportation operations, revenue is recognised when the related service performed. Revenue in respect of contractual transport business is recognised in proportion to the value of work completed.

(b) In respect of Wind Energy Generation, revenue is recognised on the basis of units generated and billed. Unbilled units are allocated on pro-rata basis based on Billing Cycle.

(c) In respect of Trading Activities, Sales is recognised at the time of dispatch of Goods to customers. The company collects value added taxes (VAT) and excise on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue. Sales stated net of return and trade discount.

(d) In respect of rent Income, revenue is recognised on accrual basis except in case where ultimate collection is considered doubtful.

Other Income

(a) In respect of Interest Income, revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

(b) In respect of Dividend Income, revenue is recognised when the right to receive payments is established.

1.9 Investments:

Current Investments are carried at lower of cost and quoted / fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

1.10 Foreign Currency Transactions:

Transactions in foreign currency are recorded at the exchange rates prevailing on the date of transaction. Foreign Currency Assets and Liabilities are stated at the exchange rates prevailing at the date of balance sheet. Realised gains or losses on foreign exchange transaction are recognised in the statement of profit and loss account.

Premium or discount on forward contracts where there are underlying assets/liabilities are amortised over the life of the contract. Such foreign exchange contracts are revalued at the balance sheet date and the exchange difference between the spot rate at the date of the contract and spot rate on the balance sheet date is recognised as gain/loss in the statement of profit and loss.

1.11 Accounting for employee benefits:

A. Post Retirement Benefits:

(a) Defined Contribution Plan

As per applicable laws the eligible employees of the company are entitled to receive benefits under the provident fund, a defined contribution plan, in which both employees and company make monthly contribution at specified percentage of the covered employee salary. The contributions as specified under the law are paid to the respective provident fund authorities as specified by law as per the scheme framed under the governing laws.

(b) Defined Benefit Plan

The company has not formulated any specific terms of employment providing for specific requirement benefits. However as per applicable laws, the company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees at retirement, death/ disablement while in employment or termination of employment, of an amount equivalent to 15 days salary with reference to the number of completed year of service and last drawn salary. The Company has taken a Group Gratuity Scheme with Life Insurance Corporation of India covering all eligible employees. The liability in respect of Gratuity is recognised in accordance with Project Unit Credit Method.

B. Other Employee Benefits:

Short Term Benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in profit & Loss Account of the year in which related service is rendered.

1.12 Taxes on Income:

(a) Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the income tax act, 1961.

Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting incomes that originate in one period and is capable of reversal in one or more subsequent periods.

(b) Deferred tax is measured based on the tax rate and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against such deferred tax assets can be realised.

1.13 Cash & Cash Equivalents:

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

1.14 Provision:

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

1.15 Contingent Liabilities:

Contingent liabilities exist and are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of company, unless the possibility of an outflow is remote. A present obligation that arises from past events where it is either not probable that an outflow of resources will be required or a reliable estimate of the amount cannot be made is termed as contingent liability.

1.16 Inter-divisional Transfers:

Inter-divisional transfers of goods for internal use as captive consumption are shown as contra items in the Profit & Loss Account to reflect the true economic value of the production inter- se the divisions. This accounting treatment has no impact on the profit of the Company.

---

Mar 31, 2013

1.1 Basis of Preparation of Financial Statements

The company follows accrual method of accounting and the Financial Statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the Relevant Provisions of The Companies Act, 1956.

All assets and liabilities have been classified as current or non - current as per Company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current - noncurrent classification of assets and liabilities.

1.2 Use of Estimate:

The preparation of Financial Statements requires management to make assumptions that may affect reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of financial and the reported amounts of revenues and expense. Actual results could differ from those estimates .Any revisions to accounting estimates are recognized prospectively in current and future projects.

1.3 Inventory Valuation:

(a) Trading Activities:

Inventories are valued at cost or net realizable value whichever is lower. Cost of materials is ascertained on FIFO method.

(b) Manufacturing Activities:

Inventories are valued* as per the following method:

(c) Provision is made for obsolete, slow-moving and defective stocks, where necessary.

1.4 Fixed Assets and Depreciation :

Tangible Fixed Assets :

(a) Fixed asset are stated at cost of acquisition or construction less accumulated depreciation and impairment losses, if any. The cost of an item of tangible fixed assets comprises its purchase price, including import duties and other non-refundable taxes or levies and any attributable costs of bringing the asset to its working condition for intended use. Any trade discount and rebates are deducted in arriving at the purchase price.

(b) Advance paid towards acquisition of tangible fixed assets outstanding at each Balance Sheet date, are shown under long-term loans and advances and cost of assets not ready for intended use before the year end, are shown as capital work-in-progress. All costs relating to the acquisition and installation of fixed assets are capitalised until the asset is ready for use.

Depreciation on Tangible:

Depreciation is provided on straight line method at the rates provided in Schedule XIV of the Companies Act, 1956 in accordance with the provisions of Section 205 (2) (b) of the Companies Act, 1956. In respect of Assets costing less than Rs. 5,000/-the rate of depreciation is taken as 100%. Depreciation is computed pro-rata with reference to the number of months of use during the year.

Intangible Assets and Amortisation:

Intangible assets including Export benefits under duty exemption passbook are recognised only if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably.

Loose Tools:

Loose Tools are being written off over a period of 5 years in equal Amounts. Damaged or unserviceable tools are charged to revenue in the same year.

1.5 Impairment of Assets:

An Asset is treated as impaired when carrying cost of assets exceeds its recoverable value. An impairment loss is charged for when the asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. Reversal of impairment loss is recognised as income in the statement of profit & loss.

1.6 Borrowing Cost:

Borrowing costs are interest and other costs (including exchange differences arising from foreign currency borrowings to the extent that they are regarded as adjustment to interest cost) incurred by the company in connection with the borrowing of fund. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as a part of the cost of such asset. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All others borrowing cost are charged to the statement of profit and loss.

1.7 Leases:

Asset taken on lease by the Company in its capacity as lessee, where the Company has substantially assumed all risks and rewards of ownership are classified as finance lease. Such a lease is capitalised at the inception of the lease period at lower of fair value or present value of the minimum lease payments and a liability is recognised for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vests with the lesser, are recognised as operating leases. Lease rentals under operating leases are recognised in the statement of profit and loss on a straight line basis.

1.8 Revenue Recognition:

Revenue is recognized on accrual basis if there is reasonable certainty of its ultimate realization/collection.

(a) In respect of Transportation operations, revenue is recognised when the related service performed. Revenue in respect of contractual transport business is recognised in proportion to the value of work completed.

(b) In respect of Wind Energy Generation, revenue is recognised on the basis of units generated and billed. Unbilled units are allocated on pro-rata basis based on Billing Cycle..

(c) In respect of Trading and Manufacturing Activities, Sales is recognised at the time of dispatch of Goods to customers. The company collects value added taxes (VAT) and excise on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue. Sales stated net of return and trade discount.

(d) In respect of rent Income, revenue is recognised on accrual basis except in case where ultimate collection is considered doubtful.

Other Income

(a) In respect of Interest Income, revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

(b) In respect of Dividend Income, revenue is recognised when the right to receive payments is established.

1.9 Investments:

Current Investments are carried at lower of cost and quoted / fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

1.10 Foreign Currency Transactions:

Transactions in foreign currency are recorded at the exchange rates prevailing on the date of transaction. Foreign Currency Assets and Liabilities are stated at the exchange rates prevailing at the date of balance sheet. Realised gains or losses on foreign exchange transaction are recognised in the statement of profit and loss account.

Premium or discount on forward contracts where there are underlying assets/liabilities are amortised over the life of the contract. Such foreign exchange contracts are revalued at the balance sheet date and the exchange difference between the spot rate at the date of the contract and spot rate on the balance sheet date is recognised as gain/loss in the statement of profit and loss.

---

Mar 31, 2011

1 Basis of Accounting:

The company follows accrual method of accounting and financial statements are prepared on historical cost convention as a going concern in accordance with requirements of Companies Act, 1956 and generally accepted accounting principles and practices in India.

2 Use of Estimate:

The preparation of Financial Statements requires management to make assumptions that may affect reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of financial and the reported amounts of revenues and expense. Actual results could differ from those estimates .Any revisions to accounting estimates are recognized prospectively in current and future projects.

3 Inventory Valuation:

(a) Trading Activities:

Inventories are valued at cost or net realizable value whichever is lower. Cost of materials is ascertained on FIFO method.

(b) Manufacturing Activities:

Inventories are valued as per the following method:

4 Depreciation:

Depreciation is provided on straight line method at the rates provided in Schedule XIV of the Companies Act, 1956 in accordance with the provisions of Section 205 (2) (b) of the Companies Act, 1956. In respect of Assets costing less than Rs. 5,000/- the rate of depreciation is taken as 100%. Depreciation is computed pro-rata with reference to the number of months of use during the year.

5 Intangible Asset:

Intangible assets including Export benefits under duty exemption passbook are recognised only if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably.

The intangible assets are recorded at cost and amortized on straight line basis over the estimated useful lives as follows:

6 Loose Tools:

Loose Tools are being written off over a period of 5 years in equal Amounts. Damaged or unserviceable tools are charged to revenue in the same year.

7. Revenue Recognition:

Revenue is recognized on accrual basis if there is reasonable certainty of its ultimate realization/collection.

(a) In respect of transportation operations, revenue is recognised at the point of dispatch to customers. Revenue in respect of contractual transport business is recognised in proportion to the value of work completed.

(b) In respect of Wind Energy Generation, revenue is recognised on the basis of units generated and billed. Unbilled units are allocated on pro-rata basis based on Billing Cycle.

(c) In Manufacturing Division value of sales are exclusive of Excise Duty.

(d) In respect of Trading concern, revenue is recognized at the time of sale of goods.

8 Fixed Assets:

(a) Fixed asset are stated at cost of acquisition or construction (net of Cenvat credits) less depreciation and impairment losses, if any. All costs relating to the acquisition and installation of fixed assets are capitalised.

(b) Costs including expenses incurred on asset which are not ready for use in the financial year are accounted as Capital work in progress until the asset is ready for use.

9 Foreign Currency Transactions:

Transactions in foreign currency are recorded at the exchange rates prevailing on the date of transaction. Foreign Currency Assets and Liabilities are stated at the exchange rates prevailing at the date of balance sheet. Realised gains or losses on foreign exchange transaction are recognised in the profit and loss account.

10 Investments:

Current Investments are carried at lower of cost and quoted / fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

11 Accounting for employee benefits:

(a) Short Term Benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in profit & Loss Account of the year in which related service is rendered.

(b) Defined Contribution Plan

As per applicable laws the eligible employees of the company are entitled to receive benefits under the provident fund, a defined contribution plan, in which both employees and company make monthly contribution at specified percentage of the covered employee salary. The contributions as specified under the law are paid to the respective provident fund authorities as specified by law as per the scheme framed under the governing laws.

(c) Defined Benefit Plan

The company has not formulated any specific terms of employment providing for specific requirement benefits. However as per applicable laws, the company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees at retirement, death/disablement while in employment or termination of employment, of an amount equivalent to 15 days salary with reference to the number of completed year of service and last drawn salary. The Company has taken a Group Gratuity Scheme with Life Insurance Corporation of India covering all eligible employees. The liability in respect of Gratuity is recognised in accordance with Project Unit Credit Method.

12 Borrowing Cost:

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as a part of the cost of such asset. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All others borrowing cost are charged to revenue. There was no such case necessitating capitalisation of borrowing costs during the year.

13 Taxes on Income:

(a) Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting incomes that originate in one period and is capable of reversal in one or more subsequent periods.

(b) Deferred tax is measured based on the tax rate and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against such deferred tax assets can be realised.

14 Impairment of Assets:

An Asset is treated as impaired when carrying cost of assets exceeds its recoverable value. An impairment loss is charged for when the asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

15 Provision, Contingent Liabilities and Contingent Assets:

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

16 Inter-divisional Transfers:

Inter-divisional transfers of goods for internal use as captive consumption are shown as contra items in the Profit & Loss Account to reflect the true economic value of the production inter-se the divisions. This accounting treatment has no impact on the profit of the Company.

---

Mar 31, 2010

1 Basis of Accounting:

The company follows accrual method of accounting and financial statements are prepared on historical cost convention as a going concern in accordance with requirements of Companies Act, 1956 and generally accepted accounting principles and practices in India.

2 Use of Estimate:

The preparation of Financial Statements requires management to make assumptions that may affect reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of financial and the reported amounts of revenues and expense. Actual results could differ from those estimates .Any revisions to accounting estimates are recognized prospectively in current and future projects.

3 Inventory Valuation:

(a) Trading Activities:

Inventories are valued at cost or net realizable value whichever is lower. Cost of materials is ascertained on FIFO method.

(b) Manufacturing Activities:

Inventories are valued as per the following method:

Items Method Of Valuation

Raw Material, Stores Lower of the cost and net realisable value.

and Spares Cost is determined based on the FIFO method.

However aforesaid items are not valued below cost if finished products in which they are incorporated are expected to be sold at or above cost.

Work - in - Progress Lower of the cost (ascertained on FIFO basis up to the stage of completion) and net realisable value.

Finished Goods Lower of the cost and net realisable value including excise duty. Production overheads are allocated on absorption costing method

4 Depreciation:

Depreciation is provided on straight line method at the rates provided in Schedule XIV of the Companies Act, 1956 in accordance with the provisions of Section 205 (2) (b) of the Companies Act, 1956. In respect of Assets costing less than Rs. 5,000/- the rate of depreciation is taken as 100%. Depreciation is computed pro-rata with reference to the number of months of use during the year.

5 Intangible Asset:

Intangible assets including Export benefits under duty exemption passbook are recognised only if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably.

The intangible assets are recorded at cost and amortized on straight line basis over the estimated useful lives as follows:

Intangible Asset Estimated Useful Life (Years)

Softwares 3 years

6 Loose Tools:

Loose Tools are being written off over a period of 5 years in equal Amounts.. Damaged or unserviceable tools are charged to revenue in the same year.

7. Revnue Recognition:

Revenue is recognized on accrual basis if there is reasonable certainty of its ultimate realization/collection.

(a) In respect of transportation operations, revenue is recognised at the point of despatch to customers. Revenue in respect of contractual transport business is recognised in proportion to the value of work completed.

(b) In respect of Wind Energy Generaiton, revenue is recognised on the basis of units generated and billed. Unbilled units are allocated on pro-rata basis based on Billing Cycle.

(c) In Manufacturing Division value of sales are exclusive of Excise Duty.

(d) In respecte of Trading concern, revenue is recognized at the time of sale of goods.

8 Fixed Assets:

(a) Fixed asset are stated at cost of acquisition or construction (net of Cenvat credits) less depreciation and impairment losses, if any. All costs relating to the acquisition and installation of fixed assets are capitalised.

(b) Costs including expenses incurred on asset which are not ready for use in the financial year are accounted as Capital work in progress until the asset is ready for use.

9 Foreign Currency Transactions:

Transactions in foreign currency are recorded at the exchange rates prevailing on the date of transaction. Foreign Currency Assets and Liabilities are stated at the exchange rates prevailing at the date of balance sheet. Realised gains or losses on foreign exchange transaction are scognised in the profit and loss account.

10 Investments:

Current Investments are carried at lower of cost and quoted / fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

11 Accounting for employee benefits:

(a) Short Term Benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in profit & Loss Account of the year in which related service is rendered.

(b) Defined Contribution Plan

As per applicable laws the eligible employees of the company are entitled to receive benefits under the provident fund, a defined contribution plan, in which both employees and company make monthly contribution at specified percentage of the covered employee salary. The contributions as specified under the law are paid to the respective provident fund authorities as specified by law as per the scheme framed under the governing laws.

(c) Defined Benefit Plan

The company has not formulated any specific terms of employment providing for specific requirement benefits. However as per applicable laws, the company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees at retirement, death/disablement while in employment or termination of employment, of an amount equivalent to 15 days salary with reference to the number of completed year of service and last drawn salary. The Company has taken a Group Gratuity Scheme with Life Insurance Corporation of India covering all eligible employees. The liability in respect of Gratuity is recognised in accordance with Project Unit Credit Method.

12 Borrowing Cost:

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as a part of the cost of such asset. A qualifying asset is one that necessarily fakes a substantial period of time to get ready for its intended use. All others borrowing cost are charged to revenue. There was no such case necessitating capitalisation of borrowing costs during the year.

13 Taxes on Income:

(a) Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting incomes that originate in one period and is capable of reversal in one or more subsequent periods.

(b) Deferred tax is measured based on the tax rate and the tax laws enacted or substantively enacted at the Balance Sheet date.Deffered tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against such deferred tax assets can be realised.

14 Impairment of Assets:

An Asset is treated as impaired when carrying cost of assets exceeds its recoverable value. An impairment loss is charged for when the asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

15 Provision. Contingent Liabilities and Contingent Assets:

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

16 Inter-divisional Transfers:

Inter-divisional transfers of goods for internal use as captive consumption are shown as contra items in the Profit & Loss Account to reflect the true economic value of the production inter-se the divisions. This accounting treatment has no impact on the profit of the Company.