Accounting Policies of Glittek Granites Ltd. Company

Mar 31, 2024

Note: - 1 SIGNIFICANT ACCOUNTING POLICIES

1. Corporate Information:

Glittek Granites Limited (the ''Company'') is a public limited company domiciled in India incorporated under the
provisions of the Companies Act. Its shares are listed in Bombay Stock Exchange Ltd. (BSE) The registered office of the
company is at 42, KIADB Industrial Area, Pillagumpe village of Hoskote Taluk of Bangalore, Karnataka, India.

Company is engaged in the business of manufacturing, processing and trading of:

i) Granites Slab.

ii) Tiles

2. Basis of preparation of Financial Statements :

The Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed
under Section 133 of the Companies Act 2013 (“the Act”), as notified under the Companies (Indian Accounting
Standard) Rules, 2015 and other relevant provision of the Act, to the extent applicable and presentation requirements
of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the Standalone
Financial Statement.

The financial statements have been prepared under historical cost convention and on an accrual basis, except for the
following items which have been measured as required by relevant Ind AS:

a) Financial Instruments classified as fair value through other comprehensive income.

b) The defined benefit loss/(profit) is recognized as at the present value of defined benefit obligation less fair value of
plan assets through other comprehensive income.

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 policy hitherto in use. The
Company''s management evaluates all recently issued or revised accounting standards on an on-going basis.

Where changes are made in presentation, the comparative figures of the previous years are regrouped and re-arranged
accordingly.

3. Accounting Estimates And Assumptions:

The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the financial statements and the results of operations during the
reporting year end. Although these estimates are based upon management''s best knowledge of current events and
actions, actual results could differ from these estimates.

4. Equity

a. Ordinary Shares

Ordinary shares are classified as Equity Share capital. Incremental costs directly attributable to the issuance of new
shares and buyback are recognized as a deduction from equity, net of any tax effects.

b. Securities Premium

The amount received in excess of the par value of equity shares has been classified as securities premium.

c. Retained Earnings

Retained earnings represent the amount of accumulated earnings of the company.

d. Capital Reserve

Government grants in the nature of State Investment Subsidy are accounted for on cash basis and treated as Capital
Reserve.

5. Property, Plant and Equipment

a. Property, Plant and Equipment are stated at original cost (net of tax/ duty credit availed) less accumulated
depreciation and impairment losses except freehold land which is carried at cost. Cost includes cost of acquisition,
construction and installation, taxes, duties, freight, other incidental expenses related to the acquisition, trial run
expenses (net of revenue) and pre-operative expenses including attributable borrowing costs incurred during pre¬
operational period.

b. Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the company and the cost of
the item can be measured reliably. The carrying amount of any component as a separate asset is derecognised when
replaced. All other repairs and maintenance are charged to profit and loss during the reporting period in which they are
incurred.

c. Assets which are not ready for their intended use on reporting date are carried as capital work-in-progress at
cost, comprising direct cost and related incidental expenses.

d. On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant
and equipment as at 1st April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost
of the property, plant and equipment.

e. Property, Plant and Equipments including continuous process plants are depreciated and/or amortized on the
basis of their useful lives as notified in Schedule II to the Companies Act, 2013. The assets residual values and useful
lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Depreciation on Property, Plant & Equipment is provided on straight-line basis on the useful life of the asset as
mentioned in Schedule II to the companies Act, 2013

Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period when the
assets are ready for use. The Provision for Depreciation for the multiple shifts has been made in respect of eligible
assets on the basis of operation of respective units.

f. Useful lives of the Property, Plant and Equipment as notified in Schedule II to the Companies Act, 2013 are as
follows :

Buildings - 30 years

Plant and Equipments - 15 years

Furniture and Fixtures - 10 years

Vehicles - 8 years for Motor car and 10 years for two wheelers
Office Equipments - 5 years
Computers - 3 years

6. Intangible Assets

a. Intangible assets acquired by payment e.g., Computer Software are disclosed at cost less amortization on a
straight-line basis over its estimated useful life.

b. Intangible assets are carried at cost, net of accumulated amortization and impairment loss, if any.

c. On transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible
assets as at 1st April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the
intangible assets

d. Intangible assets are amortised on straight-line method as follows :

Computer Software - 3 years

7. Lease Property

The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by
an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an
option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the
Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease,
it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the
option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if
there is a change in the non-cancellable period of a lease.

Lease rentals under an operating lease, are recognized as an expense in the statement of profit and loss on a straight
line basis over the lease term.

8. Impairment of Assets

At the end of each accounting year the carrying amount of property, plant and equipment intangible
assets and financial assets is reviewed for impairment. Impairment, if any, is recognized where the
carrying amount exceeds the recoverable amounts being the higher of net realizable price and value
in use. An impairment loss is charged to Statement of Profit and loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior accounting periods is reversed if
there has been a change in the estimate of recoverable amount.

9. Inventories

a. Inventories related to raw materials, packing materials, stores & spares are valued at cost on weighted
average basis or net realizable value whichever is lower.

b. Waste & scraps are valued at estimated realizable value.

c. Semi Finished goods and Finished goods are valued at Estimated cost or net realizable value whichever is
lower. Finished goods and process stock include all cost of purchases, cost of conversion and other related costs
incurred in bringing the inventories to their present location and condition.

d. Net realizable value is the estimated selling price by taking conversion rate as on 31.03.2024 in the ordinary
course of business less the estimated cost of completion and the estimated costs necessary to make the sale.

10. Cash Flow Statement

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a
non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular
revenue generating, financing and investing activities of the Company is segregated.

Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and short term
investments (excluding pledged term deposits) with an original maturity of three months or less.

11. A. Financial Assets

(i) Initial Recognition and Measurement

The Company classifies its financial assets as those to be measured subsequently at fair value (either through other
comprehensive income, or through profit or loss) and those to be measured at amortized cost.

(ii) Subsequent Measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

(a) Debt instruments measured at amortized cost using the effective interest rate method and losses arising from
impairment are recognized in Profit and Loss if both the following conditions are met:

•The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
•Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.

(b) Equity instruments at fair value through other comprehensive income.

(c) Equity instruments at fair value through profit or loss (FVTPL)

(d) Equity Instruments in subsidiaries are carried at cost, in accordance with option available in Ind AS 27 “Separate
Financial Statements”.

(iii) De-Recognition

A financial asset is de-recognized only when the Company has transferred the rights to receive cash flows from the
financial asset, or when it has transferred substantially all the risks and rewards of the asset, or when it has transferred
the control of the asset.

(iv) Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss on the 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 follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it
recognizes impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.

As a practical expedient, the Company uses historically observed default rates over the expected life of the trade
receivables and is adjusted for forward-looking estimates to determine impairment loss allowance on portfolio of its
trade receivables.

B. Financial Liabilities:

i) Classification as debt or equity - Debt and equity instruments are classified as either financial liabilities or as equity
in accordance with the substance of the contractual arrangement.

ii) Equity instruments - An equity instrument is any contract that evidences a residual interest in the assets of an
entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds
received, net of direct issue costs.

iii) Initial Recognition and Measurement:

All Financials Liabilities are recognized net of transaction costs incurred.

iv) Subsequent Measurement-

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
Effective Interest Rate (“EIR”) method. Gains and losses are recognised in profit or loss when the liabilities are
derecognised through the EIR amortisation process.

v) De-Recognition

All Financials Liabilities are removed from balance sheet when the obligation specified in the contract is discharged,
cancelled or expired.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the
terms of an existing liability are substantially modified, such an exchange or modification is treated as the de¬
recognition of the original liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit and loss.

12. Tax Asset

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

13. Revenue Recognition:

Revenue comprises of all economic benefits that arise in the ordinary course of activities of the Company which

result in increase in Equity, other than increases relating to contributions from equity participants. Revenue is
recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be
reliably measured. Revenue is measured at the fair value of the consideration received or receivable.

Sale of Goods: Revenue from sales of goods is recognised on transfer of significant risks and rewards of ownership to
the customers either at the time of dispatch or delivery or when the risk of loss transfers.

Services: Revenue from Services are recognized as and when the services are rendered. The Company collects service
tax/Goods & Service Tax on behalf of the government and therefore, it is not an economic benefit flowing to the
Company and hence excluded from Revenue.

Interest: Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable.

Insurance Claims: Insurance Claims are accounted for on acceptance and when there is a reasonable certainty of
receiving the same, on grounds of prudence.

14. Foreign Currency Transactions:

The Company''s financial statements are presented in Indian Rupees (''INR''), which is also the Compa ny''s functional
currency.

Foreign currency transactions are recorded on initial recognition in the functional currency, using the exchange rate at
the date of the transaction. At each balance sheet date, foreign currency monetary items are reported using the closing
exchange rate. Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet
date of the Company''s monetary items at the closing rate are recognised as income or expenses in the period in which
they arise.

Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the
exchange rate at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are
translated using the exchange rate at the date when the fair value is determined.

15. Employee Benefits:

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and
Loss of the year in which the related service is rendered.

Post Employment and Retirement benefits in the form of Gratuity are considered as defined benefit obligations, using
the projected unit credit method, as at the date of the Balance Sheet. Every Employee who has completed five years or
more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act,
1972. Gratuity is covered under a scheme of LIC and contribution in respect of such scheme is recognized in Profit &
Loss Account. The liability at the Balance Sheet date is provided for based on actuarial valuation carried out by Life
Insurance Corporation of India

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by
reference to market yields at the end of reporting period on government bonds that have terms approximating to the
terms of the related obligation

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions of the
defined benefit obligation are recognised in the period in which they occur, directly in other comprehensive income.
They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Employee benefits in the form of Provident Fund is considered as defined contribution plan and the contributions to
Employees'' Provident Fund Organization established under The Employees'' Provident Fund and Miscellaneous
Provisions Act 1952 is charged to the Statement of Profit and Loss of the year when the contributions to the respective
funds are due. The Company pays provident fund contributions to publicly administered provident funds as per local
regulations.

The Company has no further payment obligations once the contributions have been paid.

16. Borrowing Costs:

Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to
the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of
funds.

General and specific borrowing costs that are directly attributable to the acquisition or construction of qualifying assets
are capitalised as part of the cost of such assets during the period of time that is required to complete and prepare the
asset for its intended use. A qualifying asset is one that takes necessarily substantial period of time to get ready for its
intended use.

All other borrowing costs are expensed in the period in which they are incurred.

17. Accounting for Taxes on Income:

Tax expenses comprise of current tax and deferred tax including applicable surcharge and cess.

Current Income tax is computed using the tax effect accounting method, where taxes are accrued in the same period in
which the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability
computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a
liability due to disallowances or other matters is probable.

Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the
tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all
deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax
assets are recognized to the extent that it is probable that taxable profits against which the deductible temporary
differences, and the carry forward unused tax credits and unused tax losses can be utilised.

Deferred tax is recognised in the statement of profit and loss, except to the extent that it relates to items recognized in
other comprehensive income. As such, deferred tax is also recognised in other comprehensive income.

Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the Deferred Tax Assets and Deferred Tax Liabilities relate to taxes on income
levied by same governing taxation laws.

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Mar 31, 2015

A) Accounting Convention

The Financial Statement are prepared under the historical cost convention on the accrual basis of accounting and in accordance with Accounting principles generally accepted in India and comply with the accounting standards notified by the central Government of India and relevant provisions of the Companies Act, 2013.

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

b) Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and reported amount of revenue and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/ materialised.

Current and Non-current classification

All assets and liabilities are classified into current and non-current Assets

An asset is classified as current when it satisfies any of the following criteria :

a) It is expected to be realised in, or is intended for sale or consumption in, the company's normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is expected to be realised within 12 months after the reporting date; or

d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria;

a) It is expected to be settled in the company's normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within 12 months after the reporting date; or

d) The company does not have an unconditional right to defer settlement of liability for at least 12 months after the reporting date.

Terms of a liability that could, at the option of the counter party, result in its settlement by issue of equity instruments do not affects its classification.

Current liability include current portion of non-current financial liabilities.

All other liabilities are classified as non-current.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

c) Fixed Assets

Fixed Assets are stated at cost. Cost includes cost of acquisition, non-refundable levies, directly attributable cost of bringing the assets to the working condition for intended use, expenditure during construction period and interest up to the date the assets is put to use. (And also refer note g).

d) Depreciation

Depreciation on Fixed Assets is charged on Straight Line Method as per Schedule II of the companies Act, 2013, except in case of assets added or disposed off it is charged on prorata basis with reference to the date of addition/deletion.

Intangible assets are amortized on straight line basis over the estimated useful life of the assets. Consequent to the applicability of the Companies Act, 2013, with effect from 1st April, 2014, depreciation for the year ended 31st March, 2015, debited to the statement of Profit & Loss is lesser by Rs. 51.04 lacs.

e) Borrowing cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets is capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

f) Amortisation :

Leasehold quarries and housing tenaments acquired under lease cum sale agreement shall be amortised after execution of Sale Deeds. Expenditure incurred on acquisition and development of leasehold quarries are amortised over the unexpired period of their lease after these become operational. The company has purchased a Time Sharing Holiday Resort from Club Mahindra Holidays. The same is effective from April 2003 for a period of 25 years and will be amortised equally over a period of 25 years. Capital issue expenses are amortised over a period of 5 years.

g) Intangible Assets :

Intangible assets comprises of application software stated at its acquisition cost less accumulated depreciation.

h) Impairment of Assets :

In accordance with Accounting Standard 28 AS ( 28) on 'Impairment of Assets' where there is an indication of impairment of the Company's assets, the carrying amount of the company's assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets (or where applicable that of the cash generating unit to which the asset belongs) is estimated at higher of its net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life. An Impairment loss is charged to the Profit & Loss Account in the year in which the carrying amount of the asset or a cash generating unit exceeds its recoverable amount .The Impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

i) Investment :

Investment are valued at acquisition cost.

j) Inventories :

i) Raw materials is valued at actual cost or net realisable value whichever is lower. Stores and spares, fuel & packaging materials are valued at weighted average cost or net realisable value whichever is lower.

ii) Work In Progress and Finished Products are valued at estimated cost or net realisable value whichever is lower.

iii) Scraps & Rejects are valued at estimated realisable value.

Finished goods and WIP include cost of conversion and other costs incurred in bringing the inventories to the present location and condition.

Estimated realisable value is calculated on the basis of current selling price less the normal selling expenses incurred in making the sale.

k) Foreign Currency Transaction :

The transaction in foreign currencies on revenue account are stated at the rates of exchange prevailing on the date of transaction. Outstanding Foreign currency assets / liabilities are not covered by forward contracts and are translated at the exchange rate prevailing as on Balance Sheet date. Gains or losses on these assets & liabilities relating to the acquisition of fixed assets are adjusted to the cost of such fixed assets and those relating to other accounts are recognised in the Profit & Loss Account.

l) Revenue Recognition :

(i) Revenue /Income and Cost/Expenditure are generally accounted for on accrual basis as they are earned or incurred, except, in case of significant uncertainties.

(ii) Subsidy receivable against an expense is deducted from such expense.

(iii) Domestic Sales is exclusive of excise duty.

(iv) Revenue from services is recognised as and when services are rendered and related costs are incurred.

(v) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

m) Retirement Benefits :

Defined contribution scheme : Company's contribution towards Provident Fund and Superannuation Fund paid/payable during the year are charged to Profit & Loss Account.

Defined Benefit Plan :The company has a defined benefit gratuity plan covering all its employees. Gratuity is covered under a scheme of LIC and contribution in respect of such scheme are recognized in Profit & Loss Account. The liability at the Balance Sheet date is provided for based on actuarial valuation carried out by Life Insurance Corporation of India in accordance with AS 15 of employee benefits issued by the Institute of Chartered Accountants of India.

Disclosure in respect of DCS and DBS as required under AS 15 have been given in Note 5 below to the extent practical and the availability of information.

n) Leases :

Lease rentals under an operating lease, are recognised as an expense in the statement of profit and loss on a straight line basis over the lease term.

o) Expenditure on Expansion :

Expenditure directly related to construction activity is capitalised. Indirect expenditure (including borrowing cost) directly related to construction or incidental thereto is allocated amongst the assets created on pro-rata basis.

p) Governments Grants :

Government grants in the nature of State Investment subsidy are accounted for on cash basis and treated as capital reserve.

q) Taxation :

Income - tax expense comprises Current tax and Deferred tax charge or credit. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. The Deferred tax Asset and Deferred tax Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax Assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax Assets on account of other timing differences are recognised, only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of Deferred Tax Assets are reviewed to reassure realisation.

r) Earning per share :

Basic and diluted earning per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted number of equity shares outstanding during the year.

s) Contingent Liabilities and Provisions :

Contingent liabilities are not provided for and are generally disclosed by way of notes to accounts. Provisions are recognized when the Company has legal/constructive obligation and on management discretion, as a result of a past event for which it is probable that a cash outflow may be required and a reliable estimate can be made for the amount of obligation.

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Mar 31, 2014

A) Accounting Convention :

The Financial Statement are prepared under the historical cost convention on the accrual basis of accounting and in accordance with Accounting principles generally accepted in India ^ and comply with the accounting standards notified by the Central Government of India and relevant provisions of the Companies Act, 1956.

Ail assets & liabilites have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956

b) Use of Estimates :

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and reported amount of revenue and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/ materialised.

Current and Non-current classification *

All assets and liabilities are classified into current and non-current Assets

An asset is classified as current when it satisfies any of the following criteria:

a) It is expected to be realised in, or is intended for sale or consumption in, the company''s normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is expected to be realised within 12 months after the reporting date; or

d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria;

a) It is expected to be settled in the company''s normal operating cycle

b) It is held primarily for the purpose of being traded.;

c) It is due to be settled within 12 months after the reporting date; or

d) The company does not have an unconditional right to defer settlement of liability for at least 12 months after the reporting date.

Terms of a liability that could, at the option of the counterparty, result in its settlement by issue of equity instruments do not affects its classification.

Current liability include current portion of non-current financial liabilities.

All other liabilities are classified as non-current.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

c) Fixed Assets :

Fixed Assets are stated at cost. Cost includes cost of acquisition, non-refundable levies, directly attributable cost of bringing the assets to the working condition for intended use, expenditure during construction period and interest up to the date the assets is put to use. (And also refer note i).

d) Depreciation :

Depreciation on Fixed Assets is charged on Straight Line Method as per Schedule XIV of the Companies Act, 1956, except in case of assets added or disposed off it is charged on prorata basis with reference to the date of addition/deletion.

Assets costing Rs. 5000/- or less are being fully depreciated in the year of acquisition. Intangible assets are amortized on straight line basis over the estimated usefull life of the ^ assets.

e) Borrowing cost :

Borrowing cost that are attributable to the acquisition or construction of qualifying assets is capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

f) Amortisation :

Leasehold quarries and housing tenaments acquired under lease cum sale agreement shall be amortised after execution of Sale Deeds. Expenditure incurred on acquisition, and development of leasehold quarries are amortised over the unexpired period of their lease after these become operational. The company has purchased a Time Sharing Holiday Resort from Club Mahindra Holidays. The same is effective from April 2003 for a period of 25 years and will be amortised equally over a period of 25 years. Capital issue expenses are amortised over a period of 5 years.

g) Intangible Assets :

Intangible assets comprises of application software stated at its acquisition cost less accumulated depreciation.

h) Impairment of Assets :

In accordance with Accounting Standard 28 (AS-28) on ''Impairment of Assets'' where there is an indication of impairment of the Company''s assets, the carrying amount ofthe company''s assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets (or where applicable that of the cash generating unit to which the asset belongs) is estimated at higher of its net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life. An Impairment loss is charged to the Profit & Loss Account in the year in which the carrying amount of the asset or a cash generating unit exceeds its recoverable amount. The Impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. ''

i) Investment :

Investment are valued at acquisition cost.

j) Inventories :

i) Raw materials is valued at actual cost or net realisable value whichever is lower. Stores and spares & packaging materials are valued at weighted average cost or net realisable value whichever is lower.

ii) Work In Progress and Finished Products are valued at estimated cost or net realisable value whichever is lower

iii) Scraps & Rejects are valued at estimated realisable value.

Finished goods and WIP include cost of conversion and other costs incurred in bringing the inventories to the present location and condition.

Estimated realisable value is calculated on the basis of current selling price less the normal selling expenses incurred in making the sale.

k) Foreign Currency Transaction :

The transaction in foreign currencies on revenue account are stated at the rates of exchange prevailing on the date of transaction. Outstanding Foreign currency assets/liabilities are not covered by forward contracts and are translated at the exchange rate prevailing as on Balance Sheet date. Gains or losses on these assets & liabilities relating to the acquisition

of fixed assets are adjusted to the cost of such fixed assets and those relating to other accounts are recognised in the Profit & Loss Account.

l) Revenue Recognition :

(I) Revenue /Income and Cost/Expenditure are generally accounted for on accrual basis as they are earned or incurred, except,in case of significant uncertainties.

(II) Subsidy receivable against an expense is deducted from such expense.

(iii) Domestic Sales is exclusive of excise duty

(iv) Revenue from services is recognised as and when services are rendered and related costs are incurred.

(v) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

m) Retirement Benefits :

Defined contribution scheme : Company''s contribution towards Provident Fund and Superannuation Fund paid/payable during the year are charged to Profit & Loss Account. Defined Benefit Plan : The company has a defined benefit gratuity plan covering all its employees. Gratuity is covered under a scheme of LIC and contribution in respect of such scheme are recognized in Profit & Loss Account. The liability at the Balance Sheet date is provided for based on actuarial valuation carried out by Life Insurance Corporation of India in accordance with AS 15 of employee benefits issued by the Institute of Chartered Accountants of India.

Disclosure in respect of DCS and DBS as required under AS 15 have been given in Note 5 below to the extent practical and the availability of information.

n) Leases :

Lease rentals under an operating lease, are recognised as an expense in the statement of profit and loss on a straight line basis over the lease term.

o) Expenditure on Expansion :

Expenditure directly related to construction activity is capitalised. Indirect expenditure (including borrowing cost) directly related to construction or incidental thereto is allocated amongst the assets created on pro-rata basis.

p) Governments Grants :

Government grants in the nature of State Investment subsidy are accounted for on cash basis and treated as capital reserve.

q) Taxation :

Income - tax expense comprises Current tax and Deferred tax charge or credit. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. The Deferred tax Asset and Deferred tax Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax Assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised,only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax Assets on account of other timing differences are recognised,only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of Deferred Tax Assets are reviewed to reassure realisation.

r) Earning per share :

Basic and diluted earning per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted number of equity shares outstanding during the year.

s) Contingent Liabilities and provisions :

Contingent liabilities are not provided for and are generally disclosed by way of notes to accounts. Provisions are recognized when the Company has legal/constructive obligation and on management discretion, as a result of a past event for which it is probable that a cash outflow may be required and a reliable estimate can be made for the amount of obligation.

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Mar 31, 2013

A) Accounting Convention :

The Financial Statement are prepared under the historical cost convention on the accrual basis of accounting and in accordance with Accounting principles generally accepted in India and comply with the accounting standards notified by the central Government of India and relevant provisions of the Companies Act, 1956.

All assets & liabilites have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956.

b) Use of Estimates :

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and reported amount of revenue and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/ materialised.

Current and Non-current classification

All assets and liabilities are classified into current and non-current

Assets

An asset is classified as current when it satisfies any of the following criteria:

a) It is expected to be realised in, or is intended for sale or consumption in, the company''s normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is expected to be realised within 12 months after the reporting date; or

d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria;

a) It is expected to be settled in the company''s normal operating cycle

b) It is held primarily for the purpose of being traded.;

c) It is due to be settled within 12 months after the reporting date; or

d) The company does not have an unconditional right to defer settlement of liability for at least 12 months after the reporting date.

Terms of a liability that could, at the option of the counterparty, result in its settlement by issue of equity instruments do not affects its classification.

Current liability include current portion of non-current financial liabilities.

All other liabilities are classified as non-current.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

c) Fixed Assets :

Fixed Assets are stated at cost. Cost includes cost of acquisition, non-refundable levies, directly attributable cost of bringing the assets to the working condition for intended use, expenditure during construction period and interest up to the date the assets is put to use. (And also refer note i).

d) Depreciation :

Depreciation on Fixed Assets is charged on Straight Line Method as per Schedule XIV of the companies Act, 1956, except in case of assets added or disposed off it is charged on prorata basis with reference to the date of addition/deletion.

Assets costing Rs. 5000/- or less are being fully depreciated in the year of acquisition

Intangible assets are amortized on straight line basis over the estimated usefull life of the assets.

e) Borrowing cost :

Borrowing cost that are attributable to the acquisition or construction of qualifying assets is capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

f) Amortisation :

Leasehold quarries and housing tenaments acquired under lease cum sale agreement shall be amortised after execution of Sale Deeds. Expenditure incurred on acquisition and development of leasehold quarries are amortised over the unexpired period of their lease after these become operational. The company has purchased a Time Sharing Holiday Resort from Club Mahindra Holidays. The same is effective from April 2003 for a period of 25 years and will be amortised equally over a period of 25 years. Capital issue expenses are amortised over a period of 5 years.

g) Intangible Assets :

Intangible assets comprises of application software stated at its acquisition cost less accumulated depreciation.

h) Impairment of Assets :

In accordance with Accounting Standard 28 (AS-28) on ''Impairment of Assets'' where there is an indication of impairment of the Company''s assets, the carrying amount of the company''s assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of the assets (or where applicable that of the cash generating unit to which the asset belongs) is estimated at higher of its net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life. An Impairment loss is charged to the Profit & Loss Account in the year in which the carrying amount of the asset or a cash generating unit exceeds its recoverable amount .The Impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

i) Investment :

Investment are valued at acquisition cost.

j) Inventories :

i) Raw materials is valued at actual cost or net realisable value whichever is lower.

Stores and spares & packaging materials are valued at weighted average cost or net realisable value whichever is lower.

ii) Work In Progress and Finished Products are valued at estimated cost or net realisable value whichever is lower

iii) Scraps & Rejects are valued at estimated realisable value.

Finished goods and WIP include cost of conversion and other costs incurred in bringing the inventories to the present location and condition.

Estimated realisable value is calculated on the basis of current selling price less the normal selling expenses incurred in making the sale.

k) Foreign Currency Transaction :

The transaction in foreign currencies on revenue account are stated at the rates of exchange prevailing on the date of transaction. Outstanding Foreign currency assets/liabilities are not covered by forward contracts and are translated at the exchange rate prevailing as on Balance Sheet date. Gains or losses on these assets & liabilities relating to the acquisition of fixed assets are adjusted to the cost of such fixed assets and those relating to other accounts are recognised in the Profit & Loss Account. I) Revenue Recognition :

(I) Revenue /Income and Cost/Expenditure are generally accounted for on accrual basis as they are earned or incurred, exceptjn case of significant uncertainties.

(II) Subsidy receivable against an expense is deducted from such expense.

(iii) Domestic Sales is exclusive of excise duty

(iv) Revenue from services is recognised as and when services are rendered and related costs are incurred.

(v) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

m) Retirement Benefits :

Defined contribution scheme : Company''s contribution towards Provident Fund and Superannuation Fund paid/payable during the year are charged to Profit & Loss Account.

Defined Benefit Plan : The company has a defined benefit gratuity plan covering all its employees. Gratuity is covered under a scheme of LIC and contribution in respect of such scheme are recognized in Profit & Loss Account. The liability at the Balance Sheet date is provided for based on actuarial valuation carried out by Life Insurance Corporation of India in accordance with AS 15 of employee benefits issued by the Institute of Chartered Accountants of India.

Disclosure in respect of DCS and DBS as required under AS 15 have been given in Note 5 below to the extent practical and the availability of information.

n) Leases :

Lease rentals under an operating lease, are recognised as an expense in the statement of profit and loss on a straight line basis over the lease term.

o) Expenditure on Expansion :

Expenditure directly related to construction activity is capitalised. Indirect expenditure (including borrowing cost) directly related to construction or incidental thereto is allocated amongst the assets created on pro-rata basis.

p) Governments Grants :

Government grants in the nature of State Investment subsidy are accounted for on cash basis and treated as capital reserve.

q) Taxation :

Income - tax expense comprises Current tax and Deferred tax charge or credit.Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. The Deferred tax Asset and Deferred tax Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax Assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised.only if there is a virtual certainty of its realisation,supported by convincing evidence. Deferred tax Assets on account of other timing differences are recognised.only to the extent there is a reasonable certainty of its realisation.At each Balance Sheet date, the carrying amount of Deferred Tax Assets are reviewed to reassure realisation.

r) Earning per share :

Basic and diluted earning per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted number of equity shares outstanding during the year.

s) Contingent Liabilities and provisions :

Contingent liabilities are not provided for and are generally disclosed by way of notes to accounts. Provisions are recognized when the Company has legal/constructive obligation and on management discretion, as a result of a past event for which it is probable that a cash outflow may be required and a reliable estimate can be made for the amount of obligation.

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Mar 31, 2011

A) Accounting Convention

The financial statements are prepared in accordance wltn applicable Accounting Standards in India. A summary of important accounting policies, which have been applied consistently is S9t out below.

b) Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of Financial statements and reported amount to revenue and expenses during the reporting period. Difference between actual results and estimates are recognised in trie period in which the results are known/ materialised.

c) Fixed Assets

Fixed Assets are stated at cost, Cost includes cost of acquisition, non-refundable levies. directly attributable cost ot bringing the assets to the working condition for intended use, i expenditure during construction period and interest up to the date the assets is put to use. ! (And also refer note 0-

d) Depreciation

Depreciation on fixed Assets is charged on Straight Line Method as per Schedule XIV of the companies lies Act, 1956, except in case of assets added or disposed off it is charged ; on prorate basis with reference to the date of addition/deletion',

Leasehold quarries and housing tenements acquired under lease cum sale agreement shall be amortised after execution of Sale Deeds. Expenditure incurred on acquisition and development of leasehold quarries are amortised over the unexpired period of their lease after these become operational. The company has purchased a Time Sharing Holiday Resort from Club Mahindra Holidays. The same is effective from April 2003 for a period ] of 25 years and wilt be amortised equally over a period of 25 years. Capital Issue expenses are amortised over a period of 5 years, f) Impairment of_ Assets, An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in Winch the assets 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. j

Investments are valued at acquisition cost. j

e) Inventories

i) Raw materials is valued at actual cost or net realisable value whichever is lower. Stores j and spares & packaging materials are valued at weighted average cost or net realisable value whichever is lower.

ii) Work In Progress and Finished Products are valued at estimated cost or net realisable value whichever is lower

iii) Scraps & Rejects are valued at estimated realisable value.

Finished goods and WIP include cost of conversion and other cost incurred in bringing the inventories to the present location and condition.

Estimated realisable value is calculated on the basis of current selling price less the normal selling expenses incurred in making the sale.

f) Foreign Currency Transaction :

The transaction in foreign currencies on revenue account are stated at the rates of exchange prevailing on the date of transaction. Outstanding Foreign currency assets/ I abilities are translated at the exchange rate prevailing as on Balance Sheet date. Gains or losses on these assets & liabilities relating to the acquisition of fixed assets are adjusted to the cost of such fixed assets 3rd those relating to other accounts are recognised in the Profit & Loss Account,

g) Revenue Recognition :

(i) Rovenue/hcome and Cost/Expenditure are generally accounted for on accrual basis as they are earned or incurred, except in case of significant uncertainties

(ii) Subsidy receivable against an expense is deducted from such expense.

(iii) Domestic Safes is exclusive of excise duty.

h) Retirement Benefits :

Defined contribution scheme : Company's contribution towards Provident Fund and Superannuation Fund paid/payable during the year are charged to Profit & Loss Account. Defined Benefit Plan ; The company has a defined benefit gratuity plan covering all its employees. Gratuity is covered under a scheme of LlC and contribution in respect of such scheme are recognized in Profit & Loss Account. The liability at the Balance Sheet date is provided for based on actuarial valuation earned out oy Life Insurance Corporation of India in accordance with AS 15 of employee benefits issued by the Institute of Chartered Accountants of India.

Disclosure in respect of CCS and DBS as required under AS 15 have been given in Note 5 below to the extent practical and the availability of information.

i) Expenditure on Expansion ;

Expenditure directly related to construction activity is capitalised. Indirect expenditure (including borrowing cost) directly related to construction or incidental thereto is allocated amongst the assets created on pro-rata basis

j) Governments Grants:

Government grants in the nature of State Investment subsidy are accounted for on cash basis and treated as capital reserve.

k) Taxation :

income lax expense comprises Current tax and Deferred lax charge or credit. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year The Deterred tax Asset and Deterred lax Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax Assets arising mainly on account o1 through forward losses and unabsorbed depreciation under tax laws arc recognised, only if here is 3 virtual certainty of its realisation, supposed by convincing evidence Deferred tax Assets on account of other timing differences are recognised, only to the extent there is a reasonable certainty of its realisation.

A) each Balance Sheet date, the carrying amount of Deferred Tax Assets are reviewed to reassure realisation.

b) Contingent liabilities ;

Contingent liabilities are not provided for and are generally disclosed by way of rotes to accounts, Contingent liabilities are not provided for in respect of :

i) Liabilities on account of unexpired letter of credit Fls,39,00,496/- (Previous year Rs.25,73,645/-)

ii) Demand for Rs.3,30,000/- (Previous year Rs.3,30.000/*) in respect of entry tax has not been accepted by the company and the company has filed appeals before the appropriate authorities against the same

iii) Pending outcome of legal and cither claims filed by the company, additional liabilities that may arise in this respect on final settlement is currently not ascertainable and has accordingly not been provided for,

iv) Demand for ESI amounting to Fts.121391 (previous year 12139) has not beer accepted by the company and an appeal has been fled before appropriate authorities against the same. Rs.60696 (previous year -60696/-) paid against the same is included in Loan and Advances.

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Mar 31, 2010

A) Accounting Convention

The financial statements are prepared in accordance with applicable Accounting Standards in India, except as mentioned in paragraph j below. A summary of important accounting policies, which have been applied consistently is set out below.

b) Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and reported amount of revenue and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/ materialised.

c) Fixed Assets

Fixed Assets are stated at cost. Cost includes cost of acquisition, non-refundable levies, directly attributable cost of bringing the assets to the working condition for intended use, expenditure during construction period and interest up to the date the assets is put to use. (And also refer note i).

d) Depreciation

Depreciation on Fixed Assets is charged on Straight Line Method as per Schedule XIV of the Companies Act, 1956, except in case of assets added or disposed off it is charged on prorata basis with reference to the date of addition/deletion.

e) Amortisation

Leasehold quarries and housing tenements acquired under lease cum sale agreement shall be amortised after execution of Sale Deeds. Expenditure incurred on acquisition and development of leasehold quarries are amortised over the unexpired period of their lease after these become operational. The company has purchased a Time Sharing Holiday Resort from Club Mahindra Holidays. The same is effective from April 2003 for a period of 25 years and will be amortised equally over a period of 25 years. Capital issue expenses are amortised over a period of 5 years.

f) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An Impairment loss is charged to the Profit & Loss Account in the year in which the assets 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.

g) Investments

Investments are valued at acquisition cost.

h) Inventories

i) Raw materials, stores and spares & packaging materials are valued at cost or net realisable value whichever is lower.

ii) Work In Progress and Finished Products are valued at estimated cost or net realisable value whichever is lower

iii) Scraps & Rejeots are valued at estimated realisable value.

The cost of raw material is computed at actual cost and stock and spares and packing material at weighted average basis.

Finished goods and WIP include cost of conversion and other cost incurred in bringing the inventories to the present location and condition.

Estimated realisable value is calculated on the basis of current selling price less the normal selling expenses incurred in making the sale.

i) Foreign Currency Transaction :

The transaction in foreign currencies on revenue account are stated at the rates of exchange prevailing on the date of transaction. Outstanding Foreign currency assets/ liabilities are translated at the exchange rate prevailing as on Balance Sheet date. Gains or losses on these assets & liabilities relating to the acquisition of fixed assets are adjusted to the cost of such fixed assets and those relating to other accounts are recognised in the Profit & Loss Account. j) Revenue Recognition :

(i) Revenue /Income and Cost/Expenditure are generally accounted for on accrual basis as they are earned or incurred, except, in case of significant uncertainties. (ii) Subsidy receivable against an expense is deducted from such expense. (iii) The basis of accounting of Cenvat Credit for Service Tax on Input services has been changed from acceptance/ receipt of claims basis to accrual basis. This change has resulted in an increase in profit by Rs.586787.

However claim for the period up to 31st March 2009 is continued to be accounted for on acceptance/receipt basis and accordingly claim received for the period prior to that date will be accounted for as Service Tax refund received under other income in Profit & Loss Account.

(iv) Domestic Sales is exclusive of custom duty.

k) Retirement Benefits :

Defined contribution scheme : Companys contribution towards Provident Fund and Superannuation Fund paid/payable during the year are charged to Profit & Loss Account. Defined Benefit Plan :The company has a defined benefit gratuity plan covering all its employees. Gratuity is covered under a scheme of LIC and contribution in respect of such scheme are recognized in Profit & Loss Account. The liability at the Balance Sheet date is provided for based on actuarial valuation carried out by Life Insurance Corporation of India in accordance with AS 15 of employee benefits issued by the Institute of Chartered Accountants of India.

Disclosure in respect of DCS and DBS as required under AS 15 have been given in Note 5 below to the extent practical and the availability of information.

l) Expenditure on Expansion :

Expenditure directly related to construction activity is capitalised. Indirect expenditure including borrowing cost directly related to construction or incidental thereto is allocated amongst the assets created on pro-rata basis.

m) Governments Grants :

Government grants in the nature of State Investment subsidy are accounted for on cash basis and treated as capital reserve.

n) Taxation :

Income tax expense comprises Current tax and Deferred tax charge or credit. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. The Deferred tax Asset and Deferred tax Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax Assets arising mainly on account of brought forward losses and unabsored depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax Assets on account of other timing differences are recognised, only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of Deferred Tax Assets are reviewed to reassure realisation.

o) Contingent Liabilities

Contingent liabilities are not provided for and are generally disclosed by way of notes to accounts.