Accounting Policies of Gravity (India) Ltd. Company

Mar 31, 2024

MATERIAL ACCOUNTING POLICIES

1.1. a Statement of compliance

These financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), and the provisions of
the Companies Act ,2013 (''the Act'') (to the extent notified)The Ind AS are prescribed under Section 133 of the Act read
with Rule3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

1.1. b Basis of preparation and presentation

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are
measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is
generally based on the fair value of the consideration given in 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 value 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. Fair value for measurement and/or disclosure purposes in these financial statements is determined on
such a basis, except for share based payment transactions that are within the scope of Ind AS 102, leasing transactions that
are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such
as net realisable value in Ind AS 2 or value in use in Ind AS 36. In addition, for financial reporting purposes, fair value
measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements
are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as
follows :

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability,
either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability.

1.1. c Revenue recognition

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of
variable consideration on account of various discount offered by the Company as part of the contract.

Revenue recognised from major business activities:

Sale of goods: Revenue from sale of goods is recognised as and when the Company satisfies performance obligations by
transferring control of the promised goods to its customers

1.1. d Interest income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to
the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

1.1. e Borrowing costs

Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds.
General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All
other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred._

1.1. f Employee benefits

- A liability is recognised for benefits accruing to employees in respect of wages and salaries, and annual leave in the
period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that
service.

- Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits
expected to be paid in exchange for the related service

- Payments to defined contribution plan are charged to profit & loss account when contributions to respective funds are
due

- defined benefit plan in respect of Gratuity Payments are accounted for on Payment basis.

1.1. g Taxation

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 or expense that are taxable or deductible in
other years and items that are never taxable or deductible. The Company’s current tax is calculated using tax rates that
have been enacted or substantively enacted by the end of the reporting period. Current income tax assets/liabilities for
current year is recognized at the amount expected to be paid to and/ or recoverable from the tax authorities.

Deferred tax : Deferred tax is recognised 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 recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference
arises from the initial recognition (other than in a business combination) 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 it is no longer probable that sufficient taxable profits will be available to
allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected
to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the reporting period. The measurement of 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. Minimum Alternate Tax (MAT) paid in
accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income-tax liability,
is considered as an asset if there is convincing evidence that the Company will pay normal income-tax. Accordingly, MAT
Credit is recognised as asset in the Balance Sheet when it is probable that future economic benefit associated with it will
flow to the Company.

Current and deferred tax for the year: Current and deferred tax are recognised in profit or loss, except when they relate
to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred
tax are also recognised in other comprehensive income or directly in equity respectively.

1.1. h Property, plant and equipment (PPE)

Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated
in the balance sheet at cost less accumulated depreciation and accumulated impairment losses. Freehold land is not
depreciated.

''Property, Plant and Equipment are stated at cost of acquisition as reduced by accumulated depreciation and impairment
losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for
its intended use.

The Company has elected to continue with the carrying value of all its PPE recognised as on April 1, 2016 measured as
per the previous GAAP and use that carrying value as its deemed cost as on transition date. Depreciation is provided on
Straight Line Method on the basis of useful lives of such assets specified in Schedule II to the Companies Act, 2013
except the assets costing ? 5000/- or below on which depreciation is charged @ 100%. Depreciation is calculated on pro¬
rata basis. The estimated useful life of the assets have been assessed based on technical advice, taking into account the
nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement,
anticipated technological changes, manufacturers warranties and maintenance support etc.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is
classified as capital advances under other non-current assets and the cost of assets not put to use before such date are
disclosed under ‘Capital work-in-progress’. Subsequent expenditures relating to property, plant and equipment is
capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the
cost of the item can be measured reliably. Repairs and maintenance costs are recognized in net profit in the statement of
profit and loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements
upon sale or retirement of the asset and the resultant gains or losses are recognized in the statement of profit and loss.

Assets to be disposed off are reported at the lower of the carrying value or the fair value less cost to sell.

Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction)
less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values
and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate

accounted for on a prospective basis._

1.1.i Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its
recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted at the pretax discount rate reflecting current market assessment
of time value of money and risks specific to asset.

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

A previously recognised impairment loss is increased or reversed depending on changes in circumstances. However, the
carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual
depreciation if there was no impairment.

1.1. j Inventories

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of the various items of
inventory is computed as under: In case of raw materials at weighted average cost plus direct expenses. The cost includes
cost of purchase and other costs incurred in bringing the inventories to their present location and condition.

In case of stores and spares at weighted average cost plus direct expenses. The cost includes cost of purchase and other
costs incurred in bringing the inventories to their present location and condition.

In case of work in progress at raw material cost plus conversion costs depending upon the stage of completion.

In case of finished goods at raw material cost plus conversion costs, packing cost, non recoverable indirect taxes (if
applicable) and other overheads incurred to bring the goods to their present location and condition.

In case of by-products at estimated realizable value.

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

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Mar 31, 2014

A. Basis of preparation of financial statements

The financial statement have been prepared to comply in all material respect with the mandatory Accounting standards issued by the Institute of Chartered Accountants of India, in accordance with Indian Generally Accepted Accounting Policies and as per the provision of the Companies Act, 1956. The financial statements are prepared as a going concern under the historical cost convention on an accrual basis.

b. Use of estimates

The preparation of financial statements requires management to make estimates and assumption that affect the reported amounts of assets and liabilities on the date of financial statements, the reported amount of revenues and expenses and the disclosures relating to contingent liabilities as on the date of financial statements. Actual results could differ from those of estimates. Any revision in accounting estimates is recognized in accordance with the respective accounting standard.

c. Revenue Recognition

i. Revenue is recognized to the extent that it is probable that the economic benefits will fow to the company and the revenue can be reliably measured.

ii. Revenue from sale of goods is recognised when the significant risks and rewards of ownership are transferred to the buyer under the terms of contract. Sales are after deducting sales return, claims etc.

iii. Revenue from services is recognized on accrual basis over the period of services. iv. Interest income is accrued at applicable interest rates.

d. Fixed Assets and Depreciation

Fixed Assets are stated at cost of acquisition/ construction less accumulated depreciation.

Cost includes direct expenses as well as administrative and other general overhead expenses that are Specifically attributable to construction or acquisition of fixed assets or binging the fixed assets to working condition and are allocated and capitalized as a part of the cost of the fixed assets.

Fixed Assets are depreciated on a straight-line basis at the rates specified in Schedule XIV of Companies Act, 1956. Proportionate depreciation is charged for addition / deletion during the year. Individual assets of value less than Rs. 5000/- are written off in the year of purchase.

e. Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date for indication of impairment based on internal/ external factors. An impairment loss is recognised wherever the carrying amount of the assets exceeds its recoverable value. Any such impairment loss is recognised by charging it to the Profit and loss account. An impairment loss recognized in prior accounting periods is reversed when it no longer exists and the asset is restated to that effect.

f. Investment:

i. Investments are valued at cost of acquisition.

ii. Investments are recorded as Long term investments unless they are expected to be sold within one year. Investments are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable.

g. Valuation if Inventories:

i. Cost of inventories is inclusive of taxes or duties incurred and is determined on FIFO basis except otherwise stated.

ii. Raw materials and Work in progress are being valued at cost or net realisable value whichever is lower.

iii. Packing materials are being valued at cost.

iv. Finished stocks are being valued at cost or net realisable value whichever is lower.

h. Miscellaneous Expenditure:

Miscellaneous expenditure, such as preliminary expenditure and share issue expenses are amortised over a period of 10 years.

i. Income from Investments:

Income from Investments is taken into revenue in full on declaration or on receipt and tax deducted at source thereon is treated as advance tax.

j. Provisions, Contingent Liabilities and Contingent Assets:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made. Contingent Assets are neither recognized nor disclosed.

k. Employee benefits:

No provision has been made for gratuity, leave encashment and other employee benefits. They will be accounted for as and when paid. Provident fund contribution is recognized as an expense in the statement of Profit and loss.

I. Earning Per Share:

The earnings considered in ascertaining the Company''s Earning Per Share (EPS) comprise the net Profit after tax. The number of shares used in computing the basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity share.

m. Tax on Income:

Tax expenses comprises of both current as well as deferred tax. Income tax represents the amount of income tax for the period determined in accordance with the Income tax Act, 1961.

- Deferred Tax:

The company provides for deferred tax using the liability method, based on the timing difference resulting from the recognition of items in the financial statements / and in estimating its current income tax provision. Deferred Tax Assets arising from temporary timing difference are recognized to the extent, there is reasonable certainty that the assets can be realized in future. Deferred tax assets are recognized only if there is a virtual certainty backed by convincing evidence of realization of such assets. Deferred tax assets and liabilities are reviewed as at each balance sheet date and are appropriately adjusted, to the extent considered necessary, to refect the amount that is reasonably or virtually certain to be realized are appropriately adjusted from the end of tax holiday exempted period, to the extent

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferen- tial amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2013

A. Basis of preparation of financial statements

The financial statement have been prepared to comply in all material respect with the mandatory Accounting standards issued by the Institute of Chartered Accountants of India, in accordance with Indian Generally Accepted Accounting Policies and as per the provision of the Companies Act, 1956. The financial statements are prepared as a going concern under the historical cost convention on an accrual basis.

b. Use of estimates

The preparation of financial statements requires management to make estimates and assumption that affect the reported amounts of assets and liabilities on the date of financial statements, the reported amount of revenues and expenses and the disclosures relating to contingent liabilities as on the date of financial statements. Actual results could differ from those of estimates. Any revision in accounting estimates is recognized in accordance with the respective accounting standard.

c. Revenue Recognition

i. 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.

ii. Revenue from sale of goods is recognised when the significant risks and rewards of ownership are transferred to the buyer under the terms of contract. Sales are after deducting sales return, claims etc.

iii. Revenue from services is recognized on accrual basis over the period of services, iv. Interest income is accrued at applicable interest rates.

d. Fixed Assets and Depreciation

Fixed Assets are stated at cost of acquisition/construction less accumulated depreciation. Cost includes direct expenses as well as administrative and other general overhead expenses that are specifically attributable to construction or acquisition of fixed assets or binging the fixed assets to working condition and are allocated and capitalized as a part of the cost of the fixed assets.

Fixed Assets are depreciated on a straight-line basis at the rates specified in Schedule XIV of Companies Act, 1956. Proportionate depreciation is charged for addition / deletion during the year. Individual assets of value less than Rs. 5000/- are written off in the year of purchase.

e. Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date for indication of impairment based on internal/ external factors. An impairment loss is recognised wherever the carrying amount of the assets exceeds its recoverable value. Any such impairment loss is recognised by charging it to the profit and loss account. An impairment loss recognized in prior accounting periods is reversed when it no longer exists and the asset is restated to that effect.

f. Investment:

i. Investments are valued at cost of acquisition.

ii. Investments are recorded as Long term investments unless they are expected to be sold within one year. Investments are reviewed for impairment if events or changes in circumstances indicate that the carrying amountmay not be recoverable.

g. Valuation if Inventories:

i. Cost of inventories is inclusive of taxes or duties incurred and is determined on FIFO basis except otherwise stated.

ii. Raw materials and Work in progress are being valued at cost or net realisable value whichever is lower.

iii. Packing materials are being valued at cost.

iv. Finished stocks are being valued at cost or net realisable value whichever is lower.

h. Miscellaneous Expenditure:

Miscellaneous expenditure, such as preliminary expenditure and share issue expenses are amortised overa period of 10 years.

i. Income from Investments:

Income from Investments is taken into revenue in full on declaration or on receipt and tax deducted at source thereon is treated as advance tax.

j. Provisions, Contingent Liabilities and Contingent Assets:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made. Contingent Assets are neither recognized nor disclosed.

k. Employee Benefits:

No provision has been made for gratuity, leave encashment and other employee benefits. They will be accounted for as and when paid. Provident fund contribution is recognized as an expense in the statement of profit and loss.

I. Earning PerShare:

The earnings considered in ascertaining the Company''s Earning Per Share (EPS) comprise the net profit aftertax. The number of shares used in computing the basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity share.

m. Tax on Income:

Tax expenses comprises of both current as well as deferred tax. Income tax represents the amount of income tax for the period determined in accordance with the Income tax Act, 1961.

Deferred Tax:

The company provides for deferred tax using the liability method, based on the timing difference resulting from the recognition of items in the financial statements / and in estimating its current income tax provision. Deferred Tax Assets arising from temporary timing difference are recognized to the extent, there is reasonable certainty that the assets can be realized in future. Deferred tax assets are recognized only if there is a virtual certainty backed by convincing evidence of realization of such assets. Deferred tax assets and liabilities are reviewed as at each balance sheet date and are appropriately adjusted, to the extent considered necessary, to reflect the amount that is reasonably or virtually certain to be realized are appropriately adjusted from the end of tax holiday exempted period, to the extent.

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Mar 31, 2012

A. Basis of preparation of financial statements

The financial statement have been prepared to comply in all material respect with the mandatory Accounting standards issued by the Institute of Chartered Accountants of India, in accordance with Indian Generally Accepted Accounting Policies and as per the provision of the Companies Act, 1956. The financial statements are prepared as a going concern under the historical cost convention on an accrual basis.

b. Use of estimates

The preparation of financial statements requires management to make estimates and assumption that affect the reported amounts of assets and liabilities on the date of financial statements, the reported amount of revenues and expenses and the disclosures relating to contingent liabilities as on the date of financial statements. Actual results could differ from those of estimates. Any revision in accounting estimates is recognized in accordance with the respective accounting standard.

c. Revenue Recognition

i. 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.

ii. Revenue from sale of goods is recognised when the significant risks and rewards of ownership are transferred to the buyer under the terms of contract. Sales are after deducting sales return, claims etc.

iii. Revenue from services is recognized on accrual basis over the period of services, iv. Interest income is accrued at applicable interest rates.

d. Fixed Assets and Depreciation

Fixed Assets are stated at cost of acquisition/construction less accumulated depreciation. Cost includes direct expenses as well as administrative and other general overhead expenses that are specifically attributable to construction or acquisition of fixed assets or binging the fixed assets to working condition and are allocated and capitalized as a part of the cost of the fixed assets.

Fixed Assets are depreciated on a straight-line basis at the rates specified in Schedule XIV of Companies Act, 1956. Proportionate depreciation is charged for addition / deletion during the year. Individual assets of value less than Rs.5000/- are written off in the year of purchase.

e. Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date for indication of impairment based on internal/ external factors. An impairment loss is recognised wherever the carrying amount of the assets exceeds its recoverable value. Any such impairment loss is recognised by charging it to the profit and loss account. An impairment loss recognized in prior accounting periods is reversed when it no longer exists and the asset is restated to that effect.

f. Investment:

i. Investments are valued at cost of acquisition.

ii. Investments are recorded as Long term investments unless they are expected to be sold within one year. Investments are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable.

g. Valuation if Inventories:

i. Cost of inventories is inclusive of taxes or duties incurred and is determined on FIFO basis except otherwise stated.

ii. Raw materials and Work in progress are being valued at cost or net realisable value whichever is lower.

iii. Packing materials are being valued at cost.

iv. Finished stocks are being valued at cost or net realisable value whichever is lower.

h. Miscellaneous Expenditure:

Miscellaneous expenditure, such as preliminary expenditure and share issue expenses are amortised over a period of 10 years,

i. Income from Investments:

Income from Investments is taken into revenue in full on declaration or on receipt and tax deducted at source thereon is treated as advance tax.

j. Provisions, Contingent Liabilities and Contingent Assets:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made. Contingent Assets are neither recognized nor disclosed.

k. Employee Benefits

No provision has been made for gratuity, leave encashment and other employee benefits. They will be accounted for as and when paid. Provident fund contribution is recognized as an expense in the statement of profit & loss.

I. Earning Per Share:

The earnings considered in ascertaining the Company's Earning Per Share (EPS) comprise the net profit after tax. The number of shares used in computing the basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity share.

m. Tax on Income

Tax expenses comprises of both current as well as deferred tax. Income tax represents the amount of income tax for the period determined in accordance with the Income tax Act, 1961.

- Deferred Tax

The company provides for deferred tax using the liability method, based on the timing difference resulting from the recognition of items in the financial statements / and in estimating its current income tax provision. Deferred Tax Assets arising from temporary timing difference are recognized to the extent, there is reasonable certainty that the assets can be realized in future. Deferred tax assets are recognized only if there is a virtual certainty backed by convincing evidence of realization of such assets. Deferred tax assets and liabilities are reviewed as at each balance sheet date and are appropriately adjusted, to the extent considered necessary, to reflect the amount that is reasonably or virtually certain to be realized are appropriately adjusted from the end of tax holiday exempted period, to the extent

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Mar 31, 2011

A. Basis of preparation of financial statements

The financial statement have been prepared to comply in all material respect with the mandatory Accounting standards issued by the Institute of Chartered Accountants of India, in accordance with Indian Generally Accepted Accounting Policies and as per the provision of the Companies Act, 1956. The financial statements are prepared as a going concern under the historical cost convention on an accrual basis.

b. Use of estimates

The preparation of financial statements requires management to make estimates and assumption that affect the reported amounts of assets and liabilities on the date of financial statements, the reported amount of revenues and expenses and the disclosures relating to contingent liabilities as on the date of financial statements. Actual results could differ from those of estimates. Any revision in accounting estimates is recognized in accordance with the respective accounting standard.

c. Revenue Recognition

i. 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.

ii. Revenue from sale of goods is recognised when the significant risks and rewards of ownership are transferred to the buyer under the terms of contract. Sales are after deducting sales return, claims etc.

iii. Revenue from services is recognized on accrual basis over the period of services. iv. Interest income is accrued at applicable interest rates.

d. Fixed Assets and Depreciation

Fixed Assets are stated at cost of acquisition/construction less accumulated depreciation. Cost includes direct expenses as well as administrative and other general overhead expenses that are specifically attributable to construction or acquisition of fixed assets or binging the fixed assets to working condition and are allocated and capitalized as a part of the cost of the fixed assets.

Fixed Assets are depreciated on a straight-line basis at the rates specified in Schedule XIV of Companies Act, 1956. Proportionate depreciation is charged for addition / deletion during the year. Individual assets of value less than Rs.5000 are written off in the year of purchase.

e. Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date for indication of impairment based on internal/ external factors. An impairment loss is recognised wherever the carrying amount of the assets exceeds its recoverable value. Any such impairment loss is recognised by charging it to the profit and loss account. An impairment loss recognized in prior accounting periods is reversed when it no longer exists and the asset is restated to that effect.

f. Investment:

i. Investments are valued at cost of acquisition.

ii. Investments are recorded as Long term investments unless they are expected to be sold within one year. Investments are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable.

g. Valuation if Inventories:

i. Cost of inventories is inclusive of taxes or duties incurred and is determined on FIFO basis except otherwise stated.

ii. Raw materials and Work in progress are being valued at cost or net realisable value whichever is lower.

iii. Packing materials are being valued at cost.

iv. Finished stocks are being valued at cost or net realisable value whichever is lower. h. Miscellaneous Expenditure:

Miscellaneous expenditure, such as preliminary expenditure and share issue expenses are amortised over a period of 10 years.

i. Income from Investments:

Income from Investments is taken into revenue in full on declaration or on receipt and tax deducted at source thereon is treated as advance tax.

j. Provisions, Contingent Liabilities and Contingent Assets:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made. Contingent Assets are neither recognized nor disclosed.

k. Employee Benefits

No provision has been made for gratuity, leave encashment and other employee benefits. They will be accounted for as and when paid. Provident fund contribution is recognized as an expense in the profit & loss account.

l. Earning Per Share:

The earnings considered in ascertaining the Company's Earning Per Share (EPS) comprise the net profit after tax. The number of shares used in computing the basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity share.

m. Tax on Income

Tax expenses comprises of both current as well as deferred tax. Income tax & fringe benefit tax represents the amount of income tax for the period determined in accordance with the Income tax Act, 1961.

- Deferred Tax

The company provides for deferred tax using the liability method, based on the timing difference resulting from the recognition of items in the financial statements / and in estimating its current income tax provision. Deferred Tax Assets arising from temporary timing difference are recognized to the extent, there is reasonable certainty that the assets can be realized in future. Deferred tax assets are recognized only if there is a virtual certainty backed by convincing evidence of realization of such assets. Deferred tax assets and liabilities are reviewed as at each balance sheet date and are appropriately adjusted, to the extent considered necessary, to reflect the amount that is reasonably or virtually certain to be realized are appropriately adjusted from the end of tax holiday exempted period, to the extent

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Mar 31, 2010

A. Basis of preparation of financial statements

The financial statement have been prepared to comply in all material respect with the mandatory Accounting standards issued by the Institute of Chartered Accountants of India, in accordance with Indian Generally Accepted Accounting Policies and as per the provision of the Companies Act, 1956. The financial statements are prepared as a going concern under the historical cost convention on an accrual basis.

b. Use of estimates

The preparation of financial statements requires management to make estimates and assumption that affect the reported amounts of assets and liabilities on the date of financial statements, the reported amount of revenues and expenses and the disclosures relating to contingent liabilities as on the date of financial statements. Actual results could differ from those of estimates. Any revision in accounting estimates is recognized in accordance with the respective accounting standard.

c. Revenue Recognition

i. 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.

ii. Revenue from sale of goods is recognised when the significant risks and rewards of ownership are transferred to the buyer

under the terms of contract. Sales are after deducting sales return, claims etc.

iii. Revenue from services is recognized on accrual basis over the period of services. iv. Interest income is accrued at applicable interest rates.

d. Fixed Assets and Depreciation

Fixed Assets are stated at cost of acquisition/construction less accumulated depreciation. Cost includes direct expenses as well as administrative and other general overhead expenses that are specifically attributable to construction or acquisition of fixed assets or binging the fixed assets to working condition and are allocated and capitalized as a part of the cost of the fixed assets.

Fixed Assets are depreciated on a straight-line basis at the rates specified in Schedule XIV of Companies Act, 1956. Proportionate depreciation is charged for addition / deletion during the year. Individual assets of value less than Rs.5000 are written off in the year of purchase.

e. Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date for indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of the assets exceeds its recoverable value. Any such impairment loss is recognised by charging it to the profit and loss account. An impairment loss recognized in prior accounting periods is reversed when it no longer exists and the asset is restated to that effect.

f. Investment:

i. Investments are valued at cost of acquisition.

ii. Investments are recorded as Long term investments unless they are expected to be sold within one year. Investments are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable.

g. Valuation if Inventories:

i. Cost of inventories is inclusive of taxes or duties incurred and is determined on FIFO basis except otherwise stated.

ii. Raw materials and Work in progress are being valued at cost or net realisable value whichever is lower.

iii. Packing materials are being valued at cost.

iv. Finished stocks are being valued at cost or net realisable value whichever is lower.

h. Miscellaneous Expenditure:

Miscellaneous expenditure, such as preliminary expenditure and share issue expenses are amortised over a period of 10years.

i. Income from Investments:

Income from Investments is taken into revenue in full on declaration or on receipt and tax deducted at source thereon is treated as advance tax.

j. Provisions, Contingent Liabilities and Contingent Assets:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made. Contingent Assets are neither recognized nor disclosed.

k. Employee Benefits

No provision has been made for gratuity, leave encashment and other employee benefits. They will be accounted for as and when paid. Providentfund contribution is recognized as an expense in the profit & loss account.

l. Earning Per Share:

The earnings considered in ascertaining the Companys Earning Per Share (EPS) comprise the net profit after tax. The number of shares used in computing the basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity share.

m. Tax on Income

Tax expenses comprises of both current as well as deferred tax. Income tax & fringe benefit tax represents the amount of incometaxforthe period determined in accordance with the IncometaxAct, 1961.

- Deferred Tax

The company provides for deferred tax using the liability method, based on the timing difference resulting from the

recognition of items in the financial statements / and in estimating its current income tax provision. Deferred Tax Assets arising from temporary timing difference are recognized to the extent, there is reasonable certainty that the assets can be realized in future. Deferred tax assets are recognized only if there is a virtual certainty backed by convincing evidence of realization of such assets. Deferred tax assets and liabilities are reviewed as at each balance sheet date and are appropriately adjusted, to the extent considered necessary, to reflect the amount that is reasonably or virtually certain to be realized are appropriately adjusted from the end of tax holiday exempted period, to the extent