Accounting Policies of GTV Engineering Ltd. Company

Mar 31, 2025

MATERIAL ACCOUNTING POLICIES

1. Corporate information

GTV Engineering Ltd. is a Limited company incorporated on 4^th December1990. The company is
engaged in Hi-tech steel fabrication having its manufacturing unit at Plot No.216-218, Industrial
Area, Mandideep, Dist. Raisen and a Flour Mill at Plot No.K-20-22, Industrial Area, Malanpur,
Dist. Bhind.

2. Statement of compliance

The standalone Ind AS financial statements of the Company have been prepared in accordance
with the Indian Accounting Standards (Ind AS) specified under Section 133 of the Companies
Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended
from time to time) and presentation requirements of Division II of Schedule III to the Companies
Act, 2013 (IND AS compliant Schedule III), to the extent applicable.

3. Application of New Accounting Pronouncements The Company has applied the following Ind
AS pronouncements pursuant to issuance of the Companies (Indian Accounting Standards)
Amendment Rules, 2023 with effect from 1st April, 2023. The effect is described below :

a. Ind AS 1 - Presentation of Financial Statements - The amendment requires disclosure of
material accounting policies instead of significant accounting policies. In the Financial
Statements the disclosure of accounting policies has been accordingly modified. The
impact of such modifications to the accounting policies is insignificant.

b. Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - The
amendment has defined accounting estimate as well as laid down the treatment of
accounting estimate to achieve the objective set out by accounting policy. There is no
impact of the amendment on the Financial Statements.

c. Ind AS 12 - Income taxes - the definition of deferred tax asset and deferred tax liability
is amended to apply initial recognition exception on assets and liabilities that does not
give rise to equal taxable and deductible temporary differences. There is no impact of the
amendment on the Financial Statement

4 Current / Non-Current Classification Any asset or liability is classified as current if it satisfies
any of the following conditions :

I. the asset/liability is expected to be realized/ settled in the Company’s normal
operating cycle;

II. the asset is intended for sale or consumption;

III. the asset/liability is held primarily for the purpose of trading

IV. the asset/liability is expected to be realized/ settled within twelve months after the
reporting period;

V. the asset is cash or cash equivalent unless it is restricted from being exchanged or
used to settle a liability for at least twelve months after the reporting date;

VI. in the case of a liability, the Company does not have an unconditional right to defer
settlement of the liability for at least twelve months after the reporting date.

All other assets and liabilities are classified as noncurrent. For the purpose of current/non-current

classification of assets and liabilities, the Company has ascertained its normal operating cycle as
twelve months. This is based on the nature of services and the time between the acquisition of
assets or inventories for processing and their realisation in cash and cash equivalents.

5 Basis of preparation

a These Financial statements have been prepared on historical cost basis except for certain financial
instruments and defined benefit plans which are measured at fair value or amortised cost at the end of
each reporting period. 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. All
assets and liabilities have been classified as current and non-current as per the Group’s normal
operating cycle. Based on the nature of services rendered to customers and time elapsed between
deployment of resources and the realization in cash and cash equivalents of the consideration for such
services rendered, the Group has considered an operating cycle of 12months.

The statement of cash flows have been prepared under indirect method, where by profit or loss is
adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments and items of income or expense associated with investing or
financing cash flows. The cash flows from operating, investing and financing activities are segregated.

Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies
are not retranslated.

Historical cost is generally based on the fair value of the consideration given in exchange for
goods and services. The standalone Ind AS financial statements of the Company are presented in
Indian Rupee.

b. Property, plant and equipment Measurement at recognition :

An item of property, plant and equipment (PPE) that qualifies as an asset is measured on initial
recognition at cost. Following initial recognition, items of PPE are carried at their cost less
accumulated depreciation and accumulated impairment losses, if any. Item of PPE which reflects
significant cost and has different useful life from the remaining part of PPE is recognized as a
separate component.

The cost of an item of PPE comprises of its purchase price net of discounts, if any including
import duties and other non-refundable taxes or levies and directly attributable cost of bringing
the asset to its working condition for its intended use and the initial estimate of decommissioning,
restoration and similar liabilities, if any. Cost includes cost of replacing a part of a plant and
equipment if the recognition criteria are met. Expenses like plans, designs, and drawings of
buildings or plant and machinery, borrowing cost on qualifying assets, directly attributable to
new manufacturing facility during its construction period are capitalized under the relevant head
of PPE if the recognition criteria are met.

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 accounted for as a separate asset is derecognized when replaced.

Items such as spare parts, stand-by equipment and servicing equipment that meet the definition of
PPE are capitalized at cost and depreciated over their useful life. Costs in nature of repairs and
maintenance are recognized in the Statement of Profit and Loss as and when incurred.

The Company had elected to consider the carrying value of all its PPE appearing in the Financial
Statements and used the same as deemed cost in the opening Ind AS Balance Sheet prepared on
1st April, 2015.

Capital work in progress and Capital advances :

Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work
in progress. Advances given towards acquisition of fixed assets outstanding at each Balance
Sheet date are disclosed as Other Non-Current Assets

Depreciation :

Depreciation on each part of an item / component of PPE is provided on pro-rata basis using the
Straight-Line Method based on the expected useful life of the asset and is charged to the
Statement of Profit and Loss as per the requirement of Schedule II of the Companies Act, 2013.
The estimated useful life has been assessed based on technical evaluation, taking into account the
nature of the asset and the estimated usage basis management’s best judgement of economic
benefits from those classes of assets.

below : Years Factory Buildings 30

Buildings (other than factory buildings) 60

Plant and Equipment (including continuous process plants)* 10-20

Scientific research equipment* 8

Furniture and Fixtures 8

Office Equipment 5

Vehicles* 5

Information Technology Hardware* 4

Freehold land is not depreciated. Leasehold improvements are amortised over the period of the
lease. *The useful life assessed by the Management is different than those indicated in Schedule
II of the Companies Act, 2013. The useful lives, residual values of each part of an item of PPE
and the depreciation methods are reviewed at the end of each financial year. If any of these
expectations differ from previous estimates, such change is accounted for as a change in an
accounting estimate.

De recognition :

The carrying amount of an item of PPE is derecognized on disposal or when no future economic
benefits are expected from its use or disposal. The gain or loss arising from the derecognition of
an item of PPE is measured as the difference between the net disposal proceeds and the carrying
amount of the item and is recognized in the Statement of Profit and Loss when the item is
derecognized.

c Use of Estimates

The preparation of the financial statements in conformity with the recognition and measurement
principles of Ind AS requires the Management to make estimates and assumptions considered in
the reported amounts of assets and liabilities (including contingent liabilities) and the reported
income and expenses during the year. The Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable. Future results could differ
due to these estimates and the differences between the actual results and the estimates are
recognised in the periods in which the results are known / materialise.

d Revenue Recognition

Revenue from contracts with customers is recognised on transfer of control of promised goods or
services to a customer at an amount that reflects the consideration to which the Company is
expected to be entitled to in exchange for those goods or services. It is measured at transaction
price (net of variable consideration on account of various discounts and schemes offered by the
Company as part of the contract) allocated to that performance obligation. This variable
consideration is estimated based on the expected value of outflow. Revenue (net of variable
consideration) is recognised only to the extent that it is highly probable that the amount will not
be subject to significant reversal when uncertainty relating to its recognition is resolved.

e. Sales of Product

i. Revenue from sale of products is recognised at the point in time when control of the
asset is transferred to the customer. Amounts disclosed as revenue are net of returns
and allowances, trade discounts and rebates. The Company collects Goods & Service
Tax (GST) on behalf of the government and therefore, these are not economic
benefits flowing to the Company. Hence, these are excluded from the revenue.

ii. Variable consideration includes trade discounts, volume rebates and incentives, etc.
The Company estimates the variable consideration with respect to above based on an
analysis of accumulated historical experience. The Company adjusts estimate of
revenue at the earlier of when the most likely amount of consideration we expect to
receive changes or when the consideration becomes fixed.

iii. No significant uncertainty exists regarding the amount of the consideration that will
be derived from the sale of goods.

f Export Incentives

The revenue in respect of duty drawback and similar other export benefits is recognized on post
export basis at the rate at which the entitlements accrue and is included in the ‘sale of products’
g Interest Income

Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the rate applicable

h Government Grants/Subsidies

The Company recognises grant as income when there is a reasonable assurance that the Company
will comply with all necessary conditions attached to them and the grant will be received in
accordance with Ind AS 20, Accounting for Government Grants and Disclosure of Government
Assistance. The Company is entitled to certain non-refundable subsidies from government in
respect of manufacturing units located in specified regions which are measured at amounts
receivable from the government.

The Company has received refundable government loans at below-market rate of interest which
are accounted in accordance with the recognition and measurement principles of Ind AS 109,
Financial Instruments. The benefit of below-market rate of interest is measured as the difference
between the initial carrying value of loan determined in accordance with Ind AS 109 and the
proceeds received.

Income from such benefits is recognised on a systematic basis over the period in which the
related costs that are intended to be compensated by such grants are recognised.

Presentation :

Income from the above grants and subsidies are presented under Revenue from Operations.
i Borrowing costs

Borrowing costs include interest and amortisation of ancillary costs incurred in relation to
borrowings. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the
period from commencement of activities relating to construction/development of the qualifying
asset upto the date of capitalisation of such asset are added to the cost of the assets. Qualifying
asset is one that necessarily takes substantial period of time to get ready for its intended use.
Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the
borrowing costs.

All other borrowing costs are recognised in statement of profit and loss in the period in which
they are incurred
j Income taxes

Tax expense is the aggregate amount included in the determination of profit or loss for the period
in respect of current tax and deferred tax.

Current tax expense for the year is ascertained on the basis of assessable profits computed in
accordance with the provisions of the Income Tax Act, 1961. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted, at the reporting date.
Deferred tax is recognised using the liability method on temporary differences between the
carrying amounts of assets and liabilities in the standalone Ind AS financial statements and the
corresponding tax bases used in the computation of taxable profit. Deferred tax assets are
generally recognised for all deductible temporary differences, the carry forward of unused tax
credits and unused tax losses 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

Current and deferred tax are recognised in statement of profit and 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. Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and considers whether
it is probable that a taxation authority will accept an uncertain tax treatment. The Company shall
reflect the effect
h Employee Benefits

The Company has schemes of employees benefits such as Provident fund, ESIC and
Compensated absences, which are dealt with as under:

Defined Contribution- Provident fund is the defined contribution scheme. The contribution to
this scheme is charged to statement of profit and loss of the year in which contribution to such
scheme become due and when services are rendered by the employees. The Company has no
obligation other than the contribution payable to the provident fund. If the contribution payable to
the scheme for services received before the balance sheet date exceeds the contribution already
paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution
already paid. If the contribution already paid exceeds the contribution due for services received
before the balance sheet date, then excess is recognized as an asset to the extent that the pre¬
payment will lead to, for example, a reduction in future payment or a cash refund.

Short-term employee benefits- The undiscounted amount of short-term employee benefits
expected to be paid in exchange for the services rendered by employees are recognised on an
undiscounted accrual basis during the year when the employees render the services. These
benefits include performance incentive and compensated absences which are expected to occur
within twelve months after the end of the period in which the employee renders the related
services

• Long-term employee benefits- Compensated absences which are not expected to occur
within twelve months after the end of the period in which the employee renders the
related service are recognised as a liability at the present value of the defined benefit
obligation as at the Balance Sheet date.

• Employee Provident Fund -The eligible employees of the Company are entitled to
receive post-employment benefits in respect of provident fund, in which both the
employees and the Company makes monthly contributions at a specified percentage of
the employees’ eligible salary.

• Leave Encashment -The Company provides for encashment of leave or leave with pay
subject to certain rules. The employees are entitled to accumulate leave subject to certain
limits for future encashment/availment. The Company makes provision for compensated
absences

i Inventories

Raw materials, work-in-progress, finished goods, packing materials, stores, spares, components,
consumables and stock-in-trade are carried at the lower of cost and net realisable value. However,
materials and other items held for use in production of inventories are not written down below
cost if the finished goods in which they will be incorporated are expected to be sold at or above
cost. Net realisable value is the estimated selling price in the ordinary course of business less
estimated cost of completion and estimated costs necessary to make the sale.

Cost of inventory is determined on weighted average basis. Cost of inventory comprises all costs
of purchase, non-refundable duties and taxes, cost of conversion including an appropriate share
of fixed and variable production overheads and all other costs incurred in bringing the inventory
to their present location and condition.

The Company considers factors like estimated shelf life, product discontinuances and ageing of
inventory in determining the provision for slow moving, obsolete and other non-saleable

inventory and adjusts the inventory provisions to reflect the recoverable value of inventory.
j Foreign Currency Transactions

Foreign currency transactions are recorded on initial recognition at the rate prevailing on the date
of transaction. Where export bills are negotiated with the bank, the export sales are recorded at
the rate on the date of negotiation as the said rate approximates the actual rate at the date of the
transaction.

Foreign currency monetary items are reported using the closing rate. Exchange differences
arising on the settlement of monetary items or on reporting the same at the closing rate as at the
balance sheet date are recognized as income or expense in the period in which they arise.

Forward exchange contracts other than those entered in to hedge foreign currency risk of firm
commitments or highly probable forecast transactions are translated at period end exchange rates
and the resultant gains and losses as well as the gains and losses on cancellation of such contracts
are recognised in the statement of Profit & Loss.

Any income or expenses on account of exchange difference either on settlement or on
translation is recognised in the Profit and Loss account except in case of long term liabilities,
where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying
cost of such assets.

The company used forward foreign exchange contract to hedge its exposure against movement in
foreign exchange rates.

k Earnings per share

Basic earnings per share is calculated by dividing the net profit attributable to the equity
shareholders of the Company with the weighted average number of equity shares outstanding
during the financial year, adjusted for treasury shares.

l Exceptional items :

An ordinary item of income or expense which by its size, nature, occurrence or incidence
requires a disclosure in order to improve understanding of the performance of the Company is
treated as an exceptional item in the Statement of Profit and Loss account.

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Mar 31, 2024

significant accounting policies

1. Corporate information

GTV Engineering Ltd. is a Limited company incorporated on 4^th December 1990. The company is engaged in Hi-tech steel fabrication having its manufacturing unit at Plot No.216-218, Industrial Area, Mandideep, Dist. Raisen and a Flour Mill at Plot No.K-20-22, Industrial Area, Malanpur, Dist. Bhind.

2. Statement of compliance

The standalone Ind AS financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) specified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) and presentation requirements of Division II of Schedule III to the Companies Act, 2013 (IND AS compliant Schedule III), to the extent applicable.

2. Basis of preparation

These Financial statements have been prepared on historical cost basis except for certain financial instruments and defined benefit plans which are measured at fair value or amortised cost at the end of each reporting period. 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. All assets and liabilities have been classified as current and non-current as per the Group''s normal operating cycle. Based on the nature of services rendered to customers and time elapsed between deployment of resources and the realization in cash and cash equivalents of the consideration for such services rendered, the Group has considered an operating cycle of 12 months.

The statement of cash flows have been prepared under indirect method, where by profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

Non-monetaryassets and liabilities that are measured in terms of historical cost in foreign currencies are not re translated

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. The standalone Ind AS financial statements of the Company are presented in Indian Rupee .

3 Use of Estimates

The preparation of the financial statements in conformity with the recognition and measurement principles of Ind AS requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

4 Revenue Recognition

Revenue from Sale of Goods is recognised when control of the goods is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods

(a) Sales of Product

Revenue from sale of products is recognised at the point in time when control of the asset is transferred to the customer. Amounts disclosed as revenue are net of returns and allowances, trade discounts and rebates. The Company collects Goods & Service Tax (GST) on behalf of the government and therefore, these are not economic benefits flowing to the Company. Hence, these are excluded from the revenue.

Variable consideration includes trade discounts, volume rebates and incentives, etc. The Company estimates the variable consideration with respect to above based on an analysis of accumulated historical experience. The Company adjusts estimate of revenue at the earlier of when the most likely amount of consideration we expect to receive changes or when the consideration becomes fixed.

No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

(b) Export Incentives

The revenue in respect of duty drawback and similar other export benefits is recognized on post export basis at the rate at which the entitlements accrue and is included in the ''sale of products''

(c) Interest Income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable

(d) Government Grants/Subsidies

Government grants available to the Company are recognized when there is a reasonable assurance of compliance with the conditions attached to such grants and where benefits in respect thereof have been earned and it is reasonably certain that the ultimate collection will be made. Grants related to depreciable assets are treated as deferred income which is recognised in the profit and loss statement on a systematic and rational basis over the useful life of the asset. Such allocation to income is usually made over the periods and in the proportions in which depreciation on related assets is charged. Grants in the nature of subsidies related to revenue are recognized in the statement of

Profit and Loss over the period in which the corresponding costs are incurred and are recorded on approval basis.

5 Borrowing costs

Borrowing costs include interest and amortisation of ancillary costs incurred in relation to borrowings. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction/ development of the qualifying asset upto the date of capitalisation of such asset are added to the cost of the assets. Qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

All other borrowing costs are recognised in statement of profit and loss in the period in which they are incurred

6 Income taxes

Income tax expense comprises current income tax

Current tax expense for the year is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income Tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred tax is recognised using the liability method on temporary differences between the carrying amounts of assets and liabilities in the standalone Ind AS financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax assets are generally recognised for all deductible temporary differences, the carry forward of unused tax credits and unused tax losses 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.

Current and deferred tax are recognised in statement of profit and 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. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company shall reflect the effect.

7 Employee Benefits

The Company has schemes of employees benefits such as Provident fund, ESIC and Compensated absences, which are dealt with as under:

Defined Contribution- Provident fund is the defined contribution scheme. The contribution to this scheme is charged to statement of profit and loss of the year in which contribution to such scheme become due and when services are rendered by the employees. The Company has no obligation other than the contribution payable to the provident fund. If the contribution payable to the scheme for services received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the prepayment will lead to, for example, a reduction in future payment or a cash refund.

Short-term employee benefits- The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised on an undiscounted accrual basis during the year when the employees render the services. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related services_

• Long-term employee benefits- Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date.

• Employee Provident Fund -The eligible employees of the Company are entitled to receive post-employment benefits in respect of provident fund, in which both the employees and the Company makes monthly contributions at a specified percentage of the employees'' eligible salary.

• Leave Encashment -The Company provides for encashment of leave or leave

with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits for future encashment/availment. The Company makes provision for compensated absences_

8 Property, Plant and Equipment

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

Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognised impairment loss. Property, plant and equipment except freehold land acquired before the date of transition to Ind AS is carried at cost net of accumulated depreciation and accumulated impairment losses if any. Freehold land acquired before the date of transition to Ind AS are carried at deemed cost being fair value as at the date of transition to Ind AS. Cost comprises of its purchase price including non-refundable duties and taxes and excluding any trade discount and rebates and any directly attributable costs of bringing the asset to it working condition and location for its intended use. Cost also includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the

Company''s accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets commences when the assets are ready for their intended use.

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

9 Depreciation on tangible assets

Depreciable amount for assets is the cost (net of amount received towards government grant) of an asset, or other amount substituted for cost, less its estimated residual value

Depreciation on tangible property, plant and equipment has been provided on the straightline method as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the following categories of assets, in whose case the life of the assets has been assessed as under 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.

10 Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

11 Expenditure incurred during construction period

In respect of new/major expansion of units, the indirect expenditure incurred during construction period upto the date of the commencement of commercial production, which is attributable to the construction of the project, is capitalized on various categories of fixed assets on proportionate basis.

12 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 cost plus direct expenses.

• In case of stores and spares at weighted average cost plus direct expenses.

• 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 and other overheads incurred to bring the goods to their present location and condition.

13 Foreign Currency Transactions

(a) Foreign currency transactions are recorded on initial recognition at the rate prevailing on the date of transaction. Where export bills are negotiated with the bank, the export sales are recorded at the rate on the date of negotiation as the said rate approximates the actual rate at the date of the transaction.

(b) Foreign currency monetary items are reported using the closing rate. Exchange differences arising on the settlement of monetary items or on reporting the same at the closing rate as at the balance sheet date are recognized as income or expense in the period in which they arise.

(c) ird exchange contracts other than those entered in to hedge foreign currency risk of firm commitments or highly probable forecast transactions are translated at period end exchange rates and the resultant gains and losses as well as the gains and losses on cancellation of such contracts are recognised in the statement of Profit & Loss.

(d) Any income or expenses on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

(e) The company used forward foreign exchange contract to hedge its exposure against movement in foreign exchange rates.

14 Earnings per share

Basic earnings per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the number of equity shares outstanding during the period.

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Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

1. Corporate information

GTV Engineering Ltd. is a Limited company incorporated on 4^thDecemberl990. The company is engaged in Hi-tech steel fabrication having its manufacturing unit at Plot No.216-218, Industrial Area, Mandideep, Dist. Raisen and a Flour Mill at Plot No.K-20-__22, Industrial Area, Malanpur, Dist. Bhind ._

2. Statement of compliance_

The standalone Ind AS financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) specified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) and presentation requirements of Division II of Schedule III to the Companies Act, 2013 (IND AS compliant Schedule III), to the

__extent applicable._

2. Basis of preparation

These Financial statements have been prepared on historical cost basis except for certain financial instruments and defined benefit plans which are measured at fair value or amortised cost at the end of each reporting period. 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. All assets and liabilities have been classified as current and non-current as per the Group''s normal operating cycle. Based on the nature of services rendered to customers and time elapsed between deployment of resources and the realisation in cash and cash equivalents of the consideration for such services rendered, the Group has considered an operating cycle of 12 months.

The statement of cash flows have been prepared under indirect method, whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. The cash flows from operating, investing and financingactivities are segregated.

Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not retranslated

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. The standalone Ind AS financial statements of the Company are presented in Indian Rupee .

The classification of assets and liabilities of the company into current or non-current is based on the criterion specified in the Ind AS . The company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of

__assets and liabilities._

3 Use of Estimates__

The preparation of the financial statements f o m\mX with the recognition and

__measurement principles of Ind AS requires (fop,^gn%qmant to make estimates and

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assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise._

4 Revenue Recognition

Revenue from Sale of Goods is recognised when control of the goods is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods_

(a) Sales of Product

Revenue from sale of products is recognised at the point in time when control of the asset is transferred to the customer. Amounts disclosed as revenue are net of returns and allowances, trade discounts and rebates. The Company collects Goods & Service Tax (GST) on behalf of the government and therefore, these are not economic benefits

__flowing to the Company. Hence, these are excluded from the revenue._

Variable consideration includes trade discounts, volume rebates and incentives, etc. The Company estimates the variable consideration with respect to above based on an analysis of accumulated historical experience. The Company adjusts estimate of revenue at the earlier of when the most likely amount of consideration we expect to receive

changes or when the consideration becomes fixed._

No significant uncertainty exists regarding the amount of the consideration that will be __derived from the sale of goods._

(b) Export Incentives

The revenue in respect of duty drawback and similar other export benefits is recognized on post export basis at the rate at which the entitlements accrue and is included in the __''sale of products''__

(c) Interest Income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable

(d) Government Grants/Subsidies

Government grants available to the Company are recognized when there is a reasonable assurance of compliance with the conditions attached to such grants and where benefits in respect thereof have been earned and it is reasonably certain that the ultimate collection will be made. Grants related to depreciable assets are treated as deferred income which is recognised in the profit and loss statement on a systematic and rational basis over the useful life of the asset. Such allocation to income is usually made over the periods and in the proportions in which depreciation on related assets is charged. Grants in the nature of subsidies related to revenue are recognized in the statement of Profit and Loss over the period in which the corresponding costs

are incurred and are recorded on approval basis._

5 Borrowing costs

Borrowing costs include interest and amortisation of ancillary costs incurred in relation to borrowings. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction/development of the qualifying^p^fomto the date of capitalisation of such asset are added to the cost of the assets/^uSlSyiim^sset is one that necessarily takes __substantial period of time to get ready Borrowing cost also includes

exchange differences to the extent regarded as an adjustment to the borrowing costs.

All other borrowing costs are recognised in statement of profit and loss in the period in __which they are incurred_

6 Income taxes

Income tax expense comprises current income tax

Current tax expense for the year is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income Tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively

__enacted, at the reporting date._

Deferred tax is recognised using the liability method on temporary differences between the carrying amounts of assets and liabilities in the standalone Ind AS financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax assets are generally recognised for all deductible temporary differences, the carry forward of unused tax credits and unused tax losses 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_

Current and deferred tax are recognised in statement of profit and 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. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company _ shall reflect the effect_

7 Employee Benefits

The Company has schemes of employees benefits such as Provident fund, ESIC and

Compensated absences, which are dealt with as under:_

Defined Contribution- Provident fund is the defined contribution scheme. The contribution to this scheme is charged to statement of profit and loss of the year in which contribution to such scheme become due and when services are rendered by the employees. The Company has no obligation other than the contribution payable to the provident fund. If the contribution payable to the scheme for services received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre-

__payment will lead to, for example, a reduction in future payment or a cash refund._

Short-term employee benefits- The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised on an undiscounted accrual basis during the year when the employees render the services. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period

__in which the employee renders the related services_

• Long-term employee benefits- Cdm^ete^ted absences which are not expected

_to occur within twelve months ^gf''thg^pqcm the period in which the employee

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renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date.

• Employee Provident Fund -The eligible employees of the Company are entitled to receive post-employment benefits in respect of provident fund, in which both the employees and the Company makes monthly contributions at a specified percentage of the employees'' eligible salary.

• Leave Encashment -The Company provides for encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits for future encashment/availment. The Company makes

__provision for compensated absences_

8 Property, Plant and Equipment

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

__depreciated and have been measured at cost,_

Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognised impairment loss. Property, plant and equipment except freehold land acquired before the date of transition to Ind AS is carried at cost net of accumulated depreciation and accumulated impairment losses if any. Freehold land acquired before the date of transition to Ind AS are carried at deemed cost being fair value as at the date of transition to Ind AS. Cost comprises of its purchase price including non-refundable duties and taxes and excluding any trade discount and rebates and any directly attributable costs of bringing the asset to it working condition and location for its intended use. Cost also includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Company''s accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets commences when the assets are ready for their

__intended use__

Gains or losses arising from derecognition of the assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are __recognized in the statement of profit and loss when the asset is derecognized._

9 Depreciation on tangible assets

Depreciable amount for assets is the cost (net of amount received towards government

__grant) of an asset, or other amount substituted for cost, less its estimated residual value

Depreciation on tangible property, plant and equipment has been provided on the straightline method as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the following categories of assets, in whose case the life of the assets has been assessed as under 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._

10 Impairment of Assets

Tire carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment __loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

11 Expenditure incurred during construction period

In respect of new/major expansion of units, the indirect expenditure incurred during construction period upto the date of the commencement of commercial production, which is attributable to the construction of the project, is capitalized on various __categories of fixed assets on proportionate basis._

12 Inventories

Inventories are valued at cost or net realizable value, whichever is lower. Tire cost in respect of the various items of inventory is computed as under:

• In case of raw materials at cost plus direct expenses.

• In case of stores and spares at weighted average cost plus direct expenses.

• 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 and

__other overheads incurred to bring the goods to their present location and condition._

13 Foreign Currency Transactions_

(a) Foreign currency transactions are recorded on initial recognition at the rate prevailing on the date of transaction. Where export bills are negotiated with the bank, the export sales are recorded at the rate on the date of negotiation as the said rate approximates the

__actual rate at the date of the transaction._

(b) Foreign currency monetary items are reported using the closing rate. Exchange differences arising on the settlement of monetary items or on reporting the same at the closing rate as at the balance sheet date are recognized as income or expense in the

__period in which they arise._

(c) Forward exchange contracts other than those entered in to hedge foreign currency risk of firm commitments or highly probable forecast transactions are translated at period end exchange rates and the resultant gains and losses as well as the gains and losses on

__cancellation of such contracts are recognised in the statement of Profit & Loss._

(d) Any income or expenses on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are

__adjusted to the carrying cost of such assets._

(e) The company used forward foreign exchange contract to hedge its exposure against movement in foreign exchange rates.

14 Earnings per share

Basic earnings per share is computed by dividing the net profit or loss for the period

attributable to equity shareholders by the numbgii^equity shares outstanding during

the period. ~''^v\9\

/ Q/ Chartered \T\-

15 Provisions and contingencies

i) Provision is recognized (for liabilities that can be measured by using a substantial degree of estimation) when:

a) The company has a present obligation as a result of a past event;

b) A probable outflow of resources embodying economic benefits is expected to settle the obligation; and

c) The amount of the obligation can be reliably estimated

ii) Contingent liability is disclosed in case there is:

a) Possible obligation that arises from past events and existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise;

b) A present obligation arising from past events but is not recognised

1. when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

2. a reliable estimate of the amount of the obligation cannot be made.

16 Cash & Cash Equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks and corporations. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible __to known amounts of cash to be cash equivalents._

17 Cash Flow Statement

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

19 Segment Reporting

• The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organization and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

• The Company has identified business segments as its primary segment. Business segments are primarily Hi-Tech Fabrication Engineering and Flour Division . Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable

__segment._

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Mar 31, 2015

1. Corporate information

GTV Engineering Ltd. is a Limited company incorporated on 4[h December 1990. The company is engaged in Hitech steel fabrication having its manufacturing unit at Plot No. 216-218, Industrial Area, Mandideep, Dist. Raisen and Plot No. K-20-22, Industrial Area, Malanpur, Dist. Bhind and Plot No. 69, Industrial Area, Mandideep, Dist Raisen, M.P.

2. Basis of accounting and preparation of financial statements

(a) The financial statements have been prepared on accrual basis under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP), and applicable Accounting Standards referred to in section 133 of the Companies Act, 2013, (The Act). The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

(b) The classification of assets and liabilities of the company into current or non-current is based on the criterion specified in the Revised Schedule III to the Companies Act, 2013. The company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

3. Use of estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

4. " Cash Flow Statement "

Cash Flow are reported using the indirect method, where by Profit before tax is adjusted for the effects of transaction of a non cash nature , any deferral or accruals of past or future cash receipts or payments and item of Income or expenses associated with investing and financing cash flow . The cash flow from operating investing and financing activities of the company are egregated.

5. Revenue Recognition

(a) Sales

Revenue from sale of goods is recognized:

- When all the significant risks and rewards of ownership are transferred to the buyer and the seller retains no effective control of the goods transferred to a degree usually associated with ownership and

- No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

(b) " Interest "

Interest income is recognized on a time proportion basis taking into account the amount |outstanding and the rate applicable

6. Fixed Assets

Fixed assets are carried at cost less accumulated depreciation. Cost of fixed assets comprises its purchase price and any attributable expenditure (both direct and indirect) for bringing an asset to its working condition for its intended use.

7. " Depreciation and amortization"

As per the requirements of Companies act, 2013, the company has computed depreciation with reference to the useful life of respective assets specified in and in the manner prescribed in Schedule II to the Act. Accordingly, the assets whose useful life has already exhausted as on 1st April,2014 has been charged to opening balance of retained earnings amounting to Rs.162.87 Lacs . Further, based on the residual life of the remaining assets, depreciation amount reduced by Rs.2.07 Lacs . In relation to the assets added after 1st April,2014, depreciation has been charged as per the provisions of said Schedule II.

8. Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets.

9. 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 FIFO plus direct expenses.

- 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 and other overheads incurred to bring the goods to their present location and condition.

10. Employee Benefits

(a) Short term 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.

(b) Post-employment benefits: Employee Provident Fund

The eligible employees of the Company are entitled to receive post employment benefits in respect of provident fund, in which both the employees and the Company make monthly contributions at a specified percentage of the employees' eligible salary.

11. Borrowing costs

Borrowing cost includes amortization of ancillary cost related to borrowings and foreign exchange to the extent they regarded as adjustment to interest cost. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets till such time that the asset is ready for its intended use or sale . A qualifying asset is one that necessarily takes substantial period of time to get ready for the intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.

12. Earnings per share

Basic earnings per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the number of equity shares outstanding during the period.

13. Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of an outflow of resources embodying the economic benefit is remote.

14. Taxation

Tax expense comprises of current and deferred tax. Current tax is measured at the amount expected to be paid in accordance with the Income-tax Act, 1961. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rate and tax laws enacted or substantially enacted at the balance sheet date.

15. The previous year figures have been regrouped/ reclassified, wherever necessary to conform to the current year's presentation.

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Mar 31, 2014

1. Corporate information

GTV Engineering Ltd. is a Limited company incorporated under the provisions of the Companies Act 1956 on 4th December 1990. The company is engaged in Hitech steel fabrication having its manufacturing unit at Plot No 216-218,Industrial Area' MandideeP/ Dist. Raisen and Hot No. K-20-22, Industrial Area, Malanpur, Dist. Bhind and Plot No. 69, Industrial Area Mandideep, Dist Raisen, M.P.

2. Basis of accounting and preparation of financial statements

(a) The financial statements have been prepared on accrual basis under the historical cost" convention in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP), and Accounting Standards referred to in section 211 (3C) of the Companies Act, 1956 The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

(b) The classification of assets and liabilities of the company into current or non-current is based on the criterion specified in the Revised Schedule VI to the Companies Act, 1956. The company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

3. Use of estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize

4. Cash Flow Statement

Cash Flow statement has been prepared in accordance with the indirect method prescribed in Accounting Standard 3 issued under the Companies (Accounting Standards) Rules, 2006 and as required by the Securities and Exchange Board of India.

5. Revenue Recognition

(a) Sales

Revenue from sale of goods is recognized:

When all the significant risks and rewards of ownership are transferred to the buyer and the seller retains no effective control of the goods transfixed to a decree usually associated with ownership and

- No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

(b) Interest

interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable

6. Fixed Assets

Fixed assets are carried at cost less accumulated depreciation. Cost of fixed assets comprises its purchase price arid any attributable expenditure (both direct and indirect) for bringing an asset to its working condition for its intended use.

7. Depreciation and amortization

Depreciation on all assets has been provided on SLM basis in accordance with and in the manner specified in Schedule -XIV of Companies Act, 1956.

8. Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for i impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets.

9. 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 FIFO plus direct expenses.

- 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 and other overheads incurred to bring the goods to their present location and condition.

10. Employee Benefits

(a) Short term 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.

(b) Post-employment benefits: Employee Provident Fund

The eligible employees of the Company are entitled to receive post employment benefits in respect of provident fund, in which both the employees and the Company make monthly contributions at a specified percentage of the employees' eligible salary.

11. Borrowing costs "

Borrowing cost includes amortization of ancillary cost related to borrowings and foreign exchange to the extent they regarded as adjustment to interest cost. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets till such time that the asset is ready for its intended use or sale . A qualifying asset is one that necessarily takes substantial period of time to get ready for the intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.

12. Earnings per share

Basic earnings per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the number of equity shares outstanding during the period.

13. Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of an outflow of resources embodying the economic benefit is remote.

14. Taxation "

Tax expense comprises of current and deferred tax. Current tax is measured at the amount expected to be paid in accordance with the Income-tax Act, 1961. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rate and tax laws enacted or substantially enacted at the balance sheet date.

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Mar 31, 2013

1 Corporate information

The company is engaged in Hi tech steer fabrication having its manufacturing facility at plot No,216-218 Industrial area mandideep, Dist. Raisen and Plot No.K-20-22, Industrial Area, Malanpur , Dist- Bhind and plot No.69 Industrial area mandideep, Dist Raisen, M.P.

2.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention . The accounting policies adopted in the preparation of

2.2 Use of estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in file reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that tire estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and tire estimates are recognized in the periods in which the results are known / materialize.

2.3 Cash Flow Statement

Cash Flow statement has been prepared in accordance with tire indirect method prescribed in Accounting standard 3 issued under the Companies (Accounting Standards) Rules, 2006 and as required by the Securities and Exchange Board of India,

2.4 Inventories

Inventories are valued at the lower of cost on FIFO and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving

2.5 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances

2.6 Depreciation and amortization

Depreciation on fixed assets has been provided has been provided on Straight Line method (SLM) at the rates prescribed and in the manner provided in schedule "XIV" of The Companies Act, 1956. No depreciation has been charged on the assets sold during the year, if any.

2.7 Impairment of Assets

The carrying values of assess / cash generating units at each Balance Sheet date are reviewed for impairment, if any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets.

2.8 Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

(b) Monetary items denominated in foreign currencies at the yearend are restated at the yearend rates. In case of items which are covered by forward exchange contracts, the difference between the yearend rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.

(c) Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account except in case of long term liabilities, where me

2.9 Sale of goods

Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty , sales tax and value added tax.

2.10 Other income

Other income includes interest received on Bank deposits and net off of accounts written off during the year

2.11 Tangible fixed asset;;

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes incidental expenses incurred and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalized and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

2.12 Employee benefits

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits.

2.13 Defined contribution plans

The Company's contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made,

2.14 Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as mart of the cost of such assets, A qualifying asset is one that necessarily takes substantial period of time to get ready for the intended use. All other borrowing costs are charged to profit and loss account.

2.15 Earnings per share

Basic earnings per share basic and diluted is computed by dividing tire profit / (loss) after tax by the weighted average number of equity shares outstanding during the year.

2.16 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

2.17 Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events and ii is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of an outflow of resources embodying the economic benefit is remote.

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Mar 31, 2012

A) BASIS OF PRESENTATION:

The accounts have been prepared using historical cost convention and on the basis of a going concern with revenues recognized and expenses accounted on accrual including for committed obligations. Insurance's and other claims are accounted as and when admitted by the appropriate authorities. Where changes in presentation are made, comparative figures for the previous year are regrouped accordingly.

b) FIXED ASSETS:

i) Capitalized at acquisition cost including directly attributable

cost such as freight, insurance and specific installation charges for bringing the assets to its working condition.

ii) Expenditure relating to existing fixed assets incurred subsequently are added to the cost where they increase performance/life as assessed earlier.

c) INVENTORIES:

Inventories are valued at lower of cost or net realizable value after

providing for obsolescence and damages.

i) In the case of raw material - At cost. The cost represents

purchase price and other costs incurred for bringing inventories up their present location In the case of work in progress: At cost which represents cost of raw material added to cost of conversation such as direct labor, direct expenses and production overheads (proportionately as to the stage of completion) which are specifically attributable to the units of production.

ii) In the case of Finished Goods - At net realizable value.

iii) In the case of scrap - At net realizable value.

d) FOREIGN CURRENCY TRANSACTION:

Foreign Travel Expenses NIL

e) EXCISE DUTY:-

Excise duty liability accruing on manufacture is accounted for as and when the liability for payment arises under die Central Excise and Salt Act 1944. Duty on finished goods lying in the factory premises in the bonded warehouse as on the last date of accounting year is not accrued.

f) SALES:-

Sales represents invoice value of goods (net) includes price variation and excise duty and does not includes freight, sales tax and transit insurance charges.

g) DEPRECIATION

Depreciation is provided on the fixed assets on straight line method at the rates and in the manner specified in schedule XIV of companies act, 1956 as per circular no. 14/93 dated 20.12.1993 issued by Ministry of Law and Department of Company Affairs and recommended by Institute of Chartered Accountants of India contained in its guidance notes on the "Accounting for Depreciation in Companies" and in the case where aggregate actual cost of individual item of P&M costing Rs. 5000/- or less constitutes more than 10% of the total actual cost of plant & machinery, rates of depreciation applicable to such items is the same as for general plant & machinery as per circular no. F/1/12/92-CLV issued by ministry of law and department of company affairs.

h) CONTINGENCIES AND EVENTS OCCURING AFTER THE BALANCE SHEET:

Accounting for contingencies (gains & losses) arising out of contractual obligations are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of the adoption of the accounts where material.

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Mar 31, 2011

1 Corporate information

The company is engaged in Hitech steel fabrication having its manufacturing facility at plot No.216-218 Industrial area mandideep, Dist.Raisen and Plot No,K-2Q-??, Industrial Area, Malanpur , Dist- Bhind and plot No.69 Industrial area mandideep, Dist Raisen, M.P.

2.1 Basis of accounting and preparation Of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Capacities Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention . The accounting policies adopted in the

2.2 Use of estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

2.3 Inventories

Inventories are valued at the lower of cost on FIFO and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octopi and other levies, transit insurance and receiving

2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term haleness

2.5 Depreciation and amortization

Depreciation on fixed assets has been provided has been provided on Straight Line method (SLM) at the rates prescribed and in the manner provided in schedule "XIV" of The Companies Act, 1956. No depreciation has been charged on the assets sold during the year, if any.

2.6 Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date arc reviewed for impairment. If any indication of impairment exists, the recoverable auditor of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalue lasses.

2.7 Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates tire actual rate at the date of the transaction.

(b) Monetary items denominated in foreign currencies at the yearend are restated at the yearend rate? In raze of items which are covered by forward exchange contracts, the difference between the yearend rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the late of the contract.

(c) Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which rasp ropy are adjusted to the carrying cost of such assets.

2.8 Sale of goods

Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty, sales tax and value added tax.

2.9 Other income

Oder income includes inters received on Bank deposes .

2.10 Tangible fixed assets

Fixed assets are carried if cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes incidental expenses incurred and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalized and depreciated over the useful life of the principal item of tilt relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results m an increase in the future benefits from such asset beyond its previously assessed standard of performance.

2.11 employees benefits

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits.

2.12 Defined contribution plans

The Company's contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall Hue based on the amount of contribution required to be made,

2.13 Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for the intended use. All other borrowing costs are charged

2.14 Earnings per share

Basic earnings per share basic and diluted is computer! by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year.

2.15 Taxes on income

Oin-pnt tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

2.17 Provisions and contingencies

A provision is recognized when the Company has a present Obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of an outflow of resources embodying the economic benefit is remote.

Contingent liabilities provided for in respect of letter of credits/bank guarantees FDRs: a Bank guarantee outstanding: Rs. 3,93,45500.00

Estimated amounts of contracts remaining to be executed on capital account and nut provided fur (net advances) Nil Letter of Credit outstanding: Rs. Nil (Previous year Nil)