Accounting Policies of Heera Ispat Ltd. Company

Mar 31, 2025

A. Significant Accounting policies
A.1. Statement of compliance with Ind AS

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS)
to comply with the Section 133 of the Companies Act, 2013 ("the 2013 Act") read with Rule 3 of
the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting
Standards) Amendment Rules, 2016, and the relevant provisions and amendments, as applicable.

A.2. Basis of measurement

The Company maintains accounts on accrual basis following the historical cost convention,
except for certain financial assets and liabilities that are measured at fair value in accordance with
Ind AS.

The Company regularly reviews significant unobservable inputs and valuation adjustments. If third
party information is used to measure fair values then the finance team assesses the evidence
obtained from the third parties to support the conclusion that such valuations meet the
requirements of Ind AS, including the level in the fair value hierarchy in which such valuations
should be classified.

Fair value measurements under Ind AS are categorised as below 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:

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

¦ Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the
asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

¦ Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data
as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into
different levels of the fair value hierarchy, then the fair value measurement is categorised in its
entirety in the same level of the fair value hierarchy as the lowest level input that is significant to
the entire measurement.

A.3. Presentation of Financial Statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format
prescribed in the Schedule III to the Companies Act, 2013 ("the Act"). The statement of cash flows
has been prepared and presented as per the requirements of Ind AS 7 "Statement of Cash flows".
The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit
and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part
of the financial statements along with the other notes required to be disclosed under the notified
Indian Accounting Standards and the SEBI (Listing Obligations and Disclosure Requirements).

B. Use of Estimates and Judgements

The preparation of financial statements in conformity with Ind AS requires that the management
of the company makes estimates and assumptions that affect the reported amounts of income
and expenses of the period, the reported balances of assets and liabilities and the disclosures
relating to contingent liabilities as of the date of the financial statements. The estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised
prospectively.

Judgements:

Information about judgements made in applying accounting policies that have the most significant
effects on the amounts recognised in the financial statements is included in the following notes:
Note 23: the company''s future plan for operations for assessment of going concern

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties at the reporting date that have a
significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities
within the next financial year is included in the following notes:

¦ Note 1C(D) and 4: recognition of deferred tax assets: availability of future taxable profit against

which deductible temporary differences and tax losses carried forward can be utilised;

¦ Note 1C(D): Impairment of financial assets and financial liabilities

¦ Note 1C(D): Measurement of fair value of financial assets classified at fair value

C. Property, Plant and Equipment (PPE)

i. Recognition and Measurement

PPE is recognized 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. PPE is stated at original
cost net of tax/duty credits availed, if any, less accumulated depreciation, and cumulative
impairment, if any. Cost includes professional fees related to the acquisition of PPE and for
qualifying assets, borrowing costs capitalized in accordance with the company''s accounting policy.

ii. Depreciation/Amortization

Depreciation is recognized using straight line method so as to write off the cost of the assets

(other than freehold land and properties under construction) less their residual values over their
useful lives specified in Schedule II to the Companies Act, 2013, or in the case of assets where the
useful life was determined by technical evaluation, over the useful life so determined.
Depreciation method is reviewed at each financial year end to reflect the expected pattern of
consumption of the future economic benefits embodied in the asset. The estimated useful life and
residual values are also reviewed at each financial year end and the effect of any change in the
estimates of useful life/residual value is accounted on prospective basis.

Where cost of a part of the asset ("asset component") is significant to total cost of the asset and
useful life of that part is different from the useful life of the remaining asset, useful life of that
significant part is determined separately and such asset component is depreciated over its
separate useful life.

Depreciation charge for impaired assets is adjusted in future periods in such a manner that the
revised carrying amount of the asset is allocated over its remaining useful life.

Freehold land is not depreciated.

D. Financial instruments

Financial assets and/or financial liabilities are recognized when the company becomes party to a
contract embodying the related financial instruments. All financial assets, financial liabilities and
financial guarantee contracts are initially measured at transaction values and where such values
are different from the fair value, at fair value. Transaction costs that are attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from as the case
may be, the fair value of such assets or liabilities, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through profit
or loss are recognised immediately in profit or loss. In case of interest free or concession loans
given to subsidiary companies, the excess of the actual amount of the loan over initial measure at
fair value is accounted as an equity investment.

Financial assets

Initial recognition

On initial recognition, a financial asset is classified as measured at:

- amortised cost;

- Fair value through other comprehensive income (FVOCI) - debt investment;

- Fair value through profit and loss (FVTPL).

A financial asset is measured at amortised cost if it meets both of the following conditions and is
not designated as at FVTPL:

- it is held within a business model whose objective is to hold assets to collect contractual cash flows;

and

- its contractual terms give rise on specified dates to cash flows that are solely payments of principal

and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not
designated as at FVTPL:

- it is held within a business model whose objective is achieved by both collecting contractual cash

flows and selling financial assets; and

- its contractual terms give rise on specified dates to cash flows that are solely payments of principal

and interest on the principal amount outstanding.

All financial assets not classified as measured at amortized cost or FVOCI as described above are
measured at FVTPL.

Subsequent measurement

- Financial assets at FVTPL

These assets are subsequently measured at fair value. Net gains including any interest or dividend
income, are recognized in profit or loss.

- Financial assets at amortized cost

These assets are subsequently measured at amortized cost using the effective interest method.
The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and
losses and impairment are recognized in profit or loss. Any gain or loss on de-recognition is
recognized in profit or loss.

- Financial assets that are measured at FVTOCI,

These assets are subsequently measured at fair value. Income by way of interest, dividend and
exchange difference (on debt instrument) is recognized in profit or loss and changes in fair value
(other than on account of such income) are recognized in Other Comprehensive Income and
accumulated in other equity. On disposal of debt instruments measured at FVTOCI, the cumulative
gain or loss previously accumulated in other equity is reclassified to profit or loss. In case of equity
instruments measured at FVTOCI, such cumulative gain or loss is not reclassified to profit or loss
on disposal of investments.

Derecognition

A financial asset is primarily derecognized when:

1. the contractual right to receive cash flows from the asset has expired, or

2. the company has transferred its rights to receive contractual cash flows from the asset or has

assumed an obligation to pay the received cash flows in full without material delay to a third party
under a pass-through arrangement; and (a) the company has transferred substantially all the risks
and rewards of the asset, or b) the company has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount
measured at the date of derecognition and the consideration received is recognised in profit or
loss.

Impairment of financial assets

The Company recognizes loss allowances on:

• Financial assets measured at amortized cost;

• Debt investments measured at FVOCI; and

• Trade receivables

The company recognizes impairment loss on trade receivables using expected credit loss (ECL)
model, which involves use of a provision matrix constructed on the basis of historical credit loss

experience as permitted under Ind AS 109 .

For recognition of impairment loss on other financial assets and risk exposure, the Company
determines that whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for
impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a
subsequent period, credit quality of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the entity reverts to recognising
impairment loss allowance based on 12-month ECL.

Financial Liabilities

i) Classification, Subsequent Measurement and Gains and Losses

Financial liabilities, including derivatives and embedded derivatives, which are designated for
measurement at FVTPL are subsequently measured at fair value. Financial guarantee contracts are
subsequently measured at the amount of impairment loss allowance or the amount recognised at
inception net of cumulative amortisation, whichever is higher. All other financial liabilities
including loans and borrowings are measured at amortised cost using Effective Interest Rate (EIR)
method

Derecognition

The Company derecognizes a financial liability when its contractual obligations are discharged or
cancelled, or expire.

The Company also derecognises a financial liability when its terms are modified and the cash flows
under the modified terms are substantially different. In this case, a new financial liability based on
the modified terms is recognised at fair value. The difference between the carrying amount of the
financial liability extinguished and the new financial liability with modified terms is recognised in
the profit or loss.

E. Offsetting financial instruments

The financial assets and financial liabilities are offset and presented on net basis in the Balance
Sheet when there is a current legally enforceable right to set-off the recognised amounts and it is
intended to either settle on net basis or to realise the asset and settle the liability simultaneously.

F. Revenue recognition

Sale of Goods

Revenue from contracts with customers is recognised when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those goods or services. For sale of goods, revenue is
recognised when control of the goods has transferred at a point in time i.e. when the goods have
been delivered to the specific location (delivery). Following delivery, the customer has full
discretion over the responsibility, manner of distribution, price to sell the goods and bears the
risks of obsolescence and loss in relation to the goods. A receivable is recognised by the Company
when the goods are delivered to the customer as this represents the point in time at which the
right to consideration becomes unconditional, as only the passage of time is required before

payment is due.

The Company considers the effects of variable consideration, the existence of significant financing
components, noncash consideration, and consideration payable to the customer (if any).

Other Income

(1) Interest income is accrued on a time basis by reference to the principal outstanding and the
effective interest rate.

(2) Dividend income is accounted in the period in which the right to receive the same is
established.

G. Taxation

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the
extent that it relates to a business combination or to an item recognised directly in equity or in
other comprehensive income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for
the year and any adjustment to the tax payable or receivable in respect of previous years. The
amount of current tax reflects the best estimate of the tax amount expected to be paid or
received after considering the uncertainty, if any, related to income taxes. It is measured using tax
rates (and tax laws) enacted or substantively enacted by the reporting date. Current tax assets
and current tax liabilities are offset only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or
simultaneously.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the company''s financial statements and the corresponding tax bases used in
computation of taxable profit.

Deferred tax liabilities are generally recognised for all taxable temporary differences including the
temporary differences associated with investments in subsidiaries and associates, and interests in
joint ventures, except where the company is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable
future.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible
temporary differences to the extent that it is probable that future taxable profits will be available
against which they can be used. Future taxable profits are determined based on the reversal of
relevant taxable temporary differences. If the amount of taxable temporary differences is
insufficient to recognise a deferred tax asset in full, then future taxable profits, adjusted for
reversals of existing temporary differences, are considered, based on the business plans for the
company. Deferred tax assets are reviewed at each reporting date and are reduced to the extent
that it is no longer probable that the related tax benefit will be realised; such reductions are
reversed when the probability of future taxable profits improves.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on the laws that have been enacted or substantively
enacted by the reporting date.

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 reporting period, to recover
or settle the carrying amount of its assets and liabilities.

Transaction or event which is recognised outside profit or loss, either in other comprehensive
income or in equity, is recorded along with the tax as applicable.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the
same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and
assets on a net basis or their tax assets and liabilities will be realised simultaneously.

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Mar 31, 2024

A. Significant Accounting policies
A.1. Statement of compliance with Ind AS

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) to
comply with the Section 133 of the Companies Act, 2013 ("the 2013 Act") read with Rule 3 of the
Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards)
Amendment Rules, 2016, and the relevant provisions and amendments, as applicable.

A.2. Basis of measurement

The Company maintains accounts on accrual basis following the historical cost convention, except for
certain financial assets and liabilities that are measured at fair value in accordance with Ind AS.

The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party
information is used to measure fair values then the finance team assesses the evidence obtained from the
third parties to support the conclusion that such valuations meet the requirements of Ind AS, including
the level in the fair value hierarchy in which such valuations should be classified.

Fair value measurements under Ind AS are categorised as below 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:

¦ Level 1

inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the

company can access at measurement date;

¦ Level 2

inputs are inputs, other than quoted prices included in level 1, that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

¦ Level 3:

inputs for the asset or liability that are not based on observable market data (unobservable
inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far
as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of
the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of
the fair value hierarchy as the lowest level input that is significant to the entire measurement.

A.3. Presentation of Financial Statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format
prescribed in the Schedule III to the Companies Act, 2013 ("the Act"). The statement of cash flows has
been prepared and presented as per the requirements of Ind AS 7 "Statement of Cash flows". The

disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as
prescribed in the Schedule III to the Act, are presented by way of notes forming part of the financial
statements along with the other notes required to be disclosed under the notified Indian Accounting
Standards and the SEBI (Listing Obligations and Disclosure Requirements).

B. Use of Estimates and Judgements

The preparation of financial statements in conformity with Ind AS requires that the management of the
company makes estimates and assumptions that affect the reported amounts of income and expenses of
the period, the reported balances of assets and liabilities and the disclosures relating to contingent
liabilities as of the date of the financial statements. The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

Judgements:

Information about judgements made in applying accounting policies that have the most significant effects
on the amounts recognised in the financial statements is included in the following notes:

Note 23: the company''s future plan for operations for assessment of going concern

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties at the reporting date that have a significant
risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next
financial year is included in the following notes:

¦ Note 1C(D) and 4: recognition of deferred tax assets: availability of future taxable profit against

which deductible temporary differences and tax losses carried forward can be utilised;

¦ Note 1C(D): Impairment of financial assets and financial liabilities

¦ Note 1C(D): Measurement of fair value of financial assets classified at fair value

C. Property, Plant and Equipment (PPE)

i. Recognition and Measurement

PPE is recognised 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. PPE is stated at original cost net of
tax/duty credits availed, if any, less accumulated depreciation and cumulative impairment, if any. Cost
includes professional fees related to the acquisition of PPE and for qualifying assets, borrowing costs
capitalised in accordance with the company''s accounting policy.

ii. Depreciation/Amortisation

Depreciation is recognised using straight line method so as to write off the cost of the assets (other than
freehold land and properties under construction) less their residual values over their useful lives specified
in Schedule II to the Companies Act, 2013, or in the case of assets where the useful life was determined
by technical evaluation, over the useful life so determined. Depreciation method is reviewed at each
financial year end to reflect the expected pattern of consumption of the future economic benefits
embodied in the asset. The estimated useful life and residual values are also reviewed at each financial
year end and the effect of any change in the estimates of useful life/residual value is accounted on
prospective basis.

Where cost of a part of the asset ("asset component") is significant to total cost of the asset and useful
life of that part is different from the useful life of the remaining asset, useful life of that significant part is
determined separately and such asset component is depreciated over its separate useful life.

Depreciation charge for impaired assets is adjusted in future periods in such a manner that the revised

carrying amount of the asset is allocated over its remaining useful life.

Freehold land is not depreciated.

D. Financial instruments

Financial assets and/or financial liabilities are recognised when the company becomes party to a contract
embodying the related financial instruments. All financial assets, financial liabilities and financial
guarantee contracts are initially measured at transaction values and where such values are different from
the fair value, at fair value. Transaction costs that are attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets and financial liabilities at fair value through
profit or loss) are added to or deducted from as the case may be, the fair value of such assets or
liabilities, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets
or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. In
case of interest free or concession loans given to subsidiary companies, the excess of the actual amount
of the loan over initial measure at fair value is accounted as an equity investment.

Financial assets

Initial recognition

On initial recognition, a financial asset is classified as measured at:

- amortised cost;

- Fair value through other comprehensive income (FVOCI) - debt investment;

- Fair value through profit and loss (FVTPL).

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as
at FVTPL:

- it is held within a business model whose objective is to hold assets to collect contractual cash flows;

and

- its contractual terms give rise on specified dates to cash flows that are solely payments of principal

and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at
FVTPL:

- it is held within a business model whose objective is achieved by both collecting contractual cash

flows and selling financial assets; and

- its contractual terms give rise on specified dates to cash flows that are solely payments of principal

and interest on the principal amount outstanding.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at
FVTPL.

Subsequent measurement

- Financial assets at FVTPL

These assets are subsequently measured at fair value. Net gains including any interest or dividend
income, are recognized in profit or loss.

- Financial assets at amortized cost

These assets are subsequently measured at amortized cost using the effective interest method. The
amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses
and impairment are recognized in profit or loss. Any gain or loss on de-recognition is recognized in
profit or loss.

- Financial assets that are measured at FVTOCI,

These assets are subsequently measured at fair value. Income by way of interest, dividend and

exchange difference (on debt instrument) is recognised in profit or loss and changes in fair value
(other than on account of such income) are recognised in Other Comprehensive Income and
accumulated in other equity. On disposal of debt instruments measured at FVTOCI, the cumulative
gain or loss previously accumulated in other equity is reclassified to profit or loss. In case of equity
instruments measured at FVTOCI, such cumulative gain or loss is not reclassified to profit or loss on
disposal of investments.

Derecognition

A financial asset is primarily derecognised when:

1. the contractual right to receive cash flows from the asset has expired, or

2. the company has transferred its rights to receive contractual cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material delay to a third
party under a pass-through arrangement; and (a) the company has transferred substantially all
the risks and rewards of the asset, or b) the company has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount
measured at the date of derecognition and the consideration received is recognised in profit or loss.

Impairment of financial assets

The Company recognises loss allowances on:

• Financial assets measured at amortised cost;

• Debt investments measured at FVOCI; and

• Trade receivables

The company recognises impairment loss on trade receivables using expected credit loss (ECL) model,
which involves use of a provision matrix constructed on the basis of historical credit loss experience as
permitted under Ind AS 109 .

For recognition of impairment loss on other financial assets and risk exposure, the Company determines
that whether there has been a significant increase in the credit risk since initial recognition. If credit risk
has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the
instrument improves such that there is no longer a significant increase in credit risk since initial
recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

Financial Liabilities

i) Classification, Subsequent Measurement and Gains and Losses

Financial liabilities, including derivatives and embedded derivatives, which are designated for
measurement at FVTPL are subsequently measured at fair value. Financial guarantee contracts are
subsequently measured at the amount of impairment loss allowance or the amount recognised at
inception net of cumulative amortisation, whichever is higher. All other financial liabilities including loans
and borrowings are measured at amortised cost using Effective Interest Rate (EIR) method

Derecognition

The Company derecognizes a financial liability when its contractual obligations are discharged or
cancelled, or expire.

The Company also derecognises a financial liability when its terms are modified and the cash flows under
the modified terms are substantially different. In this case, a new financial liability based on the modified
terms is recognised at fair value. The difference between the carrying amount of the financial liability
extinguished and the new financial liability with modified terms is recognised in the profit or loss.

E. Offsetting financial instruments

The financial assets and financial liabilities are offset and presented on net basis in the Balance Sheet
when there is a current legally enforceable right to set-off the recognised amounts and it is intended to
either settle on net basis or to realise the asset and settle the liability simultaneously.

F. Revenue recognition
Sale of Goods

Revenue from contracts with customers is recognised when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Company expects
to be entitled in exchange for those goods or services. For sale of goods, revenue is recognised when
control of the goods has transferred at a point in time i.e. when the goods have been delivered to the
specific location (delivery). Following delivery, the customer has full discretion over the responsibility,
manner of distribution, price to sell the goods and bears the risks of obsolescence and loss in relation to
the goods. A receivable is recognised by the Company when the goods are delivered to the customer as
this represents the point in time at which the right to consideration becomes unconditional, as only the
passage of time is required before payment is due.

The Company considers the effects of variable consideration, the existence of significant financing
components, noncash consideration, and consideration payable to the customer (if any).

Other Income

(1) Interest income is accrued on a time basis by reference to the principal outstanding and the effective
interest rate.

(2) Dividend income is accounted in the period in which the right to receive the same is established.

G. Taxation

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that
it relates to a business combination or to an item recognised directly in equity or in other comprehensive
income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable in respect of previous years. The amount of current
tax reflects the best estimate of the tax amount expected to be paid or received after considering the
uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date. Current tax assets and current tax liabilities are offset only if
there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset
and settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the company''s financial statements and the corresponding tax bases used in computation of
taxable profit.

Deferred tax liabilities are generally recognised for all taxable temporary differences including the
temporary differences associated with investments in subsidiaries and associates, and interests in joint
ventures, except where the company is able to control the reversal of the temporary difference and it is
probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary
differences to the extent that it is probable that future taxable profits will be available against which they
can be used. Future taxable profits are determined based on the reversal of relevant taxable temporary
differences. If the amount of taxable temporary differences is insufficient to recognise a deferred tax asset
in full, then future taxable profits, adjusted for reversals of existing temporary differences, are considered,
based on the business plans for the company. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such
reductions are reversed when the probability of future taxable profits improves.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled, based on the laws that have been enacted or substantively enacted by
the reporting date.

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 reporting period, to recover or settle the
carrying amount of its assets and liabilities.

Transaction or event which is recognised outside profit or loss, either in other comprehensive income or
in equity, is recorded along with the tax as applicable.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis
or their tax assets and liabilities will be realised simultaneously.

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Mar 31, 2014

A. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

b. Tangible fixed assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the assets to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day to day repaired maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from de-recognition of fixed 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 & loss when the asset is de recognized.

c. Depreciation on Tangible Fixed Asset

Depreciation on fixed asset is calculated on Written down Value method using the rates prescribed under the Schedule XIV to The Companies Act, 1956.

d. Earnings per share

Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

e. Provisions and Contingent liabilities

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

Where no reliable estimate can be made, a disclosure is made as a contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

f. 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.

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Jun 30, 2011

1)SIGNIFICANT ACCOUNTING POLICIES

The accounts are prepared on an accrual basis and under the historical cost conventions, and are in line with the relevant laws as well as the guidelines prescribed by the Department of Company affairs and the Institute of Chartered Accountants of India.

2) FIXED ASSETS:

Tangible Fixed assets are stated at original cost of acquisition including taxes, duties, freight and the incidental expenses related to acquisition of the concerned asset. Fixed assets are stated at cost of acquisition / Construction or cost.

3) DEPRECIATION:

Depreciation on fixed assets has been provided by using written down method at the rates specified in schedule - XIV to the Companies Act, 1956.

4) CONTINGENT LIABILITIES:

Contingent Liabilities are disclosed after careful evaluation of facts & legal aspects of the matter involved.

5) TAXES ON INCOMES :

Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws. As the company has suffered loss during the year under review, no provision has been made in respect of current tax. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Profit & Loss Account of the respective year of change. During the year under review, the company has not carried out any business activity & no deferred tax /asset/liability was recognized on account of timing difference, hence, no provision was made in respect thereof.

6) EARNING PER SHARE:

The company reports basic and diluted earnings per share in accordance accounting standard (AS) 20” Earning per share” issued by the institute chartered accountants of India. Basic Earning per share and Diluted per share is computed by dividing the net profit or loss for the year by weighted average number of Equity shares outstanding during years as adjust for the effect of all dilutive potential equity share except, where results are until-dilutive.

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Jun 30, 2010

The accounts are prepared on an accrual basis and under the historical cost conventions, and are in line with the relevant laws as well as the guidelines prescribed by the Department of Company affairs and the Institute of Chartered Accountants of India.

2) FIXED ASSETS:

Tangible Fixed assets are stated at original cost of acquisition including taxes, duties, freight and the incidental expenses related to acquisition of the concerned asset. Fixed assets are stated at cost of acquisition / Construction or cost. Depreciation is provided during the year on fixed assets as decided by the management.

3) DEPRECIATION:

Depreciation on fixed assets has been provided by using written down method at the rates specified in schedule - XIV to the Companies Act, 1956.

4) CONTINGENT LIABILITIES:

Contingent Liabilities are disclosed after careful evaluation of facts & legal aspects of the matter involved.

5) TAXES ON INCOMES :

Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws. As the company has suffered loss during the year under review, no provision has been made in respect of current tax.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Profit & Loss Account of the respective year of change.As the Company has made losses during the year under review no provision for deferred loss has been made by the management.

7) EARNING PER SHARE:

The company reports basic and diluted earnings per share in accordance accounting standard (AS) 20"Earning per share" issued by the institute chartered accountants Of India. Basic Earning per share and Diluted ear per share is computed by dividing the net profit or loss for the year by weighted average number of Equity shares outstanding during years as adjust for the effect of all dilutive potential equity share except, where results are until-dilutive.

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Jun 30, 2009

1) SIGNIFICANT ACCOUNTING POLICIES

The accounts are prepared on an accrual basis and under the historical cost conventions, and are in line with the relevant laws as well as the guidelines prescribed by the Department of Company affairs and the Institute of Chartered Accountants of India.

2) FIXED ASSETS:

Tangible Fixed assets are stated at original cost of acquisition including taxes, duties, freight and the incidental expenses related to acquisition of the concerned asset. Fixed assets are stated at cost of acquisition / Construction or cost. Depreciation is provided during the year on fixed assets as decided by the management.

3) DEPRECIATION;

Depreciation on Fixed assets has been provided by using written down method at the rates specified in schedule - XIV to the Companies Act, 1956.

4) CONTINGENT LIABILITIES:

Contingent Liabilities are disclosed after careful evaluation of facts & legal aspects of the matter involved,

5) TAXES ON INCOMES :

Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws. As the company has suffered loss during the year under review* no provision has been made in respect of current tax.

Deferred tax assets and liabilities are measured using the tax rates and lax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income, The effect of tax rate change is considered in the Profit & Loss Account of the respective year of change As the Company has made losses during the year under review no provision for deferred loss has been made by the management

6) EARNING PER SHARE:

The company reports basic and diluted earnings per share in accordance accounting standard (AS) 20" Earning per share" issued by the institute chartered accountants of India. Basic Earnings per share and Diluted year per share is computed by dividing the net profit or loss for the year by weighted average number of Equity shares outstanding during years as adjust for the effect of ail dilutive potential equity share except, where results are until-dilutive.

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Jun 30, 2008

1) BASIS OF ACCOUNTING

The Accounting of tire Company have been prepared; under the historical cost. convention using the accrual method of accounting with the applicable accounting standards and other generally accepted accounting principles in conformity with the statutory .requirements

2) FIXED ASSETS :

Tangible; Fixed assets are- stated at original cost of acquisition including taxes, duties freight and: the incidental expenses' related to acquisition of the concerned, asset.. Fixed assets are Stated' at cost of acquisition Construction or cost.

3) DEPRECIATION :

Depreciation on fixed assets has been provided written down method at the- rates specified in: Schedule- XIV to the. Companies Act, 1956.

4) INVESTMENTS :

Long Term:- Long Term Investments shown in the balance sheet, are valued at cost unless there is a permanent diminution, in the value, an. which case are valued at the diminished value, and the result difference is reseating in the profit and loss account.

Disposal Investment, On disposal of. Investment, the difference between the: carrying amount, and net disposal proceeds is being charged to Profit and Loss account-determined on the- basis of Average Method.

5) REVENUE RECOGNITION: ;

Revenue is recognized only when, measurability and certain. In ease of uncertainties, revenue recordation is: postponed to the year in which, it is properly measured and reliability assured.

The company recognize: sale at the point of dispatch of1 goods to customers, Sales are net price trade discounts and exclusive of excise and sales tax.

In respect of services the company accounts for revenue on the basis of, completed contract method.

6) INVENTORIES:

inventories are valued at the lower of cost, or net. realizable value after providing' for cost of obsolescence If any Costs arrived at as mention below

Raw and Packing. Material, at direct cost' of purchases, including duties taxes (other-than those subsequently refreshable by the enterprise from the, taxing Authorities)/ freight .inwards and other expenditure- direct attributable: to the acquisition, Trade discounts, rebates,. duty drawbacks - and other similar items are deducted in determining the costs of purchase.

Work-in-progress also includes a fair proportion of .manufacturing overheads applicable to the percentage of completion.

In case of finished goods, other than the costs mentioned above, also includes excise duty attributable to the. finished goods.

7) Contingent LIABILITIES:.

Contingent liabilities are. disclosed: after; careful, evaluation of facts and legal aspects of the matter' involved.

8) RETIREMENT .BENEFITS:

Gratuity-:

Liability in respect of' Gratuity-is-provided, in the books of accounts on the basis of actuarial valuation..

Leave Encashment:

Leave Encashment expenses axe being accounted for as and when the employee encase.

Provident Fund

Contribution to Provident Fund maintained under approved 'scheme, is made on monthly basis and .charged to, revenue.

9) BORROWING: COSTS :

Borrowing costs that are, directly Attributable to the acquisition, construction or production of. Qualifying, asset aired capitalized as part of a the cost of that assets,

The amount of borrowing costs eligible for capitalization on the assets is determined as the actual borrowing costs incurred on funds that are specifically borrowed less any income on the temporary investment of those borrowings, and by applying a weighted average capitalization rate- of the borrowing costs applicable to the enterprise that are outstanding during the period other than those that are made specifically for the purpose o: obtaining a qualifying asset. Such capitalization continues till substantially all the activities necessary to prepare the qualifying asset for its intended use or sales are complete. Other borrowing costs are recognized as and expenses in the period in-which they are incurred. None o the borrowing costs have been capitalize during the period.

l0) TAXES ON INCOME :

The company provides for taxes on income on Tax Effect Accounting Method which takes into account the effect of all timing difference between the financial statements and income Tax, assessments.

11) EARINGS PER SHAKE;

The company reports basic and diluted earnings per share in accordance with Accounting Standard (AS) 20"Earnings per share" issued by the Institute Chartered Accountants' of India. Basic Earning per share and Diluted earlier per share is computed by dividing the net profit or loss for the year by weighted average number of Equity shares outstanding during years as adjust for the effect of all dilutive, potential equity share, except, where results are unit-dilutive.