Accounting Policies of Jain Marmo Industries Ltd. Company

Mar 31, 2024

Note 2 : Material accounting policies

The following are the significant accounting policies adopted in the preparation of these financial statements. These policies
have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of Preparation

The financial statements have been prepared in accordance with Indian Accounting Standards ("Ind AS”) as prescribed
under Section 133 of the Companies Act, 2013 ("the Act") read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 as amended from time to time.

2.2 Basis of measurement

These financial statements have been prepared on the historical cost basis, except for certain financial instruments which
are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost
is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date.

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

2.3 Functional and Presentation Currency

The financial statements are prepared in Indian Rupees ("INR") which is the Company''s presentation currency and the
functional currency for its operations. All financial information presented in INR has been rounded to the nearest lakhs with
two decimal places unless stated otherwise.

2.4 Use of Estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments
and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the
reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses during the year.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are
recognised in the period in which the estimate is revised and future periods affected.

Significant judgments and estimates relating to carrying value of assets and liabilities include useful lives of Property, plant
and equipment, impairment of Property, plant and equipment, investments , provision for employee benefits and other
provisions, recoverability of deferred tax assets, commitments and contingencies.

2.5 Classification of Assets & Liabilities as Current & Non-Current

All Assets and Liabilities have been classified as current or non-current as per the Company''s normal operating cycle and
other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of product & activities of the
Company and their realization in cash and cash equivalent, the Company has determined its operating cycle as 12 months
for the purpose of current and non-current classification of assets and liabilities.

2.6 Recognition of Revenue and Expenditure

Revenue from contracts with customers is recognized 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.

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of
variable consideration on account of various discounts and schemes offered by the Company as part of the contract. This
variable consideration is estimated based on the expected value of outflow. Revenue (net of variable consideration) is
recognized 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.

2.6.1 Sale of Goods

Revenue from sale of products is recognized when the control on the goods have been transferred to the customer. The
performance obligation in case of sale of product is satisfied at a point in time i.e., when the material is delivered to the
customer.

2.6.2 Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the effective
interest rate method. Interest income is included under the head "Other Income" in statement of profit and loss.

2.6.3 Expenses

All expenses are charged in statement of profit and loss as and when they are incurred.

2.7 Property, Plant & Equipment

Property, plant and equipment are initially recognized at cost including the cost directly attributable for bringing the asset to
the location and conditions necessary for it to be capable of operating in the manner intended by the management. After
the initial recognition the property, plant and equipment are carried at cost less accumulated depreciation and impairment
losses, if any. Any gain or loss on disposal of an item of property, plant and equipment is recognized in the statement of
profit and loss. When significant parts of plant and equipment are required to be replaced at intervals, the company
depreciates them separately based on their specific useful lives. Subsequent expenditures relating to property, plant and
equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the
company and the costs to the item can be measured reliably. Repairs and maintenance costs are recognized in the
statement of profit and loss when incurred.

Capital work-in-progress includes cost of property, plant and equipment under installation / under development as at the
balance sheet date.

2.8 Depreciation

Depreciation is calculated on a Straight Line Method basis over the estimated useful lives of all the assets as prescribed In
Schedule II of the Companies Act, 2013. The residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Depreciation is not recorded on capital work-in progress until construction and installation is completed and the asset is for
intended use.

Intangible asset

Intangible assets purchased are measured at cost as of the date of acquisition, as applicable, less accumulated amortisation
and accumulated impairment, if any.

Intangible assets consist of trademark/patent which are amortised over license period which equates the useful life on a
straight line basis over the period of its economic useful life.

Investment Property

Property which is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the
Company, is classified as investment property. Investment property is measured initially at its cost, including related
transaction costs. Subsequent expenditure is capitalised to the asset''s carrying amount only when it is probable that future
economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured
reliably. Repairs and maintenance costs are expensed when incurred. Depreciation on investment property is provided on a
pro rata basis on straight line method over the estimated useful lives. Useful life of assets, as assessed by the Management,
corresponds to those prescribed by Schedule ll- Part ''C'' of the Companies Act, 2013

2.9 Inventory

Inventories consists of Raw Material, Work In Progress, Finished Goods, Scrap & Stores & Spares.

Inventories are valued at the lower of cost or net realisable value. Cost is determined on weighted average basis.

Raw materials 8i Stores & Spares: Cost includes cost of purchase and other costs incurred in bringing the inventories to their
present location and condition on the weighted average basis.

Finished goods and work in progress: Cost includes cost of direct materials and labour and a proportion of manufacturing
overheads based on the normal operating capacity on a weighted average basis. Cost of finished goods includes other costs
incurred in bringing the inventories to their present location and condition.

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

2.10 Employee benefits

a) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee
benefits. Benefits such as salaries, wages etc. and the expected cost of ex-gratia are recognised in the period in which the
employee renders the related service. A liability is recognised for the amount expected to be paid when there is a present
legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation
can be estimated reliably.

b) Defined Contribution Plan

The Company makes defined contribution to Provident Fund managed by Government Authorities, which are accounted on
accrual basis as expenses in the statement of Profit and Loss. The Company has no obligation other than the contribution
payable to the provident fund.

c) Defined Benefit Plan

The employees'' gratuity scheme is a defined benefit plan. The present value of the obligation under such defined benefit
plans is determined based on an independent actuarial valuation using the projected unit credit method, carried out as at
balance sheet date. The obligation determined as aforesaid less the fair value of the Plan assets is reported as a liability or
assets as of the reporting date. Actuarial gain or losses are recognised immediately in the Other Comprehensive Income and
reflected in retained earnings and will not be reclassified to the statement of profit and loss.Past service cost, both vested
and unvested, is recognised as an expense at the earlier of (a) when the plan amendment or curtailment occurs; and (b)
when the entity recognises related restructuring costs or termination benefits.

d) Other Long-Term Benefits

Provision for other long term benefits in the form of long term compensated absences (leave encashment) are accounted for
on the basis as if it becomes due for payment on the last day of accounting year.

2.11 Income Tax

Tax expenses comprises current and deferred tax. It is recognised in Statement of profit and loss except to the extent it
relates to the items recognised directly in equity or in OCl.

Current tax

Current tax comprises the expected tax payable on the taxable income or loss for the year and any adjustment to the tax
payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the
reporting date. Management periodically evaluates positions taken in tax returns with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities. Current tax assets and liabilities are offset only if there is a legally enforceable
right to set it 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 recognized on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit under Income tax Act, 1961.

Deferred tax liabilities are generally recognized for all taxable temporary differences. However, in case of temporary
differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that
affect neither the taxable profit nor the accounting profit, deferred tax liabilities are not recognized. Also, for temporary
differences if any that may arise from initial recognition of goodwill, deferred tax liabilities are not recognized.

Deferred tax assets are generally recognized for all deductible temporary differences to the extent it is probable that taxable
profits will be available against which those deductible temporary difference can be utilized. In case of temporary
differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that
affect neither the taxable profit nor the accounting profit, deferred tax assets are not recognized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it
is no longer probable that sufficient taxable profits will be available to allow the benefits of part or all of such deferred tax
assets to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the
balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled.

Presentation of current and deferred tax:

Current and deferred tax are recognized as income or an expense in the Statement of Profit and Loss, except when they
relate to items that are recognized in Other Comprehensive Income, in which case, the current and deferred tax
income/expense are recognized in Other Comprehensive Income.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the
recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability
simultaneously. In case of deferred tax assets and deferred tax liabilities, the same are offset if the Company has a legally
enforceable right to set off corresponding current tax assets against current tax liabilities and the deferred tax assets and
deferred tax liabilities relate to income taxes levied by the same tax authority on the Company.

2.12 Lease

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the
right to control the use of an identified asset for a period of time in exchange for consideration.

As a lessee
a) Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease
incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the
estimated useful lives of the assets. If ownership of the leased asset transfers to the Company at the end of the lease term
or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments primarily comprise of fixed payments. In calculating the
present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because
the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest and reduced for the lease payments made.

c) Short-term leases and leases of low value assets

The Company applies the short-term lease recognition exemption to its short-term leases of office spaces and certain
equipment (i.e. those leases that have a lease term of 12 months or less from the commencement date and do not contain a
purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are
considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense
on a straight-line basis over the lease term.

As a lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are
classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial
direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset
and recognised over the lease term on the same basis as rental income
Finance lease

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

Operating lease

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are
recognised as operating lease. Operating lease payments are recognised on a straight line basis over the lease term in the
statement of profit and loss, unless the lease agreement explicitly states that increase is on account of inflation.

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Mar 31, 2014

The financial statements of the company have been prepared in accordance with Generally Accepted Accounting Policies in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevent provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis under the historical cost conventon.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous years.

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Mar 31, 2013

1 General

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2. Revenue Recognition

In accordance with provisions of Section 209(3) of the Companies Act, 1956, the company follow accrual system of accounting.

3. Fixed Assets

Fixed assets are stated at their original cost & inclusive' of incidental and /or installation expense related to acquisition & installation of the concerned' assets.

4. Depreciation

Depreciation on all Fixed Assets is provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956 on prorate basis.

5 Investments

All investment other then those specifically classified as current are considered as long term investments. Long-term investments are carried at cost and current investments are carried at lower of cost or market price. Temporary diminution in the value of investments meant to be held for a long term is not recognized.

6 Valuation of Inventories

Raw Material : At Weighted average cost Consumable & Fuel : At cost ( FIFO )

Finished Goods : At lower of cost or net realizable value

Cost for the purpose of valuation of finished goods includes direct cost of material, Manufacturing expenses, Depreciation on Plant & Machinery, Factory Building and Cost of Sawing, Dressing etc.

7. Turnover

Sales include excise duty but does not include sales tax, freight & handling charges if any realized from customers.

8. Consumption

Consumption of consumable and fuels has been arrived at by adding purchases to opening stock and deducting dosing stock there from,

9 Employee Benefits

(I) Short term employee benefits are recognized as expenses at the undiscounted amount in the Profit & Loss Account of the year in which (lie related service is rendered

(II) Post employment and other long term employee benefits are recognized as an expenses in the profit & loss account for the year in which the employee has rendered service expect for leave encashment which is accounted for at the time of payment The expense is recognize at the present value of the amount payable determined using actuarial valuation technique. Actuarial gains and loss in the respect of post employment and other long term benefits are charges to the profit & loss Account

10. Royalty

Royally is provided on the basis of dispatch.

11. Taxation

a) Current tax is the provision made for income tax liability if any on the profits in accordance with the provisions of the Income Tax Act 1961

b) Deferred tax is recognized on timing differences being the difference resulting from the recognition of items in the financial statement and in estimating current Income Tax Provision

c) Deferred fax Assets are recognized on unabsorbed depreciation and on expenses not to be allowed on payment basis as per the Income Tax Act 1961

d) Deferred Tax Assets and Liabilities are measured using the tax rate and the tax law that have been enacted on the balance sheet date.

12. Foreign Currency Transaction

Transactions denominated in foreign currencies are normally recorded at exchange rate prevailing at the time of transaction. Foreign currency monetary items at the year end 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 al the balance sheet date are recognized as income or expenses in the period in which they arise except in the case of liabilities incurred for the purpose of acquiring the fixed assets from out side India in which case such exchange differences are adjusted in the carrying amount of fixed assets.

13. Borrowing Costs

Borrowing cost attributable to the fixed Assets during their const ruction/ renovation and modernization are capitalized, such borrowing costs are apportioned on the average basic of capital work in progress for the year, other borrowing costs are recognized as an expenses in the which they are incurred.

14. Impairment of Assets

Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from continuing use of the assets and it eventual disposal. The impairment loss to be expensed is determined as the excess of the Carrying amount over the higher of the assets net sale price or present value. Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired.

15. Provisions, Contingent Liabilities and contingent Assets

Provision are recognized for liabilities that can be measured only be using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event.

b) a probable outflow of recourses is expected to settle the obligation and

c) the amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required lo settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent Liability is disclosed in the case of

a) a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) a possible obligation, unless the probability of outflow of resources is remote.

Contingent Assets are neither recognized nor disclosed

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Mar 31, 2012

1) General

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2) Revenue Recognition

In accordance with provisions of Section 209(3) of the Companies Act, 1956, the company follow accrual system of accounting.

3) Fixed Assets

fixed assets are stated at their original cast & inclusive of incidental and /or installation expense related to acquisition & installation of the concerned assets.

4) Depreciation

Depreciation on all Fixed Assets is provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956 on prorate basis.

5) Investments

All investment other then those specifically classified as current are considered as long-term investments. Long term investments are carried at cost and current investments are carried at lower of cost or market price. Temporary diminution in the value of investments meant to be held for a long term is not recognized.

6) Valuation of Inventories

Raw Material : At Weighted average cost

Consumable & Fuel : At cost (FIFO)

Finished Goods : At lower of cost or net realizable value

Cost for the purpose of valuation of finished goods includes direct cost of material, Manufacturing expenses, Depreciation on Plant & Machinery, Factory Building and Cost of Sawing, Dressing etc.

7) Turnover

Sales include excise duty but does not include sales tax, freight & handling charges if any realized from customers.

8) Consumption

Consumption of consumable and fuels has been arrived at by adding purchases to opening stock and deducting closing stock there from.

9) Employee Benefits

(i) Short term employee benefits are recognized as expenses at the undiscounted amount in the Profit & Loss Account of the year in which the related service is rendered.

(II) Post employment and other long term employee benefits are recognized as an expenses in the profit & loss account for the year in which the employee has rendered service expect for leave encashment which is accounted for at the time of payment. The expense is recognize at the present value of the amount payable determined using actuarial valuation technique Actuarial gains and loss in the respect of post employment and other long term benefits are charges to the profit & loss Account

10)Royalty

Royalty is provided on the basis of dispatch,

11)Taxation

a) Current tax is the provision made for income tax liability, if any on the profits in accordance with the provisions of the Income Tax Act, 1961

b) Deferred lax is recognized, on timing differences, being the difference resulting from the recognition of items in the financial statement and in estimating current Income Tax Provision

c) Deferred Tax Assets are recognized on unabsorbed depreciation and on expenses not to be allowed on payment basis as per the Income Tax Act 1961.

d) Deferred Tax Assets and Liabilities are measured using the tax rate and the tax law that have been enacted on the balance sheet date.

12) Foreign Currency Transaction

Transactions denominated in foreign currencies are normally recorded at exchange rate prevailing at the time of transaction. Foreign currency monetary items at the year end 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 expenses in the period in which they arise except in the case of liabilities incurred for the purpose of acquiring the fixed assets from out side India In which case such exchange differences are adjusted in the carrying amount of fixed assets,

13) Borrowing Costs

Borrowing cost attributable to the Fixed Assets during their construction/renovation and modernization are capitalized, such borrowing costs are apportioned on the average basic of capital work in progress for the year, other borrowing costs are recognized as an expenses in the which they are incurred,

14) Impairment of Assets

Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from continuing use of the assets and it eventual disposal. The impairment loss to be expensed is determined as the excess of the Carrying amount over the higher of the assets net sale price or present value. Management periodically assesses using external and internal sources whether there is an indication that an asset may be Impaired,

15) Provisions, Contingent Liabilities and contingent Assets

Provision are recognized for liabilities that can be measured only be using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event.

b) a probable outflow of recourses is expected to settle the obligation and

c) the amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

16) Contingent Liability is disclosed in the case of

a) a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) a possible obligation, unless the probability of outflow of resources is remote.

Contingent Assets are neither recognized nor disdoser

17) Note - Loan from Canara Bank for Plant and Machinery and Stock yard (Shed) carries interest @12 25% The Loans are repayble in 60 monthlyinstallements.

18) Note - Loan from Tata Capital Financial Services Limited for Vehicle carries interest @ 7.71% The Loans are repayble in 24 monthly installements. All the above Loans are Secured by hypothecation of respective assets

19) In line with the notification dated 31st March, 2009 issued by The Ministry of Corporate Affairs, amending Accounting Standard AS11 -''Effects of Changes in Foreign Exchange Rates'', the Company has chosen to exercise the option under paragraph 46 Inserted in the standard by the notification. Accordingly, the company has adjusted the foreign currency exchange differences on amounts outstanding for acquisition of fixed assets, to the carrying cost of fixed assets

20) Debit & Credit Balances appearing under Sundry Debtors, Advance Receivables in Cash or in Kind , Unsecured Loans, Sundry Creditors are subject to confirmation & reconciliation, Adjustment, if any, in these accounts will be made as & when finally reconciled & confirmed. Trade Receivables & Trade Payables have been taken at their Book Value after making necessary adjustment on account of foreign exchange fluctuation except in cases of some old balances lying in account.

21) Contingent Liabilities & Commitments

NIL

22) During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its Financial statements. The adoption of revised Schedule VI did not have any impart on recognition and measurement principles followed for preparation of financial statements. However, it has significantly impacted the presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable In the current year.

23) which came into force w.e.f. October 2, 2006. The Company is required to identify the Micro & Small Enterprises & pay them interest on overdue beyond the specified period irrespective of the terms agreed with the enterprises. The Company has initiated the process of identification of such suppliers. In view of no, of suppliers & no receipt of critical Inputs & response from several such potential parties, the liability of interest cannot be reliable estimated nor can required disclosure be made. Accounting in this regard will be carried out after process is complete and reliable estimate con be made in this regard. Since the Company is regular in making payments to all suppliers, the management does not anticipate any significant interest liability.

24) Previous year figures vave been rearranged / regrouped where ever considered necessary

25) figures are rounded off to the nearest rupee.

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Mar 31, 2011

1 General

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles

2 Revenue Recognition

In accordance with provisions of Section 209(3) of the Companies Act. 1956. the company follow accrual system of accounting

3 Fixed Assets

Fixed assets are stated at their original cost & inclusive of incidental and /or installation expense related to acquisition & installation of the concerned assets.

A Depreciation

Depreciation on all Fixed Assets is provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956 on prorate basis.

5 Investments

All investment other then those specifically classified as current are considered as long-term investments Long-term investments are carried at cost and current investments are carried at lower of cost or market price. Temporary diminution in the value of investments meant to be held for a long term is not recognized

6 Valuation of Inventories

Raw Material : At Weighted average cost Consumable & Fuel : At cost ( FIFO ) Finished Goods : At lower of cost or net realizable value

Cost for the purpose of valuation of finished goods includes direct cost of material. Manufacturing expenses, Depreciation on Plant & Machinery, Factory Building and Cost of Sawing, Dressing etc.

7. Turnover

Sales include excise duty but does not include sales tax. freight & handling charges if any realized from customers.

8. Consumption

Consumption of consumable and fuels has been arrived at by adding purchases to opening stock and deducting closing stock there from.

9 Employee Benefits

(I) Short term employee benefits are recognized as expenses at the undiscounted amount in the Profit & Loss Account of the year in which the related service is rendered.

(II) Post employment and other long term employee benefits are recognized as an expenses in the profit & loss account for the year in which the employee has rendered service expect for leave encashment which is accounted for at the time of payment. The expense is recognize at the present value of the amount payable determined using actuarial valuation technique Actuarial gains and loss in the respect of post employment and other long term benefits are charges to the profit & loss Account

10. Royalty

Royalty is provided on the basis of dispatch.

11. Taxation

a) Current tax is the provision made for income tax liability, if any on the profits in accordance with the provisions of the Income Tax Act. 1961

b) Deferred tax is recognized, on timing differences, being the difference resulting from the recognition of items in the financial statement and in estimating current Income Tax Provision.

c) Deferred Tax Assets are recognized on unabsorbed depreciation and on expenses not to be allowed on payment basis as per the Income Tax Act 1961.

d) Deferred Tax Assets and Liabilities are measured using the tax rate and the tax law that have been enacted on the balance sheet date.

12. Foreign Currency Transaction

Transactions denominated in foreign currencies are normally recorded at exchange rate prevailing at the time of transaction. Foreign currency monetary items at the year end 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 expenses in the period in which they arise except in the case of liabilities incurred for the purpose of acquiring the fixed assets from out side India in which case such exchange differences are adjusted in the canwig amount of fixed assets

13. Borrowing Costs

Borrowing cost attributable to the fixed Assets during their construction/renovation and modernization are capitalized, such borrowing costs are apportioned on the average basic of capital work in progress for the year, other borrowing costs are recognized as an expenses in the which they are incurred

14. Impairment of Assets

Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from continuing use of the assets and it eventual disposal The impairment loss to be expensed is determined as the excess of the Carrying amount over the higher of the assets net saie price or present value Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired.

15. Provisions, Contingent Liabilities and contingent Assets

Provision are recognized for liabilities that can be measured only be using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event.

b) a probable outflow of recourses is expected to settle the obligation and

c) the amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent Liability is disclosed in the case of

a) a present obligation arising from a past event, when-it is not probable that an outflow of resources will be required to settle the obligation.

b) a possible obligation, unless the probability of outflow of resources'is remote.

Contingent Assets are neither recognized nor discloser