Accounting Policies of Jaipan Industries Ltd. Company

Mar 31, 2024

1. Company Information / Overview

Jaipan Industries Limited (the Company) ts a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act 19S6. Its shares are listed on BSfc Limited (BSE) .The Registered office of the Company is situated at 17/1, WalbhatRd, Cama Industrial Estate, Goregaon, Mumbai, Maharashtra400053

The Company is engaged in Business of sales and services of Electronic Household Accessories

2. Summary of Significant Accounting Policies

2.1 Basis of preparation of F inancial Statements

2.1.1 Statement of Compliance

The financial statements of the Company are prepared in Compliance with Indian Accounting Standards (’Ind AS'') notified under Section 133 of the Companies AcL 2013. read together with the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 and other relevant provisions of the AcL The Statements are prepared under Ihe historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values.

Effective Apnl 1, 2017 the Company has adopted all the Ind AS standards and the adoption as earned out in accordance with Ind AS 101. First time Adoption of Indian Accounting Standards, with Apnl 1,2016 as the transition date The transition was carried out from Indian Accounting Pnnciples generally accepted in India as presenbed under section 133 of Ihe Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP). which was Ihe previous GAAP.

The accounting policies have been applied consistently over all the penods presented in these financial statements except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use

The financial statements are prepared in INR. which is the company''s functional currency

2.1.2 Historical Cost convention

The Financial Statements have been prepared under histoncal cost convention on accrual basis except lor certain assets and liabilities as stated in the respective policies, which have been measured at fair value.

2.1.3 Current / N on-Current classification

The 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 Act Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities Accordingly, all assets and liabilities have been classified as current or non current as per the Company''s operating cycle and other critena set out in Ind AS 1 ''Presentation of Financial Statements'' and Schedule III to the Companies AcL 2013. Cash or cash equivalent is treated as currenL unless restneted from being exchanged or used lo settle a liabil ity for at least twelve months after the reporting period

2.1.4 Functional and Presentation currency

Items included in the Financial Statements of the Company are measured and presented using the currency of the primary economic environment in which the Company operates ("Functional Currency"). Indian Rupee is the Functional and Presentation Currency of the Company

2.2 Revenue recognition - Revenue from Sale of Goods / Services

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, net of discounts. Revenue is recorded provided the recovery of consideration is probable and determinable

2.3 Property Plant and Equipment

2.3.1 Tangible Assets

All property plant and equipment are stated at histoncal cost of acquisition less accumulated depreciation and impairment if any Histoncal cost includes purchase pnee. taxes and duties (net of tax credits), labour cost and directly attnbutabte overhead expenditure incurred upto the date the asset is ready fonts intended use.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropnate.

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 separate asset is derecognized when replaced. All other repairs and maintenance are charged to Profit or Loss dunng the reporting period in which they are incurred

2.3.2 Intangible assets

Intangible assets are measured at cost less accumulated amortisation and impairment losses, if any. Identifiable intangible assets are recognized when the Company controls the asset it is probable that future economic benefits expected with the respective assets will flow to the Company lor more than one economic period; and the cost of the asset can be measured reliably Amortisation is provided on Straight Line Method (SLM). which reflect the management''s estimate of the useful life of the intangible assets

The useful lives of intangible assets are reviewed annually to determine if a reset of such useful life is required for assets. Based an such review, the useful life may change The impact of such changes, if any. is accounted for as a change in accounting estimate

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired f he amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset

2.3.3 Impairment of assets

Assessment is done at each Balance Sheet date as to whether there is any indication that an asset (tangible and intangible) may be impaired. If any such indication exists, an estimate of the recoverable amount of the asset/ cash generating unit is made Far the purpose of assessing impairment the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash Inflows from other assets or groups of assets, is considered as a cash generating unit. Assets whose carrying value exceeds their recoverable amount are whiten down to the recoverable amount Recoverable amount is higher of cash generating unit''s net selling pnce and its value in use Value in use is the present value of estimated future cash flows expected to anse from the continuing use of an asset and from its disposal at the end of its useful life Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognised for an asset in pnor accounting periods may no longer exist or may have decreased.

2.4 Depreciation and Amortization

Depreciation on PPE (other than free hold and lease hold land) has been provided based on useful life of the assets in accordance with Schedule II ol the Companies Act 2013. on Straight Line Method Freehold land is not depreciated Leasehold land and leasehold improvements are amortized over the primary penod of lease.

Depreciation methods, useful lives and residual value are reviewed at each reporting date and adjusted prospectively, if appropriate

If part of an item of PPE with a cost that is significant in relation to the total cost of the asset and useful life of that part is different from remaining part of the asset such significant part is depreciated separately Depreciation is charged on pro rata basis from the date of addition (i .e , when the assets are ready for their intended use) / till the date of disposal. An item of PPE is derecognized upon disposal or when no future economic benefits are expected to anse from the continued use of the asseL Gains or losses on such disposal of assets are recognised in statement of profit and loss.

Where the residual values are not more than 5% of onginal cost of the asset no depreciation is provided.

2.5 Inventories

2.5.1 Inventories are stated at the lower of cost (computed on moving weighted average basis) and net realizable Value

2.5.2 Cost includes the cost of purchase including duties and taxes (net of tax credit), freight inward and other expenditure directly attnbutable to purchase

Cost of work in progress and finished goods comprises of all direct costs and applicable manufactunng overheads incurred to bnngmg the inventones to the present location and condition

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

2.6 Borrowing Costs

fhe Company capitalises borrowing costs that are directly attnbutable to the acquisition, construction or production of

qualifying asset as a part of the cost of the asset. The Company recognises other borrowing costs as an expense in the period in which it incurs them A qualifying asset is an asset that necessarily takes a substantial penod of time to gel ready for its intended use or sale.

To the extent the Company borrows generally and uses them lor the purpose of obtaining a qualifying asset, amount of borrowing cost eligible for capitalization is computed by applying a capitalization rate to the expenditure incurred The capitalization rate is determined based on the weighted average of borrowing costs, other than borrowings made specifically towards purchase of a qualifying asset.

2.7 Foreign Currency Translation

2.7.1 Functional and presentation currency

The management has determined the currency of the primary economic environment in which the Company operates lb., functional currency, to be Indian Rupees (?) The financial statements are presented in Indian Rupees, which is the Company’s functional and presentation currency. All amounts have been rounded to the nearest rupee, unless otherwise stated.

2.7.2 Foreign currency transactions and translations

Monetary and non monetary transactions in foreign currencies are initially recorded m the functional currency of the Company at the exchange rates at the date of the transactions or at an average rate if the average rate approximates the actual rate at the date of the transaction.

Monetary foreign currency assets and liabilities remaining unsettled on reporting date are translated at the rates of exchange prevailing on reporting date. Ciains/flosses) an sing on account of rea lisa tion/settlement of foreign exchange transactions and on translation of monetary foreign currency assets and liabilities are recognized in the Statement of Profi t and Loss.

2.8 Taxes on Income

2.8.1 Current Tax

I he current tax is based on taxable profit for the year faxable profit differs from ’profit before tax’ as reported m the statement of profit or loss and other comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting penod.

Current tax assets and liabilities are offset only if there is a legally enforceable nght to set off the recognized amounts and rt is intended to settle the liability on a net basis or simultaneously

2.8.2 Deferred Tax

Deterred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deterred tax assets to be recovered

Deterred tax liabilities and assets are measured at the tax rates that are expected to apply in the penod in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting penod

Deterred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority

The break up of the major components of the deferred tax assets and liabilities as at balance sheet date has been arrived at after setting off deferred tax assets and I labilities where the Company has a legally enforceable nght to set off assets against liabilities and where such assets and liabilities relate to taxes on income levied by the same governing taxation laws.

2.8.3 Current and Deferred Tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in

other comprehensive income or directly in equity respectively.

Minimum Alternate Tax (MAT) is accounted as current tax when the Company is subjected to such provisions of the Indian Income Tax Act t961. However, credit of such MAT paid is available when the Company is subjected to tax as per normal provisions in the future Credit on account of MAT is recognized as an asset based on its recoverability in the future. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the company will pay normal income tax during the specified penod

2.9 Provisions and Contingent Liabilities

2.9.1 Provisions

A provision is recorded when the Company has a present or constructive obligation as a result of past events, It is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obi igation

Provisions are reviewed at the end of each reporting period and adjusted lo reflect the current best estimate. A provision is reversed when it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation

2.9.2 Contingent Liabilities

Contingent liabilities are disclosed when there is a possible obligation ansmg from past events, the 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 Company Show cause notices are not considered as Contingent Liabilities unless converted intD demand

2.9.3 Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant nsk of changes in value

2.10 Financial Assets

2.10.1 Classification

The Company classifies its financial assets in the following measurement categories:

(i) Those measured subsequently at fair value through profit or loss (m case of investments in mutual funds)

(ii) Those measured at amortised cost

2.10.2 Measurement

Initial Recognition Measurement

Financial assets are recognised when the company becomes party to the contract. The Company measures a financial asset at its fair value plus cost that are directly attnbutable to the acquisition of the financial asset Transaction costs of financial assets earned at fair value through profit or loss 3re recognised in the Statement of Profil and Loss.

2.10.3 Subsequent Measurement

2.10.3.1 Investments

Investments are subsequently measured at Fair value through Profit and loss Income or loss from these financial assets is included in other income or other expenses.

2.10.3.2 Other Financial Assets

After Initial Measurement financial assets are subsequently measured at amortised cost using the effective interest rate method (EIR method) Amortised cost is calculated by taking into account any discount or premium and lees or cost that are an integral part of EIR. The EIR amortization is included in finance income in the statement of profit and loss. The losses ansmg from impairment are recognised in the statement ol profit and loss

2.10.4 Impairment of Financial Assets

The Company recognizes loss allowances using the Expected Credit Loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL For all other financial assets, expected credit tosses are measured at an amount equal to the 12 month ECL, unless there has been a significant increase in credit nsK from initial recognition, in which case those financial assets are measured at lifetime ECL The changes (incremental or reversal) in toss allowance computed using ECL model, are recognised as an impairment gain or loss in the Statements Profitand Loss.

2.10.5 Dc recognition of Financial Assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primanly derecognised (Le. removed from the Company’s balance sheet) when the nghts to receive cash Rows from the asset have expired.

2.11 Financial Liabilities

2.11.1 Classification

The Company classifies all financial liabilities as subsequently measured at amortised cost.

2.11.2 Initial recognition and measurement

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts All financial liabilities are recognized initially at lair value and. m the case of loans and borrowings and payables, net of directly allnbutable transaction cosls.

2.11.3 Loans and Borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the EIR method Gains and losses are recognised in the Statement of Profit and Loss when Ihe liabilibes are derecognised

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of Ihe EIR. The EIR amortisation is included as finance costs in the Statement of Profit and Loss. This category generally applies to interest bearing loans and borrowings

2.11.4 De-recognition

Afinancial liability is derecognised when the obligation under the liability is discharged or cancelled or expires When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms ol an existing liability are substantially modified, such an exchange or modification is treated as Ihe derecogmbon of the original liability and the recognition of a new liability The difference in the respective carrying amounts is recognised rn the Statement of Profit and Loss

2.11.5 Offsetting of Financial Instruments

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

2.12 Segment Information

The Company has idenbfied "Domestic Appliances" as a only reportable segment based on the manner in which operabng results are reviewed by the Chief Operating Decision Maker (CODM).

2.13 Prior Period

Errors of matenal amount relabng to prior period(s) are disclosed by a note with nature of prior penod errors, amount of correction of each such prior penod presented retrospectively, to the extent practicable along with change in basic and diluted earnings per share However where retrospective restatement is not practicable for a particular penod then the circumstances that led to the existence of that condition and the description of how and from where the error is corrected are disclosed in notes forming part of Financial statements

2.14 Cash Flow Statement

Cash flow statement is prepared in accordance with the indirect method presenbed in Ind AS 7 ’Statement of Cash Flows’

2.15 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attnbutable to equity shareholders by the weighted average number of equity shares outstanding during the year

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attnbutable to equity

shareholders and the weighted average number of shares outstanding dunng the year are adjusted for the effects of ail dilutive potential equity shares

2.16 Critical Estimates & Judgements

The preparation of financial statements In conformity with the generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amount of assets and liabilities as at the balance sheet date and reported revenue and expenses for the year and disclosure of contingent liabilities as of the date of balance sheet The estimates and assumptions used in the accompanying financial statements are based upon the management’s evaluation of the relevant circumstances as of the date of financial statements. Actual amounts could differ from these estimates

2.17 Rounding of Amounts

All amounts disclosed in the financial statements and notes are presented in INK lakhs and has been rounded off to two decimals as per the requirements of Division II of schedule III to the Act. unless otherwise staled

2.18 Recent pronouncements

Ministry of Corporate Affairs (''MCA*) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Mules as issued from time to time For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company

---

Mar 31, 2015

A) Use of estimates

The preparation of the financial statements are in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent liabilities at the date of financial statements. The key estimates made by the Company in preparing these financial statements comprise provision for expenses, retirement benefits, provision for doubtful debts and income taxes. Actual results could differ from those estimates. Any revision to the accounting estimates is recognised prospectively in current and future periods.

b) Fixed assets, Intangible Assets, Work in Progress and depreciation

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and other costs attributable to bringing the asset to its working condition for its intended use, net of cenvat recoverable. Intangible Assets are recognised when it is probable that the future economic benefits that are attributable to the assets will flow to the enterprises and he cost of the asset can be measured reliably.

Capital Work in progress comprises outstanding advances paid to acquire fixed assets. The cost of fixed assets that is not yet ready for their intended use at the Balance sheet date.

Depreciation on fixed assets is provided on the Strated Line Methods (SLM), at the rates and the manner prescribed in Schedule II to the Act which as per management is representative of the estimated useful life of these assets. Leasehold improvements are amortised over the primary lease period. Proportionate depreciation is charged for additions/deletions during the year. Individual asset costing less than Rs. 5,000 are depreciated in full in the year of purchase.

c) Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. Current investments are carried at lower of cost and fair value, determined on an individual investment basis. All other investments are classified as long-term investments and are carried at cost. However, a provision for diminution in value is made if the diminution in value is other than temporary.

d) Inventories

INVENTORIES ARE VALUED AS UNDER:

a) Raw materials, stores and spares and packaging materials: Lower of cost and net realisable value. Cost is determined on FIFO basis.

b) Finished goods: Lower of cost and net realisable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty.

c) Traded goods: Lower of cost and net realisable value. Cost is determined on FIFO basis.

d) Work-in-process: At cost upto estimated stage of completion. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity.

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

e) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer usually on acceptance of the goods and other revenue recognition criteria are met and is stated net of trade discounts, rebates, excise duties, sales returns and all applicable sales tax and duties.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividends

Revenue is recognized when the Companies right to receive the payment is established.

f) Foreign exchange transactions

Transactions in foreign currencies are recorded at the rates prevailing on the date of the transaction. Monetary items denominated in foreign currency are restated at the rate prevailing on the balance sheet date. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences arising on the settlement of monetary items or on reporting company's monetary items at rates different from those at which they were initially recorded during the year or reported in the previous financial statements, are recognised as follows: i Exchange differences arising on settlement of transactions and translation of monetary items other than those covered by (ii) below are recognized as income or expense in the year in which they arise.

g) Export benefits/incentives

Export entitlements under the Duty Entitlement Pass Book scheme ('DEPB') are recognised in the profit and loss account on cash basis in respect of the exports made. Obligation/entitlements on account of Advance License Scheme for import of raw materials are accounted for on the purchase of raw materials and/or export sales.

h) Provisions and contingencies

A provision is recognised when an enterprise has a present obligation as a result of a past event; 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 its present value and are determined based on 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.

i) Employee retirement benefits Defined contribution plan - provident fund

The employees entitled to receive benefits under the provident fund as defined, in Employees Provident Fund and Miscellaneous Provisions Act, 1952, receive the benefits of provided fund contribution. Both, the employee and the employer make monthly contributions to the plan at a predetermined rate (presently at 12%) of the employees' basic salary. The Company has no further obligations under the plan beyond its monthly contributions. These contributions are made to the fund administered and managed by the Government of India and are charged to Profit and Loss Account.

j) Taxation

The Charge for current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.

The Charge for Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates or tax rates that are substantively enacted at the Balance Sheet dates. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the period that includes the enactment date. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in the future. At each balance sheet date the Company re-assesses unrecognised deferred tax assets.

Minimum Alternative tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period.

k) Borrowings 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 takes necessarily substantial period of time to get ready for its intended use. All other borrowing cost are charged to revenue.

l) Impairment of Assets

At the date of each Balance Sheet, the company evalues internally, indications of the impairment if any, to the carrying amount of its fixed and other assets. If any indication does exist, the recoverable amount is estimated at the higher of the realizable value and the value in use, as considered appropriate. If the estimated realizable value is less than the carrying amount, an impairment loss is recognised.

Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years.

m) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting applicable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

4. Loans:

a) Secured working capital loans:

These include Cash Credit, Packing Credit and letter of credit facility from Bank of Baroda secured by way of charge on hypothecation of inventories and book debts (except specific clearing and forwarding services receivables) of the Company, situated at Silvasa and Mumbai office and other Branch . Further, these loans are secured by collateral charge on factory Building situated at silvassa. Further, these loans are secured by personal guarantee of Directors, Mr. J.N. Agawal and Mr. Atin Agarwal. These loans are generally extended for a period of one year and mutually renewable every year with a clause of payable on demand.

b) Secured term loans:

These include loans from banks and financial institutions secured by way of first charge / mortgage in respect of the Company's immovable and movable properties, both present and future. Presently company has not obtained any secured terms loan from any bank or the financial institution.

c) Secured vehicle loans:

These include hire-purchase loans from banks for purchase of various vehicles secured by way of hypothecation of respective vehicles. Amounts payable within one year Rs. 43,32,321.30/-(previous year: Rs. 67,07,617.20/-).

d) Unsecured loans:

Working capital requirements obtained from others and is payable within one year. These loans are generally extended for a period of one year and mutually renewable every year with a clause of payable on demand.

5. Sundry Creditors

The Company has no details of Small Scale Industrial undertakings & Micro, Small and Medium Enterprises.

---

Mar 31, 2014

A) Use of estimates

The preparation of the financial statements are in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent liabilities at the date of financial statements. The key estimates made by the Company in preparing these financial statements comprise provision for expenses, retirement benefits, provision for doubtful debts and income taxes. Actual results could differ from those estimates. Any revision to the accounting estimates is recognised prospectively in current and future periods.

b) Fixed assets, Intangible Assets , Work in Progress and depreciation Fixed assets are stated at cost of acquisition or construction less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and other costs attributable to bringing the asset to its working condition for its intended use, net of cenvat recoverable.

Intangible Assets are recognised when it is probable that the future economic benefits that are attributable to the assets will flow to the enterprises and he cost of the asset can be measured reliably.

Capital Work in progress comprises outstanding advances paid to acquire fixed assets. The cost of fixed assets that is not yet ready for their intended use at the Balance sheet date.

Depreciation on fixed assets is provided on the Written down Value (WDV), at the rates and the manner prescribed in Schedule XIV to the Act which as per management is representative of the estimated useful life of these assets. Leasehold improvements are amortised over the primary lease period. Proportionate depreciation is charged for additions/deletions during the year. Individual asset costing less than Rs 5,000 are depreciated in full in the year of purchase.

c) Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. Current investments are carried at lower of cost and fair value, determined on an individual investment basis. All other investments are classified as long-term investments and are carried at cost. However, a provision for diminution in value is made if the diminution in value is other than temporary.

d) Inventories:

INVENTORIES ARE VALUED AS UNDER:

a) Raw materials, stores and spares and packaging materials: Lower of cost and net realisable value. Cost is determined on FIFO basis.

b) Finished goods: Lower of cost and net realisable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty.

c) Traded goods: Lower of cost and net realisable value. Cost is determined on FIFO basis.

d) Work-in-process: At cost upto estimated stage of completion. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity.

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

e. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer usually on acceptance of the goods and other revenue recognition criteria are met and is stated net of trade discounts, rebates, excise duties, sales returns and all applicable sales tax and duties.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividends

Revenue is recognized when the Companies right to receive the payment is established.

f. Foreign exchange transactions

Transactions in foreign currencies are recorded at the rates prevailing on the date of the transaction. Monetary items denominated in foreign currency are restated at the rate prevailing on the balance sheet date. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences arising on the settlement of monetary items or on reporting company''s monetary items at rates different from those at which they were initially recorded during the year or reported in the previous financial statements, are recognised as follows:

i Exchange differences arising on settlement of transactions and translation of monetary items other than those covered by (ii) below are recognized as income or expense in the year in which they arise.

g) Export benefits/incentives

Export entitlements under the Duty Entitlement Pass Book scheme (''DEPB'') are recognised in the profit and loss account on cash basis in respect of the exports made. Obligation/entitlements on account of Advance License Scheme for import of raw materials are accounted for on the purchase of raw materials and/or export sales.

h) Provisions and contingencies

A provision is recognised when an enterprise has a present obligation as a result of a past event; 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 its present value and are determined based on 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.

i) Employee retirement benefits

Defined contribution plan - provident fund

The employees entitled to receive benefits under the provident fund as defined, in Employees Provident Fund and Miscellaneous Provisions Act, 1952, receive the benefits of provided fund contribution. Both, the employee and the employer make monthly contributions to the plan at a predetermined rate (presently at 12%) of the employees'' basic salary. The Company has no further obligations under the plan beyond its monthly contributions. These contributions are made to the fund administered and managed by the Government of India and are charged to Profit and Loss Account.

j) Taxation

The Charge for current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.

The Charge for Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates or tax rates that are substantively enacted at the Balance Sheet dates. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the period that includes the enactment date. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in the future. At each balance sheet date the Company re-assesses unrecognised deferred tax assets. Minimum Alternative tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period.

k) Borrowings 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 takes necessarily substantial period of time to get ready for its intended use. All other borrowing cost are charged to revenue.

l) Impairment of Assets

At the date of each Balance Sheet, the company evalues internally, indications of the impairment if any, to the carrying amount of its fixed and other assets. If any indication does exist, the recoverable amount is estimated at the higher of the realizable value and the value in use, as considered appropriate. If the estimated realizable value is less than the carrying amount, an impairment loss is recognised. Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years.

m) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting applicable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

---

Mar 31, 2013

A. Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent liabilities at the date of financial statements. The key estimates made by the Company in preparing these financial statements comprise provision for expenses, retirement benefits, provision for doubtful debts and income taxes. Actual results could differ from those estimates. Any revision to the accounting estimates is recognised prospectively in current and future periods.

b. Fixed assets and depreciation

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and other costs attributable to bringing the asset to its working condition for its intended use, net of cenvat recoverable.

Intangible Assets are recognised when it is probable that the future economic benefits that are attributable to the assets will flow to the enterprises and he cost of the asset can be measured reliably.

Capital Work in progress comprises outstanding advances paid to acquire fixed assets. The cost of fixed assets that is not yet ready for their intended use at the Balance sheet date.

Depreciation on fixed assets is provided on the Written down Value (WDV), at the rates and the manner prescribed in Schedule XIV to the Act which as per management is representative of the estimated useful life of these assets. Leasehold improvements are amortised over the primary lease period. Proportionate depreciation is charged for additions/deletions during the year. Individual asset costing less than Rs 5,000 are depreciated in full in the year of purchase.

c. Investments

IInvestments that are readily realisable and intended to be held for not more than a year are classified as current investments. Current investments are carried at lower of cost and fair value, determined on an individual investment basis. All other investments are classified as long-term investments and are carried at cost. However, a provision for diminution in value is made if the diminution in value is other than temporary.

d. Inventories

Inventories are valued as under:

a) Raw materials, stores and spares and packaging materials: Lower of cost and net realisable value. Cost is determined on FIFO basis.

b) Finished goods: Lower of cost and net realisable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty.

c) Traded goods: Lower of cost and net realisable value. Cost is determined on FIFO basis.

d) Work-in-process: At cost upto estimated stage of completion. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity..

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

e. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer usually on acceptance of the goods and other revenue recognition criteria are met and is stated net of trade discounts, rebates, excise duties, sales returns and all applicable sales tax and duties.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividends

Revenue is recognized when the Companies right to receive the payment is established.

f. Foreign exchange transactions

Transactions in foreign currencies are recorded at the rates prevailing on the date of the transaction. Monetary items denominated in foreign currency are restated at the rate prevailing on the balance sheet date. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences arising on the settlement of monetary items or on reporting company''s monetary items at rates different from those at which they were initially recorded during the year or reported in the previous financial statements, are recognised as follows::

i) Exchange differences arising on settlement of transactions and translation of monetary items other than those covered by (ii) below are recognized as income or expense in the year in which they arise.

g. Export benefits/incentives

Export entitlements under the Duty Entitlement Pass Book scheme (''DEPB'') are recognised in the profit and loss account on cash basis in respect of the exports made. Obligation/entitlements on account of Advance License Scheme for import of raw materials are accounted for on the purchase of raw materials and/or export sales.

h. Provisions and contingencies

A provision is recognised when an enterprise has a present obligation as a result of a past event; 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 its present value and are determined based on 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.

i. Employee retirement benefits

Defined contribution plan - provident fund

The employees entitled to receive benefits under the provident fund as defined, in Employees Provident Fund and Miscellaneous Provisions Act, 1952, receive the benefits of provided fund contribution. Both, the employee and the employer make monthly contributions to the plan at a predetermined rate (presently at 12%) of the employees'' basic salary. The Company has no further obligations under the plan beyond its monthly contributions. These contributions are made to the fund administered and managed by the Government of India and are charged to Profit and Loss Account.

j. Taxation

The Charge for current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.

The Charge for Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates or tax rates that are substantively enacted at the Balance Sheet dates. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the period that includes the enactment date. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in the future. At each balance sheet date the Company re-assesses unrecognised deferred tax assets.

Minimum Alternative tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period.

k. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting applicable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

---

Mar 31, 2009

A) Basis of Preparation of Financial Statmentc :

The fincical statement are prepared under historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956. The Company generally follows mercantile system of accounting and recognises significant items of Income and Expenditure on accural basis.

b) Use of Estimates :

The presentation of financial statements require estimates and assumptions to be made which affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of income and expenses during the reporting period.Diftrence between the actual results and estimates are recognised in the period in which the results are known.

c) Fixed Assets and Depreciation :

(i) Fixed Assets are stated at cost of acqsition and net of CENVAT including the amount of accumulated depreciation

(ii) Depreciation on fixed assets has been provided on written down value method at the rates specified in Schedule XIV of the Companies Act, 1956, read with Section 205(2)(a). Depreciation in respect of addition to assets has been charged on pro-rata basis with reference to the period of use of such assets.

d) Investments:

Investments are stated at Cost.

e) Inventories:

1) Stock of finished goods are valued at cost or net realisable value whichever is lower. For this purpose, stocks in respect of which Excise Duty is paid valued at cost including Excise Duty.

2) Raw mateials and Packng materials, at cost

3) Motor and Spare parts, at cost

4) During the year due to fire company has a net Loss of Material Rs.1,39,69,927/- after considration of insurance claim, and it has been duly deducation from the Stock.

f) Revenue Recogintion :

Sales are recognised on the despatch of goods to customers & are Exclusive of Sales tax.

g) Debit/Credit Notes :

Debit and Credit Notes are accounted for on cash basis.

h) Provisions,Contingent Liabilities, Contingent Assets :

1) The Company recognises a provision when there is a present obligatin as a result of past events and it is probable that there will be an outflow of resources to settle the obligation in respect of which reliable estimates can be made.

2) All liabilities have been provided for in the accouts excepts liabilites of a contingent nature, or as per the terms of contract or arrangement, and, have been disclosed wherever necessary.

3) Contingent assets are neither recognised nor disclosed.

i) Foreign Currancy Transaction :

All transactions in foreign currencies are recorded on the basis of actual payment/realisation.

j) Employee Retirement Benefit:

All short term benefits like such as salaries, wages, bonus, allowances, medicals, which fall due within 12 months of the period in which the employee renders the related services which entitles him to avail such benefits and non accumulating componsted absences [like sick leave and maternity leave] are recognised on an undiscounted basis and charge to profit & loss account.

Defined Contribution Plan :

Companys contributions paid / payable during the year to provident fund are charged to profit & loss account.

k) Taxation:

1) Current Tax is determined at the current rates based on assessable income.

2) Deferred Tax is determined using the rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax are recognised and carried forward only if there is reasonable certainty of its realization.However in case of carried forward losses and unabsorbed depreciation under the Income Tax Avt, 1961, The Deferred Tax Assets is recognised if and only if there is virtual certainty backed by convenincing evidence of its realization. Such assets are reviewed at each Balance Sheet date to reassess its realization.

3) Provision for Fringe Benefit Tax is made in accordance with the provision of Incomr Tax Act, 1961.

l) Amortisation of Preliminary Expenses :

Preliminary expenses are amortised one fifth of the expenditure every year.