Accounting Policies of Jyoti Ltd. Company

Mar 31, 2025

1.1. Description of Business :

Jyoti Ltd., a leading Engineering Company, serving the Core Sectors of Power and Water. It offers reliable
quality hydraulic and electrical products and services. It is principally engaged in designing and
manufacturing wide range of Pumps and EPC Pumping Systems from concept to commissioning. The
Company is a Public Limited Company domiciled in India and is incorporated under the provision of the
Companies Act applicable in India. Its shares are listed on the Bombay Stock Exchange in India. The
registered office of the Company is located at Nanubhai Amin Marg, Vadodara - 390 003, India.

The Financial Statements are approved by the Company’s Board of Directors on 27th May, 2025.

1.2. Basis of Preparation of Financial Statements :

The Financial Statements of the Company have been prepared in accordance with Indian Accounting
Standards ( Ind AS ) as prescribed under Section 133 of the Act to be read with Rule 3 of the Companies (
Indian Accounting Standards ) Rules, 2015 and Companies ( Indian Accounting Standards ) Amendment
Rules, 2016. The Company’s Financial Statements for the year ended 31st March, 2025 comprises of the
Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, Statement of Changes in Equity and
the Notes to Financial Statements.

The Financial Statements have been prepared on a historical cost convention on the accrual basis,
except for Derivative Financial Instruments which have been measured at fair value.

1.3. Significant Accounting Judgments, Estimates and Assumptions :

In preparing these Financial Statements, the Management has made judgments, estimates and
assumptions that affect the application of accounting policies and the reported amount of assets,
liabilities, income and expense. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Any change in these
estimates and assumptions will generally be reflected in the Financial Statements in current period or
prospectively, unless they are required to be treated retrospectively under relevant accounting
standards.

1.4. Sales and Income from Operation:

Sales of goods:

(i) Sales are accounted on dispatch of goods. Net Sales exclude amount recovered towards Freight, Goods
& Service Tax and is net of discounts. Erection and Commissioning Income is recognised as revenue,
generally, to the extent of completion of erection work as assessed or as and when it becomes due as per
terms of contracts.

(ii) Export sales are recognized on the date of bill of lading / airway bill.

Income from Services: Repairs and Service Income is recognised as revenue after the service is
rendered.

Other Operating Income:

• Income from royalty and others is recognized on an accrual basis in accordance with the terms of the
relevant agreement.

• Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt.

• Duty Drawback refund claims are accounted as and when accrued.

Interest & Dividend:

Interest:

Interest income is recognized on a time proportion basis taking into account the amount outstanding and
the applicable interest rate. Interest income is included under the head “Other Income” in the Statement
of Profit and Loss.

Dividend:

Dividend income is recognized when the Company’s right to receive dividend is established.

1.5. Exceptional Items :

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an
understanding of the performance of the Company is treated as an exceptional item and the same is disclosed
in the notes to accounts.

1.6. Property, Plant and Equipment :

Property, Plant and Equipment were carried on historical cost / value transferred as per the scheme of
arrangement in the Balance Sheet as on 31st March, 2016 prepared in accordance with Indian GAAP The
Company has elected to regard those values as deemed cost at the date of the transition i.e. 1st April, 2016 as
permitted under Ind AS 101.

(i) Fixed Assets are stated at cost of acquisition / construction (net of GST wherever applicable and
expenditure incurred including interest on borrowing and financial cost) except certain land and building
which were revalued at market value and are stated at Revalued Cost.

(ii) Depreciation is provided on Straight-Line Method on all assets at the rates and in the manner specified as
per the useful life prescribed in Schedule II to the Companies Act, 2013.

(iii) Intangible Fixed Assets: Depreciation is provided over their estimated economic life, in accordance with
Ind AS.

(iv) Leasehold Land is amortized over the period of lease.

(v) In case the recoverable amount of the fixed assets is lower than its carrying amount, a provision is made
for the impairment loss.

1.7. Investments:

Long term Investments are stated at cost with an appropriate provision for permanent diminution in value, if any.

1.8. Inventories:

• All Inventories are valued at lower of cost or net realisable value.

• Raw Materials, Stores and Spares & Packing Materials are valued at lower of cost determined on
weighted average basis or net realisable value.

• Work in process is valued at lower of cost or net realisable value.

• Finished Goods are valued at lower of cost or net realisable value.

1.9. Employee Benefits:

Employee benefits are provided as follows:

(i) Gratuity : The gratuity liability is funded through the scheme administered by the ICICI

Prudential Life Insurance Co. Ltd., and the amount paid/provided under the
scheme are charged to Statement of Profit and Loss on the basis of actuarial
valuations.

: The service cost and the net interest cost would be charged to the Statement of
Profit and Loss. Actuarial gains and losses arise due to difference in the actual
experience and the assumed parameters and also due to changes in the
assumptions used for valuation. The Company recognizes these re¬
measurements in the Other Comprehensive Income (OCI).

(ii) Superannuation : Superannuation as per Superannuation Scheme is provided for / paid to

employees.

(iii) Company’s contributions payable to Provident Fund and Family Pension Fund are charged to Statement
of Profit and Loss.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on
retirement. Though encashment is at the discretion of the Management for the leave accumulated while
in service as well as on retirement, it is provided for during the year on the basis of actuarial valuations.

1.10. R & D Expenses:

All revenue expenses related to R & D including expenses in relation to development of product / processes are
charged to the Statement of Profit & Loss in the year in which it is incurred.

1.11. Foreign Currency Transactions:

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the
year are translated at year end exchange rates.

1.12. Income Taxes:

Income Tax expense comprises Regular Tax or Minimum Alternate Tax and is provided for as required by
Income Tax Law and Rules & Regulations framed there under.

Deferred Income Tax Assets and Liabilities are recognized for all temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the Financial Statements. Deferred Tax Assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax
benefit will be realized.

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Mar 31, 2024

1. Company Overview and Significant Accounting Policies1.1. Description of Business

Jyoti Ltd., a leading Engineering Company, serving the Core Sectors of Power and Water. It offers reliable quality hydraulic and electrical products and services. It is principally engaged in designing and manufacturing wide range of Pumps and EPC Pumping Systems from concept to commissioning. The Company is a Public Limited Company domiciled in India and is incorporated under the provision of the Companies Act applicable in India. Its shares are listed on the Bombay Stock Exchange in India. The registered office of the Company is located at Nanubhai Amin Marg, Vadodara - 390 003, India.

The Financial Statements are approved by the Company''s Board of Directors on 28^th May, 2024.

1.2. Basis of Preparation of Financial Statements

The Financial Statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Act to be read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. The Company''s Financial Statements for the year ended 31^st March, 2024 comprises of the Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, Statement of Changes in Equity and the Notes to Financial Statements.

The Financial Statements have been prepared on a historical cost convention on the accrual basis, except for Derivative Financial Instruments which have been measured at fair value.

1.3. Significant Accounting Judgments, Estimates and Assumptions

In preparing these Financial Statements, the Management has made judgments, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expense. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Any change in these estimates and assumptions will generally be reflected in the Financial Statements in current period or prospectively, unless they are required to be treated retrospectively under relevant accounting standards.

1.4. Sales and Income from Operation

Sales of goods :

(i) Sales are accounted on dispatch of goods. Net Sales exclude amount recovered towards Freight, Goods & Service Tax and is net of discounts. Erection and Commissioning Income is recognised as revenue, generally, to the extent of completion of erection work as assessed or as and when it becomes due as per terms of contracts.

(ii) Export sales are recognized on the date of bill of lading / airway bill.

Income from Services: Repairs and Service Income is recognised as revenue after the service is rendered.

Other Operating Income :

- Income from royalty and others is recognized on an accrual basis in accordance with the terms of the relevant agreement.

- Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt.

- Duty Drawback refund claims are accounted as and when accrued.

Interest & Dividend :

Interest : Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head “Other Income” in the Statement of Profit and Loss.

Dividend : Dividend income is recognized when the Company''s right to receive dividend is established.

1.5. Exceptional Items

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the Company is treated as an exceptional item and the same is disclosed in the notes to accounts.

1.6. Property, Plant and Equipment

Property, Plant and Equipment were carried on historical cost / value transferred as per the scheme of arrangement in the Balance Sheet as on 31^st March, 2016 prepared in accordance with Indian GAAP. The Company has elected to regard those values as deemed cost at the date of the transition i.e. 1^st April, 2016 as permitted under Ind AS 101.

(i) Fixed Assets are stated at cost of acquisition / construction (net of GST wherever applicable and expenditure incurred including interest on borrowing and financial cost) except certain land and building which were revalued at market value and are stated at Revalued Cost.

(ii) Depreciation is provided on Straight-Line Method on all assets at the rates and in the manner specified as per the useful life prescribed in Schedule II to the Companies Act, 2013.

(iii) Intangible Fixed Assets: Depreciation is provided over their estimated economic life, in accordance with Ind AS.

(iv) Leasehold Land is amortized over the period of lease.

(v) In case the recoverable amount of the fixed assets is lower than its carrying amount, a provision is made for the impairment loss.

1.7. Investments

Long term Investments are stated at cost with an appropriate provision for permanent diminution in value, if any.

1.8. Inventories

- All Inventories are valued at lower of cost or net realisable value.

- Raw Materials, Stores and Spares & Packing Materials are valued at lower of cost determined on weighted average basis or net realisable value.

- Work in process is valued at lower of cost or net realisable value.

- Finished Goods are valued at lower of cost or net realisable value.

1.9. Employee Benefits

Employee benefits are provided as follows:

(i) Gratuity : The gratuity liability is funded through the scheme administered

by the ICICI Prudential Life Insurance Co. Ltd., and the amount paid/provided under the scheme are charged to Statement of Profit and Loss on the basis of actuarial valuations.

The service cost and the net interest cost would be charged to the Statement of Profit and Loss. Actuarial gains and losses arise due to difference in the actual experience and the assumed parameters and also due to changes in the assumptions used for valuation. The Company recognizes these re-measurements in the Other Comprehensive Income (OCI).

(ii) Superannuation : Superannuation as per Superannuation Scheme is provided for

/ paid to employees.

(iii) Company''s contributions payable to Provident Fund and Family Pension Fund are charged to Statement of Profit and Loss.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. Though encashment is at the discretion of the Management for the leave accumulated while in service as well as on retirement, it is provided for during the year on the basis of actuarial valuations.

1.10. R & D Expenses

All revenue expenses related to R & D including expenses in relation to development of product / processes are charged to the Statement of Profit & Loss in the year in which it is incurred.

1.11. Foreign Currency Transactions

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates.

1.12.Income Tax

Income Tax expense comprises Regular Tax or Minimum Alternate Tax and is provided for as required by Income Tax Law and Rules & Regulations framed there under.

Deferred Income Tax Assets and Liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Financial Statements. Deferred Tax Assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

1.13.Contingent Liabilities and Commitments

(a) Provisions are recognized when the Company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

(b) Contingent Liabilities are disclosed after careful evaluation by the Management of facts and legal aspects of the matter involved.

(c) Contingent Assets are neither recognized nor disclosed in the Financial Statements except MAT Credit Entitlement.

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Mar 31, 2023

Note 24:- Significant Accounting Policies and Other explanatory notes and information 1. Company Overview and Significant Accounting Policies1.1. Description of Business

Jyoti Ltd., a leading Engineering Company, serving the Core Sectors of Power and Water. It offers reliable quality hydraulic and electrical products and services. It is principally engaged in designing and manufacturing wide range of Pumps and EPC Pumping Systems from concept to commissioning. The Company is a Public Limited Company domiciled in India and is incorporated under the provision of the Companies Act applicable in India. Its shares are listed on the Bombay Stock Exchange in India. The registered office of the Company is located at Nanubhai Amin Marg, Vadodara - 390 003, India.

The Financial Statements are approved by the Company''s Board of Directors on 30^th May, 2023.

1.2. Basis of Preparation of Financial Statements

The Financial Statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Act to be read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. The Company''s Financial Statements for the year ended 31^st March, 2023 comprises of the Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, Statement of Changes in Equity and the Notes to Financial Statements.

The Financial Statements have been prepared on a historical cost convention on the accrual basis, except for Derivative Financial instruments which have been measured at fair value.

1.3. Significant Accounting Judgments, Estimates and Assumptions

In preparing these Financial Statements, the Management has made judgments, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expense. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Any change in these estimates and assumptions will generally be reflected in the Financial Statements in current period or prospectively, unless they are required to be treated retrospectively under relevant accounting standards.

1.4. Sales and Income from Operation

Sales of goods :

(i) Sales are accounted on dispatch of goods. Net Sales exclude amount recovered towards Freight, Goods & Service Tax and is net of discounts. Erection and Commissioning Income is recognised as revenue, generally, to the extent of completion of erection work as assessed or as and when it becomes due as per terms of contracts.

(ii) Export sales are recognized on the date of bill of lading / airway bill.

Income from Services : Repairs and Service Income is recognised as revenue after the service is rendered.

Other Operating Income :

- Income from royalty and others is recognized on an accrual basis in accordance with the terms of the relevant agreement.

- Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt.

- Duty Drawback refund claims are accounted as and when accrued.

Interest & Dividend :

Interest : Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head “Other Income” in the Statement of Profit and Loss.

Dividend : Dividend income is recognized when the Company''s right to receive dividend is established.

1.5. Exceptional Items

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the Company is treated as an exceptional item and the same is disclosed in the notes to accounts.

1.6. Property, Plant and Equipment

Property, Plant and Equipment were carried on historical cost / value transferred as per the scheme of arrangement in the Balance Sheet as on 31^st March, 2016 prepared in accordance with Indian GAAP. The Company has elected to regard those values as deemed cost at the date of the transition i.e. 1^st April, 2016 as permitted under Ind AS 101.

(i) Fixed Assets are stated at cost of acquisition / construction (net of GST wherever applicable and expenditure incurred including interest on borrowing and financial cost) except certain land and building which were revalued at market value and are stated at Revalued Cost.

(ii) Depreciation is provided on Straight-Line Method on all assets at the rates and in the manner specified as per the useful life prescribed in Schedule II to the Companies Act, 2013.

(iii) Intangible Fixed Assets: Depreciation is provided over their estimated economic life, in accordance with Ind AS.

(iv) Leasehold Land is amortized over the period of lease.

(v) In case the recoverable amount of the fixed assets is lower than its carrying amount, a provision is made for the impairment loss.

1.7. Investments

Long term Investments are stated at cost with an appropriate provision for permanent diminution in value, if any.

1.8. Inventories

- All Inventories are valued at lower of cost or net realisable value.

- Raw Materials, Stores and Spares & Packing Materials are valued at lower of cost determined on weighted average basis or net realisable value.

- Work in process is valued at lower of cost or net realisable value.

- Finished Goods are valued at lower of cost or net realisable value.

1.9. Employee Benefits

Employee benefits are provided as follows:

(i) Gratuity : The gratuity liability is funded through the scheme administered

by the ICICI Prudential Life Insurance Co. Ltd., and the amount paid/provided under the scheme are charged to Statement of Profit and Loss on the basis of actuarial valuations.

The service cost and the net interest cost would be charged to the Statement of Profit and Loss. Actuarial gains and losses arise due to difference in the actual experience and the assumed parameters and also due to changes in the assumptions used for valuation. The Company recognizes these re-measurements in the Other Comprehensive Income (OCI).

(ii) Superannuation : Superannuation as per Superannuation Scheme is provided for

/ paid to employees.

(iii) Company''s contributions payable to Provident Fund and Family Pension Fund are charged to Statement of Profit and Loss.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. Though encashment is at the discretion of the Management for the leave accumulated while in service as well as on retirement, it is provided for during the year on the basis of actuarial valuations.

1.10. R & D Expenses

All revenue expenses related to R & D including expenses in relation to development of product / processes are charged to the Statement of Profit & Loss in the year in which it is incurred.

1.11. Foreign Currency Transactions

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates.

1.12.Income Tax

Income Tax expense comprises Regular Tax or Minimum Alternate Tax and is provided for as required by Income Tax Law and Rules & Regulations framed there under.

Deferred Income Tax Assets and Liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Financial Statements. Deferred Tax Assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

1.13.Contingent Liabilities and Commitments

(a) Provisions are recognized when the Company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

(b) Contingent Liabilities are disclosed after careful evaluation by the Management of facts and legal aspects of the matter involved.

(c) Contingent Assets are neither recognized nor disclosed in the Financial Statements except MAT Credit Entitlement.

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Mar 31, 2016

(A) Basis of Preparation of Financial Statements

The Financial Statements are prepared as per historical cost convention on Accrual basis and are in conformity with mandatory Accounting Standards specified under section 133 of the Companies Act, 2013 read with rule 7 of Companies (Accounts) Rules, 2014.

(B) Sales and Income from Operation

Sales of goods :

(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts recovered towards sales tax, octroi, freight and is net of discounts. Erection and Commissioning Income is recognized as revenue, generally, to the extent of completion of erection work as assessed or as and when it becomes due as per terms of contracts.

(ii) Export sales are recognized on the date of bill of lading / Airway bill.

Income from Services : Repairs and Service Income is recognized as revenue after the service is rendered.

Other Operating Income : Income from royalty and others is recognized on an accrual basis in accordance with the terms of the relevant agreement.

Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt.

Excise duty / Duty Drawback refund claims are accounted as and when accrued. Interest & Dividend :

Interest: Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head “other income” in the Statement of Profit and Loss.

Dividend : Dividend income is recognized when the Company’s right to receive dividend is established.

(C) Fixed Assets, Depreciation, Amortization and Impairment Loss

(i) Fixed Assets are stated at cost of acquisition / construction (net of cenvat wherever applicable and expenditure incurred including interest on borrowing and financial cost) except certain land and building which were revalued at market value and are stated at revalued Cost.

(ii) Depreciation is provided on Straight-line Method on all assets at the rates and in the manner specified as per the useful life prescribed in Schedule II to the Companies Act, 2013.

(iii) Intangible Fixed Assets: Depreciation is provided over their estimated economic life, in accordance with Accounting Standard on ‘ Intangible Assets ’ ( AS-26)

(iv) Leasehold Land is amortized over the period of lease.

(v) In case the recoverable amount of the fixed assets is lower than its carrying amount, a provision is made for the impairment loss.

(D) Investments

Long term Investments are stated at cost with an appropriate provision for permanent diminution in value, if any.

(E) Inventories

All Inventories are valued at lower of cost and net realizable value.

Raw Materials and Components / Press tools are valued at lower of cost determined on weighted average basis and net realizable value.

Material-in-transit is valued at lower of cost and net realizable value.

Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials determined on a weighted average basis, labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty.

(F) Debenture / Share Issue Expenses

Debenture issue expenses and Share issue expenses are charged out in the year in which they are incurred.

(G) Employee Benefits

Employee benefits are provided as follows:

(i) Gratuity : The gratuity liability is funded through the scheme administered

by the ICICI Prudential Life Insurance Co.Ltd, and the amount paid/provided under the scheme are charged to Statement of Profit and Loss on the basis of actuarial valuations.

(ii) Superannuation : Superannuation as per Superannuation Scheme is provided for / paid to employees or to Superannuation Trust Fund, administered by the ICICI Prudential Life Insurance Co .Ltd.

(iii) Company’s contributions payable to Provident Fund and Family Pension Fund are charged to Statement of Profit and Loss.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. Though encashment is at the discretion of the Management for the leave accumulated while in service as well as on retirement, it is provided for during the year on the basis of actuarial valuations.

(H) R & D Expenses

All revenue expenses related to R & D including expenses in relation to development of product / processes are charged to the Statement of Profit & Loss Account in the year in which it is incurred.

(I) Foreign Currency Transactions

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates.

(J) Derivative Transactions

The Company uses derivative financial instruments, such as Forward Exchange Contracts, to hedge its risks associated with foreign currency fluctuations. At every period end all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognized in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognized by the Company.

(K) Income Taxes

Income tax expense comprises Regular Tax or Minimum Alternate Tax and is provided for as required by Income Tax Law and Rules & Regulations framed there under.

Deferred Tax Assets and Liabilities are recognized as per Accounting Standard (AS) - 22 on Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India. Deferred Tax Assets are recognized and carried forward to the extent there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

(L) Contingent Liabilities and Commitments

(a) Provisions are recognized when the Company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

(b) Contingent Liabilities are disclosed after careful evaluation by the Management of facts and legal aspects of the matter involved.

(c) Contingent Assets are neither recognized nor disclosed in the financial statement except MAT Credit Entitlement.

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Mar 31, 2015

(A) Basis of Preparation of Financial Statements

The Financial Statements are prepared as per historical cost conversion and on Accrual basis and are in conformity with mandatory Accounting Standards specified under section 133 of the Companies Act, 2013 read with rule 7 of Companies (Accounts) Rules, 2014.

(B) Sales and Income from Operation

Sales of goods :

(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts recovered towards sales tax, octopi, freight and is net of discounts. Erection and Commissioning Income is recognized as revenue, generally, to the extent of completion of erection work as assessed or as and when it becomes due as per terms of contracts.

(ii) Export sales are recognized on the date of bill of lading / Airway bill.

Income from Services: Repairs and Service Income misrecognised as revenue after the service is rendered.

Other Operating Income : Income from royalty and others is recognized on an accrual basis in accordance with the terms of the relevant agreement.

Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt and claims payable are accounted at the time of acceptance.

Excise duty / Duty Drawback refund claims are accounted as and when accrued.

Interest & Dividend :

Interest : Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the Statement of Profit and Loss.

Dividend : Dividend income is recognized when the Company's right to receive dividend is established by the reporting date.

(C) Fixed Assets, Depreciation, Amortization and Impairment Loss

(i) Fixed Assets are stated at cost of acquisition (net of canvas wherever applicable and expenditure incurred including interest on borrowing and financial cost) / construction except certain land and building which were revalued at market value and are stated at revalued Cost.

(ii) Depreciation is provided on Straight-line Method on all assets at the rates and in the manner specified as per the useful life prescribed in Schedule II to the Companies Act, 2013.

(iii) Intangible Fixed Assets: Over their estimated economic life, in accordance with Accounting Standard on 'Intangible Assets' (AS-26)

(iv) Leasehold Land is amortized over the period of lease. (v) In case the recoverable amount of the fixed assets is lower than its carrying amount, a provision is made for the impairment loss.

(D) Investments

Long term Investments are stated at cost with an appropriate provision for permanent diminution in value, if any.

(E) Inventories

All Inventories are valued at lower of cost and net realizable value.

Raw Materials and Components / Press tools are valued at lower of cost determined on weighted average baseband net realizable value.

Material-in-transit is valued at lower of cost and net realizable value.

Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials determined on a weighted average basis, labor and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty.

(F) Debenture / Share Issue Expenses

Debenture issue expenses and Share issue expenses are charged out in the year in which they are incurred.

(G) Employee Benefits

Employee benefits are provided as follows:

(i) Gratuity : The gratuity liability is funded through the scheme administered

by the ICICI Prudential Life Insurance Colt, and the amount paid/provided under the scheme are charged to Statement of Profit and Loss on the basis of actuarial valuations.

(ii) Superannuation : Superannuation payable as per Superannuation Scheme is provided by payment to Superannuation Trust Fund, administered by the ICICI Prudential Life Insurance Co.Ltd.

(iii) Company's contributions payable to Provident Fund and Family Pension Fund are charged to Statement of Profit and Loss.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. Though encashment is at the discretion of the Management for the leave accumulated while in service as well as on retirement, it is provided for during the year on the basis of actuarial valuations.

(H) R & D Expenses

All revenue expenses related to R & D including expenses in relation to development of product / processes are charged to the Statement of Profit & Loss Account in the year in which it is incurred.

(I) Foreign Currency Transactions

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates.

(J) Derivative Transactions

The Company uses derivative financial instruments, such as Forward Exchange Contracts, to hedge its risks associated with foreign currency fluctuations. At every period end all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognized in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognized by the Company.

(K) Income Taxes

Income tax expense comprises Regular Tax or Minimum Alternate Tax and is provided for as required by Income Tax Law and Rules & Regulations framed there under.

Deferred Tax Assets and Liabilities are recognised as per Accounting Standard (AS-22) on Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India. Deferred Tax Assets are recognized and carried forward to the extent there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

(L) Contingent Liabilities and Commitments

(a) Provisions are recognized when the Company has present legal or constructive obligation, asa result of past events, for which it is probable that anoutflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

(b) Contingent Liabilities are disclosed after careful evaluation by the Management of facts and legal aspects of the matter involved.

(c) Contingent Assets are neither recognized nor disclosed in the financial statement except MAT Credit Entitlement.

As per requirement of Section 22 of Micro, Small & Medium Enterprises Development Act, 2006 following information is disclosed to the extent identifiable:-

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Mar 31, 2014

(A) Basis of Preparation of Financial Statements

The Financial Statements are prepared as per historical cost conversion and on Accrual basis and are in conformity with mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956 and the generally accepted accounting policies in India.

(B) Sales and Income from Operation

Sales of goods :

(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts recovered towards sales tax, octroi, freight and is net of discounts. Erection and Commissioning Income is recognised as revenue, generally, to the extent of completion of erection work as assessed or as and when it becomes due as per terms of contracts.

(ii) Export sales are recognized on the date of bill of lading / Airway bill.

Income from Services : Repairs and Service Income is recognised as revenue after the service is rendered.

Other Operating Income : Income from royalty and others is recognized on an accrual basis in accordance with the terms of the relevant agreement.

Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt and claims payable are accounted at the time of acceptance.

Excise duty / Duty Drawback refund claims are accounted as and when accrued.

Interest & Dividend :

Interest : Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the Statement of Profit and Loss.

Dividend : Dividend income is recognized when the Company''s right to receive dividend is established by the reporting date.

(C) Fixed Assets, Depreciation, Amortization and Impairment Loss

(i) Fixed Assets are stated at cost of acquisition (net of cenvat wherever applicable and expenditure incurred including interest on borrowing and financial cost) / construction except certain land and building which were revalued at market value and are stated at revalued Cost.

(ii) Depreciation is provided :

a) In respect of assets acquired upto June, 1986 on straight-line method in accordance with Circular No.1/86 issued by the Department of Company Affairs.

b) In respect of assets acquired after 1st July, 1986 on straight-line method at the rates specified in Schedule XIV of the Companies Act, 1956.

(iii) Intangible Fixed Assets: Over their estimated economic life, in accordance with Accounting Standard on ''Intangible Assets'' (AS-26)

(iv) An amount representing the difference between depreciation on Revalued Assets and on Original Cost of Assets is transferred from Revaluation Reserve to Statement of Profit and Loss.

(v) Leasehold Land is amortised over the period of lease, if any.

(vi) In case, the recoverable amount of the fixed assets is lower than its carrying amount, a provision is made for the impairment loss, if any.

(D) Investments

Long term Investments are stated at cost with an appropriate provision for permanent diminution in value.

(E) Inventories

All Inventories are valued at lower of cost and net realisable value.

Raw Materials and Components are valued at lower of cost determined on weighted average basis and net realisable value.

Material in transit is valued at cost and net realisable value.

Work-in-progress and finished goods are valued at lower of cost and net realisable value. Cost includes direct materials, labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty and is determined on a weighted average basis.

(F) Debenture / Share Issue Expenses

Debenture issue expenses and Share issue expenses are charged out in the year in which they are incurred.

(G) Employee Benefits Employee benefits to employees are provided as follows:

(i) Gratuity : The gratuity liability is funded through the scheme administered

by the ICICI Prudential Life Insurance Co.Ltd, and the amount paid/provided under the scheme are charged to Statement of Profit and Loss on the basis of actuarial valuations.

(ii) Superannuation : Superannuation payable as per Superannuation Scheme is

provided by payment to Superannuation Trust Fund, administered by the ICICI Prudential Life Insurance Co.Ltd.

(iii) Company''s contributions payable to Provident Fund and Family Pension Fund are charged to Statement of Profit and Loss.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. Though encashment is at the discretion of the Management for the leave accumulated while in service as well as on retirement, it is provided for during the year on the basis of actuarial valuations.

(H) R & D Expenses

All revenue expenses related to R & D including expenses in relation to development of product / processes are charged to the Profit & Loss Account in the year in which it is incurred.

(I) Foreign Currency Transactions

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates.

(J) Derivative Transactions

The Company uses derivative financial instruments, such as Forward Exchange Contracts, to hedge its risks associated with foreign currency fluctuations. At every period end all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognised in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognised by the Company.

(K) Income Taxes

Income tax expense comprises Regular Tax or Minimum Alternate Tax and is provided for as required by Income Tax Law and Rules & Regulations framed there under. Deferred Tax Assets and Liabilities are recognised as per Accounting Standard (AS) - 22 on Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India. Deferred Tax Assets are recognized and carried forward to the extent there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

(L) Contingent Liabilities and Commitments

(a) Provisions are recognized when the Company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

(b) Contingent Liabilities are disclosed after careful evaluation by the Management of facts and legal aspects of the matter involved.

(c) Contingent Assets are neither recognized nor disclosed in the financial statement except MAT Credit Entitlement.

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Mar 31, 2013

(A) Basis of Preparation of Financial Statements

The Financial Statements are prepared as per historical cost conversion and on Accrual basis and are in conformity with mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956 and the generally accepted accounting policies in India.

(B) Sales and Income from Operation

Sales of goods :

(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts recovered towards sales tax, octroi, freight and is net of discounts. Erection and Commissioning Income is recognised as revenue, generally, to the extent of completion of erection work as assessed or as and when it becomes due as per terms of contracts.

(ii) Export sales are recognized on the date of bill of lading / Airway bill.

Income from Services :

Repairs and Service Income is recognised as revenue after the service is rendered.

Other Operating Income :

Income from royalty and others is recognized on an accrual basis in accordance with the terms of the relevant agreement.

Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt and claims payable are accounted at the time of acceptance.

Excise duty / Duty Drawback refund claims are accounted as and when accrued.

Interest & Dividend :

Interest :

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

Dividend :

Dividend income is recognized when the Company''s right to receive dividend is established by the reporting date.

(C) Fixed Assets, Depreciation, Amortization and Impairment Loss

(i) Fixed Assets are stated at cost of acquisition (net of cenvat wherever applicable and expenditure incurred including interest on borrowing and financial cost) / construction except certain land and building which were revalued at market value and are stated at revalued Cost.

(ii) Depreciation is provided :

a) In respect of assets acquired upto June, 1986 on straight-line method in accordance with Circular No.1/86 issued by the Department of Company Affairs.

b) In respect of assets acquired after 1st July, 1986 on straight-line method at the rates specified in Schedule XIV of the Companies Act, 1956.

(iii) Intangible Fixed Assets: Over their estimated economic life, in accordance with Accounting Standard on ''''Intangible Assets'''' (AS-26)

(iv) An amount representing the difference between depreciation on Revalued Assets and on Original Cost of Assets is transferred from Revaluation Reserve to Statement of Profit and Loss.

(v) Leasehold Land is amortized over the period of Lease, if any.

(vi) In case, the recoverable amount of the fixed assets is lower than its carrying amount, a provision is made for the impairment loss, if any.

(D) Investments

Long term Investments are stated at cost with an appropriate provision for permanent diminution in value.

(E) Inventories

All Inventories are valued at lower of cost and net realizable value.

Raw Materials and Components are valued at lower of cost determined on weighted average basis and net realizable value.

Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials, labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty and is determined on a weighted average basis.

(F) Debenture / Share Issue Expenses

Debenture issue expenses and Share issue expenses are charged out in the year in which they are incurred.

(G) Employee Benefits Benefits to employees are provided as follows:

(i) Gratuity : The gratuity liability is funded through the scheme administered by the ICICI Prudential Life Insurance Co.Ltd., and the amount paid/provided under the scheme are charged to Statement of Profit and Loss on the basis of actuarial valuations.

(ii) Superannuation : Superannuation payable as per Superannuation Scheme is provided by payment to Superannuation Trust Fund, administered by the ICICI Prudential Life Insurance Co.Ltd.

(iii) Company''s contributions payable to Provident Fund and Family Pension Fund are charged to Statement of Profit and Loss.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. Though encashment is at the discretion of the management for the leave accumulated while in service as well as on retirement, it is provided for during the year on the basis of actuarial valuations.

(H) R & D Expenses

All revenue expenses related to R & D including expenses in relation to development of product / processes are charged to the Profit & Loss Account in the year in which it is incurred.

(I) Foreign Currency Transactions

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates.

(J) Derivative Transactions

The Company uses derivative financial instruments, such as Forward Exchange Contracts, to hedge its risks associated with foreign currency fluctuations. At every period end all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognised in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognised by the Company.

(K) Income Taxes

Income tax expense comprises Regular Tax or Minimum Alternate Tax and is provided for as required by Income Tax Law and Rules & Regulations framed thereunder.

Deferred Ta x Assets and Liabilities are recognised as per Accounting Standard (AS) - 22 on Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India. Deferred Tax Assets are recognized and carried forward to the extent there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

(L) Contingent Liabilities and Commitments

(a) Provisions are recognized when the Company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

(b) Contingent Liabilities are disclosed after careful evaluation by the Management of facts and legal aspects of the matter involved.

(c) Contingent Assets are neither recognized nor disclosed in the financial statement except MAT Credit Entitlement.

---

Mar 31, 2012

(A) Basis of Preparation of Financial Statements

The Financial Statements are prepared as per historical cost conversion and on Accrual basis and are in conformity with mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956 and the generally accepted accounting policies in India.

(B) Sales and Income from Operation

Sales of goods :

(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts recovered towards sales tax, octroi, freight and is net of discounts. Erection and Commissioning Income is recognized as revenue, generally, to the extent of completion of erection work as assessed or as and when it becomes due as per terms of contracts.

(ii) Export sales are recognized on the date of bill of lading / Airway bill.

Income from Services :

Repairs and Service Income is recognized as revenue after the service is rendered. Other Operating Income :

Income from royalty and others is recognized on an accrual basis in accordance with the terms of the relevant agreement.

Claims receivable are accounted at the time of lodgment, depending on the certainty of receipt and claims payable are accounted at the time of acceptance.

Excise duty / Duty Drawback refund claims are accounted as and when accrued.

Interest & Dividend :

Interest :-

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

Dividend :-

Dividend income is recognized when the Company's right to receive dividend is established by the reporting date.

(C) Fixed Assets, Depreciation, Amortization and Impairment Loss

(i) Fixed Assets are stated at cost of acquisition (net of canvas wherever applicable and expenditure incurred including interest on borrowing and financial cost) / construction except certain land and building which were revalued at market value and are stated at revalued Cost.

(ii) Depreciation is provided :

a) In respect of assets acquired up to June, 1986 on straight-line method in accordance with Circular No.1/86 issued by the Department of Company Affairs.

b) In respect of assets acquired after 1st July, 1986 on straight-line method at the rates specified in Schedule XIV of the Companies Act, 1956.

(iii) Intangible Fixed Assets: Over their estimated economic life, in accordance with Accounting Standard on 'Intangible Assets' (AS-26)

(iv) An amount representing the difference between depreciation on Revalued Assets and on Original Cost of Assets is transferred from Revaluation Reserve to Statement of Profit and Loss.

(v) Leasehold Land is amortized over the period of Lease, if any.

(vi) In case, the recoverable amount of the fixed assets is lower than its carrying amount, a provision is made for the impairment loss, if any.

(D) Investments

Long term Investments are stated at cost with an appropriate provision for permanent diminution in value.

(E) Inventories

All Inventories are valued at lower of cost and net realizable value.

Raw Materials and Components are valued at lower of cost determined on weighted average basis and net realizable value.

Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials, labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty and is determined on a weighted average basis.

(F) Debenture / Share Issue Expenses

Debenture issue expenses and Share issue expenses are charged out in the year in which they are incurred.

(G) Employee Benefits Employee benefits to employees are provided as follows:

(i) Gratuity : The gratuity liability is funded through the scheme administered by the ICICI Prudential Life Insurance Co.Ltd., and the amount paid/provided under the scheme are charged to Statement of Profit and Loss on the basis of actuarial valuations.

(ii) Superannuation : Superannuation payable as per Superannuation Scheme is

provided by payment to Superannuation Trust Fund, administered by the ICICI Prudential Life Insurance Co.Ltd.

(iii) Company's contributions payable to Provident Fund and Family Pension Fund are charged to Statement of Profit and Loss.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. Though encashment is at the discretion of the management for the leave accumulated while in service as well as on retirement, it is provided for during the year on the basis of actuarial valuations.

(H) R & D Expenses

All revenue expenses related to R & D including expenses in relation to development of product / processes are charged to the Profit & Loss Account in the year in which it is incurred.

(I) Foreign Currency Transactions

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates.

(J) Derivative Transactions

The Company uses derivative financial instruments, such as Forward Exchange Contracts, to hedge its risks associated with foreign currency fluctuations. At every period end all outstanding derivative contracts are fair valued on a mark-to-market basis and any loss on valuation is recognized in the Statement of Profit and Loss, on each contract basis. Any gain on mark-to-market valuation on respective contracts is not recognized by the Company.

(K) Income Taxes

Income tax expense comprises Regular Tax or Minimum Alternate Tax and is provided for as required by Income Tax Law and Rules & Regulations framed there under.

Deferred Tax Assets and Liabilities are recognized as per Accounting Standard (AS) - 22 on Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India.

(L) Contingent Liabilities and Commitments

(a) Provisions are recognized when the Company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

(b) Contingent Liabilities are disclosed after careful evaluation by the Management of facts and legal aspects of the matter involved.

(c) Contingent Assets are neither recognized nor disclosed in the financial statement except MAT Credit Entitlement.

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Mar 31, 2010

(A) Sales

(i) Sales are accounted on dispatch of goods. Net Sales exclude amounts recovered towards sales tax, octroi, freight and is net of discounts.

(ii) Erection and commissioning Income is recognised as revenue, generally, to the extent of completion of erection work as assessed or as and when it becomes due as per terms of contracts.

(iii) Repairs and Service Income is recognised as revenue after the service is rendered.

(B) Accounting of Claims and Subsidies

(i) Claims receivable are accounted at the time of lodgement, depending on the certainty of receipt and claims payable are accounted at the time of acceptance.

(ii) Excise duty / Duty Drawback refund claims are accounted as and when accrued.

(iii) Investment subsidy not specifically related to the fixed assets is credited to Capital Reserve and retained till the requisite conditions are fulfilled.

(C) Fixed Assets, Depreciation and Impairment Loss

(i) Fixed Assets are stated at cost of. acquisition (net of cenvat wherever applicable) / construction except certain land and building which were revalued at market value and are stated at revalued Cost.

(ii) Depreciation is provided :

a) In respect of assets acquired upto June, 1986 on straight-line method in accordance with Circular No.1/86 issued by the Department of Company Affairs.

b) In respect of assets acquired after 1st July, 1986 on straight-line method at the rates specified in Schedule XIV of the Companies Act, 1956.

(iii) An amount representing the difference between depreciation on Revalued Assets and on Original Cost of Assets is transferred from Revaluation Reserve to Profit and Loss Account.

(iv) Cost of Lease-hold land is not amortised.

(v) In case, the recoverable amount of the fixed assets is lower than its carrying amount, a provision is made for the impairment loss.

(D) Expenditure during Construction period

In case of new projects and substantial expansion, expenditure incurred including interest on borrowings and financing cost is capitalised.

(E) Investments

Long term Investments are stated at cost with an appropriate provision for permanent diminution in value.

(F) Inventories

All Inventories are valued at lower of cost and net realisable value.

Raw Materials and Components are valued at lower of cost determined on weighted average basis and net realisable value.

Work in progress is valued at lower of cost and net realisable value.

Finished Goods is valued at lower of cost including excise payable thereon and net realisable value.

(G) Deferred Revenue Expenditure

Debenture / Share Issue Expenses

Debenture Issue expenses and Share Issue expenses are charged out in the year in which they are incurred.

(H) Retirement Benefits Retirement benefits to employees are provided as follows:

(i) Gratuity : Gratuity payable to employees is provided on the basis of

actuarial valuations.

(ii) Superannuation : Superannuation payable to certain employees is provided for

by provision / payment to Superannuation Trust Fund as per Superannuation Scheme.

(iii) Companys contributions payable to Provident Fund and Family Pension Fund are charged to Profit and Loss account.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. However, it does not have any defined Retirement Benefit Scheme in this regard. Though encashment is at the discretion of the management for the leave accumulated while in service as well as on retirement, it is provided for during the year on the basis of actuarial valuations.

(I) Research and Development

Revenue expenditure relating to Research and Development is charged out in the year in which it is incurred. Capital expenditure incurred for Research and Development is capitalised.

(J) Foreign Currency Transactions

(i) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end exchange rates.

(ii) The difference in translation of monetary assets & liabilities and realized gains & losses on foreign exchange transaction are recognised in the Profit and Loss Account.

(K) Deferred Tax

Deferred Tax Assets and Liabilities are recognised in accordance with Accounting Standard (AS) - 22 on Accounting for Taxes on Income, issued by The Institute of Chartered Accountants of India.

(L) Provisions, contingent liabilities and contingent assets

(a) Provisions are recognised when the Company has present legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

(b) Contingent Liabilities are disclosed after careful evaluation by the Management of • facts and legal aspects of the matter involved.

(c) Contingent Assets are neither recognised nor disclosed in the Financial Statements.