Accounting Policies of Kanishk Steel Industries Ltd. Company

Mar 31, 2024

1. Corporate Information

Kanishk Steel Industries Limited (“the Company”), having CIN L27109TN1995PLC067863 is engaged in the manufacture and supply of Iron and Steel Products.

The Company was incorporated as private company in the year 1989 under the provisions of Companies Act, 1956 and converted to a public limited company in the year 1995. The Company''s shares are listed on the Bombay Stock Exchange Limited and the shares are traded regularly. The registered office of the company is at B27M, SIPCOT Industrial Complex, Gummidipoondi, Thiruvallur District - 601 201, Tamilnadu.

2. Basis of preparation and presentation of Financial Statements

a) Statement of Compliance

Financial Statements have been prepared in accordance with the accounting principles generally accepted in India including Indian Accounting Standards (Ind AS) prescribed under the section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) and presentation and disclosures requirement of Division II of revised Schedule III of the Companies Act 2013, (Ind AS Compliant Schedule III), as applicable to financial statement.

Accordingly, the Company has prepared these Financial Statements which comprise the Balance Sheet as at March 31,2024, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity for the year ended as on that date, and accounting policies and other explanatory information (together hereinafter referred to “Financial Statements”).

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

The financial statements are presented in Indian Rupees (?) and all values are rounded to the nearest two decimal lakhs, except otherwise stated.

These financial statements are approved for issue by the Board of Directors on May 28, 2024.

b) Basis of preparation and presentation

i) The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, unless otherwise stated. All assets and liabilities are classified into current and non-current generally based on the nature of product/activities of the Company and the normal time between acquisition of assets/ Liabilities and their realisation/settlement in cash or cash equivalent. The Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

ii) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes in account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of I nd AS 102, leasing transactions that are within the scope of Ind AS 116, fair value of plan assets within scope the of Ind AS 19 and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1,2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurements in its entirety, which are described as follows:

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

Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability. The Financial Statement is presented in INR and all values are rounded to the nearest lakhs except when otherwise stated.

iii) Current and non-current classification

The Company presents assets and liabilities in the balance sheet based on current / noncurrent classification.

An asset is classified as current when it satisfies any of the following criteria :

• It is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle. it is held primarily for the purpose of being traded;

• It is expected to be realized within 12 months after the reporting date; or

• It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

• it is expected to be settled in the Company''s normal operating cycle;

• it is held primarily for the purpose of being traded;

• it is due to be settled within 12 months after the reporting date; or the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the

reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

• All other liabilities are classified as non-current.

• The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified 12 months as its operating cycle.

• Deferred tax assets and liabilities are classified as noncurrent only.

3. Material Accounting Policies Information

The principal accounting policies applied in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

i) Property, Plant and Equipment (PPE)

Property, plant and equipment including bearer assets are carried at historical cost of acquisition or deemed cost less accumulated depreciation and accumulated impairment loss, if any. Historical cost includes its purchase price, including import duties and nonrefundable purchase taxes after deducting trade discounts and rebates and any cost directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Subsequent expenditure related to an asset is added to its book value 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 the replaced part is derecognized. All repairs and maintenance are charged to the Statement of Profit and Loss during the financial year in which these are incurred.

The company''s lease Land has been separately shown under PPE as Right of Use (ROU) Assets. Capital Work-in-progress includes developmental expenses, equipment to be installed, construction and erection materials etc. Such costs are added to related PPE and are classified to the appropriate categories when completed and ready for intended use.

ii) Intangible assets

Patents, trademarks and software costs are included in the balance sheet as intangible assets when it is probable that associated future economic benefits would flow to the Company. In this case they are measured initially at purchase cost and then amortized on a straight-line basis over their estimated useful lives. All other costs on patents, trademarks and software are expensed in the statement of profit and loss as and when incurred. Expenditure on research activities is recognized as an expense in the period in which it is incurred. Costs incurred on individual development projects are recognized as intangible assets from the date when all of the following conditions are met:

a. Completion of the development is technically feasible.

b. It is the intention to complete the intangible asset and use or sell it.

c. Ability to use or sell the intangible asset.

d. It is clear that the intangible asset will generate probable future economic benefits.

e. Adequate technical, financial and other resources to complete the development and to use or sell the intangible asset are available.

f. It is possible to reliably measure the expenditure attributable to the intangible asset during its development.

Recognition of costs as an asset is ceased when the project is complete and available for its intended use, or if these criteria are no longer applicable.

Where development activities do not meet the conditions for recognition as an asset, any associated expenditure is treated as an expense in the period in which it is incurred. Subsequent to initial recognition, intangible assets with definite useful lives are reported at cost or deemed cost applied on transition to Ind AS, less accumulated amortization and accumulated impairment losses.

Cost of computer software packages including directly attributable cost, if any, acquired for internal use, is allocated / amortized over a period of 3 years (being estimated useful life thereof) on Straight line method.

iii) Leases

The Company''s lease asset classes primarily consist of Lease hold land. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities include these options considered for arriving at ROU and lease liability when it is reasonably certain that they will be exercised.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment, whether it will exercise an extension or a termination option.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement

date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

The company has taken land on long term lease. There are no commitment towards monthly/ yearly lease payments accordingly lease liability and its corresponding disclosures does not arise.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

iv) Depreciation and amortization of property, plant and equipment and intangible assets Depreciation or amortization is provided so as to write off, on a straight-line basis, the cost/deemed cost of property, plant and equipment and intangible assets, including those held under finance leases to their residual value. These charges are commenced from the dates the assets are available for their intended use and are spread over their estimated useful economic lives or, in the case of leased assets, over the lease period, if shorter. The estimated useful lives of assets, residual values and depreciation method are reviewed regularly and, when necessary, revised.

Depreciation on assets under construction commences only when the assets are ready for their intended use. The estimated useful lives for main categories of property, plant and equipment and intangible assets are:

Category	Useful life(Years)
Factory Building	30
Plant & Machinery	8 -20
Electrical installation	10
Furniture and fixtures	10
Vehicles	8
Crane	20
Office equipment	5

Land and building held for use in the production or for administrative purposes are stated in the balance sheet at cost less accumulated depreciation and accumulated impairment losses. Freehold land is not depreciated.

Right-of-use assets (ROU) are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

Capital work in progress includes machinery to be installed, construction and erection materials and unallocated pre-operative expenditure consisting of costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The cost of replacing part of an item of property, plant and equipment or subsequent expenditure on Property, Plant and Equipment arising on account of capital improvement or other factors are accounted for as separate components. The costs of the day-to-day servicing of property, plant and equipment are recognized in the income statement when incurred. Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell.

Assets values up to Rs.5,000 are fully depreciated in the year of acquisition.

Depreciation methods, useful lives and residual values are reviewed, and adjusted as appropriate, at each reporting date.

v) Impairment

At each balance sheet date, the Company reviews the carrying value of its property, plant and equipment and intangible assets to determine whether there is any indication that the carrying value of those assets may not be recoverable through continuing use. If any such indication exists, the recoverable amount of the asset is reviewed in order to determine the extent of impairment loss, if any. Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-taxdiscount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. An impairment loss is recognized in the statement of profit and loss as and when the carrying value of an asset exceeds its recoverable amount.

Where an impairment loss subsequently reverses, the carrying value of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount so that the increased carrying value does not exceed the carrying value that would have been determined had no impairment loss been recognized or the asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognized in the statement of profit and loss immediately.

vi) De-recognition of Tangible and Intangible Assets

An item of PPE/Intangible Assets is de-recognized upon disposal or when no future economic benefits are expected to arise from its use or disposal. Gain or loss arising on the disposal or retirement of an item of PPE is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognized in the Statement of Profit and Loss.

vii) Impairment of Tangible and Intangible Assets

Tangible, Intangible assets and ROU Assets are reviewed at each balance sheet date for impairment. In case events and circumstances indicate any impairment, recoverable amount of assets is determined. An impairment loss is recognized in the statement of profit and loss, whenever the carrying amount of assets either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The recoverable amount is the higher of assets'' fair

value less cost to disposal and its value in use. In assessing value in use, the estimated future cash flows from the use of the assets are discounted to their present value at appropriate rate. Impairment losses recognized earlier may no longer exist or may have come down. Based on such assessment at each reporting period the impairment loss is reversed and recognized in the Statement of Profit and Loss. In such cases the carrying amount of the asset is increased to the lower of its recoverable amount and the carrying amount that have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years that reflects current market assessments of the time value of money and the risk specific to the asset.

viii) Non-current assets held for sale:

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use. This condition is regarded as met only when the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset and its sale is highly probable.Also, such assets are classified as held for sale only if the management expects to complete the sale within one year from the date of classification.Non-current assets classified as held for sale are measured at the lower of their carrying amount and the fair value less cost to sell, except for financial assets which are measured as per Ind AS 109 "Financial Instruments". Non-current assets are not depreciated or amortised

ix) Financial Assets and Liabilities

Financial assets and financial liabilities (financial instruments) are recognized when Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in the Statement of Profit and Loss.

The financial assets and financial liabilities are classified as current if they are expected to be realized or settled within operating cycle of the company or otherwise these are classified as noncurrent.

The classification of financial instruments whether to be measured at Amortized Cost, at Fair Value Through Profit and Loss (FVTPL) or at Fair Value Through Other Comprehensive Income (FVTOCI) depends on the objective and contractual terms to which they relate. Classification of financial instruments is determined on initial recognition.

a. Cash and cash equivalents

All highly liquid financial instruments, which are readily convertible into determinable amounts of cash and which are subject to an insignificant risk of change in value and are having original maturities of three months or less from the date of purchase, are considered as cash equivalents. Cash and cash equivalents includes balances with banks which are unrestricted for withdrawal and usage.

b. Financial Assets and Financial Liabilities measured at amortized cost

Financial Assets held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are measured at amortized cost. The above Financial Assets and Financial Liabilities subsequent to initial recognition are measured at amortized cost using Effective Interest Rate (EIR) method. The effective interest rate is the rate that discounts estimated future cash payments or receipts (including all fees, transaction costs and other premiums or discounts) through the expected life of the Financial Asset or Financial Liability to the gross carrying amount of the financial asset or to the amortised cost of financial liability

c. Financial Asset at Fair Value through Other Comprehensive Income (FVTOCI)

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Subsequent to initial recognition, they are measured at fair value and changes therein are recognized directly in other comprehensive income.

For the purpose of above para, principal is the fair value of the financial asset at initial recognition and interest consists of consideration for the time value of money and associated credit risk.

d. Financial Assets or Liabilities at Fair value through profit or loss

Financial Instruments which do not meet the criteria of amortized cost or fair value through other comprehensive income are classified as Fair Value through Profit or loss. These are recognized at fair value and changes therein are recognized in the statement of profit and loss.

e. Derivatives and Hedge Accounting

The company enters into derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in foreign exchange rates in respect of financial instruments and forecasted cash flows denominated in certain foreign currencies. The Company uses hedging instruments which provide principles on the use of such financial derivatives consistent with the risk management strategy of the Company. The hedge instruments are designated and documented as hedges and effectiveness of hedge instruments is assessed and measured at inception and on an ongoing basis to reduce the risk associated with the exposure being hedged.

Any derivative that is either not designated as a hedge, or is so designated but is ineffective as per Ind AS 109 “Financial Instruments”, is categorized as a financial asset/liability, at fair value through profit or loss. Transaction costs attributable to the same are also recognized in statement of profit and loss.

Changes in the fair value of the derivative hedging instrument designated as a fair value hedge are recognized in the statement of profit and loss. Changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are recognized in other

comprehensive income and presented within equity as cash flow hedging reserve to the extent that the hedge is effective.

Hedging instrument which no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, then hedge accounting is discontinued prospectively. Any gain or loss recognised in other comprehensive income and accumulated in equity remains therein till that time and thereafter to the extent hedge accounting being discontinued is recognised in Statement of Profit and Loss. When a forecasted transaction is no longer expected to occur, the cumulative gain or loss accumulated in equity is transferred to the statement of profit and loss

f. Impairment of financial assets

A financial asset is assessed for impairment at each reporting date. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. The company measures the loss allowance for financial assets at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. In case of trade receivables or contract assets that result in relation to revenue from contracts with customers, the company measures the loss allowance at an amount equal to lifetime expected credit losses.

g. De-recognition of financial instruments

The Company derecognizes a financial asset or a group of financial assets when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On de-recognition of a financial asset, the difference between the asset''s carrying amounts and the sum of the consideration received and receivable are recognized in statement of profit and loss.

On de-recognition of assets measured at FVTOCI the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to statement of profit and loss as a reclassification adjustment.

Financial liabilities are derecognized if the Company''s obligations specified in the contract expire or are discharged or cancelled. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in statement of profit and loss.

h. Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

x) Cash and cash equivalents

All highly liquid financial instruments, which are readily convertible into determinable amounts of cash and which are subject to an insignificant risk of change in value and are having original maturities of three months or less from the date of purchase, are considered as cash equivalents. Cash and cash equivalents includes balances with banks which are unrestricted for withdrawal and usage.

xi) Inventories

i. Inventories are valued at lower of the cost or net realizable value. Cost of inventories is ascertained on ''weighted average'' basis. Materials and her supplies held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

ii. Cost in respect of raw materials and stores and spares includes expenses incidental to procurement of the same. Cost of finished goods and those under progress represents raw material cost plus costs of conversion, comprising labour costs and an attributable proportion of manufacturing overheads based on normal levels of activity.

iii. Cost in respect of work in progress represents cost incurred up to the stage of completion.

iv. By-Products are valued at net realizable value

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

xii) Foreign Currency Transactions

Transactions in foreign currencies are translated into the functional currency at the exchange rates prevailing on the date of the transactions. Foreign currency monetary assets and liabilities at the year-end are translated at the year-end exchange rates. 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 transaction. The loss or gain thereon and also on the exchange differences on settlement of the foreign currency transactions during the year are recognized as income or expense in the profit and loss account. Foreign exchange gain/loss to the extent considered as an adjustment to Interest Cost are considered as part of borrowing cost.

xiii) Equity Share Capital

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its liabilities. Par value of the equity shares is recorded as share capital and the amount received in excess of par value is classified as Securities Premium. Costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity, net of any tax effects

xiv) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or constructive obligation as a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are not recognized for future operating losses. The amount recognized

as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Contingent liabilities is not recognized and are disclosed by way of notes to the financial statements when there is a possible obligation arising 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 or when there is a present obligation is not recognised where it is either not probable that an outflow of resources will be required to settle the same or a reliable estimate of the amount payable in this respect cannot be made.

Contingent Assets are not recognised but disclosed in the financial statements by way of notes to accounts when an inflow of economic benefits is probable.

xv) Employee Benefits

Employee benefits are accrued in the year in which services are rendered by the employees. Short term employee benefits are recognized as an expense in the statement of profit and loss for the year in which the related service is rendered. Contribution to defined contribution plans such as Provident Fund etc., is being made in accordance with statute and are recognised as and when incurred. Contribution to defined benefit plans consisting of contribution to gratuity are determined at close of the year at present value of the amount payable using actuarial valuation techniques. Actuarial gain and losses arising from experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income. Other long term employee benefits consisting of Leave Encashment are determined at close of the year at present value of the amount payable using actuarial valuation techniques. The changes in the amount payable including actuarial gain/loss are recognised in the Statement of profit and loss.

xvi) Revenue Recognition

The Company manufactures and sells Iron and Steel Products.

Sale of goods

The Company recognises revenue when control over the promised goods or services is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has generally concluded that it is the principal in its revenue arrangements as it typically controls the goods or services before transferring them to the customer.

Revenue is adjusted for variable consideration such as discounts, rebates, refunds, credits, price concessions, incentives, or other similar items in a contract when they are highly probable to be provided. The amount of revenue excludes any amount collected on behalf of third parties. The Company recognises revenue generally at the point in time when the products are delivered to customer or when it is delivered to a carrier for export sale, which is when the control over product is transferred to the customer. In contracts where freight is arranged by the Company and recovered from the customers, the same is treated as a separate performance obligation and revenue is recognised when such freight services are rendered In revenue arrangements with multiple performance obligations, the Company

accounts for individual products and services separately if they are distinct - i.e. if a product or service is separately identifiable from other items in the arrangement and if a customer can benefit from it. The consideration is allocated between separate products and services in the arrangement based on their stand-alone selling prices. Revenue from sale of by products are included in revenue. Revenue from sale of power is recognised when delivered and measured based on the bilateral contractual arrangements.

Contract balances

i) Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration.

ii) Trade receivables

A receivable is recognised when the goods are delivered and to the extent that it has an unconditional contractual right to receive cash or other financial assets (i.e., only the passage of time is required before payment of the consideration is due). Trade receivables is derecognised when the Company transfers substantially all the risks and rewards of ownership of the asset to another party including discounting of bills on a non-recourse basis.

iii) Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract including Advance received from Customer.

iv) Refund liabilities

A refund liability is the obligation to refund some or all of the consideration received (or receivable) from the customer and is measured at the amount the Company ultimately expects it will have to return to the customer including volume rebates and discounts. The Company updates its estimates of refund liabilities at the end of each reporting period.

Interest, Dividend and Claims

Dividend income from investments is recognized when the shareholder''s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably). Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial

recognition. Insurance claims/ other claims are accounted as and when admitted / settled.

xvii) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for the intended use or sale.

Investment income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets is recognized in the statement of profit and loss.

Discounts or premiums and expenses on the issue of debt securities are amortized over the term of the related securities and included within borrowing costs. Premiums payable on early redemptions of debt securities, in lieu of future finance costs, are recognized as borrowing costs.

All other borrowing costs are recognized as expenses in the period in which it is incurred.

xviii) Taxes on Income

Income tax expense representing the sum of current tax expenses and the net charge of the deferred taxes is recognized in the income statement except to the extent that it relates to items recognized directly in equity or other comprehensive income.

Current income tax is provided on the taxable income and recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences with respect to carry forward of unused tax credits and any unused tax losses/depreciation to the extent that it is probable that taxable profits will be available against which these can be utilized.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets include Minimum Alternative Tax (MAT) measured in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability and such benefits can be measured reliably and it is probable that the future economic benefit associated with asset will be realized.

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

xix) Earnings per share

Basic earnings per share is computed by dividing profit or loss for the year attributable to equity holders by the weighted average number of shares outstanding during the year. Partly paid-up shares are included as fully paid equivalents according to the fraction paid up.

Diluted earnings per share are computed using the weighted average number of shares and dilutive potential shares except where the result would be anti-dilutive.

xx) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The Board of directors of the Company has been identified as the Chief Operating Decision Maker which reviews and assesses the financial performance and makes the strategic decisions.

4. Recent Accounting Pronouncements

New Accounting standards, amendments and interpretations adopted by the Company (wherever applicable) effective from April 1,2023:

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1,2023, as below:

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their material accounting policy information. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if any, in its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty''''. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 32 - Interim Financial Reporting

The amendments require companies to disclose their material accounting policies information rather than their material accounting policy information. The Company does not expect this amendment to have any significant impact in its financial statements.

These amendments are applicable from April 1, 2023. As per management these amendments are likely to have no significant impact on the financial statements of the Company.

5. Critical Accounting Estimates, Judgments and Assumptions

The preparation of the financial statements in conformity with measurement principle of Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized and, if material, their effects are disclosed in the notes to the financial statements.

Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of assumptions in the financial statements have been disclosed below. The key assumptions concerning the future and other key sources of estimation/assumptions at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities and related revenue impact within the next financial year are discussed below:

a) Depreciation/amortization and impairment loss against property, plant and equipment / intangible assets.

Property, plant and equipment, ROU Assets and Intangible Assets are depreciated/ amortized on straight-line basis over the estimated useful lives (or lease term if shorter) taking into account the estimated residual value, wherever applicable. The company reviews its carrying value of its Tangible and Intangible Assets whenever there is objective evidence that the assets are impaired. The required level of impairment losses to be made is estimated by reference to the estimated value in use or recoverable amount. In such situation Assets'' recoverable amount is estimated which is higher of asset''s or cash generating units (CGU) fair value less cost of disposal and its value in use. In assessing value in use the estimated future cash flows are discounted using pre-tax discount rate which reflect the current assessment of time value of money. In determining fair value less cost of disposal, recent market realisations are considered or otherwise in absence of such transactions appropriate valuations are adopted. The Company reviews the estimated useful lives and residual life of the assets regularly in order to determine the amount of depreciation / amortization and also amount of impairment expense to be recorded and/or to be reversed during any reporting period. Subsequent reassessment or review may result in change of estimates in future periods.

b) Arrangement contain leases and classification of leases

Ind AS 116 requires lessees to determine the lease term as the non- cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any option to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to the company''s operations taking into account among other things, the location of the underlying asset and the availability of suitable alternatives. The lease terms and impact thereof are reassessed in each year to ensure that the lease term reflects the current economic circumstances.

c) Impairment loss on trade receivables

The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of impairment loss as a result of the inability of the debtors to make required payments. The Company bases the estimates on the ageing of the trade receivables balance, credit-worthiness of the trade receivables and historical write-off experience.

d) Defined Benefit Obligations (DBO)

Critical estimate of the DBO involves a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate, anticipation of future salary increases etc. as estimated by Independent Actuary appointed for this purpose. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

e) Provisions and Contingencies

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change.

Management uses in-house and external legal professional to make judgment for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations/ against the Company as it is not possible to predict the outcome of pending matters with accuracy. The carrying amounts of provisions and liabilities and estimation for contingencies are reviewed regularly and revised to taking into account changing facts and circumstances.

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Mar 31, 2023

3, Significant Accounting Reticle*

rhc principal acmunbng pouc&s applied in the preparation ot Uie financial suite metis are set out betaw. These policies have been consistently applied 1o alEthe yeaTS presented, unless otherwise stated.

i) Property, Plant and Equipment (PPE)

Recognition ami measurement: Property, plant and equipment Including bearer assets are curriod at historical cost or acquisition or deemed cost less accumulated depreciation end accumulated impairment tags, if any, Historical cost includes its pgi''tfiSW proa, indurffng Import dulses and nonroiundablo purchase tanas after deducting bads discounts and mbates end any cost directly attribuiable to bringing; the asset 10 the location ai id cariddion necessa ry for n IP bfl c^pfibla ol operating in the manner intended by management. Si;bssqu»nt expenditure related to an asset is added to its booK value only wh en It is probable tea: iutone Bddnarriic benefits associated with the item wilf Flew to the Company andthe Cost of the item can be measured reliably. The carrying amount of Ibe replaced part is derecognized Aw repairs and maintenance an charged lolha Statement oi Profit and Loss during tee llnanclal year in which 1hesa are incurred.

The company''s lease Land has been separately shown under PPE es flight oF Use (ROU> Assets, Capital Work-in-progress .ncludes developmental expenses, equipment to he installed, construction and erection material* etc, Such costs are added to related PPE and are classified to the appropriate categories when completed and readyfar intended U5fl.

II) intangible assots

Pa1en1s, trademarks and sattwa^ri= coats are included in the balance sheet as intangible assets when it is probable trial associated lulura economic benefits woud Flew tc the Company. In 1his case they are measured in liai''y a1 purchase cost and then amortized cn a straight-line basis over thair estimated usalul lives. All cthar ccsls On patents, trademarks arid So Aware are Expe nsed in the slate riant or profit and loss as and when incurred. Expenditure cn research activities rs rBoognijed an an expanse in the period in which it is incurred, Coats incurred on individual devstopmant pmjaQtb are recognised a* intengiljls assets 1ram the date when all of the following conditions are met:

a. Completion of thedowolopmontistochnicailyloasibio

b. It is the intantion to complete tfteinlangibta aseeldrtd use dr sell it.

c. Ability lous&orasll (ha intangible asset.

d. ttis deaMhattheintanc^:ble asset w || generate probable tutu re scanamic benefit.

e. Adequate tech nlcal. financial and other resources to complete the development ard to use or soil the intangible assff! are available.

f. It is passible to reliably measure the axpanditi, re attributable [? the intangible asset during lls development,

Recognition el costs as an aeseiisnoed wh&n the pnojaelis complete and available lor its intended use, orif these criteria are na longer applicable.

Where development acfrvit''es do r>ot meal the conditions Tor recognition as an asset, any associated expenditure is treated as an expense intfte perron m which iiis incurred.

Subsequent to nhial neongnitiara, inbhfliWe h-mmSs with definite usetul lives sre repar|ed at cost or deemed cost applied on iransrtion to Intf AS, less accumulated amortization and accumulated impairment losses.

Cwt of computer gaftware packages inducting directly attributable cost, it any, acquired fgr internal use, is allocated / amortized over a period ol 3 years (being estimated uselul site Ihereof) an Straight fine method.

lil) Leases

The Company''s lease assel classes primarily consist of Lease hold land. The Company uuou whedn&r a cuntraoi conlains a lease, at inception of a contract. A contract is, or contains, A lease |f Iha contract conveys th e right Ed control the ube Of an identified asset tpr a period of time in exchange fgr consideration. Tg whether a contract conveys the right

to control the uee of an identified asset, the Company pesewee whether |ii the contrast invokes the used an Identified asset (ii}the Company has substantially all d the economic benefits tram use of the asset through the period of the lease and (lit) Ihe Company has Ihe right lo direct the use of the asset.

At the date or commencement of the lease, the Company recognizes a richl-of-csp asset fHOUⁿ)Snd apanesponding lease liability for all lease arrangements, except for laaseewlth p term of twelve months or less (shomerm leases) and low value leases. For these Shgrf-lenn and fawr value leawa_h (he Company recognizes the lease payments as an ope rating expense on a straight-line basis over the term of the lease

Certain lease arrangements includes Ihe options to extend or terminate file lease before ihe end oF the leasa lerm. F.CL assets and lease liabilities include these options considered lor arriving p( RQU and lease lisbi !ity wnen it is reasonably certai n tha- they will be exercised.

Tho loaw liablEtyts Initially measured at amortized cost at iho present value of the Future lease payments, The lease payments are discounted using the Interest rato Implicit in Ihe lease or it not readily detctmlnabie, using the incremental botrowhg rates of these leases. ¦-Case labililies are remeasured with A COrrespdndmg adj ustm&rit \t> the related right of use asset il the Company Changes its assessment, Whether 1L Will axercisEi an oxter sion or a lermi nation apliort.

The dght-of-use assals ere initially recognized at cost, which comprises the initial amount of Ihe lease liability adjusted tor any lease payments reads at or pnor to (hi commencement

uate of the lease plus arty Initial di radcosts lass any lease Irieenth/as. 1 hey are subsequently measured a1 costless accLanulated depreciation and impairmBJit lasses.

The company has tflkfm land on long term leas® ¦ There are no commitment towards mon|hlyf yearly lease payments accordingly lease liability and Its corresponding disclosures docs not a nee.

Rignt-cf-uae assets ate depreciated from the commencement date on a straight-line basis over the shorter of the lease term arid useful hfe of the underlying asset, fligntef use assets are evaluated ter recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable For the purpose o4 impairment tesling, the recoverable amount(i.e. the higher ot the ''n i value Ini w*t le sell and the valued-use} is determined on an individual asset basis unless the as-wt does net generate cash flows that are largely independent of those from olhor assets. In such cases, the recoverable amount Is determined tor the Cash Generali r:g Ltn.1 (GGU f to which the asset belongs.

i:v} Depreciation end amortization of property, pjnm a nd equipment end Intangible esserrt

Depreciation or amortization is provided so as to write oh. on a straight’lino Oasis, the cost/deemed costal property, plant and equipment and intangible assets, including these held under Finance leases 10 lhatr residual value. These changes are commenced from the dates the assets ana available tor their intended use and are spread over their estimated U^etet economic I ives Dr. in the case of leased assets, over ''h= laaaE period, i1 shorter. The aslimaied usslul lives of assats, residual values and depreciation metnod are reviewed regularly and. whan necessary, revised.

Depreciation OP assets under construction commences only whan the assets are ready Ipr their Intended uso The estimated useful lives For mam categories of property, ptant and ml nmSrtLand nlanoibls assets JUS:

Land and building held Far use in |he preduflign or ter adirinisl relive purposes are stated m the balance sheet at cost less accumulated depreciation and accumulated impairment losses. Fnofihofd land Is not depreciated

Righr-or-use assets (ROU1 are depreciated tram die commencement date on a slraight-lrne basis over tho snorter of the lease lerm anduseluMIta of the underlying asset

Capital work in pregress includes machinery to be inatalfad, construction and erection materials and unallocated pre^eperatve expenditure curlslstlng bi costs directly attributable to bringing the asset to the location and condition necessary tv it to be capable of operating In the manner intended by management-

me tost ai repEacing part ol an i!um i>1 prcparty plant and equipment or subsequent expenditure on Proparty Plant and Equipment artsing on account of capital Improvement or other factors are accounted for as separate components. The costs of the day-to-day servicing. of property, plant sod equipment are recognized m the income statement when muungd. Assets to be disposed ol are reported ai the lower of Hie carrying value or 1he 1air value lass cost to sell.

As sets val uos up to arc fully depreciated in tea year of acq ulsillon.

Deprecation methods, usaful lives and residual values ara reviewed. and adjusted as appropriate, at each reporting date

v) Impairment

At each bel encp sheet date, the Company reviews the carrying vs :ue of rig property pient pod equipment end intangible assete to determine whether there is any indication that the carrying value el those assets may riot be reccvorebna through continuing use. If any such Indication exists, the recoverable amount of tho asset is roviowod In order to determine tee extent of impairment lope, Ef any. Where the PStef does not generate cesh flows that ere independent from other essets, the Campary estimates [he recoverable amount oi the cash gene rati ng unit to which the asset belongs.

Recoverable smpuht is the higher or fair value teas cpste to soli and value In use. In assessing value in use, fhe eeliniatecHuiureeash hows are discounted to their present value using a pretan discount rate that reflects current markal assessments ef the time value of money and Ihe nsKs specific to lhe asset lor which the estimates of fliture cash flows have not been adjusted, An impBi^rmanl kss is recognised. in the statement Of profit and low as and when thacnnying value of an asset exceeds its recoverable amount.

Where gn impairment lo^s subsequent reverses, the carrying value of tee asset [or cash generating unitj increased to the revised estimate of its recoverable amount so teat the increased carrying value does not exceed toe carrying value teat would have been determined had no impajimcm loss boon roccgnizod or the assel (or cash generating unit) (n prior years A reversal of an impairment iggs is recognized In the statement of profit and toss immediately.

Vt) Oc^ccCg nitidb of Tbng lb Ic and Enlflbgtble Assets

An hem o\ PPE^nlangible Assets is de-recognized upon dispose! or when no tulure economic benefits are expected to arise from ils use or disposal. Gain at loss arising on the disposal or retirement of an Item of PPE Is determined os the difference between the sale proceeds and the canyirtg amount of the asset and fa recognized in the Statement of Profit and Loss. vEfj tmpu innun I of Tangible and Intangible ASsuts

Tangible, Intsncidla assets and TIOU Assets are reviewed a1 each balance sheet date far impairment. In case events and ciicumslajibes indicate any impairment, recoverable amcunl of a&sets is determined. An impairment lass is recognized m the statement of profit and loss. Whenever the carrying amount of assets either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount The recoverable amount is tee higher of assets'' fair value teas -cu&l to disposal and its value in use. !n assessing value In use, 1hp estimated Future cash flows from the use

impairment losses recognized eerier may no longer exist a may have comedown. Eased on such assessment at each reporting period the Impairment loss is reversed and rooognrzed In the Statement o( Profit and Loss. In such cases the cn rryjng amount of the asset is increa sad to 1 he lower d its recoverable amau nr and the carrying amaunl lhat have bean detanrvned, net ol depredation. had no ir-puirnenl lose bean recognized tc^r the as-sat in prior years [hat reflects current market assessments el the time value of money and the risk specific to the asset.

vlll) FINANCIAL ASSETS AND LI ABILITIES

Financial assets 3 nd financial liabilities (financial instruments) ene recognized when Company hengmES & party [? theoantreOHjal provisions olthe instrument.

Financial assets and financial liaoilitlas arc Initially measured at fair value. Transaction costs that are directiy attributable to the acquishion or issue el financial asset? and financial liabilities (other than financial ,= ssfIs and Elnanplal liabilities a1 lairvaknE through profit or loss-) ere added to or deducted from I ha fair value of the Unsocial assets or llnand&l liabilities, as appmpnato, on indml recogrhtlop. Transaction costs directly allrturtabio to tfio acquisition ol financial assets cr financial liabilities at fair vatue through profil w toss arc recognized immedistely in (he Slatemeni r>f ProfftandljM.

The rlnaneiai assets and financier Nubilities are classified as currant If they are expected to bo realized or sotllod within operating cydo of Iho company or mho wise those are classed as noncument

The classlflcalion of financial instrument whether to ba measured at Amortized Cost, at Fair Value Through Profit and Loss (FVTPL)- or at Fair Value Through Other Comprehensive Income (FVTOCI) depends on the objective end rantracftrel terms (o which they relate. Classification oFtlnanoia.1 instruments ia determined on initial recognition.

a. Cash and cash equivalent

Al I high ly liquid financial instrument., wh $h are read! fy convertible into determinable amounts cf cas h and which a re subject to an Insignificant risk of charge In val ue and a re having an glnal maturities ol three months or lass I rum lha dale or purchase, are considered as cash equivalents. Cash and cash equivalents includes balances witn tanks which are unrestricted for wrthd ra wal and usage.

b. Financial Assetsunc Financial Liabilities measured ait amortized cast

Financial Assets held within a business whose Objective is to hold 1heso assets m order 1o celled cortrectufll cash flow? and the comractual terms of the financial asset give hse on specified Oates to cash flews lhat are solely payments ol principal and interest on the principal amaunl Outatanding are measured at amortized cPst. Ths above Financial Assets and Financial Liabllrtres subsequent to initial recognition ate measured at amortized cost using Effective Interest Rale (Elfl} method, The effective interest rate is the rate that discounts estimated future cash payments or receipts (including all fees, transection costs and other premiums or discounts) through thd Bxpaded IHeorthe Financial Asset or FinancialLiabiiity 1o ho gross carrying smeu nl of ihe financial asset or to the amortised cast ol l nancial liability.

c. FI naAChl Asset at Fair Val Ub through Ol her Comprehensive Income (FVTDCt)

Financial assets are measured at fair value through other comprehensive income il lhese financial Blasts are held with n a business whose objective ip achieved by both collecting contractual cash ElowB and sailing financial assets and the contractual terms of the financial usacL yivt rise on specified dates to cash flows that a re soldy payments of principal and ''Merest on tAe principal amouM outstanding Subsequent to mmol rceogn''ton, they are measured at fair value- and changes therein are recognised directly in other comprehensive inogma.

For ihc purpose ol para [i) and {ill) above, principal is fhc far value of the financial asset at initial recognition and interest consists ct consideration for the time value ol money and associated credit rick.

d. Financial Assets or Liabilities at Fair value through profit or lass

Financial Instruments which do not mast the criteria ?! amortized cost or Tair vti uc through other comprehorisivs income are classified as Fair Value through Profit or loss, Those arc recognized at f a lr vai ue and changes therein are recognized in the stalemenlot profit and loss.

a. Derivatives and Hedge Accounting

The company enters into derivative financial instruments such as rcraign exchange toward contracts fa miligarie the risk of changes in 1cm ign exchange rates in respect of financial instruments end Iwscastsd cash Hows denominated in certain foreign currencies. The Company uses hedging instruments which provide principles on the use of such financial derivatives consistent with the risk management strategy of the Company. Trio hedge instruments are designated end documented as hedges and effectiveness at hedge inslTurnenls is assessed and mease red at i ncOplion and on an ongei ng basis to reduce the risk associated wriJi the expose re being hedged.

Any derivative that ie either not designated as e hedge* or ts so designated but is ineffective as per I nd AS 103 "Financia Instruments, is categorized as a financia^: asset,''! iabilrty, at lair vafue tnruLgh prom or less. Transaction casts attributable to the same are also recognized in statement of profit and loss

Changes in tha feir value pf the derivative hedging inslrumehl designated as a fair value hedge ard recognized in the statement Of profit Hnd loss. Changes in the lair value ol the derivative hedging instrument designates as a cash flow hedge are recognised in othev comprehensive income and presented wtlHn equity as cash Flew hedging reserve to the extent thai the hedge is eff active.

Hedging instrument which no longer meats the crllerla ror hedge accounting, expires or Is sold terminated or exorcised, then hedge accounting is discontinued prospectively Any gain or logs reengn isad in other comprehensive income end accumulated in equity remains therein till that time and [hereafter to Che extanl hedge accounting being discontinued Is recognised in Slatenwit ol Prol''rf and Loss. When a forecasted transaction is no longer expected to occur, the cumulative gain or loss accumulated m equity is transferred to the statement ol profit and loss.

f. Impairment of financial assets

A financiel asset ie assessed Fw impairment al each reporting dale. A financial aeget is

co.isie yroci to bo impai red if objedlve ftvicfenoe indicates that one or mors ™i:s l iave had a negative effect on ihe estimated future cash Hows of lhai asset. The company measures the loss allowance for financial assets at an amount equal to the litehme expected credit losses if the credit risk an that [inancial inslnjmenl has increased significantly since- initial recognition. If the credit risk on d financial insfftJmenS has na1 increased signiFicantly since initial recognition, the company measures the toss allowance tor that financial instrument at an amount equal to i2-rnonth expected cnedrt losses, in case of trade receivables wcontract assets thal result In relation tg revenue from contracts with customers, the company measures the loss allowance at an amount equal 1a lifetime expected credit lasers.

g. Db-recognition of financial instruments

Hio Company dsrecogniaes a financial asset or a group or flnsnctaJ assets wt>en the contractual rights to tho cash Hows tram the asset expire, or when It translors tho financial asset and substantially all the risks and rewards of ownership of the asset to anothe r pa rty,

Chh dd-recognition 01 a tiriancial Fiscal. 1he difference between the asset''s currying amounts and the su m of tho consideration r&col vod and receivable aro tocog nlzod in statement of profit and loss.

On de-recognition of assels measured at FVEOCI tlte cumulative gain or loss p^rr?v ously recognised In other comprehensive Income Is recraseiticd 1»om equity to statement of profit and loss as e reels s&rflcfljion adjustment.

Financial liabilities art: derecognized ii the Company''s chi -gations specified in the conlract expire or are discharged or cancelled. The dMfererfcft between the carrying amount of the fvianooi liability derecognized and the consideration paid and payable Is recognized In stetsmgnit of profit and fuse-

h. On setting f i n anti at I n s1 ru mer?!s

Financial aE&ete and liabilities are offw] and the net amount is reported in the balance sheet where there is a legally enforceable right to onset the recognised amounts and there .& an intention to settle oa a net baas or realise the asset and settle the liability smnulLahflousty^ The legally enforceable rgnt must nol be contingent on future events and must t>e enforceable in the normal course cf business and in Iha event of deroull, insolvency Dr bankruptcy of the Company Dr the counterparty.

ix} Cash and cash equivalents

All highly liquid financial instruments* which are readily convertible into determinable amounts of cash and which are subject to an Insignificant risk of change In vol uc and aro Having anginal maturities of three months or less from the dale of purchase, are considered as cash equivalents. Cash end cash equ ivelents includes balances with ba nkg which ere unrestricted fur withdrawal and usage.

X) INV£NT0R1F5

l. Inventories are valued at lower of the cost or nor realizable value. Cost ul Inventories is asesrtainsd on ''weighted average¹ basis. Materials and her supplies hetd for use in the production ct invantorias are nol written dqwn below ccs-i ilthe finished products in which [hay wil I be incorporated are expected to be acid at or above cost.

ii. Cost in re&pecl of raw materials and atones and spare* Includes expenses incidental to procurement of the same. Cost ol finished goods end those under progress represents raw mstpriaJ cost plus costs of conversion. comprising labour costs and an attributable proportion of manuFacEuring overheads bHsad on normal Eevets aF activity.

III. Cost Ht respod of work ^ progress rop^osonis cost Incused up to the stago ol completion.

iv. Sy-Fratfucts ana valued at net realizable val jg.

v. Net rem izatolo vaiue is the estimated selting price in the ordinary course of business less (Fie »li mated costs of completion and (Fie estimaCed coaO necessary fa malte the sale.

xi) FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are translated into the functional currency a] lh* exchange rates prevailing en Iha date of the transactions. Foreign currency monetary assets and liabilities at tho yoar-ond are translated at the yoar-end exchange rates, tton-monotury Items which are carried In terms o! historical cost denominated in a foreign currency are rajjorted using [he exchange rate Ptthe date or IraneaCtlqn. The lass Or gain [hereon and alSp On the exchange dries ranees on settlement of the lore g i currency transactions during the year are recognised as income or expense In the pnoht and loss account. Foreign exchange gamiloss to the extent considered as an adjustment to Interest Cost are considered as part of borrowing coat.

llj EQUITY SHARE CAPITAL

An equity instrument is a centra csttist evidences residual interest in the assets el the company attar deducting ail al It liabilities. Par value of the equity Shares is recorded aa share Capital and the amount receded in excess ol par value is classified as Socurrtss Premium. Costs dl redly attribulable to the issue of ordinary scares arc recognized as a deduction from equity, net of any tax effects.

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Mar 31, 2018

1a) Significant Accounting Policies:

1a. i. Basis of Preparation

The Financial Statements have been prepared under the historical cost convention on the accrual basis except for certain financial instruments that are measured at fair values/ amortized costs at the end of each reporting period, as explained in the accounting policies provided herein after.

Historical cost convention is generally based on the fair value of the consideration given in exchange for goods and services.

As the operating cycle cannot be identified in normal course due to the special nature of industry, the same has been assumed to have duration of 12 months. Accordingly, all assets and liabilities have been classified as current or non-current as per the Company’s operating cycle and other criteria set out in Ind AS-1 ‘Presentation of Financial Statements’ and Schedule III to the Companies Act, 2013.

The Financial Statements are presented in Indian Rupees.

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions.

The Company categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed in their measurement which are described as follows:

a. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

b. Level 2 inputs are inputs that are observable, either directly or indirectly, other than quoted prices included within level 1 for the asset or liability.

c. Level 3 inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or Company’s assumptions about pricing by market participants.

1a. ii. Property, Plant and Equipment

Land and building held for use in the production or for administrative purposes are stated in the balance sheet at cost less accumulated depreciation and accumulated impairment losses. Freehold land is not depreciated.

Property, plant and equipment are stated at cost of acquisition or deemed cost on the date of transition or construction and subsequent improvements thereto less accumulated depreciation and impairment losses, if any. Cost of acquisition includes inward freight, duties and taxes (net of Cenvat / VAT/input GST availed), dismantling cost and installation expenses incurred up to the installation of the assets. All costs, including borrowing costs incurred up to the date the asset is ready for its intended use, is capitalized along with respective asset.

Capital work in progress includes machinery to be installed, construction and erection materials and unallocated pre-operative expenditure consisting of costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

The cost of replacing part of an item of property, plant and equipment or subsequent expenditure on Property, Plant and Equipment arising on account of capital improvement or other factors are accounted for as separate components. The costs of the day-to-day servicing of property, plant and equipment are recognized in the income statement when incurred. Assets to be disposed off are reported at the lower of the carrying value or the fair value less cost to sell.

For transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognized as of 1st April, 2016 (transition date) measured as per the previous GAAP and use that carryingvalue as its deemed cost as of the transition date.

Depreciation of these PPE commences when the assets are ready for their intended use. It is recognized based on the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives. Depreciation is calculated using the Straight line method on cost of items of property, plant and equipment less their estimated residual values over the estimated useful lives prescribed under Schedule II of the Act. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. Certain Plant and Machinery have been considered

Continuous Process Plant on the basis of technical assessment. Based on above, the estimated useful lives of assets for the current period are as follows:

Leasehold land held under finance lease is depreciated over their expected lease terms. No depreciation is charged on Freehold land. Assets costing rupees five thousand or less are being depreciated fully in the year of addition/acquisition. Depreciation methods, useful lives and residual values are reviewed and adjusted as appropriate at reporting date.

1a. iii. Intangible Assets

Intangible assets are stated at cost of acquisition comprising of purchase price inclusive of import duties, if any, and other taxes less accumulated amortization and impairment losses. Depreciable amount of such assets, are allocated on systematic basis on the best estimates on Straight line method.

Cost of computer software packages including directly attributable cost, if any, acquired for internal use, is allocated / amortized over a period of 3 years (being estimated useful life thereof) on Straight line method.

1a. iv. De-recognition of Tangible and Intangible Assets:

An item of PPE is de-recognized upon disposal or when no future economic benefits are expected to arise from its use or disposal. Gain or loss arising on the disposal or retirement of an item of PPE is determined as the difference between the sale proceeds and the carrying amount of the assets is recognized in the Statement of Profit or Loss.

1a. v. Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards incidental to the ownership of an asset to the Company. All other leases are classified as operating leases.

Finance leases are capitalized at the inception of the lease at lower of its fair value and the present value of the minimum lease payments and a liability is recognized for an equivalent amount. Any initial direct cost of the lease is added to the amount recognized as an asset. Each Lease payment is apportioned between finance charge and reduction of the lease liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the outstanding amount of the liabilities.

Payments made under operating leases are recognized as expenses on a straight-line basis over the term of the lease or another systematic basis which is more representative of the time pattern of the benefits availed unless the lease arrangement are structured to increase in line with expected general inflation. Contingent rentals, if any, arising under operating leases are recognized as an expense in the period in which they are incurred.

1a. vi. Impairment of Tangible and Intangible Assets

Tangible and Intangible assets are reviewed at each balance sheet date for impairment. In case events and circumstances indicate any impairment, recoverable amount of assets is determined. An impairment loss is recognized in the statement of profit and loss, whenever the carrying amount of assets either belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The recoverable amount is the greater of assets’ fair value less cost to sell or its value in use. In assessing value in use, the estimated future cash flows from the use of the assets are discounted to their present value at appropriate rate.

Impairment losses recognized earlier may no longer exist or may have come down. Based on such assessment at each reporting period the impairment loss is reversed and recognized in the Statement of Profit and Loss. In such cases the carrying amount of theasset is increased to the lower of its recoverable amount and the carrying amount that havebeen determined, net of depreciation, had no impairment loss been recognized for the assets in prior years.

1a. vii. Financial Assets and Liabilities

Financial assets and financial liabilities are recognized when Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in the Statement of Profit and Loss.

The financial assets and financial liabilities are classified as current if they are expected to be realized or settled within operating cycle of the company. If not, they are classified as noncurrent financial instruments.

The classification of financial instruments depends on the purpose for which those were acquired. Management determines the classification of its financial instruments at initial recognition.

a) Cash and Cash Equivalents :

All highly liquid financial instruments, which are readily convertible into determinable amounts of cash and which are subject to an insignificant risk of change in value and are having original maturities of three months or less from the date of purchase, are considered as cash equivalents. Cash and cash equivalents includes balances with banks which are unrestricted for withdrawal and usage.

b) Financial Assets and Financial Liabilities measured at amortised cost :

Financial Assets held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are measured at amortized cost.

The above Financial Assets and Financial Liabilities subsequent to initial recognition are measured at amortized cost using Effective Interest Rate (EIR) method.

The effective interest rate is the rate that discounts estimated future cash payments or receipts (including all fees and points paid or received, transaction costs and other premiums or discounts) through the expected life of the Financial Asset or Financial Liability to the gross carrying amount of the financial asset or to the amortised cost of financial liability, or, where appropriate, a shorter period,to the net carrying amount on initial recognition.

c) Financial Asset at Fair Value through Other Comprehensive Income (FVTOCI)

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Subsequent to initial recognition, they are measured at fair value and changes therein are recognised directly in othercomprehensive income.

d) For the purpose of Para (ii) and (iii) above, principal is the fair value of the financial asset at initial recognition and interest consists of consideration for the time value of money and associated credit risk.

e) Financial Assets or Liabilities at Fair value through profit or loss.

Financial Instruments which does not meet the criteria of amortised cost or fair value through other comprehensive income are classified as Fair Value through Profit or loss. These are recognised at fair value and changes therein are recognized in the statement of profit and loss.

f) Derivative and Hedge Accounting

The company enters into derivative financial instruments such as foreign exchange forward, swap and option contracts to mitigate the risk of changes in foreign exchange rates in respect of financial instruments and forecasted cash flows denominated in certain foreign currencies. The Company uses hedging instruments which provide principles on the use of such financial derivatives consistent with the risk management strategy of the Company. The hedge instruments are designated and documented as hedges and effectiveness of hedge instruments to reduce the risk associated with the exposure being hedged is assessed and measured at inception and on an ongoing basis.

Any derivative that is either not designated as a hedge, or is so designated but is ineffective as per Ind AS 109 “Financial Instruments”, is categorized as a financial asset, at fair value through profit or loss. Transaction costs attributable are also recognized in Statement of profit and loss. Changes in the fair value of the derivative hedging instrument designated as a fair value hedge are recognized in the Statement of profit and loss.

Changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are recognized in other comprehensive income and presented within equity as cash flow hedging reserve to the extent that the hedge is effective.

If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, then hedge accounting is discontinued prospectively. Any gain or loss recognised in other comprehensive income and accumulated in equity till that time remains and thereafter to the extent hedge accounting being discontinued is recognised in Statement of profit and loss. When a forecasted transaction is no longer expected to occur, the cumulative gain or loss accumulated in equity is transferred to the Statement of profit and loss.

g) Impairment of financial assets

A financial asset is assessed for impairment at each balance sheet date. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.

The company measures the loss allowance for a financial asset at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses.

However, for trade receivables or contract assets that result in relation to revenue from contracts with customers, the company measures the loss allowance at an amount equal to lifetime expected credit losses.

h) De-recognition of financial instruments

The Company derecognizes a financial asset or a group of financial assets when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On de-recognition of a financial asset (except for equity instruments designated as FVTOCI), the difference between the asset’s carrying amount and the sum of the consideration received and receivable are recognized in statement of profit and loss.

On de-recognition of assets measured at FVTOCI the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.

Financial liabilities are derecognized if the Company’s obligations specified in the contract expire or are discharged or cancelled. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in Statement of Profit and Loss.

1a. viii. Inventories

a. Inventories are valued at lower of the cost or net realisable value, Cost of Inventories is ascertained on ‘Weighted average’ basis. Materials and other supplies held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

b. Cost in respect of raw materials and stores and spares includes expense incidental to procurement of the same. Cost in respect of finished goods and those under progress represents prime cost and includes appropriate portion of overheads and excise duty/ GST

c. Cost in respect of work in progress represents cost incurred upto the stage of completion.

d. By-products are valued at net realisable value.

1a. ix. Foreign Currency Transactions Presentation currency:

Items included in the financial statements of entities are measured using the currency of the primary economic environment in which the Company operates (‘the functional currency’). These financial statements are presented in Indian Rupee, the national currency of India, which is the functional currency of the company.

Transactions and balances:

Transactions in foreign currencies are translated into the functional currency at the exchange rates prevailing on the date of the transactions. Foreign currency monetary assets and liabilities at the year-end are translated at the year-end exchange rates. 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 transaction. The loss or gain thereon and also on the exchange differences on settlement of the foreign currency transactions during the year are recognized as income or expense in the profit and loss account. Foreign exchange gain/loss to the extent considered as an adjustment to Interest Cost are considered as part of borrowing cost.

1a. x. Equity Share Capital

Ordinary shares are classified as equity. Par value of the equity shares is recorded as share capital and the amount received in excess of par value is classified as share premium.

Significant costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity, net of any tax effects.

1a. xi. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized at discounted amount (other than current) when there is a legal or constructive obligation as a result of past events, it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are not recognized for future operating losses. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Contingent liabilities are disclosed when there is a possible obligation arising 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 or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes to the Financial Statements.

1a. xii. Employee Benefits

Short term Employee benefits are accrued in the year services are rendered by the employees.

Provident & Family Pension Fund: In accordance with the provisions of the Employee Provident Funds and Miscellaneous Provisions Act, 1952, eligible employees of the company are entitled to receive benefits with respect to provident fund, a defined contribution plan, in which both the company and employee contribute monthly to Provident Fund Scheme by the Central Government at a determined rate and the Company’s contribution is charged off to the Statement of Profit and Loss.

Gratuity: Contributions under the scheme for defined benefit under the Payment of Gratuity Act, 1972, is determined on the basis of actuarial valuation recognized as year’s expenditure. Actuarial gain and losses arising from experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income. Other costs recognized in the Statement of Profit or Loss.

1a. xiii. Revenue

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. Revenue is measured at the fair value of the consideration received or receivable,taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the Government.

The specific recognition criteria described below must also be met before revenue is recognised.

a) Sale of Products

Revenue from Sale of goods is recognized at the fair value of consideration received or receivable when the significant risk and rewards of goods ownership of goods have been transferred and the amount of revenue can be measured reliably.

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, service tax/ Goods and Service Tax and sales tax etc. Any retrospective revision in prices is accounted for in the year of such revision.

b) Interest, Dividend and Claims

Dividend income from investments is recognised when the shareholder’s right to receive payment has been established provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest has been accounted using effective interest rate method. Insurance claims/ other claims are accounted as and when admitted/settled.

1a. xiv. Borrowing Cost

Borrowing cost comprises interest and other costs incurred in connection with the borrowing of the funds. All borrowing costs are recognized in the Statement of Profit and Loss using the effective interest method except to the extent attributable to qualifying fixed assets which are capitalized. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.

In respect of foreign currency borrowings, where the interest rate of the borrowing is less than the commercial interest rate prevailing in the local currency borrowing, the resultant exchange loss on account of Foreign Exchange is included in the borrowing cost to the extent it does not exceed the difference between the cost of borrowing in functional currency when compared to the cost of borrowing in a foreign currency. In case where, unrealized exchange loss is treated as an adjustment to interest and subsequently there is a realized or unrealized gain in respect of the settlement or translation of the same borrowing, the gain to the extent of the loss previously recognized as an adjustment is also recognized as an adjustment to interest.

1a. xv. Government Grants

Government grants, including non-monetary grants at fair value, are not recognized until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received.

Government grants whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets and non-monetary grants are recognized and disclosed as ‘deferred income’ as non-current liability in the Balance Sheet and transferred to the Statement of Profit and Loss on a systematic and rational basis over the useful lives of the related assets.

1a. xvi. Income Taxes

Income tax expense representing the sum of current tax expenses and the net charge of the deferred taxes is recognized in the income statement except to the extent that it relates to items recognized directly in equity or other comprehensive income, in which case it is recognized directly in equity or other comprehensive income.

Current income tax is provided on the taxable income and recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Taxable Income differs from ‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

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

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

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability. Accordingly, MAT is recognized as deferred tax asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with asset will be realized.

1a. xvii. Earnings Per Share

Basic earnings per share are computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares, except where the results would be anti-dilutive.

1a. xviii. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief-operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Segment manager who allocates resources and assess the operating activities, financial results, forecasts, or plans for the segment.

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Mar 31, 2015

2.1 Basis of preparation of financial statements:

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual method of accounting except as disclosed in the notes. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('the Act'), read with Rule 7 of the Companies (Accounts) Rules, 2014 and guidelines issued by the Securities and Exchange Board of India (SEBI). The accounting policies adopted in preparation of financial statements are consistent with those of previous year except for change in accounting policy initially adopted or a revision to the existing accounting policy that requires a change as against the one hitherto in use.

2.2 Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires the Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. The Company believes that the estimates used in the preparation of the financial statements as prudent and reasonable. Accounting estimates could change from period to period. Actual results could differ from those estimates.

2.3 Revenue Recognition:

Sale is recognized on dispatch of goods. Sale is net of trade discount, includes excise duty and excludes sales tax recovered. Insurance claim is accounted in the year of receipt.

2.4 Depreciation:

Depreciation on Tangible assets is provided on the straight line method over the useful lives of assets as per the rates specified under Schedule II of the Companies Act, 2013 on pro-rata basis.

2.5 Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation and impairment, if any. Direct costs like inland freight, duties, taxes and incidental expenses related to acquisition are capitalized with due adjustments for Cenvat / VAT credits.

Capital work in progress, if any, includes cost of Machinery to be installed, construction & erection materials and unallocated preoperative expenses.

2.6 Impairment:

At each Balance sheet date, the Management assesses, whether there is any indication that Fixed Asset have suffered an impairment loss. If any such indication exists the recoverable amount of the asset is estimated in order to determine the extent of the impairment if any. Where it is not possible to estimate the recoverable amount of individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.

As per the assessment conducted by the company at March 31, 2015, there was no indication that fixed asset have suffered an impairment loss.

2.7 Investments:

Trade Investments are the investments made to enhance the Group's business interests. Investments are either classified as current or long-term based on the management Intention. Current Investments are carried at the lower of cost and fair value. Long-term Investments are stated at cost. Provision for diminution in the value is made in accordance with AS 13 - Accounting for Investments if the decline/diminution is other than temporary.

2.8 Inventories:

Inventories are valued as under:

a) Raw Materials, Consumables and Stores & Spares are valued at lower of cost and net realizable value. Cost of inventories is generally ascertained on the weighted average basis, which includes expenses incidental to procurement of the same.

b) By-products are valued at net realizable value.

c) Finished Goods are valued at lower of cost and net realizable value. Cost for this purpose means full absorption cost basis which includes direct materials, direct labour, excise duty wherever applicable, related depreciation and appropriate production overheads.

d) Materials-in-Transit are valued at Cost including Freight & Insurance.

2.9 Employee Benefits:

A) Short -term Employee Benefits:

Short Term Employee Benefits for services rendered by them are recognized during the period when the services are rendered.

B) Post Employment Benefits:

(a) Defined contribution plan:

Contribution to defined contribution plans are recognized as expense on accrual basis.

(b) Defined Benefit Plan:

The present value of Gratuity obligation is determined based on actuarial valuation using the projected unit credit method and is recognized as expenses on accrual basis. Actuarial gains / losses arising during the year are recognized in the statement of Profit & Loss.

2.10 Foreign Exchange Transactions:

Transactions in foreign currencies are recorded at the exchange rates prevailing at the date of the transactions. In respect of the transactions covered by Forward Exchange Contracts, the difference between the forward rate and the exchange rate on the date of the transaction is recognized as Income or Expense over the life of the Contract. Transactions not covered by forward exchange rates and outstanding at year end are translated at exchange rates prevailing at the year end and the profit/loss so determined and also the realized exchange gain/losses are recognized in the Statement of Profit & Loss.

2.11 Borrowing Cost:

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets, which are capitalized. During the year under review, there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalized.

2.12 Segment Accounting:

The company operates only in one business segment viz. "Steel and steel products".

2.13 Taxes on Income:

(a) Provision for current tax is made in accordance with the Income Tax Act, 1961.

(b) In accordance with the Accounting Standard AS-22 'Accounting for Taxes on Income' issued by the Institute of Chartered Accountants of India, Deferred Tax Liability / Asset arising from timing differences between book and income tax profits is accounted for at the current rate of tax to the extent these differences are expected to crystallize in later years (Also refer point no 27 (v) of Additional information to the Financial statements). However, Deferred Tax Assets are recognized only if there is a reasonable / virtual certainty of realization thereof. During the year the company has generated deferred tax asset to the extent of Rs.75,76,515/- under review.

2.14 Provisions and Contingencies:

Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the Notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2014

1.1 Basis of preparation:

The financial statements are prepared in accordance with Generally Accepted Accounting Principles in India (GAAP) under historical cost convention on the accrual method of accounting except as disclosed in the notes and materially comply with the mandatory Accounting Standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI) and the Institute of Chartered Accountants of India except to the extent disclosed in the following notes. The accounting policies adopted in preparation of financial statements are consistent with those of previous year except for change in accounting policy initially adopted or a revision to the existing accounting policy that requires a change as against the one hitherto in use.

2.2 Use of Estimates:

The preparation of financial statements requires the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as of the date of financial statements and the reported amounts of income and expenses during the reporting period. The Company believes that the estimates used in the preparation of the financial statements as prudent and reasonable. Future results could differ from these estimates.

2.3 Revenue Recognition:

Sale is recognized on dispatch of goods. Sale is net of trade discount, includes excise duty and excludes sales tax recovered. Insurance claim is accounted in the year of receipt.

2.4. Depreciation:

Depreciation is provided on straight-line method as per the rates specified under Schedule XIV of the Companies Act, 1956 on pro-rata basis.

2.5 Fixed Assets:

Fixed Assets are stated at cost of acquisition inclusive of inland freight, duties taxes and incidental expenses related to acquisition with due adjustments for Cenvat / VAT credits and as adjusted by revaluation and related expenditure less accumulated depreciation.

Capital work in progress includes cost of Machinery to be installed, construction & erection materials and unallocated preoperative expenses.

2.6 Impairment

At each Balance Sheet date, the Company assesses whether there is any indication that Fixed Asset have suffered an impairment loss. If any such indication exists, the recoverable amount of the

Asset is estimated in order to determine the extent of the impairment, if any. Where it is not possible to estimate the recoverable amount of individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

As per the assessment conducted by the company at March 31, 2014, there was no indications that fixed asset have suffered an impairment loss.

2.7 Investments:

Current Investments are carried at lower of cost or fair value. Long-term Investments are stated at cost. Provision for diminution in the value is made in accordance with AS 13 - Accounting for Investments if the decline/diminution is other than temporary.

2.8 Inventories:

Inventories are valued as under:

a) Raw Materials, Consumables and Stores & Spares are valued at lower of cost and net realizable value. Cost of inventories is generally ascertained on the weighted average basis, which includes expenses incidental to procurement of the same.

b) By-products are valued at net realizable value.

c) Finished Goods are valued at lower of cost and net realizable value. Cost for this purpose means full absorption cost basis which includes direct materials, direct labour, excise duty, related depreciation and appropriate production overheads.

d) Materials-in-Transit are valued at Cost including Freight & Insurance.

2.9 Employee Benefits:

(a) Defined contribution plan:

Contribution to defined contribution plans are recognized as expense on accrual basis.

(b) Defined Benefit Plan:

The present value of Gratuity obligation is determined based on actuarial valuation using the projected unit credit method and is recognized as expenses on accrual basis. Actuarial gains / losses arising during the year are recognized in the profit & Loss account.

2.10 Foreign Exchange Transactions:

Transactions in foreign currencies are recorded at the exchange rates prevailing at the date of the transactions. In respect of the transactions covered by Forward Exchange Contracts, the difference between the forward rate and the exchange rate on the date of the transaction is recognized as Income or Expense over the life of the Contract. Transactions not covered by forward exchange rates and outstanding at year end are translated at exchange rates prevailing at the year end and the profit/loss so determined and also the realized exchange gain/losses are recognized in the Profit & Loss Account.

2.11 Borrowing Cost:

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets, which are capitalized. During the year under review, there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalized.

2.12 Segment Accounting:

The Company operates in Single Business Segment of ''Manufacturing of Steel and Allied Products''. There is no reportable secondary segment i.e. Geographical Segment. Therefore, the Company is of the view that the disclosure requirement of Accounting Standard AS-17 issued by the Institute of Chartered Accountants of India is not applicable to the Company.

2.13 Taxes on Income:

(a) Provision for current tax is made in accordance with the Income Tax Act, 1961.

(b) In accordance with the Accounting Standard AS-22 ''Accounting for Taxes on Income'' issued by the Institute of Chartered Accountants of India, Deferred Tax Liability / Asset arising from timing differences between book and income tax profits is accounted for at the current rate of tax to the extent these differences are expected to crystallize in later years (Also refer Note no 28 (vi). However, Deferred Tax Assets are recognized only if there is a reasonable / virtual certainty of realization thereof.

2.14 Provisions and Contingencies:

Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the accounts by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.

Contingencies are recorded when it is probable that a liability will be incurred and the amounts can reasonably be estimated.

"Differences between the actual results and estimates are recognized in the year in which the results are known materialized.

a) Movement of Shares

There is no movement of shares outstanding at the begining and at the end of the reporting period.

b) Terms/ right attached to equity shars :

The company has only one class of equity shares having a par value of Rs. 10/ - per share. Each holder of equity share is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive the assests of the company in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2012

1.1 Basis of preparation:

The financial statements are prepared in accordance with Generally Accepted Accounting Principles in India(GAAP) under historical cost convention on the accrual method of accounting except as disclosed in the notes and materially comply with the mandatory Accounting Standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI) and the Institute of Chartered Accountants of India except to the extent disclosed in the following notes. The accounting policies adopted in preparation of financial statements are consistent with those of previous year except for change in accounting policy initially adopted or a revision to the existing accounting policy that requires a change as against the one hitherto in use.

During the year ended 31st March 2012, the Revised Schedule VI notified under the Companies Act, 1956 has become applicable to the company, for preparation and presentation of its financial statements. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However it has significant impact on the presentation and disclosures made in the financial statements.

1.2 Use of Estimates:

The preparation of financial statements requires the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as of the date of financial statements and the reported amounts of income and expenses during the reporting period. The Company believes that the estimates used in the preparation of the financial statements as prudent and reasonable. Future results could differ from these estimates.

1.3 Revenue Recognition:

Sale is recognized on dispatch of goods. Sale is net of trade discount, includes excise duty and excludes sales tax recovered. Insurance claim is accounted in the year of receipt.

1.4 Depreciation:

Depreciation is provided on straight-line method as per the rates specified under Schedule XIV of the Companies Act, 1956 on pro-rata basis.

1.5 Fixed Assets:

Fixed Assets are stated at cost of acquisition inclusive of inland freight, duties taxes and incidental expenses related to acquisition with due adjustments for Cenvat / VAT credits and as adjusted by revaluation and related expenditure less accumulated depreciation.

Capital work in progress includes cost of Machinery to be installed, construction & erection materials and unallocated preoperative expenses.

1.6 Impairment:

At each Balance Sheet date, the Company assesses whether there is any indication that Fixed Asset have suffered an impairment loss. If any such indication exists, the recoverable amount of the Asset is estimated in order to determine the extent of the impairment, if any. Where it is not possible to estimate the recoverable amount of individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

As per the assessment conducted by the company at 31st March, 2012, there was no indications that fixed asset have suffered an impairment loss.

1.7 Investments:

Current Investments are carried at lower of cost or fair value. Long-term Investments are stated at cost. Provision for diminution in the value is made in accordance with AS 13 - Accounting for Investments if the decline/diminution is other than temporary.

1.8 Inventories:

Inventories are valued as under:

a) Raw Materials, Consumables and Stores & Spares are valued at lower of cost and net realizable value. Cost of inventories is generally ascertained on the weighted average basis, which includes expenses incidental to procurement of the same.

b) By-products are valued at net realizable value.

c) Finished Goods are valued at lower of cost and net realizable value. Cost for this purpose means full absorption cost basis which includes direct materials, direct labour, excise duty, related depreciation and appropriate production overheads.

d) Materials-in-Transit are valued at Cost including Freight & Insurance.

1.9 Employee Benefits:

(a) Defined contribution plan:

Contribution to defined contribution plans are recognized as expense on accrual basis.

(b) Defined Benefit Plan:

The present value of Gratuity obligation is determined based on actuarial valuation using the projected unit credit method and is recognized as expenses on accrual basis. Actuarial gains / losses arising during the year are recognized in the Statement of Profit & Loss.

1.10 Foreign Exchange Transactions:

Transactions in foreign currencies are recorded at the exchange rates prevailing at the date of the transactions. In respect of the transactions covered by Forward Exchange Contracts, the difference between the forward rate and the exchange rate on the date of the transaction is recognized as Income or Expense over the life of the Contract. Transactions not covered by forward exchange rates and outstanding at year end are translated at exchange rates prevailing at the year end and the profit/loss so determined and also the realized exchange gain/losses are recognized in the Statement of Profit & Loss.

1.11 Borrowing Cost:

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets, which are capitalized. During the year under review, there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalized.

1.12 Segment Accounting:

Segments are identified based on the types of products and the internal organization. The company has identified business segments as its primary reporting segment. The company's primary segments consist of Steel and Power. Unallocated Corporate Expense (net of other income) represents expense which relates to the enterprise as a whole and are not allocable to segments. Further, there is no reportable secondary segment i.e. Geographical Segment.

1.13 Taxes on Income:

(b) Provision for current tax is made in accordance with the Income Tax Act, 1961.

(c) In accordance with the Accounting Standard AS-22 'Accounting for Taxes on Income' issued by the Institute of Chartered Accountants of India, Deferred Tax Liability / Asset arising from timing differences between book and income tax profits is accounted for at the current rate of tax to the extent these differences are expected to crystallize in later years (Also refer Note no 26(vii). However, Deferred Tax Assets are recognized only if there is a reasonable / virtual certainty of realization thereof.

1.14 Provisions and Contingencies:

Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the accounts by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.

Contingencies are recorded when it is probable that a liability will be incurred and the amounts can reasonably be estimated. Differences between the actual results and estimates are recognized in the year in which the results are known materialized.

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Mar 31, 2010

1. Accounting convention:

(a) The company follows the accrual method of accounting. The fnancial statements have been prepared in accordance with the historical cost convention (except so far as they relate to revaluation of certain fxed assets and providing for depreciation on revalued amounts) and accounting principles generally accepted in India as a going concern.

(b) The preparation of fnancial statements requires the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as of the date of fnancial statements and the reported amounts of income and expenses during the reporting period. The Company believes that the estimates used in the preparation of the financial statements as prudent and reasonable. Future results could differ from these estimates.

2. Revenue recognition:

Sale is recognized on dispatch of goods. Sale is net of trade discount, includes excise duty and excludes sales tax recovered. Power generated at the Insurance claim is accounted in the year of receipt.

3. Fixed Assets:

Fixed Assets are stated at cost of acquisition as adjusted by revaluation and related expenditure less accumulated depreciation.

4. Depreciation:

Depreciation is provided on straight-line method as per the rates specifed under Schedule XIV of the Companies Act, 1956 on pro-rata basis.

5. Investments:

Current Investments are carried at lower of cost or fair value. Long-term Investments are stated at cost. Provision for diminution in the value is made in accordance with AS 13 - Accounting for Investments if the decline/diminution is other than temporary.

6. Inventories:

Inventories are valued as under:

1. Raw Materials, Consumables and Stores & Spares are valued at lower of cost and net realisable value. Cost of inventories is generally ascertained on the weighted average basis.

2. Finished Goods are valued at lower of cost and net realisable value. Cost for this purpose means full absorption cost basis which includes direct materials, direct labour, excise duty, related depreciation and appropriate production overheads.

3. Materials-in-Transit are valued at Cost including Freight & Insurance.

7. Employee Benefits:

1. defined contribution plan:

Contribution to defined contribution plans are recognized as expense on accrual basis.

2. defined Benefit Plan:

The present value of Gratuity obligation is determined based on actuarial valuation using the projected unit credit method and is recognized as expenses on accrual basis. Actuarial gains / losses arising during the year are recognized in the proft & Loss account.

8. foreign exchange transactions:

Transactions in foreign currencies are recorded at the exchange rates prevailing at the date of the transactions. In respect of the transactions covered by Forward Exchange Contracts, the difference between the forward rate and the exchange rate on the date of the transaction is recognized as Income or Expense over the life of the Contract. Transactions not covered by forward exchange rates and outstanding at year end are translated at exchange rates prevailing at the year end and the proft/loss so determined and also the realized exchange gain/losses are recognized in the Proft & Loss Account.

9. Borrowing cost:

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalized. During the year under review, there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalized.

10. segment accounting:

Segments are identifed based on the types of products and the internal organization. The company has identifed business segments as its primary reporting segment. The company’s primary segments consist of Steel and Power. Unallocated corporate expense (net of other income) represents expense which relate to the enterprise as a whole and are not allocable to segments.

11. taxes on income:

1. Provision for current tax is made in accordance with the Income Tax Act, 1961.

2. In accordance with the Accounting Standard AS-22 ‘Accounting for Taxes on Income’ issued by the Institute of Chartered Accountants of India, Deferred Tax Liability / Asset arising from timing differences between book and income tax profits is accounted for at the current rate of tax to the extent these differences are expected to crystallize in later years (Also refer point 8 of Notes on Accounts). However, Deferred Tax Assets are recognized only if there is a reasonable / virtual certainty of realization thereof.

12. Provisions and contingencies:

Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outfow of resources. Contingent liabilities are not recognized but are disclosed in the accounts by way of a note. Contingent assets are neither recognized nor disclosed in the fnancial statements.

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Mar 31, 2009

1. Accounting Convention:

(a) The company follows the accrual method of accounting. The financial statements have been prepared in accordance with the historical cost convention (except so far as they relate to revaluation of certain fixed assets and providing for depreciation on revalued amounts) and accounting principles generally accepted in India as a going concern.

(b) The preparation of financial statements requires the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as of the date of financial statements and the reported amounts of income and expenses during the reporting period. The Company believes that the estimates used in the preparation of the financial statements as prudent and reasonable. Future results could differ from these estimates.

2. Revenue Recognition:

Sale is recognized on dispatch of goods. Sale is net of trade discount, includes excise duty and excludes sales tax recovered. Power generated at the Insurance claim is accounted in the year of receipt.

3. Fixed Assets:

Fixed Assets are stated at cost of acquisition as adjusted by revaluation and related expenditure less accumulated depreciation.

4. Depreciation:

Depreciation is provided on straight-line method as per the rates specified under Schedule XIV of the Companies Act, 1956 on pro-rata basis.

5. Investments:

Current Investments are carried at lower of cost or fair value. Long-term Investments are stated at cost. Provision for diminution in the value is made in accordance with AS 13 - Accounting for Investments if the decline/diminution is other than temporary.

6. Inventories:

Inventories are valued as under:

1. Raw Materials, Consumables and Stores & Spares are valued at lower of cost and net realisable value. Cost of inventories is generally ascertained on the weighted average basis.

2. Finished Goods are valued at lower of cost and net realisable value. Cost for this purpose means full absorption cost basis which includes direct materials, direct labour, excise duty, related depreciation and appropriate production overheads.

3. Materials-in-Transit are valued at Cost including Freight & Insurance.

4. Employee Benefits:

1. Defined contribution plan:

Contribution to defined contribution plans are recognized as expense on accrual basis.

2. Defined Benefit Plan:

The present value of Gratuity obligation is determined based on actuarial valuation using the projected unit credit method and is recognized as expenses on accrual basis. Actuarial gains / losses arising during the year are recognized in the profit & Loss account.

5. Borrowing Cost:

All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalized. During the year under review, there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalized.

6. Segment Accounting:

Segments are identified based on the types of products and the internal organization. The company has identified business segments as its primary reporting segment. The companys primary segments consist of Steel and Power. Unallocated corporate expense (net of other income) represents expense which relate to the enterprise as a whole and are not allocable to segments.

7. Taxes on Income:

1. Provision for current tax is made in accordance with the Income Tax Act, 1961.

2. In accordance with the Accounting Standard AS-22 Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India, Deferred Tax Liability / Asset arising from timing differences between book and income tax profits is accounted for at the current rate of tax to the extent these differences are expected to crystallize in later years (Also refer point 8 of Notes on Accounts). However, Deferred Tax Assets are recognized only if there is a reasonable / virtual certainty of realization thereof.

8. Provisions and Contingencies:

Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the accounts by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2000

(a) Sales

Income from sales is accounted on despatch of goods. The sale is net of trade discount, includes excise duty and excludes sales tax recovered.

(b) Fixed Assets

Fixed Assets are stated at cost of acquisition and related expenditure less accumulated depreciation.

(c) Depreciation

Depreciation is provided on straight-line method as per the rates specified under Schedule XIV of the companies Act, 1956 on a pro-rata basis.

(d) Investment

Investment is stated at cost. No provision is made for diminution in value of the investments as all investments are considered as long-term investments and any diminution in value thereof is considered to be of a temporary nature and therefore not provided for.

(e) Inventories

Inventories are valued as under:

1. Raw Materials, Consumables and Stores & Spares are valued at lower of cost and net realisable value.

2. Finished Goods are valued at lower of cost and net realisable value. Cost for this purpose includes direct materials, direct labour, excise duty, related depreciation and appropriate production overheads.

(f) Preliminary/Share Issue Expenses

These are amortised over a period of ten years.

(g) Retirement Benefit

No provision for gratuity to employees has been made since the company has not done any actuarial valuation. Unavailed leave to the credit of the employees are accounted as and when encashed.