Accounting Policies of Katare Spinning Mills Ltd. Company

Mar 31, 2024

2. Material Accounting Policies

2.1 System of Accounting:

i). Statement of compliance & Basis of preparation

The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, notified under section 133 of the Companies Act, 2013, ("Act") and other relevant provisions of the Act.

The financial statements have been prepared on a going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires change in accounting policy hitherto in use.

The financial statements were approved for issue by the Board of Directors on 30th May, 2024.

ii) Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is also the Company’s functional currency. All financial information presented in Indian rupees have been rounded-off to two decimal places.

iii) Basis of measurement

In preparation of the financial statements, the Company makes judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and the associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The areas involving significant judgements and estimates are estimation of useful lives of property, plant and equipment and intangible assets, impairment of property, plant and equipment and intangible assets, provision for employee benefits and other provisions, contingent liabilities and recoverability of deferred tax assets.

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes:

- Note 1 - determining an asset’s expected useful life and the expected residual value at the end of its life;

- Note 1 - Impairment of fixed assets;

- Note 8 - recognition of tax expense including deferred tax

iv)Current and non-current classification:

The Schedule III to the Act requires assets and liabilities to be classified as either current or non-current. The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

Assets

An asset is classified as a current when:

- it is expected to be realized in, or is intended for sale or consumption in, the Company’s normal operating cycle;

- it is expected to be realized within twelve months from the reporting date;

- it is held primarily for the purposes of being traded; or

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

All other assets are classified as non current

Liabilities

A liability is classified as a current when:

- it is expected to be realized in, or is intended for sale or consumption in, the Company’s normal operating cycle;

- it is due to be settled within twelve months from the reporting date;

- it is held primarily for the purposes of being traded;

- Deferred tax assets/liabilities are classified as non-current.

- the Company does not have an unconditional right to defer settlement of liability for at least twelve months from the reporting date.

All other liabilities are classified as non-current.

Operating Cycle

Operating cycle is the time between the acquisition of assets for processing and realisation in cash or cash equivalents. The Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

KATARE SPINNING MILLS LIMITED

2.2 Segment Reporting:

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker. The Chairman and Managing Director has been identified as being the Chief Operating Decision Maker.

The segment results are as under:

Rs. In Thousand

Segment Revenue	Spinning Division		Solar Power Division		Total
	2024	2023	2024	2023	2024	2023
Sales Revenue	33,740	65,136	6,307	5,603	40,047	70,739
Segment Results	(17,334)	(11,563)	(202)	(521)	(17,536)	(12,084)
Unallocated Corporate Expenses	-	-	-	-	-	-
Unallocated Corporate Income	-	-	-	-	-	-
Operating Profit	(17,334)	(11,563)	(202)	(521)	(17,536)	(12,084)
Interest Expenses	3,069	1,341	-	-	3,069	1,341
Net Operating Income	(20,403)	(12,904)	(202)	(521)	(20,605)	(13,425)
Profit / Loss from Ordinary Activities	(20,403)	(12,904)	(202)	(521)	(20,605)	(13,425)
Extra-Ordinary Item	-	-	-	-	-	-
Net Profit / Loss	(20,403)	(12,904)	(202)	(521)	(20,605)	(13,425)
OTHER INFORMATION					-	-
Segment Assets	1,160,251	1,177,055	60,417	64,526	1,220,669	1,241,58 1
Segment Liabilities	44,815	46,997	-	-	44,815	46,997
Net Depreciation	6,868	7,624	6,137	6,125	13,005	13,749

Power generated in solar division 13,11,265 units consumed captive for spinning division, valued at Rs.63.07 lakhs.The Hotel Division of the Company is closed in the year 21-22.

ANNUAL REPORT 2023-24

2.3 Revenue recognition:

i) Revenue from Sale of Goods

Revenue from Sale of Goods is recognized when all the significant risk and rewards of ownership have been transferred to the buyer, revenue can be measured reliably, the costs incurred can be measured reliably, it is probable that the economic benefits associated to the transaction will flow to the entity and there is no continuing management involvement with the goods. Transfer or risks and rewards vary depending on the individual terms of contract of sale. Revenue from sale of goods is stated inclusive of excise duty when applicable and net of returns, trade allowances, rebates, sales tax, GSTand amounts collected on behalf of third parties.

In the case of solar power generation unit, it is mainly used for captive consumption.

Units generated are treated as income and portion of the units used for captive consumption is booked as expenditure being used at the prevailing rates as if purchased from MSEDCL.

Dividends from investment are recognized as income of the year in which the same are declared by the investee company

ii) Interest Incomes:

There were no financial instruments requiring treatment specified under Ind AS. Interest income is included in Other Income in the Statement of Profit and Loss.

2.4 Income Taxes:

i. The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

ii. The current income tax charge is not calculated as the company is in operating loss.

iii. Income Tax is computed after adjustments of Other Comprehensive income

iv. Deferred income tax is provided in full, using the liability method, on temporary difference arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax assetis realized, or the deferred income tax liability is settled

v. Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.

vi. Current and deferred tax is recognized in profit or loss. Except to the extent that it relates to itemsrecognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively

vii. Minimum Alternate Tax paid in accordance with tax laws, which give rise to the future economic benefits in the form of adjustment to future income tax liability, is considered as asset in the balance sheet when it is probable that future economic benefit associated, with it will flow to the company and the asset can be measured reliably. Out of them Rs.6,74,833/- lapsed relating FY2009-10 and hence written off to the profit and loss statement in current financial year.

2.5 Impairment of Assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss will be recognized for the amounts by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is higher ofanasset’sfair value less costs of disposal and value in use. For thepurpose of assessing impairment, assets are compared at the lowest levels for which thereare separately identifiable cash inflows which are largely independent of the cash inflowsfrom other assets or Company of assets (cash- generating units). Non- financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

2.6 Cash and cash equivalents:

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowing in current liabilities in the balance sheet.

2.7 Trade receivables:

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.

2.8 Inventories:

a. Finished goods are valued at lower of cost or Net Realizable Value. Cost for this purpose is arrived at on Absorption costing basis. Excise duty is included in valuation of finished goods.

b. Stock in process/plant is valued at cost.

c. Stock of raw materials, Stores and Spares and packing materials are valued at cost. Cost for this purpose, does not include duties/taxes that are recoverable in future.

2.9 Investments and other financial assets.

i. Investments held by the company are not of the nature requiring valuation as measured by Ind AS and accordingly are stated at cost of acquisition.

ii. Impairment of financial assets

For trade receivable only, the company applies the simplified approach permitted by Ind AS 109Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables.

2.10 Offsetting financial instruments

There were no such Financialinstruments requiring off-set as prescribed under Ind AS.

2.11 Property, Plant and Equipment

Property, Plant and Equipment Leasehold land is carried at historical costs. All other items of property, plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any.

Cost includes cost of acquisition, installation or construction, other direct expenses incurred to bring the assets to its working condition and finance costs incurred up to the date the asset is ready for its intended use and excludes Input Tax Credit under GSTeligible for credit / setoff.

Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals, the same are depreciated separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in the statement of profit or loss as incurred.

Capital work-in-progress in respect of assets which are not ready for their intended use are carried at cost, comprising of direct costs, related incidental expenses and attributable interest. All identifiable Revenue expenses including interest incurred in respect of various projects / expansion, net of income earned during the project development stage prior to its intended use, are considered as pre - operative expenses and disclosed under Capital Work-inProgress. Capital expenditure on tangible assets for research and development is classified under property, plant and equipment and is depreciated on the same basis as other property, plant and equipment.

Property, plant and equipment are eliminated from financial statements, either on disposal or when retired from active use. Losses arising in the case of the retirement of property, plant and equipment and gains or losses arising from disposal of property, plant and equipment are recognised in the statement of profit and loss in the year of occurrence.

Depreciation for Company

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Property, plant and equipment are provided on written down value method, over the useful life of the assets, as specified in Schedule II to the Companies Act, 2013. Property, plant and equipment which are added / disposed off during the year, depreciation is provided on pro-rata basis. Buildings constructed on leasehold land are depreciated based on the useful life specified in Schedule II to the Companies Act, 2013, where the lease period of the land is beyond the life of the building. In other cases, buildings constructed on leasehold lands are amortized over the primary lease period of the lands. The asset’s residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

However, no depreciation is intended to be claimed for the current year on Plant & Machinery of Spinning Factory as there has been no production. Accordingly, depreciation on Plant & Machinery of Spinning Factory is not provided for.

Depreciation on Vehicles and Furniture & Fixtures is NIL for the current financial year since the useful life of these assets is expired and carrying amounts represent salvage value.

2.12 Trade and Other Payables:

These amounts represent liabilities for goods provided to the company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method.

2.13 Borrowings:

Borrowings are initially recognized at fair value, net of transaction cost incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds(net of transaction costs)and the redemption amount is recognized in profit or loss over the period of the borrowings using the effectives interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In the case the fee is deferred until the draw down occurs.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

---

Mar 31, 2023

2. Significant accounting policies 2.1 System of Accounting:

i). Statement of compliance & Basis of preparation

The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, notified under section 133 of the Companies Act, 2013, ("Act") and other relevant provisions of the Act.

The financial statements have been prepared on a going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires change in accounting policy hitherto in use.

The financial statements were approved for issue by the Board of Directors on 30th May, 2023.

ii) Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is also the Company’s functional currency. All financial information presented in Indian rupees have been rounded-off to two decimal places.

iii) Basis of measurement

In preparation of the financial statements, the Company makes judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and the associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The areas involving significant judgements and estimates are estimation of useful lives of property, plant and equipment and intangible assets, impairment of property, plant and equipment and intangible assets, provision for employee benefits and other provisions, contingent liabilities and recoverability of deferred tax assets.

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes:

- Note 1 - determining an asset’s expected useful life and the expected residual value at the end of its life;

- Note 1 - Impairment of fixed assets;

- Note 8 - recognition of tax expense including deferred tax

iv)Current and non-current classification:

The Schedule III to the Act requires assets and liabilities to be classified as either current or non-current. The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

Assets

An asset is classified as a current when:

- it is expected to be realized in, or is intended for sale or consumption in, the Company’s normal operating cycle;

- it is expected to be realized within twelve months from the reporting date;

- it is held primarily for the purposes of being traded; or

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

All other assets are classified as non current

Liabilities

A liability is classified as a current when:

- it is expected to be realized in, or is intended for sale or consumption in, the Company’s normal operating cycle;

- it is due to be settled within twelve months from the reporting date;

- it is held primarily for the purposes of being traded;

- Deferred tax assets/liabilities are classified as non-current.

- the Company does not have an unconditional right to defer settlement of liability for at least twelve months from the reporting date.

All other liabilities are classified as non-current.

Operating Cycle

Operating cycle is the time between the acquisition of assets for processing and realization in cash or cash equivalents. The Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

2.3 Revenue recognition:

i) Revenue from Sale of Goods

Revenue from Sale of Goods is recognized when all the significant risk and rewards of ownership have been transferred to the buyer, revenue can be measured reliably, the costs incurred can be measured reliably, it is probable that the economic benefits associated to the transaction will flow to the entity

and there is no continuing management involvement with the goods. Transfer or risks and rewards vary depending on the individual terms of contract of sale. Revenue from sale of goods is stated inclusive of excise duty when applicable and net of returns, trade allowances, rebates, sales tax, GSTand amounts collected on behalf of third parties.

In the case of solar power generation unit, it is mainly used for captive consumption. Units generated are treated as income and portion of the units used for captive consumption is booked as expenditure being used at the prevailing rates as if purchased from MSEDCL.

Dividends from investment are recognized as income of the year in which the same are declared by the investee company

ii) Interest Incomes:

There were no financial instruments requiring treatment specified under Ind AS. Interest income is included in Other Income in the Statement of Profit and Loss.

2.4 Income Taxes:

i. The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

ii. The current income tax charge is not calculated as the company is in operating loss.

iii. Income Tax is computed after adjustments of Other Comprehensive income

iv. Deferred income tax is provided in full, using the liability method, on temporary difference arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax assetis realized, or the deferred income tax liability is settled

v. Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses

vi. Current and deferred tax is recognized in profit or loss. Except to the extent that it relates to itemsrecognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly

vii. Minimum Alternate Tax paid in accordance with tax laws, which give rise to the future economic benefits in the form of adjustment to future income tax liability, is considered as asset in the balance sheet when it is probable that future economic benefit associated with it will flow to the company and the asset can be measured reliably. Out of them Rs.10,57,390/- lapsed relating FY2008-09 and hence written off to the profit and loss statement.

2.5 Impairment of Assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss will be recognized for the amounts by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is higher ofanasset’sfair value less costs of disposal and value in use. For thepurpose of assessing impairment, assets are compared at the lowest levels for which thereare separately identifiable cash inflows which are largely independent of the cash inflowsfrom other assets or Company of assets (cash- generating units). Non- financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

2.6 Cash and cash equivalents:

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowing in current liabilities in the balance sheet.

2.7 Trade receivables:

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.

The trade receivable outstanding for more than one year are amounting to Rs.4,67,400/-However, in the opinion of the management these are considered as good for recovery and has not been written as Bad.

2.8 Inventories:

a. Finished goods are valued at lower of cost or Net Realizable Value. Cost for this purpose is arrived at on Absorption costing basis. Excise duty is included in valuation of finished goods.

b. Stock in process/plant is valued at cost.

c. Stock of raw materials, Stores and Spares and packing materials are valued at cost. Cost for this purpose, does not include duties/taxes that are recoverable in future.

2.9 Investments and other financial assets.

i. Investments held by the company are not of the nature requiring valuation as measured by Ind AS and accordingly are stated at cost of acquisition.

ii. Impairment of financial assets

For trade receivable only, the company applies the simplified approach permitted by Ind AS 109Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables.

2.10 Offsetting financial instruments

There were no such Financialinstruments requiring off-set as prescribed under Ind AS.

2.11 Property, Plant and Equipment

Property, Plant and Equipment Leasehold land is carried at historical costs. All other items of property, plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any.

Cost includes cost of acquisition, installation or construction, other direct expenses incurred to bring the assets to its working condition and finance costs incurred up to the date the asset is ready for its intended use and excludes Input Tax Credit under GSTeligible for credit / setoff.

Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals, the same are depreciated separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in the statement of profit or loss as incurred.

Capital work-in-progress in respect of assets which are not ready for their intended use are carried at cost, comprising of direct costs, related incidental expenses and attributable interest. All identifiable Revenue expenses including interest incurred in respect of various projects / expansion, net of income earned during the project development stage prior to its intended use, are considered as pre - operative

expenses and disclosed under Capital Work-in-Progress. Capital expenditure on tangible assets for research and development is classified under property, plant and equipment and is depreciated on the same basis as other property, plant and equipment.

Property, plant and equipment are eliminated from financial statements, either on disposal or when retired from active use. Losses arising in the case of the retirement of property, plant and equipment and gains or losses arising from disposal of property, plant and equipment are recognised in the statement of profit and loss in the year of occurrence.

Depreciation for Company

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Property, plant and equipment are provided on written down value method, over the useful life of the assets, as specified in Schedule II to the Companies Act, 2013. Property, plant and equipment which are added / disposed off during the year, depreciation is provided on pro-rata basis. Buildings constructed on leasehold land are depreciated based on the useful life specified in Schedule II to the Companies Act, 2013, where the lease period of the land is beyond the life of the building. In other cases, buildings constructed on leasehold lands are amortized over the primary lease period of the lands. The asset’s residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

2.12 Trade and Other Payables:

These amounts represent liabilities for goods provided to the company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method.

2.13 Borrowings:

Borrowings are initially recognized at fair value, net of transaction cost incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds(net of transaction costs)and the redemption amount is recognized in profit or loss over the period of the borrowings using the effectives interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In the case the fee is deferred until the draw down occurs.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

---

Mar 31, 2015

1) System of Accounting:

1) The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

ii) The financial statements have been prepared in all material respects with Accounting Standards as relevant and notified by the Central Government.

iii) The financial statements are prepared on historical cost basis and as a going concern.

2) Revenue recognition:

i) Sale of goods is recognized at the point of dispatch of goods to customers. Gross sale is inclusive of Excise Duty when applicable and is net of returns and Value Added Tax

ii) Income from guest accommodation in respect of hotel division is recognized on day to day basis after the guests checks in. Discounts, if any, in this regard are accounted upon final conclusion of the bill with the guests. Any advance received in respect of the same is treated as a liability pending finalization of bill/provision of services. Income from sale of Food & Beverages is recognized at the point of serving of these items to the guests. The income stated is inclusive of luxury tax, service charge and VAT but net of complimentary and discounts.

iii) Dividends from investment are recognized as income of the year in which the same are declared by the investee company

3) Tangible Fixed Assets and Depreciation:

Tangible Fixed Assets acquired by the company are reported at acquisition value with revaluated amount of Rs. 19,56,71,129 as approved by Valuer on 31/03/2002, with deductions for accumulated depreciation and impairment losses, if any.

The acquisition cost for this purpose includes the purchase price (net of duties and taxes which are recoverable in future) and expenses directly attributable to the asset to bring it to the site and in the working condition for its intended use.

Where the construction or development of any such asset requiring time to set up for its intended use, is funded by borrowings, the corresponding borrowing costs are capitalized up to the date when the asset is ready for its intended use.

The interest during construction period, indirect project expenditure and trial run expenditure (net of trial run income) incurred in respect of projects under implementation are capitalized to the asset created.

Depreciation is provided in accordance with Schedule II of the Companies Act, 2013 in respect of the remaining useful life of the asset as far as the existing assets are concerned. In respect of additions, depreciation is provided on the basis of the useful life of the assets as prescribed by Schedule II of Companies Act, 2013.

During the year the company had carried out technical evaluation of the useful life of the existing assets and applied the method of depreciation as prescribed by Schedule II of the Companies Act, 2013. The adjustment as a result of the re- computation is made to the opening balance of profit and loss account.

4) Investments:

Investments are stated at cost.

5) Inventories:

a) Finished goods are valued at lower of cost or Net Realizable Value. Cost for this purpose is arrived at on Absorption costing basis. Excise duty is included in valuation of finished goods.

b) Stock in process/plant is valued at cost.

c) Stock of raw materials, Stores and Spares and packing materials are valued at cost. Cost for this purpose, does not include duties/taxes that are recoverable in future.

d) Food & Beverages:

1) Groceries: Groceries is valued at cost arrived at on weighted average basis.

2) Beverages: Valued at cost.

6) Staff Benefits:

a) The Company's contribution to Provident Fund and pension fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

b) Gratuity is accounted for on actual payment basis. No provision for gratuity on actuarial basis is made and hence it's effect on profit or loss can not be ascertained.

7) Research and Development:

Revenue expenditure on research and development is charged to Statement of profit and loss in the year in which is incurred. Capital expenditure on research and development is treated at par with fixed assets and depreciated as such.

8) Deferred Taxation:

Accounting treatment in respect of deferred taxation is in accordance with Accounting Standard 22 - "Accounting for Taxes on Income" issued by the Institute of Charted Accountants of India.

9) Minimum Alternate Tax:

Minimum Alternate Tax paid in accordance with tax laws, which give rise to the future economic benefits in the form of adjustment to future income tax liability, is considered as as asset in the balance sheet when it is probable that future economic benefit associated with it will flow to the company and the asset can be measured reliably.

10) Borrowing Costs:

Costs in respect of borrowings for the purpose of expansion/additional fixed investments including R & D project are capitalized to such investments.

Borrowing costs relating to period after the commencement of operations of the project are charged to revenue.

12) Foreign Currency Transactions:

Foreign Exchange Transactions are recorded at pre-determined standard exchange rates which are reviewed periodically. Gains or losses arising out of such standard rates and also on realization settlement are accounted for accordingly.

13) Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the asset's net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to the present value using the weighted average cost of capital. In carrying out such exercise, due effect is given to the requirements of Schedule II to Companies Act, 2013.

---

Mar 31, 2014

2.1 Basis of acoounting and preperation of financiai statem ents

The company maintains Hs accounts on accrue I basis :Ql losing his;orical cost c6hventicn, in accordance with the Indian Generally Accepted Accounting Principles. Management makes estimates and technical aid ocherassumptions regarding tie amounts of incomes and axpenses, assets and liabilities and disclosure ot contingencies, in accordance with Generally Accepted Accoutring Principles in India in the preparation df the financial statements. Difference between the actual results and estimates are retogn-zed in toe per :uU in wl nvi 111 icydredtiLu mined.

2.2 Fixed Assets

E and and i pasphnld t and, Fartnry F.l Hiring, Hntel Building and Plant A Marhnpry havp been shown as revalued by the approved Valuer on 3iy03/20'}2 thereby increase in such assets In Gross Block bv Rs, 19,56,71,12& Other fixed assets are recorded at cost of dLLiursitiun, ntrL uf nuevat. and VAT crtdiL or vusL uf LuristrucLivri urdudiiig urec.ly attributable costs reduced by accumulated deprecation. Land on leasehod basis is included in the schedule of fixed assets.

2.3 Depredation

r. Depreciation nas been changed on the Sbarght Line Method in accordance with tie rates s pec if I sd un de r 5c hedul e XIV tc the Core pa n i e 5 Act, 19 5G, fi. Depreciation on assets added during the year has been provided on pry-rata basis, iii Depreciation on revaluation amount of fired assets is adjusted hy transferring me eq ui va I e n t amou nt Fro m Reva I uat ion Re serve Accou n t.

2.4 Inventories

Raw Material, Work in Process, stores and spares, food and beverages are valued at cost u n FI FO me thud Fi nished Goods an d Goods or i Con sig n merit a re va iu tad at oust u r rel i a til e value wiirheveris lower Wastage and scrap are valued at Reaii7ahlp Market Valine

2.5 Rcvenua recognition Sale of goods

Sales are accounted net ot returns and discounts and is accounted at the point of despatch of materia, to I he customers. In the Ho;el Division receipts from mom rent are net of discount but inclusive o" luxury tax ant service charge. In case of food and beverac e sal es a re acco un ted net of comp I i nrenta ry a nd d i sco u nt but i nc I usi ve of serv ice charge and vat.

2.6 Other ircome

Interest income is accounted oil actmed basis. Dividend income is accounted for when through to receive estabilshment.

2.7 Cash and cash equivalents (for purposes of Cash flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition) liiylily I qurd inveatiTltifits hint are readily cgiivertfbie iiituknoWn amounts of cash and which a re subject to insignificant risk of changes in value.

2.8 Cash flow statement

Cash flows are reported using the iincirect method, whereby prefit j (loss) before extraordinary item sand tax is adjusted for the effects of transactions of non-cash nature cm uJ tii iy defend s ur dcuudlij of j/astui fuLun: cdth iooui|Xs ui payments. The cash huwb from operating, investing and financing activities of the Company are segregated based a n the avai la b le i nform ati o n.

2.9 Forei gn cu rren cy t ransa ttio ns and Iran static rs There were no foreign, currency transactions,

2.10 Investments InvesLruenLs are sLa.ed at cost.

2.11 Empoloyee Reterirment benefits

The Company's contribution to provident fund and pension fund are considemd as defined contribution plans and are charged as an expense as they fall due based on tie amount of contribution required :o be made.

Defined benefit plans

Gratu i ty i s eecou nted Fo r o n net ua I pe ym ;n c b»si s. No pr)v I sio n for gr-etu ty on act ua ri al basis is made and hence its effect on profit or oss cannot be ascertained.

2.12 Borrowing costs

Borrowing costs include interest, amortization of ancillary costs ncurred. Costs in connecti on wlth the sorrow] ng of fy nd s to rh e ex te nt not di redly re la ted to the acqu i sitio n of qualifying asictssre changed tothS Statementof Profit and Loss over the tenure oftTie loan. Borrowing costs, ailocatec to and utilized for qualifying assets, pertaining to tie penod from commencement of activities relating to construction / devebpment of tie qualifying asset upto the date cr capitalization of such asset is added to the cost of tie assets.

2.13 Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organzation end management structure. The operating segments 9re the segment for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly oy the executive Management in deed mg how to allocate resources and in assessing pc-form a nee.

The accounting polities adopted for segment reporting are in line with the accounting policies or the company, segment revenue, segment expenses, segment assets ano segment liabilities have been identified to segments on me basis of their relationship to the operaticg activities of the segment. Revenue, expenses, assets and liabiltles which relate to the Company as a whole and are not allocable tc segments on reasonable basis have been included under "unallocated revenue/ expenses / assets / iiabilrJes,1'

2-1A Taxes on Income Current Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax

Deferred tax is calculated at the rates and laws that have been enacted or substantially enacted as of the balance sheet date and is recognized on tming differences that originate in one period and are capable of reversal in one or more subsequent period, Deferred tax assets, subject to cons ideation ot prudence are recognized and carried forward only to the extent that they can be realized.

Minimum Alternate Tax (MAT)

Minimum alternate "ax paid in accordance with the tax laws, whicn give rise to the future economic benef ts in theform of ad justment to future income tax IiabiHty, is considered as an asset in the balance sheet when it is probable that future economic benefit associated with it will howto the company and the asset can be measured reliably.

2.15 Etii'niiigsper shafts

Bade earning per share is computer by dividing the profi: / (loss) after tax (including tie post tax effect of extraordinary hems, if any) by the weighted average number of equ ty shares outstanding during the year. Diluted earnings per she re is computed by dviding the profit i (loss) aftertax (including the post tax effect of extraordinary items, if any) as adjusted For dividend, interest znd othe' charges to expense or income rela:mg to tie delusive potential equity shares, by the weighted average numbe- of equity shares considered or deriving basic earnings [ier share and the weighted average number of equity shares which could have been Issued on the conversion of alt delusive potential equity shares.

2.16 Research ard development expenses

Revenue expenditure pertaining to jesearct is charged to the Statement of Pm'it and Loss, Development costs of products are also cha-ged to the Statement of Profit and Loss unless a product's technological feasibility has been established, in which case such expenditure is capita Sized. The amount capitalized comprises expenditure that can oe directly attributed or etlocated on a reesanpbte and consistent bosis- to creating, producing end 'rakinq the asset ready for its intended use. Fixed assets utilized for research and development are capitalized and depreciated in accordance with the policies stated for Tangible Fixed Assets a ad Intangible Assets.

2.17 Provisions and con ting encies

A p-oviiion is recognised when the Company he; e present obligation e; a result of pest events and it is probable that an outflow of resources will be required to settle tie obligation in respect of which a reliable estimate can be made. Provisions (excluding reti'ement benefits) are not discounted to their present value anc are determined based on the bes: estimate required to sette the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted bo reflect the current best estimates. Contingent I i abilities a re disci csed in the Notes.

2.18 In sura nee claims

Insurance claims are accounted for on the basis of claims admitted / expected to oe admitted and to the extent that there is no uncertainty in receiving the claims.

2.19 Finrvicetax tnpuh rmdit

5erv ice ta x in put cred ibis a ccou nted 'or in the books fri the period in wh ich the unde rlyi n g service received is accounted and when there is no cncertairty in availing / utilizing tie credits.

---

Mar 31, 2012

1.1 Basis of accounting and preparation of financial statements

The company maintains its accounts on accrual basis following historical cost convention, in accordance with the Indian Generally Accepted Accounting Principles. Management makes estimates and technical and other assumptions regarding the amounts of incomes and expenses, assets and liabilities and disclosure of contingencies, in accordance with Generally Accepted Accounting Principles in India in the preparation of the financial statements. Difference between the actual results and estimates are recognized in the period in which they are determined.

1.2 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 does not impact recognition and measurement principles followed for the preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figu es in accordance with the requirements applicable in the current year.

1.3 Fixed Assets

Land and Leasehold Land, Factory Building, Hotel Building and Plant & Machinery have been shown as revalued by the approved Value on 31/03/2002 thereby increase in such assets in Gross Block by Rs. 19,56,71,129. Other fixed assets are recorded at cost of acquisition, net of modal and VAT credit or cost of construction including directly attributable costs reduced by accumulated depreciation Land on leasehold basis is included in the schedule of fixed assets.

1.4 Depreciation

i Depreciation has been charged on the Straight Line Method in accordance with the rates specified under Schedule XTV to the Companies Act, 1956.

ii Depreciation on assets added during the year has been provided on pro-rata basis.

iii Depreciation on revaluation amount of fixed assets is adjusted by transferring the equivalent amount from Revaluation Reserve Account.

1.5 Inventories

Raw Material, Work in Process, stores and spares, food and beverages are valaed at cost on FIFO method. Finished Goous and Goods on Consignment are valued at cost or reusable value whichever is lower. Wastage and scrap are valued at Realisable Market Value.

1.6 Revenue recognition Sale of goods

Sales are accounted net of returns and discounts and is accounted at the point of despatch of material to the customers. In the Hotel Division receipts from room rent are net of disocunt but inclusive of luxury tax and service charge. In case of food and beverage sales are accounted net of complimetary and discount but inclusive of service charge and vat.

1.7 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.8 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.9 Cash flow statement Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.10 Foreign currency transactions and translations

There were no foreign currency transactions.

1.11 Investments Investments are stated at cost.

1.12 Employee/Retirement benefits Defined contribution plans The Company's contribution to provident fund and pension fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

Defined benefit plans

Gratuity is accounted for on actual payment basis. No provision for gratuity on acturial basis is made and hence its effect on profit or loss cannot be ascertianed.

1.13 Borrowing costs

Borrowing costs include interest, amortization of ancillary costs incurred. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalization of such asset is added to the cost of the assets.

1.14 Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organization and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance. The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

1.15 Taxes on Income Current Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax

Deferred tax is calculated at the rates and laws that have been enacted or substantially enacted as of the balance sheet date and is recognized on timing differences that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets, subject to consideration of prudence are recognised and carried forward only to the extent that they can be realised.

Minimum Alternate Tax (MAT) Minimum alternate Tax paid in accordance with the tax laws, which give rise to the future economic benefits in the form of adjustment to future incoem tax liability, is considered as an asset in the balance sheet when it is probable that future economic benefit associated with it will flow to the company and the asset can be measured reliably.

1.16 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post fax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

1.17 Research and development expenses

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are also charged to the Statement of Profit and Loss unless a product's technological feasibility has been established, in which case such expenditure is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

1.18 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

1.19 Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

1.20 Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilising the credits.

---

Mar 31, 2010

A) The accounts are prepared, based on historical cost and on the asis of a going concern with revenues considered and. expenses accounted wherever possible on their accrual, as modified by revaluation of certain assets, viz Land and Leasehold land, Factory Building," Hotel Building and Plant & Machinery.

b) Fixed Assets:

Land & Leasehold Land, Factory Building, Hotel Building and Plant and Machinery have been shown as revalued by the approved valuer on 31.03.2002 thereby increase in such assets in gross block Is by Rs. 19,56,71,129. Other Fixed Assets are recorded at post of acquisition, net of modvat credit or cost of construction including directly attributable cost as reduced by accumulated depreciation. Land on Lease basis is included in the schedule of Fixed Assets.

c) Depreciation:

i) Depreciation has been charged on the Straight Line Method in accordance with the rates

specified under Schedule XIV to the Companies Act, 1956. i i) Depreciation on assets added during the year has been provided on pro-rata basis. iii) Depreciation on revaluation amount of fixed assets is adjusted by transferring the

equivalent amount from Revaluation Reserve Account.

d) Inventory Valuation:

i) Raw Material, Work in Process

Stores & Spares : At Cost

ii) Food & Beverages : At Cost

iii) Finished Goods & : At Cost or Realisable Consignment Goods Value whichever is Lower

iv) Wastage & Scrap : At Market Realisable Value

e) Sales:

Sales are accounted net of returns and discounts and is accounted at the point of despatch of material to customers. In the Hotel Division Receipts from Room Rent are net of discount but inclusive of luxury tax and service charge. In case of Food and Beverage sales are accounted net of complimentary and discount but inclusive of service charge and VAT.

f) Retirement Benefits:

Gratuity is accounted for on actual payment basis. No provision for gratuity on actuarial basis is made and hence its effect on profit or loss cannot be ascertained. Retirement Benefit in the form of Provident Fund and Pension Schemes are accounted for on accrual basis and charged to Profit & Loss Account of the year. Leave Encashable on retirement is being accounted for as and when it is due for payment.

g) Investment: Investments are stated at cost

h) Taxes On Income

Deferred Tax:

Deferred tax calculated at the rates and laws that have been enacted or substantially enacted as of the balance sheet date is recognized on timing differences that originate in one period and are capable of reversal in one or more subsequent period. Deferred Tax assets, subject to consideration of prudence are recognized and carried forward only to the extent that they can be realized.

Minimum Alternate Tax (MAT)

Minimum Alternate Tax (MAT) paid in accordance to the tax laws, which give rise to the future economic benefits in the form of adjustment of future income tax liability, is considered as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Company and the asset can be measured reliably.