Accounting Policies of Lynx Machinery & Commercials Ltd. Company

Mar 31, 2024

2 :Summary of significant accounting policies

2.1 Basis of preparation

2.1.1Compliance with Indian Accounting Standards (Ind AS)

The financial statements are prepared on accrual basis of accounting and comply in all material
aspects withIndian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act,
2013 (The Act)[Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian
Accounting Standards)Amendment Rules, 2016] and other relevant provisions of the Act.

All assets and liabilities have been classified as current or non-current as per the Company''s normal
operatingcycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the
nature of products / services and the time between the acquisition of assets for processing and their
realisation in cash and cash equivalents,the Company has ascertained its operating cycle as 12
months for the purpose of current/non currentclassification of assets and liabilities.

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

2.1.2 Basis of Measurement

The financial statements have been prepared on accrual basis of accounting under historical cost
conventions,except for certain financial assets and financial liabilities which are measured at fair
value as explained in the accounting policies below.

The methods used to measure fair values are discussed in Note 2.13

2.1.3 Functional and Presentation Currency

These financial statements are presented in Indian Rupees (INR), which is the Company''s functional
currency.All financial information presented in INR has been rounded off to the nearest hundred
Rupees forthe Company.

2.1.4 Use of estimates and management judgements

The preparation of financial statements in conformity with Ind AS requires management to make
judgements,estimates and assumptions that may impact the application of accounting policies and
the reported value ofassets, liabilities, income, expenses and related disclosures including contingent
assets and liabilities at theBalance Sheet date. The estimates and management''s judgements are
based on previous experience andother factors considered reasonable and prudent in the
circumstances. Actual results may differ from theseestimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimatesare recognised in the period in which the estimates are revised.In order to enhance
understanding of the financial statements, information about significant areas of
estimation,uncertainty and critical judgements in applying accounting policies that may have the
most significant effect onthe amount recognised in the financial statements are included in the
following notes:

a) Useful life of Property, Plant and Equipment

The estimated useful life of property, plant and equipment is based on a number of factors including
the effectsof obsolescence, demand, completion and other economic factors (such as the stability of
the industry andknown technological advancement) and the level of maintenance expenditure
required to obtain the expectedfuture cash flows from the assets.

b) Recoverable amount of property, plant and equipment and capital work in progress

The recoverable amount of property, plant and equipment and capital work in progress is based on
estimatesand assumptions. Any changes in these assumptions may have a material impact on the
measurement of therecoverable amount resulting in impairment.

c) Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in
accordancewith Ind AS 37, ''Provisions, Contingent Liabilities and Contingent Assets''. The evaluation
of the likelihood ofthe contingent events has been made on the basis of best judgement by
management regarding probableoutflow of economic resources. Such estimation can change due to
unforeseeable developments.

d) Impairment of the Trade Receivables

Considering the historical credit loss experience for trade receivables, the Company applies the
simplifiedapproach of recognising the expected losses from initial recognition of the receivables on
case to case basisas provision for impairment.

2.2 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the
Chief OperatingDecision Maker (CODM). The Board of Directors is collectively the Company''s CODM.
Based on the synergies,risks and returns associated with business operations and in terms of Ind AS
108, the Board of Directors of theCompany has assessed that the Company is predominantly engaged
in the business of a single reportable segmentof warehousing during the year. Therefore disclosure
requirements of Ind AS 108 on Operating Segments are notapplicable to the Company.

2.3 Revenue Recognition and Other Income

Revenue is recognised when significant risks and rewards of ownership have been transferred to the
buyers and tothe extent it is probable that the economic benefits will flow to the Company and the
revenue can be reliablymeasured, regardless of when the payment is being made. Revenue is
measured at the fair value of the considerationreceived or receivable, taking into account
contractually defined terms of payment and excluding taxes or dutiescollected on behalf of the
government.

2.3.1 Rental Income

Rental income arising from operating leases is accounted for on a straight-line basisover the lease
terms and is included in revenue in the statement of profit and loss due to its operating nature.

2.3.2 Interest

Interest Income is recognised using the effective interest rate method. The effective interest rate is
the ratethat exactly discounts estimated future cash receipts through the expected life of the
financial asset to thegross carrying amount of a financial asset. When calculating the effective
interest rate, the company estimatesthe expected cash flows by considering all the contractual terms
of the financial instrument but does notconsider the expected credit losses.

2.3.3 Income Taxes

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

The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted at the endof the reporting period. Management periodically evaluates positions taken in tax
returns with respect to situationsin which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on thebasis of amounts expected to be paid to the tax
authorities. Additional income taxes that arise from the distributionof dividends are recognised at the
same time the liability to pay the related dividend is recognised.

Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the taxbases of assets and liabilities and their carrying amounts in the financial statements.
Deferred income tax is notaccounted for if it arises from initial recognition of an asset or liability in a
transaction other than a business combinationthat at the time of the transaction affects neither
accounting profit nor taxable profit (tax loss). Deferred income taxis determined using tax rates (and
laws) that have been enacted or substantially enacted by the end of the reportingperiod and are
expected to apply when the related deferred income tax asset is realised or the deferred income
taxliability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses
only if it isprobable that future taxable amounts will be available to utilise those temporary
differences and losses.Deferred tax assets and liabilities are offset when there is a legally enforceable
right to offset current tax assets andliabilities and when the deferred tax balances relate to the same
taxation authority. Current tax assets and taxliabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on a netbasis, or to realise the asset and settle
the liability simultaneously.

Current and deferred tax is recognised in profit and loss, except to the extent that it relates to items
recognised inother comprehensive income or directly in equity. In this case, the tax is also recognised
in other comprehensiveincome or directly in equity, respectively.

It may be noted that deferred tax asset arising as a result of this policy has not been recognised as
there is no virtual certainty that sufficient future taxable income will be available against which
deferred tax assets can be realised.

2.4 Impairment of non financial assets other than inventories

a) The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired.If any Indication exists, or when annual impairment testing for an asset is required, the
Company estimates theasset''s recoverable amount. An asset''s recoverable amount is the higher of an
asset''s cash-generating unit''s(CGU) fair value less costs of disposal and its value in use. Recoverable
amount is determined for an individualasset, unless the asset does not generate cash inflows that are
largely independent of those from other assetsof the Company. When the carrying amount of an
asset or CGU exceeds its recoverable amount, the asset isconsidered impaired and is written down to
its recoverable amount. The resulting impairment loss is recognisedin the Statement of Profit and
Loss.

b) 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 theasset. In determining fair value less costs of disposal, recent market
transactions are taken into account. If nosuch transactions can be identified, an appropriate valuation
model is used. These calculations are corroboratedby valuation multiples, quoted share prices for
publicly traded companies or other available fair value indicators.

2.5 Statement of Cash Flows

a) Cash and Cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes
cash inhand, deposits held at call with financial institutions, other short-term, highly liquid
investments with originalmaturities of three months or less that are readily convertible to known
amounts of cash and which are subjectto an insignificant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown under borrowingsin current liabilities in the Balance Sheet.

b) Statement of Cash Flows is prepared in accordance with the indirect method prescribed in Ind AS-
7" Statementof Cash Flow"

2.6 Trade receivables

Trade receivables are recognised initially at transaction price and subsequently measured at
amortised cost lessprovision for impairment.

2.7 Financial Assets other than Investments in subsidiaries and joint venture
2.7.1Classification

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

• those to be measured subsequently at fair value (either through other comprehensive income, or
throughprofit and loss), and

• those measured at amortised cost

The classification depends on the company''s business model for managing the financial assets and
thecontractual terms of cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit and loss or
othercomprehensive income. For investments in debt instruments, this will depend on the business
model in whichthe investment is held. For investments in equity instruments, this will depend on
whether the Company hasmade an irrevocable election at the time of initial recognition to account
for the equity investment at fair valuethrough other comprehensive income.

The Company reclassifies debt instruments when and only when its business model for managing
thoseassets changes.

2.7.2 Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of
financialasset not at fair value through profit and loss, transaction costs that are directly attributable
to the acquisitionof the financial asset. Transaction costs of financial assets carried at fair value
through profit and loss areexpensed in profit and loss.

Debt Instruments

Subsequent measurement of debt instruments depends on the Company''s business model for
managing theasset and the cash flow characteristics of the asset. There are three measurement
categories into which theCompany classifies its Debt instruments.

• Amortized Cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely
paymentsof principal and interest are measured at amortised cost. A gain or loss on a debt
investment that is subsequentlymeasured at amortised cost and is not part of a hedging relationship
is recognised in profit and loss when theasset is derecognised or impaired. Interest income from
these financial assets is included in finance incomeusing the effective interest rate method.

• Fair Value through Other Comprehensive Income (FVOCI)

Assets that are held for collection of contractual cash flows and for selling the financial assets, where
theassets'' cash flows represent solely payments of principal and interest, are measured at FVOCI.
Movements inthe carrying amount are taken through OCI, except for the recognition of impairment
gains or losses, interestrevenue and foreign exchange gains and losses which are recognised in profit
and loss. When the financialasset is derecognised, the cumulative gain or loss previously recognised
in OCI is reclassified from equity toprofit and loss and recognised in other gains/(losses). Interest
income from these financial assets is includedin other income using the effective interest rate
method.

• Fair Value through profit and loss

Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through
profit andloss. A gain or loss on a debt investment that is subsequently measured at fair value
through profit and lossand is not part of a hedging relationship is recognised in profit and loss and
presented net in the statement ofprofit and loss within other gains/(losses) in the period in which it
arises. Interest income from these financialassets is included in other income.

Equity instruments

The Company subsequently measures all equity investments at fair value. Where the Company''s
managementhas elected to present fair value gains and losses on equity investments in other
comprehensive income,there is no subsequent reclassification of fair value gains and losses to profit
and loss. Dividends from suchinvestments are recognised in profit and loss as other income when the
Company''s right to receive paymentsis established.

Changes in the fair value of financial assets at fair value through profit and loss are recognised in
other gain/(losses) in the statement of profit and loss. Impairment losses (and reversal of impairment
losses) on equityinvestments measured at FVOCI are not reported separately from other changes in
fair value.

2.7.3 Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its
assetscarried at amortised cost and FVOCI debt instruments. The impairment methodology applied
depends onwhether there has been a significant increase in credit risk. Note 2.26 details how the
Company determineswhether there has been a significant increase in credit risk.

For trade receivables only, the Company applies the simplified approach of recognising the expected
lossesfrom initial recognition of the receivables on case to case basis as provision for impairment.

2.7.4 Derecognition of financial assets

A financial asset is derecognised only when

• The Company has transferred the rights to receive cash flows from the financial asset or

• Retains the contractual rights to receive the cash flows of the financial asset, but assumes a
contractualobligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred
substantially allrisks and rewards of ownership of the financial asset. In such cases, the financial asset
is derecognised.Where the entity has not transferred substantially all risks and rewards of ownership
of the financial asset, thefinancial asset is not derecognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and
rewards ofownership of the financial asset, the financial asset is derecognised if the Company has not
retained control ofthe financial asset. Where the Company retains control of the financial asset, the
asset is continued to berecognised to the extent of continuing involvement in the financial asset.

2.7.5 Offsetting financial instruments

Financial Assets and liabilities are offset and the net amount is reported in the Balance Sheet where
there is alegally enforceable right to offset the recognised amounts and there is an intention to settle
on a net basis or realisethe asset and settle the liability simultaneously. The legally enforceable right
must not be contingent on futureevents and must be enforceable in the normal course of business
and in the event of default, insolvency or bankruptcyof the Company or the counterparty.

2.8 Property, Plant and Equipment

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated
at historicalcost less depreciation. Historical cost includes expenditure that is directly attributable to
the acquisition of the items.Subsequent costs are included in the asset''s carrying amount or
recognised as a separate asset, as appropriate,only when it is probable that future economic benefits
associated with the item will flow to the Company and the costof the item can be measured reliably.
The carrying amount of any component accounted for as a separate asset isderecognised when
replaced. All other repairs and maintenance are charged to profit and loss during the reportingperiod
in which they are incurred.

Transition to Ind AS

Property, Plant and Equipment upto 31st March, 2016 were carried in the Balance Sheet in
accordance with IndianGAAP. The Company has elected to avail the exemption granted by Ind AS 101
"First Time adoption of Ind AS" toregard those amounts as ''Deemed cost'' at the date of transition to
Ind AS (i.e. as on 1st April, 2016).

Stand-by equipments and servicing equipments which meet the recognition criteria of property, plant
and equipmentare capitalised.Spare parts (procured along with Plant & Machinery) or subsequently
which meet the recognition criteria arecapitalised. Other spare parts are treated as "Stores & Spares"
forming part of inventory.

Depreciation methods, estimated useful lives and residual value

Depreciation is calculated using the straight-line method to allocate their cost, net of their residual
values on thebasis of useful lives prescribed in Schedule II to the Companies Act, 2013.

Leasehold land is amortised on a straight line basis over the period of lease.

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

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These
are included inprofit and loss within other gains/ (losses).

2.9 Investment Properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not
occupied by theCompany, is classified as investment property. Investment property is measured
initially at its cost, including relatedtransaction costs and where applicable, borrowing costs.
Subsequent expenditure is capitalised to the asset''scarrying amount only when it is probable that the
future economic benefits associated with the expenditure will flowto the Company and the cost of
the item can be measured reliably. All other repairs and maintenance costs areexpensed when
incurred. When part of an investment property is replaced, the carrying amount of the replaced part
is derecognised.

Transition to Ind AS

Investment property upto 31st March, 2016 were carried in the Balance Sheet in accordance with
Indian GAAP. TheCompany has elected to avail the exemption granted by Ind AS 101 "First time
adoption of Ind AS" to regard thoseamounts as deemed cost at the date of transition to Ind AS.

2.10 Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end
of financialyear which are unpaid. The amounts are unsecured and are usually paid within 30 days of
recognition. Trade andother payables are presented as current liabilities unless payment is not due
within 12 months after the reportingperiod. They are recognised initially at their fair
value/transaction value and subsequently measured at amortisedcost using the effective interest
method.

2.11 Borrowings Costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of aqualifying asset are capitalised during the period of time that is required to complete
and prepare the asset for itsintended use or sale. Qualifying assets are assets that necessarily take a
substantial period of time to get ready fortheir intended use or sale.Investment income earned on
the temporary investment of specific borrowings pending their expenditure on qualifyingassets is
deducted from the borrowing costs eligible for capitalisation.Other borrowing costs are expensed in
the period in which they are incurred.

2.12 Financial liabilities

Financial liabilities of the Company are contractual obligation to deliver cash or another financial
asset to anotherentity or to exchange financial assets or financial liabilities with another entity under
conditions that are potentiallyunfavorable to the Company.

The Company''s financial liabilities include loans & borrowings, trade and other payables.

a) Classification, initial recognition and measurement

Financial liabilities are recognised initially at fair value minus transactions costs that are directly
attributableand subsequently measured at amortised cost. Financial liabilities are classified as
subsequently measured atamortised cost. Any difference between the proceeds (net of transaction
costs) and the fair value at initialrecognition is recognised in the Statement of Profit and Loss or in the
carrying amount of an asset if anotherstandard permits such inclusion, over the period of the
borrowings using the effective rate of interest.

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

b) Subsequent measurement

After initial recognition, financial liabilities are subsequently measured at amortised cost using the
EIR method.Gains and losses are recognised in the Statement of Profit and Loss or in the carrying
amount of an asset ifanother standard permits such inclusion, when the liabilities are derecognised
as well through the EIRamortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees
or coststhat are an integral part of the EIR. The EIR amortisation is included as finance costs in the
Statement of Profitand Loss.

c) Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expired.When an existing financial liability is replaced by another from the same lender on
substantially differentterms, or the terms of an existing liability are substantially modified, such an
exchange or modification istreated as the derecognition of the original liability and the recognition of
a new liability. The difference in therespective carrying amounts is recognised in the Statement of
Profit and Loss.

2.13 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
transactionbetween market participants at the measurement date. Normally at initial recognition,
the transaction price is thebest evidence of fair value.

However, when the Company determines that transaction price does not represent the fair value, it
uses inter-aliavaluation techniques that are appropriate in the circumstances and for which sufficient
data are available to measurefair value, maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.

All financial assets and financial liabilities for which fair value is measured or disclosed in the financial
statementsare categorised within the fair value hierarchy. This categorisation is based on the lowest
level input that is significantto the fair value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurementis directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurementis unobservable.

For financial assets and financial liabilities that are recognised at fair value on a recurring basis, the
Companydetermines whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation at theend of each reporting period.

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Mar 31, 2015

I. Recognition of Income and Expenditure-

Revenue / Income and Costs / Expenditure are generally accounted on accrual basis as and when they are earned or incurred except as otherwise stated in the Accounts.

II. Fixed Assets-

Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized until such assets are ready for use. Capital work-in-progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date.

III. Method of Depreciation-

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets as prescribed under Part C of Schedule II of the Companies Act 2013. Depreciation for assets purchased / sold during a period is proportionately charged.

IV. Valuation of In ventories-

Stocks of quoted equity shares are valued at cost or Market value whichever is lower and where the quotations are not available, at cost. Unquoted shares are valued at cost.

V. Investments-

Investments in Shares & Securities are all long term and are valued at cost. Temporary diminution in the value of Investments meant to be held for long period of time is not recognised.

VI. Taxes on income-

Tax expense comprise both current tax and deferred tax at the applicable enacted rates.

Current tax represents the amount of income tax payable / recoverable in respect of the taxable income/loss for the reporting period. Deferred tax represents the effect of timing differences be- tween taxable and accounting income for the reporting period that originate in, one period and are capable of reversal in one or more subsequent periods.

VII. Retirement Benefits-

The Company contributes to Provident Fund administered by Government and such contributions are charged to revenue. The company's liability in respect of gratuity has been accounted for and is funded with Life Insurance Corporation of India under its Group Gratuity Scheme.

VIII. Contingent Liabilities-

Contingent Liabilities are generally not provided for in the accounts and are separately shown by way of Note.

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Mar 31, 2014

I. Recognition of Income and Expenditure -

Revenue / Income and Costs / Expenditure are generally accounted on accrual basis as and when they are earned or incurred except as otherwise stated in the Accounts.

II. Fixed Assets -

Fixed Assets are stated at cost less accumulated depreciation.

III. Method of Depreciation -

Depreciation on all assets other than Plant & Machinery & Others (being not in use) is provided for on the straight line method in accordance with the provisions of Section 205(2)(b) as per the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions or on disposal of assets is calculated pro-rata from the month of such additions or upto the month of such disposal, as the case may be.

IV. Valuation of Inventories -

Stocks of quoted equity shares are valued at cost or Market value whichever is lower and where the quotations are not available, at cost. Unquoted shares are valued at cost.

V. Investments-

Investments in Shares & Securities are all long term and are valued at cost. Temporary diminution in the value of Investments meant to be held for long period of time is not recognised.

VI Taxes on income -

Tax expense comprise both current tax and deferred tax at the applicable enacted rates.

Current tax represents the amount of income tax payable / recoverable in respect of the taxable income/loss for the reporting period. Deferred tax represents the effect of timing differences between taxable and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

VII. Retirement Benefits -

The Company contributes to Provident Fund administered by Government and such contributions are charged to revenue. The company''s liability in respect of gratuity has been accounted for and is funded with Life Insurance Corporation of India under its Group Gratuity Scheme.

VIII. Contingent Liabilities -

Contingent Liabilities are generally not provided for in the accounts and are separately shown by way of Note.

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Mar 31, 2013

I. Recognition of Income and Expenditure -

Revenue / Income and Costs / Expenditure are generally accounted on accrual basis as and when they are earned or incurred except as otherwise stated in the Accounts.

II Fixed Assets -

Fixed Assets are stated at cost less accumulated depreciation.

III Method of Depreciation -

Depreciation on all assets other than Plant & Machinery & Others (being not in use) is provided for on the straight line method in accordance with the provisions of Section 205(2)(b) as perthe rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions oron disposal of assets is calculated pro-rata from the month of such additions or upto the month of such disposal, as the case may be.

IV. Valuation of Inventories -

Stocks of quoted equity shares are valued at cost or Market value whichever is lower and where the quotations are not available, at cost. Unquoted shares are valued at cost.

V Investments -

Investments in Shares & Securities are all long term and are valued at cost. Temporary diminution in the value of Investments meant to be held for long period of time is not recognised.

VI. Taxes on income -

Tax expense comprise both current tax and deferred tax at the applicable enacted rates.

Current tax represents the amount of income tax payable / recoverable in respect of the taxable income/loss for the reporting period. Deferred tax represents the effect of timing differences between taxable and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

VII. Retirement Benefits -

The Company contributes to Provident Fund administered by Government and such contributions are charged to revenue. The company''s liabilities in respect of gratuity have been accounted for and is funded with Life Insurance Corporation of India under its Group Gratuity Scheme.

VIII. Contingent Liabilities- Contingent Liabilities are generally not provided for in the accounts and are separately shown by way of Note.

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Mar 31, 2012

I Recognition of Income and Expenditure - ,

Revenue / Income and Costs / Expenditure are generally accounted on accrual basis as and when they are earned or incurred except as otherwise stated in the Accounts.

II Fixed Assets -

Fixed Assets are stated at cost less accumulated depreciation.

III. Method of Depreciation -

Depreciation on all assets other than Plant & Machinery & Others (being not in use) is provided for on the straight line method in accordance with the provisions of Section 205(2)(b) as per the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions or on disposal of assets is calculated pro-rata from the month of such additions or upto the month of such disposal, as the case may be.

IV. Valuation of Inventories -

Stocks of quoted equity shares are valued at cost or Market value whichever is lower and where the quotations are not available, at cost. Unquoted shares are valued at cost.

V. Investments -

Investments in Shares & Securities are all long term and are valued at cost. Temporary diminution in the value of Investments meant to be held for long period of time is not recognised.

VI. Taxes on income -

Tax expense comprise both current tax and deferred tax at the applicable enacted rates.

Current tax represents the amount of income tax payable / recoverable in respect of the taxable income/loss for the reporting period. Deferred tax represents the effect of timing differences between taxable and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

VII. Retirement Benefits -

The Company contributes to Provident Fund administered by Government and such contributions are charged to revenue. The company's liabilities in respect of gratuity has been accounted for and is funded with Life Insurance Corporation of India under its Group Gratuity Scheme.

VIII. Contingent Liabilities -

Contingent Liabilities are generally not provided for in the accounts and are separately shown by way of Note.

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Mar 31, 2010

I. Recognition of Income and Expenditure -

Revenue / Income and Costs / Expenditure are generally accounted on accrual basis as and when they are earned or incurred except as otherwise stated in the Accounts.

II. Fixed Assets -

Fixed Assets are stated at cost less accumulated depreciation.

III. Method of Depreciation -

Depreciation on all assets other than Plant & Machinery & Others (being not in use) is provided for on the straight line method in accordance with the provisions of Section 205(2)(b) as per the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions or on disposal of assets is calculated pro-rata from the month of such additions or upto the month of such disposal, as the case may be.

IV. Valuation of Inventories -

Stocks of quoted equity shares are valued at cost or Market value whichever is lower and where the quotations are not available, at cost. Unquoted shares are valued at cost.

V. Investments -

Investments in Shares & Securities are all long term and are valued at cost. Temporary diminution in the value of Investments meant to be held for long period of time is not recognised.

VI. Taxes on income -

Tax expense comprise both current tax and deferred tax at the applicable enacted rates.

Current tax represents the amount of income tax payable / recoverable in respect of the taxable income/loss for the reporting period. Deferred tax represents the effect of timing differences between taxable and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

VII. Retirement Benefits -

The Company contributes to Provident Fund administered by Government and such contributions are charged to revenue. The company’s liabilities in respect of gratuity have been accounted for and is funded with Life Insurance Corporation of India under its Group Gratuity Scheme.

VIII. Contingent Liabilities -

Contingent Liabilities are generally not provided for in the accounts and are separately shown by way of Note.