Accounting Policies of Mauria Udyog Ltd. Company

Mar 31, 2024

2 Summary of material accounting policies

(i) Revenue

Effective April 1, 2018, the Company has applied Ind AS 115 which establishes a comprehensive framework for determining whether, how much and when revenue is to be recognized. The Standard requires apportioning revenue earned from contracts to individual promises, or performance obligations, on a relative stand-alone selling price basis, using a five-step model. Ind AS 115 replaces Ind AS 18 Revenue and Ind AS 11 Construction Contract. The Company has adopted Ind AS 115 using the cumulative effect method

Revenue from sate of goods

Revenue is recognised upon transfer of control of promised product or services to customer in an amount that reflect the consideration which the Company expects to receive in exchange for those product or services at the fair value of the consideration received or receivable, which is generally the transaction price, net of any taxes/duties and discounts.

The Company satisfies a performance obligation and recognises revenue overtime, if one of the following criteria is met:

a. The customer simultaneously receives and consumes the benefits provided by the Company''s performance as the Company performs; or

b. The Company''s performance creates or enhances an asset that the customer controls as the asse‘ is created or enhanced; or

c. The Company''s performance does not create an asset with an alternative use to the Company and an entity has an enforceable right to payment for performance completed to date

For performance obligations where one of the above conditions are not met, revenue is recognised at the point in time at which the performance obligation is satisfied.

Revenue from sale of products is recognised at a time on which the performance obligation is satisfied.

Recognition in case of local sales is generally recognised on the dispatch of goods. Revenue from export sales is generally recognised on the basis of the dates of On Board Bill of Lading''. The Company recognises provision for sales return, based on the historical results, measured on net basis of the margin of the sale.

Other operating income

Export benefits are recognised in the year of export when right to receive the benefit is established and conditions attached to the benefits are satisfied.

(ii) Other income Rental income

Rental income from investment property is recognised as part of other income in profit or loss on a straight-line basis over the term of the lease except where the rentals are structured to increase in line with expected general inflation. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease.

interest income

Interest income on time deposits and inter corporate loans is recognised using the effective interest method

The ''effective interest rate'' is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to the gross carrying amount of the financial asset.

Commission income

Commission income are recognised in Statement of Profit or Loss only when the relevant services have been rendered.

(iii) Employee Benefits Shortterm_employeebenefits:

Short term employee benefit obligations are measured on an undiscounted basis and are expenses off as the related services are provided. Benefits such as salaries, wages, and bonus etc. are recognised in the statement of profit and loss in the year in which the employee renders the related service. The liabilities are presented as current employee benefit obligation in the balance sheet

Defined contribution plan: Provident fund

All employees of the Company are entitled to receive benefits under the Provident Fund, which is a defined contribution plan. Both the employee and the employer make monthly contributions to the plan at a predetermined rate as per the provisions of The Employees Provident Fund and Miscellaneous Provisions Act, 1952. These contributions are made to the fund administered and managed by the Government of India. The Company has no further obligations under the plan beyond its monthly contributions. Obligation for contribution to defined contribution plan are recognised as an employee benefit expense in statement of profit and loss in the period during which the related services are rendered by the employees.

Defined Benefit Plan: Gratuity

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.

The Company provides for retirement benefits in the form of Gratuity, which provides for lump sum payments to vested employees on retirement, death while in service or on termination of employment in an amount equivalent to 15 days basic salary for each completed year of service. Vesting occurs upon completion of five years of service. Benefits payable to eligible employees of the Company with respect to gratuity is accounted for on the basis of an actuarial valuation as at the balance sheet date.

The present value of such obligation is determined by the projected unit credit method and adjusted for past service cost and fair value of plan assets as at the balance sheet date through which the obligations are to be settled. The resultant actuarial gain or loss on change in present value of the defined benefit obligation or change in return of the plan assets is recognised as an income or expense in the other comprehensive income The Company''s obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The Company determines the net interest expense/(income) on the net defined benefit liability/fasset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability/(asset), taking into account any changes in the net defined benefit liability/tasset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in the statement of profit and loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service (''past service cost'' or ''past service gain’) or the gain or loss on curtailment is recognised immediately in the statement of profit and loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

The Plan assets of the Company are managed by Life Insurance Corporation of India through a trust created by the Company in terms of an insurance policy taken on fund obligations with respect to its gratuity plan

Benefits under the Company''s compensated absences scheme constitute other employee benefits. The liability in respect of compensated absences is provided on the basis of an actuarial valuation using the Projected Unit Credit Method done by an independent actuary as at the balance sheet date. Actuarial gain and losses are recognised immediately in other comprehensive income.

Civ) Foreign exchange transactions and translations

Initialrecog nition;

Foreign currency transactions are recorded in the reporting currency, by applying the foreign currency amount of exchange rate between the reporting currency and foreign currency at the date of transaction.

Conversion:

Foreign currency monetary assets and liabilities outstanding as at balance sheet date are restated/translated using the exchange rate prevailing at the reporting date. Non-monetary assets and liabilities which are measured in terms of historical cost denomination in foreign currency, are reported using the exchange rate at the date of transaction except for non-monetary item measured at fair value which are translated using the exchange rates at the date when fair value is determined.

Exchange difference arising on the settlement of monetary items or on restatement of the Company''s monetary items at rates different from those at which they initially recorded during the year or reported in previous financials statement (other than those relating to fixed assets and other long term monetary assets) are recognised as income or expenses in the year in which they arise.

Foreign operations:

The assets and liabilities of foreign operations are translated into INR the functional currency of the Company, at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into Company at the exchange rates at the dates of the transaction or an average rate if the average rate approximates the actual rate at the date of the transaction

(v) Tax expense

Income tax comprises current and deferred tax. It is recognised in the statement of profit and loss except to the extent that it relates to a business combination or to an item recognised directly in equity or in other comprehensive income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or -eceived after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting

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Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits. Deferred tax is not recognised for:

- temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss at the time of the transaction;

• taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can be used. The existence of unused tax losses is strong evidence that future taxable profit may not be available. Therefore, in case of a history of recent losses, the Company recognises a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against which such deferred tax asset can be realised. Deferred tax assets - unrecognised or recognised, are reviewed at each reporting date and are recognised/ reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will be realised

(vi) Inventories

Raw materials, stores and spares, work-in-progress, manufactured finished goods and traded goods are valued at lower of cost or net realisable value. The comparison of cost and net realisable value is made on an item by item basis. Cost comprises of all cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition. Cost is determined using first in, first out method of inventory valuation.

Loose tools and scrap are valued at estimated realisable value.

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

Provision of obsolescence on inventories is considered on the basis of management''s estimate based on demand and market of the inventories.

(vii) Leases As lessor

Leases for which the Company is a lessor classified as finance or operating lease. Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature

Cash and cash equivalents consist of cash, bank balances in current accounts and short term highly liquid investments that are readily convertible to cash with original maturities of three months or less at the time of purchase and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current financial liabilities in the balance sheet.

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Mar 31, 2018

SIGNIFICANT ITEMS OF ACCOUNTING POLICY

(a) Basis of Accounting:

The accounts of the Company are prepared under the historical cost convention, in accordance with applicable Accounting Standards, for recognition of income and expenditure mercantile systems of accounting is followed except in the case of interest on deposit with Post Office Saving Bank Account which are accounted for on cash basis.

(b) Use of Estimates

The preparation of financial statements in under Indian Accounting Standard (Ind AS) requires management to make estimates and assumptions that effect the reported statements of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenue and expenses during the year. The actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

(c) Property, Plant & Equipment:

Property, Plant & Equipment are stated at cost and / or revalued cost less depreciation. Since certain machineries were purchased in Court auction at a consolidated price, any sale out of the said machineries is adjusted in the plant & machinery account at sale value.

(d) Depreciation:

Depreciation has been provided on straight line method at the rates and basis prescribed in Schedule II to the Companies Act, 2013 to write off assets up to 95% of original cost.

(d) Investments:

Investments are stated at fair market values.

(e) Valuation of Inventories:

Notes:

(i) Cost is arrived on weighted average basis.

(ii) Cost of inventories comprises all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition.

(f) Foreign Currency Transactions:

(i) Transactions in foreign currency has been translated into Indian Rupees at the exchange rates prevailing at the date of transaction, any variation in receipt or payment has been adjusted in exchange gain/loss account, Assets and Liabilities outstanding as at year end have been converted into the Indian Rupees at year end exchange rates.

(ii) Non-monetary assets and liabilities are translated at the rate prevailing on the date of transaction. Net variation arising out of the said transactions are adjusted to the costs of the respective non-monetary assets or liabilities, in the case of fixed assets up to the date of installation.

(iii) The operations of foreign branches of company are integral in nature and financial statements of these branches are translated using the same principles and procedures as of its head office.

(iv) In case of forward exchange contract or other financial instruments, the gain or loss is computed by multiplying the foreign currency amount of the forward exchange contract by the difference between the forward rate available at the end of the year and the contracted forward rate.

(g) Expenditure During Construction Period

All expenses including interest incurred up to the date of installation are capitalised together with the other direct costs.

(h) Employees Benefits

1) Short Term Benefit

The Undiscounted amount of short term employees benefits expected to be paid in exchange for the services rendered by employees is recognizing the period when the employee rendered the service. This benefit includes salary, wages, short term compensatory absence and bonus.

2) Long Term Benefits

i. Defined Contribution Scheme (DCS) - such as Provident Fund and other Funds, Employees State Insurance Scheme are charged to the Profit and Loss Account as incurred as per the applicable Law/Rules.

ii. Defined benefit Scheme (DFS) - The present obligation, Company’s liability towards Gratuity and Leave Encashment, under such scheme is determined based on an actuarial valuation, using the Projected Unit Credit (PUC) method, carried out by an independent actuary. As per the requirement of “Accounting Standard 15 (Revised 2005) on Employees benefit. Actuarial gain and losses arising on such valuation are recognized immediately in the Profit and Loss account.

iii. In case of Funded Defined Benefit Scheme the fair value of the plan assets is reduced from the gross obligation under defined benefit scheme to recognize the obligation on net basis.

iv. Contributions are made to recognised Provident Fund, Employees State Insurance Scheme and are charged to revenue accounts. Gratuity, Benefit for encashment of leave salary is fully provided for on accrual basis.

(i) Revenue Recognition:

a. Sales are inclusive of excise duty/GST and net of discounts/returns. Exports sales include Goods Invoiced against confirmed orders and cleared from Excise and Custom Authorities, also goods exported as third party exporter and exchange fluctuations.

b. Export incentives in cash are recognized as income on Export being made. Benefits receivable under various schemes like Advance Licenses, Target Plus, Duty Free Import Authorisation etc. are recognized on certainty of their utilization and realization.

c. Other items of Revenue are recognized in accordance with the accounting standard (AS 9) accordingly, wherever there are uncertainties in the ascertainment/realization of income are recognised at the time of receipt of payment thereof.

(j) Tax on Income:

Tax expenses for the year comprises of current tax, deferred tax and fringe benefit tax:

a) Current tax is determined on the amount of tax payable in respect of taxable income for the period, using the applicable tax rates and tax laws in accordance with the provisions of Indian Income Tax Act, 1961.

b) Deferred tax is recognized, subject to consideration of prudence, on timing differences, being difference between taxable and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date.

c) Tax on Comprehensive Income has been calculated on the Income Tax rates applicable to the company.

(k) Impairment of assets

At each Balance Sheet date an assessment is made whether there is any indication of impairment of the carrying amount of the Company’s assets. The recoverable amount of such assets are estimated, if any indication exists, impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount.

(l) Contingent Liabilities and Provisions

Contingent Liabilities are disclosed by way of notes and are not recognized as an item of expense in the Profit and Loss Account. Contingent gains are not recognized. Provisions are recognized as liability only when they can be measured by using a substantial degree of estimation and where present obligations of the enterprise arise from past events the settlement of which is expected to result in an outflow of resources embodying economic benefits. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

(m) Cash and Cash Equivalent:

Cash and cash equivalent for the purpose of cash flow statements comprise cash at bank, cash in hand (including cheques in hand) and other short term investments with an original maturity of three months or less.

(n) Research and Development:

Research and development expenses not resulting in any tangible property, equipment are charged to revenue.

(o) Borrowing Costs:

Interest and other costs in connection with borrowing of funds to the extend related, attributed to the acquistion, construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing costs are charged to profit and loss account.

(p) Claims/income arising from price escalation and / or any other item of compensation and which are indeterminate are accounted when there is certainity of income accural.

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Mar 31, 2016

(a) Basis of Accounting:

The accounts of the Company are prepared under the historical cost convention in accordance with applicable Accounting Standards, have reorganization of income and expenditure mercantile system of accounting is followed except in the case of interest on deposit with Post Office Saving Bank Account which are accounted for on cash basis.

(b) use of Estimates

The preparation of financial statements in under generally accepted accounting principles (GAAP) require management to make estimates and assumptions that effect the reported statements of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and the reported amounts of revenue and expenses during the year. The actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

© Fixed Assets :

Fixed Assets are stated at cost and/ or resolved cost less depreciation. Since certain machineries were purchased in consolidated price, any sale out of the said machineries is adjusted in the plant & machinery account at sale value.

(d) Depreciation:

Depreciation has been provided on straight line method at the rates and basis prescribed in Schedule II to the Companies Act, 2013 to write off assets up to 95% of original cost.

(d) Investments:

Investments are classified as Long Term & Short Term Investments. All long term Investments have been valued at cost. The market value of quoted investments in certain shares have eroded being temporary in nature therefore no provision has been made in respect of unquoted investments for decrease in estimated realizable value on the basis of available information. Short term investments have been valued at cost or net realizable value whichever is lower.

(f) Foreign Currency Transactions:

(i) Transactions is foreign currency has been translated into Indian Rupees of the exchange rates prevailing at the date of transaction, any variation in receipt or payment has been adjusted in exchange gain/loss accounts. Assets and liabilities outstanding as at year end have been covered into Indian Rupees year end exchange rates.

(ii) Non monetary assets and liabilities are translated of the rate prevailing on the date of transaction. Net venation arising out of the said transactions are adjusted to the costs of the respective non-monetary assets or liabilities, in the case of fixed assets up to the date of information.

(iii) The operations of foreign branches are integrate in nature and financial statements of these branches are translated using the same principles and procedures as of its office.

(iv) In case of forward exchange contact or other financial instruments the gain or loss is computed by multiplying the foreign currency amount of the forward exchange contract by the difference between the forward rate available of the end of the year and the contracted forward rate.

(g) Excise Duty:

Liability for Excise Duty in respect of finished goods and scrap cleaned from factory premises for sale is occurred for at the time of clearance from the factory premises. The policy has however no impact on operating results and net current assets of the Company.

(h) Expenditure During Construction Period

All expenses including interest incurred up to the date of institution are capitalized together with the other direct costs.

(i) Employees Benefits

1) Short Term Benefit

The undiscounted amount of short term employees benefits expected to be paid in exchange for the services rendered by employees is recognizing the period when the employee rendered the service. This benefits includes salary, wages, short term compensatory absence and bonus.

2) Long Term Benefits

i. Defined Scheme (DFS) – such as Provident Fund and other funds. Employees State Insurance Scheme are charged to the profit and loss Accounts as incurred as per the applicable Law/Rules.

ii. Defined benefit Scheme (DFS) – The present obligation Company’s liability towards Gratuity and Leave Encashment under such scheme is determined based on actuarial valuation using the Projected unit Credit (PUC) method, carried out by on independent actuary. As per the requirements of “ Accounting Standard 15 (Revised 2005) on Employees benefit. Actuarial gain and losses arising on such valuation are recognized immediately in the Profit and Loss account.

iii. In case of Funded Defined Benefits Scheme the fair value of the plan assets is reduced from the gross obligation under defined benefits Scheme to recognize the obligation on net basis.

iv. Contribution are made to recognized Provident Fund, Employees State Insurance Scheme and are charged to revenue accounts. Gratuity, Benefits for encashment of leave salary is fully provided for ion accrual basis.

(j) Revenue Recognition:

a. Sale are inclusive of excise duty and net of discounts/ returns. Exports include Goods involved against Confirmed orders and cleared from Excise and Custom Authorities, also goods exported as third party exporter and exchange fluctuation.

b. Export incentives in cash are recognized as income on Export Being made. Benefits receivable under various schemes like Advances Licenses, Target Plus, Duty Free Import Authorization etc. are recognized on certainty of their utilization and realization.

c. Other items of Revenue are recognized in accordance with the accounting standards (AS 9) accordingly wherever there are uncertainties in the ascertainment /realization of income are recognized of the time of receipt of payment thereof.

(k) Tax on Income:

Tax expenses for the year comprises of current tax, differed tax and firing benefit tax:

a) Current tax is determined on the amount of tax payable in respect of taxable income for the period using the applicable tax rates and tax laws in accordance with the provisions of Indian Income Tax Act, 1961.

b) Deferred Tax is recognized subject to consideration of prudence on timing differences being difference between taxable and accounting income /expenditure that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is accounted for using the tax rates and laws that have been enacted of substantively enacted as on the Balance Sheet date.

(l) Important of assets

At each Balance Sheet date an assessment is made whether there is any indication of impairment of the carrying amount of the Company’s assets. The recoverable amount of such assets are estimated, if any indication exists impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount.

(m) Contingent Liabilities and Provisions

Contingent Liabilities are disclosed by way of notes and are not recognized as an item of expenses in the Profit and loss Account. Contingent gains are not recognized. Provisions are recognized as liability only when they can be measured by using a substantial degree of estimation and where present obligations of the enterprise arise from post event the settlement of which is expected to result in on outflow of recourses embodying economic benefits. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

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Mar 31, 2014

(a) Basis of Accounting:

The accounts of the Company are prepared under the historical cost convention, in accordance with applicable Accounting Standards, for recognition of income and expenditure mercantile systems of accounting is followed except in the case of interest on deposit with Post Office Saving Bank Account which are accounted for on cash basis.

(b) Use of Estimates

The preparation of financial statements in under generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that effect the reported statements of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenue and expenses during the year. The actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

(c) Fixed Assets:

Fixed Assets are stated at cost and / or revalued cost less depreciation. Since certain machineries were purchased in Court auction at a consolidated price, any sale out of the said machineries is adjusted in the plant & machinery account at sale value.

(d) Depreciation:

Depreciation has been provided on straight line method on assets installed up to 30th June, 1987 at the rates corresponding to rates applicable under the Income Tax Rules in force at the time of acquisition /Installation of respective assets pursuant to circular No. 1/86 dated 21st May, 1986 issued by the Department of Company affairs in accordance with provisions of Section 205(2) (b) of the Companies Act, 1956 and on addition thereafter at the rates, basis and manner as specified in Schedule XIV to the Companies Act, 1956.

(d) Investments:

Investments are classified as Long Term & Short Term Investments . All long-term investments have been valued at cost. The market value of quoted investments in certain shares have eroded, being temporary in nature, therefore, no provision has been made in respect of unquoted investments for decrease in estimated realisable value on the basis of available information. Short-term investments have been valued at cost or net realisable value whichever is lower.

(e) Valuation of Inventories:

RAW MATERIALS, STORES & SPARES, LOWER OF COST OR NET WORK IN PROCESS, FINISHED GOODS REALISABLE VALUE

LOOSE TOOLS AT ESTIMATED VALUE

SCRAP AT ESTIMATED REALISABLE VALUE

Notes:

(i) Cost is arrived on weighted average basis.

(ii) Cost of inventories comprises all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition.

(f) Foreign Currency Transactions:

(i) Transactions in foreign currency has been translated into Indian Rupees at the exchange rates prevailing at the date of transaction, any variation in receipt or payment has been adjusted in exchange gain/loss account, Assets and Liabilities outstanding as at year end have been converted into the Indian Rupees at year end exchange rates.

(ii) Non-monetary assets and liabilities are translated at the rate prevailing on the date of transaction. Net variation arising out of the said transactions are adjusted to the costs of the respective non-monetary assets or liabilities, in the case of fixed assets up to the date of installation.

(iii) The operations of foreign branches of company are integral in nature and financial statements of these branches are translated using the same principles and procedures as of its head office.

(iv) In case of forward exchange contract or other financial instruments, the gain or loss is computed by multiplying the foreign currency amount of the forward exchange contract by the difference between the forward rate available at the end of the year and the contracted forward rate.

(g) Excise Duty:

Liability for Excise Duty in respect of finished goods and scrap not cleared from factory premises for safe is accounted for at the time of clearance from the factory premises. The policy has however, no impact on operating results and net current assets of the Company.

(h) Expenditure During Construction Period

All expenses including interest incurred up to the date of installation are capitalised together with the other direct costs.

(i) Employees Benefits

1) Short Term Benefit

The Undiscounted amount of short term employees benefits expected to be paid in exchange for the services rendered by employees is recognizing the period when the employee rendered the service. This benefit includes salary, wages, short term compensatory absence and bonus.

2) Long Term Benefits

i. Defined Contribution Scheme (DCS) - such as Provident Fund and other Funds, Employees State Insurance Scheme are charged to the Profit and Loss Account as incurred as per the applicable Iaw/Rules.

ii. Defined benefit Scheme (DFS) - The present obligation, Company's liability towards Gratuity and Leave Encashment, under such scheme is determined based on an actuarial valuation, using the Projected Unit Credit (PUC) method, carried out by an independent actuary. As per the requirement of "Accounting Standard 15 (Revised 2005) on Employees benefit. Actuarial gain and losses arising on such valuation are recognized immediately in the Profit and Loss account.

iii. In case of Funded Defined Benefit Scheme the fair value of the plan assets is reduced from the gross obligation under defined benefit scheme to recognize the obligation on net basis.

iv. Contributions are made to recognised Provident Fund, Employees State Insurance Scheme and are charged to revenue accounts. Gratuity, Benefit for encashment of leave salary is fully provided for on accrual basis.

(j) Revenue Recognition:

a. Sales are inclusive of excise duty and net of discounts/returns. Exports sales include Goods Invoiced against confirmed orders and cleared from Excise and Custom Authorities, also goods exported as third party exporter and exchange fluctuations.

b. Export incentives in cash are recognized as income on Export being made. Benefits receivable under various schemes like Advance Licenses, Target Plus, Duty Free Import Authorisation etc. are recognized on certainty of their utilization and realization.

c. Other items of Revenue are recognized in accordance with the accounting standard (AS 9) accordingly, wherever there are uncertainties in the ascertainment/realization of income are recognised at the time of receipt of payment thereof. *

(k) Tax on Income:

Tax expenses for the year comprises of current tax, deferred tax and fringe benefit tax:

a) Current tax is determined on the amount of tax payable in respect of taxable income for the period, using the applicable tax rates and tax laws in accordance with the provisions of Indian Income Tax Act, 1961

b) Deferred tax is recognized, subject to consideration of prudence, on timing differences, being difference between taxable and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is accounted for using the fax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date.

c) Fringe Benefit tax is provided in accordance with the provisions of Income Tax Act, 1961.

(l) Impairment of assets

At each Balance Sheet date an assessment is made whether there is any indication of impairment of thecarrying amount of the Company's assets. The recoverable amount of such assets are estimated, if anyindication exists, impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount.

(m) Contingent Liabilities and Provisions

Contingent Liabilities are disclosed by way of notes and are not recognized as an item of expense in the Profit and Loss Account. Contingent gains are not recognized. Provisions are recognized as liability only when they can be measured by using a substantial degree of estimation and where present obligations of the enterprise arise from past events the settlement of which is expected to result in an outflow of resources embodying economic benefits. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

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Mar 31, 2013

(a) Basis of Accounting:

The accounts of the Company are prepared under the historical cost convention, in accordance with applicable Accounting Standards, for recognition of income and expenditure mercantile systems of accounting is followed except in the case of interest on deposit with Post Office Saving Bank Account which are accounted for on cash basis.

(b) Use of Estimates

The preparation of financial statements in under generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that effect the reported statements of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenue and expenses during the year. The actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

(c) Fixed Assets:

Fixed Assets are stated at cost and / or revalued cost less depreciation. Since certain machineries were purchased in Court auction at a consolidated price, any sale out of the said machineries is adjusted in the plant & machinery account at sale value.

(d) Depreciation:

Depreciation has been provided on straight line method on assets installed up to 30th June, 1987 at the rates corresponding to rates applicable under the Income Tax Rules in force at the time of acquisition /Installation of respective assets pursuant to circular No. 1/86 dated 21st May, 1986 issued by the Department of Company affairs in accordance with provisions of Section 205(2) (b) of the Companies Act, 1956 and on addition thereafter at the rates, basis and manner as specified in Schedule XIV to the Companies Act, 1956.

(d) Investments:

Investments are classified as Long Term & Short Term Investments. All long-term investments have been valued at cost The market value of Investments In certain shares have eroded, being temporary in nature, therefore, no has been made in respect unquoted investments for decrease in estimated realisable value on the basis of available information. Short-term investments have been valued at cost or net realisable value whichever is lower.

(e) Valuation of Inventories:

RAW MATERIALS, STORES & SPARES, LOWER OF COST OR NET REALISABLE WORK IN PROCESS, FINISHED GOODS VALUE

LOOSE TOOLS AT ESTIMATED VALUE

SCRAP AT ESTIMATED REALISABLE VALUE

Notes:

(i) Cost is arrived on weighted average basis.

(ii) Cost of inventories comprises all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition.

(f) Foreign Currency Transactions:

(i) Transactions in foreign currency has been translated into Indian Rupees at the exchange rates prevailing at the date of transaction, any variation in receipt or payment has been adjusted in exchange gain/loss account. Assets and Liabilities outstanding as at year end have been converted into the Indian Rupees at year end exchange rates.

Non-monetary assets and liabilities are translated at the rate prevailing on the date of transaction. Net variation arising out of the said transactions are adjusted to costs of the respective non-monelaiy assets of liabilities, in the case of fixed assets up to the date of installation.

(iii) The operations of foreign branches of company are integral in nature and financial statements of these branches are translated using the same principles and procedures as of its head office.

(iv) In case of forward exchange contract or other financial instruments, the gain or loss is computed by multiplying the foreign currency amount of the forward exchange contract by the difference between the forward rate available at the end of the year and the contracted forward rate.

(g) Excise Duty:

liability for Excise Duly in respect of finished goods and scrap not cleared from factory premises for sale is at the time of clearance from the (actor/ premises. The policy has however, no impact on it assets of the Company.

(h) Expenditure During Construction Period

up the dale allocation are capitalised together with the other direct

(i) Employees Benefits

1) Short Term Benefit

The Undiscounted amount of short term employees benefits expected to be paid in exchange for the services rendered by employees is recognizing the period when the employee rendered the service. This benefit includes salary, wages, short term compensatory absence and bonus.

2) Long Term Benefits

i. Defined Contribution Scheme (DCS) - such as Provident Fund and other Funds, Employees State Insurance Scheme are charged to the Profit and Loss Account as incurred as per the applicable Law/Rules.

ii. Defined benefit Scheme (DFS) - The present obligation, Company's liability towards Gratuity and Leave Encashment, under such scheme is determined based on an actuarial valuation, using the Projected Unit Credit (PUC) method, carried out by an independent actuary. As per the requirement of "Accounting Standard 15 (Revised 2005) on Employees benefit. Actuarial gain and losses arising on such valuation are recognized immediately in the Profit and Loss account.

iii. In case of Funded Defined Benefit Scheme the fair value of the plan assets is reduced from the gross obligation under defined benefit scheme to recognize the obligation on net basis.

iv. Contributions are made to recognised Provident Fund, Employees State Insurance Scheme and are charged to revenue accounts. Gratuity, Benefit for encashment of leave salary is fully provided for on accrual basis.

(j) Revenue Recognition:

a. Sales are inclusive of excise duty and net of discounts/returns. Exports sales include Goods Invoiced against confirmed orders and cleared from Excise and Custom Authorities, also goods exported as third party exporter and exchange fluctuations.

b. Export incentives in cash are recognized as income on Export being made. Benefits receivable under various schemes like Advance Licenses, Target Plus, Duty Free Import Authorisation etc. are recognized on certainty of their utilization and realization.

c. Other items of Revenue are recognized in accordance with the accounting standard (AS 9) accordingly, wherever there are uncertainties in the ascertainment/realization of income are recognised at the time of receipt of payment thereof.

(k) Tax on Income:

Tax expenses for the year comprises of current tax, deferred tax and fringe benefit tax:

a) Current tax is determined on the amount of tax payable in respect of taxable income for the period, using the applicable tax rates and tax laws in accordance with the provisions of Indian Income Tax Act, 1961.

b) Deferred tax is recognized, subject to consideration of prudence, on timing differences, being difference between taxable and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date.

c) Fringe Benefit tax is provided in accordance with the provisions of Income Tax Act, 1961.

(l) impairment of assets

At each Balance Sheet date an assessment is made whether there is any indication of impairment of the carrying amount of the Company's assets. The recoverable amount of such assets are estimated, if any indication exists, impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount.

m) Contingent Liabilities and Provisions

Contingent liabilities are disclosed by way of notes and are not recognized as an item of expense in the Profit and Loss Account. Contingent gains are not recognized. Provisions are recognized as liability only when they can be measured by using a substantial degree of estimation and where present obligations of the enterprise arise from past events the settlement of which is expected to result in an outflow of resources embodying economic benefits. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

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Mar 31, 2012

(a) Basis of Accounting:

The accounts of the Company are prepared under the historical cost convention, in accordance with applicable Accounting Standards, for recognition of income arid expenditure mercantile systems of accounting is followed except in the case of interest on deposit with Post Office Saving Bank Account which are accounted for on cash basis,

(b) Use of Estimates

The preparation of financial statements in under generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that effect the reported statements of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenue and expenses during the year. The actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

(c) Fixed Assets:

Fixed Assets are stated at cost and / or revalued cost less depreciation. Since certain machineries were purchased in Court auction at a consolidated price, any sale out of the said machineries is adjusted in the plant & machinery account at sale value.

(d) Depreciation:

Depreciation has been provided on straight line method on assets installed up to 30th June, 1987 at the rates corresponding to rates applicable under the Income Tax Rules in force at the time of acquisition /Installation of respective assets pursuant to circular No. 1/86 dated 21st May, 1986 issued by the Department of Company affairs in accordance with provisions of Section 205(2)(b) of the Companies Act, 1956 and on addition thereafter at the rates, basis and manner as specified in Schedule XIV to the Companies Act, 1956

(d) Investments:

Investments are classified as Long Term & Short Term Investments . All long-term investments have been valued at cost. The market value of quoted investments in certain shares have eroded, being temporary in nature, therefore, no provision has been made in respect of unquoted investments for decrease in estimated realisable value on the basis of available information. Short-term investments have been valued at cost or net realisable value whichever is

(e) Valuation of Inventories:

RAW MATERIALS, STORES & SPARES, LOWER OF COST OR NET REALISABLE WORK IN PROCESS, FINISHED GOODS VALUE

LOOSE TOOLS AT ESTIMATED VALUE

SCRAP AT ESTImATED REA1JSABLE VALUE

Notes:

(i) Cost is arrived on weighted average basis

(ii) Cost of inventories comprises all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition,

(f) Foreign Currency Transactions:

(i) Transactions in foreign currency has been translated into Indian Rupees at the exchange rates prevailing at the date of transaction, any variation in receipt or payment has been adjusted in exchange gain/loss account, Assets and Liabilities outstanding as at year end have been converted into the Indian Rupees at year end exchange rates.

(ii) Non-monetary assets and liabilities are translated at the rate prevailing on the date of transaction. Net variation arising out of the said transactions are adjusted to the costs of the respective non-monetary assets or liabilities, in the case of fixed assets up to the date of installation.

(iii) The operations of foreign branches of company are integral in nature and financial statements of these branches are translated using the same principles and procedures as of its head office.

(iv) In case of forward exchange contract or other financial instruments, the gain or loss is computed by multiplying the foreign currency amount of the forward exchange contract by the difference between the forward rate available at the end of the year and the contracted forward rate.

(g) Excise Duty:

Liability for Excise Duty in respect of finished goods and scrap not cleared from factory premises for sale is accounted for at the time of clearance from the factory premises. The policy has however, no impact on operating results and net current assets of the Company.

(h) Expenditure During Construction Period

All expenses including interest incurred up to the date of installation are capitalised together with the other direct costs.

(i) Employees Benefits

1) Short Term Benefit

The Undiscounted amount of short term employees benefits expected to be paid in exchange for the services rendered by employees is recognizing the period when the employee rendered the service. This benefit - includes salary, wages, short term absence and bonus.