Accounting Policies of Midwest Gold Ltd. Company

Mar 31, 2025

2.1. Material Accounting Policy Information

The Material Accounting Policy Information adopted in the preparation of these financial
statements are detailed hereafter. These policies have been consistently applied to all the
years presented, unless otherwise stated.

2.2. Segment Reporting

The company is operated in single segment and reported in a manner consistent with the
internal reporting provided to the Chief Operating Decision Maker. The Whole Time Director
has been identified as the Chief Operating Decision Maker. Refer Note 32 for the segment
information presented.

2.3. Foreign currency transactions

a) Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency
of the primary economic environment in which the entity operates (''the functional currency'').
Indian Rupees is the functional currency of the company. The financial statements and all
financial information is presented in Indian rupee (INR).

b) Transactions and balances

Foreign currency transactions are translated into functional currency using the exchange rates
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement
of such transactions and from the translation of monetary assets and liabilities denominated
in foreign currencies at year-end exchange rates are generally recognised in the statement of
profit and loss. Non-monetary items that are measured in terms of historical cost in a foreign
currency, using the exchange rate at the date of the transaction. Non-monetary items that are
measured at fair value in a foreign currency are translated using the exchange rates at the
date when the fair value was determined. Translation differences on assets and liabilities
carried at fair value are reported as part of the fair value gain or loss.

2.4. Use of estimates, assumptions and judgements

The preparation of financial statements requires the use of accounting estimates which, by
definition, will seldom equal the actual results. Management also needs to exercise judgement
in applying the Company''s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or
complexity, and of items which are more likely to be materially adjusted due to estimates and
assumptions turning out to be different than those originally assessed. Detailed information
about each of these estimates and judgements is included in relevant notes together with
information about the basis of calculation for each affected line item in the financial statements.
The areas involving critical estimates or judgements are:

• Estimation of expected credit loss on financial assets - Note 28(A) (I).

• Useful life of Property, Plant & Equipment - Note 2.7

• Recognition and measurement of defined benefit obligations - Note 2.14

• Estimation of current tax expense and payable

2.5. Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts
disclosed as revenue are net of returns, trade allowances, rebates, value-added taxes, goods
and service tax (GST) and amounts collected on behalf of third parties.

Revenue is recognized when the amount of revenue can be reliably measured: probable that
future economic benefits will flow to the entity and specific criteria for each of the activities
as described below has been met.

Sale of Goods - Recognition& Measurement

Revenue from the sale of goods is recognized when the significant risks and rewards of
ownership of the goods have passed to the buyer, usually on delivery of the goods.
Revenue from the sale of goods is measured at the fair value of the consideration received or
receivable, net of returns and allowances, trade discounts and volume rebates. Revenue also
excludes taxes collected from customers.

Dividend Income

Dividend income on investments is accounted for when the right to receive the same is
established. Dividend income will be included in Other Income in the Statement of Profit and

Loss.

Interest Income

Interest income on all financial assets measured at amortised cost, interest income is recognised
using the effective interest rate (EIR) method, is recognised in the statement of profit and loss
as part of other income.

Interest income is calculated by applying the effective interest rate to the gross carrying amount
of the financial asset except for financial assets that subsequently become credit impaired.
For credit impaired financial assets, the effective interest rate is applied to the net carrying
amount of the financial asset (after deduction of the expected credit loss).

2.6. Leases
As a lessee

The Company accounts for each lease component within the contract as a lease separately
from non-lease components of the contract and allocates the consideration in the contract to
each lease component on the basis of the relative stand-alone price of the lease component
and the aggregate stand-alone price of the non-lease components.

The Company recognises right-of-use asset representing its right to use the underlying asset
for the lease term at the lease commencement date. The cost of the right-of-use asset measured
at inception shall comprise of the amount of the initial measurement of the lease liability
adjusted for any lease payments made at or before the commencement date less any lease
incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred
by the lessee in dismantling and removing the underlying asset or restoring the underlying
asset or site on which it is located. The right-of-use assets is subsequently measured at cost
less any accumulated depreciation, accumulated impairment losses, if any and adjusted for
any remeasurement of the lease liability. The right-of-use assets is depreciated using the
straight-line method from the commencement date over the shorter of lease term or useful
life of right-of-use asset. The estimated useful lives of right-of use assets are determined on
the same basis as those of property, plant and equipment. Right-of-use assets are tested for
impairment whenever there is any indication that their carrying amounts may not be
recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.

The Company measures the lease liability at the present value of the lease payments that are
not paid at the commencement date of the lease. The lease payments are discounted using the
interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be
readily determined, the Company uses incremental borrowing rate. For leases with reasonably

similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental
borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a
whole. The lease payments shall include fixed payments, variable lease payments, residual
value guarantees, exercise price of a purchase option where the Company is reasonably certain
to exercise that option and payments of penalties for terminating the lease, if the lease term
reflects the lessee exercising an option to terminate the lease. The lease liability is subsequently
remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing
the carrying amount to reflect the lease payments made and remeasuring the carrying amount
to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease
payments. The company recognises the amount of the re-measurement of lease liability due
to modification as an adjustment to the right-of-use asset and statement of profit and loss
depending upon the nature of modification. Where the carrying amount of the right-of-use
asset is reduced to zero and there is a further reduction in the measurement of the lease
liability, the Company recognises any remaining amount of the re-measurement in statement
of profit and loss.

As a lessor

At the inception of the lease the Company classifies each of its leases as either an operating
lease or a finance lease. The Company recognises lease payments received under operating
leases as income on a straight- line basis over the lease term. In case of a finance lease, finance
income is recognised over the lease term based on a pattern reflecting a constant periodic rate
of return on the lessor''s net investment in the lease. When the Company is an intermediate
lessor it accounts for its interests in the head lease and the sub-lease separately. It assesses the
lease classification of a sub-lease with reference to the right-of-use asset arising from the head
lease, not with reference to the underlying asset. If a head lease is a short-term lease to which
the Company applies the exemption described above, then it classifies the sub-lease as an
operating lease.

2.7. Property, Plant and Equipment

i) Recognition and measurement

The initial cost of property, plant and equipment comprises its purchase price, including
import duties and non-refundable purchase taxes, and any directly attributable costs of
bringing an asset to working condition and location for its intended use. It also includes the
initial estimate of the costs if any of dismantling and removing the item and restoring the site
on which it is located. Items such as spares are capitalized when they meet the definition of
property, plant and equipment. If significant parts of an item of property, plant and equipment
have different useful lives, then they are accounted for as separate items (major components)
of property, plant and equipment. Likewise, expenditure towards major inspections and
overhauls are identified as a separate component and depreciated over the expected period
till the next overhaul expenditure.

ii) Subsequent expenditure

Subsequent costs are included in the asset''s carrying amount or recognised as a separate
asset, as appropriate in property, plant and equipment the cost of replacing part of such an
item when the cost is incurred if the recognised criteria are met. The carrying amount of any
component accounted for as separate asset is derecognised when replaced. All other repairs
and maintenance are charged to profit or loss during the reporting period in which they are
incurred.

iii) Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefit is expected to arise from the continued use of the asset. Any gain or loss
arising on de-recognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the item) is recognised in profit and loss in the period
the item is derecognised.

iv) Depreciation expense

Depreciation is charged on straight line basis so as to write off the depreciable amount of the
asset over the useful lives specified in Schedule II to the Act. The useful life of the assets is
periodically reviewed and re-determined based on a technical evaluation and expected use.
The Company reviews the residual value, useful lives and depreciation method annually
and, if expectations differ from previous estimates, the change is accounted for as a change in
accounting estimate on a prospective basis.

2.8. Financial Instruments

Classification, initial recognition, and measurement

A financial instrument is any contract that gives rise to a financial asset for one entity and a
financial liability or equity instrument for another entity. Financial instruments are recognized
on the balance sheet when the Company becomes a party to the contractual provisions of the
instrument.

(i) Financial Assets
Classification:

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 through profit or loss), and

• those measured at amortised cost.

The classification depends on the entity''s business model for managing the financial assets
and the contractual terms of the cash flows. For assets measured at fair value, gains and
losses will either be recorded in profit or loss or other comprehensive income. For investments
in debt instruments, this will depend on the business model in which the investment is held.
For investments in equity instruments, this will depend on whether the Company has made
an irrevocable selection at the time of initial recognition to account for the equity investment
at fair value through other comprehensive income.

The Company reclassifies debt investments when and only when its business model for
managing those assets changes.

At initial recognition

The Company measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of financial assets carried at fair value
through profit or loss are expensed in profit or loss.

Subsequent measurement - Debt instruments

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

i. At amortised cost : Financial assets having contractual terms that give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal
outstanding and that are held within a business model whose objective is to hold such
assets in order to collect such contractual cash flows are classified in this category.
Subsequently, these are measured at amortized cost using the effective interest method
less any impairment losses.

ii. At fair value through other comprehensive income (FVOCI): Financial assets are
measured at fair value through other comprehensive income if these financial assets are
held within a business whose objective is achieved by both collecting contractual cash
flows on specified dates that are solely payment of principal and interest on the principal
amount outstanding and selling financial assets.

iii. At fair value through profit or loss (FVTPL): Financial assets are measured at fair value
through profit or loss unless it is measured at amortised cost or at fair value through
other comprehensive income on initial recognition. The transaction costs directly
attributable to the acquisition of financial assets at fair value through profit or loss are
immediately recognised in profit or loss.

Other Equity Investments

All other equity investments are measured at fair value, with value changes recognized in
Statement of Profit and Loss, except for those equity investments for which the Company has
elected to present the value changes in ''Other Comprehensive Income''.

Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short¬
term deposits with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above, net of outstanding bank over drafts as they are
considered an integral part of the Company''s cash management.

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.

(ii) Financial liabilities

Classification, initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings, or payables, as appropriate. All financial liabilities
are recognized initially at fair value and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs. The Company''s financial liabilities include trade
and other payables, loans and borrowings including bank overdrafts.

Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade
and other payables maturing within one year from the balance sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.

Trade and other payables

Trade and other payables represent liabilities for goods and services 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.

Loans and borrowings

Borrowings are initially recognized at fair value, net of transaction costs 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 effective 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 this case, the fee is deferred until the draw
down occurs. To the extent there is no evidence that it is probable that some or all of the
facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and
amortized over the period of the facility to which it relates.

De-recognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cashflows
from the asset expire, or when it transfers the financial asset and substantially all the risks
and rewards of ownership of the asset to another party. On de-recognition of a financial asset
the difference between the carrying amount and the consideration received is recognized in
the statement of profit and loss.

The Company derecognizes financial liabilities when, and only when, the Company''s
obligations are discharged, cancelled or have expired. On de-recognition of a financial liability
the difference between the carrying amount of the financial liability derecognized and the
consideration paid and payable is recognized in the statement of profit and loss.

Offsetting financial instruments

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

Financial guarantee contracts

The fair value of financial guarantees is determined as the present value of the difference in
net cash flows between the contractual payments under the debt instrument and the payments
that would be required without the guarantee or the estimated amount that would be payable
to a third party for assuming the obligations.

As Guarantor

Financial guarantee contracts are recognized as a financial liability at the time the guarantee
is issued. The liability is initially measured at fair value and subsequently at the higher of the
amount determined in accordance with Ind AS 109 and the amount initially recognized less
cumulative amortization, where appropriate.

Where guarantees in relation to loans or other payables of associates are provided for no
compensation, the fair values are accounted for as contributions and recognised as part of the
cost of the investment.

As Beneficiary

Financial guarantee contracts are recognised as a financial asset at the time the guarantee is
taken. The asset is initially measured at fair value and subsequently amortised over the
guarantee period. Where guarantees in relation to loans or other payables are provided by
company for no compensation, the fair values are accounted for as contributions and
recognised as part of equity.

2.9. Impairment of Assets
Financial assets

The Company assesses at each date of balance sheet impairment if any of a financial asset or
a group of financial assets. The company uses, in accordance with Ind AS109, ''Expected Credit
Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured
at fair value through profit and loss (FVTPL). Expected credit losses are measured through a
loss allowance at an amount equal to: The 12-months expected credit losses (expected credit
losses that result from those default events on the financial instrument that are possible within
12 months after the reporting date); or Full lifetime expected credit losses (expected credit
losses that result from all possible default events over the life of the financial instrument).
For trade receivables Company applies a ''simplified approach'' which requires expected life
time losses to be recognized from the initial recognition of the receivables. The Company
uses historical default rates to determine impairment loss on the portfolio of trade receivables.
At every reporting date, these historical default rates are reviewed and changes in the forward¬
looking estimates are analysed.

For other assets, the Company uses 12-month ECL to provide for impairment loss where
there is no significant increase in credit risk. If there is significant increase in credit risk full
lifetime ECL is used.

Non-financial assets

Property, Plant and Equipment and Other intangible assets with finite life are evaluated for
recoverability when there is any indication that their carrying amounts may not be recoverable.
If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to
sell and the value-in-use) is determined on an individual asset basis unless the asset does not
generate cash flows that are largely independent of those from other assets. In such cases, the
recoverable amount is determined for the cash generating unit (CGU) to which the asset
belongs. If the recoverable amount of an asset or CGU is estimated to be less than its carrying
amount, the carrying amount of the asset or CGU is reduced to its recoverable amount and
impairment loss is recognized in the profit or loss.

2.10. Equity instruments

An equity instrument is a contract that evidences residual interests in the assets of the Company
after deducting all of its liabilities. Equity instruments issued by the Company are recorded
at the proceeds received, net of direct issue costs.

2.11. Inventories

Raw materials, stores, spares and consumables are valued at lower of cost, calculated on
Weighted Average basis and net realisable value. Items held for use in the production of
inventories are not written down below cost if the finished products in which these will be
incorporated, are expected to be sold at or above cost.

Finished goods and work-in-progress are valued at lower of cost and net realisable value
Cost includes materials, direct labour, and a proportion of appropriate over heads based on
normal operating capacity. Cost is determined on a Weighted Average basis.

Trading goods are valued at lower of cost and net realisable value.

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

2.12. Tax expenses

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount
expected to be paid to the tax authorities, based on estimated tax liability computed after
taking credit for allowances and exemption in accordance with the prevailing tax laws for the
year.

Current and deferred tax are recognized in profit or loss, except when they relate to the items
that are recognized in other comprehensive income or directly in equity, in which case, the
income taxes are recognized in other comprehensive income or directly in equity, respectively.
Current tax assets and current tax liabilities are presented in the statement of financial position
after off-setting the taxes paid or deemed to be paid and current income tax expenses are the
year.

Deferred income taxes

Deferred tax is recognized using the balance sheet approach. Deferred income tax assets and
liabilities are recognized for deductible and taxable temporary differences arising between
the tax base of assets and liabilities and their carrying amount, except when the deferred
income tax arises from the initial recognition of goodwill or an asset or liability in a transaction
that is not a business combination and affects neither accounting nor taxable profit or loss at
the time of the transaction.

Deferred income tax asset are recognized to the extent it is probable that taxable profit will be
available against which the deductible temporary differences and the carry forward of unused
tax credits and unused tax losses can be utilized.

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

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected
to apply to taxable income in the years in which the temporary differences are expected to be
received or settled.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax
laws in India, which gives rise to future economic benefits in the form of adjustment of future
income tax liability, is considered as an asset if there is probable evidence that the Company
will pay normal income tax after the tax holiday period.

Deferred tax assets and liabilities are offset when it relates to income taxes levied by the same
taxation authority and the relevant entity intends to settle its current tax assets and liabilities
on a net basis

The Company recognizes interest related to income tax in interest expenses.

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Mar 31, 2024

2.1. Significant Accounting Policies

The significant accounting policies adopted in the preparation of these financial statements are detailed hereafter. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.2. Segment Reporting

The company is operated in single segment and reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker. The Whole Time Director has been identified as the Chief Operating Decision Maker. Refer Note 32 for the segment information presented.

2.3. Foreign currency transactions

a) Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). Indian Rupees is the functional currency of the company. The financial statements and all financial information is presented in Indian rupee (INR).

b) Transactions and balances

Foreign currency transactions are translated into functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates are generally recognised in the statement of profit and loss. Nonmonetary items that are measured in terms of historical cost in a foreign currency, using the exchange rate at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.

2.4. Use of estimates, assumptions and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company’s accounting policies.

This note provides an overview of the areas that involved a higher degree ofjudgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgements are:

• Estimation of expected credit loss on financial assets - Note 28(A) (I).

• Useful life of Property, Plant & Equipment - Note 2.7

• Recognition and measurement of defined benefit obligations - Note 2.14

• Estimation of current tax expense and payable

2.5. Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates, value-added taxes, goods and service tax (GST) and amounts collected on behalf of third parties.

Revenue is recognized when the amount of revenue can be reliably measured: probable that future economic benefits will flow to the entity and specific criteria for each of the activities as described below has been met.

Sale of Goods - Recognition* Measurement

Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volumerebates. Revenue also excludes taxes collected from customers.

Dividend Income

Dividend income on investments is accounted for when the right to receive the same is established. Dividend income will be included in Other Income in the Statement of Profit and Loss.

Interest Income

Interest income on all financial assets measured at amortised cost, interest income is recognised using the effective interest rate (EIR) method, is recognised in the statement of profit and loss as part of other income.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of the financial asset except for financial assets that subsequently become credit impaired. For credit impaired financial assets, the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the expected credit loss).

2.6. Leases As a lessee

The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in statement of profit and loss.

As a lessor

At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. The Company recognises lease payments received under operating leases as income on a straight- line basis over the lease term. In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor’s net investment in the lease. When the Company is an intermediate lessor it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

2.7. Property, Plant and Equipment

i) Recognition and measurement

The initial cost of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and location for its intended use. It also includes the initial estimate of the costs if any of dismantling and removing the item and restoring the site on which it is located. Items such as spares are capitalized when they meet the definition of property, plant and equipment.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Likewise, expenditure towards major inspections and overhauls are identified as a separate component and depreciated over the expected period till the next overhaul expenditure.

ii) Subsequent expenditure

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate in property, plant and equipment the cost of replacing part of such an item when the cost is incurred if the recognised criteria are met. The carrying amount of any component accounted for as separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

iii) Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefit is expected to arise from the continued use of the asset. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is recognised in profit and loss in the period the item is derecognised.

iv) Depreciation expense

Depreciation is charged on straight line basis so as to write off the depreciable amount of the asset over the useful lives specified in Schedule II to the Act. The useful life of the assets is periodically reviewed and re-determined based on a technical evaluation and expected use.

The Company reviews the residual value, useful lives and depreciation method annually and, if expectations differ from previous estimates, the change is accounted for as a change in accounting estimate on a prospective basis.

2.8. Financial Instruments

Classification, initial recognition, and measurement

A financial instrument is any contract that gives rise to a financial asset for oneentity and a financial liability or equity instrument for another entity. Financial instruments are recognized on the balance sheet when the Company becomes a party to the contractual provisions of the instrument.

(i) Financial Assets Classification:

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 through profit or loss), and

• those measured at amortised cost.

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable selection at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

The Company reclassifies debt investments when and only when its business model for managing those assets changes.

At initial recognition

The Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Subsequent measurement - Debt instruments

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

i. At amortised cost: Financial assets having contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding and that are held within a business model whose objective is to hold such assets in order to collect such contractual cash flows are classified in this category. Subsequently, these are measured at amortized cost using the effective interest method less any impairment losses.

ii. At fair value through other comprehensive income (FVOCI): Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows on specified dates that are solely payment of principal and interest on the principal amount outstanding and selling financial assets.

iii. At fair value through profit or loss (FVTPL): Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets at fair value through profit or loss are immediately recognised in profit or loss.

Other Equity Investments

All other equity investments are measured at fair value, with value changes recognized in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in ‘Other Comprehensive Income’. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank over drafts as they are considered an integral part of the Company’s cash management.

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.

(ii) Financial liabilities

Classification, initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, or payables, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.

Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

Trade and other payables

Trade and other payables represent liabilities for goods and services 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 atamortized cost using the effective interest method.

Loans and borrowings

Borrowings are initially recognized at fair value, net of transaction costs 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 effective 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 this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates.

De-recognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. On de-recognition of a financial asset the difference between the carrying amount and the consideration received is recognized in the statement of profit and loss.

The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. On de-recognition of a financial liability the difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in the statement of profit and loss.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realize the asset and

settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the group or the counterparty. Financial guarantee contracts

The fair value of financial guarantees is determined as the present value of the difference in net cash flows between the contractual payments under the debt instrument and the payments that would be required without the guarantee or the estimated amount that would be payable to a third party for assuming the obligations. As Guarantor

Financial guarantee contracts are recognized as a financial liability at the time the guarantee is issued. The liability is initially measured at fair value and subsequently at the higher of the amount determined in accordance with Ind AS 109 and the amount initially recognized less cumulative amortization, where appropriate. Where guarantees in relation to loans or other payables of associates are provided for no compensation, the fair values are accounted for as contributions and recognised as part of the cost of the investment.

As Beneficiary

Financial guarantee contracts are recognised as a financial asset at the time the guarantee is taken. The asset is initially measured at fair value and subsequently amortised over the guarantee period. Where guarantees in relation to loans or other payables are provided by company for no compensation, the fair values are accounted for as contributions and recognised as part of equity.

2.9. Impairment of Assets Financial assets

The Company assesses at each date of balance sheet impairment if any of a financial asset or a group of financial assets. The company uses, in accordance with Ind AS109, ‘Expected Credit Loss’ (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL). Expected credit losses are measured through a loss allowance at an amount equal to: The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument). For trade receivables Company applies a ‘simplified approach’ which requires expected lifetime losses to be recognized from the initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date, these historical default rates are reviewed and changes in the forward-looking estimates are analysed.

For other assets, the Company uses 12-month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

Non-financial assets

Property, Plant and Equipment and Other intangible assets with finite life are evaluated for recoverability when there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e.

higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs. If there coverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount of the asset or CGU is reduced to its recoverable amount and impairment loss is recognized in the profit or loss.

2.10. Equity instruments

An equity instrument is a contract that evidences residual interests in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.

2.11. Inventories

Raw materials, stores, spares and consumables are valued at lower of cost, calculated on Weighted Average basis and net realisable value. Items held for use in the production of inventories are not written down below cost if the finished products in which these will be incorporated, are expected to be sold at or above cost.

Finished goods and work-in-progress are valued at lower of cost and net realisable value Cost includes materials, direct labour, and a proportion of appropriate overheads based on normal operating capacity. Cost is determined on a Weighted Average basis.

Trading goods are valued at lower of cost and net realisable value.

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

2.12. Tax expenses

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, based on estimated tax liability computed after taking credit for allowances and exemption in accordance with the prevailing tax laws for the year.

Current and deferred tax are recognized in profit or loss, except when they relate to the items that are recognized in other comprehensive income or directly in equity, in which case, the income taxes are recognized in other comprehensive income or directly in equity, respectively.

Current tax assets and current tax liabilities are presented in the statement of financial position after off-setting the taxes paid or deemed to be paid and current income tax expenses are the year.

Deferred income taxes

Deferred tax is recognized using the balance sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred income tax asset are recognized to the extent it is probable that taxable profit will be available against which the deductible temporary differences and the

carry forward of unused tax credits and unused tax losses can be utilized.

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

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is probable evidence that the Company will pay normal income tax after the tax holiday period. Deferred tax assets and liabilities are offset when it relates to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis

The Company recognizes interest related to income tax in interest expenses.

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Mar 31, 2015

1. Corporate Information

Midwest Gold Limited (the company) is a public company domiciled in India and incorporated under the provisions of the companies Act, 1956. Its Shares are listed on stock exchanges in India. The company is presently engaged in the trading business of Granite, Marbles and Gold.

2. Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis, These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 133 of Companies Act 2013 [As on date the notified accounting standards are, the Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 2013.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, period of 12 months is taken as a operating cycle for the purpose of current - non current classification of assets and liabilities."

II FIXED ASSETS AND DEPRECIATION:

Tangible Assets are stated at acquisition cost, net of accumulated depreciation and accumulated impairment losses.

Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their net book value and net realisable value and are shown separately in the financial statements. Any expected loss is recognised immediately in the Statement of Profit and Loss.

Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognised in the Statement of Profit and Loss.

Machinery spares which are specific to particular item of Fixed Assets and its use is expected to be irregular are classified as Mandatory spares and are shown separately under Fixed Assets. "Depreciation is provided on a straight line method, at the rates and manner prescribed in Schedule II of the Companies Act, 2013.

All assets have been depreciated at 95% of their cost and the remaining 5% has not been depreciated as the same will form part of Scrap value..

III VALUATION OF INVENTORIES ARE MADE AS UNDER

1. Raw Material - At Cost (Weighted Average)

2. Stores & Spares - At Cost (FIFO)

3. Consumables - At Cost (FIFO)

4. Work In Progress - Lower of Cost or Estimated Realizable Value

5. Finished Goods - Lower of Cost or Net Realizable Value

6. Stock in Trade - Lower of Cost or Net Realizable Value

IV SALES

Sales are accounted for on passing of title to the customers. Returns and rebates and discounts against goods sold are recognized as and when ascertained and deducted from sales of the respective year.

V MISCELLANEOUS EXPENDITURE

1. Preliminary & Public Issue Expenses:

Preliminary & Public Issue Expenses incurred by the Company will be charged to revenue on a deferred basis over a period of 10 Years on a Commencement of Commercial Production.

2. Quarry Development Expenditure:

Expenditure incurred on quarry development is treated as deferred revenue expenditure to be written off over a period of ten years after commencing regular quarrying Operation. In the event of abandoning the quarrying operation with in the period of Ten Years, the Same shall be written off in that year.

VI TRANSACTIONS IN FOREIGN CURRENCY :

1. Foreign currency transactions are recorded on the basis of exchange rates prevailing on the date of their occurrence.

2. Foreign currency balances as on the Balance Sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year and exchange difference arising there from, is adjusted to the cost of fixed Assets or charged to the Profit and Loss Account, as the case may be.

VII RETIREMENT BENEFITS FOR EMPLOYEES

EMPLOYEE BENEFITS

Defined Contribution Plan

The Company makes contribution towards Provident Fund and Employee State Insurance as a defined contribution retirement benefit fund for qualifying employees.

The Provident Fund plan is operated by the Regional Provident Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost, as per the statute, to the retirement benefit schemes to fund the benefits. Employee State Insurance is remitted to Employee State Insurance Corporation.

Defined Benefit Plan

For Defined Benefit Plant the cost of providing benefits is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains or losses are recognized in full in the Profit and Loss Account for the period in which they occur.

(a) Gratuity

Liability towards gratutity is provided for on actuarial Valuation Basis.

(b) Leave Encashment Benefits

The Companyextends benefits of leave to the employees while in service as well as on retairement. Provision for leave encashment benefit is being made on the cash basis.

(c) Short Term Employee Benefits.

Short term employee benefits are recognized as expenses as per Companies scheme based on expected obligation

VIII RESEARCH AND DEVELOPMENT EXPENDITURE

Research and development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to Fixed Assets in the year in which they are incurred.

IX CONTINGENCIES

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of Notes to Accounts.

X BORROWING COSTS

Borrowings costs incurred in relation to the acquisition, construction of assets are capitalized as part of the costs of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charges as an expense in the year in which these are incurred.

XI TAXES ON INCOME

a. Provision for Tax for current year has been made on the basis of estimated taxable income computed in accordance with the provisions as per Income Tax Act, 1961.

b. Deferred Tax resulting from all timing differences between Book Profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted rate of Tax, to the extent that the timing difference as expected to crystallize. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realized.

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Mar 31, 2014

I. Corporate Information

Midwest Gold Limited (the company) is a public company domiciled in India and incorporated under the provisions of the companies Act, 1956. Its Shares are listed on stock exchanges in India. The company is presently engaged in the trading business of Granite, Marbles and Gold.

1. Basis of Preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP).The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provision of the companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

2. The Accounts are prepared on a historical cost convention, all the expenses and income to the extent considered payable and receivable, unless stated otherwise, have been accounted for on accrual basis.

II FIXED ASSETS AND DEPRECIATION:

1. Fixed Assets are Stated at Cost less Depreciation.

2. Depreciation on all Assets, other than leasehold Land / free hold quarry Land is provided on straight line method in accordance with the provision of schedule XIV of the Companies Act, 1956.

3. Depreciation on Free Hold Quarry land has been provided taking economic life of the quarries on 20 Years. In case of abandoning a quarry the remaining book value will be written off in the year it is abandoned.

4. Depreciation on the Fixed Assets added during the year has been provided with reference to the date of acquisition thereof.

III VALUATION OF INVENTORIES ARE MADE AS UNDER

1. Raw Material - At Cost (Weighted Average)

2. Stores & Spares - At Cost (FIFO)

3. Consumables - At Cost (FIFO)

4. Work In Progress - Lower of Cost or Estimated Realizable Value

5. Finished Goods - Lower of Cost or Net Realizable Value

6. Stock in Trade - Lower of Cost or Net Realizable Value

IV SALES

1. Sales are accounted for on passing of title to the customers. Returns and rebates and discounts against goods sold are recognized as and when ascertained and deducted from sales of the respective year.

V MISCELLANEOUS EXPENDITURE

1. Preliminary & Public Issue Expenses: Preliminary & Public Issue Expenses incurred by the Company will be charged to revenue on a deferred basis over a period of 10 Years on a Commencement of Commercial Production.

2. Quarry Development Expenditure:

Expenditure incurred on quarry development is treated as deferred revenue expenditure to be written off over a period of ten years after commencing regular quarrying Operation. In the event of abandoning the quarrying operation with in the period of Ten Years, the Same shall be written off in that year.

VI TRANSACTIONS IN FOREIGN CURRENCY:

1. Foreign currency transactions are recorded on the basis of exchange rates prevailing on the date of their occurrence.

2. Foreign currency balances as on the Balance Sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year and exchange difference arising there from, is adjusted to the cost of fixed Assets or charged to the Profit and Loss Account, as the case may be.

VII RETIREMENT BENEFITS FOR EMPLOYEES EMPLOYEE BENEFITS

Defined Contribution Plan

The Company makes contribution towards Provident Fund and Employee State Insurance as a defined contribution retirement benefit fund for qualifying employees.

The Provident Fund plan is operated by the Regional Provident Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost, as per the statute, to the retirement benefit schemes to fund the benefits. Employee State Insurance is remitted to Employee State Insurance Corporation.

Defined Benefit Plan

For Defined Benefit Plant the cost of providing benefits is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains or losses are recognized in full in the Profit and Loss Account for the period in which they occur.

(a) GRATUITY

Liability towards gratutity is provided for on actuarial Valuation Basis.

(b) Leave Encashment Benefits

The Company extends benefits of leave to the employees while in service as well as on retairement. Provision for leave encashment benefit is being made on the cash basis.

Short Term Employee Benefits.

Short term employee benefits are recognized as expenses as per Companies scheme based on expected obligation

VIII RESEARCH AND DEVELOPMENT EXPENDITURE

Research and development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to Fixed Assets in the year in which they are incurred.

IX CONTINGENCIES

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of Notes to Accounts

X BORROWING COSTS

Borrowings costs incurred in relation to the acquisition, construction of assets are capitalized as part of the costs of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charges as an expense in the year in which these are incurred.

XI TAXES ON INCOME

a. Provision for Tax for current year has been made on the basis of estimated taxable income computed in accordance with the provisions as per Income Tax Act, 1961.

b. Deferred Tax resulting from all timing differences between Book Profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted rate of Tax, to the extent that the timing difference as expected to crystallize. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realized.

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Mar 31, 2013

I. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

The Accounts are prepared on a historical cost convention, all the expenses and income to the extent considered payable and receivable, unless stated otherwise, have been accounted for on accrual basis.

II FIXED ASSETS AND DEPRECIATION:

1. Fixed Assets are Stated at Cost less Depreciation.

2. Depreciation on all Assets, other than leasehold Land / free hold quarry Land is provided on straight line method in accordance with the provision of schedule XIV of the Companies Act, 1956.

3. Depreciation on Free Hold Quarry land has been provided taking economic life of the quarries on 20 Years. In case of abandoning a quarry the remaining book value will be written off in the year it is abandoned.

4. Depreciation on the Fixed Assets added during the year has been provided with reference to the date of acquisition thereof.

III VALUATION OF INVENTORIES ARE MADE AS UNDER

1. Raw Material - At Cost (Weighted Average)

2. Stores & Spares - At Cost (FIFO)

3. Consumables - At Cost (FIFO)

4. Work In Progress - Lower of Cost or Estimated Realizable Value

5. Finished Goods - Lower of Cost or Net Realizable Value

6. Stock in Trade - Lower of Cost or Net Realizable Value

IV SALES

1. Sales are accounted for on passing of title to the customers. Returns and rebates and discounts against goods sold are recognized as and when ascertained and deducted from sales of the respective year.

V MISCELLANEOUS EXPENDITURE

1. Preliminary & Public Issue Expenses :

Preliminary & Public Issue Expenses incurred by the Company will be charged to revenue on a deferred basis over a period of 10 Years on a Commencement of Commercial Production.

2. Quarry Development Expenditure:

Expenditure incurred on quarry development is treated as deferred revenue expenditure to be written off over a period of ten years after commencing regular quarrying Operation. In the event of abandoning the quarrying operation with in the period of Ten Years, the Same shall be written off in that year.

VI TRANSACTIONS IN FOREIGN CURRENCY

1. Foreign currency transactions are recorded on the basis of exchange rates prevailing on the date of their occurrence.

2. Foreign currency balances as on the Balance Sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year and exchange difference arising there from, is adjusted to the cost of fixed Assets or charged to the Profit and Loss Account, as the case may be.

VII RETIREMENT BENEFITS FOR EMPLOYEES

EMPLOYEE BENEFITS

Defined Contribution Plan

The Company makes contribution towards Provident Fund and Employee State Insurance as a defined contribution retirement benefit fund for qualifying employees.

The Provident Fund plan is operated by the Regional Provident Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost, as per the statute, to the retirement benefit schemes to fund the benefits. Employee State Insurance is remitted to Employee State Insurance Corporation.

Defined Benefit Plan

For Defined Benefit Plant the cost of providing benefits is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains or losses are recognized in full in the Profit and Loss Account for the period in which they occur.

(a) Gratuity

Liability towards gratutity is provided for on actuarial Valuation Basis.

(b) Leave Encashment Benefits

The Company extends benefits of leave to the employees while in service as well as on retairement. Provision for leave encashment benefit is being made on the cash basis.

Short Term Employee Benefits.

Short term employee benefits are recognized as expenses as per Companies scheme based on expected obligation

VIII RESEARCH AND DEVELOPMENT EXPENDITURE

Research and development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to Fixed Assets in the year in which they are incurred.

IX CONTINGENCIES

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of Notes to Accounts

X BORROWING COSTS

Borrowings costs incurred in relation to the acquisition, construction of assets are capitalized as part of the costs of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charges as an expense in the year in which these are incurred.

XI TAXES ON INCOME

a. Provision for Tax for current year has been made on the basis of estimated taxable income computed in accordance with the provisions as per Income Tax Act, 1961.

b. Deferred Tax resulting from all timing differences between Book Profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted rate of Tax, to the extent that the timing difference as expected to crystallize. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realized.

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Mar 31, 2012

(A) Change in accounting policy

Presentation and disclosure of financial statements

During the year ended 31 March 2012, the revised schedule VI notified under the Companies Act 1956 has become applicable to the company, for preparation of its financial statements. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year. For further details, refer note 36.

B. The Accounts are prepared on a historical cost convention; all the expenses and income to the extent considered payable and receivable, unless stated otherwise, have been accounted for on accrual basis.

II FIXED ASSETS AND DEPRECIATION:

1. Fixed Assets are Stated at Cost less Depreciation.

2. Depreciation on all Assets, other than leasehold Land / free hold quarry Land is provided on straight line method in accordance with the provision of schedule XIV of the Companies Act, 1956.

3. Depreciation on Free Hold Quarry land has been provided taking economic life of the quarries on 20 Years. In case of abandoning a quarry the remaining book value will be written off in the year it is abandoned.

4. Depreciation on the Fixed Assets added during the year has been provided with reference to the date of acquisition thereof.

III VALUATION OF INVENTORIES ARE MADE AS UNDER

1. Raw Material - At Cost (Weighted Average)

2. Stores & Spares - At Cost [FIFO)

3. Consumables - At Cost (FIFO)

4. Work In Progress - Lower of Cost or Estimated Realizable Value

5. Finished Goods - Lower of Cost or Net Realizable Value

6. Stock in Trade – Lower of Cost or Net Realizable Value

IV SALES

1. Sales are accounted for on passing of title to the customers. Returns and rebates and discounts against goods sold are recognized as and when ascertained and deducted from sales of the respective year.

V MISCELLANEOUS EXPENDITURE

1. Preliminary & Public Issue Expenses:

Preliminary & Public Issue Expenses incurred by the Company will be charged to revenue on a deferred basis over a period of 10 Years on a Commencement of Commercial Production.

2. Quarry Development Expenditure:

Expenditure incurred on quarry development is treated as deferred revenue expenditure to be written off over a period of ten years after commencing regular quarrying Operation. In the event of abandoning the quarrying operation with in the period of Ten Years, the Same shall be written off in that year.

VI TRANSACTIONS IN FOREIGN CURRENCY:

1. Foreign currency transactions are recorded on the basis of exchange rates prevailing on the date of their occurrence.

2. Foreign currency balances as on the Balance Sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year and exchange difference arising there from, is adjusted to the cost of fixed Assets or charged to the Profit and Loss Account, as the case may be.

VII RETIREMENT BENEFITS FOR EMPLOYEES EMPLOYEE BENEFITS

Defined Contribution Plan

The Company makes contribution towards Provident Fund and Employee State Insurance as a defined contribution retirement benefit fund for qualifying employees.

The Provident Fund plan is operated by the Regional Provident Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost, as per the statute, to the retirement benefit schemes to fund the benefits. Employee State Insurance is remitted to Employee State Insurance Corporation.

Defined Benefit Plan

For Defined Benefit Plant the cost of providing benefits is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains or losses are recognized in full in the Profit and Loss Account for the period in which they occur.

(a) GRATUITY

Liability towards gratuity is provided for on actuarial Valuation Basis.

(b) Leave Encashment Benefits

The Company extends benefits of leave to the employees while in service as well as on retirement. Provision for leave encashment benefit is being made on the cash basis.

Short Term Employee Benefits.

Short term employee benefits are recognized as expenses as per Companies scheme based on expected obligation

BUSINESS SEGMENTS

The Company has Two reportable business segments and one geographical segment under Accounting Standard 17 on Segment Reporting.

VIII RESEARCH AND DEVELOPMENT EXPENDITURE

Research and development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to Fixed Assets in the year in which they are incurred.

IX CONTINGENCIES

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of Notes to Accounts

X BORROWINGCOSTS

Borrowings costs incurred in relation to the acquisition, construction of assets are capitalized as part of the costs of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charges as an expense in the year in which these are incurred.

XI TAXES ON INCOME

a. Provision for Tax for current year has been made on the basis of estimated taxable income computed in accordance with the provisions as per Income Tax Act, 1961.

b. Deferred Tax resulting from all timing differences between Book Profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted rate of Tax, to the extent that the timing difference as expected to crystallize. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realized.

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Mar 31, 2010

I The Accounts are prepared on a historical cost convention, all the expenses and income to the extent considered payable and receivable, unless stated otherwise, have been accounted for on accrual basis.

II FIXED ASSETS AND DEPRECIATION:

1. Fixed Assets are Stated at Cost less Depreciation.

2. Depreciation on all Assets, other than leasehold Land / free hold quarry Land is provided on straight line method in accordance with the provision of schedule XIV of the Companies Act, 1956.

3. Depreciation on Free Hold Quarry land has been provided taking economic life of the quarries on 20 Years. In case of abandoning a quarry the remaining book value will be written off in the year it is abandoned.

4. Depreciation on the Fixed Assets added during the year has been provided with reference to the date of acquisition thereof.

III VALUATION OF INVENTORIES ARE MADE AS UNDER

1. Raw Material - At Cost (Weighted Average)

2. Stores & Spares - At Cost (FIFO)

3. Consumables - At Cost (FIFO)

4. Work In Progress - Lower of Cost or Estimated Realizable Value

5. Finished Goods - Lower of Cost or Net Realizable Value

6. Stock in Trade - Lower of Cost or Net Realizable Value

IV SALES

1. Sales are accounted for on passing of title to the customers. Returns and rebates and discounts against goods sold are recognized as and when ascertained and deducted from sales of the respective year.

V MISCELLANEOUS EXPENDITURE

1. Preliminary & Public Issue Expenses:

Preliminary & Public Issue Expenses incurred by the Company will be charged to revenue on a deferred basis over a period of 10 Years on a Commencement of Commercial Production.

2. Quarry Development Expenditure:

Expenditure incurred on quarry development is treated as deferred revenue expenditure to be written off over a period of ten years after commencing regular quarrying Operation. In the event of abandoning the quarrying operation with in the period of Ten Years, the Same shall be written off in that year.

VII TRANSACTIONS IN FOREIGN CURRENCY :

1. Foreign currency transactions are recorded on the basis of exchange rates prevailing on the date of their occurrence.

2. Foreign currency balances as on the Balance Sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year and exchange difference arising there from, is adjusted to the cost of fxed Assets or charged to the Proft and Loss Account, as the case may be.

VIII RETIREMENT BENEFITS FOR EMPLOYEES IV EMPLOYEE BENEFITS

Defned Contribution Plan

The Company makes contribution towards Provident Fund and Employee State Insurance as a defned contribution retirement beneft fund for qualifying employees.

The Provident Fund plan is operated by the Regional Provident Fund Commissioner. Under this scheme, the Company is required to contribute a specifed percentage of payroll cost, as per the statute, to the retirement beneft schemes to fund the benefts. Employee State Insurance is remitted to Employee State Insurance Corporation.

Defned Beneft Plan

For Defned Beneft Plant the cost of providing benefts is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains or losses are recognized in full in the Proft and Loss Account for the period in which they occur .

(a) GRATUITY

Provision for Gratuity is made as determined actuarially under group gratuity scheme of Life Insurance Corporation of India(LIC)

(b) Leave Encashment Benefts

The Company extends benefts of leave to the employees while in service as well as on retirement.

Short Term Employee Benefts.

Short term employee benefts are recognized as expenses as per Companies scheme based on expected obligation

IX RESEARCH AND DEVELOPMENT EXPENDITURE

Research and development expenditure of revenue nature are charged to the Proft and Loss Account, while capital expenditure are added to Fixed Assets in the year in which they are incurred.

X CONTINGENCIES

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of Notes to Accounts

XI BORROWING COSTS

Borrowings costs incurred in relation to the acquisition, construction of assets are capitalized as part of the costs of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charges as an expense in the year in which these are incurred.

XII TAXES ON INCOME

a. Provision for Tax for current year has been made on the basis of estimated taxable income computed in accordance with the provisions as per Income Tax Act, 1961.

b. Deferred Tax resulting from all timing differences between Book Proft and proft as per Income Tax Act, 1961 is accounted for, at the enacted rate of Tax, to the extent that the timing difference as expected to crystallize. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that suffcient future taxable profts will be available against which such deferred tax assets can be realized.

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Mar 31, 2009

I The Accounts are prepared on a historical cost convention, all the expenses and income to the extent considered payable and receivable, unless stated otherwise, have been accounted for on accrual basis.

II FIXED ASSETS AND DEPRECIATION:

1. Fixed Assets are Stated at Cost less Depreciation.

2. Depreciation on all Assets, other than leasehold Land / free hold quarry Land is provided on straight line method in accordance with the provision of schedule XIV of the Companies Act, 1956.

3. Depreciation on Free Hold Quarry land has been provided taking economic life of the quarries on 20 Years. In case of abandoning a quarry the remaining book value will be written off in the year it is abandoned.

4. Depreciation on the Fixed Assets added during the year has been provided with reference to the date of acquisition thereof.

III VALUATION OF INVENTORIES ARE MADE AS UNDER

1. Raw Material - At Cost (Weighted Average)

2. Stores & Spares - At Cost (FIFO)

3. Consumables - At Cost (FIFO)

4. Work In Progress - Lower of Cost or Estimated Realizable Value

5. Finished Goods - Lower of Cost or Net Realizable Value

6. Stock in Trade - Lower of Cost or Net Realizable Value

IV SALES

1. Sales are accounted for on passing of title to the customers. Returns and rebates and discounts against goods sold are recognized as and when ascertained and deducted from sales of the respective year.

V MISCELLANEOUS EXPENDITURE

1. Preliminary & Public Issue Expenses:

Preliminary & Public Issue Expenses incurred by the Company will be charged to revenue on a deferred basis over a period of 10 Years on a Commencement of Commercial Production.

2. Quarry Development Expenditure:

Expenditure incurred on quarry development is treated as deferred revenue expenditure to be written off over a period of ten years after commencing regular quarrying Operation. In the event of abandoning the quarrying operation with in the period of Ten Years, the Same shall be written off in that year.

VI TRANSACTIONS IN FOREIGN CURRENCY :

1. Foreign currency transactions are recorded on the basis of exchange rates prevailing on the date of their occurrence.

2. Foreign currency balances as on the Balance Sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year and exchange difference arising there from, is adjusted to the cost of fixed Assets or charged to the Profit and Loss Account, as the case may be.

VII RETIREMENT BENEFITS FOR EMPLOYEES

VIII EMPLOYEE BENEFITS

Defined Contribution Plan

The Company makes contribution towards Provident Fund and Employee State Insurance as a defined contribution retirement benefit fund for qualifying employees.

The Provident Fund plan is operated by the Regional Provident Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost, as per the statute, to the retirement benefit schemes to fund the benefits. Employee State Insurance is remitted to Employee State Insurance Corporation.

Defined Benefit Plan

For Defined Benefit Plant the cost of providing benefits is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains or losses are recognized in full in the Profit and Loss Account for the period in which they occur.

(a) GRATUITY

Provision for Gratuity is made as determined actuarially under group gratuity scheme of Life Insurance Corporation of India(LIC)

(b) Leave Encashment Benefits

The Company extends benefits of leave to the employees while in service as well as on retairement.

Short Term Employee Benefits.

Short term employee benefits are recognized as expenses as per Companies scheme based on expected obligation

IX RESEARCH AND DEVELOPMENT EXPENDITURE

Research and development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to Fixed Assets in the year in which they are incurred.

X CONTINGENCIES

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of Notes to Accounts

XI BORROWING COSTS

Borrowings costs incurred in relation to the acquisition, construction of assets are capitalized as part of the costs of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charges as an expense in the year in which these are incurred.

XII TAXES ON INCOME

a. Provision for Tax for current year has been made on the basis of estimated taxable income computed in accordance with the provisions as per Income Tax Act, 1961.

b. Deferred Tax resulting from all timing differences between Book Profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted rate of Tax, to the extent that the timing difference as expected to crystallize. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realized.