Accounting Policies of Miven Machine Tools Ltd. Company

Mar 31, 2025

2 SIGNIFICANT ACCOUNTING POLICIES:

a) Basis of preparation of Standalone Ind AS Financial Statements:

Statement of Compliance

These standalone financial statements of the Company have been prepared in accordance with the
recognition and measurement principles laid down in Indian Accounting Standards (hereinafter referred to
as the ''Ind AS'') as notified under section 133 of the Companies Act, 2013 (The Act*) read with Rule 4 of the
Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act
and accountina Drincioles aenerallv accepted in India.

Functional and Presentation Currency

These standalone financial statements are presented in Indian rupees, which is the functional currency of
the Company.

Basis of measurement

These standalone financial statements are prepared under the historical cost convention unless otherwise
indicated and under the accrual system of accounting.

Current /Non-Current Classification

Any asset or liability is classified as current if it satisfies any of the following conditions:

i. the asset/liability is expected to be realized/settled in the Company''s normal operating cycle;

ii. the asset is intended for sale or consumption;

iii. the asset/liability is held primarily for the purpose of trading;

iv. the asset/liability is expected to be realized/settled within twelve months after the reporting period;

v. the asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a

vi. in the case of a liability, the Company does not have an unconditional right to defer settlement of the
liability for at least twelve months after the reporting date,

All other assets and liabilities are classified as non-current.

For the purpose of current/non-current classification of assets and liabilities, the Company has ascertained
its normal operating cycle as twelve months. This is based on the nature of services and the time between
the acquisition of assets or inventories for processing and their realization in cash and cash equivalents.

Use of Estimates and Judgements

The preparation of the Standalone Financial Statements in conformity with Ind AS requires the
Management to make estimates and assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) and the reported income and expenses during the year. The
Management believes that the estimates used in preparation of the Standalone Financial Statements are
prudent and reasonable. Future results could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which the results are known/ materialize.
Estimates and underlying assumptions are reviewed on an ongoing basis. Information about critical
judgments in applying accounting policies, as well as estimates and assumptions that have the most
significant effect to the carrying amounts of assets and liabilities within the next financial year, are included

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Basis of Accounting

The company follows the accrual system of accounting in respect of all items of income and expenditure
except Warranty claims from customers which are accounted in the year of claim / settlement. Non¬
provision for the same on accrual basis is not expected to have a material effect on the account.

b) Property, Plant And Equipment:

Tangible assets are stated at cost of acquisition inclusive of freight, duties, taxes and incidental expenses
relating to acquisition, installation, and erection and commissioning less depreciation. Subsequent
expenditure related to property, plant and equipment is capitalized only when it is probable that future
economic benefits associated with these will flow to the Company and the cost of item can be measured
reliably. Other repairs and maintenance costs are recognized in the Statement of Profit & Loss while

Internally manufactured assets are valued at cost or estimated market price, whichever is lower.

The Company had elected to consider the carrying value of all its property, plant and equipment appearing
in the financial statements prepared in accordance with Accounting Standards notified under the section
133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 and
used the same as deemed cost in the opening Ind AS Balance sheet prepared on 1st April, 2016.

Capital Work in Progress and Capital Advances

Cost of assets not ready for intended use, as on the balance sheet date, is shown as capital work in
progress. Advances given towards acquisition of fixed assets outstanding at each balance sheet date are
disclosed as Other Non-Current Assets.

Depreciation and amortization

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets as
specified under Schedule II of the Companies Act, 2013. Depreciation for assets purchased/sold during a
period is proportionately charged. The useful lives of assets are as follows:

c) Inventories:

Raw materials, stores, spare parts and components are valued on the basis of Weighted Average Method
after providing for obsolescence. Work-in-process is valued at cost (less provision for diminition in
realisable value). Finished goods are valued at cost or net realizable value whichever is lower. Cost for the
purpose of Work in Process and finished goods include material cost valued as per weighted average
method and applicable conversion cost. Materials in transit are valued at cost inclusive of Customs duty
and other incidental expenses payable.

d) Research And Development Expenditure:

Revenue expenditure in carrying out Research and Development activities is charged to statement of profit
& loss of the year in which it is incurred.

e) Revenue Recognition:

(i) Revenue from contract with customers is recognised on transfer of control of promised goods or
services to a customer at an amount that reflects the consideration to which the company is expected to be
entitled to in exchange for those goods or services.

Revenue from sale of products is recognised when the control on goods have been transferred to the
customer. The performance obligation in case of sale of goods is satisfied at a point in time, i.e when the
installaion and commissioning is completed.

Revenue from services is recognised upon completion of performance obligation. /%-

(ii) Revenue from the sale of goods includes excise duty (where applicable) and is measured at the fair
value of the consideration received or receivable (after including fair value allocations related to multiple
deliverable and/or linked arrangements), net of returns, sales tax/Goods and Services Tax (GST) and
applicable trade discounts and allowances. Revenue includes shipping and handling costs billed to the
customer. The timing of the transfer of control varies depending on the individual terms of the sales
agreements.

(iii) Interest income is recognized on time proportion basis.

(iv) Dividend income is recognized, when the right to receive the dividend is established.

f) Borrowing Cost:

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the
acquisition / construction of qualifying assets are capitalized up to the date when such assets are ready for
their intended use and other borrowing costs are charged to the Statement of Profit and Loss as and when
incurred.

g) Foreign Currency Translation:

Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of
transactions. The exchange differences arising on their settlement are dealt with in the statement of profit
and loss in the year of settlement. All monetary items denominated in foreign currency are restated at the
year-end exchange rate and the differences arising from such restatement are recognised in the statement
of profit and loss.

h) Employee Benefits:

(i) Short Term Employee Benefits:

Employee benefits payable wholly within twelve months of rendering the service are classified as short
term. Benefits such as salaries, bonus, ex-gratia etc. are recognised in the period in which the employee
renders the related service.

(ii) Post-Employment Benefits:

(A) Defined Contribution Plans:

The Company has contributed to Provident Fund, Superannuation Fund, Pension Fund and Employee
Deposit Linked Insurance Fund which are defined contribution plans. The contributions paid/ payable
under the scheme to the Regional Provident Fund Commissioner/ LIC of India is recognised during the year
in which employee renders the related service.

(B) Defined Benefit Plans:

(a) Employee Gratuity

Employees'' gratuity is a defined benefit plan which is funded by way of contributions to Group Gratuity
Scheme of Life Insurance Corporation of India (except in respect of Managing Director). The present value
of the obligation under such plan along with liability of Managing Director has been determined based on
completed service at the end of the year as per actuarial valuation under projected unit credit method.
Actuarial gain / losses are recognized in statement of profit and loss immediately.

(b) Compensated Absences (Leave Encashment)

Contribution towards Compensated Absences is a defined benefit plan. Accumulated Compensated
absences, which are expected to be availed or encashed within 12 months from the end of the year are
treated as short term employee benefits.The obligation towards the same is measured at the expected cost
of accumulating compensated absences as the additional amount expected to be paid as a result of the
unused entitlement as at the year end. Accumulated compensated absences, which are expected to be
availed or encashed beyond twelve months from the end of the year are treated as other long term
employee benefits.The company''s liability is actuarially determined(using the Projected Unit Credit Method)
at the end of each year. Actuarial losses/gains are recognized in the statement of Profit and Loss in the
year in which they arise. Compensated absences is covered under Pension and Group schemes of the Life

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i) Taxes On Income:

Provision for current tax is made after considering (i) eligibility to set off brought forward losses under
Income Tax laws and (ii) excess / short liability relating to earlier years. Deferred tax liability on account of
timing differences are provided considering the tax rates and the tax laws enacted as at the Balance Sheet
date. However, deferred tax assets are recognised to the extent there is reasonable probability that
sufficient future profits will be available to utilise the same.

Uncertainty over Income Tax Treatment and Tax Liability thereon

The company has examined the issue of any uncertainty over tax treatment to be used in its income tax
filings and based on prevailing position, is of the opinion that no reasonable uncertainty exists in the
approach adopted by the company.

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Mar 31, 2024

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES AND KEY ACCOUNTING ESTIMATES^-

1 COMPANY OVERVIEW

Miven Machine Tools Limited ("the company") was incorporated in 1985 established for the purpose of manufacture and sale of CNC Machines and other related parts. The company is operating in domestic sector only at the present. The registered office of the company is situated in Hubli, Karnataka.

2 SIGNIFICANT ACCOUNTING POLICIES:

a) Basis of preparation of Standalone Ind AS Financial Statements:

Statement of Compliance

These standalone financial statements of the Company have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified under section 133 of the Companies Act, 2013 (The Act*) read with Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act and accounting principles generally

Functional and Presentation Currency

These standalone financial statements are presented in Indian rupees, which is the functional currency of the Company. Basis of measurement

These standalone financial statements are prepared under the historical cost convention unless otherwise indicated and under the accrual system of accounting.

Current / Non-Current Classification

Any asset or liability is classified as current if it satisfies any of the following conditions:

i. the asset/liability is expected to be realized/settled in the Company''s normal operating cyde;

ii. the asset is intended for sale or consumption;

iii. the asset/liability is held primarily for the purpose of trading;

iv. the asset/liability is expected to be realized/settled within twelve months after the reporting period;

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

vi. in the case of a liability, the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date,

All other assets and liabilities are dassified as non-current.

For the purpose of current/non-current dassification of assets and liabilities, the Company has ascertained its normal operating cyde as twelve months. This is based on the nature of services and the time between the acquisition of assets or inventories for Drocessinq and their realization in cash and cash equivalents.

Use of Estimates and Judgements

The preparation of the Standalone Financial Statements in conformity with Ind AS requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (induding contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the Standalone Finanaal Statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/ materialize. Estimates and underlying assumptions are reviewed on an ongoing basis. Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities within the next finanaal year, are mduded in the _accounting polices appropriately viz.,

Basis of Accounting

The company follows the accrual system of accounting in respect of all items of income and expenditure except Warranty claims from customers which are accounted in the year of daim / settlement. Non-provision for the same on accrual basis is not expected to have a material effect on the account.

b) Property, Plant And Equipment:

Tangible assets are stated at cost of acquisition indusive of freight, duties, taxes and incidental expenses relating to acquisition, installation, and erection and commissioning less depreciation. Subsequent expenditure related to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of item can be measured reliably. Other repairs and maintenance costs are recognized in the Statement of Profit & Loss while incurred.

Internally manufactured assets are valued at cost or estimated market price, whichever is lower.

The Company had elected to consider the carrying value of all its property, plant and equipment appeanng in the financial statements prepared in accordance with Accounting Standards notified under the section 133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 and used the same as deemed cost in the opening Ind AS Balance sheet prepared on 1st April, 2016.

Capital Work in Progress and Capital Advances

Cost of assets not ready for intended use, as on the balance sheet date, is shown as capital work in progress. Advances given towards acquisition of fixed assets outstanding at each balance sheet date are disdosed as Other Non-Current Assets.

Depredation and amortization

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets as specified under Schedule II of the Companies Act, 2013. Depredation for assets purchased/sold during a period is proportionately charged. The useful lives of assets are as follows:

Nature of Asset	Useful Life
Factory Building	30 Years
Plant and Equipment	15 Years
Furniture and Fittinqs	10 Years
Office Equipments	5 Years
Factory Equipments	15 Years
Electrical Installations	10 Years
Jiqs and Fixtures	10 Years
Computers and Printers	3 Years

c) Inventories:

Raw materials, stores, spare parts and components are valued on the basis of Weighted Average Method after providing for obsolescence. Work-in-process is valued at cost (less provision for diminition in realisable value). Finished goods are valued at cost or net realizable value whichever is lower. Cost for the purpose of Work in Process and finished goods indude material cost valued as per weighted average method and applicable conversion cost Materials in transit are valued at cost indusive of Customs duty and other inadental expenses payable.

d) Research And Development Expenditure:

Revenue expenditure in carrying out Research and Development activities is charged to statement of profit & loss of the year in which it is incurred.

e) Revenue Recognition :

(i) Revenue from contract with customers is recognised on transfer of control of promised goods or services to a customer at an amount that reflects the consideration to which the company is expected to be entitled to in exchange for those goods or services.

Revenue from sale of products is recognised when the control on goods have been transferred to the customer. The performance obligation in case of sale of goods is satisfied at a point in time, i.e when the installaion and commissioning is completed.

Revenue from services is recognised upon completion of performance obligation.

(ii) Revenue from the sale of goods includes excise duty (where applicable) and is measured at the fair value of the consideration received or receivable (after including fair value allocations related to multiple deliverable and/or linked arrangements), net of returns, sales tax/Goods and Services Tax (GST) and applicable trade discounts and allowances. Revenue indudes shipping and handling costs billed to the customer. The timing of the transfer of control varies depending on the individual terms of the sales agreements.

(iii) Interest income is recognized on time proportion basis.

(iv) Dividend income is recognized, when the right to receive the dividend is established.

f) Borrowing Cost:

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition / construction of qualifying assets are capitalized up to the date when such assets are ready for their intended use and other borrowing costs are charged to the Statement of Profit and Loss as and when incurred.

g) Foreign Currency Translation:

Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of transactions. The exchange differences arising on their settlement are dealt with in the statement of profit and loss in the year of settlement. All monetary items denominated in foreign currency are restated at the year-end exchange rate and the differences arising from such restatement are recognised in the statement of profit and loss.

h) Employee Benefits:

(i) Short Term Employee Benefits:

Employee benefits payable wholly within twelve months of rendering the service are classified as short term. Benefits such as salaries, bonus, ex-gratia etc. are recognised in the period in which the employee renders the related service.

(ii) Post-Employment Benefits:

(A) Defined Contribution Plans:

The Company has contributed to Provident Fund, Superannuation Fund, Pension Fund and Employee Deposit Linked Insurance Fund which are defined contribution plans. The contributions paid/ payable under the scheme to the Regional Provident Fund Commissioner/ UC of India is recognised during the year in which employee renders the related service.

(B) Defined Benefit Plans:

(a) Employee Gratuity

Employees'' gratuity is a defined benefit plan which is funded by way of contributions to Group Gratuity Scheme of Life Insurance Corporation of India (except in respect of Managing Director). The present value of the obligation under such plan along with liability of Managing Director has been determined based on completed service at the end of the year as per actuarial valuation under projected unit credit method. Actuarial gain / losses are recognized in statement of profit and loss immediately.

(b) Compensated Absences (Leave Encashment)

Contribution towards Compensated Absences is a defined benefit plan. Accumulated Compensated absences, which are expected to be availed or encashed within 12 months from the end of the year are treated as short term employee benefits.The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end. Accumulated compensated absences, which are expected to be availed or encashed beyond twelve months from the end of the year are treated as other long term employee benefits.The company''s liability is actuarially determined(using the Projected Unit Credit Method) at the end of each year. Actuarial losses/gains are recognized in the statement of Profit and Loss in the year in which they arise. Compensated absences is covered under Pension and Group schemes of the Life Insurance

I) Taxes On Income:

Provision for current tax is made after considering (i) eligibility to set off brought forward losses under Income Tax laws and (ii) excess / short liability relating to earlier years. Deferred tax liability on account of timing differences are provided considering the tax rates and the tax laws enacted as at the Balance Sheet date. However, deferred tax assets are recognised to the extent there is reasonable probability that sufficient future profits will be available to utilise the same.

Ungertainitv over Income Tax Treatment and Tax Liability thereon

The company has examined the issue of any uncertainity over tax treatment to be used in its income tax filings and based on prevailing position, is of the opinion that no reasonable uncertainity exists in the approach adopted by the company.

j) Contingent Liabilities And Provisions:

Financial effect of contingent liabilities is disclosed based on information available upto the dates on which financial statements are approved. However, where a reasonable estimate of financial effect cannot be made, suitable disclosures are made with regard to this fact and the existence and nature of the contingent liability.

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

k) Impairment Of Assets:

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the statement of profit & loss to the extent the carrying amount exceeds the recoverable amount.

l) Financial Assets:

(a) Recognition and Measurement

All Financial assets are recognised initially at fair value. Subsequent measurements are done at fair value or amortised cost depending on their classification.

(b) Derecognition

A financial asset or part of a financial asset is derecognised when the rights to receive cash flows from the asset have expired.

(c) Trade and other receivables

Receivables are initially recognised at fair value which approximates to nominal value in almost all cases. These receivables are reviewed for impairment at subsequent dates and suitable adjustments are accordingly made.

(d) Cash and cash equivalents

These comprise cash on hand and deposits with Bank which are convertible to cash and are subject to insiginficant risk of change in value.

(e) Impairment of financial assets

In accordance with Ind AS 109, the company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on financial assets with credit risk exposure.

m) Financial Liabilities:

(a) Recognition and Measurement

Financial Liabilities are classified, at initial recognition, at fair value through statement of Profit and Loss as Loans, Borrowings, Payables or derivaties as appropriate.

Financial Liabilities are measured based on their classification at fair value through Statement of Profit and Loss, amortised cost or fair value through Other Comprehensive Income.

(b) Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

(c) Trade and Other payables

Liabilities are recognised for amounts to be paid in future for goods or services received, whether or not billed by the _supplier.___

n) Reclassification of financial assets and liabilities:

(i) After initial recognition no reclassification is made for financial assets which are equity instruments and financial liabilities. For other financial assets, a reclassification is made prospectively only if there is a change in the business model for managing those assets. tii) .Offsetting Financial Assets and Liabilities

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet only if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis.

o) Earnings Per Share:

The company presents basic and diluted Earnings Per Share data for its ordinary shares. Basic earnings per share is calculated by dividing the Profit or Loss attributable to ordinary shareholders of the Company by weighted average number of ordinary Shares outstanding during the year, adjusted for own shares held.

p) Cash Dividend and Non-cash Distribution to Shareholders:

The company recognises a liability to make Cash or Non Cash Distribution to Equity Share Holders when the distribution is authonsed and the distribution is no longer at the discretion of the company.

q) Events after reporting period:

(i) Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting period. The financial statements are adjusted for such events before authorisation for issue.

(ii) Non Adjusting events are events that are indicative of condition that arose after the end of the reporting period. Non Adjusting events after the reporting date are not accounted, but disclosed.

r) Ind AS 116 - Leases

Ind AS 116 which replaces Ind AS 17 has become operational from 1st April 2019. The Company has adopted Ind AS 116 with effect from April 1, 2019 and applied the standard to all lease contracts existing on that date using the modified retrospective method, recognizing the cumulative effect of initially applying this standard as an adjustment to ''right-of-use asset* as on April 1, 2019.

(1) whether the contract involves the use of a distinct identified asset,

(1) whether the contract involves the use of a distinct identified asset,

(2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and

(3) whether the Company has the right to direct the use of the asset.

The company has hired Factory Building on Operating Lease for a period of less than 12 months (Short Term Lease). The company has no other leases.

In respect of Short Term Leases, lease rent paid is expensed to Statement of Profit and Loss

s) Going Concern

The Net Liabilities of the Company exceed its assets by INR. 1,203.47 Lakhs. Considering the business plans made by the Company, orders or hand, reorganization of product mix and with continued support from the bankers and the Holding Company, the Company expects to recover from the losses. According to the Company, considering all the facts, including renewal of bank working capital limits, sale/disposal of the inventories on hand and the company''s decision to take back on lease a part of the land and factory building thereon for continuing business activities, the assumption of Going concern is not vita ted even though the net worth is eroded.

t) Recent Pronouncements of Government of India

There are no recent pronouncements made by Govement of India, having impact on the financial statements.

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Mar 31, 2014

A. ACCRUAL SYSTEM OF ACCOUNTING :

i) The company follows the accrual system of accounting in respect of all items of expenditure except warranty claim and income.

ii) Warranty claims from customers are accounted in the year of claim / settlement. Non-provision for the same on accrual basis is not expected to have a material effect on. the account.

b. USE OF ESTIMATES:

The preparation of financial statements requires estimation and assumptions to be made that affect reported amount of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. The management believes that the estimates used in preparation of financial statements are prudent and reasonable. Future results may vary from these estimates.

c. FIXED ASSETS:

Fixed assets are stated at cost of acquisition inclusive of freight, duties, taxes and incidental expenses relating to acquisition, installation, erection and commissioning less depreciation. Internally manufactured assets are valued at cost or estimated market price whichever is lower

d. INVENTORIES:

Raw materials, stores'', spare parts, and components are valued on the basis of Weighted Average Method after providing for obsolescence. Work-in-process is valued at cost. Finished goods are valued at cost or net realisable value whichever is lower. Cost for the purpose of Work in Process and finished goods include material cost valued as per weighted average method and applicable conversion cost. As per Accounting Standard 2 excise duty on finished goods lying at works is also accounted and provided in the books of account. Materials in transit are valued at cost inclusive of Customs duty and other incidental expenses payable.

e. DEPRECIATION :

Depreciation oh all assets excepting vehicles and computers are charged on the straight-line method as contemplated in Section 205 (2) (b) of the Companies Act, 1956. Depreciation on vehicles has been charged on the Written Down Value method as contemplated Under Section 205 (2) (a) of the Companies Act, 1956. Depreciation rates are in accordance with Schedule XIV of Companies Act, 1956 except in respect of computers. Deprecation on computers is charged on straight line method at 33.33% p.a.

f. RESEARCH AND DEVELOPMENT EXPENDITURE :

Revenue expenditure in carrying out Research and Development activities is charged to profit & loss account of the year in which it is incurred.

g. REVENUE RECOGNITION :

i) Sales are recognised on shipment to customers after pre-inspection wherever applicable and include recovery towards excise duty.

ii) Interest income is recognized on time proportion basis.

iii) Dividend income is recognized, when the right to receive the dividend is established.

h. BORROWING COST:

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition / construction of qualifying assets are capitalized up to the date when such assets are ready for their intended use and other borrowing costs are charged to profit and loss account.

i) FOREIGN CURRENCY TRANSLATION :

Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of transactions. The exchange differences arising on their settlement are dealt with in the Profit and Loss Account. All monetary items denominated in foreign currency are restated at the year-end exchange rate and the differences arising from such restatement are recognised in the Profit and Loss Account.

j) EMPLOYEE BENEFITS :

(i) Short Term Employee Benefits:

Employee benefits payable wholly within twelve months of rendering the service are classified as short term. Benefits such as salaries, bonus, exgratia etc. are recognised in the period in which the employee renders the related service.

(ii) Post Employment Benefits:

a) Defined Contribution Plans:

The Company has contributed to Provident, Pension, EDLI & Superannuation Funds which are defined contribution plans. The contributions paid/ payable under the scheme to the Regional Provident Fund Commissioner/Life Insurance Corporation of India is recognised during the year in which employee renders the related service.

b) Defined Benefit Plans :

Employees'' gratuity is defined benefit plan. The present value of the obligation under such plan has been determined based on completed service at the end of the year as per actuarial valuation under projected unit credit method. Actuarial gain / losses are recognized in profit and loss account immediately. Leave encashment is a defined benefit plan and is provided on accrual basis as per actuarial valuation,

k) TAXES ON INCOME :

Provision for current tax is made after considering any excess / short in earlier years. Deferred tax liability on account of timing differences are provided considering the tax rates and the tax laws enacted by the Balance Sheet date. However, deferred tax assets are recognised only if future profits are virtually certain.

i) CONTINGENT LIABILITIES AND PROVISIONS:

Financial effect of contingent liabilities is disclosed based on information available upto the dates on which financial statements are approved. However, where a reasonable estimate of financial effect cannot be made, suitable disclosures are made with regard to this fact and the existence and nature of the contingent liability.

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

m) IMPAIRMENT OF ASSETS :

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired; If any such indication exists, the Company estimates the recoverable amount, if the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit & Loss account to the extent the carrying amount exceeds the recoverable amount.

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Mar 31, 2012

1. ACCRUAL SYSTEM OF ACCOUNTING:

a) The company follows the accrual system of accounting in respect of all items of expenditure except warranty claim and income.

b) Warranty claims from customers are accounted in the year of claim/settlement. Non provision for the same on accrual basis is not expected to have a material effect on the account.

2. USE OF ESTIMATES:

The preparation of financial statements requires estimation and assumptions to be made that affect reported amount of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. The management believes that the estimates used in preparation of financial statements are prudent and reasonable. Future results may vary from these estimates.

3. FIXED ASSETS:

Fixed assets are stated at cost of acquisition inclusive of freight, duties, taxes and incidental expenses relating to acquisition, installation, erection and commissioning less depreciation. Internally manufactured assets are valued at cost or estimated market price whichever is lower.

4. INVENTORIES:

Raw materials, stores, spare parts and components are valued on the basis of Weighted average Method after providing for obsolescence. Work-in-process is valued at cost. Finished goods are valued at cost or net realisable value whichever is lower. Cost for the purpose of Work in Process and finished goods include material cost valued as per weighted average method and applicable conversion cost. As per Accounting Standard 2 excise duty on finished goods lying at works is also accounted and provided in the books of account. Materials in transit are valued at cost inclusive of Customs duty and other incidental expenses payable.

5. DEPRECIATION:

Depreciation on all assets excepting vehicles is charged on the straight-line method as contemplated in Section 205 (2)(b) of the Companies Act, 1956. Depreciation on vehicles has been charged on the Written Down Value method as contemplated Under Section 205 (2)(a) of the Companies Act, 1956. Depreciation rates are in accordance with Schedule XIV of Companies Act, 1956 except in respect of computers. Deprecation on computers is charged on straight line method at 33.33% p.a.

6. RESEARCH AND DEVELOPMENT EXPENDITURE:

Revenue expenditure in carrying out Research and Development activities is charged to profit and loss account of the year in which it is incurred.

7. REVENUE RECOGNITION:

Sale of Machine is recognised on shipment to customers after pre-inspection wherever applicable and includes recovery towards excise duty.

8. BORROWING COST:

Interest and other costs in connection with borrowing of funds to the extent related/attributed to the acquisition/construction of qualifying assets are capitalised upto the date when such assets are ready for their intended use and other borrowing costs are charged to profit and loss account.

9. FOREIGN CURRENCY TRANSLATION :

Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of transactions. The exchange differences arising on their settlement are dealt with in the Profit and Loss Account. All monetary items denominated in foreign currency are restated at the year end exchange rate and the differences arising from such restatement are recognised in the Profit and Loss Account.

10. EMPLOYEE BENEFITS:

i) Short Term Employee Benefits: Employee benefits payable wholly within twelve months of rendering the service are classified as short term. Benefits such as salaries, bonus, exgratia, etc., are recognised in the period in which the employee renders the related service.

ii) Post Employment Benefits :

a) DEFINED CONTRIBUTION PLANS: The Company has contributed to Provident, Pension, EDLI & Superannuation Funds which are defined contribution plans. The contributions paid/payable under the scheme to the Regional Provident Fund Commissioner/Life Insurance Corporation of India is recognised during the year in which employee renders the related service.

b) DEFINED BENEFIT PLANS: Employees' gratuity is defined benefit plan. The present value of the obligation under such plan has been determined based on completed service at the end of the year as per actuarial valuation under projected unit credit method. Actuarial gain/losses are recognized in profit and loss account immediately. Leave encashment, a defined benefit plan is provided on accrual basis as per actuarial valuation.

11. TAXES ON INCOME:

Provision for current tax is made after considering any excess/short in earlier years. Deferred tax liability on account of timing differences are provided considering the tax rates and the tax laws enacted by the Balance Sheet date. However, deffered tax assets are recognised only if future profits are virtually certain.

12. CONTINGENT LIABILITIES AND PROVISIONS :

Financial effect of contingent liabilities is disclosed based on information available upto the dates on which financial statements are approved. However, where a reasonable estimate of financial effect cannot be made, suitable disclosures are made with regard to this fact and the existence and nature of the contingent liability.

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

13. IMPAIRMENT OF ASSETS :

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit and Loss account to the extent the carrying amount exceeds the recoverable amount.

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Mar 31, 2010

1. ACCRUAL SYSTEM OF ACCOUNTING

a) The company follows the accrual system of accounting in respect of all items of expenditure except warranty claim and income.

b) Warranty claims from customers are accounted in the year of claim 7 settlement. Non-provision for the same on accrual basis is not expected to have a material effect on the account.

2. USE OF ESTIMATES

The preparation of financial statements requires estimation and assumptions to be made that affect reported amount of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. The management believes that the estimates used in preparation of financial statements are prudent and reasonable. Future results may vary from these estimates.

3. fixed Assets

Fixed assets are stated at cost of acquisition inclusive of freight, duties, taxes and incidental expenses relating to acquisition, installation, erection and commissioning less depreciation.

Internally manufactured assets are valued at cost or estimated market price whichever is lower.

4. INVENTORIES

Raw materials, stores, spare parts and components are valued on the basis of Weighted Average Method after providing for obsolescence. Work-in-process is valued at cost. Finished goods are valued at cost or net realisable value whichever is lower. Cost for the purpose of Work in Process and finished goods include material cost valued as per weighted average method and applicable conversion cost. As per Accounting Standard 2 excise duty on-finished goods lying at works is also accounted and provided in the books of account. Materials in transit are valued at cost inclusive of Customs duty and other incidental expenses payable.

5. DEPRECIATION

Depreciation on all assets excepting vehicles is charged on the straight-line method as contemplated in Section 205 (2) (b) of the Companies Act, T956. Depreciation on vehicles has been charged on the Written Down Value method as contemplated Under Section 205 (2) (a) of the Companies Act, 1956. Depreciation rates are in accordance with Schedule XIV of the Companies Act, 1956 except in respect of computers. Depreciation on computers is charged on straight line method at 33.33% p.a.

6. RESEARCH AND DEVELOPMENT EXPENDITURE

Revenue expenditure in carrying out Research and Development activities is charged to profit & loss account of the year in which it is incurred.

7. REVENUE RECOGNITION

Sale of Machine is recognised on shipment to customers after pre-inspection wherever applicable and includes recovery towards excise duty..

8. BORROWING COST

Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition / construction of qualifying assets are capitalised up to the date when such assets are ready for their intended use and other borrowing costs are charged to profit and loss account.

9. FOREIGN CURRENCY TRANSLATION

Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of transactions. The exchange differences arising on their settlement are dealt with in the. Profit and Loss Account. All monetary items denominated in foreign currency are restated at the year-end exchange rate and the differences arising from such. restatement are recognised in the Profit and Loss Account.

10. EMPLOYEE BENEFITS

(i) Short Term Employee Benefits :

Employee benefits payable wholly within twelve months of rendering the service are classified as short term. Benefits such as salaries, bonus, exgratia etc. are recognised in the period in which the employee renders the related service.

(ii) Post Employment Benefits :

a) Defined Contribution Plans :

The Company has contributed to Provident, Pension, EDLI and Superannuation Funds which are defined contribution plans. The contribution paid/payable under the scheme to the Regional Provident Fund Commissioner / Life Insurance Corporation of India is recognised during the year in which employee renders the related service. The Company also contributes to the Officers Provident Fund Trust for a few senior employees in respect of which interest shortfall, if any, is accounted on a year to year basis.

b) Defined Benefit Plans :

Employees gratuity is defined benefit plan. The present value of the obligation under such plan has been determined based on completed service at the end of the year as per acturial valuation under projected unit credit method. Acturial gain / losses are recognized in profit and loss account immediately. Leave encashment a defined benefit plan is provided on accrual basis as per actuarial valuation.

11. TAXES ON INCOME

Provision for current tax is made after considering any excess / short in earlier years. Deferred tax liability on account of timing differences are provided considering the tax rates and the tax laws enacted by the Balance Sheet date. However, deferred tax assets are recognised only if future profits are virtually certain.

12. CONTINGENT LIABILITIES AND PROVISIONS

Financial effect of contingent liabilities is disclosed based on information available upto the dates on which financial statements are approved. However, where a reasonable estimate of financial effect cannot be made, suitable disclosures are made with regard, to this fact and the existence and nature of the contingent liability.

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

13. IMPAIRMENT OF ASSETS

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the assets exceeds its recoverable amount, an impairment loss is, recognized in the profit & Loss account to the extent the carrying amount exceeds the recoverable amount.