Accounting Policies of MPL Plastics Ltd. Company

Mar 31, 2024

Note 2: Significant Accounting Policies, Accounting Judgements, Estimates and Assumptions:

(A) Significant accounting policies:

2.1 STATEMENT OF COMPLIANCE

These financials statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 read with
the Companies (Indian Accounting Standards) Amendment Rules, 2017 and the Guidance Notes and other authoritative pronouncements
issued by the Institute of Chartered Accountants of India (ICAI).

2.2 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements have been prepared on the historical cost basis, except for certain financial instruments which are measured at
fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair
value of the consideration given in exchange for goods and services.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming that market participants act in their best economic interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using
the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure
fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

2.3 CURRENT/ NON-CURRENT CLASSIFICATION OF ASSETS AND LIABILITIES:

An asset is considered as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle,

• Held primarily for the purpose of trading,

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period.

All other assets are classified as non-current.

A liability is considered as current when:

• It is expected to be settled in normal operating cycle,

• It is held primarily for the purpose of trading,

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

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

2.4 USE OF ESTIMATES:

The presentation of financial statements is in conformity with the recognition and measurement principles of Ind AS, which requires the
management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities, disclosures
relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expense for the periods
presented.

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

2.5 REVENUE RECOGNITION:

Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised products or services to customers
in an amount that reflects the consideration the Company expect to receive in exchange for those products or services.

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the
customer and payment by the customer exceeds one year. As a consequence, it does not adjust any of the transaction prices for the time
value of money.

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

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

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

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

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

2.6 PROPERTY, PLANT AND EQUIPMENT:

Property, Plant and Equipment are recorded at their cost of acquisition, net of indirect taxes, less accumulated depreciation and impairment
losses, if any. The cost thereof comprises of its purchase price, including import duties and other non-refundable taxes or levies and any
directly attributable cost for bringing the asset to its working condition for its intended use.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit or Loss when
the asset is derecognised.

2.7 DEPRECIATION:

Depreciation on Property, Plant and Equipment is provided on Straight Line Method basis in accordance with the provisions of Schedule
II to the Companies Act, 2013. The Management believes that the estimated useful lives as per the provisions of Schedule II to the
Companies Act, 2013, are realistic and reflect fair approximation of the period over which the assets are likely to be used.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end
and adjusted prospectively, if appropriate.

2.8 INVENTORIES:

• Raw Material - At lower of cost and net realizable value. Cost is determined on FIFO basis.

• Semi Finished Goods - At lower of cost and net realizable value. Cost includes Raw Materials and Conversion Cost, except those
purchased directly which are valued at cost.

• Finished Goods - At lower of cost and net realizable value. Cost is determined using the absorption costing principles.

• Packing Materials - At lower of cost and net realizable value. Cost is determined on weighted average basis.

Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and
condition. Due allowance is estimated and made for defective and obsolete items, wherever necessary.

Obsolete, slow moving and defective inventories are identified from time to time and where necessary; a provision is made for such
inventory.

2.9 FINANCIAL INSTRUMENTS:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another
entity.

(i) Financial Assets:

Initial Recognition and Measurement:

All financial assets are recognised initially at fair value. In the case of financial assets not recorded at fair value through profit or loss,
transaction costs that are attributable to the acquisition of the financial asset are included therein.

Subsequent Measurement:

For purposes of subsequent measurement, financial assets are classified in three categories:

• Financial assets at amortised cost

• Equity instruments measured at fair value through other comprehensive income (FVTOCI)

• Investments measured at fair value through Profit & Loss (FVTPL)

Financial Assets at Amortised Cost:

A financial asset is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest
(SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR)
method. Amortised cost is calculated by taking into account any discount or premium on acquisition and any fees or costs that are
an integral part of the EIR.

Equity Instruments at FVTOCI:

For equity instruments not held for trading, an irrevocable choice is made on initial recognition to measure it at FVTOCI. All fair value
changes on such investments, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to
profit or loss, even on sale or disposal of the investment. However, on sale or disposal the Company may transfer the cumulative
gain or loss within equity.

Financial Assets at FVTPL

Even if an instrument meets the two requirements to be measured at amortised cost or fair value through other comprehensive
income, a financial asset is measured at fair value through profit or loss if doing so eliminates or significantly reduces a measurement
or recognition inconsistency (sometimes referred to as “accounting mismatch”) that would otherwise arise from measuring assets or
liabilities or recognising the gains and losses on them on different bases. All other financial assets are measured at fair value through
profit or loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised
(i.e. removed from the Company''s statement of financial position) when:

i) The rights to receive cash flows from the asset have expired, or

ii) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a ‘''pass-through'''' arrangement and either;

a. The Company has transferred substantially all the risks and rewards of the asset, or

b. The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset.

Impairment of financial assets

The Company measures the expected credit loss associated with its assets based on historical trend, industry practices and the
business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on
whether there has been a significant increase in credit risk.

ii) Financial Liabilities:

Initial Recognition and Measurement:

All financial liabilities are recognised 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 loans and borrowings.

Subsequent Measurement:

This is dependent upon the classification thereof as under:

Loans and Borrowings:

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method.
Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation
process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part
of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

De-recognition:

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

Equity Instruments:

An equity instrument is any contract that evidences a residual interest in the assets of an entity in accordance with the substance of
the contractual arrangements. These are recognised at the amount of the proceeds received, net of direct issue costs.

2.10 EMPLOYEE BENEFITS:

Short term employee benefits:

All employee benefits falling due wholly within 12 months of rendering the services are classified as short term employee benefits and are
recognised as an expense in the period in which the employee renders the related services.

Post - Employment benefits:

Defined Contribution Plan

The Company''s contribution towards the provident fund and the social securities for certain eligible employees are considered to be
defined contribution plans as the Company does not carry any further obligations apart from the contributions made on a monthly basis.

Defined Benefit Plan

Liabilities towards Defined Benefit Schemes viz. Gratuity benefits are determined using the Projected Unit Credit Method. Actuarial
valuations under the Projected Unit Credit Method are carried out at the Balance Sheet date. Actuarial gains and losses are recognised
immediately in the Balance Sheet with a corresponding effect in the Statement of Other Comprehensive Income. Past service cost is
recognised immediately in the Statement of Profit and Loss.

2.11 TAXES ON INCOME:

Current Income Taxes:

Current income tax liabilities are measured at the amount expected to be paid to the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised directly in equity is recognised in other comprehensive income / equity and not in the
statement of profit and loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred Taxes:

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, when the deferred tax liability arises from an asset or liability in
a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit
or loss.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognised to the extent that 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 utilised, except, when the deferred tax
asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

The carrying amount of deferred 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 all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are
re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the
deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in
correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current
tax liabilities.

2.12 TRANSACTIONS IN FOREIGN CURRENCY:

Transactions in foreign currencies are initially recorded at their respective exchange rate prevailing at the date the transaction first
qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at rate of exchange prevailing as at the reporting date.
Differences arising on settlement or translation of monetary items are recognised as income or expenses in the period in which they arise.

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Mar 31, 2014

1. GENERAL:

Unless otherwise stated hereunder the financial accounts have been drawn up on Historical Cost Convention generally following accrual basis of accounting.

2. REVENUE RECOGNITION:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of Products:

Revenue Is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Sales are disclosed net of sales tax/VAT, discounts and returns, as applicable.

3. FIXED ASSETS:

Tangible

Fixed Assets are recorded at cost of acquisition/construction, which comprises of purchase consideration and other directly attributable cost of bringing an assets to Its working condition for the Intended use.

4. DEPRECIATION:

Depreciation on Fixed Assets has been provided on Straight Line Method In accordance with the rates prescribed In Schedule XIV of the Companies Act, 1956 as amended by the Notification GSR 756 (E) dated 16.12.93 Issued by the department of Company Affairs.

5. INVE8TMENT8:

Long Term Investments are stated at cost. However, provision for diminution In value Is made to recognize a decline other than temporary In the value of the Investments.

6. INVENTORIES:

Inventories are valued on the basis given below:

(a) Raw Material ¦ At lower of cost and net realizable value. Cost Is determined on FIFO bails.

(b) Semi Finished Goods - At lower of cost and net realizable value. Cost Inoludes Raw Materials and Conversion Coat, exoept thoae purchased directly whloh are valued at cost.

(o) Finished Goods - At lowar of cost and net realizable valua. Coat la determined using the abaorptlon coating prlnolplaa,

(d) Packing Materials - At lowar of oost and net realizable valua. Coat la determined on walghtad average baala.

7. EMPLOYEE BENEFIT SCHEMES:

(a) Provident Fund- Eligible employeea of the Company receive benefits under the Provldant Fund whloh la a defined contribution plan, where both tha employee and tha Company make monthly oontrlbutlona aqual to speolfled percentage of the covered employee''a salary. Theae contributions are made to tha funds administered and managed by the Government, The Company''a monthly oontrlbutlona are charged to revenue In the period they are Incurred.

(b) Gratuity = In accordance with the Payment of Gratuity Act 1972, the Company provldea for gratuity a defined retirement benefit plan ("the Gratuity Plan") covering eligible employeea. Liabilities with regard! to auoh Gratuity Plan are determined by actuarial valuation and the exoets of aotuarlal valuation over the fund available ¦- oorpua under Company''a LIC Group Gratuity Polloy Is provided and charged to revenue in the period along with the contribution made to the aald policy.

(o) Provision for unutilized Leave- The accrual for unutilized leave la determined for the entire available leave balanoe standing to the credit of the employees at the year and and charged to tha revenue In the period.

8. FOREIGN CURRENCY TRANSACTIONS:

Tranaaotlona In Foreign Currency are aooounted at the exohange rate prevailing on the date of the transaction, Year end balances of the foreign ourrenoy transactions are translated at the year end rate and the oorreapondlng effect Is given In the respective account,

9. EXCISE DUTY:

(a) Exclae duty Is charged to Statement of Profit end Loaa In the year of oleeranoe of gooda.

(b) CENVAT credits on materials purohaaed for production are taken Into aooount at the time of purohaae and oenvat oredlta on purchase of oapltal Itema wherever applicable are taken Into aooount aa and when the assets are Installed to the oredlt of respective purchase and asset accounts. The Cenvat oredlta so taken are utilised for payment of exolso duty on goods manufactured. The unutilised Cenvat credit Is carried forward In the books,

10. EARNING PER SHARE:

In determining earnings per share, the Company considers the net profit/(loss) after tax for the year attributable to equity shareholders. The number of shares used in computing basic earnings per share is the we jhted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

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Mar 31, 2013

1. GENERAL:

Unless otherwise stated hereunder the financial accounts have been drawn up on Historical Cost Convention generally following accrual basis of accounting.

2. REVENUE RECOGNITION:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of Products:

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Sales are disclosed net of sales tax/VAT, discounts and returns, as applicable.

3. FIXEDASSETS:

Tangible

Fixed Assets are recorded at cost of acquisition/construction, which comprises of purchase consideration and other directly attributable cost of bringing an assets to its working condition for the intended use.

4. DEPRECIATION:

Depreciation on Fixed Assets has been provided on Straight Line Method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956 as amended by the Notification GSR 756 (E) dated 16.12.93 issued by the department of Company Affairs.

5. INVESTMENTS:

Long Term Investments are stated at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

6. INVENTORIES:

Inventories are valued on the basis given below:

(a) Raw Material -At lower of cost and net realizable value. Cost is determined on FIFO basis.

(b) Semi Finished Goods - At lower of cost and net realizable value. Cost includes Raw Materials and Conversion Cost, except those purchased directly which are valued at cost.

(c) Finished Goods - At lower of cost and net realizable value. Cost is determined using the absorption costing principles.

(d) Packing Materials - At lowerofcost and net realizable value. Cost is determined on weighted average basis.

7. EMPLOYEE BENEFIT SCHEMES:

(a) Provident Fund- Eligible employees of the Company receive benefits under the Provident Fund which is a defined contribution plan, where both the employee and the Company make monthly contributions equal to specified percentage of the covered employee''s salary. These contributions are made to the funds administered and managed by the Government. The Company''s monthly contributions are charged to revenue in the period they are incurred.

(b) Gratuity - In accordance with the Payment of Gratuity Act 1972, the Company provides for gratuity a defined retirement benefit plan ("the Gratuity Plan") covering eligible employees. Liabilities with regards to such Gratuity Plan are determined by actuarial valuation and the excess of actuarial valuation over the fund available as corpus under Company''s LIC Group Gratuity Policy is provided and charged to revenue in the period along with the contribution made to the said policy.

(c) Provision for unutilized Leave- The accrual for unutilized leave is determined for the entire available leave balance standing to the credit of the employees at the year end and charged to the revenue in the period.

8. FOREIGN CURRENCY TRANSACTIONS:

Transactions in Foreign Currency are accounted at the exchange rate prevailing on the date of the transaction. Year end balances of the foreign currency transactions are translated at the year end rate and the corresponding effect is given in the respective account.

9. EXCISE DUTY:

(a) Excise duty is charged to Statement of Profit and Loss in the year of clearance of goods.

(b) CENVAT credits on materials purchased for production are taken into account at the time of purchase and cenvat credits on purchase of capital items wherever applicable are taken into account as and when the assets are installed to the credit of respective purchase and asset accounts. The Cenvat credits so taken are utilised for payment of excise duty on goods manufactured. The unutilised Cenvat credit is carried forward in the books.

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Mar 31, 2012

1. GENERAL:

Unless otherwise stated hereunder the financial accounts have been drawn up on Historical Cost Convention generally following accrual basis of accounting.

2. FIXED ASSETS:

Fixed Assets are recorded at cost of acquisition/construction.

3. DEPRECIATION:

Depreciation on Fixed Assets has been provided on Straight Line Method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956 as amended by the Notification GSR 756 (E) dated 16.12.93 issued by the department of Company Affairs.

4. INVESTMENTS:

Investments are recorded at cost.

5. INVENTORIES:

Inventories are valued on the basis given below:

(a) Raw Material -At Cost.

(b) Semi Finished Goods - At Direct Cost i.e. Raw Materials and Conversion Cost, except those purchased directly which are valued at cost.

(c) Finished Goods - At Absorption Cost.

(d) Packing Materials-At Cost.

6. EMPLOYEE BENEFIT SCHEMES:

(a) Provident Fund- Eligible employees of the Company receive benefits under the Provident Fund which is a defined contribution plan, where both the employee and the Company make monthly contributions equal to specified percentage of the covered employee's salary. These contributions are made to the funds administered and managed by the Government. The Company's monthly contributions are charged to revenue in the period they are incurred.

(b) Gratuity - In accordance with the Payment of Gratuity Act 1972, the Company provides for gratuity a defined retirement benefit plan ("the Gratuity Plan") covering eligible employees. Liabilities with regards to such Gratuity Plan are determined by actuarial valuation and the excess of actuarial valuation over the fund available as corpus under Company's LIC Group Gratuity Policy is provided and charged to revenue in the period along with the contribution made to the said policy.

(c) Provision for unutilized Leave- The accrual for unutilized leave is determined for the entire available leave balance standing to the credit of the employees at the year end and charged to the revenue in the period.

7. FOREIGN CURRENCY TRANSACTIONS:

Transactions in Foreign Currency are accounted at the exchange rate prevailing on the date of the transaction. Year end balances of the foreign currency transactions are translated at the year end rate and the corresponding effect is given in the respective account.

8 EXCISE DUTY:

(a) Excise duty is charged to Profit and Loss Account in the year of clearance of goods.

(b) CENVAT credits on materials purchased for production are taken into account at the time of purchase and cenvat credits on purchase of capital items wherever applicable are taken into account as and when the assets are installed to the credit of respective purchase and asset accounts. The Cenvat credits so taken are utilised for payment of excise duty on goods manufactured. The unutilised Cenvat credit is carried forward in the books.

9. EARNING PER SHARE:

In determining earnings per share, the Company considers the net profit/(loss) after tax for the year attributable to equity shareholders. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

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Mar 31, 2010

1. GENERAL:

Unless otherwise stated hereunder the financial accounts have been drawn up on Historical Cost Convention generally following accrual basis of accounting.

2. FIXEDASSETS:

Fixed Assets are recorded at cost of acquisition/construction.

3. DEPRECIATION:

Depreciation on Fixed Assets has been provided on Straight Line Method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956 as amended by the Notification GSR 756 (E) dated 16.12.93 issued by the department of Company Affairs.

4. INVESTMENTS:

Investments are recorded at cost.

5. INVENTORIES:

Inventories are valued on the basis given below:

(a) Raw Material -At Cost.

(b) Semi Finished Goods - At Direct Cost i.e. Raw Materials and Conversion Cost, except those purchased directly which are valued at cost.

(c) Finished Goods-At Absorption Cost.

(d) Packing Materials-At Cost.

6 EMPLOYEE BENEFIT SCHEMES:

(a) Provident Fund- Eligible employees of the company receive benefits underthe Provident Fund which is a defined contribution plan, where both the employee and the company make monthly contributions equal to specified percentage of the covered employees salary. These contributions are made to the funds administered and managed by the Government. The Companys monthly contributions are charged to revenue in the period they are incurred.

(b) Gratuity - In accordance with the Payment of Gratuity Act 1972, the company provides for gratuity a defined retirement benefit plan ("the Gratuity Plan") covering eligible employees. Liabilities with regards to such Gratuity Plan are determined by actuarial valuation and the excess of actuarial valuation over the fund available as corpus under companys LIC Group Gratuity Policy is provided and charged to revenue in the period along with the contribution made to the said policy. The actuarial assumptions in arriving at the provision of gratuity liability as at the year end amounting to Rs. 1,14,453 are as follows;

i) Discount Rate (p.a.)(%) 7.00

ii) Salary escalation rate 4%

iii) Retirement age 60 Years.

(c) Provision for unutilized Leave- The accrual for unutilized leave is determined for the entire available leave balance standing to the credit of the employees at the year end and charged to the revenue in the period.

7. FOREIGN CURRENCY TRANSACTIONS:

Transactions in Foreign Currency are accounted at the exchange rate prevailing on the date of the transaction. Year end balances of the foreign currency transactions are translated at the year end rate and the corresponding effect is given in the respective account.

8. EXCISE DUTY:

(a) Excise duty is charged to Profit and Loss Account in the year of clearance of goods.

(b) CENVAT credits on materials purchased for production are taken into account at the time of purchase and cenvat credits on purchase of capital items wherever applicable are taken into account as and when the assets are installed to the credit of respective purchase and asset accounts. The Cenvat credits so taken are utilised for payment of excise duty on goods manufactured. The unutilised Cenvat credit is carried forward in the books.

9. EARNING PER SHARE:

In determining earnings per share, the Company considers the net profit/(loss) after tax for the year attributable to equity shareholders. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.