Accounting Policies of Neil Industries Ltd. Company

Mar 31, 2025

(c ) Summary of Significant Accounting Policies:

(a)(i) Property, Plant and Equipment:

Freehold land is carried at historical cost. All other items of Property, plant and equipment are shown at cost,
less accumulated depreciation and impairment, if any. The cost of an item of property, plant and equipment
comprises its cost of acquisition inclusive of inward freight, import duties, and other nonrefundable taxes or
levies and any cost directly attributable to the acquisition / construction of those items; any trade discounts
and rebates are deducted in arriving at the cost of acquisition.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to
statement of profit or loss during the reporting period in which they are incurred.

Gain or losses arising on disposal of property, plant and equipment are recognised in profit or loss.

(ii) Depreciation and amortisation:

Depreciation has been provided based on useful life assigned to each asset in accordance with Schedule II of
the Companies Act, 2013.

Depreciation on property, plant and equipment is provided on the straight-line method, computed on the
basisof useful lives mentioned below:

(b) Impairment of non financial assets

At the date of balance sheet, if there are indications of impairment and the carrying amount of the cash
generating unit exceeds its recoverable amount (i.e. the higher of the fair value less costs of disposal and
value in use), an impairment loss is recognised. The carrying amount is reduced to the recoverable amount
and the reduction is recognised as an impairment loss in the profit or loss. The impairment loss recognised in
the prior accounting period is reversed if there has been a change in the estimate of recoverable amount. Post
impairment, depreciation is provided on the revised carrying value of the impaired asset over its remaining
useful life.

Reasonable assumptions are made by the management in estimating the value-in-use and fair value less
costs of disposal. Management has considered the indicators required for impairment testing and estimated
reliably that there is no impairment loss for the purpose of Ind AS 36.

(c) Employees Retirement Benefits:

This being the first year of applicability of gratuity, management is in the process of implemantaion of the
scheme with regard to gratuity from the next year onward.

(d) Revenue recognition:

Sales of goods/services

Revenue is measured at the fair value of the consideration received or receivable.

Interest Income

Interest Income is included in the startement of profit and loss. Interest income is recognised on a time
proportion basis taking into account the amount outstanding and the effective interest rate when there is a
reasonable certainty as to realisation.

Fixed deposit interest is accounted as per statement/documents issued by banks inclusive of related tax
deducted at source.

Dividend Income

Dividend Income is accounted on receipt basis.

(e) Inventories

Inventories are valued at lower of cost or net realisable value.

(f) Taxes on Income:

Provision is made for income tax liability estimated to arise on the results for the year at the current rate of
Tax in accordance with Income Tax Act, 1961.

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

Deferred Tax arising on account of depreciation is recognised only to the extent there is a reasonable
certainty of realisation.

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Mar 31, 2024

Note 1 : Summary of significant accounting policies & other explanatory information :

(a) Corporate Information

Neil Industries Limited ("the Company") is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its shares are listed in Bombay Stock Exchange. Hie Company is primarily engaged in Loan and Financing.

(b) Basis of Preparation:

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

The financial statements have been prepared on an accrual basis and under the historical cost convention except certain financial assets and liabilities are measured at fair value (refer accounting policy regarding financial instruments).

Accounting policies have been consistently applied to all period presented, unless otherwise stated.

I he financial statements are presented in Indian Rupee (INR) and all values are rounded to the nearest Lakhs, except otherwise indicated

Comparative information has been restated to accord with changes in presentation made in the current year except where otherwise stated.

(c) Summary of Significant Accnuntinu Policies:

(a)(i) Property, Plant and Equipment:

Freehold land is carried at historical cost. All other items of Property, plant and equipment are shown at cost, less accumulated depreciation and impairment, if any. The cost of an item of property , plant and equipment comprises its cost of acquisition inclusive of inward freight, import duties, and other nonrefundable taxes or levies and any cost directly attributable to the acquisition / construction of those items, any trade discounts and rebates are deducted in arriving at the cost of acquisition.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of tlie item can be measured reliably. All other repairs and maintenance are charged to statement of profit or loss during the reporting period in which they are incurred.

Gain or losses arising on disposal of property, plant and equipment are recognised in profit or loss.

(ii) Depreciation and amortisation:

Depreciation has been provided based on useful life assigned to each asset in accordance with Schedule II of the Companies Act, 2013.

Depreciation on property , plant and equipment is provided on the straight-line method, computed on the basis of useful lives mentioned below:

Asset Category					Estimated Useful Life
Factory Building					30 Years
Furniture and Fixtures					10 Years
Office Equipment					5 Years
Vehicles					10 Years
Motor Vehicles					8 Years

(h) Impairment of non-finuncial assets

At the date of balance sheet, if there are indications of impairment and the earn ing amount of the cash generating unit exceeds its recoverable amount (i.e. the higher of the fair value less costs of disposal and value in use), an impairment loss is recognised. The carrying amount is reduced to the recoverable amount and the reduction is recognised as an impairment loss in the profit or loss. The impairment loss recognised in the prior accounting period is reversed if there has been a change in the estimate of recoverable amount. Post impairment, depreciation is provided on the revised earn ing value of the impaired asset over its remaining useful life.

Reasonable assumptions are made by the management in estimating the value-in-use and fair value less costs of disposal. Management lias considered the indicators required for impairment testing and estimated reliably that there is no impairment loss for the purpose of IndAS 36.

(c) Employees Retirement Benefits:

This being the first year of applicability of gratuity, management is in the process of implementation of the scheme with regard to gratuity from the next year onward.

(d) Revenue recognition:

Sales of goods/services

Revenue is measured at the fair value of the consideration received or receivable.

Interest Income

Interest Income is included in the statement of profit and loss. Interest income is recognised on a time proportion basis taking into account the amount outstanding and the effective interest rate when there is a reasonable certainty as to realisation.

Fixed deposit interest is accounted as per statementAlocumcnts issued by banks inclusive of related tax deducted at source.

Dividend Income

Dividend Income is accounted on receipt basis.

(e) Inventories

Inventories are valued at low er of cost or net realisable value.

(D Taxes on Income:

Provision is made for income tax liability estimated to arise on the results for the y ear at the current rate of Tax in accordance with Income fax Act, 1961.

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

Deferred Tax arising on account of depreciation is recognised only to the extent there is a reasonable certainty of realisation.

(g) Provisions, Contingent liabilities and contingent assets:

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at tire end of the reporting period

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably.

All known Liabilities, wherever material, are provided for and Liabilities, which are disputed, are referred to by way of Notes on Accounts.

(h) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(i) Earnings Per Share:

Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by tlie weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding dining the period is adjusted for events of bonus issue: bonus element in a rights issue to existing shareholders: share split: and reverse share split (consolidation of shares).

(j) Financial Instruments:

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. All the financial assets and liabilities are measured initially at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial asset and financial liabilities (other than financial assets and liabilities carried at fair value through profit or loss) are added or deducted from the fair value measured on initial recognition of financial asset or financial liability⁷.

(i) Classification and Measurement

All the financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of financial asset (other than financial assets carried at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset

Subsequent measurement of a financial assets depends on its classification i.e., financial assets carried at amortised cost or fair value (either through other comprehensive income or through profit or loss). Such classification is determined on the basis of Company''s business model for managing the financial assets and the contractual terms of the cash flow s.

The Company''s financial assets primarily consists of cash and cash equivalents, trade receivables, loans to employ ees and security deposits etc. which are classified as financial assets carried at amortised cost.

(ii) Amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a financial assets that is subsequently measured at amortised cost is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is recognised using the effective interest rate method

(iii) lmpairment of financial assets

ITic Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. For trade receivables, the Company provides for lifetime expected credit losses recognised from initial recognition of the receivables.

(iv) Derecognition of financial assets

A financial asset is derecognised only when the Company has transferred the rights to receive cash flows from the financial asset or retains the contractual rights to receive the cash flow s of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

(k) Cash flow statement

Cash flows are reported using the indirect method, whereby profit/ loss before tax is adjusted for the efi''ects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing flows. Hie cash flows from operating, investing and financing activities of the Company are segregated.

(l) Borrowing Costs

"Borrow ing costs consist of interest and other costs that an entity incurs in connection with the borrow ing of funds including interest expense calculated using the effective interest method.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Other income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Interest expense includes origination costs that are initially recognised as part of the carrying value of the financial liability and amortized over the expected life using the H1R. It also include expenses related to borrowing which are not part of effective interest as not directly related to loan origination."

(m) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker (CODM), The CODM assess the financial performance and position of the company and makes strategic decisions.

(n) Financial Liabilities

The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.

"Financial liabilities at FVTPL”

Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as at FVTPL. Financial liabilities are classified as held for trading, if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109 - ""Financial Instruments""."

"Financial liabilities measured at amortised cost

After initial recognition, interest hearing loans and borrowings are subsequently measured at amortised cost using the KIR method except for those designated in an effective hedging relationship.

Amortised cost is calculated by taking into account any discount or premium and fee or costs that are an integral part of the KIR. The E1R amortisation is included in finance costs in the Statement of Prolit and Loss. Any difference betw een the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrow ings using the EIR method.”

"Trade and other payables

A payable is classified as ''trade payable'' if it is in respect of the amount due on account of goods purchased or serv ices received in the normal course of business. These amounts represent liabilities lor goods and services provided to the Company prior to the end of financial year, which are unpaid. They are recognised initially at their fair value and subsequently measured at amortised cost."

"Derecognition of financial liabilities

A financial liability is derecognised 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 derecognition of the original liability and die recognition of a new liability.

The difference between the carrying amount of the financial liability derecognised and die consideration paid and payable is recognised in the Statement of Profit and Loss.”

(o) Significant accounting judgements, estimates and assumptions

"The preparation of financial statements in conformity with the Ind AS requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosure and the disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which die estimates are revised and future periods are affected. Although these estimates are based on die management''s best knowledge of current events and actions, uncertainty about these assumptions and estunates could result in die outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

In particular, information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have die most significant effect on the amounts recognised in the financial statements is included in the notes.”

(p) Business Model Assessment

Classification and measurement of financial assets depends on die results of the SPPI and the business model test. The Company determines die business model at a level dial reflects how groups of financial assets are managed togedier to achieve a particular business objective. The Company monitors financial assets measured at mortised cost or fair value dirough odier comprehensive income that are derecognised prior to their maturity to understand die reason for dieir disposal and whether die reasons are consistent vvidi die objective of die business for which the asset was held. Monitoring is part of the Company''s continuous assessment of whether die business model for which the remaining financial assets are held continues to be appropriate and if it is not appropriate whether there has been a change in business model, if so. then it will be a prospective change to die classification of those assets.

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Mar 31, 2018

1.1 Significant Accounting Policies :

The Financial statements are prepared to comply in all material aspects with the applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of "The Companies Act, 2013". The Significant Accounting Policies are as follows:-

(a ) Uses of Accounting Estimates:

The preparation of standalone Financial Statements in conformity with the Indian GAAP requires the management to make judgments, estimates and judgments that affect the reported amounts of revenue, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcome requiring a material adjustment to the carrying amounts of assets or liabilities in future periods -

(b) Impairment of Tangible and Intangible Assets:

The Company assesses at each reporting date whether there is an indication that an asset may be impaired If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or Cash Generating Unit''s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets. Where the carrying amount of an assets or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In accessing value in use, the estimated future cash flow are discounted to their present value using a pre-tax discount rate the reflects current market assessments of the time value of money and the risk specific to the asset. In determining net selling price, recent market transactions are taken into account, if available If no such transaction can be identified, an appropriate valuation method is used There was no impairment loss on Fixed Assets on the basis of review carried out by the Management in accordance with the Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

(c) Depreciation:

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life, at the rates and in the manner as Described in Schedule II to the Companies Act. 2013.

(d) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Any inter class transfer should be with the approval of the Board and as per RBI regulation.

Current investments are carried at a lower rate of cost and fair value determined on an individual investment basis. Unquoted investments in the unit of Mutual Fund in the nature of current investment are also carried at lower of cost and fair value determined on an individual investment basis.

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

(e) 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. In a situation where management believes that the recovery of interest is uncertain .

Interest income on loans given is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. Such interests, where installments are overdue in respect of non-performing assets are recognized on realization basis Any such income recognized and remaining unrealized after they become overdue in respect of secured and unsecured loans is reversed.

(f) Derivative Instruments and Hedge Accounting:

Derivative contracts are initially measured at fair value and re-measured at subsequent reporting dates. Change in fair value of these Derivative contracts are designated and effective as hedges of future cash flows are recognized directly in “Hedge Reserve Account" under Shareholders'' Funds and the ineffective portion is recognized immediately in Statement of Profit and Loss

Changes in fair value of Derivative Contracts that do not qualify for hedge accounting are recognized in Statement of Profit and Loss as they arise.

The amount recognized in the Hedge Reserve is transferred to the Statement of Profit and Loss when the hedged transaction crystallizes.

If the forecast transactions are no longer expected to occur, the cumulative gain or loss previously recognized in the hedge reserve is transferred to Statement of Profit and Loss.

Hedge Accounting is discontinued when the hedging instrument expires or sold, terminated or exercised or no longer qualifies for hedge accounting. If any of these events occur or if a hedge transaction is no longer expected to occur, the net cumulative gain or loss recognized under Shareholders’ Fund is transferred to the Statement of Profit and Loss for the /year.

(g) Inventories Valuation

Finished goods and Trading goods including equity shares are valued at cost or net realizable value which are lower and are arrived as per FIFO basis.

(h) Recognition of Expenditure:

a. Employee Benefits:

Short Term Employee Benefit is recognised as an expense in the Profit and Loss Account of the year in which related service is rendered.

Post employment and other Long term Benefit are not yet being provided for in the accounts These benefit scheme has not yet been framed by the company.

b. Taxes on Income:

Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act. 1961 enacted in India.

Deferred Tax is recognised, subject to consideration of prudence, in respect of deferred tax Assets/Liabilities arising on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

(i) Provisions :

i) A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made Provisions are not discounted to its present value and are determined based on management estimate required to settle the obligation on the balance sheet date. These are reviewed on each balance sheet date and adjusted to reflect the current management estimates.

(j) Contingent Liabilities:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation.

There is an outstanding demand with the Income Tax Authorities for the following years :

A.Y 2009-10 : 26,64,940

A.Y. 2014-15: 75,51,090

A.Y 2015-16 : 1,74,990

The Company has already filed an Appeal with the C I.T(Appeal) against the said Orders, which is pending for disposal as on 31.03.2018, and hence no Liability has been created.

(k) Cash and Cash Equivalents:

Cash and Cash Equivalents in the Balance Sheet comprise of Cash at Bank, Cash in Hand and Short-term investments with an original maturity of three months or less.

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Mar 31, 2015

The Financial statements are prepared to comply in all material aspects with the applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of "The Companies Act, 2013". The Significant Accounting Policies are as follows:-

(a) Basis of Preparation of Financial Statements:

The Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956. The company is following accrual basis of accounting on a going concern concept. Accounting policies are suitably disclosed as notes annexed to the Balance Sheet and Profit & Loss Account.

(b) Use of Accounting Estimates:

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting year.

(c) Fixed Assets:

Fixed Assets are stated at cost of acquisition, including any attributable cost for bringing the asset to its working condition for its intended use, less accumulated depreciation and impairment loss if any.

(d) Depreciation :

Depreciation on fixed assets has been provided on a Written Down method at the rates and in the manner as prescribed in Schedule II to the Companies Act, 2013.

(e) Revenue Recognition:

Revenue on sale of goods is recognised when the company transfers to its buyer the property in the goods for a determined price along with all significant risks & rewards of the ownership in the goods without retaining any effective control of the goods. Sales are shown net of discount & sales return.

(f) Inventories Valuation

Finished goods are valued at cost or net realizable value which are lower and are arrived as per FIFO basis.

(g) Recognition of Expenditure:

a. Employee Benefits:

Short Term Employee Benefit is recognised as an expense in the Profit and Loss Account of the year in which related service is rendered.

Post employment and other Long term Benefit are not yet being provided for in the accounts. These benefit scheme has not yet been framed by the company.

b. Taxes on Income:

Provision for current taxation has been made in accordance with the Income Tax Laws prevailing for the relevant Assessment Year.

(h) Provisions :

Provisions are recognized when the company has legal and constructive obligation as a result of past event for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of obligation.

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Mar 31, 2014

The Financial statements are prepared to comply in all material aspects with the applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of "The Companies Act, 1956". The Significant Accounting Policies are as follows:-

(a) Basis of Preparation of Financial Statements:

The Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956. The company is following accrual basis of accounting on a going concern concept.

Accounting policies are suitably disclosed as notes annexed to the Balance Sheet and Profit & Loss Account.

(b) Use of Accounting Estimates:

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting year.

(c) Fixed Assets:

Fixed Assets are stated at cost of acquisition, including any attributable cost for bringing the asset to its working condition for its intended use, less accumulated depreciation and impairment loss if any.

(d) Depreciation :

Depreciation on fixed assets has been provided on a Written Down method at the rates and in the manner as prescribed in Schedule XIV to the Companies Act, 1956.

(e) Revenue Recognition:

Revenue on sale of goods is recognised when the company transfers to its buyer the property in the goods for a determined price along with all significant risks & rewards of the ownership in the goods without retaining any effective control of the goods. Sales are shown net of discount & sales return.

(f) Inventories Valuation

Finished goods are valued at cost or net realizable value which are lower and are arrived as per FIFO basis.

(g) Recognition of Expenditure:

a. Employee Benefits:

Short Term Employee Benefit is recognised as an expense in the Profit and Loss Account of the year in which related service is rendered.

Post employment and other Long term Benefit are not yet being provided for in the accounts. These benefit scheme has not yet been framed by the company.

b. Taxes on Income:

Provision for current taxation has been made in accordance with the Income Tax Laws prevailing for the relevant Assessment Year.

(h) Provisions :

Provisions are recognized when the company has legal and constructive obligation as a result of past event for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of obligation.

The Company has not received any intimation from its suppliers regarding their status under The ( c) Micro, Small and Medium Enterprise Development Act, 2006 and hence no disclosure required under the said Act can be made.

There was no impairment loss on Fixed Assets on the basis of review carried out by the (d) Management in accordance with the Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

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Mar 31, 2013

The Financial statements are prepared to comply in all material aspects with the applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of "The Companies Act, 1956". The Significant Accounting Policies are as follows:-

(a) Basis of Preparation of Financial Statements:

The Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956. The company is following accrual basis of accounting on a going concern concept. Accounting policies are suitably disclosed as notes annexed to the Balance Sheet and Profit & Loss Account.

(b) Use of Accounting Estimates:

The presentation of finacial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting year.

(c) Fixed Assets & Depreciation:

Fixed Assete are stated at cost of acquisition, including any attributable cost for bringing the asset to its working condition for its intended use, less accumulated depreciation and impairment loss if any.

Depreciation on fixed assets has been provided on a Written Down method at the rates and in the manner as prescribed in Schedule XIV to the Companies Act, 1956.

(d) Revenue Recognition:

On Sale of Goods

Revenue on sale of goods is recognised when the company transfers to its buyer the property in the goods for a determined price along with all significant risks & rewards of the ownership in the goods without retaining any effective control of the goods. Sales are shown net of discount & sales return.

(e) Inventories Valuation

Finished goods are valued at cost or net realizable value which are lower and are arrived as per FIFO basis.

(f) Recognition of Expenditure:

a. Employee Benefits:

Short Term Employee Benefit is recognised as an expense in the Profit and Loss Account of the year in which related service is rendered.

Post employment and other Long term Benefit are not yet being provided for in the accounts. These benefit scheme has not yet been framed by the company.

b. Taxes on Income:

Provision for current taxation has been made in accordance with the Income Tax Laws prevailing for the relevant Assessment Year.

(g) Provisions and Contingent Liabilities:

Provisions are recognized when the company has legal and constructive obligation as a result of past event for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of obligation.

Contingent Liabilities are disclosed when the company has possible or present obligation and it is probable that a cash outflow will not be required to settle that obligation.

(h) Contingencies and Events Occurring after the Balance Sheet Date:

There are no contingencies and events after the Balance Sheet dates that materially affect the financial position of the company.

(i) Net Profit or loss for the year, prior period items and changes in accounting policies:

Revenue statement does not contain any item materially affecting and having reference of prior period. Prior Period expenses/income are accounted under the respective heads.

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Mar 31, 2012

1. Significant Accounting Policies:

(a) Basis of Accounting:

The Accounts are kept on the basis of historical cost convention.

(b) Method of Accounting:

The Accounts are prepared under accrual system of accounting.

(c) Fixed Assets:

Fixed Assets are stated at cost less depreciation, wherever applicable.

(d) Depreciation:

Depreciation is provided under written down value method at the rates prescribed in Schedule-XIV of the Companies Act, 1956.

(e) Investments:

Investments held by the company are in the nature of long term investment and are being stated at cost.

The Accounting policies not specifically referred to above are consistent and in accordance with the generally accepted accounting principles.

2. The Previous year''s figure has been regrouped/re-arranged, wherever found necessary.