Accounting Policies of Nirav Commercials Ltd. Company

Mar 31, 2025

Material Accounting Policies:

a) Statement of Compliance:

These financial statements have been prepared in accordance with IND AS as prescribed under Section 133 of the
Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and subsequent
amendments thereto.

b) Basis of preparation

The financial statements have been prepared on the historical cost basis except for following assets and liabilities
which have been measured at fair value amount:

Certain financial assets and liabilities (including derivative instruments)

The financial statements are presented in Indian Rupees, which is the functional currency of the Company and the
currency of the primary economic environment in which the Company operates.

Whenever the company changes the presentation or classification of items in its financial statements materially, the
company reclassifies comparative amounts, unless impracticable. No such material reclassification has been made
during the year.

c) Property, Plant and Equipment (PPE)

The Company has elected to continue with the carrying value of Property, Plant and Equipment (‘PPE’) recognised as
of transition date measured as per the Previous GAAP and use that carrying value as its deemed cost of the PPE.

The initial cost of PPE comprises its purchase price, including import duties and non-refundable purchase taxes, and
any directly attributable costs of bringing an asset to working condition and location for its intended use, including
relevant borrowing costs and any expected costs of decommissioning, less accumulated depreciation and accumulated
impairment losses, if any. Expenditure incurred after the PPE have been put into operation, such as repairs and
maintenance, are charged to the Statement of Profit and Loss in the period in which the costs are incurred.

If significant parts of an item of PPE have different useful lives, then they are accounted for as separate items (major
components) of PPE.

Material items such as spare parts, stand-by equipment and service equipment are classified as PPE when they meet
the definition of PPE as specified in Ind AS 16 - Property, Plant and Equipment.

Expenses incurred relating to project, net of income earned during the project development stage prior to its intended
use, are considered as pre - operative expenses and disclosed under Capital Work - in - Progress.

d) Depreciation

The depreciable amount of an asset is determined after deducting its residual value. Where the residual value of an
asset increases to an amount equal to or greater than the asset’s carrying amount, no depreciation charge is recognised
till the asset’s residual value decreases below the asset’s carrying amount. Depreciation of an asset begins when it is
available for use, i.e., when it is in the location and condition necessary for it to be capable of operating in the intended
manner. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale in accordance
with IND AS 105 and the date that the asset is derecognised.

Depreciation on property plant and equipment added/disposed off during the year is provided on pro rata basis with
reference to the date of addition/disposal.

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.

Gains or losses arising from derecognition of a property, plant and equipment are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss
when the asset is derecognised.

e) Intangible Assets

(i) Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less
accumulated amortisation/depletion and impairment loss, if any. Such cost includes purchase price, borrowing
costs, and any cost directly attributable to bringing the asset to its working condition for the intended use, net
charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the
intangible assets.

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 entity and the cost
can be measured reliably.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss
when the asset is derecognised.

(ii) Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortisation and accumulated impairment, if any. The Company determines the amortisation period as the
period over which the future economic benefits will flow to the Company after taking into account all relevant
facts and circumstances. The estimated useful life and amortisation method are reviewed periodically, with the
effect of any changes in estimate being accounted for on a prospective basis.

(iii) Licensed Software is amortised prorata, on straight line basis over the estimated useful life of the asset which is
estimated at 3 years.

f) Impairment of non-financial assets - property, plant and equipment

The Company assesses at each reporting date as to whether there is any indication that any property, plant and
equipment and intangible assets or group of assets, called cash generating units (CGU) may be impaired. If any such
indication exists the recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if
any. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the
recoverable amount of the CGU to which the asset belongs.

An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset’s carrying amount exceeds
its recoverable amount. The recoverable amount is higher of an asset’s fair value less cost of disposal and value
in use. Value in use is based on the estimated future cash flows, discounted to their present value using pre-tax
discount rate that reflects current market assessments of the time value of money and risk specific to the assets.

The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of
recoverable amount.

g) Inventories

Raw materials, components, stores and spares are valued at lower of cost and net realizable value. However materials
and other items held for use in the production of inventories are not written down below cost if the finished products in
which they will be incorporated are expected to be sold at or above cost. Cost of raw materials, components and stores
and spares is determined on a first in first out (FIFO) method.

Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials
and labour and a proportion of manufacturing overheads based on normal operating capacity.

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

h) Borrowing Costs

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded
as an adjustment to the interest cost. Borrowing costs that are directly attributable to the acquisition or construction
of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use.

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

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

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Mar 31, 2024

Note:1.''Significant Accounting Policies

1 Statement of Compliance

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to
as the nd AS'') as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (''Act'') read with
the Companies (Indian Accounting Standards) Rules,2015 as amended and other relevant provisions of the Act.

The accounting policies are applied consistently to all the periods presented in the financial statements.

2 Basis of measurement

All financial items of Income and Expenditure having a material bearing on the financial statement are recognised on accrual
basis, except Income by way of dividend and Expense by way of leave encashment which is accounted on cash basis.

3 Presentation of financial statements :

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the
Schedule III of the Companies Act, 2013 ( the "Act"). The statement of cash flows has been prepared and presented as per the
requirements of Ind AS 7 "Statement of Cash flows". The disclosure requirements with respect to items in the Balance Sheet
and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes froming part of
the financial statements along with the other notes required to be disclosed under the notified Accounting Standards and
the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

4 Sales :

Sales excludes GST, Sales of scrap and is net of sales return.

5 Use of Estimates :

The preparation of Financial Statements is in conformity with the IND AS which requires, the management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the
date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from
these estimates.

Any revision to accounting estimates is recognised prospectively in current and future periods.

6 Property, plant and equipment and Depreciation :

i) All Property, plant and equipment are valued at cost less depreciation .The cost is inclusive of incidental expenses related
to acquisition and put to use. Pre-operative expenses including trial run expenses (net of revenue) are capitalised.
Interest on borrowings and financing costs during the period of construction is added to cost of Property, plant and
equipment.

ii) Impairment loss, if any is recognised in the year in which impairment takes place.

iii) Depreciation on Property, plant and equipment is provided on Written Down Value Method at the rate and in the
manner specified in Schedule II of the Companies Act, 2013.

iv) Depreciation on additions / disposals of the Property, plant and equipment during the year is provided on pro-rata
basis according to the ''period during which assets are put to use.

7 Intangible Assets

Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will
flow to the enterprise and the cost of the asset can be measured reliably.

8 Expenditure during the Construction Period :

The expenditure incidental to the expansion / new projects are allocated to Property, plant and equipment in the year
of commencement of the commercial production. Operating cycle for the business activities of the company covers the
duration of the specific project/contract/product line/service

9 Operating cycle for current and non-current classification

Operating cycle for the business activities of the company covers the duration of the specific project/contract/product line/
service including the defect liability period wherever applicable and extends up to the realisation of receivables (including
retention monies) within the agreed credit period normally applicable to the respective lines of business.

10 Inventories :

Raw Materials, Stores & Spare Parts and Finished Goods are valued at lower of cost and net realisable value.

11 Cash and Cash Equivalents

Cash and cash equivalent in balance sheet comprise cash at banks, cash on hand and short term deposits with original
maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the
statement of cash flows, cash and cash equivalents consist of cash at banks, cash on hand, short term deposits and Bank
overdrafts.

12 Revenue Recognition :

a Sale of goods and services

The Company engaged in manufacturing of Aluminium Grills, Doors & Windows etc...

Effective April 1, 2018, the Company has adopted Ind AS 115, Revenue from Contracts with Customers using the
cumulative effect (without practical expedients). There are no material impacts of transition to Ind AS 115 on retained
earnings as on 1st April, 2018 and 31st March, 2019. The application of Ind AS establishes a comprehensive framework
for determining whether, how much and when revenue is to be recognised. Ind AS 115 replaces Ind AS 18 Revenue and
Ind AS 11 Construction Contracts.

Revenue from sale of products is recognised when control of the products has transferred, being when the products are
delivered to the customer Delivery occurs when the products have been shipped or delivered to the specific location as
the case may be, the risks of loss has been transferred, and either the customer has accepted the products in accordance
with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied. Sale
of products include related ancillary services, if any.

Revenue from rendering of services is recognized when the performance of agreed contractual task has been completed.
Dividend income is recognised when the unconditional right to receive the income is established.
b Lease Income / Expense

The Company is receiving the rent as per the agreement for lease executed with the respective lessee. The rent is
fixed from the date of execution of lease agreements. The same is received/collected year after year. No renewal of
agreements is executed. However the rent income continues to be received/collected at the original rate till date.

The Company is paying the rent as per the agreement for lease executed with the respective lessee. The rent is fixed
from the date of execution of lease agreements. The payment for the same is made year after year. No renewal of
agreements is executed. However the rent payment continues to be paid at the original rate till date.

13 Post-employment, long term and short term employee benefits
Defined contribution plans

Provident fund benefit is a defined contribution plan under which the Company pays fixed contributions into funds
established under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The Company has no legal or
constructive obligations to pay further contributions after payment of the fixed contribution.

Defined benefit plans

The gratuity scheme is administered through the Life Insurance Corporation of India. Gratuity is a post-employment benefit
defined under The Payment of Gratuity Act, 1972 and is in the nature of a defined benefit plan. The liability recognised in
the financial statements in respect of gratuity is the present value of the defined benefit obligation at the reporting date,
together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit/obligation
is calculated at or near the reporting date by an independent actuary using the projected unit credit method. Actuarial gains
and losses arising from past experience and changes in actuarial assumptions are credited or charged to the OCI in the year
in which such gains or losses are determined.

Other long-term employee benefits
Leave Liability :

The employees of the company are entitled to leave as per the leave policy of the company. The liability on account of
accumulated leave as on last day of the accounting year is not recognised.

Short-term employee benefits

Expense in respect of other short term benefits is recognised on the basis of the amount paid or payable for the period during
which services are rendered by the employee.

14 Transaction in Foreign Currency

Transaction in Foreign Currency are recorded at the rate of exchange in force on the respective date of such contracted rates.
Exchange difference on repayment/conversion/transaction are adjusted to

i) Carrying cost of Property, plant and equipment, if foreign currency liability relates to fixed assets.

ii) the Profit & Loss account in other cases.

iii) Monetary assets and liabilities denominated in foreign currencies are translated into functional currency at the
exchange rate at the reporting date.

iv) Non-monetary items that are measured based on historical cost in a foreign currency are not translated.

15 Provision for Bad & Doubtful Debts :

No Provision is made in accounts for bad and doubtful debts / advances as in the opinion of the management they are not
considered doubtful of recovery.

16 Deferred Tax :

Deferred tax is recognised, subject to the consideration of prudence, 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
periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable
certainty that the assets can be realised in future.

17 Excise Duty / GST :

Excise Duty / GST is accounted gross of Cenvat benefit availed on inputs, fixed assets and eligible services.

18 Investments :

Investments are stated at cost.

19 Accounting and reporting of information for Operating Segments

Operating segments are those components of the business whose operating results are regularly reviewed by the
management of thecompany to make decisions for performance assessment and resource allocation. Segment accounting
policies are in line with the accounting policies of the company. In addition, the following specific accounting policies have
been followed for segment reporting:

i) Segment revenue includes sales and other operational revenue directly identifiable with/allocable to the segment.

ii) Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result.

iii) Income which relates to the company as a whole and not allocable to segments is included in “unallocable corporate
income”.

iv) Segment assets and liabilities include those directly identifiable with the respective segments.

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Mar 31, 2015

1. Basis of Accounting:

All the items of income and expenditure having a material bearing on the financial statements are recognised on accrual basis, except income by way of dividend, interest on investment and Compensation which are accounted on cash basis.

2. Sales:

Sales excludes Sales Tax, includes Excise Duty, sales of scrap and is net of sales return.

3. Use of Estimates:

The preparation of Financial Statements in conformity with the Accounting Standards generally accepted in India requires, the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

4. Fixed Assets and Depreciation :

i) All fixed assets are valued at cost less depreciation.The cost is inclusive of incidental expenses related to acquisition and put to use. Pre-operative expenses including trial run expenses (net of revenue) are capitalised. Interest on borrowings and financing costs during the period of construction is added to cost of fixed assets.

ii) Impairement loss, if any is recognised in the year in which impairement takes place.

iii) Pursuant to the enactment of Companies Act, 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortised carrying value is being depreciated/ amortised on straight line basis so as to write off the cost of the assets over the revised/remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted, in the opening balance of Profit and Loss Account amounting to Rs. 4,09,612/-

iv) Depreciation on Fixed Assets is provided on Written Down Value Method at the rate and in the manner specified in Schedule XIV of the Companies Act, 1956.

v) Depreciation on additions / disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use.

5. Investments:

Investments are stated at cost.

6. Preliminary Expenses:

Preliminary expenses are being written off in equal installments over a period of five financial years.

7. Deferred Tax:

Deferred tax is recognised, subject to the consideration of prudence, 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 periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future.

8. Retirement Benefits:

i) Defined Benefit Plans:

The gratuity scheme is administered through the Life Insurance Corporation of India. Gratuity liability is accounted as per the actuarial contribution demanded by Life Insurance Corporation of India.

ii) Leave Liability:

The employees of the company are entitled to leave as per the leave policy of the company. The liability on account of accumulated leave as on last day of the accounting year is not recognised.

9. Transaction in Foreign Currency

Transaction in Foreign Currency are recorded at the rate of exchange in force on the respective date of such/ contracted rates. Exchange difference on repayment/conversion/transaction are adjusted to

i) Carrying cost of fixed assets, if foreign currency liability relates to fixed assets.

ii) the Profit & Loss account in other cases.

10. Excise Duty:

Excise Duty is accounted gross of Cenvat benefit availed on inputs, fixed assets and eligible services.

11. Expenditure during the Construction Period:

The expenditure incidental to the expansion / new projects are allocated to Fixed Assets in the year of commencement of the commercial production.

12. Revenue Recognition:

i) Revenue from Sale of goods is recognised when significant risks and rewards of ownership of the goods have been passed to the buyer.

ii) Service income is recognised as per the terms of contracts with the customers when the related services are performed or the agreed milestones are achieved and are net of service tax wherever applicable.

iii) Dividend income is recognised when the unconditional right to receive the income is established.

iv) Revenue in respect of other income is recognised when no significant uncertainty as to its determination or realisation exists.

13. Provisions, Contingent Liabilities and Contingent Assets:

Provision is recognised when the company has a present obligation as a result of past events and it is probable that the outflow of resources will be required to settle the obligation and in respect of which reliable estimates can be made. A disclosure for contingent liability is made when there is a possible obligation, that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision / disclosure is made. Contingent assets are notrecognised in the financial statements. Provisions and contingencies are reviewed at each balance sheet date and , adjusted to reflect the correct management estimates.

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Mar 31, 2014

1 Basis of Accounting:

All the items of income and expenditure having a material bearing on the financial statements are recognised on accrual basis, except income by way of dividend, interest on investment and Compensation which are accounted on cash basis.

2 Sales:

Sales excludes Sales Tax, includes Excise Duty, sales of scrap and is net of sales return.

3 Use of Estimates:

The preparation of Financial Statements in conformity with the Accounting Standards generally accepted in India requires, the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

4 Fixed Assets and Depreciation:

i) All fixed assets are valued at cost less depreciation.The cost is inclusive of incidental expenses related to acquisition and put to use. Pre-operative expenses including trial run expenses (net of revenue) are capitalised. Interest on borrowings and financing costs during the period of construction is added to cost of fixed assets.

ii) Impairement loss, if any is recognised in the year in which impairement takes place.

iii) Depreciation on Fixed Assets is provided on Written Down Value Method at the rate and in the manner specifiedinScheduleXIVoftheCompaniesAct, 1956.

iv) Depreciation on additions / disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use.

5 Investments:

I nvestments are stated at cost.

6 Preliminary Expenses:

Preliminary expenses are being written off in equal installments over a period of five financial years.

7 Deferred Tax:

Deferred tax is recognised, subject to the consideration of prudence, 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 periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future.

8 Retirement Benefits:

i) Defined Benefit Plans:

The gratuity scheme is administered through the Life Insurance Corporation of India. Gratuity liability is accounted as per the actuarial contribution demanded by Life Insurance Corporation of India.

ii) Leave Liability:

The employees of the company are entitled to leave as per the leave policy of the company. The liability on account of accumulated leave as on last day of the accounting year is not recognised.

9 Transaction in Foreign Currency

Transaction in Foreign Currency are recorded at the rate of exchange in force on the respective date of such/contracted rates. Exchange difference on repayment/conversion/transaction are adjusted to i) Carrying cost of fixed assets, if foreign currency liability relates to fixed assets. ii) the Profit & Loss account in other cases.

10 Excise Duty:

Excise Duty is accounted gross of Cenvat benefit availed on inputs, fixed assets and eligible services.

11 Expenditure during the Construction Period:

The expenditure incidental to the expansion / new projects are allocated to Fixed Assets in the year of commencement of the commercial production.

12 Revenue Recognition:

i) Revenue from Sale of goods is recognised when significant risks and rewards of ownership of the goods have been passed to the buyer.

ii) Service income is recognised as per the terms of contracts with the customers when the related services are performed or the agreed milestones are achieved and are net of service tax wherever applicable.

iii) Dividend income is recognised when the unconditional rightto receive the income is established.

iv) Revenue in respect of other income is recognised when no significant uncertainty as to its determination or realisation exists.

13 Provisions, Contingent Liabilities and Contingent Assets:

Provision is recognised when the company has a present obligation as a result of past events and it is probable that the outflow of resources will be required to settle the obligation and in respect of which reliable estimates can be made. A disclosure for contingent liability is made when there is a possible obligation, that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision / disclosure is made. Contingent assets are not recognised in the financial statements. Provisions and contingencies are reviewed at each balance sheet date and adjusted to reflect the correct management estimates.

B The equity share holders of the Company are entitled to receive interim and/ or final dividend, if declared and approved by the Board of Directors and/or the share holders of the Company. The dividend so declared will be in proportion to the number of equity shares held by the share holders.

C In the event of the liquidation of the Company, equity share holders will be entitled to receive remaining assets of the company after distribution of all preference share holders. However, no such Preference share capital exist during the period. The distribution will in proportion to the number of equity shares held by the share holders.

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Mar 31, 2013

1 Basis of Accounting:

All the items of income and expenditure having a material bearing on the financial statements are recognised on accrual basis, except income by way of dividend, interest on investment and Compensation which are accounted on cash basis.

2 Sales:

Sales excludes Sales Tax, includes Excise Duty, sales of scrap and is net of sales return.

3 Use of Estimates:

The preparation of Financial Statements in conformity with the Accounting Standards generally accepted in India requires, the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

4 Fixed Assets and Depreciation:

i) All fixed assets are valued at cost less depreciation.The cost is inclusive of incidental expenses related to acquisition and put to use. Pre-operative expenses including trial run expenses (net of revenue) are capitalised. Interest on borrowings and financing costs during the period of construction is added to cost of fixed assets.

ii) Impairement loss, if any is recognised in the year in which impairement takes place.

iii) Depreciation on Fixed Assets is provided on Written Down Value Method at the rate and in the manner specified in Schedule XIV of the Companies Act, 1956.

iv) Depreciation on additions / disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use.

5 Investments: Investments are stated at cost.

8 Preliminary Expenses:

Preliminary expenses are being written off in equal installments over a period of five financial years.

7 Deferred Tax:

Deferred tax is recognised, subject to the consideration of prudence, 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 periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future.

8 Retirement Benefits:

I) Defined Benefit Plans:

The gratuity scheme is administered through the Life Insurance Corporation of India. Gratuity liability is accounted as per the actuarial contribution demanded by Life Insurance Corporation of India.

Ii) Leave Liability:

The employees of the company are entitled to leave as per the leave policy of the company. The liability on

account of accumulated leave as on last day of the accounting year is not recognised.

9 Transaction in Foreign Currency

Transaction in Foreign Currency are recorded at the rate of exchange in force on the respective date of such/contracted rates. Exchange difference on repayment/conversion/transaction are adjusted to i) Carrying cost of fixed assets, if foreign currency liability relates to fixed assets. ii) the Profit & Loss account in other cases.

10 Excise Duty:

Excise Duty Is accounted gross of Cenvat benefit availed on inputs, fixed assets and eligible services.

11 Expenditure during the Construction Period:

The expenditure incidental to the expansion / new projects are allocated to Fixed Assets in the year of commencement of the commercial production.

12 Revenue Recognition:

i) Revenue from Sale of goods is recognised when significant risks and rewards of ownership of the goods have been passed to the buyer. ii) Service income is recognised as per the terms of contracts with the customers when the related services are performed or the agreed milestones are achieved and are net of service tax wherever applicable. iii) Dividend income is recognised when the unconditional right to receive the income is established. iv) Revenue in respect of other income is recognised when no significant uncertainty as to its determination or realisation exists.

13 Provisions, Contingent Liabilities and Contingent Assets:

Provision is recognised when the company has a present obligation as a result of past events and it is probable that the outflow of resources will be required to settle the obligation and in respect of which reliable estimates can be made. A disclosure for contingent liability is made when there is a possible obligation, that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision / disclosure is made. Contingent assets are not recognised in the financial statements. Paovisions and contingencies are reviewed at each balance sheet date and adjusted to reflect the correct management estimates.

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Mar 31, 2012

1 Basis of Accounting:

All the items of income and expenditure having a material bearing on the financial statements are recognized on accrual basis, except income by way of dividend, interest on investment and Compensation which are accounted on cash basis.

2 Sales:

Sales excludes Sales Tax, includes Excise Duty, sales of scrap and is net of sales return.

3 Use of Estimates:

The preparation of Financial Statements in conformity with the Accounting Standards generally accepted in India requires, the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

4 Fixed Assets and Depreciation:

i) All fixed assets are valued at cost less depreciation. The cost is inclusive of incidental expenses related to acquisition and put to use. Pre-operative expenses including trial run expenses (net of revenue) are capitalized. Interest on borrowings and financing costs during the period of construction is added to cost of fixed assets.

ii) Impairment loss, if any is recognized in the year in which impairment takes place.

iii) Depreciation on Fixed Assets is provided on Written Down Value Method at the rate and in the manner specified in Schedule XIV of the Companies Act, 1956.

iv) Depreciation on additions / disposals of the fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use.

5 Investments:

Investments are stated at cost.

6 Preliminary Expenses:

Preliminary expenses are being written off in equal installments over a period of five financial years.

7 Deferred Tax:

Deferred tax is recognized, subject to the consideration of prudence, 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 periods. Deferred tax assets arising from temporary timing differences are recognized to the extent there is reasonable certainty that the assets can be realized in future.

8 Retirement Benefits:

i) Defined Benefit Plans:

The gratuity scheme is administered through the Life Insurance Corporation of India. Gratuity liability is accounted as per the actuarial contribution demanded by Life Insurance Corporation of India.

ii) Leave Liability:

The employees of the company are entitled to leave as per the leave policy of the company. The liability on account of accumulated leave as on last day of the accounting year is not recognized.

9 Transaction in Foreign Currency

Transaction in Foreign Currency are recorded at the rate of exchange in force on the respective date of such/contracted rates. Exchange difference on repayment/conversion/transaction are adjusted to

i) Carrying cost of fixed assets, if foreign currency liability relates to fixed assets.

ii) the Profit & Loss account in other cases.

10 Excise Duty:

Excise Duty is accounted gross of Convert benefit availed on inputs, fixed assets and eligible services.

11 Expenditure during the Construction Period:

The expenditure incidental to the expansion / new projects are allocated to Fixed Assets in the year of commencement of the commercial production.

12 Revenue Recognition:

i) Revenue from Sale of goods is recognized when significant risks and rewards of ownership of the goods have been passed to the buyer.

ii) Service income is recognized as per the terms of contracts with the customers when the related services are performed or the agreed milestones are achieved and are net of service tax wherever applicable.

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

iv) Revenue in respect of other income is recognized when no significant uncertainty as to its determination or realization exists.

13 Provisions, Contingent Liabilities and Contingent Assets :

Provision is recognized when the company has a present obligation as a result of past events and it is probable that the outflow of resources will be required to settle the obligation and in respect of which reliable estimates can be made. A disclosure for contingent liability is made when there is a possible obligation, that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision / disclosure is made. Contingent assets are not recognized in the financial statements. Provisions and contingencies are reviewed at each balance sheet date and adjusted to reflect the correct management estimates.

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Mar 31, 2011

A) Basis of Accounting:

All the items of income and expenditure having a material bearing on the financial statements are recognised on accrual basis, except income by way of dividend, interest on investment and Compensation which are accounted on cash basis.

b) Sales:

Sales excludes Sales Tax, includes Excise Duty, goods sold on consignment, sales of scrap and is net of sales return.

c) Fixed Assets:

I) Fixed Assets are shown at cost less depreciation. The cost is inclusive of all direct incidental expenses related to acquisition.

ii) Impairment loss, if any is recognised in the year in which impairment takes place.

d) Depreciation:

Depreciation on Fixed Assets have been provided on Written Down Value method at the rate and in the manner specified in Schedule XIV of the Companies Act, 1956.

e) Inventories:

Inventories other than Consignment and Trading goods are valued at lower of cost or net realisable value. Consignment and Trading goods are valued at cost.

f) Investments: Investments are stated at cost.

g) Preliminary Expenses:

Preliminary expenses are being written off in equal installments over a period of five financial years.

h) Deferred Tax:

Deferred tax is recognised, subject to the consideration of prudence, 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 periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future.

i) Retirement Benefits:

Gratuity liability is accounted as per the actuarial contribution demanded by Life Insurance Corporation of India.

j) Transaction in Foreign Currency

Transaction in Foreign Currency are recorded at the rate of exchange in force on the respective date of such/contracted rates. Exchange difference on repayment/conversion/transaction are adjusted to i) Carrying cost of fixed assets, if foreign currency liability relates to fixed assets.

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Mar 31, 2010

A) Basis of Accounting :

All the items of income and expenditure having a material bearing on the financial statements are recognised on accrual basis, except income by way of dividend,interest on investment and Compensation which are accounted on cash basis.

b) Sales:

Sales excludes Sales Tax,includes Excise Duty, goods sold on consignment.sales of scrap and is net of sales return.

c) Fixed Assets:

I) Fixed Assets are shown at cost less depreciation. The cost is inclusive of all direct incidental expenses related to acquisition.

ii) Impairement loos, if any is recognised in the year in which impairement takes place.

d) Depreciation:

Depreciation on Fixed Assets have been provided on Written Down Value method at the rate and in the manner specified in Schedule XIV of the Companies Act, 1956.

e) Inventories:

Inventories other than Consignment and Trading goods are valued at lower of cost or net realisable value. Consignment and Trading goods are valued at cost.

f) Investments:

Investments are stated at cost.

g) Preliminary Expenses:

Preliminary expenses are being written off in equal installments over a period of five financial years.

h) Deferred Tax:

Deferred tax is recognised, subject to the consideration of prudence, 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 periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future.

l)Retirement Benefits:

Gratuity liability is accounted as per the actuarial contribution demanded by Life Insurance Corporation of India.

j)Transaction in Foreign Currency

Transaction in Foreign Currency are recorded at the rate of exchange in force on the respective date of such/contracted rates. Exchange difference on repayment/conversion/transaction are adjusted to

l)Carrying cost of fixed assets, if foreign currency liability relates to fixed assets.

ii) the Profit & Loss account in other cases.