Accounting Policies of Nutech Global Ltd. Company

Mar 31, 2024

36. SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

(A) Basis of preparation

The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) on historical cost basis except
for certain financial Instruments measured at fair value at the end of each reporting period as explained In the accounting policies
below.

(B) Current versus non-current classification

The Company presents assets and liabilities In the Balance Sheet based on current/non-current classification
An asset is current when it is:

¦ Expected to be realised or Intended to be sold or consumed In the normal operating cycle;

• Held primarily for the purpose oftrading;

¦ Expected to be realised within twelve months afterthe 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

Allablllty Is current when:

• It is expected to be settled in the normal operating cycle;

¦ It Is held primarily fbrthe purpose of trading;

• It is due to be settled within twelve months afterthe reporting period; or

• There is no unconditional rightto defer the settlement of the liability for at least twelve months afterthe reporting period.

The Company classifies all other liabilities as non-current.

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

Operating cycle

Operating cycle of the Company is the time between the acquisition of assets for processing and their realisation in cash or cash
equivalents. As the Company''s normal operating cycle Is not clearly Identifiable, It Is assumed to be twelve months.

(C) Use of estimates and Judgments

In preparing these financial statements, management has made judgments, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, Income and expenses. Management believes
that the estimates used in the preparation of the financial statements are prudent and reasonable. Actual result may differ from
these estimates.Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized prospectively.

Judgments

Information about judgments made in applying accounting policies that have the most significant effects on the amounts
recognized in the financial statements have been given below:

¦ Classification of financial assets: assessment of business model within which the assets are held and assessment of
whether the contractual terms of the financial asset are solely payments of principal and interest on the principal amount
outstanding.

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the
subsequent period financial statements Is Included below:

• Estimation of current and deferred fax expense and asset/ liability.

• Esti mated usefu I life of property, plant and equipment.

• Estimation of defined benefit obligation.

• Measurement and likelihood of occurrence of provisions and contingencies.

(D) Falrvalua of Financial Instruments:

Fair value Is the price that would be received to sell an asset or paid to transfer a liability In an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:

In the principal market for the asset or liability
Or

•In the absence of a principal market, in the most advantageous market for the asset or liability.

In determining the fair value of its financial instruments, the company uses a variety of methods and assumptions that are based on
market conditions and risks existing at each reporting date. All methods of assessing fair value result In general approximation of value
and such value may never actually be realized. 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.

Refer Note No.—38 in for the disclosure on carrying value and fair value of financial assets and liabilities. For financial assets and
liabilities maturing within one year from the balance sheet date and which are not carried at fair value, the carrying amount approximate
falrvalueduetotheshort maturity of these Instruments.

(E) Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period
of time to get ready for Its Intended use or sale are capitalised as part of the cost of the respective asset. All other borrowing costs are
expensed in the period in which they occur. Borrowing costs consist of Interest and other costs that the Company incurs in connection
with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing
costs.

(F) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company, the Company retains neither
continuing managerial Involvement to the degree usually associated wtth ownership nor effective control over the goods sold, and the
revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the
consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected
on behalf of the government.

Sale of goods

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer,
which generally coincides with dispatch. Revenue from export sales are recognized on shipment basis GST and other taxes on sales are
excluded from revenue.

Rendering of services

Revenue from job work services is recogn ized based on the services rendered in accordance with the terms of contracts.

Interest Income

Interest Inoomefromaflnandal asset Is recognized using effective Interest rate method. Interest Income Is Included In other Income In the
statement of profit or loss.

Other operational revenue

Other operational revenue represents Income earned from the actlvttles Incidental to the business and Is recognized when the right to
receive the income is established as per the terms of the contract.

Other Income

Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic benefits
will flow to the company and the amount of Income can be measured reliably.

(G) Proparty, plant and aqulpmant

Property, plant and equipment is stated at cost, net of accumulated depredation and accumulated Impairment losses, if any. All other
repair and maintenance coats are recognized In profit or loss as Incurred. Borrowing cost relating to acquisition / construction of fixed
assets which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till
such assets are ready to be put to uee.

Capital work-in-progress comprises cost of fixed assets that are not yet Installed and ready for their Intended use at the balance sheet
date.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable
thatfutu re economic benefits associated with the Item will flow to the entity and the coat can be measured reliably.

Depredation

Depredation on property, plant and equipment Is provided so as to write off the cost of assets less residual values over their useful lives of
the assets, using the straight line method as prescribed under Part C of Schedule 11 to the Companies Act 2013.

When parts of an item of property, plant and equipment have different useful life, they are accounted for as separate Kerns (Major
Components) and are depreciated over their useful life or over the remaining useful life of the principal assets whichever Is less.
Management reviews the estimated useful lives and residual values of the assets annually In order to determine the amount of
depreciation / amortization to be recorded during any reporting period. The useful lives and residual values are based on the Company''s
historical experience with similar assets and take Into account anticipated technological changes. The depredation / amortization for
future periods is revised if there are significant changes from previous estimates.

(H) Intangible assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less accumulated
amortlzatlon/depletlon and Impairment loss, If any. Such cost Indudes purchase price, borrowing costs, and any cost dlredly attributable
to bringing the asset to its working condition for the intended use, net charges on foreign exchange contracts and adjustmentsarising
from exchange rate variations attributable to the Intangible assets.

Subsequent costs are Included In the asset''s carrying amount or recognized as a separate asset, as appropriate, only when It Is probable
that future economic benefits associated with the Kem will flow to the entity and the cost can be measured reliably.

(I) Inventories

Inventories are valued as under

Rawmatertal - At Cost or NRV whichever Is lower

Stock In process -At Cost or NRV whichever Is lower

Stores, spares ate. -At Cost or NRV whichever is lower

Finished Goods -At lower of Cost or Net Realizable value.

•Raw materials: cost indudes cost of purchase and other costs incurred in bringing the inventories to their present location and
condition. Cost Is determined on first In, first out basis.

•Finished goods and work In progress: cost Indudes cost of dlred materials and labour and a proportion cf manufacturing overheads
based on the normal operating capacity, but excluding borrowing costs. Cost is determined on first in, first out basis
•Traded goods: Cost Includes cost of purchase and other costs Incurred in bringing the inventories to their present location and
condition. Cost Is determined on weighted average basis.

All other Inventories of stores, consumables, project material at site are valued at cost. The stock of waste Is valued at net realisable
value

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the
estimated costs necessary to make the sale. Items of Inventories are measured at lower of cost and net realisable value after providing
forobsolescence.

(J) Impairment of eon-financial assets - property, plant and equipment and intangible assets

The Company assesses at each reporting date ae to whether there is any Indication that any property, plant and equipment and
Intangible assets or group of assets, called cash generating untts (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.

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Mar 31, 2015

A) The financial statements have been prepared under the Historical Cost Concept & as per Applicable Indian Accounting Standards issued by Institute of Chartered Accountants of India in accordance with accounting principles generally accepted in India.

b) The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The claims, rate difference, discounts and interest on Debtors & Creditors are unascertainable and accounted for as and when settled.

2. FIXED ASSETS AND DEPRECIATION

a) Fixed Assets are stated at cost (including addition in value due to revaluation) less accumulated depreciation and impairments.

b) Expenditure including cost of financing incurred in the cost of construction installation and commis- sioning of project, property, plant or equipment till the commencement of the commercial production are capitalized and included in the cost of respective fixed assets.

c) Depreciation is provided on straight line method based on useful lives of assets as prescribed under the transitional provisions of Schedule II of Companies Act, 2013 on pro-rata basis. As the Schedule II comes into effect from 1 April 2014, the carrying amount of the assets as on that date have been depreciated over the remaining useful life of the asset after retaining the residual value, as prescribed by the relevant schedule. Reassessment of useful life of certain assets, where ever done, is based on the external technical advice taken by the company.

d) Depreciation on increase in value of fixed assets due to revaluation is charged to Revaluation Reserve Account & Fixed asset directly.

e) Company have a policy to fully depreciate assets upto Rs.5000/- in the year of acquisition. Hence the assets costing less than Rs.5000/- have been fully depreciated in the year of acquisition.

3. IMPAIRMENT OF ASSETS

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

a. the provision for impairment loss, if any, required or

b. the reversal, if any, required for impairment loss recognized in previous periods.

Impairment loss is recognized when the carrying amount of an asset exceed its recoverable amount. Recov- erable amount is determined

a. in the case of an individual asset, at the higher of net selling price and the value in use.

b. in the case of cash generating unit (a group of assets that generates identified independent cash flows), at higher of the cash generating unit's selling price and the value in use.

Value in use is determined as the present value of estimated future cash flow from the continuing use of assets and from its disposal at the end of its useful life.

4. INVENTORIES

Inventories of Raw Material, Semi Finished Goods and Finished Goods are stated at cost or net realizable value whichever is lower. Stores and Spares, packing Material are stated at cost. Cost comprises of cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Cost formulae used are 'First-in-First-out', 'Weighted Average cost' or 'specific identification', as applicable.

5. EMPLOYEE'S BENEFITS

Short term and long term employee's benefit including Gratuity and Leave Encashment are recognized as an expense at the un-discounted amount in the profit and loss account of the year in which related service is rendered. .

6. MISCELLANEOUS EXPENDITURE

Public Issue Expenses are amortized over a period of 10 years.

7. TAXATION

Income tax comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized if there is a reasonable certainty of realization.

8. FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies remaining unsettled at the end of the year are translated at year-end rate. Exchange differences arising on the settlement of monetary items or on restate- ment of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

9. BORROWING COST

Borrowing costs that are directly attributable to the acquisition/ construction of fixed assets, till the time such assets are ready for intended use, are capitalized as part of the cost of the assets. Other borrowing costs are recognized as an expense in the year in which they are incurred.

10. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estima- tion, if

* the Company has a present obligation as a result of past event,

* a probable outflow of resources is expected to settle the obligation and

* the amount of the obligation can be reliably estimated Contingent Liability is disclosed in case of

a. a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation

b. a possible obligation, unless the probability of outflow of resources is remote.

Contingent Assets are neither recognized, nor disclosed.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet Date.

Significant Accounting Policies The accompanying notes are an integral part of the financial statements

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Mar 31, 2014

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) The financial statements have been prepared under the Historical Cost Concept.

b) The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The claims, rate difference, discounts and interest on Debtors & Creditors are unascertainable and accounted for as and when settled.

2. FIXED ASSETS AND DEPRECIATION

a) Fixed Assets are stated at cost (including addition in value due to revaluation) less accumulated depreciation and impairments.

b) Depreciation on Fixed Assets is provided on straight-line method at the rate and in manner pre- scribed in Schedule XIV to the Companies Act, 1956 on pro-rata basis. Depreciation on increase in value of fixed assets due to revaluation is charged to Revaluation Reserve Account.

3. IMPAIRMENT OF ASSETS

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

a. the provision for impairment loss, if any, required or

b. the reversal, if any, required for impairment loss recognized in previous periods.

Impairment loss is recognized when the carrying amount of an asset exceed its recoverable amount. Recoverable amount is determined

a. in the case of an individual asset, at the higher of net selling price and the value in use.

b. in the case of cash generating unit (a group of assets that generates identified independent cash flows), at higher of the cash generating unit''s selling price and the value in use.

Value in use is determined as the present value of estimated future cash flow from the continuing use of assets and from its disposal at the end of its useful life.

4. INVENTORIES

Inventories of Raw Material, Semi Finished Goods and Finished Goods are stated at cost or net realizable value whichever is lower. Stores and Spares, packing Material are stated at cost. Cost comprises of cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Cost formulae used are ''First-in-First-out'', ''Weighted Average cost'' or ''specific identification'', as applicable.

5. EMPLOYEE''S BENEFITS

Short term and long term employee''s benefit including Gratuity and Leave Encashment are recognized as an expense at the un-discounted amount in the profit and loss account of the year in which related service is rendered. .

6. MISCELLANEOUS EXPENDITURE

Public Issue Expenses are amortized over a period of 10 years.

7. TAXATION

Income tax comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized if there is a reasonable certainty of realization.

8. FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies remaining unsettled at the end of the year are translated at year-end rate. Exchange differences arising on the settlement of monetary items or on restatement of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

9. BORROWING COST

Borrowing costs that are directly attributable to the acquisition/ construction of fixed assets, till the time such assets are ready for intended use, are capitalized as part of the cost of the assets. Other borrowing costs are recognized as an expense in the year in which they are incurred.

10. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estima- tion, if the Company has a present obligation as a result of past event, a probable outflow of resources is expected to settle the obligation and " the amount of the obligation can be reliably estimated Contingent Liability is disclosed in case of

a. a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation

b. a possible obligation, unless the probability of outflow of resources is remote.

Contingent Assets are neither recognized, nor disclosed.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet Date.

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Mar 31, 2013

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) The financial statements have been prepared under the Historical Cost Concept.

b) The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The claims, rate difference, discounts and interest on Debtors & Creditors are unascertainable and accounted for as and when settled.

2. FIXED ASSETS AND DEPRECIATION

a) Fixed Assets are stated at cost (including addition in value due to revaluation) less accumulated depreciation and impairments.

b) Depreciation on Fixed Assets is provided on straight-line method at the rate and in manner prescribed in Schedule XIV to the Companies Act, 1956 on pro-rata basis. Depreciation on increase in value of fixed assets due to revaluation is charged to Revaluation Reserve Account.

3. IMPAIRMENT OF ASSETS

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

a. the provision for impairment loss, if any, required or

b. the reversal, if any, required for impairment loss recognized in previous periods.

Impairment loss is recognized when the carrying amount of an asset exceed its recoverable amount. Recoverable amount is determined

a. in the case of an individual asset, at the higher of net selling price and the value in use.

b. in the case of cash generating unit (a group of assets that generates identified independent cash flows), at higher of the cash generating unit''s selling price and the value in use.

Value in use is determined as the present value of estimated future cash flow from the continuing use of assets and from its disposal at the end of its useful life.

4. INVENTORIES

Inventories of Raw Material, Semi Finished Goods and Finished Goods are stated at cost or net realizable value whichever is lower. Stores and Spares, packing Material are stated at cost. Cost comprises of cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Cost formulae used are ''First-in-First-out'', ''Weighted Average cost'' or ''specific identification'', as applicable,

5. EMPLOYEE''S BENEFITS

Short term and long term employee''s benefit including Gratuity and Leave Encashment are recognized as an expense at the un-discounted amount in the profit and loss account of the year in which related service is rendered. .

6. MISCELLANEOUS EXPENDITURE

Public Issue Expenses are amortized over a period of 10 years.

7. TAXATION

Income tax comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized if there is a reasonable certainty of realization.

8. FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies remaining unsettled at the end of the year are translated at year-end rate. Exchange differences arising on the settlement of monetary items or on restatement of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

9. BORROWING COST

Borrowing costs that are directly attributable to the acquisition/ construction of fixed assets, till the time such assets are ready for intended use, are capitalized as part of the cost of the assets. Other borrowing costs are recognized as an expense in the year in which they are incurred.

10. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if the Company has a present obligation as a result of past event, a probable outflow of resources is expected to settle the obligation and the amount of the obligation can be reliably estimated.

Contingent Liability is disclosed in case of

a. a present obligation arising from a past event, when it is not probable that an outflow of resources with be required to settle the obligation

b. a possible obligation, unless the probability of outflow of resources is remote.

Contingent Assets are neither recognized, nor disclosed.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet Date.

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Mar 31, 2012

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) The financial statements have been prepared under the Historical Cost Concept.

b) The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The claims, rate difference, discounts and interest on Debtors & Creditors are unascertainable and accounted for as and when settled.

2. FIXED ASSETS AND DEPRECIATION

a) Fixed Assets are stated at cost (including addition in value due to revaluation) less accumulated depreciation and impairments.

b) Depreciation on Fixed Assets is provided on straight-line method at the rate and in manner prescribed in Schedule XIV to the Companies Act, 1956 on pro-rata basis. Depreciation on increase in value of fixed assets due to revaluation is charged to Revaluation Reserve Account.

3. IMPAIRMENT OF ASSETS

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

a. the provision for impairment loss, if any, required or

b. the reversal, if any, required for impairment loss recognized in previous periods. Impairment loss is recognized when the carrying amount of an asset exceed its recoverable amount. Recover- able amount is determined

a. in the case of an individual asset, at the higher of net selling price and the value in use.

b. in the case of cash generating unit (a group of assets that generates identified independent cash flows), at higher of the cash generating unit's selling price and the value in use. Value in use is determined as the present value of estimated future cash flow from the continuing use of assets and from its disposal at the end of its useful life.

4. INVENTORIES

Inventories of Raw Material, Semi Finished Goods and Finished Goods are stated at cost or net realizable value whichever is lower. Stores and Spares, packing Material are stated at cost. Cost comprises of cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Cost formulae used are 'First-in-First-out', 'Weighted Average cost' or 'specific identification', as applicable.

5. EMPLOYEE'S BENEFITS

Short term and long term employee's benefit including Gratuity and Leave Encashment are recognized as an expense at the un-discounted amount in the profit and loss account of the year in which related service is rendered. .

6. MISCELLANEOUS EXPENDITURE

Public Issue Expenses are amortized over a period of 10 years.

7. TAXATION

Income tax comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized if there is a reasonable certainty of realization.

8. FOREIGN CURRENCYTRANSACTIONS

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies remaining unsettled at the end of the year are translated at year-end rate. Exchange differences arising on the settlement of monetary items or on restatement of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

9. BORROWING COST

Borrowing costs that are directly attributable to the acquisition/ construction of fixed assets, till the time such assets are ready for intended use, are capitalized as part of the cost of the assets. Other borrowing costs are recognized as an expense in the year in which they are incurred.

10. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if the Company has a present obligation as a result of past event, " a probable outflow of resources is expected to settle the obligation and " the amount of the obligation can be reliably estimated " Contingent Liability is disclosed in case of

a. a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation

b. a possible obligation, unless the probability of outflow of resources is remote.

Contingent Assets are neither recognized, nor disclosed.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet Date.

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Mar 31, 2010

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) The financial statements have been prepared under the Historical Cost Concept.

b) The company generally follows mercantile system of accounting and recognizes significant herns of income and expenditure on accrual basis. The claims, rate difference, discounts and interest on Debtors & Creditors are unascertainable and accounted for as and when settled.

B) FIXED ASSETS AND DEPRECIATION

a) Fixed Assets are stated at cost (including addition in value due to revaluation) less accumulated depreciation and impairments.

b) Depreciation on Fixed Assets is provided on straight-line method at the rate and in manner prescribed in Schedule XIV to the Companies Act, 1956 on pro-rata basis. Depreciation on increase in value of fixed assets due to revaluation is charged to Revaluation Reserve Account.

C) IMPAIRMENT OF ASSETS

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine

a. the provision for impairment loss, if any, required or

b. the reversal, if any, required for impairment loss recognized in previous periods.

Impairment loss is recognized when the carrying amount of an asset exceed its recoverable amount. Recoverable amount is determined

a. in the case of an individual asset, at the higher of net selling price and the value in use.

b. in the case of cash generating unit (a group of assets that generates identified independent cash flows), at higher of the cash generating units selling price and the value in use. Value in use is determined as the present value of estimated future cash flow from the continuing use of assets and from its disposal at the end of its useful life.

D) INVENTORIES

Inventories of Raw Material, Semi Finished Goods and Finished Goods are stated at cost or net realizable value whichever is lower. Stores and Spares, packing Material are stated at cost. Cost comprises of cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Cost formulae used are First-in-First-out, Weighted Average cost or specific identification, as applicable.

E) SALES

Sales are stated net of trade discount.

F) PURCHASES

Purchases of Raw material include late payment charges.

G) EMPLOYEES BENEFITS

Short term and long term employees benefit including Gratuity and Leave Encashment are recog- nized as an expense at the un-discounted amount in the profit and loss account of the year in which related service is rendered.

H) MISCELLANEOUS EXPENDITURE

Public Issue Expenses are amortized over a period of 10 years.

I) TAXATION

Income tax comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substan- tially enacted by the balance sheet date. Deferred tax assets are recognized if there is a reasonable certainty of realization.

J) FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies remaining unsettled at the end of the year are translated at year-end rate. Exchange differences arising on the settlement of monetary items or on restatement of monetary items at rates different from those at which they were initially

jecorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

K) BORROWING COST

Borrowing costs that are directly attributable to the acquisition/construction of fixed assets, till the time such assets are ready for intended use, are capitalized as part of the cost of the assets Other borrow- ing costs are recognized as an expense in the year in which they are incurred.

L) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a. the Company has a present obligation as a result of past event,

b. a probable outflow of resources is expected to settle the obligation and j c, the amount of the obligation can be reliably estimated

Contingent Liability is discosed in case of

a. a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation

b. a possible obligation, unless the probability of outflow of resources is remote. Contingent Assets are neither recognized, nor disclosed.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet Date.