Accounting Policies of Omax Autos Ltd. Company

Mar 31, 2025

1. GENERAL INFORMATION

Omax Autos Limited (the Company) is a company limited by shares, incorporated, and domiciled in India. The company''s registered office is situated at - Plot no. B-26, Institutional Area, Sector-32, Gurugram, Haryana, India''. The shares of the Company are listed on two stock exchanges in India i.e., National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

The Company is engaged in business of manufacturing and selling of sheet metal components. The Company sells its products in India as well as various other global markets but has a dominant presence in domestic market.

The financial statements for the year ended March 31, 2025, were approved by the Board of Directors on May 02, 2025.

2. BASIS OF PREPARATION & PRESENTATION Statement of Compliance with Ind AS:

These financial statements have been prepared and comply with all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (“the Act"), read together with the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act and presentation requirements of Division II of the Schedule III of the Act.

Functional and presentation currency:

Company''s financial statements are presented in Indian Rupees, which is also its functional currency. All amounts in the financial statements and accompanying notes are presented in lakhs Indian Rupees and have been rounded-off to two decimal places in accordance with the provisions of Division II of Schedule III to the Companies Act, 2013, unless stated otherwise.

Accounting convention:

The financial statements have been prepared on an accrual and historical cost basis except for the following items:

• Certain financial assets and liabilities (including derivative instruments) that are measured at fair value.

• Net defined benefit (asset)/ liability - present value of defined benefit obligations less fair value of plan assets.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Based on the nature of products/ activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

Measurement of fair values

A number of the Company''s accounting policies and disclosures require measurement of fair values, for both financial and non-financial assets and liabilities. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities and the mutual funds are valued using the closing net asset value (NAV) as at the balance sheet date.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable -inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible.

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

Further information about the assumptions made in measuring fair values is included in the following notes:

- Note 7 - investment property; and

- Note 42(o) - financial instruments

3. Material Accounting Policies:

Use of estimates and judgment:

The preparation of financial statements in conformity with generally accepted accounting principles in India requires management to make judgments, estimates and assumptions that affect the reported amount of revenue, expenses, assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the results of operations during the reporting year end. Although these estimates and associated assumptions are based upon historical experiences and various other factors that are considered relevant besides management''s best knowledge of current events and actions, actual results could differ from these estimates. The estimates and underlying assumptions are reviewed on a periodic basis.

Any revision in the accounting estimates is recognized in the period in which the results are known/materialize.

Revenue Recognition:

i. Revenue from sale of goods is recognized when an entity transfers the control of

goods and services to the customer at an amount to which the entity expects to be entitled following a five-step model.

Sale of goods (including scrap): Revenue from the sale of goods is recognised at the point in time when control of the goods is transferred to the customer, generally on delivery of the goods. The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated (e.g., warranties). Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration). Taxes (GST) collected on behalf of the government are excluded from Revenue. The transaction price of goods sold and services rendered is net of variable consideration on account returns, discounts, customer claims and rebates, etc.

ii. Other income including rent etc. is recognised on an accrual basis. Interest income is recognised using the effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset.

H Sale of Services: In contracts involving the rendering of services, revenue is measured using the proportionate completion method and are recognized net of service tax or goods and service tax as applicable.

iv. Dividend income from investments is recognised when the shareholder''s right to receive payment has been established.

Property, plant and equipment

Property, plant, and equipment (including furniture, fixtures, vehicles, etc.) held for use in the production or supply

of goods or services, or for administrative purposes, are stated in the balance sheet at cost less accumulated depreciation.

Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses, net of cenvat / GST credit, wherever applicable that is directly attributable to the acquisition of the items.

Freehold land is carried at cost of acquisition.

Cost represents all expenses directly attributable to bringing the asset to its working condition

capable of operating in the manner intended.

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 Company and the cost of the item can be measured reliably.

Land and buildings acquired/constructed are categorized as Land and buildings.

Intangible assets

Intangible assets acquired separately-

Intangible assets that are acquired separately are carried at cost less accumulated amortisation and amortised on a straight-line method over a period of 4 years.

Depreciation and Amortisation

Depreciation on assets belonging to Company and established on leasehold land is charged over the period of agreement. Improvements to leased premises are depreciated over the balance tenure of leasehold land.

Depreciation is charged on a pro-rata basis at the straight-line method over estimated economic useful lives of its property, plant and equipment generally in accordance with that provided in the Part C of Schedule II of the Companies Act, 2013 other than assets mentioned below -

Particulars	Life (in years)
Dies, Tools & Fixtures	3
Rack, Bins, & Trollies	5

An item of property, plant and equipment is de-recognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

An intangible asset is de-recognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset are recognised in profit or loss when the asset is de-recognised.

Depreciation is not recorded on capital work-in-progress until construction and installation are complete and the asset is ready for its intended use.

Impairment of tangible and intangible assets

At each balance sheet date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the carrying amount of the asset (or cash-generating unit) exceeds its recoverable amount an impairment loss is recognised in the Statement of Profit & Loss to the extent the carrying amount exceeds the recoverable amount.

Inventories

Stores & spares parts and loose tools are stated at cost.

Raw material & components finished goods and work in progress are valued at cost or net realizable value whichever is lower.

Scrap is valued at net realisable value.

The basis for determining the cost of various inventories is as under:

Particulars	Basis of valuation
Raw material, Stores & Tools	At weighted average cost
Work in Progress	Material cost plus appropriate portion of labour and production overheads.
Finished Goods & Goods in transit	At cost or net realisable value whichever is less.

Finished Goods and Scrap are inclusive of applicable taxes thereon, wherever applicable.

Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and demand deposits with an original maturity of three months or less and highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

Assets held for sale.

Assets of disposal groups (current and non-current assets) that is available for immediate sale and where the sale is highly probable of being completed within one year from the date of

classification are considered and classified as assets held for sale.

The assets which are reclassified as current assets as “Assets Held for Sales" are not depreciated or amortised.

Government grants

Grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received.

Government grants are recognised in the Statement of Profit and Loss on a systematic basis over the years in which the Company recognises as expenses the related costs for which the grants are intended to compensate or when performance obligations are met.

The benefit of a government loan at a below-market rate of interest and the effect of this favourable interest is treated as a government grant. The Loan or assistance is initially recognized at fair value and balance the government grant is measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates. Later on Grant recognised to the Statement of Profit and Loss as an notional income on a systematic basis over the years of loan in which the Company also recognises notional finance cost as an expenses over fair value of the loan, net impact of same become equivalent to overall loan initially received and payable after expiry of loan tenure as per the accounting policy applicable to financial liabilities.

Financial instruments

Financial assets and financial liabilities are recognised when we become a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Financial assets

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value through other comprehensive income or profit and loss, depending on the classification of the financial assets.

All investments in the scope of Ind AS 109 are measured at fair value. Equity instruments included within the FVTPL category, if any, are measured at fair value with all changes

recognized in statement of profit or loss.

Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, trade receivables, loans & advances and other contractual rights to receive cash or other financial assets.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights.

Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flow from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

Financial liabilities

Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Financial liabilities

Financial liabilities that are not held-for-trading are measured at amortised cost at the end of subsequent accounting periods.

De-recognition of financial liabilities

The Company derecognises financial liabilities when its obligations are discharged, cancelled or have expired.

Foreign Currency Transactions

Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing on the date of the transaction.

Exchange differences arising on foreign currency transaction settled during the year are recognized in the Profit & Loss Account for the year except to the extent, exchange differences which are regarded as an adjustment to interest costs on foreign currency borrowings for specific assets/ project asset, are capitalised as part of borrowing costs.

All the monetary items denominated in foreign currency outstanding at the year-end are translated at exchange rates prevailing on the date of balance sheet. The resulting exchange differences whether any income or expenses on account of exchange difference either on settlement or on translation are recognised in Profit & Loss Account for the year.

In case of Forward contracts, the proportionate differences till end of reporting period between the forward rate and the exchange rate on the date of the transaction are recognized in the profit & loss account except to the extent, proportionate differences which are regarded as an adjustment to foreign currency transaction for specific assets/ project asset, are capitalised as part of borrowing costs.

Borrowing Costs

Borrowing costs, general or specific, that are 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 a substantial period of time to get ready for intended use. All other borrowing costs are charged to the statement of profit and loss.

The company determines the amount of borrowing costs eligible for capitalisation as the actual borrowing costs incurred on that borrowing during the year less any interest income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets, to the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying-assets. In case if the company borrows generally and uses the funds for obtaining a qualifying asset, borrowing cost eligible for capitalisation rate to the extent the expenditures incurred on that asset.

Borrowing cost includes exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the finance cost.

Taxation

Income Tax Expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered.

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

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity.

Provision and contingent liability

Provisions are recognized when the Company has a present legal or constructive obligation because 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.

On an ongoing basis, the Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss Contingencies that are considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Gain contingencies are not recognized until the contingency has been resolved and amounts are received or receivable.

Employee benefit Plans

The details of various employee benefits provided to employees are as under:

Defined Benefit Plan and Other long-term benefits

The liability of gratuity plan is provided based on actuarial valuation under Projected Unit Credit Method at the end of each financial year. Remeasurement Gains and losses arising from experiences adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income.

An actuarial valuation involves making various assumptions that may differ from actual

developments in the future. These include the determination of the discount rate; future salary increases and mortality rates.

Company contributes the ascertained liability worked out by Life Insurance Corporation of India with whom the plan assets are maintained.

Provision for due earned leaves is determined using Projected Unit Cost method, with actuarial valuation being carried out at Balance Sheet date.

Defined Contribution Plans

Liability for superannuation fund is computed based on the premium calculated and paid to LIC of India in respect of employees covered under Superannuation Fund Policy.

Provident Fund & ESI liabilities are recognised based on actual liability accrued and paid to respective authorities.

Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise.

Items of income or expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ''other comprehensive income'' include re-measurement of defined benefit plans, foreign currency translation differences arising on translation of foreign operations and fair value gains or (losses) on equity instruments.

Leases:

The Company assesses at inception of contract whether it contains a lease. That is, if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration.

1. Company as a Lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

i) Right- of- use Assets

The Company recognises right-of-use assets ("Rou Assets") at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lower of the lease term and the estimated useful life of the assets. If ownership of the leased asset transferred to the company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment.

ii) Lease Liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments to be paid to lessor over the period of lease. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date. Accordingly, after the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to purchase the underlying asset. Lease liabilities have been presented under the head “Non-Current Financial Liabilities".

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption that are low value. Lease payments on short term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

2. Company as a Lessor

The Company as a lessor needs to classify each of its leases either as an operating lease or a finance lease. A lease is classified as a finance lease if I it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset.

i) Finance lease

At the commencement date, the Company will recognise assets held under a finance lease in its Balance Sheet and present them as a receivable at an amount equal to the net investment in the lease. Net investment is the discount value of lease receipts net of initial direct costs using the interest rate implicit in the lease. For subsequent measurement of finance leased assets, the Company will recognise interest income over the lease period, based on a pattern reflecting a constant periodic rate of return on the Company''s net investment in the lease.

ii) Operating lease

The Company will recognise lease receipts from operating leases as income on either a straightline basis or another systematic basis. The Company will recognise costs, including depreciation incurred in earning the lease income as expense.

Service concession arrangements:

The Company applies Appendix D to Ind AS 115 for public-to-private service concession arrangements where the grantor controls the services, recipients, pricing, and retains significant residual interest in the infrastructure. .

Infrastructure used in a service concession arrangement for its useful life (i.e., whole-life assets) is also within the scope of Appendix D if the above control criteria are met.

Where the Company receives a right to charge users of the public service (and not a right to receive fixed payments from the grantor), the arrangement is accounted for under the Intangible Asset Model. The corresponding intangible asset is recognized in accordance with Ind AS 38 -Intangible Assets, measured at the fair value of consideration received or receivable for construction or upgrade services rendered.

The intangible asset is amortized over the concession period on a systematic basis, usually on a straight-line method. Revenue from construction and operational services is recognized over time as per Ind AS 115. Borrowing costs attributable to construction are capitalized in line with Ind AS 23 - Borrowing Costs

Cost Recognition

Costs and expenses are recognised when incurred and are classified according to their nature. Expenditure capitalised represents employee costs, stores, admin, travelling, borrowing, manufacturing supplies, and other expenses incurred for construction including product development undertaken by the Company.

Investment properties

Investment properties are properties (land and buildings) that are held for long-term rental yields and/or for capital appreciation. Investment properties are measured initially at cost, including transaction costs. After initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any. Subsequent expenditure is capitalised to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. Any repair and maintenance costs are expensed when they are incurred.

Earnings per Share

Basic earnings per share have been computed by dividing net profit or loss for the year attributable to equity share of the company by the weighted average number of shares outstanding during the year. Partly paid-up shares are included as fully paid equivalents according to the fraction paid up. Diluted earnings per share have been computed using the weighted average number of shares and dilutive potential shares, except where the result would be anti-dilutive.

Recent Accounting Pronouncement

The Ministry of Corporate Affairs vide notification dated 09^th September, 2024 and 28^th September 2024 notified the companies (Indian Accounting Standards) Second Amendment Rules 2024 and Companies (Indian Accounting Standards) third Amendment Rules, 2024 respectively, which amended/ notified certain Indian Accounting Standards (refer below) and are effective for annual reporting period beginning on or after 01^st April. 2024.

a. Ind AS 117:- Insurance Contract

b. Ind AS 116:- Lease liability in sale and lease back (amended)

These amendment did not have any effect on the amount recognized in current or prior period.

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Mar 31, 2024

?_r VdTeHal ^ei''onntine Policies::

L w.^L of L^Ciiihul n J.I i lI j li :3^i in¹ !tl:

Tto prrparal ion of financi;lI Tj lenients in Mufunnily wilh generail y accepted kCAinting pn i id pies in Jndia cul| u ire* man Luemcni to make judj''iner.ls. estimates and assumption) lhai aflfccl the rojroiled ameuns of revenue. expenses, asstts and linbilnics and disclosure of cum indent Lunililics oti the date pf the financial slasemcnis and I lie msulcs of operations during tbs reporting yeaf end Although Ihfse estimates and jissodmcd ^suOipdbi^ are based upon'' hisloflead eKptirien«:y and various oilier i&cfwsttut are coiufflentf relevant besides hkiinijainieuiV Uis! lod^o of eutrenl events iliiJ ix.lit>ns. iictnul nosuLls CulIlI dilfer from these iSlittialet The estimates and Underlying uSHLimplLL''m^ 3ie reviewed on a periortie basis. Any revision in ihe OLiLountin^ esti malts is rcoD^nircd in the period in 4 hneh the repairs ore Icnuwii mutmalixt

Revenue Recognition:

L Revenue fro in sale of goods is recognized wbefl, an entity transfers ihe control of goods and services to the customer at an amount lu vdiidi due aility cupcrfs u> be eotitkd following a five#ip model

Sale of Poods (including scrap?: licvcnue from the sale nf goods is rccccniscd al the point n Lime when control of Ihc uoods is Iransterred to ihe customer. generally nil delivery nf Lhc nontLs. The i ompany oon&iders vdielher there are other promises in the contract that tire separate pettormaiKe obligations to which a (Kmion ol''llte l reaction price needs 10 be ^Llloc^iod

r, Espua benefits ore accounted for on accrual basis if the entitlements can he estimated with reasonable accuracy and umdilions prLvederr Lu cl,j:m are reasonably e ^pecLcd IQ be fulti I led.

i Other iticosne inclodmj rent dc ^ racotfiistd on an nccntal basis- Interest income is rocojpiftij) using the effective interest method. The effective iraeresl me is the rate tlul exactly discounts estimated future cash receipts through the expected life of the linurucijl asset Lu thfJ^Tdra currying am&udl of a financial asset.

hr. Sale ist Services: hi Cu ntnPKjGf imnlving lire rendering ol serucec, fttvomie is miawired using the pmponiofinie cnmpleninn naerhixf und are rooogni^Ht net of service fair or goods and service ras as aipplieahlc¹. ¹

i: I Dr kltlicuk, or Jiff JidruinistrUive purposes* ji:c staled in the balsnee hIicl^ ill Hint Ic-sh accumulated

dcprei. i iim.l''1 i

L''nsl olf acquisition ji inclusive of ftiel^lt, dutiL¹*. l.:: lI cither MiddaiLiL evjttil&vs. net ol cental ¦ Gill credit, whtiftvtr applicable 11''^it is chrccttf nlLrirviUble Kj the trcqaisilion ClPUie Heins.

!''m:i:Il-i,c Liu! is Carried it! oust ut ukquiscLEUii

Cost represents ei3: expense* direct]J( iiUnbut-ihic lc> bnijritlg the asset 1

in I he riumni.T ir-Uvhkd

Subswuienl cosls are Included in the |wat*s cariyjftji amount ot recognised as it jupamie asser, os appropriate, only w-tiea it is probable that future vcunomie benefits itx*u iited ^''iUi ihe item -.vill :o the Cmpanji and Lhe com of rhe itemcai fee sk^sum! reliably.

3 and iU''-iJ buiWifi^acquiredftonHirUtwcl are catt^oifced as Lind :iti

ljirsiitjiihlL- assets

Intangible assets ne<| u i rv U rtjja ratdy-

]:t:aiiuirk assets Hi.:I arc auqttlEteil separately arc carried l''.i. vest Ires jtvjii''.Lkr.ed JiimnkutiLm und araurtiSed on u StrjighliUhe rncUiod over a period of J yekTy.

OiiltTnally-utricralccI iiikiiijililv assets- MStarvh and tleb dupnaenl cxpvndilure-

Lxpenduure cn rcscarc h -ac Livi I ick is rcenyused us an expense in Lhe period in which il is incurred.

Aji intemLilly-genenLed liiLanp^h.e a-iscs arising !iom djfrrelagdiEiit Jer Jrucn tie development phase at an hstcmaJ prjjeet\ is rccoegiiscd it'', unci only if, iL be available loi use or sulv and pi^bafiLi: future econoniiL benefits will be generalcd Inoni that asset.

IX''piceiulJura and Amortisation

Dep-reeiaiion on asseLi belonging to Company am) established on leasehold land is chatted over the period of apeesiwni [tttprovemerus to kstsed (utm i $es are deprec ialed over tlw balance Lei Jure of Leasehold land.

Depreciation is diarged on a fmHbti basis at Lhe straight-line method over estimated economic useful lives of rts-property. (Haul and equipmem generally in accordance wiih Lhai provided in lhe Part C of Schedule II of tibe Companies Act, 2flL'' orher Hunt esxeisimnttwnadbelflip -

An ilvm of property, plsmt :ir-H w|mpmv’rsf is flo-recnpnvicd up11? i-|.rji.-ti 1 i-; (SiEtL-rn i invJ ns ihj -:!il Ivi ^ni.L bcIWOCn lhe saJfti prthWedS nnd |J|C ¦. .in’..''Iji;''

amoonl of the ussl-i :miJ is reoo^nisEid in profit or lt>ss

An LnlijigfibJe assert is de iolvi^iUsolI oti Hispvsul. qr when no funtre eqq^Miwc hvnvfits not expeutod from sl.o or

Llinposol. Gam< or Ilispos mixing ftiiiti dvrovo^niiitin of sjl inian^iWo hjcmi, iiieasurod as the difference between the net disposal prtwcLil^ and 1lie carrying cmituitt of the usxet. use recognised in profit ne los-s when Lite asset i-- tk-recogniaed.

I^piociabuB i s nol recoded on capttu! wriik-in-preiLress until eunstniLlEOEL and itiElalkmoti are Cmltplcte 01 id the ii’ESk.²-. is ready fur Us intended ose.

1ni|j-iii mvii-t i]1 (jinftilili- mtd Iniiin^i We *»ets

At each balance she?t date, the Company reviews the carrying amounts of *$ laugpbte and i nl^n$cii?lc wsets to drtcnnine whclbcrthcnc in any ira^i-c^tLon ihat those assets have suffered an impairment less. It''any such indication exists, [lie recoverable jmaum of [lie assal is cEtimelod iq order to determine the cxlcnl of I he inisiairnicnt loss {if imyh

When it is nol possible So estimate Hit'' recoverable Mnuimt of an individtul a^sci. the tuinpury estinKWE. the recoverable arnomii ttf die tash^encristoj; unkuo ivtiich i ho asset belongs.

If rtie carrying amount of ihc asset tor cashogaieratirig unit) exceeds its recoverable (imount an impairment loss is

recognised ;i rhe Sraieineoi nf f^Jrofir A; 1 nss tnihc client i lie cnnyin.ii amount exceed^ :he recoverable uinounr

Inventories

Siore.s & spares pans mu: louse tooJe arc suited dcost

Raw uwLeriul Jt jfemponenfe Mnished goods uud wtwk in progress aru valMud ill cost Of met ivu livable value ^hiohevcf

Is flower

ScfJip is V iiltiol :ir IKt lUali^LllC VitldC.

I''l i''_ tiHsiri tin (KielniEiiiii\ 111 cost of varii''Ufi i-nvei:i .:

FJdftiibCij (JoodS and icnip ire irtClpiiVe o:'' applicable taxes Iherotm. * HtCrtVcr applicahlr

rser rcii''i sable value representsihe price fw Inventories css a H estf mated costs of completion and

cosTj necessary ro moke the sine.

Casli an d cash eq uiva lents

Cash :mct cash equivalents in the balance sheet comprise cash at hanks and tm hand and demand deposits wi1h an Lunjiinal maturity ui'' liirec months or less and highly liquid investments ihaE are readily cnn^ertitilc into known amounts of rash and which Bit subject m un uisteri Ileum risk of changes ia value tJrt ofwifcitiEdiitg bank uveidralls us they are considered an integral purL

¦ksscls held Tur idh.

Assets of disposal groups icuii L''iit amt ittCPrintBliiiMii^ ilui ts available In iwmctliaic sale.....I where itics&Je

is jai^hly plobablu III'' beilij; LLHnpJUul Will III. II IL- ;, L-Jl fnjm III''- date of C aSsfcTlCSlioc 4 re LL!iiiide:ed di uL d nt-si fkd as ajfeetH held for sale.

The asscLs which are redansiI''ted os euirenl auris as'' Ae-ia-Is field for Sales''" are uoL depreciate oi amurLlsed.

Irfivermncnt grants

Grants rtr\'' not retOjpuMsd -irihL [hoc s reasOnabfc iissiif-trW^ tft&l I he Company will comply ¦-• ith Lht! contl-lions it hacked tu I hem LinJ Unit I lx: gninlv will be rwecLtd.

Oositinfflent grants txt p^sogrttaed m iho Statement ol Profit and l on a ^ticinaiit lv\m over1 lie years in wftkti the j&Knpiay recognises as titpeoses [he Telantd cpats tor whrdi mo gntnij are intended to compeniate or when perfoiwanee oblations are niei

i Hetwiuafic £jf agowemnrsin Nsuiaisftbe^otv-tiwrkot rflic^mteresi and the effect dfthis fkjrourabte interest istriptrcd as :l noveinmeni grant. The J.oan tw !l>;sisi an re is iniiiilly recognized at fbirvHlne arid habnee the goveranvnit pr-ini Is measured as (ho diflcrenee between proceeds received and the fair \aiire nf ihe hunt na-ied OQ prevailing mmkei inler-e^L rues Later li-ji Brant <$coj£triped lo ih-c StitfcmcaH of Pn-hfil and Loss as an noticing income nn a sysiemnr-ra basis ovcriLn: years of kKin ir. mh tfco Coct^ffiny nlsc- recognise!!; nortonril tlnjmee lusI :is an expenses over Jiiir value ol''Lhe loan. neL bncucl ufsarrie bpddmc equivalent in (rtfctall Loan mi tiddly rficrivBd lend payable a:1er expiry of loajl lenuic os pvi llio feCxumtirt^ polity Applicable Lo Lmmrkil liabilities.

b''jn mi t i,i I ImiruitEhls

Financial asiasanil financial liabilities are recognised when we become a party iu i\k contractasl provisions of the

lir-.liu imtih

Financial assets and financial liabilities are initially measured at book value. Transaction costs thin am JLreclly attributable to [he aeqai sit ion nr issue of (inane i.J assets .1 itil financial 1, ubi I hies (other thani (Inaneial assets untl financial liuJbi lilies dt lair yilue through |noii1 or loss> ore added 10 nr dcduelcd from the book value to"ilue financial nsseLs 01 financial liabilities. as apEsropriuLe, on ipjlial rocogniiLon.

Transaction ousts directly attributable In Ihe requisition of financial assets cm finnncml liabilities at fair value through poofiL or l oss are recognised immediately in profit or -oss

fiipndnl asui''K

All RJUrtpeiiKCd financial assets ajV StiW-C|utrU ly measuiLMl III lliOir mil i rely uC tiLllCI aimsiliscd CitiA Qf fair Willie 1111 s 71 l l- 11 1111. l~ 1 -jLiirLpiL''IiLi''si''. •- '' nL-;:''iihj l;: xi''lil k:c>. JcpCtldlhJj Qh itic ¦.: I.j-.mI jl-jCiun i ¦ I lliu lni;tnLi;jl :is.-il-Is.

I ii 1 ] 1.11 r in uni u1 JiciarK-ijl

Tie Company imp^ie-s (he ospocted credit lo&s model for (fcognlsing impairment losi fimiscial oasets measured a1 amomsed cost, ti mie iwrivibla, loan?- & emd other contractuaJ righrslo recoil casii or chlucr Mn^ineial

ntKU. ²

L''i:l:i:k ::lI iLiibiJnifc

Financial tabiJictetthtl are nd heltradii^aie rneSttuMd at umbtlsHd com me end ofsabsejueM accounting periuds-

Pe-recogimkut of financial'', liabilities

''I he (. ontpany djcreMUjpises; fniiurcsal ItainiJiries syIteei LLh oblijiition^ are (liscliarpLvi, cancelled nr have expired. t''Dreij;| Currency I''ransafluuis

Tta(isaciioits?l(|^ndti^Ml far ionilgn cafneneies are nepuffly receded ai th-.- cschangc rates prevailing on (hodaio of rhe transaction,

Bs(i(iairige rtiffcrciiccs arising on foreign cnnency n MLns^tc-iion Mirle-d during ific year are rceogni/ed in the I’rn-fil £

E .iiss Account for ihe year c^rcpi ie> rhe ckiciu, cvehanre differences which me regarded a^gnaiijiKrnKnt 10 liiccneil costs nn foreign currency Kirawmcs ftn specific asscia |ir:>joci asud, arc capitalisedas purr oFbomriwinp coffe,

All lhe munriarv items denoni!nailed in fixei^n currency outstanding or the yeur-end istc tran''dated u: exchange rates prevadmu on tie date of balance sheet Thr result Lug exchunyc ''differences whether any im mne or fotpenses on uocGtirif rel''oaclun^o dillirreiLcc eilHwr on soLIk''iioul or mi Innis-lulhm me recognised ill Profit A LpsS Accuun² lor the year,

In case of Forward eomrjet*, Ub propoitiottate differences till end of reporting period between the forward raw and lire LAL idJi;^ rule on (toe datL of (he iron section arc wogiirecd in (lie proJil & I''.k>> bcl/mum <*cupi ;u Lhe exiciiL. ptopori miiull- djHtrcncm which me ic^ankd us an jlMn:-in i^hl 10 foreign euirency iti±i--;u:-iI i.>n ftn Kofccqfiii ahM-i* projccL asset, are capitaJispd aa ptnrL ofibqtTciwin^, com-.

Borrow Lr^ Cdlt

Borrowingcosn, general i.u *pcciik. 1h:ir are ¦Itribittabk L-, the acquisition or coiwtrnnfcD ol''qjfitfjfyin®H£icls arc capitalised at pan vt''die own of such assets, iijjfifiJilJfrBg a^-sni une Ihnl netcssai ily lakes a substantia] period of linn; ts jw; ready for inientfcd! use, AH mher bomrwiing ;n^ clinrgtd to tin; statement of profit ;u''i| Iw''f-

1 I I''J IJLHIIplIIV deLCTIIIlim tllL'' UIIH1LII11 LI f homi''A''lEI^ LLJ.Sl.S idlJJ.lbk H. M CUpLl gllHaLllMI It!-, |Ik II''-IuLlI IpLhTrLHy LN|i; LLI«|S

ilhaiai''itd On hal txnCOWmu dUE&(Ljl; I III- yCif ltSs any (IHCriM iftCCrirtf Cimcd Otl lejilpCtnUTy iilViMulCILL of Specif bo r rota i Jigs pending their expendrtiue oo quailing Liahei^. to die esi^n: Llut asi cmity boisow a fonda ^-ivccLtlc-cilly- for the puiposo of ohLiiniti^ o ctaalily ina-oiaerF. In cose if Llie eoaijHLiy borrow^ ucj^Fully oml oscs die funds for obtoinini; a quiLlifyin^ u^«t. W^rowing ecs1

eligible lor c-n^incl¦ ^:ation role pi tfic crctcihl 11k c*penditwc3itietimoi f''n dial asset.

Iti''iTovHnji i''nwt include; eWlxu^c difertves ^n-i-?in_ii foim foreign itoimmty borrtwif(gl to 1ho evteni nagiLTLlod aa ;lt ailpialmtul In Mil; !iiLiin« LDoat-

TliXa:lil.hCI

Inoome To.e £\peit^ repivsiiJics. 1hc itinit ofthO lax curreridy pay-iihl-e oiicl delerrcdl uix.

(lU)TO(lt LJ\

lhe (nx currentiy payable ^ hjsetl on tasuhlo profit for the year. Ttniablfl pnofil differs lr\>m profil betnre lax ns reported in the dolentcnl ot''pndn an_Ll .c-l-l beeuuw nf iiL-inf; of income or cspen''ja thin jra tasable c.r deduflibE# hu ndier years and iloms Lliiil jro nuvw Li.\:ihlL^- isr ,.|,jduCLihfo. The Company ''s ¦runifnL lax it calculated usLnj Ux mtus diiLl I ill''- if been luiol''Ll²:! eHT -iihslaiilively eflACted by lhe end of I be lopmliiiic pjcinhd.

Orltt''lftl [flit

L''»^t''^rcd Llx is- rccujnLscd en ¦c-n^pnr-ar;/ dir''fcrencL> between [he carryni]'' luitounls of iLSteis and LLabi Iiiilv jn 1hc Jlruneial .-.lEitrnoite and I he Eqrrcapordi rip tax bases used in the;C mnputali oa-ifi 1taxable prclll. UcfCited i,;:s Labi laics aie generally nctroLinised iisriiLI taxable icmperary iii [Terences. Deterred Lax assels. rue _uenernlly n^CiJgniacd tor all dcdLucI chi c Lempor.ijy diflercnees 1n die astern Him it is pmbahlc Ihot ijx.iblc profits will be nvoihhle against which those deductible temporary diffttUrtCeH eun be uliELsed.

The canyidy amount of deterred lax assets es peVifcltoed til :he end Gi''eufili rcportmi; period ural rfldiitfid Lu the extent Lti.Lt I js no IdiiMt probable Lliul t-ullicienc taxable pruJUs Mill be available to ullCrk all or pan el the assets Ire retro ve rod.

Deferred Lux ILabililies and asscis ere measured til Lie ux rales LhaL are expected lu apply an the period in iririeh die liability is seiLkxl cr Lie asset "realiserf. based on Lax rotes (mid tax law sj lhar have Eicon eiuettd ur sufrsliinlivciy enacted by ihe end %»l'' lire reporting ptiriwJ

TtVC illdasuruiiK''-nl of dCtlrreil laX liabitlliOs arid assCU rolTetts the IflX OOflStqiKrtitiB Cli-tU w''uvld lulKnY I''runi Hie niiinriLT in wddtll I he jCdrUpMy expect-^ a I Ills Ski of the ropbftiHg penud. W ruw« n Of sellle Hu! tiny lllg inlutiUlt of Utsaswis tuud Liabilities

Current and deferred tax hr tbt year

Current ;md deferred iax are recognised in profit ot ]tw&. except! wlten ilwy reUne in items ihm ire recogjiisetHn other

ls m ipienuriH-ix-L- income lie dircciLy jn ._¦ _lp.11[j..

1

E>ividend income fmm inveslincnis is fccogniscd when! he- shoroholdor''s nghr To receive paymenr ha-s been esl^hlished.

F''nipcrtj¹.plain and eqaipmeiil

Properly, p leint. nr it equipment linckidm^ Jiimilurc. fixliireE. tehiclts. el-c.? held for i.scm the promlcEiod dt supply

2

crmlil k>^¥ ;¦ r- the Weigbwd 4¥fernge ${ eredil Iuk-wk with the t^sfeciis-.’ risk-, of deficit oeetlirin^ il^

hVlCiyhlS.

ik:rL''c:n|£ililiHiil nf linaiiLjaL uSSrls

The Company doKoo^rtinos a nnincia] tinsel when the eoncractunl ri^litn to die cash flow from the asitt aKpirc, or when it trannlnrs the linanninl asset and substantially all the risks and rewards of Dwneiuhtp of the asset to another parly.

Kin one in I Eiahilirtcs

t Ui^iHeniiuk as or s\|mty

Dchr aad ifL|uiEv instruments Istsued by the Ctimpuny jrO L-IjSSitleJ erther financial HahilitiaS Or il-s e^uily in djCL''imLii ice with the lUHtAIKC ol I be COBtraciioil :irraii.''o:nL^rnls . b 11 ¦. I lie de lin lit i(M- Lht .1 fiiHtlC-ijd I i ah I lily jiiilL an L4|uiiy iOileuniL-HI.

---

Mar 31, 2018

1. SIGNIFICANT ACCOUNTING POLICIES:

Revenue Recognition:

i. Revenue from sale of goods is recognised when all significant risks and reward/ownership are transferred to the customers.

ii. Export benefits are accounted for on accrual basis if the entitlements can be estimated with reasonable accuracy and conditions precedents to claim are reasonably expected to be fulfilled.

iii. Other income including interest, rent etc. is recognised on accrual basis.

iv. Dividend income from investments is recognised when the shareholder’s right to receive payment has been established.

However where the ultimate collection of the same lacks reasonable certainty, revenue recognition is postponed to the extent of uncertainty.

Property, plant and equipment

Property, plant and equipment (including furniture, fixtures, vehicles, etc.) held for use in the production or supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost less accumulated depreciation.

Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses, net of cenvat / GST credit, wherever applicable.

Freehold land is carried at cost of acquisition.

Cost represents all expenses directly attributable to bringing the asset to its working condition capable of operating in the manner intended.

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 Company and the cost of the item can be measured reliably.

Land and buildings acquired/constructed are categorised as Land and buildings.

Transition to Ind AS

On Transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as at 1 April 2016 measured as per previous GAAP as well measured in accordance with Ind AS 16 Property, plant and equipment except assets on lease hold land and specified separately.

INTANGIBLE ASSETS

Intangible assets acquired separately-

Intangible assets that are acquired separately are carried at cost less accumulated amortisation and amortised on a straight line method over a period of 4 years.

Internally-generated intangible assets - research and development expenditure-

Expenditure on research activities is recognised as an expense in the period in which it is incurred.

An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, it will be available for use or sale and probable future economic benefits will be generated from that asset.

Depreciation and amortisation

Depreciation on assets belonging to Company and established on leasehold land is charged over the period of agreement.

Depreciation is charged on a pro-rata basis at the straight line method over estimated economic useful lives of its property, plant and equipment generally in accordance with that provided in the Part C of Schedule II of the Companies Act, 2013 other than assets mentioned below -

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from de recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.

Impairment of tangible and intangible assets

At each balance sheet date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the carrying amount of the asset (or cash-generating unit) exceeds its recoverable amount an impairment loss is recognised in the Statement of Profit & Loss to the extent the carrying amount exceeds the recoverable amount.

Inventories

Stores & spares parts and loose tools are stated at cost.

Raw material & components, finished goods and work in progress are valued at cost or net realisable value whichever is lower.

Scrap is valued at net realisable value.

The basis for determining the cost of various inventories is as under:

Finished Goods and Scrap are inclusive of applicable taxes thereon, wherever applicable.

Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at book value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the book value of the financial assets or financial liabilities, as appropriate, on initial recognition.

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Financial assets

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, trade receivables, loans & advances and other contractual rights to receive cash or other financial asset.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights.

Derecognition of financial assets The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

FINANCIAL LIABILITIES

Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Financial liabilities

Financial liabilities that are not held-for-trading are measured at amortised cost at the end of subsequent accounting periods.

Derecognition offinancial liabilities

The Company derecognises financial liabilities when its obligations are discharged, cancelled or have expired.

Foreign Currency Transactions

Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing on the date of transaction.

Exchange differences arising on foreign currency transaction settled during the year are recognized in the Profit & Loss Account for the year.

All the monetary items denominated in foreign currency outstanding at the year end are translated at exchange rates prevailing on the date of balance sheet. The resulting exchange differences whether any income or expenses on account of exchange difference either on settlement or on translation are recognised in Profit & Loss Account for the year.

In case of Forward contracts, the differences between the forward rate and the exchange rate on the date of the transaction are recognized in the profit & loss account

Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets of new projects 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 intended use.

Ind AS 109 requires transaction costs incurred towards origination of borrowing to be deducted from the carrying amount of borrowing on initial recognition. These costs are recognised in the profit and loss over the period of borrowings as part of the interest cost expenses by applying the effective interest rate method. All other borrowing costs are charged to revenue. Accordingly, Company has elected to apply Ind AS 109 except where the effect is expected to be not material.

Taxation

Income Tax Expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

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

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity.

Provision and contingent liability

On an ongoing basis, the Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss Contingencies that are considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Gain contingencies are not recognized until the contingency has been resolved and amounts are received or receivable.

Employee benefit Plans

The details of various employee benefits provided to employees are as under:

Defined Benefit Plan

The liability of gratuity plan is provided based on actuarial valuation under Projected Unit Credit Method at the end of each financial year based on which the Company contributes the ascertained liability to Life Insurance Corporation of India with whom the plan assets are maintained.

Provision for due earned leaves is determined using Projected Unit Cost method, with actuarial valuation being carried out at Balance Sheet date. Actuarial gain / loss arising after such valuation are charged to profit & loss account in the year in which earned leaves are settled.

Defined Contribution Plans

Liability for superannuation fund is computed on the basis of the premium collected and paid to LIC of India in respect of employees covered under Superannuation Fund Policy.

Provident Fund & ESI liabilities are recognised on the basis of actual liability accrued and paid to respective authorities.

Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise.

Items of income or expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ include remeasurement of defined benefit plans, foreign currency translation differences arising on translation of foreign operations and fair value gains or (losses) on equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and demand deposits with an original maturity of three months or less and highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.

Accounting for arrangements in the nature of lease:

Under appendix C to Ind AS17, an entity may enter into an arrangement comprising a transaction or a series of related transactions, that do not take the legal form of lease but convey a right to use an asset in return for a payment or series of payments. Arrangements meeting these criteria should be identified as either operating leases or finance leases.

For determining whether an arrangement is, or contains, a lease shall be based on the substance of the arrangement and requires an assessment of whether:

a) Fulfilment of the arrangement is dependent on the use of specific asset or assets; and

b) The arrangement conveys a right to use the asset.

The Company enters into agreement, comprising a transaction or series of related transactions that does not take the legal form of a lease but conveys the right to use the asset in return for a payment or series of payments. In case of such arrangements, the Company applies the requirements of Ind AS 17 - Leases to the lease element of the arrangement. For the purpose of applying the requirements under Ind AS 17 - Leases, payments and other consideration required by the arrangement are separated at the inception of the arrangement into those for lease and those for other elements.

Service concession arrangements:

Under Appendix A to Ind AS 11 - Service Concession Arrangements applies to public-to private service concession arrangements if:

The grantor controls or regulates what services the operator must provide with the infrastructure, to whom it must provide them, and at what prices: and

The grantor controls through ownership, beneficial entitlement or otherwise any significant residual interest in the infrastructure at the end of the term of the arrangement.

Is the infrastructure constructed or acquired by the operator from a third party for the purpose of the service arrangement OR is the infrastructure existing infrastructure of the grantor to which the operator is given access for the purpose of the service arrangement ?

Infrastructure used in a public-to-private service concession arrangement for its entire useful life (whole life of assets) is within the scope of this Appendix if the conditions in (a) above are met.

These arrangements are accounted on the basis of below mentioned models depending on the nature of consideration and relevant contract law.

Intangible asset model:

The intangible asset model is used by the Company, being an operator, receives a right (a license) to charge users of the public service. A right to charge users of a public services is not an unconditional right to receive cash because the amounts are contingent on to the extent that public uses the services.

Investment properties

Investment properties are properties (land and buildings) that are held for long-term rental yields and/ or for capital appreciation. Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.

The Company has availed deemed cost exemption in relation to property, plant and equipment on the date of transition as at April 1, 2016. Property,plant and equipment has been carried at the cost less accumulated depreciation on the date transition as at April 1, 2016 at the cost and depreciation determined under the previous GAAP.

Refer note no 21 for the assets pledged against loans.

For investment properties existing as on April 1, 2016 the company has used previous GAAP carried value as deemed costs. Investment properties are carrying at cost less accumulated depreciation. There is no income recognised in statement of profit & loss in respect of investment properties.

The fair values of the properties are Rs.8834.89 lacs. These valuations are based on valuations performed by an accredited independent valuer who is specialist in valuing these type of properties.

The Company has availed deemed cost exemption in relation to intangible assets on the date of transition as at April 1, 2016. Other intangible assets have been carried at the cost less accumulated amortisation on the date transition as at April 1, 2016 at the cost and amortisation determined under the previous GAAP.

---

Mar 31, 2016

NOTE- 25

1. SIGNIFICANT ACCOUNTING POLICIES :

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The Financial Statements are prepared on accrual basis of accounting under the historical cost convention , in accordance with the mandatory applicable accounting standards issued by The Institute of Chartered Accountants of India and the relevant presentational requirements of the Company Act, 2013.

(b) REVENUE RECOGNITION :

The revenue from sale of products is recognized at the point of dispatches of finished goods to the customers.

Export benefits are accounted on an accrual basis .

Interest income is recognized on proportionate basis inclusive of tax deducted at source thereon.

(c) FIXED ASSETS :

Fixed assets are stated at cost of acquisition including installation cost. Cost of acquisition is inclusive of freight, taxes, duties , insurance, interest and other incidental expenses, net of cenvat credits, wherever applicable .

(d) INTANGIBLE ASSETS :

Intangible Assets are amortized using Straight Line Method @ 25% p.a as per AS-26 on "Intangible Assets" issued by The Institute of Chartered Accountants of India.

(e) DEPRECIATION :

Depreciation is provided on straight line method over the useful lives of assets. Depreciation for assets purchased / sold during the year is proportionately charged. Depreciation has been provide as per Schedule II of Companies Act 2013 as per useful life prescribed except assets mentioned below, useful life considered are as under

Name of assets Life of Assets

Dies, Tools & Fixtures 3 Years

Rack, Bins & Trollies 5 Years

For plant and machinery, based on internal assessment and independent technical evaluation carried out by external valuers the management believes that the useful lives as given above best represents the period over which management expects to use these assets. Hence the useful life of assets stated above is different from the useful life as prescribed under Part C of Schedule II of the Companies Act 2013.

(f) VALUATION OF INVENTORIES :

The valuation of inventories is as per Accounting Standard on " Valuation of Inventories" (AS-2) issued by the Institute of Chartered Accountants of India.

Stores & spares parts and loose tools are stated at cost.

Raw material & components, finished goods and work in progress are valued at cost or net realizable value whichever is lower.

Scrap is valued at net realizable value.

The basis for determining the cost of various inventories are as under

Raw material & Stores Tools - At weighted average cost.

Work in Progress - Material cost plus appropriate portion of labour and production

overheads.

Finished Goods & Goods in transit - At cost or net realizable value whichever is less.

Finished Goods and Scrap are inclusive of Excise Duty thereon.

(g) INVESTMENTS :

Current Investment are carried at the lower of cost and quoted/fair value, computed category wise. Long term Investment are stated at cost . Provision for diminution in the value of long term Investment, if any, is made only if such a decline is other than temporary in the opinion of the management.

(h) INSURANCE CLAIMS :

Insurance claims receivable are accounted for depending on the certainty of receipts and are being credited to the respective heads of expenses.

(j) FOREIGN CURRENCY TRANSACTIONS :

Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing on the date of transaction.

Exchange differences arising on foreign currency transaction settled during the year are recognized in the Profit & Loss Account for the year.

All the Monetary items denominated in foreign currency outstanding at the year end are translated at exchange rates prevailing on the date of balance sheet. The resulted exchange difference whether any income or expenses on account of exchange difference either on settlement or on translation are recognized in Profit & Loss Account for the year.

In case of Forward contracts, the differences between the forward rate and the exchange rate on the date of the transaction is recognized in the Profit & loss Account.

(j) BORROWING COSTS :

Borrowing costs that are attributable to the acquisition or construction of qualifying assets of new projects are capitalized as part of the cost of such assets.

A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

(k) TAXATION :

Provision for Income Tax (current tax ) is made on the basis of result of the year at the current rate of tax in accordance with Income Tax Act,1961. Deferred tax reflect the impact of current year timing difference between taxable income and timing difference of earlier years. Deferred tax is measured based on the tax rates and tax laws enacted or substantively enacted at the balance sheet date as per AS-22 on "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the profit and loss account in the year of change. Deferred tax assets arising from temporary timing difference are recognized to the extent there is a reasonable certainty that the assets can be realized in the future.

(l) IMPAIRMENT OF ASSETS :

At each Balance Sheet date, the company reviews, whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceed its recoverable amount an impairment loss is recognized in the Profit & Loss account to the extent the carrying amount exceeds the recoverable amount.

(m) RETIREMENT BENEFITS :

Liabilities in respect of retirement benefits to employees are provided for as follows:

---

Mar 31, 2015

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The Financial Statements are prepared on accrual basis of accounting under the historical cost convention, in accordance with the mandatory applicable accounting standards issued by The Institute of Chartered Accountants of India and the relevant presentational requirements of the Company Act, 2013.

(b) REVENUE RECOGNITION :

The revenue from sale of products is recognised at the point of dispatches of finished goods to the customers. Export benefits are accounted on an accrual basis.

Interest income is recognised on proportionate basis inclusive of tax deducted at source thereon.

(c) FIXED ASSETS :

Fixed assets are stated at cost of acquisition including installation cost. Cost of acquisition is inclusive of freight, taxes, duties, insurance, interest and other incidental expenses, net of cenvat credits, wherever applicable.

(d) INTANGIBLE ASSETS :

Intangible Assets are amortised using Straight Line Method @ 25% p.a as per AS-26 on "Intangible Assets" issued by The Institute of Chartered Accountants of India.

(e) DEPRECIATION :

Depreciation is provided on straight line method over the useful lives of assets. Depreciation for assets purchased / sold during the year is proportionately charged. Depreciation has been provide as per Schedule II of Companies Act 2013 as per useful life prescribed except assets mentioned below, useful life considered are as under

Dies, Tools & Fixtures 3 Years

Rack, Bins & Trollies 5 Years

For plant and machinery, based on internal assessment and independent technical evaluation carried out by external valuers the management believes that the useful lives as given above best represents the period over which management expects to use these assets. Hence the useful life of assets stated above is different from the useful life as prescribed under Part C of Schedule II of the Companies Act 2013.

(f) VALUATION OF INVENTORIES :

The valuation of inventories is as per Accounting Standard on "Valuation of Inventories" (AS-2) issued by the Institute of Chartered Accountants of India.

Stores & spares parts and loose tools are stated at cost.

Raw material & components, finished goods and work in progress are valued at cost or net realisable value whichever is lower.

Scrap is valued at net realisable value.

The basis for determining the cost of various inventories are as under

Raw material & Stores Tools - At weighted average cost.

Work in Progress - Material cost plus appropriate portion of labour and production overheads.

Finished Goods & Goods in transit - At cost or net realisable value whichever is less.

Finished Goods and Scrap are inclusive of Excise Duty thereon.

(g) INVESTMENTS :

Current Investment are carried at the lower of cost and quoted/fair value, computed category wise. Long term Investment are stated at cost. Provision for diminution in the value of long term Investment, if any, is made only if such a decline is other than temporary in the opinion of the management.

(h) INSURANCE CLAIMS :

Insurance claims receivable are accounted for depending on the certainty of receipts and are being credited to the respective heads of expenses.

(j) FOREIGN CURRENCY TRANSACTIONS :

Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing on the date of transaction.

Exchange differences arising on foreign currency transaction settled during the year are recognized in the Profit & Loss Account for the year.

All the Monetary items denominated in foreign currency outstanding at the year end are translated at exchange rates prevailing on the date of balance sheet. The resulted exchange difference whether any income or expenses on account of exchange difference either on settlement or on translation are recognised in Profit & Loss Account for the year.

In case of Forward contracts, the differences between the forward rate and the exchange rate on the date of the transaction is recognized in the Profit & loss Account.

(J) BORROWING COSTS :

Borrowing costs that are attributable to the acquisition or construction of qualifying assets of new projects 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 intended use. All other borrowing costs are charged to revenue.

(k) TAXATION :

Provision for Income Tax (current tax) is made on the basis of result of the year at the current rate of tax in accordance with Income Tax Act,1961. Deferred tax reflect the impact of current year timing difference between taxable income and timing difference of earlier years. Deferred tax is measured based on the tax rates and tax laws enacted or substantively enacted at the balance sheet date as per AS-22 on "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India.The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the profit and loss account in the year of change. Deferred tax assets arising from temporary timing difference are recognised to the extent there is a reasonable certainty that the assets can be realised in the future.

(l) IMPAIRMENT OF ASSETS :

At each Balance Sheet date, the company reviews, whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceed its recoverable amount an impairment loss is recognised in the Profit & Loss account to the extent the carrying amount exceeds the recoverable amount.

(m) RETIREMENT BENEFITS :

Liabilities in respect of retirement benefits to employees are provided for as follows:

(i) Defined Benefit Plan

Gratuity Liability is computed on the basis of premium paid to LIC of India as per actuarial valuation under Projected Unit Credit Method.

(ii) Defined Contribution Plans

Liability for superannuation fund on the basis of the premium paid to LIC of India in respect of employees covered under Superannuation Fund Policy. Provident fund & ESI on the basis of actual liability accrued and paid to authority.

(iii) Provision for due earned leaves are determined using Projected Unit Cost method, with actuarial valuation being carried out at Balance Sheet date. Acturial gain / loss arising after such valuation are charged to profit & loss account in the year in which earned leaves are settled.

---

Mar 31, 2014

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The Financial Statements are prepared on accrual basis of accounting under the historical cost convention, in accordance with the mandatory applicable accounting standards issued by The Institute of Chartered Accountants of India and the relevant presentational requirements of the Company Act, 1956.

(b) REVENUE RECOGNITION :

The revenue from sale of products is recognised at the point of dispatches of finished goods to the customers. Export benefits are accounted on an accrual basis.

Interest income is recognised on proportionate basis inclusive of tax deducted at source thereon.

(c) FIXED ASSETS :

Fixed assets are stated at cost of acquisition including installation cost. Cost of Acquisition is inclusive of freight, taxes, duties, insurance, interest and other incidental expenses, net of CENVAT credits, wherever applicable.

(d) INTANGIBLE ASSETS :

Intangible Assets are amortised using Straight Line Method @ 25% p.a as per AS-26 on "Intangible Assets" issued by The Institute of Chartered Accountants of India.

(e) DEPRECIATION :

Depreciation on all the fixed assets is provided on pro rata basis by using the straight-line method at rates on double shift basis wherever applicable, in the manner specified in Schedule XIV of the Companies Act, 1956 except in the case of the following assets where depreciation rate is provided at rates indicated against each asset:

(f) VALUATION OF INVENTORIES :

The valuation of Stock is as per Accounting Standard on " Valuation of Inventories" (AS-2) issued by the Institute of Chartered Accountants of India.

Stores & spares parts and loose tools are stated at cost.

Raw material & components, finished goods and work in progress are valued at cost or net realisable value whichever is lower.

Scrap is valued at net realisable value.

The basis for determining the cost of various inventories are as under

Raw material & Stores Tools - At yearly weighted average cost.

Work in Progress - Material cost plus appropriate portion of labour and production overheads.

Finished Goods & Goods in transit - At cost or net realisable value whichever is less.

Finished Goods and Scrap are inclusive of Excise Duty thereon.

(g) INVESTMENTS :

Current Investment are carried at the lower of cost and quoted/fair value, computed category wise. Long term Investment are stated at cost. Provision for diminution in the value of long term Investment, if any, is made only if such a decline is other than temporary in the opinion of management.

(h) INSURANCE CLAIMS :

Insurance claims receivable are accounted for depending on the certainty of receipts and are being credited to the respective heads of expenses.

(j) FOREIGN CURRENCY TRANSACTIONS :

Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing on the date of transaction.

Exchange differences arising on foreign currency transaction settled during the year are recognized in the Profit & Loss Account for the year.

All the Monetary items denominated in foreign currency outstanding at the year end are translated at exchange rates prevailing on the date of balance sheet. The resulted exchange difference whether any income or expenses on account of exchange difference either on settlement or on translation are recognised in Profit & Loss Account for the year.

In case of Forward contracts, the differences between the forward rate and the exchange rate on the date of the transaction is recognized in the Profit & loss Account.

(J) BORROWING COSTS :

Borrowing costs that are attributable to the acquisition or construction of qualifying assets of new projects 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 intended use. All other borrowing costs are charged to revenue.

(k) TAXATION :

Provision for Income Tax (current tax) is made on the basis of result of the year at the current rate of tax in accordance with Income Tax Act,1961. Deferred tax reflect the impact of current year timing difference between taxable income and timing difference of earlier years. Deferred tax is measured based on the tax rates and tax laws enacted or substantively enacted at the balance sheet date as per AS-22 on "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India.The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the profit and loss account in the year of change. Deferred tax assets arising from temporary timing difference are recognised to the extent there is a reasonable certainty that the assets can be realised in the future.

(l) IMPAIRMENT OF ASSETS :

At each Balance Sheet date, the company reviews, whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceed its recoverable amount an impairment loss is recognised in the Profit & Loss account to the extent the carrying amount exceeds the recoverable amount.

(m) RETIREMENT BENEFITS :

Liabilities in respect of retirement benefits to employees are provided for as follows:

(i) Defined Benefit Plan

Gratuity Liability is computed on the basis of premium paid to LIC of India as per actuarial valuation under Projected Unit Credit Method.

(ii) Defined Contribution Plans

Liability for superannuation fund on the basis of the premium paid to LIC of India in respect of employees covered under Superannuation Fund Policy. Provident fund & ESI on the basis of actual liability accrued and paid to authority.

(iii) Provision for due earned leaves are determined using Projected Unit Cost method, with actuarial valuation being carried out at Balance Sheet date. Actual gain / loss arising after such valuation are charged to profit & loss account in the year in which earned leaves are settled.

---

Mar 31, 2013

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The Financial Statements are prepared on accrual basis of accounting under the historical cost convention, in accordance with the mandatory applicable accounting standards issued by The Institute of Chartered Accountants of India and the relevant presentational requirements of the Company Act, 1956.

(b) REVENUE RECOGNITION :

The revenue from sale of products is recognised at the point of dispatches of finished goods to the customers.

Export benefits are accounted on an accrual basis.

Interest income is recognised on proportionate basis inclusive of tax deducted at source thereon.

(c) FIXED ASSETS :

Fixed assets are stated at cost of acquisition including installation cost. Cost of Acquisition is inclusive of freight, taxes, duties , insurance, interest and other incidental expenses, net of cenvat credits, wherever applicable.

(d) INTANGIBLE ASSETS :

Intangible Assets are amortised using Straight Line Method @ 25% p.a as per AS-26 on "Intangible Assets" issued by The Institute of Chartered Accountants of India.

(e) DEPRECIATION :

Depreciation on all the fixed assets is provided on pro rata basis by using the straight-line method at rates on double shift basis wherever applicable, in the manner specified in Schedule XIV of the Companies Act, 1956 except in the case of the following assets where depreciation rate is provided at rates indicated against each asset:

(f) VALUATION OF INVENTORIES :

The valuation of Stock is as per Accounting Standard on "Valuation of Inventories" (AS-2) issued by the Institute of

Chartered Accountants of India.

Stores & spares parts and loose tools are stated at cost.

Raw material & components, finished goods and work in progress are valued at cost or net realisable value whichever is lower.

Scrap is valued at net realisable value.

The basis for determining the cost of various inventories are as under

Raw material & Stores Tools - At yearly weighted average cost.

Work in Progress - Material cost plus appropriate portion of labour and production overheads.

Finished Goods & Goods in transit - At cost or net realisable value whichever is less.

Finished Goods and Scrap are inclusive of Excise Duty thereon.

(g) INVESTMENTS :

Current Investment are carried at the lower of cost and quoted/fair value, computed category wise. Long term Investment are stated at cost Provision for diminution in the value of long term Investment, if any, is made only if such a decline is other than temporary in the opinion of management.

(h) INSURANCE CLAIMS :

Insurance claims receivable are accounted for depending on the certainty of receipts and are being credited to the respective heads of expenses.

(i) FOREIGN CURRENCY TRANSACTIONS :

Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing on the date of transaction.

Exchange differences arising on foreign currency transaction settled during the year are recognized in the Profit & Loss Account for the year.

All the Monetary items denominated in foreign currency outstanding at the year end are translated at exchange rates prevailing on the date of balance sheet. The resulted exchange difference whether any income or expenses on account of exchange difference either on settlement or on translation are recognised in Profit & Loss Account for the year.

In case of Forward contracts, the differences between the forward rate and the exchange rate on the date of the transaction is recognized in the Profit & loss Account.

(j) BORROWING COSTS :

Borrowing costs that are attributable to the acquisition or construction of qualifying assets of new projects 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 intended use. All other borrowing costs are charged to revenue.

(k) TAXATION :

Provision for Income Tax (current tax) is made on the basis of result of the year at the current rate of tax in accordance with Income Tax Act,1961. Deferred tax reflect the impact of current year timing difference between taxable income and timing difference of earlier years. Deferred tax is measured based on the tax rates and tax laws enacted or substantively enacted at the balance sheet date as per AS-22 on "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India.The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the profit and loss account in the year of change.Deferred tax assets arising from temporary timing difference are recognised to the extent there is a reasonable certainty that the assets can be realised in the future.

(l) IMPAIRMENT OF ASSETS :

At each Balance Sheet date, the company reviews, whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceed its recoverable amount an impairment loss is recoginised in the Profit & Loss account to the extent the carrying amount exceeds the recoverable amount.

(m) RETIREMENT BENEFITS :

Liabilities in respect of retirement benefits to employees are provided for as follows:

(i) Defined Benefit Plan

Gratuity Liability is computed on the basis of premium paid to LIC of India as per actuarial valuation under Projected Unit Credit Method.

(ii) Defined Contribution Plans

Liability for superannuation fund on the basis of the premium paid to LIC of India in respect of employees covered under Superannuation Fund Policy. Provident fund & ESI on the basis of actual liability accrued and paid to authority.

(iii) Provision for due earned leaves are determined using Projected Unit Cost method, with actuarial valuation being carried out at Balance Sheet date. Actual gain/loss arising after such valuation are charged to profit & loss account in the year in which earned leaves are settled.

---

Mar 31, 2012

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The Financial Statements are prepared on accrual basis of accounting under the historical cost convention , in accordance with the mandatory applicable accounting standards issued by The Institute of Chartered Accountants of India and the relevant presentational requirements of the Company Act, 1956.

(b) REVENUE RECOGNITION :

The revenue from sale of products is recognised at the point of dispatches of finished goods to the customers. Export benefits are accounted on an accrual basis.

Interest income is recognised on proportionate basis inclusive of tax deducted at source thereon.

(c) FIXED ASSETS :

Fixed assets are stated at cost of acquisition including installation cost. Cost of Acquisition is inclusive of freight, taxes, duties , insurance, interest and other incidental expenses, net of cenvat credits, wherever applicable .

(d) INTANGIBLE ASSETS :

Intangible Assets are amortised using Straight Line Method @ 25% p.a as per AS-26 on "Intangible Assets" issued by The Institute of Chartered Accountants of India.

(e) DEPRECIATION :

Depreciation on all the fixed assets is provided on pro rata basis by using the straight-line method at rates on double shift basis wherever applicable, in the manner specified in Schedule XIV of the Companies Act, 1956 except in the case of the following assets where depreciation rate is provided at rates indicated against each asset:

(f) VALUATION OF INVENTORIES :

The valuation of Stock is as per Accounting Standard on "Valuation of Inventories" (AS-2) issued by the Institute of Chartered Accountants of India.

Stores & spares parts and loose tools are stated at cost.

Raw material & components, finished goods and work in progress are valued at cost or net realisable value whichever is lower.

Scrap is valued at net realisable value.

The basis for determining the cost of various inventories are as under

Raw material & Stores Tools At yearly weighted average cost.

Work in Progress Material cost plus appropriate portion of labour and production overheads.

Finished Goods & Goods in transit At cost or net realisable value whichever is less.

Finished Goods and Scrap are inclusive of Excise Duty thereon.

(G) INVESTMENTS :

Current Investment are carried at the lower of cost and quoted/fair value, computed category wise. Long term Investment are stated at cost Provision for diminution in the value of long term Investment, if any, is made only if such a decline is other than temporary in the opinion of management.

(h) INSURANCE CLAIMS :

Insurance claims receivable are accounted for depending on the certainty of receipts and are being credited to the respective heads of expenses.

(i) FOREIGN CURRENCY TRANSACTIONS :

Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing on the date of transaction.

Exchange differences arising on foreign currency transaction settled during the year are recognized in the Profit & Loss Account for the year.

All the Monetary items denominated in foreign currency outstanding at the year end are translated at exchange rates prevailing on the date of balance sheet. The resulted exchange difference whether any income or expenses on account of exchange difference either on settlement or on translation are recognised in Profit & Loss Account for the year.

In case of Forward contracts, the differences between the forward rate and the exchange rate on the date of the transaction is recognized in the Profit & loss Account.

() BORROWING COSTS :

Borrowing costs that are attributable to the acquisition or construction of qualifying assets of new projects 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 intended use. All other borrowing costs are charged to revenue.

(k) TAXATION :

Provision for Income Tax (current tax ) is made on the basis of result of the year at the current rate of tax in accordance with Income Tax Act,1961. Deferred tax reflect the impact of current year timing difference between taxable income and timing difference of earlier years. Deferred tax is measured based on the tax rates and tax laws enacted or substantively enacted at the balance sheet date as per AS-22 on "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India.The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the profit and loss account in the year of change.Deferred tax assets arising from temporary timing difference are recognised to the extent there is a reasonable certainty that the assets can be realised in the future.

(l) IMPAIRMENT OF ASSETS :

At each Balance Sheet date, the company reviews, whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceed its recoverable amount an impairment loss is recoginised in the Profit & Loss account to the extent the carrying amount exceeds the recoverable amount.

(m) RETIREMENT BENEFITS :

Liabilities in respect of retirement benefits to employees are provided for as follows:

(i) Defined Benefit Plan

Gratuity Liability is computed on the basis of premium paid to LIC of India as per actuarial valuation under Projected Unit Credit Method.

(ii) Defined Contribution Plans

Liability for superannuation fund on the basis of the premium paid to LIC of India in respect of employees covered under Superannuation Fund Policy. Provident fund & ESI on the basis of actual liability accrued and paid to authority.

(iii) Provision for due earned leaves are determined using Projected Unit Cost method, with actuarial valuation being carried out at Balance Sheet date. Actual gain / loss arising after such valuation are charged to profit & loss account in the year in which earned leaves are settled.

---

Mar 31, 2010

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The Financial Statements are prepared on accrual basis of accounting under the historical cost convention, in accordance with the mandatory applicable accounting standards issued by The Institute of Chartered Accountants of India and the relevant presentational requirements of the Company Act, 1956.

(b) REVENUE RECOGNITION : The revenue from sale of products is recognised at the point of dispatches of finished goods to the customers. Export benefits are accounted on an accrual basis. Interest income is recognised on proportionate basis inclusive of tax deducted at source thereon.

(c) FIXED ASSETS :

Fixed assets are stated at cost of acquisition including installation cost. Cost of Acquisition is inclusive of freight, taxes, duties, insurance, interest and other incidental expenses, net of cenvat credits, wherever applicable.

(d) INTANGIBLE ASSETS :

Intangible Assets are amortised using Straight Line Method @ 25% p.a as per AS-26 on "Intangible Assets" issued by The Institute of Chartered Accountants of India.

(f) VALUATION OF INVENTORIES :

The valuation of Stock is as per Accounting Standard on " Valuation of Inventories" (AS-2) issued by the Institute of Chartered Accountants of India.

Stores & spares parts and loose tools are stated at cost.

Raw material & components, finished goods and work in progress are valued at cost or net realisable value whichever is lower.

Scrap is valued at net realisable value.

The basis for determining the cost of various inventories are as under:

Raw material & Stores Tools - At yearly weighted average cost.

Work in Progress - Material cost plus appropriate portion of labour and production overheads.

Finished Goods & Goods in transit - At cost or net realisable value whichever is less.

Finished Goods are inclusive of Excise Duty thereon.

(g) INVESTMENTS :

Current Investment are carried at the lower of cost and quoted/fair value,computed category wise. Long term Investment are stated at cost . Provision for diminution in the value of long term Investment, if any, is made only if such a decline is other than temporary in the opinion of management.

(h) INSURANCE CLAIMS :

Insurance claims receivable are accounted for depending on the certainty of receipts and are being credited to the respective heads of expenses .

(j) FOREIGN CURRENCY TRANSACTIONS :

Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing on the date of transaction.

Exchange differences arising on foreign currency transaction settled during the year are recognized in the Profit & Loss Account for the year.

All the Monetary items denominated in foreign currency outstanding at the year end are translated at exchange rates prevailing on the date of balance sheet. The resulted exchange difference whether any income or expenses on account of exchange difference either on settlement or on translation are recognised in Profit & Loss Account for the year.

In case of Forward contracts, the differences between the forward rate and the exchange rate on the date of the transaction is recognized in the Profit & loss Account.

(j) BORROWING COSTS :

Borrowing costs that are attributable to the acquisition or construction of qualifying assets of new projects 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 intended use. All other borrowing costs are charged to revenue.

(k) TAXATION :

Provision for Income Tax (current tax ) is made on the basis of result of the year at the current rate of tax in accordance with Income Tax Act,1961. Deferred tax reflect the impact of current year timing difference between taxable income and timing difference of earlier years. Deferred tax is measured based on the tax rates and tax laws enacted or substantively enacted at the balance sheet date as per AS-22 on "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India.The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the profit and loss account in the year of change.Deferred tax assets arising from temporary timing difference are recognised to the extent there is a reasonable certainty that the assets can be realised in the future.

(l) IMPAIRMENT OF ASSETS :

At each Balance Sheet date, the company reviews, whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceed its recoverable amount an impairment loss is recoginised in the Profit & Loss account to the extent the carrying amount exceeds the recoverable amount.

(m) RETIREMENT BENEFITS :

Liabilities in respect of retirement benefits to employees are provided for as follows:

(i) Defined Benefit Plan

Gratuity Liability is computed on the basis of premium paid to LIC of India as per actuarial valuation under Projected Unit Credit Method.

(ii) Defined Contribution Plans

Liability for superannuation fund on the basis of the premium paid to LIC of India in respect of employees covered under Superannuation Fund Policy. Provident fund & ESI on the basis of actual liability accrued and paid to authority.

(iii) Provision for due earned leaves are determined using Projected Unit Cost method, with actuarial valuation being carried out at Balance Sheet date. Actual gain / loss arising after such valuation are charged to profit & loss account in the year in which earned leaves are settled.