Accounting Policies of Oriental Trimex Ltd. Company

Mar 31, 2025

2. SIGNIFICANT ACCOUNTING POLICIES

Accounting Policies have been consistently applied except where a newly issued
accounting standard is initially adopted or a revision to an existing accounting standard
required a change in the accounting policy hitherto in use.

2.2 Basis of preparation of financial statements

The standalone financial statements of Oriental Trimex Limited (“the Company”) comply
in allmaterial aspects with Indian Accounting Standards (“Ind AS”) as prescribed under
section 133 of the Companies Act, 2013 (“the Act”), as notified under the Companies
(Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting
Standards) Amendment Rules, 2016, as amended and other accounting principles
generally accepted in India.

The financial statements have been prepared under the historical cost convention on
accrual basis and the following items, which are measured on following basis on each
reporting date:

• Certain financial assets and liabilities that is measured at fair value.

• Defined benefit liabilities/(assets): present value of defined benefit obligation
less fair value of plan assets.

Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date,
regardless of whether that price is directly observable or estimated using another
valuation technique. In estimating the fair value of an asset or a liability, the Company
takes into account the characteristics of the asset or liability, if market participants
would take those characteristics into account when pricing the asset or liability at the
measurement date.

2.3 Functional and presentation currency

These financial statements are presented in Indian National Rupee (‘INR’), which is
the Company’s functional currency. All amounts have been rounded to the nearest

lakhs, unless otherwise indicated.

2.3 Business combinations and goodwill

Business combinations are accounted for using the acquisition method. At the acquisition
date, identifiable assets acquired and liabilities assumed are measured at fair value.
For this purpose, the liabilities assumed include contingent liabilities representing present
obligation and they are measured at their acquisition date fair values irrespective of
the fact that outflow of resources embodying economic benefits is not probable. The
consideration transferred is measured at fair value at acquisition date and includes the
fair value of any contingent consideration However, deferred tax asset or liability and
any liability or asset relating to employee benefit arrangements arising from a business
combination are measured and recognised in accordance with the requirements of Ind
AS 12, ‘Income Taxes’ and Ind AS 19, ‘Employee benefits respectively. Where the
consideration transferred exceeds the fair value of the net identifiable assets acquired
and liabilities assumed, the excess is recorded as goodwill. Alternatively, in case of a
bargain purchase wherein the consideration transferred is lower than the fair value of
the net identifiable assets acquired and liabilities assumed, the difference is recorded
as a gain in other comprehensive income and accumulated in equity as capital reserve.
The costs of acquisition excluding those relating to issue of equity or debt securities
are charged to the Statement of Profit & Loss in the period in which they are incurred.

2.5 Classification of Assets and Liabilities as Current and Non-Current

The Company presents assets and liabilities in the balance sheet based on current/
non-current classification. An asset/liability is treated as current when it is:

• Expected to be realised/settled or intended to be sold or consumed in normal
operating cycle;

• Held primarily for the purpose of trading and manufacturing;

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

• Cash and Cash equivalents unless restricted from being exchanged or used to
settle a liability for at least twelve months after the reporting period or there is no
unconditional right to defer the settlement of the liability for at least twelve months
All other assets/liabilities are classified as non-current.

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

The operating cycle is the time between the acquisition of the assets for processing
and theirrealisation in cash and cash equivalents.

2.6 Property, Plant and Equipment (Fixed Assets)

Recognition and Measurement

Items of property, plant and equipment are stated at cost less accumulated depreciation
andaccumulated impairment loss , if any. The cost of assets comprises of purchase
price and directly attributable cost of bringing the assets to working condition for its
intended use including borrowing cost and incidental expenditure during construction
incurred upto the date when the assets are ready to use. Capital work in progress
includes cost of assets at sites, construction expenditure and interest on the funds
deployed less any impairment loss, if any. If significant parts of an item of property,
plant and equipment have different useful lives, then they are accounted for as a separate
item (major components) of property, plant and equipment.

Subsequent Measurement

Subsequent expenditure is capitalised only if it is probable that there is an increase in
the future economic benefits associated with the expenditure will flow to the Company.
Depreciation

Depreciation is calculated on Straight Line Method using the rates arrived at on the

basis of estimated useful lives given in Schedule II of the Companies Act, 2013 except

for the following which has been determined on the basis of technical evaluation.

Particulars Useful Life

Plant and Machinery 15 Years

Vehicles- Car & Truck 8 Years

Furniture & Fixture 10 Years

Office equipment 5 Years

Computers 3 Years

Depreciation on additions to or on disposal of assets is calculated on pro-rata basis.
LeaseholdImprovements are being amortised over the period of 5 to 10 years.
Depreciation methods, useful lives and residual values are reviewed in each financial
year end and changes, if any, are accounted for prospectively.

De-recognition

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 net disposal proceeds and the
carrying amount of the asset and is recognised in the statement of profit and loss.

Leases

Operating Leases:

The determination of whether an arrangement is (or contains) a lease is based on the
substance of the arrangement at the inception of the lease. The arrangement is (or
contains) a lease if fulfilment of the arrangement is dependent on the use of a specific

asset or assets and the arrangement conveys a right to use the asset or assets, even
if that right is not explicitly specified in an arrangement.

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards
of ownership of an asset are classified as operating leases. Rental income from operating
leases is recognised on a straight-line basis over the term of the relevant lease. Initial
direct costs incurred in negotiating and arranging an operating lease are added to the
carrying amount of the leased asset and recognised over the lease term on the same
basis as rental income. Contingent rents are recognised as revenue in the period in
which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards
of ownership are transferred from the Company to the lessee. Amounts due from lessees
under finance leases are recorded as receivables at the Company’s net investment in
the leases. Finance lease income is allocated to accounting periods so as to reflect a
constant periodic rate of return on the net investment outstanding in respect of the
lease.

Company as a lessee

The Company assesses whether a contract is or contains a lease, at inception of the
contract. The Company recognises a right-of-use asset and a corresponding lease
liability with respect to all lease arrangements in which it is the lessee, except for short¬
term leases (defined as leases with a lease term of 12 months or less) and leases of
low value assets. For these leases, the Company recognises the lease payments as an
operating expense on a straight-line basis over the lease term, unless another systematic
basis is more representative of the time pattern in which economic benefits from the
leased assets are consumed. Contingent and variable rentals are recognised as expense
in the periods in which they are incurred.

Lease Liability

The lease payments that are not paid at the commencement date, are discounted
using the interest rate implicit in the lease. If that rate cannot be readily determined,
which is generally the case for leases in theCompany, the lessee’s incremental borrowing
rate is used, being the rate that the individual lessee would have to pay to borrow the
funds necessary to obtain an asset of similar value as that of right-of-use asset in a
similar economic environment with similar terms, security and conditions.

Lease payments included in the measurement of the lease liability comprise:

• Fixed lease payments (including in-substance fixed payments) payable during
the lease term and under reasonably certain extension options, less any lease
incentives;

• Variable lease payments that depend on an index or rate, initially measured
using the index or rate at the commencement date;

• The amount expected to be payable by the lessee under residual value
guarantees;

• The exercise price of purchase options, if the lessee is reasonably certain to
exercise the options; and

• Payments of penalties for terminating the lease, if the lease term reflects the
exercise of an option to terminate the lease.

The lease liability is presented as a separate line in the Balance Sheet. The lease
liability is subsequently measured by increasing the carrying amount to reflect interest
on the lease liability (using the effective interest method) and by reducing the carrying
amount to reflect the lease payments made.

The Company re-measures the lease liability (and makes a corresponding adjustment
to the related right-of-use asset) whenever:

• The lease term has changed or there is a change in the assessment of exercise
of a purchase option, in which case the lease liability is re-measured by
discounting the revised lease payments using a revised discount rate

• A lease contract is modified and the lease modification is not accounted for as a
separate lease, in which case the lease liability is re-measured by discounting
the revised lease payments using a revised discount rate.

Right of Use (ROU) Assets

The ROU assets comprise the initial measurement of the corresponding lease liability,
lease payments made at or before the commencement day and any initial direct costs.
They are subsequently measured at cost less accumulated depreciation and impairment
losses. Whenever the company incurs an obligation for costs to dismantle and remove a
leased asset, restore the site on which it is located or restore the underlying asset to the
condition required by the terms and conditions of the lease, a provision is recognised and
measured under Ind AS 37- Provisions, Contingent Liabilities and Contingent Assets. The
costs are included in the related right-of-use asset.

ROU assets are depreciated over the shorter period of the lease term or useful life of
the underlying asset. If the company is reasonably certain to exercise a purchase option,
the right-of-use asset is depreciated over the underlying asset’s useful life. The
depreciation starts at the commencement date of the lease.

The ROU assets are presented as a separate line in the Balance Sheet and details of
assets are given ROU note under Notes forming part of the Financial Statement. The
Company applies Ind AS 36- Impairment of Assets to determine whether a right-of-use
asset is impaired and accounts for any identified impairment loss as per its accounting
policy on ‘property, plant and equipment’. As a practical expedient, Ind AS 116 permits

lessee not to separate non-lease components when bifurcation of the payments is not
available between the two components, and instead account for any lease and
associated non-lease components as a single arrangement. The Company has used
this practical expedient.

2.7 Intangible assets

Intangible Assets (Other than Goodwill) acquired separately are stated at cost less
accumulated amortization and impairment loss, if any. Intangible assets are amortized
on straight line method basis over the estimated useful life. Estimated useful life of the
software is considered as 5 years Amortisation methods, useful lives and residual values
are reviewed at each financial year end and changes, if any, are accounted for
prospectively.

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 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 the Statement of Profit & Loss when
the asset is derecognised.

2.8 Non-current assets held for sale

Non-current assets are classified as held-for sale if it is highly probable that they will
be recovered primarily through sale rather than through continuing use. Such assets
are generally measured at the lower of their carrying amount and fair value less costs
to sell. An impairment loss is recognised for any initial or subsequent write-down of the
asset to fair value less costs to sell. A gain is recognised for any subsequent increases
in fair value less costs to sell of an asset, but not in excess of any cumulative impairment
loss previously recognised. A gain or loss not previously recognised by the date of the
sale of the non-current asset is recognised at the date of de-recognition. Once classified
as held-for-sale, intangible assets and property, plant and equipment are no longer
amortised or depreciation.

2.9 Impairment of non-financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial
assets (other than inventories and deferred tax assets) to determine whether there is
any indication on impairment. If any such indication exists, then the recoverable amount
of assets is estimated. Impairment loss in respect of assets other than goodwill is
reversed only to the extent that the assets carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised in prior years. A reversal of impairment loss is
recognised immediately in the Statement of Profit & Loss.

2.10 Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction of qualifying assets
are capitalised as part of the cost of such assets upto the assets are substantially
ready for their intended use.

The loan origination costs directly attributable to the acquisition of borrowings (e.g.
loan processing fee, upfront fee) are amortised on the basis of the Effective Interest
Rate (EIR) method over the term of the loan.

All other borrowing costs are recognised in the Statement of Profit & Loss in the period
in which they are incurred.

2.11 Foreign currency transactions

(i) Foreign currency transactions are recorded at the exchange rate prevailing on
the date of the transaction.

(ii) Gains/losses arising out of fluctuation in the exchange rates are recognized in
the period in which they arise.

(iii) Monetary assets and liabilities denominated in foreign currency are translated at
the relevant rates of exchange prevailing at the year end and the resultant gain
or loss is recognized in the Statement of Profit and Loss, except in the case of
gain where significant uncertainties exist in relation to the actual realisation.

(iv) Premium / discount on forward exchange contracts (including options), which
are not intended for trading or speculation purposes, are amortized over the
period of the contract. There are no outstanding forward exchange contracts
(including options) as at the Balance Sheet date.

(v) Any profit or loss arising on cancellation or settlement of forward exchange
contracts (including options) is recognized as income or expense of the year.

2.12 Revenue Recognition :

The Company recognises revenue when it satisfies a performance obligation in
accordance with the provisions of contract with the customer. Sales of products are
recognized when the products are shipped and are stated inclusive of excise duty but
net of sales tax, trade discounts and sales returns.

Revenue is recognized when no significant uncertainties exist in relation to the amount
of eventual receipt. The Company generally follows mercantile system of accounting
and all income and expenditure items having a material bearing on the financial
statements are recognized on accrual basis. Interest incomes are recognised on an
accrual basis using the effective interest method. Dividends are recognised at the time
the right to receive payment is established.

2.13 Inventories

Inventories are valued at lower of cost and net realisable value except waste/scrap
which is valued at net realisable value. Cost of manufactured finished goods and stock
in process is determined by taking cost of purchases, material consumed, labour and

related overheads. Cost of raw materials, traded goods and stores & spare parts are
computed on weighted average basis. Net realisable value is the estimated selling
price in the ordinary course of business, less estimated costs of completion and to
make the sale.

2.14 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand and short-term deposits
with an original maturity of three months or less. For the purposes of the Cash Flow
Statement, cash and cash equivalents is as defined above, net of outstanding bank overdrafts.
In the balance sheet, bank overdrafts are shown within borrowings in current liabilities.

---

Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES

Accounting Policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard required a change in the accounting policy hitherto in use.

2.2 Basis of preparation of financial statements

The standalone financial statements of Oriental Trimex Limited (“the Company”) comply in allmaterial aspects with Indian Accounting Standards (“Ind AS”) as prescribed under section 133 of the Companies Act, 2013 (“the Act”), as notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016, as amended and other accounting principles generally accepted in India.

The financial statements have been prepared under the historical cost convention on accrual basis and the following items, which are measured on following basis on each reporting date:

• Certain financial assets and liabilities that is measured at fair value.

• Defined benefit liabilities/(assets): present value of defined benefit obligation less fair value of plan assets.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability, if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.

2.3 Functional and presentation currency

These financial statements are presented in Indian National Rupee (‘INR’), which is the Company’s functional currency. All amounts have been rounded to the nearest lakhs, unless otherwise indicated.

2.3 Business combinations and goodwill

Business combinations are accounted for using the acquisition method. At the acquisition date, identifiable assets acquired and liabilities assumed are measured at fair value. For this purpose, the liabilities assumed include contingent liabilities representing present obligation and they are measured at their acquisition date fair values irrespective of the fact that outflow of resources embodying economic benefits is not probable. The consideration transferred is measured at fair value at acquisition date and includes the fair value of any contingent consideration However, deferred tax asset or liability and any liability or asset relating to employee benefit arrangements arising from a business combination are measured and recognised in accordance with the requirements of Ind AS 12, ‘Income Taxes’ and Ind AS 19, ‘Employee benefits respectively. Where the consideration transferred exceeds the fair value of the net identifiable assets acquired and liabilities assumed, the excess is recorded as goodwill. Alternatively, in case of a bargain purchase wherein the consideration transferred is lower than the fair value of the net identifiable assets acquired and liabilities assumed, the difference is recorded as a gain in other comprehensive income and accumulated in equity as capital reserve. The costs of acquisition excluding those relating to issue of equity or debt securities are charged to the Statement of Profit & Loss in the period in which they are incurred.

2.5 Classification of Assets and Liabilities as Current and Non-Current

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset/liability is treated as current when it is:

• Expected to be realised/settled or intended to be sold or consumed in normal operating cycle;

• Held primarily for the purpose of trading and manufecturing;

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

• Cash and Cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period or there is no unconditional right to defer the settlement of the liability for at least twelve months All other assets/liabilities are classified as non-current.

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

The operating cycle is the time between the acquisition of the assets for processing and theirrealisation in cash and cash equivalents.

2.6 Property, Plant and Equipment (Fixed Assets)

Recognition and Measurement

Items of property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment loss , if any. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost and incidental expenditure during construction incurred upto the date when the assets are ready to use. Capital work in progress includes cost of assets at sites, construction expenditure and interest on the funds deployed less any impairment loss, if any. If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as a separate item (major components) of property, plant and equipment.

Subsequent Measurement

Subsequent expenditure is capitalised only if it is probable that there is an increase in the future economic benefits associated with the expenditure will flow to the Company.

Depreciation

Depreciation is calculated on Straight Line Method using the rates arrived at on the basis of estimated useful lives given in Schedule II of the Companies Act, 2013 except for the following which has been determined on the basis of technical evaluation.

Particulars Useful Life

Plant and Machinery 15 Years

Vehicles- Car & T ruck 8 Years

Furniture & Fixture 10 Years

Office equipment 5 Years

Computers 3 Years

Depreciation on additions to or on disposal of assets is calculated on prorata basis. LeaseholdImprovements are being amortised over the period of 5 to 10 years.

Depreciation methods, useful lives and residual values are reviewed in each financial year end and changes, if any, are accounted for prospectively.

De-recognition

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 net disposal proceeds and the carrying amount of the asset and is recognised in the statement of profit and loss.

Leases

Operating Leases:

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is (or contains) a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership are transferred from the Company to the lessee.

Amounts due from lessees under finance leases are recorded as receivables at the Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

Company as a lessee

The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the lease term, unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. Contingent and variable rentals are recognised as expense in the periods in which they are incurred.

Lease Liability

The lease payments that are not paid at the commencement date, are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the

Company, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value as that of right-of-use asset in a similar economic environment with similar terms, security and conditions.

Lease payments included in the measurement of the lease liability comprise:

• Fixed lease payments (including in-substance fixed payments) payable during the lease term and under reasonably certain extension options, less any lease incentives;

• Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

• The amount expected to be payable by the lessee under residual value guarantees;

• The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and

• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The lease liability is presented as a separate line in the Balance Sheet. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The Company re-measures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

• The lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate

• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is re-measured by discounting the revised lease payments using a revised discount rate.

Right of Use (ROU) Assets

The ROU assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. Whenever the company incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under Ind AS 37- Provisions, Contingent Liabilities and Contingent Assets. The costs are included in the related right-of-use asset.

ROU assets are depreciated over the shorter period of the lease term or useful life of the underlying asset. If the company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. The depreciation starts at the commencement date of the lease.

The ROU assets are presented as a separate line in the Balance Sheet and details of assets are given ROU note under Notes forming part of the Financial Statement. The Company applies Ind AS 36- Impairment of Assets to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as per its accounting policy on ‘property, plant and equipment’. As a practical expedient, Ind AS 116 permits lessee not to separate non-lease components when bifurcation of the payments is not available between the two components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has used this practical expedient.

i.7 Intangible assets

Intangible Assets (Other than Goodwill) acquired separately are stated at cost less accumulated amortization and impairment loss, if any. Intangible assets are amortized on straight line method basis over the estimated useful life.

Estimated useful life of the software is considered as 5 years Amortisation methods, useful lives and residual values are reviewed at each financial year end and changes, if any, are accounted for prospectively.

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 the Statement of Profit & Loss when the asset is derecognised.

2.8 Non-current assets held for sale

Non-current assets are classified as held-for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. Such assets are generally measured at the lower of their carrying amount and fair value less costs to sell. An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset is recognised at the date of de-recognition. Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or depreciation.

2.9 Impairment of non-financial assets

At each reporting date, the Company reviews the carrying amounts of its nonfinancial assets (other than inventories and deferred tax assets) to determine whether there is any indication on impairment. If any such indication exists, then the recoverable amount of assets is estimated. Impairment loss in respect of assets other than goodwill is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years. A reversal of impairment loss is recognised immediately in the Statement of Profit & Loss.

2.10 Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction of qualifying assets are capitalised as part of the cost of such assets upto the assets are substantially ready for their intended use.

The loan origination costs directly attributable to the acquisition of borrowings (e.g. loan processing fee, upfront fee) are amortised on the basis of the Effective Interest Rate (EIR) method over the term of the loan.

All other borrowing costs are recognised in the Statement of Profit & Loss in the period in which they are incurred.

2.11 Foreign currency transactions

(i) Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction.

(ii) Gains/losses arising out of fluctuation in the exchange rates are recognized in the period in which they arise.

(iii) Monetary assets and liabilities denominated in foreign currency are translated at the relevant rates of exchange prevailing at the year end and the resultant gain or loss is recognized in the Statement of Profit and Loss, except in the case of gain where significant uncertainties exist in relation to the actual realisation.

(iv) Premium / discount on forward exchange contracts (including options), which are not intended for trading or speculation purposes, are amortized over the period of the contract. There are no outstanding forward exchange contracts (including options) as at the Balance Sheet date.

(v) Any profit or loss arising on cancellation or settlement of forward exchange contracts (including options) is recognized as income or expense of the year.

2.12 Revenue Recognition :

The Company recognises revenue when it satisfies a performance obligation in accordance with the provisions of contract with the customer. Sales of products are recognized when the products are shipped and are stated inclusive of excise duty but net of sales tax, trade discounts and sales returns.

Revenue is recognized when no significant uncertainties exist in relation to the amount of eventual receipt. The Company generally follows mercantile system of accounting and all income and expenditure items having a material bearing on the financial statements are recognized on accrual basis. Interest incomes are recognised on an accrual basis using the effective interest method. Dividends are recognised at the time the right to receive payment is established.

2.13 Inventories

Inventories are valued at lower of cost and net realisable value except waste/scrap which is valued at net realisable value. Cost of manufactured finished goods and stock in process is determined by taking cost of purchases, material consumed, labour and related overheads. Cost of raw materials, traded goods and stores & spare parts are computed on weighted average basis. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and to make the sale.

2.14 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. For the purposes of the Cash Flow Statement, cash and cash equivalents is as defined above, net of outstanding bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings in current liabilities.

---

Mar 31, 2018

NOTE - 1 : SIGNIFICANT ACCOUNTING POLICIES

a) Basis of preparation of financial statements

The financial statements of the company have been prepared on accrual basis under the historical cost convention in accordance with the generally accepted accounting principles (GAAP). GAAP comprises of Indian Accounting Standards (Ind AS) as specified in section 133 of the Companies Act, 2013, pronouncements of regulatory bodies applicable to the Company and other provisions of the Act.

The financial statements up to year ended 31st March, 2017 were prepared in the accounting standards notified under the Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act. These financial statements are the first financial statements of the Company under Ind AS. The date of transition to Ind AS Is April 01, 2017.

b) Statement of Compliance

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) and other relevant provisions of the Act.

c) Inventories

Inventories are valued at lower of cost as per moving weighted average price or net realizable value, after providing for obsolescence and other losses, wherever considered necessary Cost includes all relevant charges in bringing the goods to the point of sale. Work in progress and finished goods include appropriate proportion of overheads.

Inventories of stores and spare parts are valued at lower of cost or net realizable value Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and to make the sale.

d) Property, plant and equipment

Hitherto, all property, plant and equipment were stated at historical cost less accumulated depreciation and accumulated impairment losses. However, this year, on transition to Ind AS, the management has decided to revalue the freehold/leasehold land at the fair market value.

However, all the other assets continue to be valued at historical cost less accumulated depreciation, etc. as earlier.

Historical cost includes expenditure that is directly attributable to the acquisition of the items. Cost includes the purchase price, non cenvatable duties and taxes and directly attributable costs of bringing the assets to their working condition.

Properties, plant and equipment under construction/erection are carried at cost and shown as capital work in progress, less any recognized impairment loss. Pre-operative expenditure during construction/trial run of new project, net of sales during trial runs and income earned by way of interest for temporary parking of funds earmarked for construction of an asset, are separated from normal revenue heads and allocated to the appropriate assets head under construction and shown as capital work-in-progress and allocated on an appropriate basis to fixed assets on commissioning.

Transition to Ind AS

On transition to Ind AS, the Company has elected to revalue it’s land at fair market value. Apart from this, the Company has decided to continue with the carrying value of all its other property, plant and equipment recognized as at 1st April, 2017 measured as per GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

e) Depreciation :

Depreciation is provided on fixed assets on the straight line method based on useful life of the assets specified in Schedule II of the Companies Act, 2013.

f) Leases

Operating Leases : Rental are expensed with reference to lease terms and other considerations. The Company has taken commercial / residential premises under cancelable operating leases. The lease agreements are usually renewable by mutual consent on mutually agreeable terms. The expenses in respect of operating leases are accounted for as Other Expenses in the Balance Sheet.

g) Revenue Recognition :

Sales of products are recognized when the products are shipped and are stated inclusive of excise duty but net of sales tax, trade discounts and sales returns.

Revenue is recognized when no significant uncertainties exist in relation to the amount of eventual receipt.

The Company generally follows mercantile system of accounting and all income and expenditure items having a material bearing on the financial statements are recognized on accrual basis.

g) Foreign Currency Transactions :

(i) Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction.

(ii) Gains/losses arising out of fluctuation in the exchange rates are recognized in the period in which they arise.

(iii) Monetary assets and liabilities denominated in foreign currency are translated at the relevant rates of exchange prevailing at the year end and the resultant gain or loss is recognized in the Statement of Profit and Loss, except in the case of gain where significant uncertainties exist in relation to the actual realization.

(iv) Premium / discount on forward exchange contracts (including options), which are not intended for trading or speculation purposes, are amortized over the period of the contract. There are no outstanding forward exchange contracts (including options) as at the Balance Sheet date.

(v) Any profit or loss arising on cancellation or settlement of forward exchange contracts (including options) is recognized as income or expense of the year.

h) Employees’ Retirement and Other Benefits

Company’s contribution to provident and other funds is accounted for on accrual basis and charged to Profit and Loss Account. Provident Fund is accrued on monthly basis and is deposited with the “Statutory Provident Fund”. The Company’s contribution is charged to the Statement of Profit and Loss Account.

Till last year, provision for unutilized leave benefits was made on accrual basis. Liability for leave encashment benefit is accounted for on the assumption that such benefits are payable to all employees at the end of accounting year. However, this year, the management has decided to not grant any leave encashment from current year onwards and the employees should avail of all leave entitled.

Gratuity liability is provided for on the basis of actuarial valuation. Actuarial gains and losses are recognized in full in the Profit and Loss Account for the period in which they occur.

i) Borrowing Costs

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets prior to commencement of commercial production are capitalized as a 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.

j) Miscellaneous Expenditure

Miscellaneous Expenditure shall be amortized over a period of five years from the year of the commencement of commercial production.

k) Events occurring after Balance Sheet date :

Significant events occurring after the Balance Sheet date have been considered in the preparation of financial statements.

l) Taxes on Income

Provision for Current tax has been determined as per provisions of the Income Tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Minimum Alternate Tax (MAT) credit is recognized as an asset when there is convincing evidence that the Company will pay normal Income Tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of statement of profit and loss and shown as MAT Credit entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement to the extent it is not reasonable certain that the Company will pay normal income tax during the specified period.

m) Impairment of property, plant & equipment and intangible assets

At the end of each year, the Company determines whether a provision should be made for impairment loss on each class of property, plant & equipment or intangible assets by considering whether there are any indications that an impairment loss may have occurred. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate of recoverable amount.

n) Contingent Liabilities and Provisions

The Company makes a provision when there is a present obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of the obligation can be made.

A disclosure is made for a contingent liability when there is a :

a) possible obligation, the existence of which will be confirmed by the occurrence/nonoccurrence of one or more uncertain events, not fully within the control of the Company:

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation ;

c) present obligation, where a reliable estimate cannot be made.

o) Earning per share :

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to the equity shareholders by weighted average number of shares outstanding during the year. For the purpose of calculating diluted earning per share, the net profit or loss for the year attributable to the equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

p) Cash Flow Statement :

The Cash flow statement is prepared under “Indirect method” as set out in Accounting Standard-3 on Cash Flow Statements, whereby Profit/ (Loss) Before Extraordinary Items and Tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

q) Current/ non-current classification :

An assets is classified as current if:

(a) it is expected to be realized or sold or consumed in the normal operating cycle;

(b) it is held primarily for the purpose of trading;

(c) it is expected to be realized within twelve months after the reporting period; or

(d) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current if:

(a) it is expected to be settled in the normal operating cycle;

(b) it is held primarily for the purpose of trading;

(c) it is expected to be settled within twelve months after the reporting period; or

(d) it has no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current. r) Significant accounting estimates, judgments and assumptions :

The preparation of the Company’s financial statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions which affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosures, including the disclosure on contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the existing circumstances when the financial statements are prepared. The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates is recognized in the year in which the estimates are revised and in any future year that is affected. In the process of applying the Company’s accounting policies, management has made the following judgments which have significant effect on the amounts recognised in the financial statements :

i) Useful life of property, plant & equipment:

Determination of the estimated useful life of tangible assets and the assessment as to which components of the cost may be capitalized. Useful life of tangible assets is based on the life specified in Schedule II of the Companies Act, 2013, while Freehold land is valued at market value.

ii) Defined benefit plan:

The cost of defined benefit plan and other post employment benefits and the present value of gratuity obligation are determined using acturial valuations, which entail making various assumptions such as determination of discount rates, future salary increases and mortality rate, that may differ from actual developments in the future.

iii) Allowances for uncollected accounts receivable and advances:

Trade receivables do not carry interest and are stated at their normal value as reduced by appropriate allowances for estimated irrecoverable amounts. Individual trade receivables are written off when the management deems them not collectable. Impairment provision is made based on assumptions about the risk of default and the judgment in making these assumptions are based on past history, existing market conditions as well as forward looking estimates at the end of each reporting period, that may differ from actual developments in the future.

iv) Allowance for inventories:

The management reviews the inventory age listing on a periodic basis. The review involves comparison of the carrying value of the aged inventory items with the respective net realizable value. The purpose is to ascertain whether an allowance is required to be made in the financial statements for any obsolete or slow moving item, based on past history, existing market conditions as well as forward looking estimates at the end of each reporting period, that may differ from actual developments in the future.

v) Taxation:

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon likely timing and the level of future taxable profits together with future tax planning strategies. Management judgment is required for the calculation of provision for income tax and deferred tax assets and liabilities. The Company reviews the carrying amount of deferred tax assets at each balance sheet date. The factors used in estimates may differ from actual outcome which could lead to significant adjustment of the amounts reported in the financial statements.

vi) Contingencies:

Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/claims/litigation against the company and it is not possible to predict the outcome of pending matters with accuracy.

---

Mar 31, 2015

A) Basis of preparation of financial statements

The financial statements of the company have been prepared on accrual basis under the historical cost convention in accordance with the generally accepted accounting principles in India (Indian GAAP) to comply with the Accounting Standards notified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

b) Use of Estimates

The presentation of financial statements requires estimates and and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognised in the period in which the results are known/materialized.

c) Fixed Assets :

Fixed assets are stated at historical cost including directly attributable costs of bringing the assets to their working condition and are net of credit under the CENVAT/VAT scheme where applicable.

Fixed assets under construction is categorised as capital work-in-progress. Pre-operative expenditure during construction/trial run of new project net of sales during trial runs and income earned by way of interest for temporary parking of funds earmarked for construction of an asset, are separated from normal revenue heads and allocated to the appropriate assets head under construction and shown as capital work-in-progress and allocated on an appropriate basis to fixed assets on commissioning.

d) Depreciation :

Depreciation is provided on fixed assets on the written down value method in based on useful life of the assets specified in Schedule II of the Companies Act, 2013.

e) Leases

Operating Leases : Rental are expensed with reference to lease terms and other considerations. The Company has taken commercial / residential premises under cancelabe operating leases. The lease agreements are usually renewable by mutual consent on mutually agreeable terms. The expenses in respect of operating leases are accounted for in Other Expenses under Note-20 of the Balance Sheet.

f) Revenue Recognition :

Sales of products are recognised when the products are shipped and are stated inclusive of excise duty but net of sales tax, trade discounts and sales returns.

Revenue is recognised when no significant uncertainties exist in relation to the amount of eventual receipt.

The Company generally follows mercantile system of accounting and all income and expenditure items having a material bearing on the financial statements are recognised on accrual basis.

---

Mar 31, 2014

A) Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles as adopted consistently by the Company and the provisions of the Companies Act, 1956. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

b) Use of Estimates

The presentation of financial statements requires estimates and and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognised in the period in which the results are known/materialized.

c) Fixed Assets :

Fixed assets are stated at historical cost including directly attributable costs of bringing the assets to their working condition and are net of credit under the CENVAT/VAT scheme where applicable.

Fixed assets under construction is categorised as capital work-in-progress. Pre- operative expenditure during construction/trial run of new project net of sales during trial runs and income earned by way of interest for temporary parking of funds earmarked for construction of an asset, are separated from normal revenue heads and allocated to the appropriate assets head under construction and shown as capital work-in-progress and allocated on an appropriate basis to fixed assets on commissioning.

d) Depreciation :

Depreciation on Fixed Assets is provided on the straight line method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

e) Leases

Operating Leases : Rental are expensed with reference to lease terms and other considerations.

The Company has taken commercial / residential premises under cancelabe opertating leases. The lease agreements are usually renewable by mutual consent on mututally agreeable terms.

The expenses in respecet of operating leases are accounted for in Other Expenses under Note-20 of the Balance Sheet.

f) Revenue Recognition :

Sales of products are recognised when the products are shipped and are stated inclusive of excise duty but net of sales tax, trade discounts and sales returns. Revenue is recognised when no significant uncertainties exist in relation to the amount of eventual receipt.

The Company generally follows mercantile system of accounting and all income and expenditure items having a material bearing on the financial statements are recognised on accrual basis.

g) Foreign Currency Transactions :

(i) Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction.

(ii) Gains/losses arising out of fluctuation in the exchange rates are recognised in the period in which they arise.

(iii) Monetary assets and liabilities denominated in foreign currnecy are translated at the relevant rates of exchange prevailing at the year end and the resultant gain or loss is recognized in the Statement of Profit and Loss, except in the case of gain where significant uncertainties exist in relation to the actual realisation.

(iv) Premium / discount on forward exchange contracts (including options), which are not intended for trading or speculation purposes, are amortised over the period of the contract. There are no outstanding forward exchange contracts (including options) as at the Balance Sheet date.

(v) Any profit or loss arising on canellation or settlement of forward exchange contracts (including options) is recognised as income or expense of the year.

h) Excise Duty

Excise Duty is accounted for as and when paid on the clearance of the goods from the factory.

i) Employees'' Retirement and Other Benefits

Company''s contribution to provident and other funds is accounted for on accrual basis and charged to Profit and Loss Account. Provident Fund is accrued on monthly basis and is deposited with the "Statutory Provident Fund". The Company''s contribution is charged to the Statement of Statement of Profit and Loss.

Provision for unutilised leave benefits is made on accrual basis. Liability for leave encashment benefit is accounted for on the assumption that such benefits are payable to all employees at the end of accounting year.

Gratuity liability is provided for on the basis of acturial valuation. Acturial gains and losses are recognised in full in the Statement of Profit and Loss for the period in which they occur.

j) Borrowing Costs

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets prior to commencement of commercial production are capitalised as a 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) Miscellaneous Expenditure (to the extent not written off or adjusted)

Mines Development Expenses are being amortised over a period of five years from the year of the commencement of commercial production.

l) Events occurring after Balance Sheet date :

Significant events occurring after the Balance Sheet date have been considered in the preparation of financial statements.

m) Taxes on Income

Provision for Current tax has been determined as per provisions of the Income Tax Act, 1961.

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

Minimum Alternate Tax (MAT) credit is recognised as an assets only when and to the extent there is convincing evidence that the Company will pay normal Income Tax during the specified period. In the year in which MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of statement of profit and loss and shown as MAT Credit entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement to the extent it is not reasonable certain that the Company will pay normal income tax during the specified period.

n) Impairment of Fixed Assets

At the end of each year, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India.

An impairment loss is charged to the Statement of Profit and Loss in the year in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognised in prior accounting periods is reversed, if there has been a change in the estimate of recoverable amount.

o) Contingent Liabilities and Provisions

The Company makes a provision when there is a present obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of the obligation can be made.

A disclosure is made for a contingent liability when there is a :

a) possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully within the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation ;

c) present obligation, where a reliable estimate cannot be made.

---

Mar 31, 2013

A) Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles as adopted consistently by the Company and the provisions of the Companies Act, 1956. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

b) Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognized in the period in which the results are known/materialized.

c) Fixed Assets:

Fixed assets are stated at historical cost including directly attributable costs of bringing the assets to their working condition and are net of credit under the CENVAT/VAT scheme where applicable.

Fixed assets under construction is categorised as capital work-in-progress. Pre-operative expenditure during construction/trial run of new project net of sales during trial runs and income earned by way of interest for temporary parking of funds earmarked for construction of an asset, are separated from normal revenue heads and allocated to the appropriate assets head under construction and shown as capital work-in-progress and allocated on an appropriate basis to fixed assets on commissioning.

d) Depreciation:

Depreciation on Fixed Assets is provided on the straight line method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

e) Leases

Operating Leases: Rental are expensed with reference to lease terms and other considerations.

The Company has taken commercial / residential premises under cancelable operating leases. The lease agreements are usually renewable by mutual consent on mutually agreeable terms.

The expenses in respect of operating leases are accounted for in Other Expenses under Note-22 of the Balance Sheet.

f) Revenue Recognition:

Sales of products are recognized when the products are shipped and are stated inclusive of excise duty but net of sales tax, trade discounts and sales returns.

Revenue is recognized when no significant uncertainties exist in relation to the amount of eventual receipt.

The Company generally follows mercantile system of accounting and all income and expenditure items having a material bearing on the financial statements are recognized on accrual basis.

g) Foreign Currency Transactions:

(i) Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction.

(ii) Gains/losses arising out of fluctuation in the exchange rates are recognized in the period in which they arise.

(iii) Moneterary assets and liabilities denominated in foreign currency are translated at the relevant rates of exchange prevailing at the year end resultant gain or loss is recognised in the Statement of Profit & Loss, except in the case of gain where significant uncertainties exist in relation to the actual realisation.

(iv) Premium / discount on forward exchange contracts (including options), which are not intended for trading or speculation purposes, are amortized over the period of the contract. There are no outstanding forward exchange contracts (including options) as at the Balance Sheet date.

(v) Any profit or loss arising on cancellation or settlement of forward exchange contracts (including options) is recognized as income or expense of the year.

h) Excise Duty

Excise Duty is accounted for as and when paid on the clearance of the goods from the factory.

i) Employees'' Retirement and Other Benefits Company''s contribution to provident and other funds is accounted for on accrual basis and charged to Profit and Loss Account. Provident Fund is accrued on monthly basis and is deposited with the "Statutory Provident Fund". The Company''s contribution is charged to the Profit and Loss account.

Provision for unutilised leave benefits is made on accrual basis. Liability for leave encashment benefit is accounted for on the assumption that such benefit are payable to all employees at the end of accounting year.

Gratuity liability is provided for on the basis of Acturial Valuation. Acturial gains and losses are recognized in full in the Profit and Loss Account for the period in which they occur.

j) Borrowing Costs

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets prior to commencement of commercial production are capitalized as a 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) Miscellaneous Expenditure (to the extent not written off or adjusted) Mines Development Expenses shall be amortized over a period of five years from the year of the commencement of commercial production.

I) Events occurring after Balance Sheet date:

Significant events occurring after the Balance Sheet date have been considered in the preparation of financial statements.

m) Taxes on Income

Provision for Current tax has been determined as per provisions of the Income Tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Minimum Alternate Tax (MAT) credit is recognised as an assets only when and to the extent there is convincing evidence that the Company will pay normal Income Tax during the specified period. In the year in which MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement to the extent it is not reasonable certain that the Company will pay normal income tax during the specified period.

n) Impairment of Fixed Assets

At the end of each year, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit and Loss Account in the year in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate of recoverable amount.

o) Contingent Liabilities and Provisions

The Company makes a provision when there is a present obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of the obligation can be made. A disclosure is made for a contingent liability when there is a :

a) possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully within the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation ;

c) present obligation, where a reliable estimate cannot be made.

---

Mar 31, 2012

A) Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles as adopted consistently by the Company and the provisions of the Companies Act, 1956. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

b) Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognized in the period in which the results are known/materialized.

c) Fixed Assets:

Fixed assets are stated at historical cost including directly attributable costs of bringing the assets to their working condition and are net of credit under the CENVAT/VAT scheme where applicable.

Fixed assets under construction is categorised as capital work-in-progress. Pre-operative expenditure during construction/trial run of new project net of sales during trial runs and income earned by way of interest for temporary parking of funds earmarked for construction of an asset, are separated from normal revenue heads and allocated to the appropriate assets head under construction and shown as capital work-in-progress and allocated on an appropriate basis to fixed assets on commissioning.

d) Depreciation:

Depreciation on Fixed Assets is provided on the straight line method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

e) Leases

Operating Leases: Rental are expensed with reference to lease terms and other considerations.

The Company has taken commercial/residential premises under cancelable operating leases. The lease agreements are usually renewable by mutual consent on mutually agreeable terms.

The expenses in respect of operating leases are accounted for in Other Expenses under Note-22 of the Balance Sheet.

f) Revenue Recognition:

Sales of products are recognized when the products are shipped and are stated inclusive of excise duty but net of sales tax, trade discounts and sales returns.

Revenue is recognized when no significant uncertainties exist in relation to the amount of eventual receipt.

The Company generally follows mercantile system of accounting and all income and expenditure items having a material bearing on the financial statements are recognized on accrual basis.

g) Foreign Currency Transactions:

(i) Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction.

(ii) Gains/losses arising out of fluctuation in the exchange rates are recognized in the period in which they arise.

(iii) Moneterary assets and liabilities denominated in foreign currency are translated at the relevant rates of exchange prevailing at the year end resultant gain or loss is recognised in the Statement of Profit & Loss, except in the case of gain where significant uncertainties exist in relation to the actual realisation.

(iv) Premium/discount on forward exchange contracts (including options), which are not intended for trading or speculation purposes, are amortized over the period of the contract. There are no outstanding forward exchange contracts (including options) as at the Balance Sheet date.

(v) Any profit or loss arising on cancellation or settlement of forward exchange contracts (including options) is recognized as income or expense of the year.

h) Excise Duty

Excise Duty is accounted for as and when paid on the clearance of the goods from the factory.

i) Employees' Retirement and Other Benefits

Company's contribution to provident and other funds is accounted for on accrual basis and charged to Profit and Loss Account. Provident Fund is accrued on monthly basis and is deposited with the "Statutory Provident Fund". The Company's contribution is charged to the Profit and Loss account.

Provision for unutilised leave benefits is made on accrual basis. Liability for leave encashment benefit is accounted for on the assumption that such benefit are payable to all employees at the end of accounting year.

Gratuity liability is provided for on the basis of Acturial Valuation. Acturial gains and losses are recognized in full in the Profit and Loss Account for the period in which they occur.

j) Borrowing Costs

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets prior to commencement of commercial production are capitalized as a 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) Miscellaneous Expenditure (to the extent not written off of adjusted)

Mines Development Expenses shall be amortized over a period of five years from the year of the commencement of commercial production.

l) Events occurring after Balance Sheet date:

Significant events occurring after the Balance Sheet date have been considered in the preparation of financial statements.

m) Taxes on Income

Provision for Current tax has been determined as per provisions of the Income Ta x Act, 1961. Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Minimum Alternate Ta x (MAT) credit is recognised as an assets only when and to the extent there is convincing evidence that the Company will play normal Income Ta x during the specified period. In the year in which MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement to the extent it is not reasonable certain that the Company will pay normal income tax during the specified period.

n) Impairment of Fixed Assets

At the end of each year, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit and Loss Account in the year in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate of recoverable amount.

o) Contingent Liabilities and Provisions

The Company makes a provision when there is a present obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of the obligation can be made.