Accounting Policies of Rajasthan Tube Manufacturing Company Ltd. Company

Mar 31, 2025

1. CORPORATE INFORMATION:

Rajasthan tube manufacturing company limited ("the company") is a public limited company domiciled in india and incorporated under the provision of the companies act 1956 and listed on bombay stock exchange. The registered office of the company is situated at 28-37, banke bihari industrial area, jatawali mod, maharkala road, village dehra, teh. Chomu, district jaipur-303806.the company is engaged in manufacturing and trading of black and galvanized erw steel tubes and pipes.

amount in the financial statements are presented in rupees in lacs, unless otherwise stated. Certain amount that are required to be disclosed and do not appear due to round off are expressed as zero. The financial statements are amounts that are presented in indian rupees ('') which is also functional currency of the company. These financial statements for the year ended march 31, 2025 are approved and adopted by the board of directors in there meeting held on may 1, 2025.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE COMPANY:

(A) BASIS OF PREPARATION

(i) STATEMENT OF COMPLIANCE WITH IND AS:

These financial statements have been prepared in accordance with the indian accounting standards (hereinafter referred to as the ''ind as'') notified under the companies (indian accounting standards) rules, 2015 as amended by the companies (indian accounting standards) (amendment) rules 2016 notified under the section 133 of the companies act, 2013 the relevant provisions of the companies act, 2013 ("the act") and guidelines issued by the securities and exchange board of india.

(ii) HISTORICAL COST CONVENTION:

The financial statements have been prepared on a historical cost basis, except for the following:

1) certain financial assets and liabilities that are measured at fair value;

2) assets held for sale - measured at lower of carrying amount or fair value less cost to sell;

3) defined benefit plans - plan assets measured at fair value as per actuarial valuation.

(B) USE OF ESTIMATES AND JUDGMENTS

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/materialised.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

(C) IMPAIRMENT OF NON-CURRENT ASSETS

An asset is considered as impaired when at the date of balance sheet there are indications of impairment and the carrying amount of the asset, or where applicable the cash generating unit to which the asset belongs exceeds its recoverable amount (i.e. the higher of the net asset selling price and value in use). The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the statement of profit and loss. The impairment loss recognized in the prior accounting period is reversed if there has been a change in the estimate of recoverable amount. Post impairment, depreciation is provided on the revised carrying value of the impaired asset over its remaining useful life.

(D) PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION

Property, plant and equipment are carried at cost less accumulated depreciation / amortization and impairment of losses if any, in the books of accounts. The company capitalized all costs incidental to acquisition and installation of fixed assets.

An item of property, plant and equipment is derecognized 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 recognized in statement of profit and loss.

TRANSITION TO IND AS

on transition to ind as, the company has elected to continue with the carrying value of all its property, plant and equipment recognized as at april1,2016 measured as the previous gaap (indian gaap) and use that carrying value as the deemed cost of property, plant and equipment.

DEPRECIATION

Depreciable amount for asset is the cost of an asset less its estimated residual value. Depreciation on property, plant and equipment is charged on straight line method as per useful life of prescribed in schedule ii to the companies act, 2013 except on gi plant and building which have commenced commercial production w.e.f. 16th february, 1996, and vehicles purchased after 01-04-1998 depreciation has been provided on written down value method as per useful life of prescribed in schedule ii to the companies act, 2013.

From the date schedule ii of the companies act 2013 comes into effect, the carrying amount of the assets as on that date after retaining the residual value has been depreciated over the remaining useful life of the assets as per this schedule.

Depreciation methods, useful lives and residual values are reviewed periodically, at each financial year end. Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under non-current assets and the cost of assets not put to use before such date are disclosed under ''capital work-in-progress''. Subsequent expenditures relating to property, plant and equipment are capitalized only when it is probable that future economic benefits associated with these will flow to the company and the cost of the item can be measured reliably.

(E) VALUATION OF INVENTORIES:

Inventories are measured at the lower of cost and the net realizable value. As per the consistent practice of the company, while valuing stocks, the relative impact/incidence of overheads has been considered. Cost includes cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Cost of inventories are determined on fifo basis.

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

(F) REVENUE RECOGNATION:

To determine whether to recognise revenue, the company follows a 5-step process:

a) Identifying the contract with a customer

b) Identifying the performance obligations

c) Determining the transaction price

d) Allocating the transaction price to the performance obligations

e) Recognising revenue when/as performance obligation(s) are satisfied.

Sale of products (including scrap sales and service income):

Sales (including scrap sales) are recognized when control of products is transferred to the buyer as per the terms of the contract and are accounted for net of returns and rebates. Control of goods refers to the ability to direct the use of and obtain substantially all of the remaining benefits from goods. Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to the customer, provided transfer of title to the customer occurs and the company has not retained any significant risks of ownership or future obligations with respect to the goods shipped.

Income in respect of service contracts are recognized in statement of profit and loss on completion of performance obligation.

Revenue is measured at fair value of consideration received or receivables and are accounted for net of returns, rebates and trade discount. Sales, as disclosed, are exclusive of goods and services tax.

The company considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which the company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, indirect taxes). The consideration promised in a contract with a customer may include fixed consideration, variable consideration (if reversal is less likely in future), or both. No element of financing is deemed present as the sales are largely made on advance payment terms or with credit term of not more than one year. Sales, as disclosed, are exclusive of goods and services tax.

The transaction price is allocated by the company to each performance obligation (or distinct good or service) in an amount that depicts the amount of consideration to which it expects to be entitled in exchange for transferring the promised goods or services to the customer.

For each performance obligation identified, the company determines at contract inception whether it satisfies the performance obligation over time or satisfies the performance obligation at a point in time.

The company recognizes contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these amounts as other liabilities in the statement of financial position. Similarly, if the company satisfies a performance obligation before it receives the consideration, the company recognizes either a contract asset or a receivable in its statement of financial position, depending on whether something other than the passage of time is required before the consideration is due.

INTEREST INCOME:

Interest income from a financial asset is recognized when it is probable that the economic benefit will flow to the company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective rate applicable, which is the rate that discounts

estimated future cash receipts through the expected life of the financial assets to that asset''s net carrying amount on initial recognition.

JOB WORK INCOME:

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

Dividend income:

Dividend income is recognized at the time when right to receive the payment is established, which is Generally, when the shareholders approve the dividend.

(G) RECENT ACCOUNTING PRONOUNCEMENTS

The ministry of corporate affairs (mca) notifies new standards or amendments to the existing standards under companies (indian accounting standards) rules as issued from time to time. On march 31, 2024, mca amended the companies (indian accounting standards) amendment rules, 2023, as below:

Ind as 1, presentation of financial statements - this amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after april 1, 2023. The company has evaluated the amendment and the impact of the amendment is insignificant in the standalone financial statements.

Ind as 8, accounting policies, changes in accounting estimates and errors - this amendment has introduced a definition of accounting estimates'' and included amendments to ind as 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after april 1, 2023. The company has evaluated the amendment and there is no impact on its standalone financial statements.

Ind as 12, income taxes - this amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. the effective date for adoption of this amendment is annual periods beginning on or after april 1, 2023.

The company has evaluated the amendment and there is no impact on its standalone financial statements.

(H) BORROWING COSTS:

Borrowing costs specifically relating to the acquisition or construction of qualifying assets that necessarily takes a substantial period of time to get ready for its intended use are capitalized (net of income on temporarily deployment of funds) as part of the cost of such assets. Borrowing costs consist of interest and other costs that the company incurs in connection with the borrowing of funds.

for general borrowing used for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalization is determined by applying a capitalization rate to the expenditures on that asset. The capitalization rate is the weighted average of the borrowing costs applicable to the borrowings of the company that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs capitalized during a period does not exceed the amount of borrowing cost incurred during that period. all other borrowing costs are expensed in the period in which they occur.

(I) EMPLOYEE BENEFITS:

1. Short term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss accounted of the year in which the related services are rendered. Benefits such as salaries, bonus, incentives etc. Are recognized in the period in which employees rendered services. Employee benefit such as pf, family pension, esi etc. Are treated as defined contribution plan and such contributions are charged to p&l account when contribution to the respective funds are applicable and due.

2. The company''s liability on account of gratuity are determined at each financial year on the basis of actuarial valuation in respect of eligible employees.

(J) ACCOUNTING FOR TAXES ON INCOME:

I)provision for current tax is made on the basis of estimated tax liability as per the applicable provisions of tax laws.

Ii)deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured at the applicable tax rates. Deferred tax assets and deferred tax liabilities are off set, and presented as net. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available against which the temporary differences can be utilized.

(K) CASH FLOW STATEMENT:

Cash flows are reported using the indirect method, whereby profit/ loss before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing flows. The cash flows from operating, investing and financing activities of the company are segregated. Cash and cash equivalents presented in the cash flow statement consist of cash on hand and cash at bank and demand deposits with bank.

(L) Earning per share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.

(M) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are not recognized. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognized as an asset.

(N) CASH AND CASH EQUIVALENTS

Cash and cash equivalent in the balance sheet comprise cash at bank and on hand and short-term deposit with an original maturity of three months or less, which are subject to insignificant risk of changes in value.

(O) FINANCIAL INSTRUMENTS AND INVESTMENTS

The company recognizes the financial assets and financial liabilities when the recognition criteria of financial instrument as specified under ind as 109 is met.

FINANCIALS ASSET

INITIAL RECOGNITION AND MEASUREMENT

All financial assets are recognized initially at fair value plus transaction costs that are directly attributable to the acquisition of the financial asset except in the case of financial assets not recorded at fair value through profit or loss. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

SUBSEQUENT MEASUREMENT

For purposes of subsequent measurement, financial assets are classified in three categories:

FINANCIAL ASSET AT AMORTIZED COST

a ''financial asset'' is measured at the amortized cost if both the following conditions are met:

a) the asset is held within a business model whose objective is to hold assets for collecting contractual cash

flows, and

b) contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest ("sppi") on the principal amount outstanding. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate ("eir") method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the eir. The eir amortization is included in finance income in the profit or loss.

Financial asset at fair value through other comprehensive income("fvtoci")

a ''financial asset'' is classified as at the fvtoci if both of the following criteria are met:

a) the objective of the business model is achieved both by collecting contractual cash flows and selling the

financial assets, and

b) the asset''s contractual cash flows represent sppi. Financial asset included within the fvtoci category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income ("oci")

FINANCIAL ASSET AT FAIR VALUE THROUGH PROFIT & LOSS ("FVTPL")

fvtpl is a residual category for financial assets. Any financial asset, which does not meet the criteria for categorization as at amortized cost or as fvtoci, is classified as at fvtpl.

In addition, the group may elect to designate a financial asset, which otherwise meets amortized cost or fvtoci criteria, as at fvtpl. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ''accounting mismatch'').

DEROGNISITION OF FINANCIAL ASSET

A financial asset (or, where applicable, a part of a financial asset or part of a company of similar financial assets) is primarily derecognized when the rights to receive cash flows from the asset have expired.

IMPAIRMENT OF FINANCIAL ASSETS

The company assesses on a forward-looking basis the expected credit loss associated with its assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For trade receivables only, the company applies the simplified approach permitted by ind as 109 financial

instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables.

FINANCIAL LIABILITIES

INITIAL RECOGNITION AND MEASUREMENT

all financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

SUBSEQUENT MEASUREMENT

Financial liabilities at fair value through profit or loss

financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognized in the profit or loss.

FINANCIAL LIABILITIES AT AMORTIZED COST

after initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the eir method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the eir amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the eir. The eir amortization is included as finance costs in the statement of profit and loss.

(P) SEGMENT REPORTING:

The company at present is engaged in the business of manufacturing of erw steel tubes, which constitutes a single business segment.

(Q) FAIR VALUE MEASUREMENT:

The company measures some of its financial instruments at fair value at each balance sheet date. 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.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

I. Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Ii. Level 2 — valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Iii. Level 3 — valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

(R) CLASSIFICATION OF CURRENT / NON-CURRENT ASSETS AND LIABILITIES

All assets and liabilities are presented as current or non-current as per the company''s normal operating cycle and other criteria set out in schedule iii of the companies act, 2013 and ind as 1 presentation of financial statements. Based on the nature of products and the time between the acquisition of assets for processing and their realisation, the company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

(S) CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS

In the process of applying the company''s accounting policies, management has made the following estimates, assumptions and judgments, which have significant effect on the amounts recognised in the financial statement:

(a) PROPERTY, PLANT AND EQUIPMENT

External adviser or internal technical team assess the remaining useful lives and residual value of property, plant and equipment. Management believes that the assigned useful lives and residual value are reasonable, the estimates and assumptions made to determine depreciation are critical to the company''s financial position and performance.

(b) INCOME TAXES

Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the standalone financial statements.

(c) CONTINGENCIES

Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations against the company as it is not possible to predict the outcome of pending matters with accuracy.

(d) ALLOWANCE FOR UNCOLLECTED ACCOUNTS RECEIVABLE AND ADVANCES

Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate allowances for estimated irrecoverable amounts. Individual trade receivables are written off when management deems them not to be collectible. Impairment is made on the expected credit losses, which are the present value of the cash shortfall over the expected life of the financial assets.

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Mar 31, 2024

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE COMPANY:

(A) BASIS OF PREPARATION

(i) STATEMENT OF COMPLIANCE WITH IND AS:

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') notified under the companies (Indian accounting standards) Rules, 2015 as amended by the companies (Indian accounting standards) (Amendment) Rules 2016 notified under the Section 133 of the companies act, 2013 the relevant provisions of the companies act, 2013 ("the Act") and guidelines issued by the securities and exchange Board of India.

(ii) HISTORICAL COST CONVENTION:

The financial statements have been prepared on a historical cost basis, except for the following:

1) Certain financial assets and liabilities that are measured at fair value;

2) Assets held for sale - measured at lower of carrying amount or fair value less cost to sell;

3) Defined benefit plans - plan assets measured at fair value as per Actuarial Valuation.

(B) USE OF ESTIMATES AND JUDGMENTS

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognised in the period in which the results are known/materialised.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

(C) IMPAIRMENT OF NON-CURRENT ASSETS

An asset is considered as impaired when at the date of Balance Sheet there are indications of impairment and the carrying amount of the asset, or where applicable the cash generating unit to which the asset belongs exceeds its recoverable amount (i.e. the higher of the net asset selling price and value in use). The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the Statement of Profit and

Loss. The impairment loss recognized in the prior accounting period is reversed if there has been a change in the estimate of recoverable amount. Post impairment, depreciation is provided on the revised carrying value of the impaired asset over its remaining useful life.

(D) PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION

Property, Plant and Equipment are carried at cost less accumulated depreciation / amortization and impairment of losses if any, in the books of accounts. The company capitalized all costs incidental to acquisition and installation of fixed assets.

An item of property, plant and equipment is derecognized 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 recognized in Statement of Profit and Loss.

Transition to Ind AS

On transition to Ind AS, the company has elected to continue with the carrying value of all its property, plant and equipment recognized as at April1,2016 measured as the previous GAAP (Indian GAAP) and use that carrying value as the deemed cost of property, plant and equipment.

Depreciation

Depreciable amount for asset is the cost of an asset less its estimated residual value. Depreciation on Property, Plant and Equipment is charged on straight line method as per useful life of prescribed in Schedule II to the Companies Act, 2013 except on GI Plant and Building which have commenced commercial production w.e.f. 16th February, 1996, and vehicles purchased after 01-04-1998 depreciation has been provided on written down value method as per useful life of prescribed in Schedule II to the Companies Act, 2013.

From the date Schedule II of the Companies Act 2013 comes into effect, the carrying amount of the assets as on that date after retaining the residual value has been depreciated over the remaining useful life of the assets as per this Schedule.

Depreciation methods, useful lives and residual values are reviewed periodically, at each financial year end. Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under non-current assets and the cost of assets not put to use before such date are disclosed under ''capital work-in-progress''. Subsequent expenditures relating to property, plant and equipment are capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably.

(E) VALUATION OF INVENTORIES:

Inventories are measured at the lower of cost and the net realizable value. As per the consistent practice of the company, while valuing stocks, the relative impact/incidence of overheads has been considered. Cost includes cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Cost of inventories are determined on FIFO basis.

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

(F) REVENUE RECOGNATION:

To determine whether to recognise revenue, the Company follows a 5-step process:

a) Identifying the contract with a customer

b) Identifying the performance obligations

c) Determining the transaction price

d) Allocating the transaction price to the performance obligations

e) Recognising revenue when/as performance obligation(s) are satisfied.

Sale of products (including scrap sales and service income):

Sales (including scrap sales) are recognized when control of products is transferred to the buyer as per the terms of the contract and are accounted for net of returns and rebates. Control of goods refers to the ability to direct the use of and obtain substantially all of the remaining benefits from goods. Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to the customer, provided transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future obligations with respect to the goods shipped.

Income in respect of service contracts are recognized in Statement of Profit and Loss on completion of performance obligation.

Revenue is measured at fair value of consideration received or receivables and are accounted for net of returns, rebates and trade discount. Sales, as disclosed, are exclusive of goods and services tax.

The Company considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, indirect taxes). The consideration promised in a contract with a customer may include fixed consideration, variable consideration (if reversal is less likely in future), or both. No element of financing is deemed present as the sales are largely made on advance payment terms or with credit term of not more than one year. Sales, as disclosed, are exclusive of goods and services tax.

The transaction price is allocated by the Company to each performance obligation (or distinct good or service) in an amount that depicts the amount of consideration to which it expects to be entitled in exchange for transferring the promised goods or services to the customer.

For each performance obligation identified, the Company determines at contract inception whether it satisfies the performance obligation over time or satisfies the performance obligation at a point in time.

The Company recognizes contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these amounts as other liabilities in the statement of financial position. Similarly, if the Company satisfies a performance obligation before it receives the consideration, the Company recognizes either a contract asset or a receivable in its statement of financial position, depending on whether something other than the passage of time is required before the consideration is due.

Interest income:

Interest income from a financial asset is recognized when it is probable that the economic benefit will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective rate applicable, which is the rate that discounts estimated future cash receipts through the expected life of the financial assets to that asset''s net carrying amount on initial recognition.

Job Work Income:

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

Dividend income:

Dividend income is recognized at the time when right to receive the payment is established, which is generally, when the shareholders approve the dividend.

(G) Recent accounting pronouncements

The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2024, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

Ind AS 1, Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the standalone financial statements.

Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its Standalone financial statements.

Ind AS 12, Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023.

The Company has evaluated the amendment and there is no impact on its Standalone financial statements.

(H) BORROWING COSTS:

Borrowing costs specifically relating to the acquisition or construction of qualifying assets that necessarily takes a substantial period of time to get ready for its intended use are capitalized (net of income on temporarily deployment of funds) as part of the cost of such assets. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds.

For general borrowing used for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalization is determined by applying a capitalization rate to the expenditures on that asset. The capitalization rate is the weighted average of the borrowing costs applicable to the borrowings of the Company that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs capitalized during a period does not exceed the amount of borrowing cost incurred during that period.

All other borrowing costs are expensed in the period in which they occur.

(I) EMPLOYEE BENEFITS:

1. Short term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss accounted of the year in which the related services are rendered. Benefits such as salaries, bonus, incentives etc. are recognized in the period in which employees rendered services. Employee benefit such as PF, family pension, ESI etc. are treated as defined contribution plan and such contributions are charged to P&l account when contribution to the respective funds are applicable and due.

2. The company''s liability on account of gratuity are determined at each financial year on the basis of actuarial valuation in respect of eligible employees.

(J) ACCOUNTING FOR TAXES ON INCOME:

i) Provision for current tax is made on the basis of estimated tax liability as per the applicable provisions of tax laws.

ii) Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured at the applicable tax rates. Deferred tax assets and deferred tax liabilities are off set, and presented as net. The carrying amount of deferred tax assets is

reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available against which the temporary differences can be utilized.

(K) CASH FLOW STATEMENT:

Cash flows are reported using the indirect method, whereby profit/ loss before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing flows. The cash flows from operating, investing and financing activities of the Company are segregated. Cash and cash equivalents presented in the cash flow statement consist of cash on hand and cash at bank and demand deposits with bank.

(L) EARNING PER SHARE:

Basic earnings per share is calculated by dividing the net Profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. for the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.

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Mar 31, 2015

(A) .BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

The accounts are prepared under the historical cost convention and on the basis of a going on concern and on the accrual system of accounting.

(B) .USE OF ESTIMATES:

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

(C) FIXED ASSETS AND DEPRECIATION

Fixed Assets are stated at cost and amount added/adjusted on revaluation less Accumulated depreciation in the books of account. The company capitalized all costs incidental to acquisition and installation of fixed assets.

Depreciation on fixed assets is charged on straight line method except on GI Plant and Building which have commenced commercial production w.e.f. 16th February, 1996, and vehicles purchased after 01-04-1998 depreciation has been provided on written down value method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013

(D) VALUATION OF INVENTORIES :

Inventories are valued as under :

(a) Stores : At cost.

(b) Loose tools : At cost.

(c) Raw materials : At cost (FIFO)

(d) Stock in process : At estimated cost

(e) Finished goods : At lower of cost or net realizable value.

As per the consistent practice of the company, while valuing stocks, the relative impact/incidence of manufacturing, administrative and financial expenses has been considered. Cost includes estimated apportioned overheads. Finished goods lying in factory premise are valued inclusive of excise duty. Goods sent on Consignment held in stock have been valued at the Invoice Price. Raw material are valued on FIFO basis except Zinc which was valued on average cost basis.

(E) SALES

Sales are inclusive of conversion sale net of return, excise duty, rebate, claims, Freight and discount etc. Consignment Sales are recognized on receipt of

statement of account from the Agent. Debit Note/ Credit Note Pertaining to transaction with Govt./Semi-Govt. Organisation are debited and credited on the date of receipt of the same.

(F) EXCISE DUTY

Excise duty is accounted for at the time of removal of the goods.

(G) INVESTMENT

Investments are valued at cost.

(H) RETIREMENT BENEFITS

Provision for gratuity has been made on the basis of actuarial valuation in the accounts in respect of employees who has completed qualifying period of service.

(I) DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising from temporary timing differences are recognized to the extent there is reasonable certainty that the assets can be realized in future.

(J) CONTINGENT LIABILITIES:

Contingent liabilities are not provided for in the accounts and are separately shown in the notes to the accounts.

---

Mar 31, 2014

(A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accounts are prepared under the historical cost convention and on the basis of a going on concern and on the accrual system of accounting.

(B) USE OF ESTIMATES :

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

(C) FIXED ASSETS AND DEPRECIATION

Fixed Assets are stated at cost and amount added/adjusted on revaluation less Accumulated depreciation in the books of account. The company capitalised all costs incidental to acquisition and installation of fixed assets. Depreciation on fixed assets is charged on straight line method at the rates prescribed in Schedule XIV of the Companies Act,1956 as amended by circular No.1/12/92/CLV/dated 16.12.93 except on GI Plant and Building which have commenced commercial production w.e.f. 16th February,1996, and vehicals purchased after 01-04-1998 depreciation has been provided on written down value method at the rates prescribed in Schedule XIV of the Company Act,1956.

The amount of Depreciation on increase due to revaluation is being directly transferred to General Reserve from Revaluation Reserve.

(D) VALUATION OF INVENTORIES :

Inventories are valued as under :

(a) Stores : At cost.

(b) Loose tools : At cost.

(c) Raw materials : At cost (FIFO)

(d) Stock in process : At estimated cost

(e) Finished goods : At lower of cost or net realizable value.

As per the consistent practice of the company, while valuing stocks, the relative impact/incidence of manufacturing, administrative and financial expenses has been considered. Cost includes estimated apportioned overheads. Finished goods lying in factory premise are valued inclusive of excise duty. Goods sent on Consignment held in stock has been valued at the Invoice Price. Raw material are valued on FIFO basis except Zinc which was valued on average cost basis.

(E) SALES

Sales are inclusive of conversion sale net of return, excise duty, rebate, claims, Freight and discount etc. Consignment Sales are recognised on receipt of statement of account from the Agent. Debit Note/ Credit Note Pertaining to transaction with Govt./Semi-Govt. Organisation are debited and credited on the date of receipt of the same.

(F) EXCISE DUTY

Excise duty is accounted for at the time of removal of the goods.

(G) INVESTMENT

Investment are valued at cost.

(H) RETIREMENT BENEFITS

Provision for gratuity has been made on the basis of actuarial valuation in the accounts in respect of employees who has completed qualifying period of service.

(I).DEFERRED TAX :

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realized in future.

(J) CONTINGENT LIABILITIES :

Contingent liabilities are not provided for in the accounts and are separately shown in the notes to the accounts.

---

Mar 31, 2013

(A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accounts are prepared under the historical cost convention and on the basis of a going on concern and on the accrual system of accounting.

(B) USE OF ESTIMATES:

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

(C) FIXED ASSETS AND DEPRECIATION:

Fixed Assets are stated at cost and amount added/adjusted on revaluation less i Accumulated depreciation in the books of account.The company capitalised all I costs incidental to acquisition and installation of fixed assets. Depreciation on fixed assets is charged on straight line method at the rates prescribed in Schedule XIV of i the Companies Act,1956 as amended by circular No.1/12/92/CLV/dated 16.12.93 j except on Gl Plant and Buiiding which have commenced commercial production w.e.f. 16th Februarys 996,and vehicals purchased after 01-04-1998 depreciation has been provided on written down value method at the rates prescribed in Schedule XIV of the Company Act,1956.

The amount of Depreciation on increase due to revaluation is being directly transferred to General Reserve from Revaluation Reserve.

(D) VALUATION OF INVENTORIES:

Inventories are valued as under:

(a) Stores : At cost.

(b) Loose tools : At cost.

(c) Raw materials : At cost (FIFO)

d) Stock in process : At estimated cost

(e) Finished goods : At lowerofcostornetrealizablevalue.

As per the consistent practice of the company, while valuing stocks, the relative impact/ incidence of manufacturing, administrative and financial expenses has been considered. Cost includes estimated apportioned overheads. Finished goods lying in factory premise are valued inclusive of excise duty.Goods sent on Consignment held in stock has been valued at the Invoice Price. Raw material are valued on FIFO basis except Zinc which was valued on average cost basis.

(E) SALES

Sales are inclusive of conversion sale net of return, excise duty, re bate, claims. Freight and discount etc. Consignment Sales are recognised on receipt of statement of account from the Agent. Debit Note/ Credit Note Pertaining to transaction with Govt./Semi-Govt. Organisation are debited and credited on the date of receipt of the same.

(F) EXCISE DUTY

Excise duty is accounted for at the time of removal of the goods.

(G) INVESTMENT Investment are valued at cost.

(H) RETIREMENT BENEFITS

Provision for gratuity has been made on the basis of actuarial valuation in the accounts in respect of employees who has completed qualifying period of service.

(I) DEFERREDTAX:

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realized in future.

(J) CONTINGENT LIABILITIES:

Contingent liabilities are not provided for in the accounts and are separately shown in the notes to the accounts.

---

Mar 31, 2012

(A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accounts are prepared under the historical cost convention and on the basis of a going on concern and on the accrual system of accounting.

(B) USE OF ESTIMATES:

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

(C) FIXED ASSETS AND DEPRECIATION:

Fixed Assets are stated at cost and amount added/adjusted on revaluation less Accumulated depreciation in the books of account.The company capitalised all costs incidental to acquisition and installation of fixed assets. Depreciation on fixed assets is charged on straight line method at the rates prescribed in Schedule XIV of the Companies Act,1956 as amended bycircular No.l/12/92/CLV/dated 16.12.93 except on Gl Plant and Building which have commenced commercial production w.e.f. 16th February,1996, and vehicals purchased after 01-04-1998 depreciation has been provided on written down value method at the rates prescribed in Schedule XIV of the Company Act, 1956.

The amount of Depreciation oh increase due to revaluation is being directly transferred to General Reserve from Revaluation Reserve.

(D) VALUATION OF INVENTORIES:

Inventories are valued as under:

(a) Stores : At cost.

(b) Loose tools : At cost.

(c) Raw materials : At cost (FIFO)

(d) Stock in process : At estimated cost

(e) Finished goods : At lower of cost or net realizable value.

As per the consistent practice of the company, while valuing stocks, the relative impact/ incidence of manufacturing, administrative and financial expenses has been considered. Cost includes estimated apportioned overheads. Finished goods lying in factory premise are valued inclusive of excise duty. Goods sent on Consignment held in stock has been valued at the Invoice Price. Raw material are valued on FIFO basis except Zinc which was valued on average cost basis.

(E) SALES

Sales are inclusive of conversion sale net of return, excise duty, rebate, claims, Freight and discount etc. Consignment Sales are recognised on receipt of statement of account from the Agent.

(F) EXCISE DUTY

Excise duty is accounted for at the time of removal of the goods.

(G) INVESTMENT Investment are valued at cost.

(H) RETIREMENT BENEFITS

Provision for gratuity has been made on the basis of actuarial valuation in the accounts in respect of employees who has completed qualifying period of service.

(I) DEFERRED TAX:

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets can be realized in future.

(J) CONTINGENT LIABILITIES:

Contingent liabilities are not provided for in the accounts and are separately shown in the notes to the accounts.

---

Mar 31, 2010

(1) CONVENTION

The accounts are prepared under the historical cost convention and on the basis of a going o.n concern and on the accrual system of accounting.

(2) FIXED ASSETS AND DEPRECIATION:

Fixed Assets are stated at cost and amount added/adjusted on revaluation less accumulated depreciation in the books of account. The company capitalises all costs incidental to acquisition and installation of fixed assets.

Depreciation on fixed assets is charged on straight line method at the rates prescribed in Schedule XIV of the Companies Act,1956 as amended by circular No. 1 /12/92/CLV/ dated 16.12.93 except on Gl Plant and BuiJding which have commenced commercial production w.e.f. 16th Februarys 996, and vehicals purchased after 01-04-1998 depreciation has been provided on written down value method at the rates prescribed in Schedule XIV of the Company Act,1956.

The amount of Depreciation on increase due to revaluation is being directly transferred to General Reserve from Revaluation Reserve.

(3) VALUATION OF INVENTORIES:

Inventories are valued as under:

(a) Stores : At cost.

(b) Loose tools : At cost.

(c) Raw materials : At cost (FIFO)

(d) Stock in process ; At estimated cost

(e) Finished goods At lower of cost or net realisable value.

As per the consistent practice of the company, while valuing stocks, the relative impact/incidence of manufacturing, administrative and financial expenses has been considered. Cost includes estimated apportioned overheads. Finished goods lying in factory premise are valued inclusive of excise duty.Goods sent on Consignment held in stock has been valued at the Invoice Price. Raw material are valued on FIFO basis except Zinc which was valued on average cost basis.

(4) SALES

Sales are inclusive of conversion sale net of return, excise duty, rebate, claims, Freight and discount etcConsignment Sales are recognised on receipt of statement of account from the Agent.

(5) EXCISE DUTY

Excise duty is accounted for at the time of removal of the goods.

(6) INVESTMENT

Investment are valued at cost.

(7) RETIREMENT BENIFITS:

Provision for gratuity has been made on the basis of actuarial valuation in the accounts in respect of employees who has completed qualifying period of Service.

(8) DEFERRED TAX:

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising from temporary timing differences are recognised to the extent there is certainty that the assets can be realised in future.

(9) CONTINGENT LIABILITIES:

Contingent liabilities are not provided for in the accounts and areseparately shown in the notes to the accounts.