Accounting Policies of Rama Petrochemicals Ltd. Company

Mar 31, 2025

B. Material Accounting Policies

1. Basis of Preparation

The financial statements of the Company have been prepared in accordance with the Indian Accounting
Standards (IND AS) notified under Section 133 of the Companies Act, 2013 (“the Act”) [Companies (Indian
Accounting Standards) Rules, 2015] and other relevant provisions of the Act. The financial statements have been
prepared on the historical cost basis except for certain financial assets and liabilities, which are measured at fair
value.

The financial statements are presented in Indian Rupees (“INR”), which is also the company''s functional
currency and all values are rounded off to the nearest thousands, except when otherwise indicated.

Use of Estimates and Judgements

The preparation of the Company''s financial statements with IND AS requires management to make informed
judgements, reasonable assumptions and estimates that affect the amounts reported in the financial statements
and notes thereto. Uncertainty about these could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in the future periods. These assumptions and estimates are
reviewed periodically based on the most recently available information. Revisions to accounting estimates are
recognized prospectively in the Statement of Profit & Loss in the period in which the estimates are revised and in
any future periods affected.

In the assessment of the Company, the most significant effects of use of judgments and/or estimates on the
amounts recognized in the financial statements relate to the following areas:

• Fair value measurements for Financial instruments;

• Useful lives ofproperty, plant & equipment;

• Estimation of net realizable value of inventories;

• Measurement ofrecoverable amounts ofassets / cash-generating units;

• Assets and obligations relating to employee benefits;

• Provisions and Contingencies.

• Provision for doubtful receivables.

• Use of Going Concern Assumption.

2. Revenue Recognition :

a. Revenue is recognized when the substantial risks and rewards of ownership is transferred to the buyer to the
extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably
measured, regardless of when the payment being made. The Company collects Goods and Service Tax
(GST) on behalf of the government and, therefore, it is not an economic benefit flowing to the Company.
Hence, it is excluded from revenue.

b. Interest income is recognized when it is probable that the economic benefits will flow to the Company and
the amount of income can be measured reliably. Interest income is accounted on accrual basis, using
effective interest rate method.

c. Dividend income from investments is recognized when the right to receive the dividend is established.

d. Revenue in respect of insurance / other claims are recognized only when it is reasonably certain that the
ultimate collection will be made.

3. Property, Plant and Equipment :

Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment, if
any. The cost of property, plant and equipment includes purchase price, including freight, duties, taxes and
expenses incidental to acquisition and installation. If significant parts of an item of property, plant and equipment
have different useful lives, then they are accounted for as separate items (major components) of property, plant
and equipment. Property, plant and equipment are derecognized from financial statements, either on disposal or
when no economic benefits are expected from its use or disposal. The gain or losses arising from disposal of
property, plant and equipment are recognized in the Statement of Profit and Loss in the year of occurrence.

Subsequent expenditures

Subsequent expenditures related to an item of property, plant and equipment are added to its carrying value only
when it is probable that the future economic benefits from the asset will flow to the Company and cost can be
reliably measured. All other repair and maintenance costs are recognized in the Statement of Profit and Loss
during the year in which they are incurred.

4. Depreciation and amortisation :

a. Depreciation on Fixed Assets is provided on straight line method based on the useful lives of the assets as
prescribed in Schedule II of the Companies Act, 2013.

b. Depreciation on addition / deletion is provided pro-rata basis with reference to the date of addition / deletion
as the case may be.

c. The details of estimated life for each category of assets are as under:

Free hold land is not depreciated

Lease hold land is amortised over the life of the lease.

Intangible Assets

Intangible assets are initially recognized at cost. Following initial recognition, intangible assets are carried at cost
less any accumulated amortization and accumulated impairment losses. The amortization period and the
amortization method for an intangible asset are reviewed at least at the end of each reporting period. Gains or
losses arising from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the
asset is derecognized. Intangible assets are amortized over its useful life of five years.

Impairment

The carrying amount of assets is reviewed at each Balance Sheet date if there is any indication of impairment
based on internal/external factors.

If the carrying amount of assets exceeds its estimated recoverable amount, an impairment loss is recognized in the
Statement of Profit & Loss to the extent the carrying amount exceeds recoverable amount.

5. Cash Flow Statements :

Cash flow statement is prepared in accordance with the indirect method prescribed under IND AS - 7 “Cash Flow
Statements” issued by the Institute of Chartered Accountants of India.

6. Foreign Currency Transactions :

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount
the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Foreign currency monetary items of the Company are translated at the closing exchange rates. Non-monetary
items that are measured at historical cost in a foreign currency, are translated using the exchange rate at the date of
the transaction. Non-monetary items that are measured at fair value in a foreign currency, are translated using the
exchange rates at the date when the fair value is measured. Exchange differences arising out of these translations
are recognized in the Statement of Profit and Loss.

7. Valuation of Inventories :

a. Raw Material and work in process are valued at cost (on “first in first out basis”) or net realisable value
whichever is lower. Raw material and work in process are not written down below cost if the finished
product in which they will be incorporated are expected at or above cost.

b. Stores & Spares are valued at cost ( on “first in first out basis” ).

c. Stocks in transit are valued at cost or market value whichever is lower.

d. Finished goods are valued at cost or net realizable value, whichever is lower.

e. Inventories of traded goods are valued at cost or net realizable value, whichever is lower.

8. Employee’s Benefits :

Short Term Employee Benefits :

All employee benefits falling due wholly within twelve months of rendering the service are classified as short
term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected
cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

Long Term Employee Benefits :

Defined Contribution Plan :

The company has Defined Contribution plans for post employment benefits namely Provident Fund. Under the
provident Fund Plan, the company contributes to a Government administered provident fund on behalf of its
employees.

The Company''s contributions to the above funds are charged to revenue every year.

Defined benefit plans:

The liability recognized in the balance sheet in respect of defined benefit plans is the present value of the defined
benefit obligation at the end of the reporting period. The defined benefits obligation is calculated annually by
actuaries using the projected unit credit method.

The Company operates defined benefit plan for Gratuity. The cost of providing such defined benefit is determined
using the projected unit credit method of actuarial valuation made at the end of the year.

Actuarial gains and losses are recognised in other comprehensive income for gratuity and recognised in the
Statement of Profit & Loss for leave encashment.

Remeasurement gain and losses arising from experience adjustments, changes in actuarial assumptions are
recognized in the period in which they occur, directly in other comprehensive income (OCI). They are included in
retained earnings in the statement of change in equity and in the balance sheet.

9. Borrowing Cost :

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily

takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the
respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of
interest and other costs that an entity incurs in connection with the borrowing of funds.

10. Segment Reporting :

The accounting policies adopted for segment reporting are in line with the accounting policies of the company.
Segment assets include all operating assets used by the business segments and consist principally of fixed assets,
debtors and inventories. Segment liabilities include the operating liabilities that result from the operating
activities of the business. Segment assets and liabilities that cannot be allocated between the segments are shown
as part of unallocated assets and liabilities respectively. Income / Expenses relating to the enterprise as a whole
and not allocable on a reasonable basis to business segments are reflected as unallocated income / expenses.

11. Fair value measurement :

The Company''s accounting policies and disclosures require the measurement of fair values for financial assets
and liabilities.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.

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.

• Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

• Level 2- Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

• Level 3- Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.

12. Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity. Financial assets and financial liabilities are recognized when the Company
becomes a party to the contractual provisions of the instruments.

A. Financial Assets :

Initial recognition and measurement

The Company recognizes financial assets when it becomes a party to the contractual provisions of the
instrument. All financial assets are recognized initially at fair value plus transaction costs that are directly
attributable to the acquisition of the financial asset.

Subsequent measurement

For the purpose of subsequent measurement, the financial assets are classified as under:

Financial assets at amortised cost

A financial asset is measured at the amortised cost, if both the following conditions are met:

(i) The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and

(ii) 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 amortised cost using the
effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium and fees or costs that are an integral part of the EIR. Interest income from these financial assets is
included in other income using the EIR in the Statement of Profit and Loss. The losses arising from
impairment are recognized in the Statement of Profit and Loss.

Financial assets at fair value through other comprehensive income (FVTOCI)

Financial assets are classified as FVTOCI, if both of the following criteria are met:

(i) These assets are held within a business model whose objective is achieved both by collecting
contractual cash flows and selling the financial assets; and

(ii) 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.

Fair value movements are recognised in the other comprehensive income (OCI), except for the recognition
of impairment gains or losses, interest income and foreign exchange gains or losses which are recognised in
profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised
in OCI is reclassified from equity to Profit or Loss and recognised in other income/(loss).

Financial assets at fair value through profit or loss (FVTPL)

Financial assets that do not meet the criteria for amortized cost or FVTOCI are measured at fair value
through profit or loss. A gain or loss on a instrument that is subsequently measured at fair value through
profit or loss and is recognized in profit or loss and presented net in the Statement of Profit and Loss within
other income in the period in which it arises.

Equity instruments

All equity instruments other than investments in subsidiaries and associates are measured at fair value.
Equity instruments which are for trading are classified as FVTPL. All other equity instruments are measured
at fair value through other comprehensive income (FVTOCI). The classification is made on initial
recognition and is irrevocable.

Where the Company''s management has elected to present fair value gains and losses on equity instruments
in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit
or loss. Dividends from such investments are recognized in profit and loss when the Company''s right to
receive payments is established.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the Statement of Profit and Loss.

Impairment of financial assets

The Company applies ''simplified approach'' for recognition of impairment loss on financial assets for loans,
deposits and trade receivables.

The application of simplified approach does not require the company to track changes in credit risk. Rather,
it recognizes impairment loss allowance based on lifetime Expected Credit Loss at each reporting date, right
from its initial recognition.

De-recognition

A financial asset is derecognized when:

(i) the rights to receive cash flows from the assets have expired or

(ii) the Company has transferred substantially all the risk and rewards of the asset, or

(iii) the Company has neither transferred nor retained substantially all the risk and rewards of the asset, but
has transferred control of the asset.

B. 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 cost.

Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the effective interest rate method.
For trade and other payables maturing within operating cycle, the carrying amounts approximate the fair
value due to short maturity of these instruments.

Loans and borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost
using Effective Interest Rate (EIR) method. Gain and losses are recognized in the Statement of Profit and
Loss when the liabilities are derecognized.

Amortised cost is calculated by taking into account any discount or premium on acquisition and transaction
costs. The EIR amortization is included as finance costs in the Statement of Profit and Loss.

De-recognition

The Company derecognizes financial liabilities when, and only when, the Company''s obligations are
discharged, cancelled or have expired. When an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are substantially modified,
such an exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognized in the Statement of Profit
and Loss.

Offsetting financial instruments

Financial assets and financial liabilities are offset and the net amount is reflected in the balance sheet when
there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net
basis, to realize the assets and settle the liabilities simultaneously.

13. Taxes :

The tax expense comprises current and deferred tax. Tax is recognized in the Statement of Profit and Loss except
to the extent that it relates to items recognized directly in equity or in OCI.

a) Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates
enacted or substantially enacted at the reporting date.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the
recognized amounts and there is an intention to settle the asset and the liability on a net basis.

b) Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities
for financial reporting purpose and the amount used for taxation purposes.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets
are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent
that it is probable that future taxable profits will be available against which those deductible temporary
differences can be utilised. The carrying amount of deferred tax asset is reviewed at each reporting date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the asset to be recovered.

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

Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off

assets against liabilities representing current tax and where the deferred tax assets and the deferred tax
liabilities relate to taxes on income levied by the same governing taxation laws.

14. Earnings per share :

The Company reports basic and diluted earnings per share (EPS) in accordance with IND AS-33 on earnings per
share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of
equity shares outstanding during the year. Diluted EPS is computed by dividing the net profit or loss for the year
by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all
dilutive potential equity shares, except where the results are anti-dilutive.

15. Cash and Cash Equivalents :

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

16. Current and non-current classification :

Assets and Liabilities in the balance sheet have been classified as either current or non-current. An asset has been
classified as current if (a) it is expected to be realized in, or is intended for sale or consumption in, the Company''s
normal operating cycle; or (b) it is held primarily for the purpose of being traded; or (c) it is expected to be
realized within twelve months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted
from being exchanged or used to settle a liability for at least twelve months after the reporting date. All other
assets have been classified as non-current. A liability has been classified as current when (a) it is expected to be
settled in the Company''s normal operating cycle;or (b) it is held primarily for the purpose of being traded; or (c) it
is due to be settled within twelve months after the reporting date; or (d) the Company does not have an
unconditional right to defer settlement of the liability for at least twelve months after the reporting date. All other
liabilities have been classified as non-current. Deferred tax assets and liabilities are classified as non-current
assets and liabilities. An operating cycle is the time between the acquisition of assets for processing and their
realization in cash or cash equivalents.

17. Impairment of Non-Financial Assets :

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired.
If any such indication exists, the Company estimates the recoverable amount of the asset. The recoverable amount
is the higher of an asset''s or cash generating unit''s (CGU) fair value less costs of disposal and its value in use.
Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an
asset and from its disposal at the end of its useful life. If such recoverable amount of the asset or cash generating
unit is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is
treated as an impairment loss and is recognized in the Statement of Profit and Loss. If at the Balance Sheet date
there is any indication that any impairment loss recognized for an asset in prior years may no longer exist or may
have decreased, the recoverable amount is reassessed and such reversal of impairment loss is recognized in the
Statement of Profit and Loss, to the extent the amount was previously charged to the Statement of Profit and Loss.

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Mar 31, 2024

B. Significant Accounting Policies

1. Basis of Preparation

The financial statements of the Company have been prepared in accordance with the Indian Accounting
Standards (IND AS) notified under Section 133 of the Companies Act, 2013 (“the Act”) [Companies (Indian
Accounting Standards) Rules, 2015] and other relevant provisions of the Act. The financial statements have been
prepared on the historical cost basis except for certain financial assets and liabilities, which are measured at fair
value.

The financial statements are presented in Indian Rupees (“INR”), which is also the company''s functional
currency and all values are rounded off to the nearest thousands, except when otherwise indicated.

Use of Estimates and Judgements

The preparation of the Company''s financial statements with IND AS requires management to make informed
judgements, reasonable assumptions and estimates that affect the amounts reported in the financial statements
and notes thereto. Uncertainty about these could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in the future periods. These assumptions and estimates are
reviewed periodically based on the most recently available information. Revisions to accounting estimates are
recognized prospectively in the Statement of Profit & Loss in the period in which the estimates are revised and in
any future periods affected.

In the assessment of the Company, the most significant effects of use of judgments and/or estimates on the
amounts recognized in the financial statements relate to the following areas:

• Fair value measurements for Financial instruments;

• Useful lives of property, plant & equipment;

• Estimation of net realizable value of inventories;

• Measurement ofrecoverable amounts ofassets / cash-generating units;

• Assets and obligations relating to employee benefits;

• Provisions and Contingencies.

• Provision for doubtful receivables.

• Use of Going Concern Assumption.

2. Revenue Recognition :

a. Revenue is recognized when the substantial risks and rewards of ownership is transferred to the buyer to the
extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably
measured, regardless of when the payment being made. The Company collects Goods and Service Tax
(GST) on behalf of the government and, therefore, it is not an economic benefit flowing to the Company.
Hence, it is excluded from revenue.

b. Interest income is recognized when it is probable that the economic benefits will flow to the Company and
the amount of income can be measured reliably. Interest income is accounted on accrual basis, using
effective interest rate method.

c. Dividend income from investments is recognized when the right to receive the dividend is established.

d. Revenue in respect of insurance / other claims are recognized only when it is reasonably certain that the
ultimate collection will be made.

3. Property, Plant and Equipment :

Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment, if
any. The cost of property, plant and equipment includes purchase price, including freight, duties, taxes and
expenses incidental to acquisition and installation. If significant parts of an item of property, plant and equipment
have different useful lives, then they are accounted for as separate items (major components) of property, plant
and equipment. Property, plant and equipment are derecognized from financial statements, either on disposal or
when no economic benefits are expected from its use or disposal. The gain or losses arising from disposal of
property, plant and equipment are recognized in the Statement of Profit and Loss in the year of occurrence.

Subsequent expenditures

Subsequent expenditures related to an item of property, plant and equipment are added to its carrying value only
when it is probable that the future economic benefits from the asset will flow to the Company and cost can be
reliably measured. All other repair and maintenance costs are recognized in the Statement of Profit and Loss
during the year in which they are incurred.

4. Depreciation and amortisation :

a. Depreciation on Fixed Assets is provided on straight line method based on the useful lives of the assets as
prescribed in Schedule II of the Companies Act, 2013.

b. Depreciation on addition / deletion is provided pro-rata basis with reference to the date of addition / deletion
as the case may be.

c. The details of estimated life for each category of assets are as under:

Free hold land is not depreciated

Lease hold land is amortised over the life of the lease.

Intangible Assets

Intangible assets are initially recognized at cost. Following initial recognition, intangible assets are carried at cost
less any accumulated amortization and accumulated impairment losses. The amortization period and the
amortization method for an intangible asset are reviewed at least at the end of each reporting period. Gains or
losses arising from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the
asset is derecognized. Intangible assets are amortized over its useful life of five years.

Impairment

The carrying amount of assets is reviewed at each Balance Sheet date if there is any indication of impairment
based on internal/external factors.

If the carrying amount of assets exceeds its estimated recoverable amount, an impairment loss is recognized in the
Statement of Profit & Loss to the extent the carrying amount exceeds recoverable amount.

5. Cash Flow Statements :

Cash flow statement is prepared in accordance with the indirect method prescribed under IND AS - 7 “Cash Flow
Statements” issued by the Institute of Chartered Accountants of India.

6. Foreign Currency Transactions :

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount
the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Foreign currency monetary items of the Company are translated at the closing exchange rates. Non-monetary
items that are measured at historical cost in a foreign currency, are translated using the exchange rate at the date of
the transaction. Non-monetary items that are measured at fair value in a foreign currency, are translated using the
exchange rates at the date when the fair value is measured. Exchange differences arising out of these translations
are recognized in the Statement of Profit and Loss.

7. Valuation of Inventories :

a. Raw Material and work in process are valued at cost (on “first in first out basis”) or net realisable value
whichever is lower. Raw material and work in process are not written down below cost if the finished
product in which they will be incorporated are expected at or above cost.

b. Stores & Spares are valued at cost ( on “first in first out basis” ).

c. Stocks in transit are valued at cost or market value whichever is lower.

d. Finished goods are valued at cost or net realizable value, whichever is lower.

e. Inventories of traded goods are valued at cost or net realizable value, whichever is lower.

8. Employee’s Benefits :

Short Term Employee Benefits :

All employee benefits falling due wholly within twelve months of rendering the service are classified as short
term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected
cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

Long Term Employee Benefits :

Defined Contribution Plan :

The company has Defined Contribution plans for post employment benefits namely Provident Fund. Under the
provident Fund Plan, the company contributes to a Government administered provident fund on behalf of its
employees.

The Company''s contributions to the above funds are charged to revenue every year.

Defined benefit plans:

The liability recognized in the balance sheet in respect of defined benefit plans is the present value of the defined
benefit obligation at the end of the reporting period. The defined benefits obligation is calculated annually by
actuaries using the projected unit credit method.

The Company operates defined benefit plan for Gratuity. The cost of providing such defined benefit is determined
using the projected unit credit method of actuarial valuation made at the end of the year.

Actuarial gains and losses are recognised in other comprehensive income for gratuity and recognised in the
Statement of Profit & Loss for leave encashment.

Remeasurement gain and losses arising from experience adjustments, changes in actuarial assumptions are
recognized in the period in which they occur, directly in other comprehensive income (OCI). They are included in
retained earnings in the statement of change in equity and in the balance sheet.

9. Borrowing Cost :

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily

takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the
respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of
interest and other costs that an entity incurs in connection with the borrowing of funds.

10. Segment Reporting :

The accounting policies adopted for segment reporting are in line with the accounting policies of the company.
Segment assets include all operating assets used by the business segments and consist principally of fixed assets,
debtors and inventories. Segment liabilities include the operating liabilities that result from the operating
activities of the business. Segment assets and liabilities that cannot be allocated between the segments are shown
as part of unallocated assets and liabilities respectively. Income / Expenses relating to the enterprise as a whole
and not allocable on a reasonable basis to business segments are reflected as unallocated income / expenses.

11. Fair value measurement :

The Company''s accounting policies and disclosures require the measurement of fair values for financial assets
and liabilities.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.

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.

• Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

• Level 2- Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

• Level 3- Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.

12. Financial Instruments:

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity. Financial assets and financial liabilities are recognized when the Company
becomes a party to the contractual provisions of the instruments.

A. Financial Assets :

Initial recognition and measurement

The Company recognizes financial assets when it becomes a party to the contractual provisions of the
instrument. All financial assets are recognized initially at fair value plus transaction costs that are directly
attributable to the acquisition of the financial asset.

Subsequent measurement

For the purpose of subsequent measurement, the financial assets are classified as under:

Financial assets at amortised cost

A financial asset is measured at the amortised cost, if both the following conditions are met:

(i) The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and

(ii) 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 amortised cost using the
effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium and fees or costs that are an integral part of the EIR. Interest income from these financial assets is

included in other income using the EIR in the Statement of Profit and Loss. The losses arising from
impairment are recognized in the Statement of Profit and Loss.

Financial assets at fair value through other comprehensive income (FVTOCI)

Financial assets are classified as FVTOCI, if both of the following criteria are met:

(i) These assets are held within a business model whose objective is achieved both by collecting
contractual cash flows and selling the financial assets; and

(ii) 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.

Fair value movements are recognised in the other comprehensive income (OCI), except for the recognition
of impairment gains or losses, interest income and foreign exchange gains or losses which are recognised in
profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised
in OCI is reclassified from equity to Profit or Loss and recognised in other income/(loss).

Financial assets at fair value through profit or loss (FVTPL)

Financial assets that do not meet the criteria for amortized cost or FVTOCI are measured at fair value
through profit or loss. A gain or loss on a instrument that is subsequently measured at fair value through
profit or loss and is recognized in profit or loss and presented net in the Statement of Profit and Loss within
other income in the period in which it arises.

Equity instruments

All equity instruments other than investments in subsidiaries and associates are measured at fair value.
Equity instruments which are for trading are classified as FVTPL. All other equity instruments are measured
at fair value through other comprehensive income (FVTOCI). The classification is made on initial
recognition and is irrevocable.

Where the Company''s management has elected to present fair value gains and losses on equity instruments
in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit
or loss. Dividends from such investments are recognized in profit and loss when the Company''s right to
receive payments is established.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the Statement of Profit and Loss.

Impairment of financial assets

The Company applies ''simplified approach'' for recognition of impairment loss on financial assets for loans,
deposits and trade receivables.

The application of simplified approach does not require the company to track changes in credit risk. Rather,
it recognizes impairment loss allowance based on lifetime Expected Credit Loss at each reporting date, right
from its initial recognition.

De-recognition

A financial asset is derecognized when:

(i) the rights to receive cash flows from the assets have expired or

(ii) the Company has transferred substantially all the risk and rewards ofthe asset, or

(iii) the Company has neither transferred nor retained substantially all the risk and rewards of the asset, but
has transferred control ofthe asset.

B. 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 cost.

Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the effective interest rate method.
For trade and other payables maturing within operating cycle, the carrying amounts approximate the fair
value due to short maturity of these instruments.

Loans and borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost
using Effective Interest Rate (EIR) method. Gain and losses are recognized in the Statement of Profit and
Loss when the liabilities are derecognized.

Amortised cost is calculated by taking into account any discount or premium on acquisition and transaction
costs. The EIR amortization is included as finance costs in the Statement of Profit and Loss.

De-recognition

The Company derecognizes financial liabilities when, and only when, the Company''s obligations are
discharged, cancelled or have expired. When an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are substantially modified,
such an exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognized in the Statement of Profit
and Loss.

Offsetting financial instruments

Financial assets and financial liabilities are offset and the net amount is reflected in the balance sheet when
there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net
basis, to realize the assets and settle the liabilities simultaneously.

13. Taxes :

The tax expense comprises current and deferred tax. Tax is recognized in the Statement of Profit and Loss except
to the extent that it relates to items recognized directly in equity or in OCI.

a) Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates
enacted or substantially enacted at the reporting date.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the
recognized amounts and there is an intention to settle the asset and the liability on a net basis.

b) Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities
for financial reporting purpose and the amount used for taxation purposes.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets
are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent
that it is probable that future taxable profits will be available against which those deductible temporary
differences can be utilised. The carrying amount of deferred tax asset is reviewed at each reporting date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the asset to be recovered.

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

Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off
assets against liabilities representing current tax and where the deferred tax assets and the deferred tax
liabilities relate to taxes on income levied by the same governing taxation laws.

14. Earnings per share :

The Company reports basic and diluted earnings per share (EPS) in accordance with IND AS-33 on earnings per
share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of
equity shares outstanding during the year. Diluted EPS is computed by dividing the net profit or loss for the year
by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all
dilutive potential equity shares, except where the results are anti-dilutive.

15. Cash and Cash Equivalents :

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

16. Current and non-current classification :

Assets and Liabilities in the balance sheet have been classified as either current or non-current. An asset has been
classified as current if (a) it is expected to be realized in, or is intended for sale or consumption in, the Company''s
normal operating cycle; or (b) it is held primarily for the purpose of being traded; or (c) it is expected to be
realized within twelve months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted
from being exchanged or used to settle a liability for at least twelve months after the reporting date. All other
assets have been classified as non-current. A liability has been classified as current when (a) it is expected to be
settled in the Company''s normal operating cycle;or (b) it is held primarily for the purpose of being traded; or (c) it
is due to be settled within twelve months after the reporting date; or (d) the Company does not have an
unconditional right to defer settlement of the liability for at least twelve months after the reporting date. All other
liabilities have been classified as non-current. Deferred tax assets and liabilities are classified as non-current
assets and liabilities. An operating cycle is the time between the acquisition of assets for processing and their
realization in cash or cash equivalents.

17. Impairment of Non-Financial Assets :

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired.
If any such indication exists, the Company estimates the recoverable amount of the asset. The recoverable amount
is the higher of an asset''s or cash generating unit''s (CGU) fair value less costs of disposal and its value in use.
Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an
asset and from its disposal at the end of its useful life. If such recoverable amount of the asset or cash generating
unit is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is
treated as an impairment loss and is recognized in the Statement of Profit and Loss. If at the Balance Sheet date
there is any indication that any impairment loss recognized for an asset in prior years may no longer exist or may
have decreased, the recoverable amount is reassessed and such reversal of impairment loss is recognized in the
Statement of Profit and Loss, to the extent the amount was previously charged to the Statement of Profit and Loss.

---

Mar 31, 2015

1. Basis of Accounting :

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. The financial statements have been prepared under the historical cost convention on an accrual basis.

Use of Estimates :

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

2. Accounting for Construction Division :

Revenue from sale of properties under construction is recognized on the basis of actual bookings done (provided the significant risk and rewards have been transferred to the buyer and there is reasonable certainty of realization of proceeds) proportionate to the percentage of physical completion of construction / development work certified by the Architect.

3. Revenue Recognition :

a. Revenue is recognized when the substantial risks and rewards of ownership is transferred to the buyer on dispatch of goods.

b. Interest income is recognized on time proportionate basis.

c. Dividend income from investments is recognized when the right to receive the dividend is established.

d. Claims and damages are accounted as and when they are finalized.

4. Fixed Assets :

All Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment losses if any. The cost of fixed assets includes taxes and duties (other than those subsequently recoverable from respective authorities), freight and other incidental expenses related to acquisition and installation of respective assets.

5. Depreciation :

a. Depreciation on Fixed Assets is provided using straight line method based on the useful lives of the assets as prescribed in Schedule II of the Companies Act, 2013.

b. Depreciation on addition / deletion is provided pro-rata basis with reference to the date of addition / deletion as the case may be.

c Individual assets acquired for less than Rs. 5,000/- are depreciated fully in the year of acquisition.

d. Leasehold land is amortized on a straight line basis over the period of lease.

6. Impairment of Assets :

a. The carrying amounts of assets are reviewed by the management at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of assets exceeds its recoverable amount. The recoverable amount is greater of asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

b. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending upon changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

7. Excise Duty :

Excise duty, if applicable, has been accounted on the basis of payment made in respect of finished goods cleared.

8. Foreign Currency Transactions :

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. The gain or loss arising out of settlement / translation of the assets and the liabilities at the closing rates due to exchange fluctuations is recognized as income / expenditure in the statement of profit and loss.

9. Investments :

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments.

Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

10. Valuation of Inventories :

a. Raw Material and Stores & Spares are valued at cost ( on "first in first out basis" ) or market value whichever is lower.

b. Stocks in transit are valued at cost or market value whichever is lower.

c. Finished goods are valued at cost or net realizable value, whichever is lower.

d. Inventories of traded goods are valued at cost or net realizable value, whichever is lower.

11. Employee's Benefits :

Short Term Employee Benefits :

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

Long Term Employee Benefits :

a. Defined Contribution Plan :

The company has Defined Contribution plans for post employment benefits namely Provident Fund. Under the provident Fund Plan, the company contributes to a Government administered provident fund on behalf of its employees.

The Company's contributions to the above funds are charged to revenue every year.

b. Defined Benefit Plans :

The Company's liabilities towards gratuity and leave encashment are determined using the projected unit credit method as at the balance sheet date. Actuarial gains / losses are recognized immediately in the profit and loss account. Long term compensated absences are provided for based on actuarial valuations.

12. Borrowing Cost :

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

13. Segment Reporting :

The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Segment assets include all operating assets used by the business segments and consist principally of fixed assets, debtors and inventories. Segment liabilities include the operating liabilities that result from the operating activities of the business. Segment assets and liabilities that cannot be allocated between the segments are shown as part of unallocated assets and liabilities respectively. Income / Expenses relating to the enterprise as a whole and not allocable on a reasonable basis to business segments are reflected as unallocated income / expenses.

14. Earning per Share (EPS) :

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year .

15. Provision for Current and Deferred Tax :

a. Provision for the current tax is made after taking into considering benefits admissible under the provisions of the Income Tax Act, 1961.

b. Deferred Tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future. Deferred tax assets are reviewed at each balance sheet date and is written down or written up to reflect the amount that is reasonably or virtually certain, as the case may be, to be realized.

16. Provisions :

A provision is recognized when the company has a present obligation as a result of past events and it is probable that there will be an outflow of resources to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

17. Contingent Liabilities :

Contingent liabilities, if any are disclosed in the notes on accounts. Provision is made in the accounts in respect of those contingencies which are likely to materialize into liabilities after the year end till the approval of the accounts by the board of directors and which have material effect on the position stated in the balance sheet.

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Mar 31, 2014

1. Basis of Accounting

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

2. Accounting for Construction Division

Revenue from sale of properties under construction is recognized on the basis of actual bookings done (provided the significant risk and rewards have been transferred to the buyer and there is reasonable certainty of realization of proceeds) proportionate to the percentage of physical completion of construction / development work certified by the Architect.

3. Revenue Recognition

a. Revenue is recognized when the substantial risks and rewards of ownership is transferred to the buyer on dispatch of goods.

b. Interest income is recognized on time proportionate basis.

c. Dividend income from investments is recognized when the right to receive the dividend is established.

d. Claims and damages are accounted as and when they are finalized.

4. Fixed Assets

All Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment losses if any. The cost of fixed assets includes taxes and duties (other than those subsequently recoverable from respective authorities), freight and other incidental expenses related to acquisition and installation of respective assets.

5. Depreciation

a. Depreciation on Fixed Assets is provided on Straight Line Method based on the useful life of the assets estimated by the management which is as per the rate prescribed in Schedule XIV of the Companies Act, 1956.

b. Depreciation on addition / deletion is provided pro-rata basis with reference to the date of addition / deletion as the case may be.

c Individual assets acquired for less than Rs. 5,000/- are depreciated fully in the year of acquisition.

6. Impairment of Assets

a. The carrying amounts of assets are reviewed by the management at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of assets exceeds its recoverable amount. The recoverable amount is greater of asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to there present value at the weighted average cost of capital.

b. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending upon changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

7. Excise Duty

Excise duty, if applicable, has been accounted on the basis of payment made in respect of finished goods cleared. No provision is made for the finished good lying in bonded warehouse.

8. Foreign Currency Transactions

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

The gain or loss arising out of settlement / translation of the assets and the liabilities at the closing rates due to exchange fluctuations is recognized as income / expenditure in the profit and loss account.

9. Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments.

Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

10. Valuation of Inventories

a. Raw Material and Stores & Spares are valued at cost (on "first in first out basis") or market value whichever is lower.

b. Stocks in transit are valued at cost or market value whichever is lower.

c. Finished goods are valued at cost or net realizable value, whichever is lower.

d. Inventories of traded goods are valued at cost.

11. Employee''s Benefits

Long Term Employee Benefits

a. Defined Contribution Plan

The company has Defined Contribution plans for post employment benefits namely Provident Fund. Under the provident Fund Plan, the company contributes to a Government administered provident fund on behalf of its employees.

The Company''s contributions to the above funds are charged to revenue every year.

b. Defined Benefit Plans

The Company''s liabilities towards gratuity and leave encashment are determined using the projected unit credit method as at the balance sheet date. Actuarial gains / losses are recognized immediately in the profit and loss account. Long term compensated absences are provided for based on actuarial valuations.

12. Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

13. Segment Reporting

The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Segment assets include all operating assets used by the business segments and consist principally of fixed assets, debtors and inventories. Segment liabilities include the operating liabilities that result from the operating activities of the business. Segment assets and liabilities that cannot be allocated between the segments are shown as part of unallocated assets and liabilities respectively. Income / Expenses relating to the enterprise as a whole and not allocable on a reasonable basis to business segments are reflected as unallocated income / expenses.

14. Earning per Share (EPS)

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year .

15. Provision for Current and Deferred Tax

a. Provision for the current tax is made after taking into considering benefits admissible under the provisions of the Income Tax Act, 1961.

b. Deferred Tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future. Deferred tax assets are reviewed at each balance sheet date and is written down or written up to reflect the amount that is reasonably or virtually certain, as the case may be, to be realized.

16. Provisions

A provision is recognized when the company has a present obligation as a result of past events and it is probable that there will be an outflow of resources to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

17. Contingent Liabilities

Contingent liabilities, if any are disclosed in the notes on accounts. Provision is made in the accounts in respect of those contingencies which are likely to materialize into liabilities after the year end till the approval of the accounts by the board of directors and which have material effect on the position stated in the balance sheet.

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Mar 31, 2012

1. Basis of Accounting :

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis.

Use of Estimates :

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period.Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

2. Accounting for Construction Division :

Revenue from sale of properties under construction is recognized on the basis of actual bookings done (provided the significant risk and rewards have been transferred to the buyer and there is reasonable certainty of realization of proceeds) proportionate to the percentage of physical completion of construction / development work certified by the Architect.

3. Revenue Recognition :

a) Revenue is recognized when the substantial risks and rewards of ownership is transferred to the buyer on dispatch of goods.

b) Interest income is recognized on time proportionate basis.

c) Dividend income from investments is recognized when the right to receive the dividend is established.

d) Claims and damages are accounted as and when they are finalized.

4. Fixed Assets :

All Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment losses if any. The cost of fixed assets includes taxes and duties (other than those subsequently recoverable from respective authorities), freight and other incidental expenses related to acquisition and installation of respective assets.

5. Depreciation:

a. Depreciation on Fixed Assets is provided on Straight Line Method based on the useful life of the assets estimated by the management which is as per the rate prescribed in Schedule XIV of the Companies Act, 1956.

b. Depreciation on addition / deletion is provided pro-rata basis with reference to the date of addition / deletion as the case may be.

c Individual assets acquired for less than Rs. 5000/- are depreciated fully in the year of acquisition.

6. Impairment of Assets :

a. The carrying amounts of assets are reviewed by the management at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of assets exceeds its recoverable amount. The recoverable amount is greater of asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to there present value at the weighted average cost of capital.

b. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending upon changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

7. Excise Duty :

Excise duty, if applicable, has been accounted on the basis of payment made in respect of finished goods cleared. No provision is made for the finished good lying in bonded warehouse.

8. Foreign Currency Transactions :

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

The gain or loss arising out of settlement / translation of the assets and the liabilities at the closing rates due to exchange fluctuations is recognized as income / expenditure in the profit and loss account.

9. Investments :

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments.

Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

10. Valuation of Inventories :

a. Raw Material and Stores & Spares are valued at cost ( on "first in first out basis" ) or market value whichever is lower.

b. Stocks in transit are valued at cost or market value whichever is lower.

c. Finished goods are valued at cost or net realizable value, whichever is lower.

11. Employee's Benefits :

Long Term Employee Benefits :

a. Defined Contribution Plan :

The company has Defined Contribution plans for post employment benefits namely Provident Fund. Under the provident Fund Plan, the company contributes to a Government administered provident fund on behalf of its employees.

The Company's contributions to the above funds are charged to revenue every year.

b. Defined Benefit Plans :

The Company's liabilities towards gratuity and leave encashment are determined using the projected unit credit method as at the balance sheet date. Actuarial gains / losses are recognized immediately in the profit and loss account. Long term compensated absences are provided for based on actuarial valuations.

12. Borrowing Cost :

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

13. Segment Reporting :

The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Segment assets include all operating assets used by the business segments and consist principally of fixed assets, debtors and inventories. Segment liabilities include the operating liabilities that result from the operating activities of the business. Segment assets and liabilities that cannot be allocated between the segments are shown as part of unallocated assets and liabilities respectively. Income / Expenses relating to the enterprise as a whole and not allocable on a reasonable basis to business segments are reflected as unallocated income / expenses.

14. Earning per Share (EPS) :

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year.

15. Provision for Current and Deferred Tax :

a. Provision for the current tax is made after taking into considering benefits admissible under the provisions of the Income Tax Act, 1961.

b. Deferred Tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future. Deferred tax assets are reviewed at each balance sheet date and is written down or written up to reflect the amount that is reasonably or virtually certain, as the case may be, to be realized.

16. Provisions :

A provision is recognized when the company has a present obligation as a result of past events and it is probable that there will be an outflow of resources to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

17. Contingent Liabilities :

Contingent liabilities, if any are disclosed in the notes on accounts. Provision is made in the accounts in respect of those contingencies which are likely to materialize into liabilities after the year end till the approval of the accounts by the board of directors and which have material effect on the position stated in the balance sheet.

---

Mar 31, 2010

1. Basis of Accounting.:

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2KJ6, (as amended) and the relevant provisions of the Companies Act. 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from these estimates.

2. Accounting for Construction Division :

Revenue from sale of properties under construction is recognized on the basis of actual bookings done (.provided the significant risk and rewards have been transferred to the buyer and there is reasonable certainty of realization of proceeds) proportionate to the percentage of physical completion of construction /development work certified by the Architect.

3. Revenue Recognition:

a. Revenue is recognized when the substantial risks and rewards of ownership is transferred to the buyer on dispatch of goods.

b. Interest income is recognized on time proportionate basis.

c. Dividend income from investments is recognized when the right to receive the dividend is established .

d. Claims and damages are accounted as and when they are finalized.

4. Fixed Assets:

All Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment losses if any. The cost of fixed assets includes taxes and duties (other than those subsequently recoverable from respective authorities). freight and other incidental expenses related to acquisition and installation of respective assets.

5. Depreciation:

a. Depreciation on Fixed Assets is provided on Straight Line Method based on the useful life of the assets estimated by the management which is as per the rate prescribed in Schedule XIV of the Comparries Act, 19.56.

b. Depreciation on addition / deletion is provided pro-rata basis with reference to the date of addition / deletion as the case may be.

c Individual assets acquired for less than Rs. 5000/- are depreciated fully in the year of acquisition.

6. Impairment of Assets :

a. The carrying amounts of assets are reviewed by the management at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of assets exceeds its recoverable amount. The recoverable amount is greater of assets net selling price and value in use. In assessing value in use. the estimated future cash Hows are discounted to there present value at the weighted average cost of capital.

b. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending upon changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was rib impairment.

7. Excise Duty :

Excise duty, if applicable, has been accounted on the basis of payment made in respect of finished goods cleared. No provision is made for the finished good lying in bonded warehouse.

8. Foreign Currency Transactions :

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

The gain or loss arising out of settlement / translation of the assets and the liabilities at the closing rates due to exchange fluctuations is recognized as income / expenditure in the profit and loss account.

9. Investments:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments.

Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

10. Valuation of Inventories :

a. Raw Material and Stores & Spares are valued at cost (on "first in first out basis" ) or market value whichever is lower.

b. Slocks in transit are valued at cost or market value whichever is lower.

c. Finished goods are valued at cost or net realizable value, whichever is lower.

11. Employees Benefits:

Long Term Employee Benefits :.

a. Defined Contribution Plan :

The company has Defined Contribution plans for post employment benefits namely Provident Fund. Under the provident Fund Plan, the company contributes to a Government administered provident fund on behalf of its employees.

The Companys contributions to the above funds are charged to revenue every year.

b. Defined Benefit Plans :

The Companys liabilities towards gratuity and leave encashment are determined using the projected unit credit method as at the balance sheet date. Actuarial gains / losses are recognized immediately in the profit and loss account. Long term compensated absences are provided for based on actuarial valuations.

12. Borrowing Cost:

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respecti ve asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

13. Segment Reporting:

The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Segment assets include all operating assets used by the business segments and consist principally of fixed assets. debtors and inventories. Segment liabilities include the operating liabilities that result from the operating activities of the business. Segment assets and liabilities that cannot be allocated between the segments are shown as part of unallocated assets and liabilities respectively. Income / Expenses relating to the enterprise as a whole and not allocable on a reasonable basis to business segments are reflected as unallocated income / expenses.

14. Earning per Share (EPS):

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year.

15 Provision for Current and Deferred Tax:

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. Deferred income taxes reflects the, impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current lax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred lax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has ¦ unubsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, thai sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

16. Provisions:

A provision is recognized when the company has a present obligation as a result of past events and it is probable that there will be an outflow of resources to settle the obligation, in respect of which a reliable estimate can be made/Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet dale and adjusted to reflect the current best estimates.

17. Contingent Liabilities :

Contingent liabilities, if any are disclosed in the notes on accounts. Provision is made in the accounts in respect of those contingencies which are likely to materialize into liabilities after the year end till the approval of the accounts by the board of directors and which have material effect on the position stated in the balance sheet. B.