Accounting Policies of Rama Steel Tubes Ltd. Company

Mar 31, 2025

Note 2: Significant accounting policies

The significant accounting policies applied by the Company in
the preparation of its financial statements are listed below. Such
accounting policies have been applied consistently to all the
periods presented in these financial statements.

(i) Statement of compliance

The financial statements are prepared and presented
in accordance with indian Accounting standards (ind
As) notified under the Companies (indian Accounting
standards) Rules 2015, as amended from time to time as
notified under section 133 of the Companies Act 2013, the
relevant provision of the Companies Act 2013 ("the Act”) and
other accounting principles generally accepted in india.

(ii) Basis of preparation

The standalone financial statements have been prepared
in confirmity with indian Accounting standards (ind As)
prescribed under section 133 of the Companies Act, 2013
read with the Companies (indian Accounting standards)
Rules, 2015 as amended

The financial statements have been prepared on accrual
basis under the historical cost basis except for certain
financial instruments which are measured at fair value at
the end of each reporting period.

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

these financial statements is determined on such a basis,
except for leasing transactions that are within the scope of
ind As 116, and measurements that have some similarities to
fair value but are not fair value, such as net realizable value
in ind As 2 or value in use in ind As 36.

in addition, for financial reporting purposes, fair value
measurements are categorised into Level 1, 2, or 3
based on the degree to which the inputs to the fair value
measurements are observable and the significance of the
inputs to the fair value measurement in its entirety, which
are described as follows:

Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the entity can
access at the measurement date;

level 2 inputs are inputs, other than quoted prices included
within Level 1, that are observable for the asset or liability
either directly or indirectly; and

level 3 inputs are unobservable inputs for the asset or
liability.

(iii) Use of estimates and critical accounting judgements

I n preparation of the financial statements, the Company
makes judgements, estimates and assumptions about
the carrying values of assets and liabilities that are not
readily apparent from other sources. The estimates and the
associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual
results may differ from these estimates.

The estimates and the underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and
future periods affected.

The following are the critical judgements, apart from those
involving estimations that the directors have made in the
process of applying the Company''s accounting policies
and that have the most significant effect on the amounts
recognised in the standalone financial statements.

Deferred Income tax assets and liabilities

significant management judgement is required to determine
the amount of deferred tax assets that can be recognised,
based upon the likely timing and the level of future taxable
profits.

The amount of total deferred tax assets could change
if estimates of projected future taxable income or if tax
regulations udergo a change.

Income Taxes

Deferred tax assets are recognised to the extent that it is
regarded as probable that deductible temporary differences
can be realized. The Company estimates deferred tax assets
and liabilities based on current tax laws and rates and in
certain cases, business plans, including management''s
expectations regarding the manner and timing of recovery
of the related assets. Changes in these estimates may
affect the amount of deferred tax liabilities or the valuation
of deferred tax assets and thereby the tax charge in the
standalone statement of Profit or Loss.

Provision for tax liabilities require judgements on the
interpretation of tax legislation, developments in case law
and the potential outcomes of tax audits and appeals which
may be subject to significant uncertainty.

Therefore, the actual results may vary from expectations
resulting in adjustments to provisions, the valuation of
deferred tax assets, cash tax settlements and therefore the
tax charge in the standalone statement of Profit or Loss.

Useful lives of Property, plant and equipment (‘PPE'')

The Company reviews the estimated useful lives and
residual value of PPE at the end of each reporting period.
The factors such as changes in the expected level of usage,
technological developments and product life-cycle, could
significantly impact the economic useful lives and the
residual values of these assets. Consequently, the future
depreciation charge could be revised and thereby could
have an impact on the profit of the future years.

Defined benefit plans

The cost of the defined benefit plans and the present
value of the defined benefit obligation (''DBO'') are based on
actuarial valuation using the projected unit credit method.
An actuarial valuation involves making various assumptions
that may differ from actual developments in the future.
These include the determination of the discount rate, future
salary increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed at each
reporting date.

Fair value measurement of derivative and other financial
instruments

The fair value of financial instruments, that are not traded
in an active market, is determined by using valuation

techniques. This involves significant judgements in selection
of a method in making assumptions that are mainly based
on market conditions existing at the Balance sheet date and
in identifying the most appropriate estimate of fair value
when a wide range of fair value measurements are possible.

(iv) Basis of Measurement

These standalone financial statements have been prepared
under the historical cost except for the following assets
and liabilities which have been measured at fair value:
. The standalone financial statements are presented in
indian Rupees (''), which is the Company''s functional and
presentation currency and all amounts are rounded to the
nearest Lakh and two decimals thereof, except as stated
otherwise.

(v) Property, Plant and Equipment (PPE) and Capital Works in
Progess

Freehold land is carried at historical cost. All other items
of property, plant and equipment are stated at historical
cost less depreciation and impairment if any. Historical
cost includes expenditure that is directly attributable to the
acquisition of the items.

Cost is inclusive of inward freight, duties and taxes and
incidental expenses related to acquisition or construction.
All upgradation / enhancements are charged off as revenue
expenditure unless they bring similar significant additional
benefits. An item of property, plant and equipment is
derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of
asset. Any gain or loss arising on the disposal or retirement
of an item of property, plant and equipment is determined as
the difference between the sales proceeds and the carrying
amount of the asset and is recognised in the statement of
profit and loss

subsequent costs are included in the asset''s carrying
amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits
associated with the item will flow to the Company and
the cost of the item can be measured reliably. The carrying
amount of any component accounted for as a separate
asset is derecognised when replaced. All other repairs and
maintenance are charged to statement of Profit or Loss
during the reporting period in which they are incurred.

Projects under which tangible property, plant and equipment
are not yet ready for their intended use are carried at cost,

comprising direct cost, related incidental expenses and
attributable interest.

Machinery spares which can be used only in connection
with an item of fixed asset and whose use is expected to be
irregular are capitalised and depreciated over the useful life
of 3 years.

Property, plant and equipment acquired in business
combination are recognised at fair value at the acquisition
date. subsequent costs are included in the assets carrying
value or recognised as a separate assets as appropriate only
when it is possible that future economic benefit associated
with the item will flow to the Company.

Projects under which tangible fixed assets are not yet ready
for their intended use are carried at cost, comprising direct
cost, related incidental expenses and attributable interest.

(vi) Depreciation and Amortisation

(a) Depreciation on the property plant and equipment is
provided over the useful life of assets which is coincide
with the life specified in schedule ii to the Companies
Act, 2013 except in the case of the certain categories
of assets, in whose case the life of the assets has
been assessed as under based on techinical advice,
taking into account the nature of the asset, the
estimated usage of the asset, the operating conditions
of the asset, past history of replacement, anticipated
technological changes,manufacturers warranties and
maintenance support etc. The range of useful lives of
the Property,Plant and Equipment are as follows:

The depreciation is provided based on the useful life of
assets specified in schedule ii to the Companies Act,
2013 on straight line method. The useful lives of assets
as mentioned above is on their single shift basis, if an
asset is used for any time during the year for double
shift, the depreciation will increase by 50% for that
period and in case of triple shift the depreciation shall
be calculated on the basis of 100%for that period.

(b) Property, plant and equipment (PPE) which are added/
disposed- of during the year, depreciation is provided
on pro-rata basis from (up- to) the date on which the
PPE is available for use (disposed-of).

(c) Assets residual values and useful lives are reviewed
at each financial year end considering the physical
condition of the assets and benchmarking analysis or
whenever there are indicators for review of residual
value and useful life adjusted prospectively, if
appropriate. Freehold land is not depreciated. Lease
hold land is amortised over the period of lease.

(d) Free-hold land are not subject to amortisation.

(vii) Intangible Assets

intangible assets acquired separately are measured on
initial recognition at historical cost. intangibles assets have
a finite life and are subsequently carried at cost less any
accumulated amortization and accumulated impairment
losses if any.

i ntangible assets with finite lives are amortized over the
useful life and assessed for impairment whenever there
is an indication that the intangible asset may be impaired.
The amortization period and the amortization method for an
intangible asset with a finite useful life are reviewed at least
at the end of each reporting period.

Changes in the expected useful life or the expected pattern
of consumption of future economic benefits embodied in
the asset are considered to modify the amortization period
or method, as appropriate, and are treated as changes
in accounting estimates. The amortization expense on
intangible assets with finite lives is recognized in the
statement of profit and loss unless such expenditure forms
part of carrying value of another asset.

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 or loss when the
asset is derecognized.

(viii) Investment Property

Property that is held for long-term rental yields or for
capital appreciation or both, and that is not occupied by the
Company is classified as investment property

Recognition: investment property is recognised as an
asset when and only when, (a) it is probable that the future
economic benefits that are associated with the investment
property will flow to the company (b) the cost of the
investment property can be measured reliably.

Initial Measurement:

(i) investment property is initially recognised at cost
comprising the purchase price and directly attributable
transaction costs (e.g. legal services, transfer services)

(ii) The cost of a purchased investment property comprises
its purchase price and any directly attributable
expenditure. Directly attributable expenditure
includes, for example, professional fees for legal
services, property transfer taxes and other transaction
costs.

(iii) The cost of an investment property is not increased by:

(a) start-up costs (unless they are necessary to bring
the property to the condition necessary for it to
be capable of operating in the manner intended
by the management

(b) operating losses incurred before the investment
property achieves the planned level of occupancy,
or

(c) abnormal amounts of wasted material, labour
or other resources incurred in constructing or
developing the property.

(iv) if payment for an investment property is deferred,
its cost is the cash price equivalent. The difference
between this amount and the total payments is
recognised as interest expense over the period of
credit.

(v) The fair value of an asset for which comparable market
transactions do not exist is reliably measurable if (a)
the variability in the range of reasonable fair value
estimates is not significant for that asset or (b) the
probabilities of the various estimates within the range
can be reasonably assessed and used in estimating
fair value. if the entity is able to determine reliably
the fair value of either the asset received or the asset

given up, then the fair value of the asset given up is
used to measure cost unless the fair value of the asset
received is more clearly evident.

Subsequent Measurement:

(a) subsequently investment property is carried at cost
model, which is cost less accumulated depreciation
and any accumulated impairment losses.

(b) subsequent expenditures on investment property are
capitalised when it is probable that economic benefits
in excess of the original standards flow to the company,
otherwise it is charged to P&L.

Fair Value Measurement:

The fair value of an investment property is being measured
on a continuing basis. However ,in exceptional cases, there is
clear evidence when the company first acquires an investment
property (or when an existing property first becomes
investment property after a change in use) that the fair value
of the investment property is not reliably measureable on a
continuing basis. This arises when ,and only when, the market
for comparable properties is inactive and alternative reliable
measurements of fair value are not available.

Disposasls:

investment property is derecognised (eliminated from
Balance sheet) on disposal or when the investment
property is permanently withdrawn from use and no future
economic benefits are expected from its disposal. Gains or
losses arising from the retirement or disposal of investment
property is determined as the difference between the net
disposal proceeds and the carrying amount of the asset and
is recognised in profit or loss in the period of the retirement
or disposal.

depreciation or Amortisation:

i Depreciation on the investment property is provided
over the useful life of assets which is coincide with the
life specified in schedule ii to the Companies Act, 2013.
The range of useful lives of the investment property
are as follows:

The depreciation is provided based on the useful life of
assets specified in Schedule ii to the Companies Act,
2013 on straight line method.

ii I nvestment property which are added/ disposed- of
during the year, depreciation is provided on pro-rata
basis from (up- to) the date on which the investment
property is available for use (disposed-of).

iii Assets residual values and useful lives are reviewed
at each financial year end considering the physical
condition of the assets and benchmarking analysis or
whenever there are indicators for review of residual
value and useful life adjusted prospectively, if
appropriate. Freehold land is not depreciated. Lease
hold land is amortised over the period of lease.

iv Free-hold land are not subject to amortisation.

(ix) Goodwill

The excess of cost to the company of its investments
in the subsidiary companies over its share of equity of
the subsidiary companies , at the dates on which the
investments in the subsidiary companies were made, is
recognised as ''Goodwill'' being an asset in the financial
statements and is tested for impairment on annual basis
as required by ind AS 36 impairment of assets. On the
other hand, where the share of equity in the subsidiary
companies as on the date of investment is in excess of cost
of investments of the company, it is recognised as ''Capital
Reserve'' and shown under the head ''Reserves & Surplus'',
in the financial statements. The ''Goodwill'' is determined
separately for each subsidiary Company and such amounts
are not set off between different entities.

(x) Cash and cash equivalents

For the purpose of presentation in the Statement of Cash
Flows, cash and cash equivalents includes cash on hand, other
short-term, highly liquid investments with original maturities
of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk
of changes in value, and bank overdrafts. Bank overdrafts are
shown within borrowings in current liabilities in the Balance
Sheet.

Cash flows are reported using the indirect method, whereby
net profit before tax is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or
future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company
are segregated based on the available information.

Short term borrowings, repayments and advances having
maturity of three months or less, are shown as net in cash
flow statement.

(xi) Inventories Raw material, work in progress, stores, traded
and finished goods

inventories are valued at the lower of cost (First in First Out
- FiFO basis) and the net realisable value after providing
for obsolescence and other losses, where considered
necessary. Cost includes cost of purchase, all charges in
bringing the goods to the point of sale, including indirect
levies, transit insurance and receiving charges. Finished
goods include appropriate proportion of overheads and,
where applicable.

Cost of inventories also include all other costs incurred
in bringing the inventories to their present location and
condition.

Rejection and scrap

Rejection and scrap are valued at net realisable value.

Net realisable value is the estimated selling price in the
ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the
sale.

(xii) Employee benefits

Employee benefits include provident fund, employee state
insurance scheme, gratuity, compensated absences and
performance incentives.

(i) Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in
which the employees render the related service are
recognised in respect of employees'' services up to
the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current
employee benefit obligations in the Balance Sheet.

The cost of short-term compensated absences is
accounted as under:

(a) in case of accumulated compensated absences,
when employees render the services that
increase their entitlement of future compensated
absences; and

(b) in case of non-accumulating compensated
absences, when the absences occur.

(ii) Other long-term employee benefit obligations

Provisions for other long term employee benefits-
compensated absences, a defined benefit scheme, is
made on the basis of actuarial valuation at the end of
each financial year and are charged to the statement
of profit and loss. All actuarial gains or losses are
recognised immediately in the statement of profit and
loss.

The obligations are presented as current liabilities
in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least
twelve months after the reporting period, regardless
of when the actual settlement is expected to occur.

(iii) Post-employment obligations

Defined contribution plans: The Company''s
contribution to provident fund are considered as
defined contribution plans and are charged as an
expense based on the amount of contribution required
to be made and when services are rendered by the
employees.

Defined benefit plans: The Company provides for
gratuity, a defined benefit retirement plan (''the
Gratuity Plan'') covering eligible employees. The
Gratuity Plan provides a lumpsum payment to vested
employees at retirement, death, or termination of
employment, of an amount based on the respective
employee''s salary and the tenure of employment with
the Company. Liabilities with regard to the Gratuity
Plan are determined by actuarial valuation, performed
by an independent actuary, at each balance sheet date
using the projected unit credit method.

The company recognizes the net obligation of a
defined benefit plan in its balance sheet as an asset or
liability. Gains and losses through re-measurements of
the net defined benefit liability/ (asset) are recognised
in other comprehensive income. The actual return of
the portfolio of plan assets, in excess of the yields
computed by applying the discount rate used to
measure the defined benefit obligations is recognised
in Other Comprehensive income. The effect of any
plan amendments are recognised in net profits in the
Statement of Profit and Loss.

(xiii) Foreign currency Transaction

(i) Functional and presentation currency:

The financial statements are presented in indian rupee
(iNR), which is functional and presentation currency.

(ii) transactions and balances :

Foreign currency transactions are translated into
the functional currency using the exchange rates
at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement
of such transactions and from the translation of
monetary assets and liabilities denominated in foreign
currencies at year end exchange rates are generally
recognised in statement of Profit and Loss.

Foreign exchange differences regarded as an
adjustment to borrowing costs are presented in the
statement of Profit and Loss, within finance costs. All
other foreign exchange gains and losses are presented
in the statement of Profit and Loss on a net basis
within other gains/(losses).

(xiv) Leases
As a lessee

The Company''s lease asset classes primarily consist of
leases for land and buildings. The Company assesses
whether a contract contains a lease, at inception of a
contract. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use
of an identified asset, the Company assesses whether: (i)
the contract involves the use of an identified asset (ii) the
Company has substantially all of the economic benefits
from use of the asset through the period of the lease and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company
recognizes a right-of-use asset ("ROU") and a corresponding
lease liability for all lease arrangements in which it is a
lessee, except for leases with a term of twelve months or
less (short-term leases) and low value leases. For these
short-term and low value leases, the Company recognizes
the lease payments as an operating expense on a straight¬
line basis over the term of the lease.

Certain lease arrangements includes the options to extend
or terminate the lease before the end of the lease term.
ROU assets and lease liabilities includes these options
when it is reasonably certain that they will be exercised.
The right-ofuse assets are initially recognized at cost, which
comprises the initial amount of the lease liability adjusted for
any lease payments made at or prior to the commencement
date of the lease plus any initial direct costs less any lease

incentives. They are subsequently measured at cost less
accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis over the
shorter of the lease term and useful life of the underlying
asset. Right of use assets are evaluated for recoverability
whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable. For the
purpose of impairment testing, the recoverable amount (i.e.
the higher of the fair value less cost to sell and the value-
in-use) is determined on an individual asset basis unless
the asset does not generate cash flows that are largely
independent of those from other assets.

The lease liability is initially measured at amortized cost
at the present value of the future lease payments. The
lease payments are discounted using the interest rate
implicit in the lease or, if not readily determinable, using
the incremental borrowing rates in the country of domicile
of these leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset
if the Company changes its assessment if whether it will
exercise an extension or a termination option. Lease liability
and ROu asset have been separately presented in the
Balance sheet and lease payments have been classified as
financing cash flows.

(xv) Financial instruments-Initial recognition,subsequent
measurement

A financial instrument is any contact that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity

A. Investments and other financial assets

(i) Classification

The Company classifies its financial assets in the
following measurement categories:

- those to be measured subsequently at fair value
(either through other comprehensive income, or
through profit or loss), and

- those measured at amortised cost.

The classification depends on the entity''s business
model for managing the financial assets and the
contractual terms of the cash flows.

For assets measured at fair value, gains and losses will
either be recorded in the statement of profit or loss or
other comprehensive income.

The classification criteria of the Company for debt and
equity instruments is provided as under:

(a) Debt instruments

Depending upon the business model of the Company
debt instruments can be classified under following
categories:

- Debt instruments measured at amortised cost

- Debt instruments measured at fair value through
other comprehensive income

- Debt instruments measured at fair value through
profit or loss

The Company reclassifies debt instruments when and
only when its business model for managing those
assets changes.

(b) Equity instruments

The equity instruments can be classified as:

- Equity instruments measured at fair value

through profit or loss (''FvTPL'')

- equity instruments measured at fair value

through other comprehensive income (''FvTOCi'')

equity instruments and derivatives are normally
measured at FvTPL. However, on initial recognition,
an entity may make an irrevocable election (on an
instrument-by-instrument basis) to present in OCi the
subsequent changes in the fair value of an investment
in an equity instrument within the scope of ind As -109.

(ii) Measurement

At initial recognition, the Company measures a
financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss,
transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs
of financial assets carried at fair value through profit
or loss are expensed in the statement of profit or
loss. However, trade receivables that do not contain
a significant financing component are measured at
transaction price.

Debt instruments

subsequent measurement of debt instruments
depends on the Company''s business model for
managing the asset and the cash flow characteristics
of the asset. There are three measurement categories
into which the Company classifies its debt instruments:

Amortised cost: Assets that are held for collection
of contractual cash flows where those cash flows
represent solely payments of principal and interest
are measured at amortised cost. A gain or loss on a
debt investment that is subsequently measured at
amortised cost and is not part of a hedging relationship
is recognised in the statement of profit or loss when
the asset is derecognised or impaired. Interest income
from these financial assets is included in finance
income using the effective interest rate method.

Fair value through other comprehensive income:
Assets that are held for collection of contractual
cash flows and for selling the financial assets, where
the assets'' cash flows represent solely payments
of principal and interest, are measured at fair value
through other comprehensive income. Movements in
the carrying amount are taken through OCi, except for
the recognition of impairment gains or losses, interest
revenue and foreign exchange gains and 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 gains/
(losses). interest income from these financial assets
is included in other income using the effective interest
rate method.

Fair value through profit or loss: Assets that do not meet
the criteria for amortised cost or FvOCi are measured
at fair value through profit or loss. A gain or loss on a
debt investment that is subsequently measured at fair
value through profit or loss and is not part of a hedging
relationship is recognised in the statement of profit or
loss and presented net in the statement of profit and
loss within other gains/ (losses) in the period in which
it arises. interest income from these financial assets is
included in other income.

Investment in equity shares

The Company subsequently measures all equity
investments at fair value (Other than the investment
in wholly owned subsidiaries which are measured at
cost). where the management has elected to present
fair value gains and losses on equity investments in
other comprehensive income, there is no subsequent
reclassification of fair value gains and losses to
profit or loss. Dividends from such investments are
recognised in the statement of profit or loss as other

income when the Company''s right to receive payments
is established.

Changes in the fair value of financial assets at fair
value through profit or loss are recognised in other
gain/ (losses) in the statement of profit and loss.
impairment losses (and reversal of impairment losses)
on equity investments measured at FvOCi are not
reported separately from other changes in fair value.

(iii) Derecognition of financial assets

A financial asset is derecognised only when:

- the Company has transferred the rights to receive
cash flows from the Financial asset or

- retains the contractual rights to receive the
cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one
or more recipients.

where the Company has transferred an asset, the
Company evaluates whether it has transferred
substantially all risks and rewards of ownership of the
financial asset. in such cases, the financial asset is
derecognised. where the Company has not transferred
substantially all risks and rewards of ownership of the
financial asset, the financial asset is not derecognised.

i. Financial liabilities

(i) Classification

The Company classifies its financial liabilities in the
following measurement categories:

- Financial liabilities measured at fair value
through profit or loss

- Financial liabilities measured at amortized cost

(ii) Measurement

The measurement of financial liabilities depends on
their classification, as described below:

Financial liabilities measured at fair value through
profit or loss:

Financial liabilities at fair value through profit or loss
include financial liabilities held for trading. At initial
recognition, such financial liabilities are recognised at
fair value.

Financial liabilities at fair value through profit or loss
are, at each reporting date, measured at fair value with

all the changes recognized in the Statement of Profit
and Loss.

Financial liabilities measured at Amortized Cost :

At initial recognition, all financial liabilities other than
fair valued through profit and loss are recognised
initially at fair value less transaction costs that
are attributable to the issue of financial liability.
Transaction costs of financial liability carried at
fair value through profit or loss is expensed in the
statement of profit or loss.

After initial recognition, financial liabilities are
subsequently measured at amortised cost using the
effective interest method. Any difference between
the proceeds (net of transaction costs) and the
redemption amount is recognised in the statement of
profit or loss over the period of the financial liabilities
using the effective interest method. Fees paid on the
establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is
probable that some or all of the facility will be drawn
down.

(iii) De-recognition of financial liability

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or
expires. The difference between the carrying amount
of a financial liability that has been extinguished or
transferred to another party and the consideration paid,
including any non-cash assets transferred or liabilities
assumed, is recognised in the statement of profit or loss
as other income or finance costs.

(xvi) derivative financial instruments

The Company uses derivative financial instruments, such as
forward contracts to hedge its foreign currency exposure. The
recognizing of the resulting gain or loss depends on whether
the derivative is designated as a hedging instrument, and if so,
on the nature of the item being hedged. Any gains or losses
arising from changes in the fair value of derivatives are taken
directly to profit or loss.

(xvii) Borrowings

Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption
amount is recognised in statement of Profit and Loss over
the period of the borrowings. Fees paid on the establishment

of loan facilities are recognised as transaction costs of
the loan to the extent that it is probable that some or all
of the facility will be drawn down. in this case, the fee is
deferred until the draw down occurs. To the extent there is
no evidence that it is probable that some or all of the facility
will be drawn down, the fee is capitalised as a prepayment
for liquidity services and amortised over the period of the
facility to which it relate

Borrowings are removed from the Balance sheet when the
obligation specified in the contract is discharged, cancelled
or expired. The difference between the carrying amount of a
financial liability that has been extinguished or transferred
to another party and the consideration paid, including any
non-cash assets transferred or liabilities assumed, is
recognised in statement of Profit and Loss as other gains/
(losses).

Borrowings are classified as current liabilities unless the
Company has an unconditional right to defer settlement of
the liability for at least 12 months after the reporting period.
where there is a breach of a material provision of a long-term
loan arrangement on or before the end of the reporting period
with the effect that the liability becomes payable on demand
on the reporting date, the entity does not classify the liability
as current, if the lender agreed, after the reporting period and
before the approval of the financial statements for issue, not
to demand payment as a consequence of the breach.

(xviii) Borrowing costs

a) Borrowing costs that are attributable to the acquisition,
construction, or production of a qualifying asset are
capitalised as a part of the cost of such asset till such
time the asset is ready for its intended use or sale. A
qualifying asset is an asset that necessarily requires a
substantial period of time to get ready for its intended
use or sale.

b) All other borrowing costs are recognised as expense in
the period in which they are incurred.

(xix) Income tax

The income tax expense or credit for the period is the tax
payable on the current period''s taxable income based on
the applicable income tax rate for each year adjusted by
changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of
the tax laws enacted or substantively enacted at the end of
the reporting period. Management periodically evaluates
positions taken in tax returns with respect to situations in

which applicable tax regulation is subject to interpretation.
it establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities.

Deferred tax is recognised on temporary differences arising
between the tax bases of assets and liabilities and their
carrying values in the financial statements. Deferred tax
is determined using tax rates (and laws) that have been
enacted or substantially enacted by the end of the reporting
period and are expected to apply when the related deferred
income tax asset is realised or the deferred income tax
liability is settled.

Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to
utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is
a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the
same taxation authority. Current tax assets and tax liabilities
are offset where the entity has a legally enforceable right to
offset and intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.

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

Current and deferred tax is recognised in statement of
Profit and Loss, except to the extent that it relates to items
recognised in Other Comprehensive income. in this case,
the tax is also recognised in Other Comprehensive income.

(xx) Revenue recognition

Revenue towards satisfaction of a performance obligation is
measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation.

(a) Sale of goods

The Company derives revenue from sale of Goods
and revenue is recognized upon transfer of control
of promised goods to customers in an amount that
reflects the consideration the Company expects to
receive in exchange for those goods. To recognize
revenues, the Company applies the following five
step approach: ( 1) identify the contract with a
customer, (2) identify the performance obligations

in the contract, (3) determine the transaction price,
(q) allocate the transaction price to the performance
obligations in the contract, and (5) recognize
revenues when a performance obligation is satisfied.
The Company recognises revenue at point in time ,

Any change in scope or price is considered as a
contract modification. The Company accounts for
modifications to existing contracts by assessing
whether the services added are distinct and whether
the pricing is at the standalone selling price.

The Company accounts for variable considerations
like, volume discounts, rebates and pricing
incentives to customers as reduction of revenue on
a systematic and rational basis over the period of
the contract. The Company estimates an amount of
such variable consideration using expected value
method or the single most likely amount in a range of
possible consideration depending on which method
better predicts the amount of consideration to which
we may be entitled.

Revenues are shown net of allowances/ returns,
goods and services tax and applicable discounts and
allowances.

(b) Interest income

interest income is accrued on a time proportion basis,
by reference to the principle outstanding and the
effective interest rate applicable.

(c) Rental Income

Rental income is recognized on a time-apportioned
basis in accordance with the underlying substance of
the relevant contract.

(d) Dividend Income

Dividend income from investments is recognised when
the shareholder''s rights to receive payment have been
established.

(e) Commision Income

Commission income is recognised when the services
are rendered.

xxi) Government grants / Assistance

Government grants are recognised where there is reasonable
assurance that the grant will be received and all attached
conditions will be complied with.Government grants related

to assets are presented in the balance sheet as deferred
income and is recognised in the Statement of profit or loss
on a systematic basis over the expected useful life of the
related asset. The grant which is received to compensate
the import cost of assets subject to an export obligation as
prescribed in the export promotion capital goods scheme
is recognised as income in the statement of profit and loss
linked to fulfilment of associated export obligations. The
benefit of a government loan at a below-market rate of
interest is treated as government grant, measured as the
difference between proceeds received and the fair value of
the loan based on prevailing market interest rates and are
presented in the balance sheet as deferred income.

(xxii) Dividend Distribution

Annual dividend distribution to the shareholders is
recognised as a liability in the period in which the dividends
are approved by the shareholders. Any interim dividend paid
is recognised on approval by Board of Directors. Dividend
payable and corresponding tax on dividend distribution is
recognised directly in equity.

(xxiii) Fair Value measurement

The Company measures 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. The fair value measurement is based
on the presumption that the transaction to sell the asset
or transfer the liability takes place either: in the principal
market for the asset or liability, or in the absence of a
principal market, in the most advantageous market for the
asset or liability The principal or the most advantageous
market must be accessible by the Company. The fair value
of an asset ora liability is measured using the assumptions
that market participants would use when pricing the asset
or liability, assuming that market participants act in their
economic best interest. A fair value measurement of a non¬
financial asset takes into account a market participant''s
ability to generate economic benefits by using the asset in
its highest and best use or by selling it to another market
participant that would use the asset in its highest and
best use. The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use of
unobservable inputs. All assets and liabilities for which fair

value is measured or disclosed in the financial statements
are categorised 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) prices in active markets for
identical assets and liabilities

Level 2: Other techniques for which all inputs which have a
significant effect on the recorded fair value are observable
either directly or indirectly

Level 3: Techniques which use inputs that have a significant
effect on the recorded fair value that are not based on
observable market data. For assets and liabilities that
are recognised in the financial statements on a recurring
basis, the Company determines whether transfers have
occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the
end of each reporting period. For the purpose of fair value
disclosures, the Company has determined classes of assets
& liabilities on the basis of the nature, characteristics and
the risks of the asset or liability and the level of the fair
value hierarchy as explained above.

(xxiv) Earnings per share

Basic earnings per equity share is computed by dividing
the net profit attributable to the equity holders of the
company by the weighted average number of equity shares
outstanding during the year.

Diluted earnings per equity share is computed by dividing
the net profit attributable to the equity holders of the
company by the weighted average number of equity shares
considered for deriving basic earnings per equity share
and also the weighted average number of equity shares
that could have been issued upon conversion of all dilutive
potential equity shares.

(xxv) Impairment of assets

At each balance sheet date, the Company reviews the
carrying values of its property, plant and equipment and
intangible assets to determine whether there is any
indication that the carrying value of those assets may not be
recoverable through continuing use. if any such indication
exists, the recoverable amount of the asset is reviewed in
order to determine the extent of impairment loss (if any).

Where the assets does not generate cash flows that are
independent from other assets, the Company estimates the
recoverable amount of the cash generating unit to which
the asset belongs.

Recoverable amount is the highest of fair value less costs
to sell and value in use. in assessing value in use, the
estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the
risks specific to the asset for which the estimates of future
cash flows have not been adjusted. An impairment loss is
recognised in the statement of profit and loss as and when
the carrying value of an asset exceeds its recoverable
amount.

where an impairment loss subsequently reverses, the
carrying value of the asset (or cash generating unit) is
increased to the revised estimate of its recoverable amount
so that the increased carrying value does not exceed the
carrying value that would have been determined had no
impairment loss been recognised for the asset (or cash
generating unit) in prior years.

---

Mar 31, 2024

2. Significant accounting policies

The significant accounting policies applied by the Company in the preparation of its financial statements are listed below. Such accounting policies have been applied consistently to all the periods presented in these financial statements.

(i) Statement of compliance

The financial statements are prepared and presented in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules 2015, as amended from time to time as notified under Section 133 of the Companies Act 2013, the relevant provision of the Companies Act 2013 ("the Act”) and other accounting principles generally accepted in India.

(ii) Basis of preparation

The standalone financial statements have been prepared in confirmity with Indian Accounting Standards (Ind AS) prescribed under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 as amended

The financial statements have been prepared on accrual basis under the historical cost basis except for certain financial instruments which are measured at fair value at the end of each reporting period.

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

the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability.

(iii) Use of estimates and critical accounting judgements

In preparation of the financial statements, the Company makes judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and the associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected.

The following are the critical judgements, apart from those involving estimations that the directors have made in the process of applying the Company''s accounting policies and that have the most significant effect on the amounts recognised in the standalone financial statements.

Deferred Income tax assets and liabilities

Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits.

The amount of total deferred tax assets could change if estimates of projected future taxable income or if tax regulations udergo a change.

Income Taxes

Deferred tax assets are recognised to the extent that it is regarded as probable that deductible temporary differences can be realized. the Company estimates deferred tax assets and liabilities based on current tax laws and rates and in certain cases, business plans, including management''s expectations regarding the manner and timing of recovery of the related assets. Changes in these estimates may affect the amount of deferred tax liabilities or the valuation of deferred tax assets and thereby the tax charge in the Standalone Statement of profit or Loss.

provision for tax liabilities require judgements on the interpretation of tax legislation, developments in case law and the potential outcomes of tax audits and appeals which may be subject to significant uncertainty.

therefore, the actual results may vary from expectations resulting in adjustments to provisions, the valuation of deferred tax assets, cash tax settlements and therefore the tax charge in the Standalone Statement of profit or Loss.

Useful lives of Property, plant and equipment (‘PPE'')

the Company reviews the estimated useful lives and residual value of ppE at the end of each reporting period. the factors such as changes in the expected level of usage, technological developments and product life-cycle, could significantly impact the economic useful lives and the residual values of these assets. Consequently, the future depreciation charge could be revised and thereby could have an impact on the profit of the future years.

Defined benefit plans

the cost of the defined benefit plans and the present

value of the defined benefit obligation (''DBo'') are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. these include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Fair value measurement of derivative and other financial instruments

the fair value of financial instruments, that are not traded in an active market, is determined by using valuation techniques. this involves significant judgements in selection of a method in making assumptions that are mainly based on market conditions existing at the Balance Sheet date and in identifying the most appropriate estimate of fair value when a wide range of fair value measurements are possible.

(iv) Basis of Measurement

these standalone financial statements have been prepared under the historical cost except for the following assets and liabilities which have been measured at fair value: . the standalone financial statements are presented in Indian Rupees (''), which is the Company''s functional and presentation currency and all amounts are rounded to the nearest Lakh and two decimals thereof, except as stated otherwise.

(v) Property, Plant and Equipment (PPE) and Capital Works in Progess

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation and impairment if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Cost is inclusive of inward freight, duties and taxes and incidental expenses related to acquisition or construction. All upgradation / enhancements are charged off as revenue expenditure unless they bring similar significant additional benefits. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are

expected to arise from the continued use of asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the statement of profit and loss.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to Statement of profit or Loss during the reporting period in which they are incurred.

projects under which tangible property, plant and equipment are not yet ready for their intended use are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of 3 years.

property, plant and equipment acquired in business combination are recognised at fair value at the acquisition date. Subsequent costs are included in the assets carrying value or recognised as a separate assets as appropriate only when it is possible that future economic benefit associated with the item will flow to the Company.

projects under which tangible fixed assets are not yet ready for their intended use are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

(vi) Depreciation and Amortisation

(a) Depreciation on the property, plant and equipment is provided over the useful life of assets which is coincide with the life specified in Schedule II to the Companies Act, 2013 except in the case of the certain categories of assets, in whose case the life of the assets has been assessed as under based on techinical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes,

manufacturers warranties and maintenance support etc. The range of useful lives of the property,plant and Equipment are as follows: the depreciation is provided based on the useful life of assets specified in Schedule II to the Companies Act, 2013 on straight line method. The useful lives of assets as mentioned above is on their single shift basis, if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of triple shift the depreciation shall be calculated on the basis of 100%for that period.

(b) property, plant and equipment (ppE) which are added/ disposed- of during the year, depreciation is provided on pro-rata basis from (up- to) the date on which the ppE is available for use (disposed-of).

(c) Assets residual values and useful lives are reviewed at each financial year end considering the physical condition of the assets and benchmarking analysis or whenever there are indicators for review of residual value and useful life adjusted prospectively, if appropriate. Freehold land is not depreciated. lease hold land is amortised over the period of lease.

(d) Free-hold land are not subject to amortisation.

(vii) Intangible Assets

Intangible assets acquired separately are measured on initial recognition at historical cost. Intangibles assets have a finite life and are subsequently carried at cost less any accumulated amortization and accumulated impairment losses if any.

Intangible assets with finite lives are amortized over the useful life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period.

Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

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 or loss when the asset is derecognized.

(viii)Investment Property

property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company is classified as investment property.

Recognition: Investment property is recognised as an asset when and only when, (a) it is probable that the future economic benefits that are associated with the investment property will flow to the company (b) the cost of the investment property can be measured reliably.

Initial Measurement:

(i) Investment property is initially recognised at cost comprising the purchase price and directly attributable transaction costs (e.g. legal services, transfer services).

(ii) The cost of a purchased investment property comprises its purchase price and any directly attributable expenditure. Directly attributable expenditure includes, for example, professional fees for legal services, property transfer taxes and other transaction costs.

(iii) The cost of an investment property is not increased by:

(a) start-up costs (unless they are necessary to bring the property to the condition necessary

for it to be capable of operating in the manner intended by the management.

(b) operating losses incurred before the investment property achieves the planned level of occupancy, or

(c) abnormal amounts of wasted material, labour or other resources incurred in constructing or developing the property.

(iv) If payment for an investment property is deferred, its cost is the cash price equivalent. The difference between this amount and the total payments is recognised as interest expense over the period of credit.

(v) The fair value of an asset for which comparable market transactions do not exist is reliably measurable if (a) the variability in the range of reasonable fair value estimates is not significant for that asset or (b) the probabilities of the various estimates within the range can be reasonably assessed and used in estimating fair value. If the entity is able to determine reliably the fair value of either the asset received or the asset given up, then the fair value of the asset given up is used to measure cost unless the fair value of the asset received is more clearly evident.

Subsequent Measurement:

(a) Subsequently investment property is carried at cost model, which is cost less accumulated depreciation and any accumulated impairment losses.

(b) Subsequent expenditures on investment property are capitalised when it is probable that economic benefits in excess of the original standards flow to the company, otherwise it is charged to p&L.

Fair Value Measurement:

the fair value of an investment property is being measured on a continuing basis. However ,in exceptional cases, there is clear evidence when the company first acquires an investment property (or when an existing property first becomes investment property after a change in use) that the fair value of the investment property is not reliably measureable on a continuing basis. this arises when ,and only when, the market for comparable properties is

inactive and alternative reliable measurements of fair value are not available.

Disposasls:

Investment property is derecognised (eliminated from Balance Sheet) on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. Gains or losses arising from the retirement or disposal of investment property is determined as the difference between the net disposal proceeds and the carrying amount of the asset and is recognised in profit or loss in the period of the retirement or disposal.

Depreciation or Amortisation:

i. Depreciation on the investment property is provided over the useful life of assets which is coincide with the life specified in Schedule II to the Companies Act, 2013. The range of useful lives of the Investment property are as follows:

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

ii. Investment property which are added/ disposed- of during the year, depreciation is provided on pro-rata basis from (up- to) the date on which the investment property is available for use (disposed-of).

iii. Assets residual values and useful lives are reviewed at each financial year end considering the physical condition of the assets and benchmarking analysis or whenever there are indicators for review of residual value and useful life adjusted prospectively, if appropriate. Freehold land is not depreciated. Lease hold land is amortised over the period of lease.

iv. Free-hold land are not subject to amortisation.

(ix) Goodwill

the excess of cost to the company of its investments in the subsidiary companies over its share of equity of the subsidiary companies , at the dates on which the investments in the subsidiary companies were made, is recognised as ''Goodwill'' being an asset in the financial statements and is tested for impairment on annual basis as required by Ind AS 36 Impairment of assets. On the other hand, where the share of equity in the subsidiary companies as on the date of investment is in excess of cost of investments of the company, it is recognised as ''Capital Reserve'' and shown under the head ''Reserves & Surplus'', in the financial statements. The ''Goodwill'' is determined separately for each subsidiary Company and such amounts are not set off between different entities.

(x) Cash and cash equivalents

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash on hand, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the Balance Sheet.

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

Short term borrowings, repayments and advances having maturity of three months or less, are shown as net in cash flow statement.

(xi) Inventories

Raw material, work in progress, stores, traded and finished goods Inventories are valued at the lower of cost (First in First Out - FIFO basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes cost of purchase, all charges in bringing the goods to the point of sale, including indirect levies, transit insurance and receiving charges. Finished goods include appropriate proportion of overheads and, where applicable.

Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition.

Rejection and scrap

Rejection and scrap are valued at net realisable value.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

(xii) Employee benefits

Employee benefits include provident fund, employee state insurance scheme, gratuity, compensated absences and performance incentives.

(i) Short-term obligations

Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the Balance Sheet.

the cost of short-term compensated absences is accounted as under:

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(b) in case of non-accumulating compensated absences, when the absences occur.

(ii) Other long-term employee benefit obligations

provisions for other long term employee benefits-compensated absences, a defined benefit scheme, is made on the basis of actuarial valuation at the end of each financial year and are charged to the statement of profit and loss. All actuarial gains or losses are recognised immediately in the statement of profit and loss.

the obligations are presented as current liabilities in the balance sheet if the entity does not have an

unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

(iii) Post-employment obligations

Defined contribution plans: the Company''s contribution to provident fund are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Defined benefit plans: the Company provides for gratuity, a defined benefit retirement plan (''the Gratuity plan'') covering eligible employees. the Gratuity Plan provides a lumpsum payment to vested employees at retirement, death, or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment with the Company. Liabilities with regard to the Gratuity plan are determined by actuarial valuation, performed by an independent actuary, at each balance sheet date using the projected unit credit method.

the company recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability. Gains and losses through remeasurements of the net defined benefit liability/ (asset) are recognised in other comprehensive income. the actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligations is recognised in Other Comprehensive Income. the effect of any plan amendments are recognised in net profits in the Statement of profit and Loss.

(xiii) Foreign currency Transaction

(i) Functional and presentation currency:

the financial statements are presented in Indian rupee (INR), which is functional and presentation currency.

(ii) Transactions and balances :

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of

monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in Statement of Profit and Loss.

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the Statement of profit and Loss, within finance costs. All other foreign exchange gains and losses are presented in the Statement of profit and Loss on a net basis within other gains/(losses).

(xiv) Leases As a lessee

The Company''s lease asset classes primarily consist of leases for land and buildings. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset ("Rou") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. The right-ofuse assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the

shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option. Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows

(xv) Financial instruments-Initial recognition,subsequent measurement

A financial instrument is any contact that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

A. Investments and other financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

- those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

- those measured at amortised cost.

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in the statement of profit or loss or other comprehensive income.

The classification criteria of the Company for debt and equity instruments is provided as under:

(a) Debt instruments

Depending upon the business model of the Company, debt instruments can be classified under following categories:

- Debt instruments measured at amortised cost

- Debt instruments measured at fair value

through other comprehensive income

- Debt instruments measured at fair value

through profit or loss

The Company reclassifies debt instruments when and only when its business model for managing those assets changes.

(b) Equity instruments

the equity instruments can be classified as:

- Equity instruments measured at fair value through profit or loss (''FVTpL'')

- Equity instruments measured at fair value through other comprehensive income (''FVTOCI'')

Equity instruments and derivatives are normally measured at FVTPL. However, on initial recognition, an entity may make an irrevocable election (on an instrument-by-instrument basis) to present in oCI the subsequent changes in the fair value of an investment in an equity instrument within the scope of Ind AS -109.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the statement of profit or loss. However, trade receivables that do not contain a significant financing component are measured at transaction price.

Debt instruments

Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and the cash flow

characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in the statement of profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

Fair value through other comprehensive income: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and 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 gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in the statement of profit or loss and presented net in the statement of profit and loss within other gains/ (losses) in the period in which it arises. Interest income from these financial assets is included in other income.

Investment in equity shares

The Company subsequently measures all

equity investments at fair value (Other than the investment in wholly owned subsidiaries which are measured at cost). Where the management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss. Dividends from such investments are recognised in the statement of profit or loss as other income when the Company''s right to receive payments is established

Changes in the fair value of financial assets at fair value through profit or loss are recognised in other gain/ (losses) in the statement of profit and loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVoCI are not reported separately from other changes in fair value.

(iii) Derecognition of financial assets

A financial asset is derecognised only when:

- the Company has transferred the rights to receive cash flows from the Financial asset or

- retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

B. Financial liabilities (i) Classification

The Company classifies its financial liabilities in the following measurement categories:

- Financial liabilities measured at fair value through profit or loss

- Financial liabilities measured at amortized cost

(ii) Measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities measured at fair value through profit or loss:

Financial liabilities at fair value through profit or loss include financial liabilities held for trading. At initial recognition, such financial liabilities are recognised at fair value.

Financial liabilities at fair value through profit or loss are, at each reporting date, measured at fair value with all the changes recognized in the Statement of profit and Loss.

Financial liabilities measured at Amortized Cost

At initial recognition, all financial liabilities other than fair valued through profit and loss are recognised initially at fair value less transaction costs that are attributable to the issue of financial liability. transaction costs of financial liability carried at fair value through profit or loss is expensed in the statement of profit or loss.

After initial recognition, financial liabilities are subsequently measured at amortised cost using the effective interest method. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the statement of profit or loss over the period of the financial liabilities using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.

(iii) De-recognition of financial liability

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the statement of profit or loss as other income or finance costs.

(xvi) Derivative financial instruments

The Company uses derivative financial instruments, such as forward contracts to hedge its foreign currency exposure. the recognizing of the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, on the nature of the item being hedged. Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss.

(xvii) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in Statement of profit and Loss over the period of the borrowings. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relate.

Borrowings are removed from the Balance Sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in Statement of profit and Loss as other gains/(losses).

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

(xviii) Borrowing costs

a) Borrowing costs that are attributable to the acquisition, construction, or production of a qualifying asset are capitalised as a part of the cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

b) All other borrowing costs are recognised as expense in the period in which they are incurred.

(xix) Income tax

the income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate for each year adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

the current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying values in the financial statements. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally

enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

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

Current and deferred tax is recognised in Statement of profit and Loss, except to the extent that it relates to items recognised in other Comprehensive Income. In this case, the tax is also recognised in other Comprehensive Income.

(xx) Revenue recognition

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation.

(a) Sale of goods

The Company derives revenue from Sale of Goods and revenue is recognized upon transfer of control of promised goods to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods. To recognize revenues, the Company applies the following five step approach: ( 1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (q) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenues when a performance obligation is satisfied. The Company recognises revenue at point in time.

Any change in scope or price is considered as a contract modification. The Company accounts for modifications to existing contracts by assessing whether the services added are distinct and whether the pricing is at the standalone selling price.

The Company accounts for variable considerations like, volume discounts, rebates and pricing incentives to customers as reduction of revenue on a systematic and rational basis over the period of the contract. thie Company estimates an amount of such variable consideration using expected value method or the single most likely amount

in a range of possible consideration depending on which method better predicts the amount of consideration to which we may be entitled. Revenues are shown net of allowances/ returns, goods and services tax and applicable discounts and allowances.

(b) Interest income

Interest income is accrued on a time proportion basis, by reference to the principle outstanding and the effective interest rate applicable.

(c) Rental Income

Rental income is recognized on a time-apportioned basis in accordance with the underlying substance of the relevant contract.

(d) Dividend Income

Dividend income from investments is recognised when the shareholder''s rights to receive payment have been established.

(e) Commision Income

Commission income is recognised when the services are rendered.

(xxi) Government grants / Assistance

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. Government grants related to assets are presented in the balance sheet as deferred income and is recognised in the Statement of profit or loss on a systematic basis over the expected useful life of the related asset. thie grant which is received to compensate the import cost of assets subject to an export obligation as prescribed in the export promotion capital goods scheme is recognised as income in the statement of profit and loss linked to fulfilment of associated export obligations. the benefit of a government loan at a below-market rate of interest is treated as government grant, measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates and are presented in the balance sheet as deferred income.

(xxii) Dividend Distribution

Annual dividend distribution to the shareholders is recognised as a liability in the period in which the

dividends are approved by the shareholders. Any interim dividend paid is recognised on approval by Board of Directors. Dividend payable and corresponding tax on dividend distribution is recognised directly in equity.

(xxiii) Fair Value measurement

The Company measures 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. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: In the principal market for the asset or liability, or In the absence of a principal market, in the most advantageous market for the asset or liability the principal or the most advantageous market must be accessible by the CompanyThe fair value of an asset ora liability is measured using the assumptions that market participants would use when pricing the asset or liability assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. thie Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised 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) prices in active

markets for identical assets and liabilities

level 2: other techniques for which all inputs

which have a significant effect on the recorded fair value are observable either directly or indirectly level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data. For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting

period. For the purpose of fair value disclosures, the Company has determined classes of assets & liabilities on the basis of the nature, characteristics and the risks of the asset or liability and the level of the fair value hierarchy as explained above.

(xxiv) Earnings per share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

(xxv) Impairment of assets

At each balance sheet date, the Company reviews the carrying values of its property plant and equipment and intangible assets to determine whether there is any indication that the carrying value of those assets may not be recoverable through continuing use. If any such indication exists, the recoverable amount of the asset is reviewed in order to determine the extent of impairment loss (if any). Where the assets does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.

Recoverable amount is the highest of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. An impairment loss is recognised in the statement of profit and loss as and when the carrying value of an asset exceeds its recoverable amount.

Where an impairment loss subsequently reverses, the carrying value of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount so that the increased carrying value does not exceed the carrying value that would have been determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years.

---

Mar 31, 2023

Significant Accounting Policies

3.1 Basis of Measurement

These standalone financial statements have been prepared
under the historical cost except for the following assets
and liabilities which have been measured at fair value:
. The standalone financial statements are presented in
Indian Rupees (''), which is the Company''s functional and
presentation currency and all amounts are rounded to the
nearest Lakh and two decimals thereof, except as stated
otherwise.

3.2 investment in Joint Venture

Interests in joint venture are accounted for using the equity
method, after initially being recognised at cost in the
standalone balance sheet. When the Group transacts with a
joint venture , profits and losses from transactions with the
joint venture are recognised in the balance sheet of Group
only to the extent of interests in the joint venture that are not
related to the Group.

The carrying amount of the investment is adjusted to
recognise changes in the Group''s share of net assets of the
joint venture since the acquision date. Goodwill relating to
the joint venture is included in the carrying amount of the
investment.

The Standalone Statement of Profit and Loss reflects the
Group''s share of the results of operations of the joint venture.
Any change in OCI of those investees is presented as part of

the Group''s OCI. In addition, when there has been a change
recognised directly in the equity of the joint venture, the
Group recognises its share of any changes, when applicable,
in the statement of changes in equity. Unrealised gains and
losses resulting from transactions between the Group and
the joint venture are eliminated to the extent of the interest
in the associate/joint venture. The aggregate of the Group''s
share of profit or loss of joint venture is shown on the face of
the Standalone Statement of Profit and Loss.

After application of the equity method, the Group determines
whether it is necessary to recognise an impairment loss on
its investment in its joint venture. At each reporting date, the
Group determines whether there is objective evidence that
the investment in the joint venture is impaired. If there is such
evidence, the Group calculates the amount of impairment
as the difference between the recoverable amount of the
joint venture and its carrying value, and then recognises the
loss as ''Share of Profit of joint venture'' in the Consolidated
Statement of Profit & Loss.

Upon loss of significant influence over the joint venture, the
Group measures and recognises any retained investment at
its fair value. Any difference between the carrying amount of
the joint venture upon loss of significant and the fair value
of the retained investment and proceeds from disposal is
recognised in the Standalone Statement of Profit & Loss.

3.3 Property, Plant and Equipment (PPE) and Capital Works in
Progess

Freehold Land is carried at historical cost. All other items
of Property plant and equipment are stated at cost, net of
accumulated depreciation and accumulated impairment
losses, if any. Cost comprises of the purchase price (net
of GST credits / duty credits wherever applicable) and all
direct costs attributable to bringing the asset to its working
condition for intended use and includes the borrowing costs
for qualifying assets and the initial estimate of restoration
cost if the recognition criteria is met. All other repair and
maintenance costs are recognised in the statement of
profit and loss as incurred. Software and licences which are
integral part of the PPE are capitalised along with respective
PPE. An item of property plant & equipment is de-recognised
upon disposal or when no future economic benefits are
expected from its use or disposal. The gain or loss arising
on the disposal or etirement of an item of property plant
and equipment is determined as the difference between the
sales proceeds and the carrying amount of the asset and is

recognised in the Statement of Profit and Loss on the date
of disposal or retirement. Capital work-in-progress includes
cost of property, plant and equipment under installation /
under development as at the balance sheet date. Advances
paid towards the acquisition of property, plant and equipment
outstanding at each balance of profit and loss if there has
been a change in the estimates used to determine the
recoverable amount. The carrying amount of the asset is
increased to its revised recoverable amount, provided that
this amount does not exceed the carrying amount that would
have been determined (net of any accumulated amortization
or depreciation) had no impairment loss been recognised
for the asset in prior years. A reversal of impairment loss is
recognised immediately in Statement of Profit and Loss.

3.4 Depreciation and Amortisation

i) Depreciation on the property, plant and equipment is
provided over the useful life of assets which is coincide
with the life specified in Schedule II to the Companies
Act, 2013. The range of useful lives of the Property,Plant
and Equipment are as follows:

Property, Plant &	Useful lives
Equipmen	in Years
Plant & equipment	8- 15
Building	5- 60
Office equipment	5
Vehicles	8-10
Furniture & fixtures	10
Computers	3- 6

The depreciation is provided based on the useful life of
assets specified in Schedule II to the Companies Act,
2013 on straight line method. The useful lives of assets
as mentioned above is on their single shift basis, if an
asset is used for any time during the year for double
shift, the depreciation will increase by 50% for that
period and in case of triple shift the depreciation shall
be calculated on the basis of 100%for that period.

ii) Property plant and equipment (PPE) which are added/
disposed- of during the year, depreciation is provided on
pro-rata basis from (up- to) the date on which the PPE is
available for use (disposed-of).

iii) Assets residual values and useful lives are reviewed
at each financial year end considering the physical
condition of the assets and benchmarking analysis

or whenever there are indicators for review of
residual value and useful life adjusted prospectively,
if appropriate. Freehold land is not depreciated.
Lease hold land is amortised over the period of lease.

iv) Free-hold land are not subject to amortisation.

3.5 intangible Assets

Intangible assets acquired separately are measured on
initial recognition at historical cost. Intangibles assets have
a finite life and are subsequently carried at cost less any
accumulated amortization and accumulated impairment
losses if any.

Intangible assets with finite lives are amortized over the
useful life and assessed for impairment whenever there
is an indication that the intangible asset may be impaired.
The amortization period and the amortization method for an
intangible asset with a finite useful life are reviewed at least
at the end of each reporting period.

Changes in the expected useful life or the expected pattern
of consumption of future economic benefits embodied in
the asset are considered to modify the amortization period
or method, as appropriate, and are treated as changes
in accounting estimates. The amortization expense on
intangible assets with finite lives is recognized in the
statement of profit and loss unless such expenditure forms
part of carrying value of another asset.

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 or loss when the
asset is derecognized.

Amortization methods and estimated useful lives3.6 investment Property

Recognition: Investment property is recognised as an
asset when and only when, (a) it is probable that the future
economic benefits that are associated with the investment
property will flow to the company (b) the cost of the
investment property can be measured reliably.

initial Measurement:

(i) Investment property is initially recognised at cost
comprising the purchase price and directly attributable
transaction costs (e.g. legal services, transfer services)

(ii) The cost of a purchased investment property comprises
its purchase price and any directly attributable
expenditure. Directly attributable expenditure includes,
for example, professional fees for legal services,
property transfer taxes and other transaction costs.

(iii) The cost of an investment property is not increased by:

(a) start-up costs (unless they are necessary to bring
the property to the condition necessary for it to be
capable of operating in the manner intended by the
management

(b) operating losses incurred before the investment
property achieves the planned level of occupancy,
or

(c) abnormal amounts of wasted material, labour
or other resources incurred in constructing or
developing the property.

(iv) If payment for an investment property is deferred, its cost
is the cash price equivalent. The difference between this
amount and the total payments is recognised as interest
expense over the period of credit.

(v) The fair value of an asset for which comparable market
transactions do not exist is reliably measurable if (a)
the variability in the range of reasonable fair value
estimates is not significant for that asset or (b) the
probabilities of the various estimates within the range
can be reasonably assessed and used in estimating fair
value. If the entity is able to determine reliably the fair
value of either the asset received or the asset given
up, then the fair value of the asset given up is used to
measure cost unless the fair value of the asset received
is more clearly evident.

subsequent measurement:

(a) Subsequently investment property is carried at cost

model, which is cost less accumulated depreciation and
any accumulated impairment losses.

(b) Subsequent expenditures on investment property are
capitalised when it is probable that economic benefits
in excess of the original standards flow to the company,
otherwise it is charged to P&L.

Fair Value measurement:

The fair value of an investment property is being measured
on a continuing basis. However ,in exceptional cases,
there is clear evidence when the company first acquires
an investment property (or when an existing property first

becomes investment property after a change in use) that
the fair value of the investment property is not reliably
measureable on a continuing basis. This arises when ,and
only when, the market for comparable properties is inactive
and alternative reliable measurements of fair value are not
available.

Disposasls:

Investment property is derecognised (eliminated from
Balance Sheet) on disposal or when the investment
property is permanently withdrawn from use and no future
economic benefits are expected from its disposal. Gains or
losses arising from the retirement or disposal of investment
property is determined as the difference between the net
disposal proceeds and the carrying amount of the asset and
is recognised in profit or loss in the period of the retirement
or disposal.

Depreciation or Amortisation:

i. Depreciation on the investment property is provided
over the useful life of assets which is coincide with the
life specified in Schedule II to the Companies Act, 2013.
The range of useful lives of the Investment property are
as follows:

The depreciation is provided based on the useful life of
assets specified in Schedule II to the Companies Act,
2013 on straight line method. The useful lives of assets
as mentioned above is on their single shift basis, if an
asset is used for any time during the year for double
shift, the depreciation will increase by 50% for that
period and in case of triple shift the depreciation shall
be calculated on the basis of 100%for that period.

ii Investment property which are added/ disposed-
of during the year, depreciation is provided on
pro-rata basis from (up- to) the date on which the
investment property is available for use (disposed-of).

iii Assets residual values and useful lives are reviewed
at each financial year end considering the physical
condition of the assets and benchmarking analysis
or whenever there are indicators for review of
residual value and useful life adjusted prospectively,

if appropriate. Freehold land is not depreciated.
Lease hold land is amortised over the period of lease.
iv Free-hold land are not subject to amortisation.

3.7 impairment of non-financial assets

Property, plant and equipment and other non-financial
assets are evaluated for recoverability whenever events
or changes in circumstances indicate that their carrying
amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the higher
of the fair value less cost to sell and the value-in-use) is
determined on an individual asset basis unless the asset
does not generate cash flows that are largely independent
of those from other assets. In such cases, the recoverable
amount is determined for the Cash Generating Unit (CGU)
to which the asset belongs. If such assets are considered
to be impaired, the impairment to be recognised in the
Statement of Profit and Loss is measured by the amount
by which the carrying value of the assets exceeds the
estimated recoverable amount of the asset. An impairment
loss is reversed in the statement of profit and loss if there
has been a change in the estimates used to determine the
recoverable amount. The carrying amount of the asset is
increased to its revised recoverableamount, provided that
this amount does not exceed the carrying amount that would
have been determined (net of any accumulated amortization
or depreciation) had no impairment loss been recognised
for the asset in prior years. A reversal of impairment loss is
recognised immediately in Statement of Profit and Loss.

3.8 Cash and cash equivalents

Cash and cash equivalents includes cash on hand and at
bank, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three
months or less that are readily convertible to a known
amount of cash and are subject to an insignificant risk of
changes in value and are held for the purpose of meeting
short-term cash commitments. The cash flow statement has
been prepared under the indirect method as set out in Indian
Accounting Standard (IND AS ) 7 statement of cash flows.

3.9 inventories

Inventories are carried in the balance sheet as follows:

Raw material, stores & spares At lower of cost or net
realisable value, cost includes cost of purchases and other
cost incurred in bringing the inventories to their present
location and condition.

work-in Progress At lower of cost of material plus
appropriate production overheads or net realisable value

Finished Goods At lower of cost of materials plus production
overheads and excise duty (wherever applicable) or net
realisable value.

Purchased Goods in transit Valued at cost.

The cost of inventories comprises of cost of purchase, cost
of conversion and other related costs incurred in bringing
the inventories to their respective present location and
condition. Net realisable value is the estimated selling price
in the ordinary course of business, less estimated costs of
completion and the estimated costs necessary to make the
sale.

3.10 Employee benefits

Expenses and liabilities in respect of employee benefits are
recorded in accordance with Ind-AS 19 - Employee Benefits.

a) Defined contribution plan

(I) Provident Fund: Contribution to the provident fund
with the government at pre-determined rates is a
defined contribution scheme and is charged to the
statement of Profit and Loss. There are no other
obligations other than contribution to PF Schemes.

(II) National pension scheme : Contribution
to national pension scheme with the at
predetermined rates is a defined contribution
scheme and is charged to the statement of Profit
and Loss when employees have rendered services
entitling them to such benefit

b) Defined benefit plan gratuity : The Company provides for
gratuity, a defined benefit retirement plan (''the Gratuity
Plan'') covering eligible employees. The Gratuity Plan
provides a lumpsum payment to vested employees at
retirement, death, or termination of employment, of an
amount based on the respective employee''s salary and
the tenure of employment with the Company. Liabilities
with regard to the Gratuity Plan are determined by
actuarial valuation, performed by an independent
actuary, at each balance sheet date using the projected
unit credit method.

The company recognizes the net obligation of a defined
benefit plan in its balance sheet as an asset or liability.
Gains and losses through re-measurements of the
net defined benefit liability/ (asset) are recognised
in other comprehensive income. The actual return of
the portfolio of plan assets, in excess of the yields
computed by applying the discount rate used to
measure the defined benefit obligations is recognised
in Other Comprehensive Income. The effect of any

plan amendments are recognised in net profits in the
Statement of Profit and Loss.

c) Long term employee benefits: Provisions for other
long term employee benefits-compensated absences,
a defined benefit scheme, is made on the basis of
actuarial valuation at the end of each financial year
and are charged to the statement of profit and loss. All
actuarial gains or losses are recognised immediately in
the statement of profit and loss.

d) Other short-term employee benefits: All employee
benefits payable wholly within twelve months rendering
services are classified as short term employee
benefits. Benefits such as salaries, wages, short-term
compensated absences, performance incentives etc.
and the expected cost of bonus, ex-gratia are recognised
during the period in which the employee renders related
service.

3.11 foreign currency reinstatement and translation
initial Recognition:

On initial recognition, transactions in foreign currencies
entered into by the Group are recorded in the Functional
currency (i.e. Indian Rupees), by applying to the Foreign
currency amount, the spot exchange rate between the
Functional currency and the Foreign currency at the date
of transation. Exchange differences arising on foreign
exchange transations settled during the year are recognised
in the Standalone Statement of Profit and Loss.

Measurement of foreign currency items at reporting date:

Foreign currency monetary items of the Group are translated
at the closing exchange rates. Non-monetary items that
are measured at historical cost in a Foreign currecy, are
translated using the exchange rate at the date of the
translation. 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
recognised in the Standalone Statement of Profit and Loss.

3.12 leases

As a lessee The Company''s lease asset classes primarily
consist of leases for land. The Company assesses whether
a contract contains a lease, at inception of a contract. A
contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a
period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use

of an identified asset, the Company assesses whether: (i)
the contract involves the use of an identified asset (ii) the
Company has substantially all of the economic benefits
from use of the asset through the period of the lease and
(iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company
recognizes a right-of-use asset ("ROU") and a corresponding
lease liability for all lease arrangements in which it is a
lessee, except for leases with a term of twelve months or
less (short-term leases) and low value leases. For these
short-term and low value leases, the Company recognizes
the lease payments as an operating expense on a straight¬
line basis over the term of the lease.

Certain lease arrangements includes the options to extend
or terminate the lease before the end of the lease term. ROU
assets and lease liabilities includes these options when it is
reasonably certain that they will be exercised. The right-of-
use assets are initially recognized at cost, which comprises
the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the
lease plus any initial direct costs less any lease incentives.
They are subsequently measured at cost less accumulated
depreciation and impairment losses.

The lease liability is initially measured at amortized cost
at the present value of the future lease payments. The
lease payments are discounted using the interest rate
implicit in the lease or, if not readily determinable, using
the incremental borrowing rates in the country of domicile
of these leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset
if the Company changes its assessment if whether it will
exercise an extension or a termination option.

Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments have
been classified as financing cash flows.

3.13 Financial instruments

initial recognition: The Company recognises financial
assets and financial liabilities when it becomes a party to
the contractual provisions of the instrument. All financial
assets and liabilities are recognised at fair value on initial
recognition. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial
liabilities thar are not at fair value through profit or loss, are
added to or deducted from the fair value on initial recognition

Subsequent measurement:

i Financial assets carried at amortised cost: A financial
asset is subsequently measured at amortised cost if it is
held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and
the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments
of principal and interest on the principal amount
outstanding.

ii financial assets carried at fair value through
other comprehensive income: A financial asset is
subsequently measured at fair value through other
comprehensive income if it is held within a business
model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and
the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments
of principal and interest on the principal amount
outstanding.

iii financial assets at fair value through profit or loss: A

financial asset which is not classified in any of (i) & (ii)
above categories are subsequently fair valued through
profit or loss.

v financial Liabilities: Financial liabilities are
subsequently carried at amortized cost using the
effective interest method. For trade and other payables
maturing within one year from the balance sheet date,
the carrying amounts approximate fair value due to the
short maturity of these instruments.

De-recognition

The company de-recognises of financial assets when
the contractual rights to receive cash flows from the
financial asset expire or transfer the financial asset
and transfer qualifies for de-recognition under IND
AS 109. A financial liability is derecognised when the
obligation under the liability is discharged or cancelled
or expires. The difference between the carrying amount
of a financial liability that has been extinguished is
recognised in profit or loss as other income.

Offsetting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the balance sheet
if there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the
liabilities simultaneously.

3.14 Derivative financial instruments

The Company uses derivative financial instruments, such as
forward contracts to hedge its foreign currency exposure. The
recognizing of the resulting gain or loss depends on whether
the derivative is designated as a hedging instrument, and
if so, on the nature of the item being hedged. Any gains or
losses arising from changes in the fair value of derivatives
are taken directly to profit or loss.

3.15 Borrowing costs

a) Borrowing costs that are attributable to the acquisition,
construction, or production of a qualifying asset are
capitalised as a part of the cost of such asset till such
time the asset is ready for its intended use or sale. A
qualifying asset is an asset that necessarily requires a
substantial period of time to get ready for its intended
use or sale.

b) All other borrowing costs are recognised as expense in
the period in which they are incurred.

3.16 Taxation

i Income tax expense represents the sum of current tax
and deferred tax. Tax is recognised in the Statement
of Profit and Loss, except to the extent that it relates
to items recognised directly in equity or other
comprehensive income.

ii Current tax provision is computed on Income calculated
after considering allowances and exemptions under the
provisions of the applicable Income Tax Laws

iii Provision for current income taxes and advance taxes
paid are presented in the balance sheet after offsetting
them on an assessment year basis.

iv Deferred tax is recognised on differences between
the carrying amounts of assets and liabilities in the
Balance sheet and the corresponding tax bases used
in the computation of taxable profit and are accounted
for using the Balance Sheet approach for all taxable
temporary differences to the extent that it is probable
that future taxable profits will be available. Deferred tax
assets and liabilities are measured at the applicable tax
rates and tax laws those are enacted or substantively
enacted. Deferred tax assets and deferred tax liabilities
are off set, and presented on net basis. The carrying
amount of deferred tax is reviewed at each balance
sheet date.The measurement of deferred tax liabilities
and assets reflects the tax consequences that would
follow from the manner in which the Company expects,
at the end of the reporting period, to recover or settle the

carrying amount of its assets and liabilities.

3.17 Revenue recognition

The revenue is recognised once the entity satisfied that the
performance obligation & controls are transferred to the
customers.

(a) sale of goods

The Company derives revenue from Sale of Goods
and revenue is recognized upon transfer of control
of promised goods to customers in an amount that
reflects the consideration the Company expects to
receive in exchange for those goods. To recognize
revenues, the Company applies the following five step
approach: ( 1) identify the contract with a customer, (2)
identify the performance obligations in the contract,
(3) determine the transaction price, (q) allocate
the transaction price to the performance obligations
in the contract, and (5) recognize revenues when
a performance obligation is satisfied. The Company
recognises revenue at point in time

Any change in scope or price is considered as a
contract modification. The Company accounts for
modifications to existing contracts by assessing
whether the services added are distinct and whether
the pricing is at the standalone selling price.

The Company accounts for variable considerations like,
volume discounts, rebates and pricing incentives to
customers as reduction of revenue on a systematic
and rational basis over the period of the contract.
The Company estimates an amount of such variable
consideration using expected value method or the single
most likely amount in a range of possible consideration
depending on which method better predicts the
amount of consideration to which we may be entitled.
Revenues are shown net of allowances/ returns,
goods and services tax and applicable discounts and
allowances.

(b) interest income

Interest income is recognized using the time proportion
basis, based on the underlying interest rates.

(c) Rental income

Rental income is recognized on a time-apportioned
basis in accordance with the underlying substance of
the relevant contract.

(d) Dividend income

Dividend is recognized when the company''s right to
receive the payment is established, which is generally
when shareholders approve the dividend.

3.18 Government grants / Assistance

Government grants/Assistance recognised where there is
reasonable assurance that the same will be received and all
elegibility criterias are met out If the grants/assistance are
related to subvention of a particular expense, it is deducted
form that expense in the year of recognition of government
grant / Assistance.

3.19 Dividend Distribution

Annual dividend distribution to the shareholders is
recognised as a liability in the period in which the dividends
are approved by the shareholders. Any interim dividend paid
is recognised on approval by Board of Directors. Dividend
payable and corresponding tax on dividend distribution is
recognised directly in equity.

3.20 Fair Value measurement

The Company measures 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. The fair value measurement is based
on the presumption that the transaction to sell the asset
or transfer the liability takes place either: In the principal
market for the asset or liability, or In the absence of a
principal market, in the most advantageous market for the
asset or liability The principal or the most advantageous
market must be accessible by the Company.The fair value
of an asset ora liability is measured using the assumptions
that market participants would use when pricing the asset
or liability, assuming that market participants act in their
economic best interest. A fair value measurement of a non¬
financial asset takes into account a market participant''s
ability to generate economic benefits by using the asset in
its highest and best use or by selling it to another market
participant that would use the asset in its highest and
best use. The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the
use of unobservable inputs. All assets and liabilities for
which fair value is measured or disclosed in the financial
statements are categorised 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) prices in active markets for
identical assets and liabilities

Level 2: Other techniques for which all inputs which have a
significant effect on the recorded fair value are observable
either directly or indirectly

level 3: Techniques which use inputs that have a significant
effect on the recorded fair value that are not based on
observable market data. For assets and liabilities that
are recognised in the financial statements on a recurring
basis, the Company determines whether transfers have
occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the
end of each reporting period. For the purpose of fair value
disclosures, the Company has determined classes of assets
& liabilities on the basis of the nature, characteristics and
the risks of the asset or liability and the level of the fair value
hierarchy as explained above.

3.21 Earnings per share

Basic earnings per equity share is computed by
dividing the net profit attributable to the equity
holders of the company by the weighted average
number of equity shares outstanding during the year.
Diluted earnings per equity share is computed by dividing the
net profit attributable to the equity holders of the company
by the weighted average number of equity shares considered
for deriving basic earnings per equity share and also the
weighted average number of equity shares that could have
been issued upon conversion of all dilutive potential equity
shares.

---

Mar 31, 2018

1. Significant Accounting Policies

1.1 Basis of Measurement

These standalone financial statements have been prepared under the historical cost except for the following assets and liabilities which have been measured at fair value: Certain Financial assets and liabilities measured at fair value (including derivative financial instruments). Defined benefit plan assets are measured at fair value. The standalone financial statements are presented in Indian Rupees (INR), which is the Company''s functional and presentation currency and all amounts are rounded to the nearest rupees and two decimals thereof, except as stated otherwise.

2.2 Property, Plant and Equipment (PPE)

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost comprises of the purchase price (net of GST credits / duty credits wherever applicable) and all direct costs attributable to bringing the asset to its working condition for intended use and includes the borrowing costs for qualifying assets and the initial estimate of restoration cost if the recognition criteria is met. All other repair and maintenance costs are recognised in the statement of profit and loss as incurred. Software and licences which are integral part of the PPE are capitalised along with respective PPE. The Company has elected to continue with the carrying value of all of its property, plant and equipment net of revaluation reserve as at the transition date, viz., 1 April 2016 measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date. Land and building revalued during the earlier years and credited to revaluation reserve have been reversed (net of amortisation till 1 April, 2016). An item of property, plant & equipment is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising on the disposal or etirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Profit and Loss on the date of disposal or retirement. Capital work-in-progress includes cost of property, plant and equipment under installation / under development as at the balance sheet date. Advances paid towards the acquisition of property, plant and equipment outstanding at each balance of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of impairment loss is recognised immediately in Statement of Profit and Loss.

3.3 Depreciation and Amortisation

i Depreciation on the property, plant and equipment is provided over the useful life of assets which is coincide with the life specified in Schedule II to the Companies Act, 2013. The range of useful lives of the Property,Plant and Equipment are as follows:

The depreciation has been provided based on the useful life of assets specified in Schedule II to the Companies Act, 2013 on written down value method upto March 31, 2017. With effect from April 1, 2017 the company changed the depreciation method from written down value method to Straight line mehtod. The useful lives of assets as mentioned above is on their single shift basis, if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of triple shift the depreciation shall be calculated on the basis of 100%for that period.

ii Property, plant and equipment (PPE) which are added/ disposed- of during the year, depreciation is provided on pro-rata basis from (up- to) the date on which the PPE is available for use (disposed-of).

iii Assets residual values and useful lives are reviewed at each financial year end considering the physical condition of the assets and benchmarking analysis or whenever there are indicators for review of residual value and useful life adjusted prospectively, if appropriate. Freehold land is not depreciated. Lease hold land is amortised over the period of lease.

iv Free-hold land are not subject to amortisation.

3.4 Impairment of non-financial assets

Property, plant and equipment and other non-financial assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. If such assets are considered to be impaired, the impairment to be recognised in the Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverableamount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of impairment loss is recognised immediately in Statement of Profit and Loss.

3.5 Cash and cash equivalents

Cash and cash equivalents includes cash on hand and at bank, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments. The cash flow statement has been prepared under the indirect method as set out in Indian Accounting Standard (IND AS ) 7 statement of cash flows.

3.6 Inventories

Inventories are carried in the balance sheet as follows: Raw material, Stores & Spares At lower of cost or net realisable value, cost includes cost of purchases and other cost incurred in bringing the inventories to their present location and condition. Work-in Progress At lower of cost of material plus appropriate production overheads or net realisable value Finished Goods At lower of cost of materials plus production overheads and excise duty (wherever applicable) or net realisable value. Purchased Goods in transit Valued at cost.

The cost of inventories comprises of cost of purchase, cost of conversion and other related costs incurred in bringing the inventories to their respective present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

3.7 Employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with Ind-AS 19 - Employee Benefits.

a) Defined contribution plan Provident Fund: Contribution to the provident fund with the government at pre-determined rates is a defined contribution scheme and is charged to the statement of Profit and Loss. There are no other obligations other than contribution to PF Schemes.

b) Defined benefit plan Gratuity: The Company provides for gratuity, a defined benefit retirement plan (''the Gratuity Plan'') covering eligible employees. The Gratuity Plan provides a lumpsum payment to vested employees at retirement, death, or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment with the Company. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each balance sheet date using the projected unit credit method.

The company recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/ (asset) are recognised in other comprehensive income. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligations is recognised in Other Comprehensive Income. The effect of any plan amendments are recognised in net profits in the Statement of Profit and Loss.

c) Long term employee benefits: Provisions for other long term employee benefits-compensated absences, a defined benefit scheme, is made on the basis of actuarial valuation at the end of each financial year and are charged to the statement of profit and loss. All actuarial gains or losses are recognised immediately in the statement of profit and loss.

d) Other Short-term employee benefits: All employee benefits payable wholly within twelve months rendering services are classified as short term employee benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc.and the expected cost of bonus, ex-gratia are recognised during the period in which the employee renders related service.

3.8 Foreign currency reinstatement and translation

a) Functional and presentation currency Standalone financial statements have been presented in Indian Rupees (INR), which is the Company''s functional and presentation currency.

b) Transactions and balances Transactions in currencies other than the entity''s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Nonmonetary items are measured in terms of historical cost in foreign currencies and are therefore not retranslated.

3.9 Financial instruments

Initial recognition: The Company recognises financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognised at fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities thar are not at fair value through profit or loss, are added to or deducted from the fair value on initial recognition. Subsequent measurement:

i Financial assets carried at amortised cost: A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

ii Financial assets carried at fair value through other comprehensive income: A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

iii Financial assets at fair value through profit or loss: A financial asset which is not classified in any of (i) & (ii) above categories are subsequently fair valued through profit or loss.

v Financial Liabilities: Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

De-recognition

The company de-recognises of financial assets when the contractual rights to receive cash flows from the financial asset expire or transfer the financial asset and transfer qualifies for de-recognition under IND AS 109. A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. The difference between the carrying amount of a financial liability that has been extinguished is recognised in profit or loss as other income.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

3.10 Derivative financial instruments

The Company uses derivative financial instruments, such as forward contracts to hedge its foreign currency exposure. The recognizing of the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, on the nature of the item being hedged. Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss.

3.11 Borrowing costs

a) Borrowing costs that are attributable to the acquisition, construction, or production of a qualifying asset are capitalised as a part of the cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

b) All other borrowing costs are recognised as expense in the period in which they are incurred.

3.12 Taxation

i Income tax expense represents the sum of current tax and deferred tax. Tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised directly in equity or other comprehensive income.

ii Current tax provision is computed on Income calculated after considering allowances and exemptions under the provisions of the applicable Income Tax Laws.

iii Provision for current income taxes and advance taxes paid are presented in the balance sheet after offsetting them on an assessment year basis.

iv Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the Balance sheet and the corresponding tax bases used in the computation of taxable profit and are accounted for using the Balance Sheet approach for all taxable temporary differences to the extent that it is probable that future taxable profits will be available. Deferred tax assets and liabilities are measured at the applicable tax rates and tax laws those are enacted or substantively enacted. Deferred tax assets and deferred tax liabilities are off set, and presented on net basis. The carrying amount of deferred tax is reviewed at each balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3.13 Revenue recognition and other income

a) Revenue from the sale of goods and services are measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts, rebates and incentives etc. Sales exclude Goods and Service Tax.

b) Revenue from the sale of goods is recognised, when all the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably and no significant uncertainty exists regarding the amount of Consideration that will be derived from the sales of goods.

c) Revenue from Services is recognised as per terms of the contract with customers based on stage of completion when the outcome of the transaction involving rendering of services can be estimated reliably.

d) Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same and there is reasonable assurance that the Company will comply with the conditions attached to them.

e) Other Income Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

3.14 Government grants / Assistance

Government grants/Assistance recognised where there is reasonable assurance that the same will be received and all elegibility criterias are met out If the grants/assistance are related to subvention of a particular expense, it is deducted form that expense in the year of recognition of government grant / Assistance.

3.15 Dividend Distribution

Annual dividend distribution to the shareholders is recognised as a liability in the period in which the dividends are approved by the shareholders. Any interim dividend paid is recognised on approval by Board of Directors. Dividend payable and corresponding tax on dividend distribution is recognised directly in equity.

3.16 Fair Value measurement

The Company measures 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. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: In the principal market for the asset or liability, or In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company. The fair value of an asset ora liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised 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) prices in active markets for identical assets and liabilities

Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable either directly or indirectly

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data. For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. For the purpose of fair value disclosures, the Company has determined classes of assets & liabilities on the basis of the nature, characteristics and the risks of the asset or liability and the level of the fair value hierarchy as explained above.

3.17 Earnings per share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

3.18 Provisions

a) Provisions Provisions (excluding employee benefits) are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using equivalent period government securities interest rate. Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimate.

b) Contingencies Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes to the Financial Statements. Contingent assets are not recognised. However, when the realisation of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognised as an asset.

3.19 Investment in associates

An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Investment in associates are valued at cost less impairment. As per the IND AS 101 first time adoptions of Indian accounting standard, company has opted to continue with the previous GAAP carrying amount.

3.20 Research and development costs

Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when the Company can demonstrate:

a) The technical feasibility of completing the intangible asset so that the asset will be available for use or sale.

b) Its intention to complete and its ability and intention to use or sell the asset

c) How the asset will generate future economic benefits

d) The availability of resources to complete the asset

e) The ability to measure reliably the expenditure during development

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected future benefit. Amortisation expense is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

4. Critical accounting estimates, assumptions and judgements

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

a) Property, plant and equipment - Useful lives of assets The Company reviews the useful life of assets at the end of each reporting period. This reassessment may result in change in depreciation expenses in future periods.

b) Warranties The Company generally offers Warranties for its consumer products and the liability towards warranty related costs are recognized in the year of sales or service provided to the customers. Management ascertain and measure the liability for warranty claims based on historical experience and trend. The assumptions made in relation to current year are consistent of those are in prior years.

c) Provision and Contingencies A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Contingent liabilities are disclosed in the notes. Contingent assets are not recognised in the financial statements.

---

Mar 31, 2016

1) Basis of Preparation of Financial Statement

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act. 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and relevant provisions of the Companies Act, 2013 (“the 2013 Act”) / Companies Act,1956 (“the 1956 Act”), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2) Fixed Assets

a) Fixed Assets are stated at cost net of duty credit availed less accumulated depreciation and impairments, if any. The cost includes cost of acquisition/construction, installation and preoperative expenditure including trial run expenses (net of revenue) and borrowing costs incurred during pre-operation period. Expenses incurred on capital assets are carried forward as capital work in progress at cost till the same are ready for use.

b) Pre-operative expenses, including interest on borrowings for the capital goods, where applicable incurred till the capital goods are ready for commercial production, are treated as part of the cost of capital goods and capitalized.

c) Machinery spares which are specific to particular item of fixed assets and whose use is irregular are capitalized as part of the cost of machinery

3) Impairment of Assets

The Company recognizes all the losses as per Accounting Standard -28 due to the impairment of assets in the year of review of the physical conditions of the Assets and is measured by the amount by which, the carrying amount of the Assets exceeds the Fair Value of the Asset.

4) Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation on tangible fixed assets have been provided on the written down-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

5) inventories Valuation

Raw material is valued at cost (First in First Out basis) or nets realizable value whichever is lower. Finished Goods are valued at cost or net realizable value whichever is lower. Stock of Scrap is valued at net realizable value. Stock of Trading Goods is valued at Cost (Weighted Average/ First in First Out basis).

6) Foreign Exchange Transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. All exchange differences are dealt within profit and loss account. Current assets and current liabilities in foreign currency outstanding at the year end are translated at the rate of exchange prevailing at the close of the year and resultant gains/losses are recognized in the profit and loss account of the year except in cases where they are covered by forward foreign exchange contracts in which cases these are translated at the contracted rates of exchange and the resultant gains/losses recognized in profit and loss account over the life of the contract.

7) Duties & Credits

a) Excise Duty is accounted for at the time of clearance of goods except closing stock of finished goods lying at the works.

b) Cenvat Credit, to the extent available during the year, is adjusted towards cost of materials.

c) Duty credit on export sales has been taken on accrued basis whether license has been issued after closing of the financial year.

8) Sales are inclusive of excise duty and after deducting the trade discount and also sales tax applicable.

9) Retirement Benefits

a) The total accrued liability in respect of employees covered by the Payment of Gratuity Act, 1972, as actuarially determined in accordance with the relevant provisions of AS-15 issued by ICAI, and not provided for amounts to Rs.37,11,744/- (Previous Year Rs.44,77,787/-).

b) LeaveEncashmenttoRs.3,31,750/-(PreviousYearRs.3,94,194/-) has been not provided for.

10) Borrowing Cost

Borrowing cost is charged to the Profit & Loss Account, except cost of borrowing for the acquisition of qualifying assets, which is capitalized till the date of commercial use of the assets. In compliance of AS-16, the Borrowing Cost amounting to Rs.43,41,385/-(PreviousYearRs.91,06,056/-) has been capitalized during the year to the corresponding Capital Assets.

11) Taxes on income

Provision for current tax is made considering various allowances, disallowances and benefits available to the Company under the provisions of Income Tax Law.

In accordance with Accounting Standard AS-22 “Accounting for Taxes on income” issued by the Institute of Chartered Accountants of India, deferred taxes resulting from timing differences between book and tax profits are accounted for at tax rate substantively enacted by the Balance Sheet date to the extent the timing differences are expected to be crystallized.

12) Revenue Recognition

Sale of goods is recognized when the risk and reward of ownership are passed on to the customers. Revenue from services is recognized when the services are complete.

13) investments

Long term investments are carried at cost less provision for permanent diminution, if any, in value of such investments. Diminution, if any, in the value of Long Term Investment in respect of equity shares in Partap Industries Limited has not been provided for since the Management is of the opinion that reduction in the value of investment is of the temporary nature considering to inherent value and nature of investee’s business and hence no provision is required. Current investments are carried at lower of cost and fair value. Income/ Loss from investments are recognized in the year in which it is generated.

14) Provision and Contingencies

The company creates a provision when there is a present obligation as a result of past event that requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a present obligation that may require an outflow of resources or where a reliable estimate of such obligation cannot be made.

15) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit 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 cash flows. The cash flows from operating, investing and financing activities of the Group are segregated

16) Earnings 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 effects of all dilutive potential equity shares.

---

Mar 31, 2015

1) Basis of Preparation of Financial Statement

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act. 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and relevant provisions of the Companies Act, 2013 ("the 2013 Act") /Companies Act, 1956 ("the 1956 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for change in the accounting policy for depreciation as more fully described in Note 27.

2) Fixed Assets

a) Fixed Assets are stated at cost net of duty credit availed less accumulated depreciation and impairments, if any. The cost includes cost of acquisition/construction, installation and preoperative expenditure including trial run expenses (net of revenue) and borrowing costs incurred during pre-operation period. Expenses incurred on capital assets are carried forward as capital work in progress at cost till the same are ready for use.

b) Pre-operative expenses, including interest on borrowings for the capital goods, where applicable incurred till the capital goods are ready for commercial production, are treated as part of the cost of capital goods and capitalized,

c) Machinery spares which are specific to particular item of fixed assets and whose use is irregular are capitalized as part of the cost of machinery

3) Impairment of Assets

The Company recognizes all the losses as per Accounting Standard -28 due to the impairment of assets In the year of review of the physical conditions of the Assets and is measured by the amount by which, the carrying amount of the Assets exceeds the Fair Value of the Asset.

4) Depreciation

Depreciate amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation on tangible fixed assets have been provided on the written down-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

Plant Machinery -15Years

Factory Building -30Years

Office Equipment-5 Years

Vehicle-SYears

Furniture and Fittings -10 Years

Computer -3 Years

5) Inventories Valuation

Raw material is valued at cost (First in First Out basis) or nets realizable value whichever is lower. Finished Goods are valued at cost or net realizable value whichever is lower. Stock of Scrap is valued at net realizable value. Stock of Trading Goods is valued at Cost (Weighted Average/ First in First Out basis).

6) Foreign Exchange Transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. All exchange differences are dealt with in profit and loss account. Current assets and current liabilities in foreign currency outstanding at the yearend are translated at the rate of exchange prevailing at the close of the year and resultant gains/losses are recognized in the profit and loss account of the year except in cases where they are covered by forward foreign exchange contracts in which cases these are translated at the contracted rates of exchange and the resultant gains/losses recognized in profit and loss account over the life of the contract.

7) Duties & Credits

a) Excise Duty is accounted for at the time of clearance of goods except closing stock of finished goods lying at the works.

b) Canvas Credit, to the extent available during the year, is adjusted towards cost of materials.

c) Duty credit on export sales has been taken on accrued basis whether license has been issued after closing of the financial year.

8) Sales are inclusive of excise duty and after deducting the trade discount and also sales tax applicable.

9) Retirement Benefits

a) The total accrued liability in respect of employees covered by the Payment of Gratuity Act, 1972, as actuarially determined in accordance with the relevant provisions of AS-15 issued by ICAI, and not provided for amounts to Rs.44,77,787/- (Previous YearRs.39,14,281/-).

b) Leave Encashment to Rs. 3,94,194/-(Previous Yea rRs. 3,39,711/-) has been not provided for.

10} Borrowing Cost

Borrowing cost is charged to the Profits Loss Account, except cost of borrowing for the acquisition of qualifying assets, which is capitalized till the date of commercial use of the assets. In compliance of AS-16, the Borrowing Cost amounting to Rs.91,06,056/- (Previous Yea rRs. 37,02,691/-) has been capitalized during the year to the corresponding Capital Assets.

11) Taxes on Income

Provision for current tax is made considering various allowances, disallowances and benefits available to the Company under the provisions of income Tax Law.

In accordance with Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, deferred taxes resulting from timing differences between book and tax profits are accounted for at tax rate substantively enacted by the Balance Sheet date to the extent the timing differences are expected to be crystallized.

12) Revenue Recognition

Sale of goods is recognized when the risk and reward of ownership are passed on to the customers. Revenue from services is recognized when the services are complete.

13) Investments

Long term investments are carried at cost less provision for permanent diminution, if any, in value of such investments. Diminution, if any, in the value of Long Term Investment in respect of equity shares in Partap Industries Limited has not been provided for since the Management is of the opinion that reduction in the value of investment is of the temporary nature considering to inherent value and nature of investee's business and hence no provision is required. Current investments are carried at lower of cost and fair value. Income/Loss from investments are recognized in the year in which it is generated.

14) Provision and Contingencies

The company creates a provision when there is a present obligation as a result of past event that requires an outflow of resources and a reliable estimate can be made of the amount of obligation. Adisclosure for a contingent liability is made when there is a present obligation that may require an outflow of resources or where a reliable estimate of such obligation cannot be made,

15) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit 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 cash flows. The cash flows from operating, investing and financing activities of the Group are segregated

16) Earnings 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 effects of all dilutive potential equity shares.

---

Mar 31, 2014

1) Basis of Preparation of Financial Statement

a) The financial statements have been prepared under the historical cost convention on the basis of going concern and in accordance with the Accounting Standard 1 Referred to in section 211(3c) of the companies Act 1956.

b) The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

2) Fixed Assets

a) Fixed Assets are stated at cost net of duty credit availed less accumulated depreciation and impairments, if any. The cost includes cost of acquisition/construction, installation and preoperative expenditure including trial run expenses (net of revenue) and borrowing costs incurred during pre-operation period Expenses incurred on capital assets are carried forward as capital work in progress at cost till trie same are ready for use

b) Pre-operative expenses, including interest on borrowings for the capital goods, where applicable incurred till the capital goods are ready for commercial production, are treated as part of the cost of capital goods and capitalized.

c) Machinery spares which are specific to particular item of fixed assets and whose use is irregular are capitalized as part of the cost of machinery

3) Impairment of Assets

The Company recognizes all the losses as per Accounting Standard -28 due to the impairment of assets in the year of review of the physical conditions of the Assets and is measured by the amount by which, the carrying amount of the Assets exceeds the Fair Value of the Asset.

4) Depreciation

Depreciation on fixed assets is provided on written down value basis at the rates specified under Schedule XIV of the Companies Act, 1956. Depreciation for assets purchased / sold during the period is proportionately charged.

5) Inventories Valuation

Raw material is valued at cost (First in First Out basis) or nets realizable value whichever is lower. Finished Goods are valued at cost or net realizable value whichever is lower. Stock of Scrap is valued at net realizable value. Stock of Trading Goods is valued at Cost (Weighted Average/ First in First Out basis).

6) Foreign Exchange Transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. All exchange differences are dealt within profit and loss account. Current assets and current liabilities in foreign currency outstanding at the year end are translated at the rate of exchange prevailing at the close of the year and resultant gains/losses are recognized in the profit and loss account of the year except in cases where they are covered by forward foreign exchange contracts in which cases these are translated at the contracted rates of exchange and the resultant gains/losses recognized in profit and loss account over the life of the contract.

7) Duties & Credits

a) Excise Duty is accounted for at the time of clearance of goods except closing stock of finished goods lying at the works.

b) Cenvat Credit, to the extent available during the year, is adjusted towards cost of materials.

c) Duty credit on export sales has been taken on accrued basis whether license has been issued after closing of the financial year.

8) Sales are inclusive of excise duty and after deducting the trade discount and also sales tax applicable.

9) Retirement Benefits

a) The total accrued liability in respect of employees covered by the Payment of Gratuity Act, 1972, as actuarially determined in accordance with the relevant provisions of AS-15 issued by ICAI, and not provided for amounts to Rs. 39,14,281/- (Previous Year Rs.33,36,417/-).

b) Leave Encashment to Rs. 3,39,711/- (Previous Year Rs. 4,37,512/-) has been not provided for.

10) Borrowing Cost

Borrowing cost is charged to the Profit & Loss Account, except cost of borrowing for the acquisition of qualifying assets, which is capitalized till the date of commercial use of the assets. In compliance of AS-16, the Borrowing Cost amounting to Rs. 37,02,691/- (Previous Year Rs. 37,75,800/-) has been capitalized during the year to the corresponding Capital Assets.

11) Taxes on Income

Provision for current tax is made considering various allowances, disallowances and benefits available to the Company under the provisions of Income Tax Law.

In accordance with Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, deferred taxes resulting from timing differences between book and tax profits are accounted for at tax rate substantively enacted by the Balance Sheet date to the extent the timing differences are expected to be crystallized.

12) Revenue Recognition

Sale of goods is recognized when the risk and reward of ownership are passed on to the customers. Revenue from services is recognized when the services are complete.

13) Investments

Long term investments are carried at cost less provision for permanent diminution, if any, in value of such investments. Diminution, if any, in the value of Long Term Investment in respect of equity shares in Partap Industries Limited has not been provided for since the Management is of the opinion that reduction in the value of investment is of the temporary nature considering to inherent value and nature of investee's business and hence no provision is required. Current investments are carried at lower of cost and fair value. Income/ Loss from investments are recognized in the year in which it is generated.

14) Provision and Contingencies

The company creates a provision when there is a present obligation as a result of past event that requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a present obligation that may require an outflow of resources or where a reliable estimate of such obligation cannot be made.

15) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit 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 cash flows. The cash flows from operating, investing and financing activities of the Group are segregated

16) Earnings 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 effects of all dilutive potential equity shares.

---

Mar 31, 2013

1) Basis of Preparation of Financial Statement

a) The financial statements have been prepared under the historical cost convention on the basis of going concern and in accordance with the Accounting Standard 1 Referred to in section 211(3c) of the companies Act 1956.

b) The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

2) Fixed Assets

a) Fixed Assets are stated at cost net of duty credit availed less accumulated depreciation and impairments, if any. The cost includes cost of acquisition/construction, installation and preoperative expenditure including trial run expenses (net of revenue) and borrowing costs incurred during pre-operation period. Expenses incurred on capital assets are carried forward as capital work in progress at cost till the same are ready for use.

b) Pre-operative expenses, including interest on borrowings for the capital goods, where applicable incurred till the capital goods are ready for commercial production, are treated as part of the cost of capital goods and capitalized.

c) Machinery spares which are specific to particular item of fixed assets and whose use is irregular are capitalized as part of the cost of machinery

3) Impairment of Assets

The Company recognizes all the losses as per Accounting Standard -28 due to the impairment of assets in the year of review of the physical conditions of the Assets and is measured by the amount by which, the carrying amount of the Assets exceeds the Fair Value of the Asset.

4) Depreciation

Depreciation on fixed assets is provided on written down value basis at the rates specified under Schedule XIV of the Companies Act, 1956. Depreciation for assets purchased / sold during the period is proportionately charged.

5) Inventories Valuation

Raw material is valued at cost (First in First Out basis) or nets realizable value whichever is lower. Finished Goods are valued at cost or net realizable value whichever is lower. Stock of Scrap is valued at net realizable value. Stock of Trading Goods is valued at Cost (Weighted Average/ First in First Out basis).

6) Foreign Exchange Transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. All exchange differences are dealt within profit and loss account. Current assets and current liabilities in foreign currency outstanding at the year end are translated at the rate of exchange prevailing at the close of the year and resultant gains/losses are recognized in the profit and loss account of the year except in cases where they are covered by forward foreign exchange contracts in which cases these are translated at the contracted rates of exchange and the resultant gains/losses recognized in profit and loss account over the life of the contract.

7) Duties & Credits

a) Excise Duty is accounted for at the time of clearance of goods except closing stock of finished goods lying at the works.

b) Cenvat Credit, to the extent available during the year, is adjusted towards cost of materials.

c) Duty credit on export sales has been taken on accrued basis whether license has been issued after closing of the financial year.

8) Sales are inclusive of excise duty and after deducting the trade discount and also sales tax applicable.

9) Retirement Benefits

a) The total accrued liability in respect of employees covered by the Payment of Gratuity Act, 1972, as actuarially determined in accordance with the relevant provisions of AS-15 issued by ICAI, and not provided for amounts to Rs.33,36,417/- (Previous Year Rs.28,89,903/-).

b) Leave Encashment to Rs.4,37,512/- (Previous Year Rs.2,58,021/-) has been not provided for.

10) Borrowing Cost

Borrowing cost is charged to the Profit & Loss Account, except cost of borrowing for the acquisition of qualifying assets, which is capitalized till the date of commercial use of the assets. In compliance of AS-16, the Borrowing Cost amounting to Rs.37,75,800/- (Previous Year Rs.52,95,997/-) has been capitalized during the year to the corresponding Capital Assets.

11) Taxes on Income

Provision for current tax is made considering various allowances, disallowances and benefits available to the Company under the provisions of Income Tax Law.

In accordance with Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, deferred taxes resulting from timing differences between book and tax profits are accounted for at tax rate substantively enacted by the Balance Sheet date to the extent the timing differences are expected to be crystallized.

12) Revenue Recognition

Sale of goods is recognized when the risk and reward of ownership are passed on to the customers. Revenue from services is recognized when the services are complete.

13) Investments

Long term investments are carried at cost less provision for permanent diminution, if any, in value of such investments. Diminution, if any, in the value of Long Term Investment in respect of equity shares in Partap Industries Limited has not been provided for since the Management is of the opinion that reduction in the value of investment is of the temporary nature considering to inherent value and nature of investee''s business and hence no provision is required. Current investments are carried at lower of cost and fair value. Income/ Loss from investments are recognized in the year in which it is generated.

14) Provision and Contingencies

The company creates a provision when there is a present obligation as a result of past event that requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a present obligation that may require an outflow of resources or where a reliable estimate of such obligation cannot be made.

15) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit 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 cash flows. The cash flows from operating, investing and financing activities of the Group are segregated

16) Earnings 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 effects of all dilutive potential equity shares.

---

Mar 31, 2012

1) Basis of Preparation of Financial Statement

a) The financial statements have been prepared under the historical cost convention on the basis of going concern and in accordance with the Accounting Standard 1 Referred to in section 211(3c) of the companies Act 1956.

b) The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

2) Fixed Assets

a) Fixed Assets are stated at cost net of duty credit availed less accumulated depreciation and impairments, if any. The cost includes cost of acquisition/construction, installation and preoperative expenditure including trial run expenses (net of revenue) and borrowing costs incurred during pre-operation period. Expenses incurred on capital assets are carried forward as capital work in progress at cost till the same are ready for use.

b) Pre-operative expenses, including interest on borrowings for the capital goods, where applicable incurred till the capital goods are ready for commercial production, are treated as part of the cost of capital goods and capitalized.

c) Machinery spares which are specific to particular item of fixed assets and whose use is irregular are capitalized as part of the cost of machinery

3) Impairment of Assets

The Company recognizes all the losses as per Accounting Standard -28 due to the impairment of assets in the year of review of the physical conditions of the Assets and is measured by the amount by which, the carrying amount of the Assets exceeds the Fair Value of the Asset.

4) Depreciation

Depreciation on fixed assets is provided on written down value basis at the rates specified under Schedule XIV of the Companies Act, 1956. Depreciation for assets purchased / sold during the period is proportionately charged.

5) Inventories Valuation

Raw material is valued at cost (First in First Out basis) or nets realizable value whichever is lower. Finished Goods are valued at cost or net realizable value whichever is lower. Stock of Scrap is valued at net realizable value. Stock of Trading Goods is valued at Cost (Weighted Average/ First in First Out basis).

6) Foreign Exchange Transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transaction. All exchange differences are dealt within profit and loss account. Current assets and current liabilities in foreign currency outstanding at the year end are translated at the rate of exchange prevailing at the close of the year and resultant gains/losses are recognized in the profit and loss account of the year except in cases where they are covered by forward foreign exchange contracts in which cases these are translated at the contracted rates of exchange and the resultant gains/losses recognized in profit and loss account over the life of the contract.

7) Duties & Credits

a) Excise Duty is accounted for at the time of clearance of goods except closing stock of finished goods lying at the works.

b) Cenvat Credit, to the extent available during the year, is adjusted towards cost of materials.

c) Duty credit on export sales has been taken on accrued basis whether license has been issued after closing of the financial year.

8) Sales are inclusive of excise duty and after deducting the trade discount and also sales tax applicable.

9) Retirement Benefits

a) The total accrued liability in respect of employees covered by the Payment of Gratuity Act, 1972, as actuarially determined in accordance with the relevant provisions of AS-15 issued by ICAI, and not provided for amounts to Rs.28,89,903/- (Previous Year Rs.25,69,684/-).

b) Leave Encashment amounting to Rs.2,58,021/- (Previous Year Rs.1,91,909/-) has been not provided for.

10) Borrowing Cost

Borrowing cost is charged to the Profit & Loss Account, except cost of borrowing for the acquisition of qualifying assets, which is capitalized till the date of commercial use of the assets. In compliance of AS-16, the Borrowing Cost amounting to Rs.52,95,997/- (Previous Year Rs.40,48,307/-) has been capitalized during the year to the corresponding Capital Assets.

11) Taxes on Income

Provision for current tax is made considering various allowances, disallowances and benefits available to the Company under the provisions of Income Tax Law.

In accordance with Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, deferred taxes resulting from timing differences between book and tax profits are accounted for at tax rate substantively enacted by the Balance Sheet date to the extent the timing differences are expected to be crystallized.

12) Revenue Recognition

Sale of goods is recognized when the risk and reward of ownership are passed on to the customers. Revenue from services is recognized when the services are complete.

13) Investments

Long term investments are carried at cost less provision for permanent diminution, if any, in value of such investments. Diminution, if any, in the value of Long Term Investment in respect of equity shares in Partap Industries Limited has not been provided for since the Management is of the opinion that reduction in the value of investment is of the temporary nature considering to inherent value and nature of investee's business and hence no provision is required. Current investments are carried at lower of cost and fair value. Income/ Loss from investments are recognized in the year in which it is generated.

14) Provision and Contingencies

The company creates a provision when there is a present obligation as a result of past event that requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a present obligation that may require an outflow of resources or where a reliable estimate of such obligation cannot be made.

15) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit 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 cash flows. The cash flows from operating, investing and financing activities of the Group are segregated

16) Earnings 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 effects of all dilutive potential equity shares.