Accounting Policies of Rapicut Carbides Ltd. Company

Mar 31, 2024

1. Corporate Information

Rapicut Carbides Limited ("the Company") was incorporated as a Public Limited Company in April 1977, and Commercial Production Commenced in October 1979.

The Company is a public limited company domiciled end incorporated in Indie end ha vine its registered office aM19. GIDC IndustrialArea, on National Highway BOM-AHM,Ankleshwar, Gujarat, The Company’s shares ere fisted and traded on th e Bembay Stock Exchange Ltd. (BSE). The company is engageri in business of manufacturing of Tungsten Carbide products used in metat cutting, mining, wear parts and various other industries,

Gujarat DrillwOll Private Limited promoted with technical knowhow provided by RCL was merged with the company in the year 1993.

The fi n an c ia I statemer i ts of th © Co m pa n y are a pp roved by th e C om pany''s B oa rd of d i rectors on M ay 6,2 024,

2. Statement of compliance

These financial statements have been prepared in accordance with Indian Accounting Standards find AS) notified under Section 133 of the Comparsies Act, 2013 (the Act) read with Companies (Indian Accounting Standands) RuIes, 2016 as amen ded a nd othe r releva nt p rovi s ions of th e Act as a m en ded from ti m e to ti in e.

3. Basis of Preparation of Financial Statements

These financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (tnd AS) as noli fie d by Min i stry of C orpo rate Aft a i rs p u r$us nt to Section 13 3 of the Compan ies Act. 2013 read wi Lh R ule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

The fi nan cia I sta teme nts have been prepa red on the h i sto heal cost ba s is exce pt for certa i n fi na ncial in strume nts that are measured at fair values at the end of each reporting period, as explained in the material accounting policies. These accounting policies have been applied consistently io all the periods presented in the financial statements.

Histories I cost is genera 11 y based on the f arr va I ue of the oonsidcrat ion g i ven i n excha ng e fo r good s and services

Al I assets and ha bi I itie s have be en cl ass ified a s cu rrent or n o n -cu rre nt as per the Compa ny''s n orm ai ope ratio g eye le a nd other criteria as set out in the Schedule 111 (Division I!) to the Com pa nies Act, 2013.

The Financial Statements are presented jn Indian Rupees (INR), which is Company’s presentation and functional cu rre ncy and a 11 anio unts a re ro u nd ed off to the nea rest la kh s (u p to t wo d ecima I s j except when othe rw ise iridi bated.

4. Operating Cycle and classification of current and non-current:

Operatin g cyolo of the Compa ny is the time between th e acquisition of assets for processing a nd the i r rea lization in cash orcash equivalents As the Company’s normal operating cycle is not dearly identifiable, the same has been assumed to have duration of twelve months, Accordingly, ail assets and liabilities are classified as current or non-currem as per the Company''s operating cycle, and other criteria sei out in Ind AS-1 “Presentation of Financial Statements” and the Schedule III to the Companies Act, 2013,

(i) An as set is cu rrent whe n it is:

1. Expecte d to be re alized or intended to be sold or consumed in norma I opera ti ng cycle.

2. Hel d prima niy for th e pu rpose of trad i n g.

3. Expected to be re aEized w ith in tweive months afte r the re po rti n g pe ri od, or

4. Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at ieasl twelve months after the reporting period.

All other assets are classified as non-current.

(ii) Affability is current when it is:

1. Expected to be settled in normal operating cycle.

2. He Id prima ri!y f or t he pu rpa se of trading,

3. Due to be settled within twelve months after the reporting period, or

4. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

Ail other liabilities are treated as non-current.

Deferred tax assets and liabilities are classified as non - current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents.

5. Material Accounting Policy information

5.1 Basis of Measurement:

The se Fins ncia I state m ents ha ve bee n p re pared on a hi storice! cost ba s is, except for the following items:

* Ce rta i n financis I assets- mea sured at fair value (refer accou n ti n g po I icy re ga rdi n g fina ncia I i ns truments):

* N et d eft ned benefi t (assets )/l i ab i lily - m ea so red a t fa i r vaiu e of p!a n a ssets I ess presen t value of defi ned benefit obligation.

5.2 Use of Estimates:

The p re parati on of F i na n ciat State m ents in acco rda nee with I n d - AS req u i re s use of e stimate s and as so m pti on s for some items, which m i ght hove a n effect o n their re cogn it ion a nd me asureme nt in the B ala nee S h set an d Statem ont of Profit and Loss. The actual amounts realized may differ from these estimates. Accounting estimates could change from period to period, Actual results could differ from those estimates, Appropriate changes in estimates are made as the management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognised in the period in which the results are known /mate ri aiized a n d, if mate ria I. th eir effe cts are d i sclosed in the notes to th e F i na n ciai Statements.

5.3 Fair Value Measurement:

The Compa ny me asures ft na n cia I instfli ments at fair valued each bal an ce s heel da te.

Fair value is the price that would bo received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value measuremcnl is based on the presumption that the transaction to soil 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 pri nci pa I or the most adva ntageou s markei must be accessIble by t he Com pa ny.

The fair value of an asset ora liability is measured using the assumptions that market participants would use when p rid n g th e a sset or I iab iiity, a s s u m i ng that ma rket partici pa nts act i n thei r best eco n o m ic i ntere st.

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

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, which gives highest pnority to quoted prices in active markets and the lowest priority to unobservable in puts.

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

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

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

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

5,4. Property, Plant and Equipment

The Company has elected to continue With the carrying value of its Property Riant & Equipment (PPEjrecognised a s of April 1,2016 ( I ran sition date} measured as per the Previous GAAP and used that ca rry ing va I ue as its dee med cost as on the transition date as per Para D7 AAof ind AS 101.

Property, Plant a Equipment (PPE) comprises of Tangible assets and Capital Work in progress. PPE are stated at cost, net of tax/duly credit availed, if any, after reducing accumulated depreciation and accumulated impairment lasses, if any, until the date of the Bala nee Sh eet. Th e cost of PP E comp ri ses of its p urchase price or its construction cost (net of ap pi i ca hie ta x cred i t, if a n y), a ny cost di rect|y attributabl e to bri n g the a sset to the loco I ion a nd condi Lion necesso ry for it to be ca pa bl e o f opera ti n g in the ma nner inte nded bythemanag eme rrt, Direct co sts a re ca pi tel i zed until the asset is ready for use and includes borrowing cost capitalized in accordance with the Company''s accounting policy.

Capital work in progress includes the cost of PPE that are not yet ready for the intended use.

An item of PPE is de-reCognized upon disposal Or when no future economic benefits are expected 10 arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of PPE is determined as the difference belween the sales proceeds a nd the carry ing amount of the asset a nd is re cognized in the Statement of Profit and Loss.

Depreciation

Depreci ati on is prov id ed on t h e cost of P ro perty, Pla nt a nd E q u ip me nt loss their estimated res id ua I valu e. u s i n g th e stra ig ht- H n e m ethod ove r th e useful I ife of P PE as stated i n the Schedu I e 11 to th e Com pa nie s Act, 2013 or based on intemar technical evaluation. The management believes that the useful lives as assessed best represent the period ove r which m arcageme n t ex pe cts to u se these assets.

Useful lives of following class of PPE are as prescribed under Part C of Schedule II to the Companies Act. 2013. which are as under; -

	Asset Description	Assets Useful fife (in Years}
	Factory Building	30
	Building other than Factory Building	60
	Lease Hold land	99
	Data Processing Equipment	6
	Plant and Machinery	10
	Furniture and Fixtures	10
	Vehicle	a

The estimated useful lives, residua! values and depreciation method are reviewed on an annual basis and if necessary, changes in estimates are accounted for prospectively,

Depreciation on additions/delet''ons to PPE during the year is provided for on a pro-rata basis with reference to the date of add itionsf deletions.

Depreciation on subsequent expenditure on PPE arising on account of capital improvement or other factors is provided for prospectively over the remaining useful life.

5.5. Intangible Assets

The Company has elected to continue with the carrying value of its Intangible assets recognized as of April 1, £016 (transition date) measured as per the Previous GAAP and used that carrying value as its deemed cost as on the transition date as per Para D7AAof IndAS 101.

Intangi ble assets with fin ite u sef u I life acq uired sepa rate I y, are recogn ized only if it is p ro ba bl e th at fut u re e conom i c benefits that are attributable to the assets will flow to the enterprise and the cost of assets can be measured reliably. The intangible assets are recorded at costand are earned at cost less accumulated amortization and accumulated imps i r ment losses, if an y.

Intangible asseis are amortized over the estimated period of benefit, not exceeding five years.

intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognized in the Statement of Profit and Loss when the asset is derecognized.

Intangible assets are amortized an Straight Line Method from the dale they are available for use, over the useful Ii ves of the assets as estimated by the Management as under:

Asset Description	Assets Useful life (in Years)
Software	5

5.6. Impairment of non-financial assets

The Company revi ews at each re po rt i n g pe ri od wheth er the re i s any i n dicatio n tha t an asset ma y be i mpa i red. If any such ind i ca tion exists, th e Compa ny esti ma tes the recove ra ble a mount of the a sset. If s u ch recove ra bfe a m ou n t of the asset or Ihe recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount the carrying amount is reduced to ite recoverable amount. The reduction is treated as an impairment loss and is recognized iff the Statement of Profit S Loss. If at the reporting period, there is an indication that there is change in the previously assessed impairment Toss, the recoverable amount is reassessed and the asset is reflected at the l o wer of its recove rabl & a mo u nt a nd the carrying amount t h at is d etern l i ned, ne t of d ep reciation .had no impairment loss b ee n recog n i zed for the asset in pri or yea rs,

Recovers ble a moun t i s (h e hig hg r of fa i r va l Lie less cost s of d i sposol arid vatu e i n u se -1 n assessing value in use, tha 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 be en adj Listed.

An a ssessm e nt i s m ad e at th e end of each re po rti n g pe riod to se e if there a re any i n drcati o n s th at inn p airm ent losse s recognized earlier may no longer exist or may have come down. The impairment loss is reversed, if there has been a change in the estimates which has the effect of increasing the asset''s recoverable amount since the previous impairment Joss was recognized. If il is so, the carrying amount of the asset is increased to the lower of its recoverable amount and the carrying amount that has been determined, net of depreciation, had no impairment loss been recog ni?ed for the asset in prior years. After a reversal, the depredation charge is adjusted in Tutu re periods to allocate the asset''s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life Reversals of Impairment loss a re recognized In the Statement of Profit and Loss.

S.6. Inventories

Inventories are vaiued at lower of cost and net realizable value after providing for impairment and other losses, whore considered necessary. The basis of determining the value of each class of inventory is as follows:

Inventories	Cost Formulae
Raw Material, packing materaIs	Lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost, Cost is determined on a fir$t-in-first out basis. Customs duty on imported raw materials (excluding stocks in the bonded warehouse) is treated as part of the cost of the inventories. Raw material, store and spares: Cost on FIFO basis or net realizable value, whichever is lower.
Raw Material (Goods in transit)	At invoice price
Wort: -in-progress	Lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on norma! operating capacity.
Finished Goods (Including in Transit)	At Cost, comprising of raw materia) cost, labour cost and appropriate proportion of manufacturing expenses and overheads.
Traded goods	Lower of cost and net realizable value. Cost includes the purchase price and other associated costs directly incurred in bringing the inventory to its present location. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the Sale.
Waste and Scarp	Waste and swap are not separately valued being insignificant in value.
Net realizable value is the estimated selling price In the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5,8. Employee Benefit

ft) Defined Contribution Plan

Retirement benefit in the form of Provident Fund and Superannuation fund, a defined contribution scheme a n d the contri butio ns a re cha rge d to the state m ent of profit and loss for th e yea r when the contri butio n s to th e government funds are due. The Company has no obligation other than the contribution payable to provident fund authorities and superannuation fund

Hi) Defined Benefit Plan

The employees’ gratuity fund scheme is the Company''s defined benefit plan. The present value of the obligation under the said defined benefit plan is determined on the basis of actuaries valuation from an independent actuary using the Projected Unit Credit Method. The gratuity benefit of the Company is administered by a trust formed for this purpose through the group gratuity UC scheme. Re measurements comprising of actuarial gain and losses, the effect of the asset ceiling and the return on plan assets (excluding amount included in net interest on the net defined benefit liability), are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period i n wh ich they occ u r

Re -meas ureme n ts are not re cia ssified to the statem ent of p rofit an d ioss in s u bseq uent periods.

Pa st se rvi ce cost is recog nized in th e statement of profit A loss i n the pe riod of pi an a mend m ent.

Met in teres t is ca leu la ted by applyi ng th e discounted rate to the net d efmed ben efi 1.1 iab i I i ty o r asset.

(iii) Short Term Employee Benefits

Accumulated leave, which is expected to bo utilized within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. Short -term employee benefits are expensed as the related service ss provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(iv) Other Long Term Employee Benefits

The Company treats accumulated Feove expected to be carried forward beyond 12 months, os long-term employee benefit for measurement purposes Such long-term compensated absences are provided for based on the actuarial valeation using the projected unit credit method at the year-end. ActuanaI gains/losses a re i m m ed iateiy taken to the stateme nt of p rofit a n d loss a nd a re n of deferred.

5.9. Foreign Exchange Transactions

Transactions in currencies other than the Company’s functional currency (foreign currencies) are recognized at the spot exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated using closing exchange rate prevailing on the Fast day of the reporting period.

Mon-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported u s i n g th e exchang e rate at the date of fra nsaction.

Exchange differences on monetary items are recognized in the Statement of Profit and Loss in the period in which they arise.

5.10 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instru m ent of a n othe r enti ty.

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual p rovi s ions of th e i n strume n ts.

a. Initial Recognition:

F i na n d af assets and financial (iabil ifies a re in itia 11 y measured at f a i r val Lie. Tra n sa ebon costs th at a re d i recti y attributabte to the acquisition or issue of financial assets and financial liabilities (other than financial assets and tins ncial Ha hi I itie s at Fa i r Val ue th ro u gh Profit o r Loss) a re ad de d to or dedu cted from the fa ir va I u e of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recog nized in th e State ment of P rofiit a n d Loss.

b. Classffi teat ion and Subsequent Measurement: Financial Assets

The Company classifies financial assets as subsequently measured at amortized cosh fair value through other comprehensive income ("FVTOCI"} or fair value through profit or loss ("FVTPL") on the basis of following:

• the entit^ business moidel for managing tlWftna rtcial assets; and

• the cont ract Li el cash fl ow ch a racteri sti cs of fhe financia I assets.

c. Amortized Cost:

A financial asset shall be classified and measured at amortized cost, if both of the following conditions are met:

• the financial asset is held within a business model whose obiective is to hold financial assets 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 p ay m ents of prin c i pa! a nd i nte rest on the pn n c i pa I amo u nt oirtsta n d i n g,

d. Fair Value through Other Comprehensive Income (FVTOCI):

A financial asset shall be classified and measured at FVTOCI, if both ofthe following conditions are met:

• the financial asset 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.

e. Fair Value through ProfitorLoss (FVTPL):

Afinancial asset shall be classified and measured at FVTPL unless it is measured at amortized cost or at FVTOCI.

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

f. Impairment of financial assets:

in accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recog nit ion of impairment toss on the following financial assets and credit risk exposure:

a) Financial Asse is a ro mea s u red a I amortized cost e ,g.. d e posi is, trade re ce iva ble sand bank balance

S imp!ifled Approach

The Company follows ''simplified approach'' for recognition of impairment loss allowance on Trade Receivables.

The application of simplified approach does not require the Company to track changes in cred''t risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition

General Approach

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whethe r the re ha s been a si gn if ica n t i ncre ase i n the cred i t risk s i n ce in it ia I recog n it ion. I f cred i t risk ha s not increased significantly, 12-months ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12-months ECL.

L ifetime ECL are the expected cred it los se s resu I ting from all po ssi ble default events over the expected life of a financial instrument. The 12-months ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months afterthe reporting date.

g. Trade receivables

A receivab le Is classified as a ''trad e rece iva ble'' if it i s in respect to th e amo unt due from customers on account of goods sold or services rendered in the ordinary course of business. Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method, less provision for impairment. For some trade receivables the Group may obtain security in the form of guarantee, security deposit or letter of credit which can be called upon if the counter party is in default under the te rms of t h e ag reem e nt. I impairment i s m ade on t h e ex pected credit tosses, which a re the p rese nt value of the shortfalls o ver the expected life of financial assets. The estimated impairment losses are recognized in a separate provision account and the impairment losses are recognized in the Statement of Profit and Loss within otherexpenses.

For foreign currency trade receivable_r impalrment is assessed after reinsiatement at closing rates.

Subsequent changes in assessment of impairment are recognized in provision for impairment and changes in impairment losses are recognized in the Statement of profit and Loss within otherexpenses.

individual receivables which are known to be uncollectible are written off by reducing the carrying amount of trade receivable and the amount of the loss is recognized in the Statement of Profit and Loss within other expenses.

h. Derecognition of financial assets:

The Company derecognizes a financial asset when the contractual right to receive the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of th e asset to a nother party. If the Com pa ny neither Ira n sfe rs n o r reta i ns su bsta nti ally a 11 the nsks and rewa rd s of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues fo recognize the financial asset and a I so re cognizes a collateralized borrowing for the proceeds received.

On derecognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or toss if such g a in o r I oss would have oth erwise bee n recog nized i n profit or loss on d i s posa I of that f inancia I as set.

On derecognition of a financial asset other than in its entirety (e.g__; when the Company retains an option to repurchase part of a transferred asset), the Company allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or loss allocated to it that h ad been recog n ize d in ot h er co m prehensi ve i ncome is recog n i ze d i n p rofit or loss if such g ain or l oss wo u Id h ave ot h erw ise bee n re cog n i ze d in profit o r I oss on d i sp osa! of that frna nd ai a sset. A cumu lative ga i n o r loss that had been recognized m other comprehensive income is allocated between the part that continues to be recog nized a nd the part tha t i s no I onge r recog n i z ed on th e basi s of the re I ati ve fair val ue s of those pa rts.

5.11. Classification and Subsequent Measurement:

Financial liabilities:

Financial liabilitiesare classified aseither financial liabilities at FVTPL or''other financial liabilities'', a Financial Liabilities at FVTPL:

Financial liabilities are classified as at FVTPL when the financial trability is held for trading or are designated upon initial recognition as FVTPL

G a i n s or Losses o n lia bi I i ti es he I d f o r tra ding a re re cogn ized in th e State m ent of Profit a n d Lo ss.

b. Other Financial Liabilities at amortized cost:

Other financial liabilities (including borrowings and trade and oiher payables) are subsequently measured at amortized cost using the effective interest method.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period, The effective interest rate is the r&te that exactly discounts estimated future cash payments (including ail fees and points paid or received that form an integral pari of the effective interest rale, Iransaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition,

c. Financial liabilities and equity instruments:

• Classification as debt or equity.

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

* ^Fquittfjo St.rum e n]s:

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deduclingall of its liabilities.

Equity instruments issued by a Company are recognized at the proceeds received.

d. Derecognition of Financial Liabilities:

A financial liability is derecognized when the obligation under the liability is discharged or canceled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The d ifference i n the res peeti ve carryi ng amo unts is re cog n izcd i n the Stateme n t of Profit a nd Loss.

e. Offsetting:

F i na n c ial as sets and financial liabil itie s are offset, a nd the n et a mo u nt is re ported i n th e 8 ala nee S h eet whe re there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

5.12. Leases

As a lessee

The Company''s lease assets primanly 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 in exchange for consideration. To assess whether a contract conve ys the rig ht to co n tro 11 h e u s e of an id e ntifle d a sset, the Compa ny a ssess es wheth er:

-the contract involves the use of an identified asset.

- the Company has substantially all the economio benefits from use of the asset through the period of the lease and ¦ t h e Co m pa n y hasjflfa right to direct th e u so ofjlje ass fit

At the date of commencement of the tease, the Company recognizes a 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 and corresponding Right-of-use Asset. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straighl-line basis over the term of the lease,

The Right-of-use Assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any tease payments made at or prior to the commencement dote of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impai rment losses a nd adj u sted fo r a ny re m ea s u re m ent of the I ease I i ab i I ity

Right-of-use Assets are depreciated on a straight-line basis over the shorter of the tease term and useful life of the underlying asset.

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 rales In the country of domicile of these leases. Lease liabilities are remeasured with a correspond i ng adjusim ent to th e re lated rig ht of u se a sset if the C ompany c h an ges its assessme nt if whethe r it wi 11 exercise an extension ora termination option.

Asa lessor

The Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially alt the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. Another leases are classified as operating leases.

Lease income from operating lease is recognized in the statement of profit and loss on straight Sine basis over ihe Lease term.

5.13. Borrowing Costs

B o rrow in g costs are inte re st a nd ancilla ry costs incu rred i n con ne cti on with th e arran ge m ent of borrowi n gs.

General and specific borrowing costs attributable to acquisition and construction of qualifying assets is added to the cost of the assets upto the date the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period to get ready for its intended use Capitalization of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted. All other borrowing costs are recognized sn the Statement of Profit and Loss in the period in which they are incurred.

5.14. Statement of Cash Flows

Statement of Cash flows a re reported using the indirect method, whereby 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 are segregated into operating, investing and financing activities.

5.15. Income Taxes

J ncome tax expense re presents Ihe su m o f th e cu rre nl tax a n d d efe rred ta x.

a. Current Tax

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

b. Deferred Tax

De Ferred tax is racogn ized on tamp orary dif fe re n cos b etwee n the ca rrying amo u nts of assets a nd li a b i I i L ie s in the Financial Statements arid the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

The carryi ng amount of d efe rre d ta x assets i s rev iewed at th e end of ea ch reporting p eriod an d reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the defe rred ta x asset to b e utilized

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in wh i Ch the liabil iiy is settled o r the asset re a li zed, ba se d o n ta x ra tes (and tax laws) that ha ve been e na cted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets rejects 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.

c. Current and Deferred Tax Expense for the Year

Current and deferred tax expense is recognized in the Statement of Profit and Loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

5.16. Revenue Recognition

The Company derives Revenue primarily from sale of manufactured and traded products being "Tungsten Carbides Products .

Revenues from sale of goods or services are recognized upon transfer of control of the goods or services to the customer m an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services.

Revenue is measured at the transaction price of the consideration received or receivable duly adjusted for variable consideration & customer’s right to return the goods and the same represents amounts receivable for goods and services provided in the normal course of business. Revenue also excludes taxes collected from customers. Any retrospective revision in prices is accounted for in the year of such revision.

Revenue is recognized at 3 point in lime on accrual basis as per the terms of the contract, when there is no uncertainty as to measurement or collectability of consideration. When there is uncertainty as to measurement or ultimate collectability, revenue recognition is postponed until such uncertainty is resolved.

The contract as set o r a co n tract liability is recogn ize d wh en e ither pa rty to a contra ct ha s pe rform ed_; de pe n ding on the relationship between the entity''s performance and the customer''s payment. When the Company has a present unconditional right to consideration, it is recognized separately as a receivable.

Sale of products exc I u de s amo unts of in direct taxe s on sa I es.

interest Income

I nterest o n inve stme nts i s booked o n a ti me proportio n basi s taki ng into accou n t the a mou nts invested and th e rate of interest.

Dividend Income

D iv id end incom e i s recog nrzed wh en th e ri g h t to receive the same i s estab I ishe d.

Other Income

Other income is recognized on accrual basrs except when realization of such income is uncertain.

5.17. Earnings PerShare

tiasic earnings per share is computed by dividing the profit / (los$jaftertax with the weighted average number of eq u ity s h a res o utsta ndingduringfhe year. Diluted e arn ing s pe r sha re i s com puted by divi ding the profit7 (loss) after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive po te ntS u i eq u i ly S h a res, wi th the a gg reg ate of we ig hted a vere ge n u mbe r 0 f equ i ty Sti ares con S id ered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

5.18 Segment Reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organization and management structure. The operating segments are the segments for which separate finanda- information is available and for which operating profit I loss amounts are evaluated regularly by the Chief O perati ng Decisio n Ma king Body (CO DM) i n d ecsd i n g h ow to a 11 ocate re source s and i n asse ssing perfo rma n ce.

Th e Co m pany operates i n one re po rtab le fa u s i ness s eg m ents i. e., "Tungsten Ca rb id es Prod u cts".

5.19.Provision, Contingent Liabilities and Contingent Assets

Provisions are recognized 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 obli gation, and is rella bl e estimate can be mad e of the amo u nt of th e obiigati on.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking inti account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, it carrying a mou nt is t h e p resent va lue oft h ose cash f I ows (wh en the effect of th e ti me va I ue of money is ma ferial). If the ti me value of money is material. Provisions are discounted using pre-tax discount rate and when discounting is used, increase i r> the p rovis i on wIth the pa ssag e of ti me is recog n i zed as a fin ance cost i n the s ta teme n t of Profit and Loss account.

A contingent liability is (a) a possible obligation that arises from past events and whose existence will be confirmed o n l y by the occurre nee or non -occurre nee of on e or m ore U ncerta in future eve nts not whol I y with i n the con trol of I he entity or (to) a present obligation that arises from past events but is not recognized because (i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or (ii) the amount of the obligation cannot be measured with sufficient re liability.

Contingent liabilities are disclosed in the Financial Statements by way of notes to accounts, unless possibility of an outflow of resources embodying economic benefit is remote.

A contmgo n t a ssot i s a possible a sset that a ri ses from th e past ove nts a nd whose exi stc n ce will be confi rme d o n I y by the occu rrence o r non- occu rrence of one or more of u needs i n futu re eve nfg not w h oily within th a control of the entity.

Contingent assets are disclosed in the Financial Statements by way of notes to accounts when an inflow of economic benefits is probable.

5.20 Critical accounting judgments, assumptions and Kay sources of estimation uncertainty:

The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities at the date of the financial statements. Estimates and assumptions are continuously evaluated and are based on management''s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, Uncertainly a bout these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or I i ah i I it ie s affected fn fut u re period s.

Key source of judgments, assumptions and estimates in the preparation ot the Financial Statements which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are in respect of useful lives of Property, Plant and Equipment, impairment, employee benefit obligations, provisions, p revision for i n come tax_f measu rente nt of d efe rred tax assets a nd conti ng ent a s sets & lia biliti

Information about estimates and assumptions that have the significant effect on recognition and measurement of assets, llab ilili es, i ncomo andexpensos.is provid ed b alow. Aetna I results may differ from these esti m ates.

(i) Determination of the estimated useful Fife of tangible assets and the assessment as to which components of the cost may be capitalized.

Useful life of tangible assets is based on the life prescribed in Schedule I) of the Companies Act. 2013. In cases, where the useful life is different from that prescribed in Schedule II, it is based on technical advice, taking into account the nature of the asset, estimated usage and operating conditions; of (Fie asset, past history of replacement and maintenance support. An assumption also needs to be made, when the Company assesses, whether an asset ma y be ca pitalized and which co m po ne nts of th e cost of th e a sset m ay be cap ita I ize d.

(iij Recognition and measurement of defined benefit obligations:

The cost ot the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations being carried out at reporting date. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate. Salary escalation rate, expected rate of return on asset 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.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate, the management con aiders the inters st rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation. The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for the respective countries.

(Ilf) Recognition of income taxes:

Si g n i rica n t jud g mente a re invbIved i n de te rrnin i ng the p rovi sion for inco m e ta xes, i nd ud i ng a mou n t e xpected to be paid/recovered for uncertain lax positions as also to determine the amount of deferred tax that can be recognized, ba s ed upon t h e likely ti mi ng a n d the levs I of f utu re ta xa ble profits.

(iv) Recognition of Deferred tax assets:

Deferred Tax Assets (DTA) are recognized for all the deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. Ma nag erne nt j ud gme nt i s req uired to d eterm i ne th e a mou n t of defe rred tax assets t h at can be recog n i zed .based UpOht ho likoly timingand the level Of Fu tu re tax ab le p refits.

(vj R eco g n iti on a n d meas u rente nt of provisions:

Provisions and liabilities are recognized in the period whan it becomes probebte that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgment to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regu I arly a nd rev ised to ta ke accou n t of cha ng i n g fa cts a n d circu m sta n ces.

(vfj Determining whether anarrangementcontainsa lease:

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease. At the inception or on reassessment of an arrangement that contains a lease, the Company separates payments and other consi do re (ion req uired by the arrange men t into th ose for the lease and tbu se for i he other el aments ba sod on their relative fair values. If the Company concludes far a finance Tease that, it is impracticable to separate the

pa y m ents reisa bly, th p n a ri asset an d a! la bility a re recogn ized at a n a m ou n t equa I to the f a i r va I ue of th e und e rl yi n g asset'' subsequently, the liability is reduced as payments are made and an imputed finance cost on the liability is recognized using the Company''s incremental borrowing rate. In case of operating lease, the Company treats all payments under the arrangement as lease payments.

{vfi) C ont ingont Liabi I itie s a nd A sset s:

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal, contractual, land access and other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail lo occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgment and the use of estimates rega rd i n g t h e outcome of future c vents.

e f or i m pa frme nt of trade re ce iva b I e: The expected credit loss is ma i n I y ba sed on the ag ei n g of th e

receivable balances and historical experience. The receivables are assessed on an individual basis assessed for impairment colleclively, depending on their significance. Moreover, bade receivables are written off on a casedo-case basts if deemed noi lo be co lie ctib le o n the assess ment of t h e u nd erlying fads and ci rcumstance s,

fix) Impairment of non-fingngial assets:

Evaluation for impairm ent req uires use of jud gment, esti m ates a nd assu mption s,

The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant decline in asset''s value, economic or legal environment, market interest rates etc.) and internal factors (obsolescence or physical damage ot an asset, poor economic performance of the idle assets etc.) which could result in significant change to recoverable amount of the Property, Plant and Equipment and such assessment is based on estimates, future plans as envisaged by Company.

5.21 Recen t prono u n ce ments

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under C ornp an ies (I nd i an Account irig Sta n da rd s) R u I es a s i ssued from time to time. For th e year ended 31st March 2024 MCAhas not notified any new standards or amendments toihe existing standards applicable to the Company.

---

Mar 31, 2018

Note No. 1 1.1 Significant Accounting Policies

A) Plant, Property & Equipment:

All the property, plant and equipment’s have been carried at value in accordance with the previous GAAP. The Company has elected these value as deemed cost at the date of transition to Ind AS, i.e.IstApril 2016 as permitted under Ind AS 101. Property, Plant & Equipment are stated at original cost net of tax/ duty credit availed, less accumulated depreciation and accumulated impairment losses, if any. All costs, including finance costs incurred up to the date the asset is ready for its intended use. When significant parts of property, plant and equipment are required to be replaced at intervals, the company derecognizes the replaced part, and recognizes the new part with its own associated useful life and it is depreciated accordingly. All the other repair and maintenance costs are recognised in the statement of profit and loss as incurred. The present value of the expected cost for the decommissioning of the asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. Property, Plant & Equipment are eliminated from the financial statements either on disposal or when retired from active use. Losses arising in the case of retirement of property, plant and equipment and gains and losses arising from disposal of property, plant and equipment are recognised in the statement of profit and loss in the year of occurrence. Subsequent expenditure related to an item of Property, Plant & Equipment is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing Property, Plant & Equipment, including routine repair and maintenance expenditure and cost of replacing parts, are Changed to the statement of profit and loss for the period during which such expenses are incurred. The Company adjusts exchange differences arising on translation/ settlement of long-term foreign currency monetary items pertaining to the acquisition of a depreciable asset to the cost of the asset and depreciates the same over the remaining life of the asset. Gains or losses arising from disposal of Plant, Property and Equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is disposed.

B) Depreciation & Amortization:

a. Depreciation on property, plant & equipment is provided over the useful life of assets as specified in schedule II to the companies Act, 2013. In case of Property, plant & Equipment that are added/ disposed off during the year depreciation is provided on pro-rata basis with reference to the month of addition/ deletion. Leasehold improvements are being depreciated over the lease term or estimated useful life whichever is lower. Used assets acquired from third parties are depreciated on a straight line basis over their remaining useful life of such assets.

b. Depreciation methods, useful life and residual values are reviewed at each reporting date and adjusted if appropriate.

C) Intangible Assets:

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortised over the irrespective individual estimated useful lives on a straight line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. The useful lives of intangible assets are assessed as either finite or infinite. 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 is considered to modify the amortized period or method, as appropriate, and are treated as changes in accounting estimates. Intangible assets with finite useful life are amortized on straight line basis over the useful economic life and assessed for impairment whenever there is any indication that the intangible asset may be impaired. Intangibles with indefinite useful life, if any are not amortized, but are tested for impairment annually, either individually or at the cash generating unit level.

D) Impairment of Non-Current Assets:

As at each balance sheet date, the Company assesses whether there is an indication that an asset may be impaired and also whether there is an indication of reversal of impairment loss recognized in the previous periods. If any indication exists, or when annual impairment testing for an asset is required, if any, the Company determines the recoverable amount and impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

Recoverable amount is determined:

In the case of an individual asset, at the higher of the fair value less cost to sell and the value in use; and

In the case of cash generating unit (a group of assets that generate identified, independent cash flows), at the higher of cash generating unit’s fair value less cost to sell and the 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 risk specific to the asset. In determining fair value less cost disposal, recent market transactions are taken in to account. Impairment losses of continuing operations, including impairment on inventories, are recognized in the statement of profit and loss. Intangible assets with indefinite useful lives are tested for impairment annually, as appropriate, and when circumstances indicate that the carrying value may be impaired.

E) Cash and Cash Equivalents:

Cash and cash equivalents comprise cash on hand and demand deposits with banks which are short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk.

F) Inventories and WIP:

Inventories are valued at the lower of costand net realizable value. Costs incurred in bringing each product to its present location and conditions are accounted for as follows:

a. Raw materials and packing materials:

Lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a first-in-first out basis. Customs duty on imported raw materials (excluding stocks in the bonded warehouse) is treated as part of the cost of the inventories. Raw material, store and spares: Cost on FIFO basis or net realizable value, whichever is lower.

b. Work-in-progress and finished goods:

Lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity.

c. Traded goods:

Lower of cost and net realizable value. Cost includes the purchase price and other associated costs directly incurred in bringing the inventory to its present location. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

d. Waste and scrap are not separately valued being insignificant in value.

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

G) Retirement benefits:

a) Short Term Employee Benefits:

Accumulated leave, which is expected to be utilised within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. Short - term employee benefits are expensed as the related service is provided. Aliability is recognised forthe amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

b) Post-Employment Benefits:

i) Defined Contribution Plans:

Retirement benefit in the form of Provident Fund and Super annuations, a defined contribution scheme and the contributions are charged to the statement of profit and loss for the year when the contributions to the government funds are due. The Company has no obligation other than the contribution payable to provident fund authorities and super annuation.

ii) Defined Contribution Plans:

The employees’ gratuity fund scheme is the Company’s defined benefit plan. The present value of the obligation under the said defined benefit plan is determined on the basis of actuarial valuation from an independent actuary using the Projected Unit Credit Method. The gratuity benefit of the Company is administered by a trust formed for this purpose through the group gratuity LIC scheme. Remeasurements comprising of actuarial gain and losses, the effect of the asset ceiling and the return on plan assets (excluding amount included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur.

Re-measurements are not reclassified to the statement of profit and loss in subsequent periods.

Past service cost is recognised in the statement of profit & loss in the period of plan amendment.

Net interest is calculated by applying the discounted rate to the net defined benefit liability or asset.

c) Other Long-Term Employee Benefits:

The Company treats accumulated leave expected to be carried forward beyond 12 months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/losses are immediately taken to the statement of profit and loss and are not deferred.

H) Foreign Currency:

Functional and Presentation Currency

Consolidated financial statements have been presented in Indian Rupees, which is the Group’s functional currency and Group’s presentation currency. Each entity in the Group determines its own functional currency (the currency of the primary economic environment in which the entity operates) and items included in the financial statements of each entity are measured using that functional Currency.

Transactions and Balances:

The transactions in foreign currency are accounted at the exchange rate i.e. custom rate prevailing on the date of transaction. Exchange fluctuation between the transaction date and settlement date in respect of transactions are transferred to exchange rate difference account and written off to the statement of profit & loss. Exchange difference that arise on settlement of monetary items or on reporting at each balance sheet date of the Company’s monetary items at the closing rate are recognized as income or expenses in the Statement of Profit and Loss in the period in which they arise.

Current assets and current liabilities involving transactions in foreign currency are converted at the exchange rates prevailing on the date of Balance Sheet. Any profit and loss arising out of such conversion is charged to the Statement of profit and loss.

Non-monetary items i.e. investments are converted at the rate prevalent on the date of transaction.

I) Financial Instruments:

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

J) Financial Assets:

(i) Classification

Financial Assets comprises of Investments in Equity and Debt securities, Trade Receivables, Cash and Cash equivalents, Borrowings and other Financial Assets.

(ii) Initial recognition measurement:

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

Financial Assets are classified, at initial recognition, as financial assets measured at fair value or as financial assets measured at amortized cost.

(iii) Subsequent Recognition

a) Financial Assets measured at amortized cost

Financial assets are measured at amortized cost when asset is held within a business model, whose objective is to hold assets for collecting contractual cash flows and contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest. Such financial assets are measured at amortized cost using the effective interest rate (EIR) method.

The EIR amortization is recognized as finance income in the Statement of Profit and Loss.

Trade receivables

A receivable is classified as a ‘trade receivable’ if it is in respect to the amount due from customers on account of goods sold or services rendered in the ordinary course of business. Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method, less provision for impairment. For some trade receivables the Group may obtain security in the form of guarantee, security deposit or letter of credit which can be called upon if the counterparty is in default under the terms of the agreement. Impairment is made on the expected credit losses, which are the present value of the shortfalls over the expected life of financial assets. The estimated impairment losses are recognised in a separate provision account and the impairment losses are recognised in the Statement of Profit and Loss within other expenses.

For foreign currency trade receivable, impairment is assessed after reinstatement at closing rates.

Subsequent changes in assessment of impairment are recognised in provision for impairment and changes in impairment losses are recognised in the Statement of Profit and Loss within other expenses.

Individual receivables which are known to be uncollectible are written off by reducing the carrying amount of trade receivable and the amount of the loss is recognised in the Statement of Profit and Loss within other expenses.

Subsequent recoveries of amounts previously written off are credited to other Income.

b) Financial Assets measured at fair value through other comprehensive income (FVTOCI)

Financial assets under this category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income.

c) Financial Assets measured at fairvalue through profit or loss (FVTPL)

Financial assets under this category are measured initially as well as at each reporting date at fair value with all changes recognized in profit or loss.

(iv) De-recognition of Financial Assets:

Afinancial asset is primarily derecognized when the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.

1.2) Financial Liabilities:

(i) Initial recognition and measurement:

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

The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, security deposits and other deposits.

(ii) Subsequent measurement:

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk is recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity.

All other changes in fair value of such liability are recognised in the statement of profit or loss.

(iii) Loans and Borrowings:

Interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. This category generally applies to borrowings.

(iv) Trade and Other Payables:

A payable is classified as ‘trade payable’ if it is in respect of the amount due on account of goods purchased or services received in the normal course of business. These amounts represent unpaid liabilities for goods and services provided to the Group till the end of financial year. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. Trade payables are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest rate method.

(v) Derecognition of Financial Liabilities:

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

K) Borrowing Costs:

Borrowing costs that are directly attributable to acquisition, construction or production of a qualifying asset (net of income earned on temporary deployment of funds) are capitalised as a part of the cost of such assets. Borrowing cost consists of interest, other cost incurred in connection with borrowings of fund and exchange differences to the extent regarded as an adjustment to the borrowing cost. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs. All other borrowing costs are charged to the Statement of Profit and Loss.

L) Taxes:

(a) Current Income Tax:

(i)Tax on income for the current period is determined on the basis on estimated taxable income and tax credits computed in accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments / appeals.

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

Current tax assets and liabilities are offset only if, the Company:

has a legally enforceable right to set off the recognised amounts; and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

(ii) Current income tax relating to items recognised directly in equity is recognised in equity and not in the statement of profit & loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

(b) Deferred Tax:

(i) Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts forfinancial reporting purpose at the reporting date.

(ii) The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax liabilities are always provided for in full. Deferred tax assets are recognized to the extent that it is probable that they will be able to be offset against future taxable income. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realization, provided they are enacted or substantively enacted at the balance sheet date.

Most changes in deferred tax assets or liabilities are recognized as a component of tax expense in the income statement. Only changes in deferred tax assets or liabilities that relate to a change in value of assets or liabilities that is charged directly to equity are charged or credited directly to equity.

Sales / value added taxes I Goods and service Tax:

Expenses and assets are recognised net of the amount of sales/ value added taxes paid/ Goods and service Tax, except:

When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the tax paid is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable.

When receivables and payables are stated with the amount of tax included in the net amount of tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

Minimum Alternate Tax:

Minimum Alternate Tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognizes MAT credit as an asset in accordance with the Guidance Note on “Accounting for Credit Available in respect of Minimum Alternative Tax underthe Income-tax Act, 1961”, the said asset is created by way of credit to the statement of profit and loss and shown as “MAT Credit Entitlement.” The Company reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.

M) Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made.

The specific recognition criteria described below must also be met before revenue is recognized.

(a) Sale of products:

As stated in Ind AS 18, Revenue from sale of products is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. The Company collects sales tax and value added tax (VAT) and Goods and Service Tax (GST) on behalf of the government and, therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from revenue. Excise duty deducted from revenue (gross) is the amount that is included in the revenue (gross) and not the entire amount of liability arising during the year.

(b) Other Income:

Interest Income

Interest income is recognized on accrual basis at applicable interest rates. For all financial instruments measured at amortized cost, interest income is recorded using the effective interest rate (EIR), which is the rate that exactly discounts the estimated future cash payment or receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial assets interest income is included in other income in the statement of profit & loss.

Dividend Income

Dividend income is accounted for when the right to receive the same is established, which is generally when shareholders approve the dividend.

N) Dividend/Distribution:

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

O) Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the year is adjusted for events such as bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares) that have changed the number of equity shares Outstanding, without a corresponding change in resources.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company (after adjusting for interest on the convertible preference shares) by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares, that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

P) Segment Reporting:

Identification of segments

The Company’s operating businesses are organised and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and services to different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the Company operates

Q) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized if as a result of a past event the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are not recognized but disclosed in the Financial Statements when economic inflow is probable.

(a) Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

(i) the Company has a present obligation as a result of past event,

(ii) a probable outflow of resources is expected to settle the obligation; and

(iii) the amount of obligation can be reliably estimated.

If the effect of time value of money is material, provisions are discounted using current pre-tax rate that reflects, when appropriate, the risk specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Where the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.

(b) Contingent liabilities are disclosed in case of:

(i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation,

(ii) a present obligation arising from past events, when no reliable estimate is possible,

(iii) a possible obligation arising from past events where the probability of outflow of resources is not remote.

(c) Contingent assets are neither recognized nor disclosed.

Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.

Provisions and Contingent Liabilities are recognized / disclosed after an evaluation of the facts and legal aspects and the amounts are reviewed on the Balance Sheet date.

---

Mar 31, 2016

Note No. 27

STATEMENT OF ACCOUNTING POLICIES BASIS OF ACCOUNT

The financial statements are prepared under historical cost convention on an accrual basis in accordance with the generally accepted accounting principles in India, the accounting standards prescribed under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts)Rules 2014.

FIXED ASSETS AND DEPRECIATION

All fixed assets are stated at their original cost of acquisition / installation which includes taxes, duties (net of CENVAT and set off availed) and other identifiable direct expenses. Depreciation for the year has been provided as per useful lives specified in Schedule II of the Companies Act, 2013. Depreciation on addition/deduction during the year is charged on pro-rata basis. Leasehold land is amortized over the period of the lease. Depreciation on Technical knowhow has been provided as per remaining useful life of the assets.

INVESTMENTS

Investments are stated at cost. As per information received from management these are primarily long term investments, hence diminution in value has not been considered.

INVENTORIES

a) Finished Goods

Valued at cost inclusive of taxes and duties paid/payable or market value whichever is less. Valuation is based on first in first out basis.

b) Raw Materials and Consumables

Valued at landed cost or realizable value whichever is less.

c) Work-in-Progress

Value at cost incurred till the stage of completion as determined by the Management. In respect of sintered T.C.(scrape) the stock is valued at cost incurred till the previous stage at which this material is generated, In case the material is sold .the valuation is restricted to the value realized at a subsequent date. Valuation is based on actual cost of production or realized value at stage whichever is lower.

d) Due allowance is estimated and made for defective and obsolete stock based on past experience of the Company.

5. RETIREMENT BENEFITSS

a) Retirement benefits to employees comprise payment under defined contribution plan Superannuation, Gratuity through Group Schemes of Life Insurance Corporation of India. The premium/contribution paid/payable to LIC of India is charged to Profit and Loss Statement. As per Revised Accounting Standard Actuarial Valuation was carried out by LIC of India. Company has not provided for said amount to Rs.36,21,885/-(P.Y. Rs.44,66,155/-) during the year being contingent in nature.

b) Leave encashment is provided for at current encashable salary rate for the entire encashable unveiled leave balance on Actuarial valuation bases.

6. EXCISE AND CUSTOM DUTY

The excise duty paid/payable on finished goods has been included in closing inventory till sales. Provisions has been made for payments of excise duty relating to finished goods lying in bond. However they said practice has no impact on profit / (loss) for the year.

7. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency, other than those covered by forward contracts, are recorded at the exchange rates Prevailing on the date of each transaction. Imports/Exports are recognized in books on the basis of payments/receipts, if transaction is squared off in the same accounting year. Liabilities relating to foreign currency transactions remaining unsettled till the date of finalization are transacted at the yearend rates.

8. SALES

a) Sales are recognized at the time of dispatch to customers. Material dispatched to branches and remaining unsold during the year is treated as stock at branches valued at cost inclusive of duties paid or market value whichever is lower.

b) Sales are inclusive of excise duty thereon but net of sales tax/VAT and discount.

c) Sales returns are recognized as soon as the rejection is approved by Technical Services Department of the Company.

9. IMPAIRMENT OF ASSETS

The carrying amount of an assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. Impairment loss will be recognized whenever the carrying amount of an assets exceeds recoverable amount. The Company applies the test of impairment of major assets and recognized loss on such impairment in Profit and Loss Statement.

10. PROVISION AND CONTINGENCIES

The Company create a provision when there is present obligation as result of past events that probably required and out flow of resources and a reliable estimate can be made of the amount of obligation. Disclosure for a contingent liability is made when there is possible obligation or a present obligation that probably will not be required an out flow of resources or where a reliable estimate of the obligation cannot be made.

11. TAXES ON INCOME

Current tax is the amount of tax payable on the taxable income for the year determined in accordance with the provisions of the Income Tax act, 1961. Deferred tax balance is recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets on unabsorbed tax losses and tax depreciation are recognized only when there is a certainty of their realization. The tax effect is calculated at the end of the year, based on the tax rate and laws enacted on balance sheet date.

12. DEFERRED REVENUE EXPENDITURE

During the year, Company has incurred an expenditure on issue of Bonus Share of Rs.7,50,311/-, as per management’s opinion, same is of long term nature, hence same is to be written off over a period of 5 years. Accordingly an amount of Rs.1,51,038/- is debited to Profit and Loss account under Exceptional and Extra Ordinary items.

---

Mar 31, 2015

1. BASIS OF ACCOUNT

The financial statements are prepared under historical cost convention on an accrual basis in accordance with the generally accepted accounting principles in India, the accounting standards prescribed under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

2. FIXED ASSETS AND DEPRECIATION

All fixed assets are stated at their original cost of acquisition / installation which includes taxes, duties (net of CENVAT & set off availed) & other identifiable direct expenses. Depreciation for the year has been provided as per useful lives specified in Schedule II of the Companies Act, 2013. Depreciation on addition/deduction during the year is charged on pro-rata basis. Leasehold land is amortised over the period of the lease. Depreciation on Technical know how has been provided as per remaining useful life of the assets.

3. INVESTMENTS

Investments are stated at cost. As per information received from management these are primarily long term investments, hence diminution in value has not been considered.

4. INVENTORIES

a) Finished Goods

Valued at cost inclusive of taxes & duties paid/payable or market value whichever is less.Valuation is based on first in first out basis.

b) Raw Materials & Consumables

Valued at landed cost or realizable value whichever is less.

c) Work-in-Progress

Value at cost incurred till the stage of completion as determined by the Management. In respect of sintered T.C.(scrape) the stock is valued at cost incurred till the previous stage at which this material is generated, In case the material is sold .the valuation is restricted to the value realized at a subsequent date. Valuation is base on actual cost of production or realized value at stage whichever is lower.

d) Due allowance is estimated and made for defective and obsolete stock based on past experience of the Company.

5. RETIREMENT BENEFITSS

a) Retirement benefits to employees comprise payment under defined contribution plan Superannuation, Gratuity through Group Schemes of Life Insurance Corporation of India. The premium/contribution paid/payable to LIC of India is charged to Profit & Loss Statement. As per Revised Accounting Standard Actuarial Valuation was carried out by LIC of India. Company has not provided for said amount to Rs.44,66,276/- during the year being contingent in nature.

b) Leave encashment is provided for at current encashable salary rate for the entire encashable unavailed leave balance on Actuarial valuation bases.

6. EXCISE & CUSTOM DUTY

The excise duty paid/payable on finished goods has been included in closing inventory till sales. Provisions has been made for payments of excise duty relating to finished goods lying in bond. However the said practice has no impact on profit / (loss) for the year.

7. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency, other than those covered by forward contracts, are recorded at the exchange rates Prevailing on the date of each transaction. Imports/Exports are recognized in books on the basis of payments/receipts, if transaction is squared off in the same accounting year. Liabilities relating to foreign currency transactions remaining unsettled till the date of finalisation are transacted at the year end rates.

8. SALES

a) Sales are recognised at the time of despatch to customers.Material despatched to branches & remaining unsold during the year is treated as stock at branches valued at cost inclusive of duties paid or market value whichever is lower.

b) Sales are inclusive of excise duty thereon but net of sales tax/VAT & discount.

c) Sales returns are recognised as soon as the rejection is approved by Technical Services Department of the Company.

9. IMPAIRMENT OF ASSETS

The carrying amount of an assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. Impairment loss will be recognised whenever the carrying amount of an assets exceeds recoverable amount. The Company applies the test of impairment of major assets and recognized loss on such impairment in Profit & Loss Statement.

10. PROVISION AND CONTINGENCIES

The Company create a provision when there is present obligation as result of past events that probably required and out flow 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 possible obligation or a present obligation that probably will not be required an out flow of resources or where a reliable estimate of the obligation can not be made.

11. TAXES ON INCOME

Current tax is the amount of tax payable on the taxable income for the year determined in accordance with the provisions of the Income Tax act, 1961. Deferred tax balance is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets on unabsorbed tax losses and tax depreciation are recognised only when there is a certainty of their realisation. The tax effect is calculated at the end of the year, based on the tax rate and laws enacted on balance sheet date.

12. DEFERRED REVENUE EXPENDITURE

During the year, Company has incurred an expenditure on issue of Bonus Share of Rs.7,50,311/-, as per management's opinion, same is of long term nature, hence same is to be written off over a period of 5 years. Accordingly an amount of Rs.1,51,038/- is debited to Profit & Loss account under Exceptional and Extra Ordinary items.

---

Mar 31, 2014

1. BASIS OF ACCOUNT

The financial statements are prepared under historical cost convention on an accrual basis in accordance with the generally accepted accounting principle in India, the accounting standards issued by the Institute of Chartered Accountants of India and are in accordance with the requirements of the Companies Act, 1956.

2. FIXED ASSETS AND DEPRECIATION

All fixed assets are stated at their original cost of acquisition / installation which includes taxes, duties (net of CENVAT & set off availed) & other identifiable direct expenses. Depreciation for the year has been provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on addition/deduction during the year is charged on pro-rata basis. Leasehold land is amortised over the period of the lease. Depreciation on Technical know how has been provided as per remaining useful life of the assets.

3. INVESTMENTS

Investments are stated at cost. As per information received from management these are primarily long term investments, hence diminution in value has not been considered.

4. INVENTORIES

a) Finished Goods

Valued at cost inclusive of taxes & duties paid/payable or market value whichever is less. Valuation is based on first in first out basis.

b) Raw Materials & Consumables

Valued at landed cost or realizable value whichever is less.

c) Work-in-Process

Value at cost incurred till the stage of completion as determined by the Management. In respect of sintered T.C.(scrape) the stock is valued at cost incurred till the previous stage at which this material is generated. In case the material is sold, the valuation is restricted to the value realized at a subsequent date. Valuation is based on actual cost of production or realized value at stage whichever is lower.

d) Due allowance is estimated and made for defective and obsolete stock based on past experience of the Company.

5. RETIREMENT BENEFITS

a) Retirement benefits to employees comprise payment under defined contribution plan Superannuation, Gratuity through Group Schemes of Life Insurance Corporation of India. The premium/contribution paid/payable to LIC of India is charged to Profit & Loss Account. As per Revised Accounting Standard Actuarial Valuation was carried out by LIC of India, the company has not provided for same amount to Rs.61,32,947/- during the year being contingent in nature.

b) Leave encashment is provided for at current encashable salary rate for the entire encashable unavailed leave balance on Actuarial valuation bases.

6. EXCISE & CUSTOM DUTY

The excise duty paid/payable on finished goods has been included in closing inventory till sales. Provisions has been made for payments of excise duty relating to finished goods lying in Bond. However, the said practice has no impact on profit / (loss) for the year.

7. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency, other than those covered by forward contracts, are recorded at the exchange rates prevailing on the date of each transaction. Imports/Exports are recognized in books on the basis of payments/receipts, if transaction is squared off in the same accounting year. Liabilities relating to foreign currency transactions remaining unsettled till the date of finalisation are transacted at the year end rates.

8. SALES

a) Sales are recognised at the time of despatch to customers. Material despatched to branches & remaining unsold during the year is treated as stock at branches valued at cost inclusive of duties paid or market value whichever is lower.

b) Sales are inclusive of excise duty thereon but net of sales tax/VAT & discount.

c) Sales returns are recognised as soon as the rejection is approved by Technical Services Department of the Company.

9. IMPAIRMENT OF ASSETS

The carrying amount of an assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. Impairment loss will be recognised whenever the carrying amount of an assets exceeds recoverable amount. The Company applies the test of impairment of major assets as provided in accounting standard - 28, issued by Institute of Chartered Accountants of India.

10. PROVISION AND CONTINGENCIES

The Company create a provision when there is present obligation as result of past events that probably required and out flow 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 possible obligation or a present obligation that probably will not be required an out flow of resources or where a reliable estimate of the obligation can not be made.

11. TAXES ON INCOME

Current tax is the amount of tax payable on the taxable income for the year determined in accordance with the provisions of the Income Tax act, 1961. Deferred tax balance is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets on unabsorbed tax losses and tax depreciation are recognised only when there is a certainty of their realisation. The tax effect is calculated at the end of the year, based on the tax rate and laws enacted on balance sheet date.

12. DEFERRED REVENUE EXPENDITURE

During the year, Company has incurred an expenditure on issue of Bonus Share of Rs.7,50,311/-, as per management''s opinion, same is of long term nature, hence same is to be written off over a period of 5 years. Accordingly an amount of Rs.1,46,160/- is debited to Profit & Loss account under Exceptional and Extra Ordinary items.

---

Mar 31, 2013

1. BASIS OF ACCOUNT

The financial statements are prepared under historical cost convention on an accrual basis in accordance with the generally accepted accounting principle in India, the accounting standards issued by the Institute of Chartered Accountants of India and are in accordance with the requirements of the Companies Act, 1956.

2. FIXED ASSETS AND DEPRECIATION

All fixed assets are stated at their original cost of acquisition / installation which includes taxes, duties (net of CENVAT & set off availed) & other identifiable direct expenses. Depreciation for the year has been provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on addition/deduction during the year is charged on pro-rata basis. Leasehold land is amortised over the period of the lease. Depreciation on Technical know how has been provided as per remaining useful life of the assets.

3. INVESTMENTS

Investments are stated at cost. As per information received from management these are primarily long term investments, hence diminution in value has not been considered.

4. INVENTORIES

a) Finished Goods

Valued at cost inclusive of taxes & duties paid/payable or market value whichever is less.Valuation is based on first in first out basis.

b) Raw Materials & Consumables

Valued at landed cost or realizable value whichever is less.

c) Work-in-Process

Value at cost incurred till the stage of completion as determined by the Management. In respect of sintered T.C.(scrape) the stock is valued at cost incurred till the previous stage at which this material is generated. In case the material is sold, the valuation is restricted to the value realized at a subsequent date. Valuation is based on actual cost of production or realized value at stage whichever is lower.

d) Due allowance is estimated and made for defective and obsolete stock based on past experience of the Company.

5. RETIREMENT BENEFITS

a) Retirement benefits to employees comprise payment under defined contribution plan Superannuation, Gratuity through Group Schemes of Life Insurance Corporation of India. The premium/contribution paid/payable to LIC of India is charged to Profit & Loss Account. As per Revised Accounting Standard Actuarial Valuation was carried out by LIC of India, Company has not provided for same amount to Rs.56,77,287/- during the year being contingent in nature.

b) Leave encashment is provided for at current encashable salary rate for the entire encashable unavailed leave balance on Actual valuation bases.

6. EXCISE & CUSTOM DUTY

The excise duty paid/payable on finished goods has been included in closing inventory till sales. Provisions has been made for payments of excise duty relating to finished goods lying in bond. However the said practice has no impact on profit / (loss) for the year.

7. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency, other than those covered by forward contracts, are recorded at the exchange rates prevailing on the date of each transaction. Imports/Exports are recognized in books on the basis of payments/receipts, if transaction is squared off in the same accounting year. Liabilities relating to foreign currency transactions remaining unsettled till the date of finalisation are transacted at the year end rates.

8. SALES

a) Sales are recognised at the time of despatch to customers.Material despatched to branches & remaining unsold during the year is treated as stock at branches valued at cost inclusive of duties paid or market value whichever is lower.

b) Sales are inclusive of excise duty thereon but net of sales tax/VAT & discount.

c) Sales returns are recognised as soon as the rejection is approved by Technical Services Department of the Company.

9. IMPAIRMENT OF ASSETS

The carrying amount of an assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. Impairment loss will be recognised whenever the carrying amount of an assets exceeds recoverable amount. The Company applies the test of impairment of major assets as provided in accounting standard - 28, issued by Institute of Chartered Accountants of India.

10. PROVISION AND CONTINGENCIES

The Company creates a provision when there is present obligation as a result of past events that probably required an out flow 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 possible obligation or a present obligation that probably will not be required an out flow of resources or where a reliable estimate of the obligation cannot be made.

11. TAXES ON INCOME

Current tax is the amount of tax payable on the taxable income for the year determined in accordance with the provisions of the Income Tax act, 1961. Deferred tax balance is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets on unabsorbed tax losses and tax depreciation are recognised only when there is a certainity of their realisation. The tax effect is calculated at the end of the year, based on the tax rate and laws enacted on balance sheet date.

---

Mar 31, 2012

1. BASIS OF ACCOUNT

The financial statements are prepared under historical cost convention on an accrual basis in accordance with the generally accepted accounting principle in India, the accounting standards issued by the Institute of Chartered Accountants of India and are in accordance with the requirements of the Companies Act, 1956.

2. FIXED ASSETS AND DEPRECIATION

All fixed assets are stated at their original cost of acquisition / installation which includes taxes, duties (net of CENVAT & set off availed) & other identifiable direct expenses. Depreciation for the year has been provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on addition/deduction during the year is charged on pro-rata basis. Leasehold land is amortised over the period of the lease. Depreciation on Technical know how has been provided as per remaining useful life of the assets.

3. INVESTMENTS

Investments are stated at cost. As per information received from management these are primarily long term investments.

4. INVENTORIES

I Finished Goods

Valued at cost inclusive of taxes & duties paid/payable or market value whichever is less.Valuation is based on first in first out basis.

II Raw Materials & Consumables

Valued at landed cost or realizable value whichever is less.

III Work-in-Progress

Valued at cost incurred till the stage of completion as determined by the Management. In respect of sintered T.C.(scrape) the stock is valued at cost incurred till the previous stage at which this material is generated. In case the material is sold, the valuation is restricted to the value realized at a subsequent date. Valuation is based on actual cost of production or realized value whichever is lower.

IV Due allowance is estimated and made for defective and obsolete stock based on past experience of the Company.

5. RETIREMENT BENEFITS

I. Retirement benefits to employees comprise payment under defined contribution plan Superannuation, Gratuity through Group Schemes of Life Insurance Corporation of India. The premium/contribution paid/payable to LIC of India is charged to Profit & Loss Account. As per Revised Accounting Standard Actuarial Valuation was carried out by LIC of India, Company has not provided for amounting to Rs. 49,78,888/- during the year being contingent in nature.

II. Leave encashment is provided for at current encashable salary rate for the entire encashable unavailed leave balance on Actual valuation bases.

6. EXCISE & CUSTOM DUTY

The excise duty paid/payable on finished goods has been included in closing inventory till sales. Provisions has been made for payments of excise duty relating to finished goods lying in bond. However the said practice has no impact on profit / (loss) for the year.

7. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency, other than those covered by forward contracts, are recorded at the exchange rates prevailing on the date of each transaction. Imports/Exports are recognized in books on the basis of payments/receipts, if transaction is squared off in the same accounting year. Liabilities relating to foreign currency transactions remaining unsettled till the date of finalisation are transacted at the year end rates.

8 SALES

i) Sales are recognised at the time of despatch to customers.Material despatched to branches & remaining unsold during the year is treated as stock at branches valued at cost inclusive of duties paid or market value whichever is lower.

ii) Sales are inclusive of excise duty thereon but net of sales tax/VAT & discount.

iii) Sales returns are recognised as soon as the rejection is approved by Technical Services Department of the Company.

9. IMPAIRMENT OF ASSETS

The carrying amount of an assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. Impairment loss will be recognised whenever the carrying amount of an assets exceeds recoverable amount. The Company applies the test of impairment of major assets as provided in accounting standard - 28, issued by Institute of Chartered Accountants of India.

10. PROVISION AND CONTINGENCIES

The Company create a provision when there is present obligation as result of past events that probably required and out flow 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 possible obligation or a present obligation that probably will not be required an out flow of resources or where a reliable estimate of the obligation can not be made.

11. TAXES ON INCOME

Current tax is the amount of tax payable on the taxable income for the year determined in accordance with the provisions of the Income Tax act, 1961. Deferred tax balance is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets on unabsorbed tax losses and tax depreciation are recognised only when there is a certainty of their realisation. The tax effect is calculated at the end of the year, based on the tax rate and laws enacted on balance sheet date.

---

Mar 31, 2010

1. BASIS OF ACCOUNT

The financial statements are prepared under historical cost convention on an accrual basis in accordance with the generally accepted accounting principle in India, the accounting standards issued by the Institute of Chartered Accountants of India and are in accordance with the requirements of the Companies Act, 1956.

2. FIXED ASSETS AND DEPRECIATION

All fixed assets are stated at their original cost of acquisition / installation which includes taxes, duties (net of CENVAT & set off availed) & other identifiable direct expenses. Depreciation for the year has been provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on addition/deduction during the year is charged on pro-rata basis. Leasehold land is amortised over the period of the lease. Depreciation on Technical know how has been provided as per remaining useful life of the assets.

3. INVESTMENTS

Investments are stated at cost. As per information received from management these are primarily long term investments, hence diminution in value has not been considered.

4. INVENTORIES

I Finished Goods

Valued at cost inclusive of taxes & duties paid/payable or market value whichever is less. Valuation is based on first in first out basis.

II Raw Materials & Consumables

Valued at landed cost or realizable value whichever is less.

III Work-in-Progress

Value at cost incurred till the stage of completion as determined by the Management. In respect of sintered T.C.(scrape) the stock is valued at cost incurred till the previous stage at which this material is generated, in case the material is sold the valuation is restricted to the value realized at a subsequent date. Valuation is base on actual cost of production or realized value at stage whichever is lower.

IV Due allowance is estimated and made for defective and obsolete stock based on past experience of the Company.

5. RETIREMENT BENEFITS

I. Retirement benefits to employees comprise payment under defined contribution plan Superannuation, Gratuity through Group Schemes of Life Insurance Corporation of India. The premium/contribution paid/payable to LIC of India is charged to Profit & Loss Account. As per Revised Accounting Standard Actuarial Valuation was carried out by LIC of India Company has not provided for same amount to Rs.34,89,520/- during the year being contingent in nature.

III. Leave encashment is provided for at current encashable salary rate for the entire encashable unavailed leave balance on Actuarial valuation bases.

6. EXCISE & CUSTOM DUTY

The excise duty paid/payable on finished goods has been included in closing inventory till sales. Provision has been made for payment of excise duty relating to finished goods lying in bond. However the said practice has no impact on profit / (loss) for the year.

7. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency, other than those covered by forward contracts, are recorded at the exchange rates prevailing on the date of each transaction. Imports/Exports are recognized in books on the basis of payments/receipts, if transaction is squared off in the same accounting year. Liabilities relating to foreign currency transactions remaining unsettled till the date of finalisation are transacted at the year end rates. 8 SALES

i) Sales are recognised at the time of despatch to customers. Material despatched to branches & remaining unsold during the year is treated as stock at branches valued at cost inclusive of duties paid or market value whichever is lower. ii) Sales are inclusive of excise duty thereon but net of sales taxA/AT & discount. iii) Sales returns are recognised as soon as the material is approved by Technical Services Department of the Company.

8. IMPAIRMENT OF ASSETS

The carrying amount of an asset are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. And impairment loss will be recognised whenever the carrying amount of an asset exceeds recoverable amount. The Company applies the test of impairment of major assets as provided in accounting standard - 28, issued by Institute of Chartered Accountants of India.

9. PROVISION AND CONTINGENCIES

The Company creates a provision when there is present obligation as result of past events that probably required an out flow 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 possible obligation or a present obligation that probably will not require an out flow of resources or where a reliable estimate of the obligation cannot be made.

10. TAXES ON INCOME

Current tax is the amount of tax payable on the taxable income for the year determined in accordance with the provisions of the Income Tax act, 1961. Deferred tax balance is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets on unabsorbed tax losses and tax depreciation are recognised only when there is a certainty of their realisation. The tax effect is calculated at the end of the year, based on the tax rate and laws enacted on balance sheet date.