Accounting Policies of Rishab Special Yarns Ltd. Company

Mar 31, 2025

2. Significant Accounting Policies:

2.1 Statement of Compliance:

The financial statements have been prepared in accordance with the Indian Accounting
Standards (Ind AS) specified under section 133 of the Companies Act, 2013, read with Rule
3 of the Companies (Indian Accounting Standards) Rules, 2015.

2.2 Basis for preparation of financial statements:

The financial statements have been prepared in historical cost basis except for certain financial
instruments which are measured at fair value or amortised cost at the end which is generally
based on the fair value of consideration given in exchange for goods and services. All assets
and liabilities have been classified as current and non-current as per the Company''s normal
operating cycle. Based on the nature of services rendered to customers and time elapsed
between deployment of resources and the realisation in cashand cash equivalents of the
consideration for such services rendered, the Company has considered an operating cycle
of 12 months.

2.3 Use of Estimates:

The preparation of financial statements requires the management of the company to make
estimates and assumptions that affect the reported amounts of assets and liabilities on the
date of financial statements, disclosure of contingent liabilities as at the date of the financial
statements, and the reported amounts of income and expenses during the reported period.
Estimates and underlying assumptions are reviewed on an ongoing basis.Revisions to
accounting estimates are recognized in the period in which the estimates are revised.

2.4 Critical accounting estimates:

2.4.1 Income Taxes:

Significant judgments are involved in determining the provision for income taxes,
including amount expected to be paid/recovered for uncertain tax positions.

2.4.2 Impairment of Investments:

The carrying value of investments is reviewed at cost annually, or more frequently
whenever, there is indication for impairment. If the recoverable amount is less than the
carrying amount, the impairment loss is accounted for.

2.4.3 Provisions:

Provisions are recognized when the company has a present obligation as a result of
past event and it is probable that an outflow of resources will be required to settle the
obligation, in respect of which a reliable estimate can be made. These are reviewed at
each balance sheet date adjusted to reflect the current best estimates.

2.4.4 Effective Interest Rate (EIR) Method:

The Company''s EIR methodology, recognises interest income / expense using a rate
of return that represents the best estimate of a constant rate of return over the expected
behavioral life of loans given / taken and recognises the effect of potentially different
interest rates at various stages and other characteristics of the product life cycle
(including prepayments, restructuring and penalty interest and charges). This estimation,
by nature, requires an element of judgement regarding the expected behavior and life¬
cycle of the instruments and other fee income/expense that are integral parts of the
instrument.

2.5 Property, Plant and Equipment (PPE)

PPE are stated at actual cost less accumulated depreciation and net of impairment. The
actual cost capitalized includes material cost, freight, installation cost, duties and taxes, eligible
borrowing costs and other incidental expenses incurred during the construction/installation
stage.

The Company has chosen the cost model for recognition and this model is applied to all class
of assets. After recognition as an asset, an item of PPE is carried at its cost less any
accumulated depreciation and any accumulated impairment losses.

Depreciable amount of an asset is the cost of an asset less its estimated residual value.

Depreciation on PPE, including assets taken on lease, other than freehold land is charged
based on Written Down Value method on an estimated useful life as prescribed in Schedule
II to the Companies Act, 2013.

An item of PPE is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any gain or loss arising on the disposal
or retirement of an item of PPE are determined as a difference between the sale proceeds
and the carrying amount of the asset and is recognized in the profit and loss.

At the end of each reporting period, the Company reviews the carrying amounts of tangible
and intangible assets to determine whether there is any indication that those assets have
suffered an impairment loss.

2.6 Revenue recognition:

Revenue from contracts with customers are recognized when the control over the goods or
services promised in the contract are transferred to the customer. The amount of revenue
recognized depicts the transfer of promised goods and services to customers for an amount
that reflects the consideration to which the Company is entitled to in exchange for the goods
or services.

2.6.1 Sale of goods: -

Revenue from sale of goods is recognized when the control over such goods have
been transferred, being when the goods are delivered to the customers. Delivery occurs
when the products have been shipped or delivered to the specific location as the case
may be, risks of loss have been transferred to the customers, and either the customer
has accepted the goods in accordance with the sales contract or the acceptance
provisions have lapsed or the Company has objective evidence that all criteria for
acceptance have been satisfied. Revenue from these sales are recognized based on
the price specified in the contract.

2.6.2 Interest Income: -

The Company recognises interest income using Effective Interest Rate (EIR) on all
financial assets subsequently measured at amortised cost. EIR is calculated by
considering all costs and incomes attributable to acquisition of the financial assets and
it represents a rate that discounts estimated future cash flows through the expected
life of the financial assets to the gross carrying amount of a financial assets.

2.6.3 Dividend: -

Dividend income from investments is recognised when the shareholders'' right to receive
payment has been established which is generally when the shareholders approve the
dividend.

2.6.4 Other income : -

In respect of other heads of income in the Company''s accounts the income shall
recognize on accrual basis.

2.7 Foreign currency transactions:

Foreign currency transactions, if any are recorded as exchange rates prevailing on the date
of transaction. Foreign currency denominated monetary assets and liabilities are restated
into the functional currency using exchange rates prevailing on the date of Balance Sheet.
Gains and losses arising on settlement and restatement of foreign currency denominated
monetary assets and liabilities are recognized in the profit or loss.

2.8 Financial Instruments:

2.8.1 Financial Assets

Recognition and initial measurement: -

Financial assets and financial liabilities are initially recognized when the Company
becomes a party to the contractual provisions of the instrument and are measured
initially a fair value adjusted for transaction cost.

Subsequent measurement: -

Financial Assets measured at Amortised Cost (AC) : Financial assets are subsequently
measured at amortized cost if these financial assets are held within a business whose
objective is to hold these 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 payments of principal and interest on the principal amount outstanding.
Amortised cost is the cost of a financial asset adjusted to achieve a constant effective
interest rate over the life of the financial asset.

Financial Assets measured at Fair Value Through Other Comprehensive Income
(FVTOCI) : Financial assets are subsequently measured at fair value through other
comprehensive income if these financial assets are held within a business whose
objective is achieved by both (i) collecting contractual cash flows on specified dates
that are solely payments of principal and interest on the principal amount outstanding
and (ii) selling of such financial assets.

Financial Assets measured Fair Value Through Profit and Loss (FVTPL) : Financial
assets are subsequently measured at fair value through profit or loss unless they are
measured at amortized cost or at fair value through other comprehensive income. For
financial assets measured at fair value through profit and loss, all changes in the fair
value are recognized in profit and loss when they occur.

De- recognition of Financial Assets: -

A financial asset is primarily de-recognized when the rights to receive cash flows from

the asset have expired or Company has transferred its right to receive cash flow from
the asset.

2.8.2 Financial Liabilities

Recognition and initial measurement: -

All Financial liabilities are recognized initially at fair value and transaction cost that is
attributable to the acquisition of the financial liabilities is also adjusted. Financial liabilities
are classified as amortized cost.

Subsequent measurement: -

Subsequent to initial recognition, these liabilities are measured atAmortized cost using
the effective interest rate method.

De-recognition of Financial liabilities : -

Financial liabilities are derecognized when the obligation under the liabilities are
discharged or cancelled or expires. Consequently, write back of unsettled credit balances
is done on closure of the concerned project or earlier based on the previous experience
of Management and actual facts of each case and recognized in other Operating
Revenues.

Further when an existing Financial liability is replaced by another from the same lender
on substantially different terms, or the terms of existing liability are substantially modified,
such an exchange or modification is treated as the de-recognition of the original liability
and the recognition of a new liability. The difference in the respective carrying amounts
is recognized in the Statement of Profit and Loss.

2.8.3 Offsetting of Financial Instrument

Financial Assets and Financial Liabilities are offset and the net amount is reported in
the Balance sheet if there is currently enforceable legal right to offset the recognized
amounts and there is an intention to settle on net basis, to realize the assets and settle
the liabilities simultaneously.

2.8.4 Impairment of Financial Assets

Equity instruments. Debt Instruments and Mutual Fund: -

In accordance with Ind -AS 109, the Company applies Expected Credit Loss model for
measurement and recognition of impairment loss for Financial Assets.

The Company recognizes loss allowances using the expected credit loss (ECL) model
for the financial assets and unbilled revenue which are not fair valued through profit or
loss. Loss allowance for trade receivables and unbilled revenues with significant financing
component is measured at an amount equal to 12-month ECL. For all other financial
assets, expected credit losses are measured at an amount equal to the lifetime
12-month ECL, unless there has been a significant increase in credit risk from initial
recognition in which case those are measured at lifetime ECL.

The Company determines the allowance for credit losses based on historical loss
experience adjusted to reflect current and estimated future economic conditions. The
Company considers current and anticipated future economic conditions relating to
industries the Company deals with and the countries where it operates.

The amount of expected credit losses (or reversal) that is required to adjust the loss
allowance at the reporting date to the amount that is required to be recorded is
recognized as an impairment gain or loss in condensed consolidated statement of
comprehensive income.

Other Financial Assets: -

The Company determines whether there has been a significant increase in the credit
risk since initial recognition and if credit risk has increased significantly, impairment
loss is provided.

2.9 Inventories

Inventories are valued at cost or net realisable value, whichever is lower. Cost is determined
on weighted average basis and includes cost of purchase and other costs incurred in bringing
inventories to their present location and condition. Net realisable value is the estimated selling
price in the ordinary course of business, less estimated costs of completion and the estimated
costs necessary to make the sale.

2.10 Cash & Cash equivalent

Cash and cash equivalents Cash and cash equivalents in the balance sheet comprise of
cash at bank and on hand and short-term deposits with an original maturity of three months
or less, which are subject to an insignificant risk of changes in value. For the purpose of the
statement of cash flows, cash and cash equivalents consist of cash and short-term deposits,
as defined above, net of outstanding bank overdrafts as they are considered an integral part
of the Company''s cash management.

2.11 Taxation

Tax expense comprises of current tax and deferred tax. Current tax is measured at the
amount expected to be paid/recovered from the tax authorities, based on estimated tax liability
computed after taking credit for allowances and exemption in accordance with Income Tax
Act, 1961. Current and deferred tax are recognized in profit and loss, except when they relate
to items that are recognized in other comprehensive income or directly in equity, in which
case, the income taxes are recognized in other comprehensive income or directly in equity,
respectively. Advance taxes and provisions for current income taxes are presented in the
statement of financial position after off-setting advance tax paid and income tax provision.

Deferred income tax is recognized using the balance sheet approach. Deferred income tax
assets and liabilities are recognized for deductible and taxable temporary differences arising
between the tax base of assets and liabilities and their carrying amounts. Deferred income tax
is recognized to the extent it is probable that taxable profit will be available against which the
deductible temporary differences and the carry forward of unused tax credits and unused tax
losses can be utilized. The carrying amount of deferred income tax assets is reviewed at each
reporting date. Deferred tax asset/liability is measured at the tax rates that are expected to be
applied to the period when the asset is realized or the liability is settled.

2.12 Earnings Per Share

Basic earnings/ (loss) per share are calculated by dividing the net profit/ (loss) for the period
attributable to equity shareholders by the weighted average number of equity shares outstanding
during the period. The weighted average number of equity shares outstanding during the
period are adjusted for any bonus shares issued during the period and also after the Balance
Sheet date but before the date the financial statements are approved by the Board of Directors.

For the purpose of calculating diluted earnings/ (loss) per share, the net profit/ (loss) for the
period attributable to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

The number of equity shares and potentially dilutive equity shares are adjusted for bonus
shares as appropriate. The dilutive potential equity shares are adjusted for the proceeds
receivable, had the shares been issued at fair value. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless issued at a later date.

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Mar 31, 2024

1. Corporate Information:

Rishab Special Yarns Ltd. (bearing CIN L17114RJ1987PLC004067) was incorporated on 17.08.1987 under the CompaniesAct, 1956 with the Registrar of Companies, Jaipur (Rajasthan). The Company is listed on Bombay Stock exchange (BSE) [Script code: RISHYRN]

2. Significant Accounting Policies:2.1 Statement of Compliance:

The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) specified under section 133 of the Companies Act, 2013, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015.

2.2 Basis for preparation of financial statements:

The financial statements have been prepared in historical cost basis except for certain financial instruments which are measured at fair value or amortised cost at the end which is generally based on the fair value of consideration given in exchange for goods and services. All assets and liabilities have been classified as current and non-current as per the Company''s normal operating cycle. Based on the nature of services rendered to customers and time elapsed between deployment of resources and the realisation in cashand cash equivalents of the consideration for such services rendered, the Company has considered an operating cycle of 12 months.

2.3 Use of Estimates:

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of financial statements, disclosure of contingent liabilities as at the date of the financial statements, and the reported amounts of income and expenses during the reported period. Estimates and underlying assumptions are reviewed on an ongoing basis.Revisions to accounting estimates are recognized in the period in which the estimates are revised.

2.4 Critical accounting estimates:

2.4.1 Income Taxes:

Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

2.4.2 Impairment of Investments:

The carrying value of investments is reviewed at cost annually, or more frequently whenever, there is indication for impairment. If the recoverable amount is less than the carrying amount, the impairment loss is accounted for.

2.4.3 Provisions:

Provisions are recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date adjusted to reflect the current best estimates.

2.4.4 Effective Interest Rate (EIR) Method:

The Company''s EIR methodology, recognises interest income / expense using a rate of return that represents the best estimate of a constant rate of return over the expected behavioral life of loans given / taken and recognises the effect of potentially different interest rates at various stages and other characteristics of the product life cycle (including prepayments, restructuring and penalty interest and charges). This estimation, by nature, requires an element of judgement regarding the expected behavior and lifecycle of the instruments and other fee income/expense that are integral parts of the instrument.

2.5 Property, Plant and Equipment (PPE)

PPE are stated at actual cost less accumulated depreciation and net of impairment. The actual cost capitalized includes material cost, freight, installation cost, duties and taxes, eligible borrowing costs and other incidental expenses incurred during the construction/installation stage.

The Company has chosen the cost model for recognition and this model is applied to all class of assets. After recognition as an asset, an item of PPE is carried at its cost less any accumulated depreciation and any accumulated impairment losses.

Depreciable amount of an asset is the cost of an asset less its estimated residual value.

Depreciation on PPE, including assets taken on lease, other than freehold land is charged based on Written Down Value method on an estimated useful life as prescribed in Schedule II to the Companies Act, 2013.

An item of PPE is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of PPE are determined as a difference between the sale proceeds

and the carrying amount of the asset and is recognized in the profit and loss.

At the end of each reporting period, the Company reviews the carrying amounts of tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.

2.6 Revenue recognition:

Revenue from contracts with customers are recognized when the control over the goods or services promised in the contract are transferred to the customer. The amount of revenue recognized depicts the transfer of promised goods and services to customers for an amount that reflects the consideration to which the Company is entitled to in exchange for the goods or services.

2.6.1 Sale of goods: -

Revenue from sale of goods is recognized when the control over such goods have been transferred, being when the goods are delivered to the customers. Delivery occurs when the products have been shipped or delivered to the specific location as the case may be, risks of loss have been transferred to the customers, and either the customer has accepted the goods in accordance with the sales contract or the acceptance provisions have lapsed or the Company has objective evidence that all criteria for acceptance have been satisfied. Revenue from these sales are recognized based on the price specified in the contract.

2.6.2 Interest Income: -

The Company recognises interest income using Effective Interest Rate (EIR) on all financial assets subsequently measured at amortised cost. EIR is calculated by considering all costs and incomes attributable to acquisition of the financial assets and it represents a rate that discounts estimated future cash flows through the expected life of the financial assets to the gross carrying amount of a financial assets.

2.6.3 Dividend: -

Dividend income from investments is recognised when the shareholders'' right to receive payment has been established which is generally when the shareholders approve the dividend.

2.6.4 Other income : -

In respect of other heads of income in the Company''s accounts the income shall recognize on accrual basis.

2.7 Foreign currency transactions:

Foreign currency transactions, if any are recorded as exchange rates prevailing on the date of transaction. Foreign currency denominated monetary assets and liabilities are restated into the functional currency using exchange rates prevailing on the date of Balance Sheet. Gains and losses arising on settlement and restatement of foreign currency denominated monetary assets and liabilities are recognized in the profit or loss.

2.8 Financial Instruments:2.8.1 Financial Assets

Recognition and initial measurement: -

Financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument and are measured initially a fair value adjusted for transaction cost.

Subsequent measurement: -

FinancialAssets measured at Amortised Cost (AC) : Financial assets are subsequently measured at amortized cost if these financial assets are held within a business whose objective is to hold these 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 payments of principal and interest on the principal amount outstanding. Amortised cost is the cost of a financial asset adjusted to achieve a constant effective interest rate over the life of the financial asset.

Financial Assets measured at Fair Value Through Other Comprehensive Income (FVTOCI) : Financial assets are subsequently measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both (i) collecting contractual cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding and (ii) selling of such financial assets.

Financial Assets measured Fair Value Through Profit and Loss (FVTPL) : Financial assets are subsequently measured at fair value through profit or loss unless they are measured at amortized cost or at fair value through other comprehensive income. For financial assets measured at fair value through profit and loss, all changes in the fair value are recognized in profit and loss when they occur.

De- recognition of Financial Assets: -

A financial asset is primarily de-recognized when the rights to receive cash flows from the asset have expired or Company has transferred its right to receive cash flow from the asset.

2.8.2 Financial Liabilities

Recognition and initial measurement: -

All Financial liabilities are recognized initially at fair value and transaction cost that is attributable to the acquisition of the financial liabilities is also adjusted. Financial liabilities are classified as amortized cost.

Subsequent measurement: -

Subsequent to initial recognition, these liabilities are measured at Amortized cost using the effective interest rate method.

De-recognition of Financial liabilities : -

Financial liabilities are derecognized when the obligation under the liabilities are discharged or cancelled or expires. Consequently, write back of unsettled credit balances is done on closure of the concerned project or earlier based on the previous experience of Management and actual facts of each case and recognized in other Operating Revenues.

Further when an existing Financial liability is replaced by another from the same lender on substantially different terms, or the terms of existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss.

2.8.3 Offsetting of Financial Instrument

Financial Assets and Financial Liabilities are offset and the net amount is reported in the Balance sheet if there is currently enforceable legal right to offset the recognized amounts and there is an intention to settle on net basis, to realize the assets and settle the liabilities simultaneously.

2.8.4 Impairment of Financial Assets

Equity instruments. Debt Instruments and Mutual Fund: -

In accordance with Ind -AS 109, the Company applies Expected Credit Loss model for measurement and recognition of impairment loss for Financial Assets.

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets and unbilled revenue which are not fair valued through profit or loss. Loss allowance for trade receivables and unbilled revenues with significant financing component is measured at an amount equal to 12-month ECL. For all other financial assets, expected credit losses are measured at an amount equal to the lifetime 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Company considers current and anticipated future economic conditions relating to industries the Company deals with and the countries where it operates.

The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment gain or loss in condensed consolidated statement of comprehensive income.

Other Financial Assets: -

The Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided.

2.9 Inventories

Inventories are valued at cost or net realisable value, whichever is lower. Cost is determined on weighted average basis and includes cost of purchase and other costs incurred in bringing inventories to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

2.10 Cash & Cash equivalent

Cash and cash equivalents Cash and cash equivalents in the balance sheet comprise of cash at bank and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

2.11 Taxation

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid/recovered from the tax authorities, based on estimated tax liability computed after taking credit for allowances and exemption in accordance with Income Tax Act, 1961. Current and deferred tax are recognized in profit and loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which

case, the income taxes are recognized in other comprehensive income or directly in equity, respectively. Advance taxes and provisions for current income taxes are presented in the statement of financial position after off-setting advance tax paid and income tax provision.

Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amounts. Deferred income tax is recognized to the extent it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized. The carrying amount of deferred income tax assets is reviewed at each reporting date. Deferred tax asset/liability is measured at the tax rates that are expected to be applied to the period when the asset is realized or the liability is settled.

2.12 Earnings Per Share

Basic earnings/ (loss) per share are calculated by dividing the net profit/ (loss) for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for any bonus shares issued during the period and also after the Balance Sheet date but before the date the financial statements are approved by the Board of Directors.

For the purpose of calculating diluted earnings/ (loss) per share, the net profit/ (loss) for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares as appropriate. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been issued at fair value. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date.

2.13 Provision, Contingent Liabilities and Contingent Assets:

A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks 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.

Contingent Assets and Contingent Liabilities are not recognized in the financial statements.

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Mar 31, 2014

I. Basis of Accounting

The financial statements are prepared under the historical cost convention on accrual basis and are generally in accordance with the requirements of the Companies Act, 1956. The accounting policies not specifically mentioned are consistent with generally accepted accounting principles.

ii. Revenue Recognition

The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basts.

iii. Investments

Investments are stated at cost.

iv. Tangible Assets

Tangible Assets are stated at cost less depreciation. Cost of acquisition, fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period but excludes the modvat credit available on the capital goods.

v. Impairment of Assets

Impairment loss is provided when carrying amount of assets exceeds recoverable value. Excess of carrying amount over recoverable value is charged to Profit & Loss Account. Recoverable value is the higher of an asset''s net selling price or its value in use.

vi. Depreciation

The Company is providing depreciation on straight line method as per rates given in Schedule XIV of the Companies Act, 1956 on pm rata basis for the period of use.

vii. Valuation of Inventory

Inventories are valued at the lower of cost and estimated realizable value. Cost of Inventories is computed on weighted average/FIFO basis. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. However the Company did not hold any inventories during the current year.

viii. Retirement Benefits

Liability in respect of gratuity is calculated by management and provided in books accordingly.

ix. Taxes on Income

Current tax is provided after allowing exemptions and deductions under the Income Tax Act, 1961. Deferred Tax is recognized subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and is capable of reversal in one or more subsequent period. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only if there is reasonable certainty of realization in future.

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Mar 31, 2013

I. Basis of Accounting

The financial statements are prepared under the historical cost convention on accrual basis and are generally in accordance with the requirements of the Companies Act, 1956. The accounting policies not specifically mentioned are consistent with generally accepted accounting principles.

ii. Revenue Recognition

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

iii. Investments

Investments are stated at cost.

iv. Tangible Assets

Tangible Assets are stated at cost less depreciation. Cost of acquisition, fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period but excludes the modvat credit available on the capital goods.

v. Impairment of Assets

Impairment loss is provided when carrying amount of assets exceeds recoverable value. Excess of carrying amount over recoverable value is charged to Profit & Loss Account. Recoverable value is the higher of an asset''s net selling price or its value in use.

vi. Depreciation

The Company is providing depreciation on straight line method as per rates given in Schedule XIV of the Companies Act, '' 1956 on pro rata basis for the period of use.

vii. Valuation of Inventory

Inventories are valued at the lower of cost and estimated realizable value. Cost of Inventories is computed en a weighted average / FIFO basis. Finished goods and work-in-progress include costs of conversion and other costs incurred -<- bringing the inventories to their present location and condition. However the Company did not hold any inventories during the current year.

viii. Retirement Benefits

Liability in respect of gratuity is calculated by management and provided in books accordingly.

ix. Taxes on Income

Current tax is provided after blowing exemptions and deductions under the Income Tax Act, 1961. Deferred Tax is recognized subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent that there is reasonable certainty of realization in future.

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Mar 31, 2011

I. Basis of Accounting: The financial statements are prepared under the historical cost convention on accrual basis and are generally in accordance with the requirements of the Companies Act, 1956. The accounting policies not specifically mentioned are consistent with generally accepted accounting principles.

ii. Revenue Recognition: the company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

iii. Investments: Investments are stated at cost.

iv. Fixed Assets :Fixed Assets are stated at cost less depreciation. Cost of acquisition, fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period but excludes the modvat credit available on the capital goods.

v. Impairment of Assets: Impairment loss is provided to the extent that carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an assets net selling price or its value in use.

vi. Depreciation: The Company is providing depreciation on straight line method as per rates given in Schedule XIV of the Companies Act, 1956 on pro rata basis for the period of use.

vii. Valuation of Inventory: Inventories are valued at the lower of the cost and estimated realizable value. Cost of Inventories is computed on a weighted average / FIFO basis. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. However the Company did not hold any inventories during the Current year.

viii. Retirement Benefits : Liability in respect of gratuity is calculated by management and provided in books accordingly.

ix. Taxes on Income: Current tax is provided after allowing exemptions and deductions under the Income Tax Act, 1961. Deferred Tax is recognized subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent that there is reasonable certainty of realization in future. NOTES ON ACCOUNTS

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Mar 31, 2010

1. Accounting Conventions

I. Basis of Accounting - The financial statements are prepared under the historical cost convention on accrual basis and are generally in accordance with the requirements of the Companies Act, 1956. The accounting policies not specifically mentioned are consistent with generally accepted accounting principles.

ii. Revenue Recognition - The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

iii. Investments- Investments are stated at cost. tv. Fixed Assets - Fixed Assets are stated at cost less depreciation. Cost of acquisition, fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period but excludes the modvat credit available on the capital goods.

v. Impairment of Assets - Impairment loss is provided to the extent that carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an assets net selling price or its value in use.

vi. Depreciation - The Company is providing depreciation on straight line method as per rates given in Schedule XIV of the Companies Act, 1956 on pro rata basis for the period of use. However during the year no depreciation has been provided as fixed assets are not in use.

vii. Excise Duty - The refunds of excise in the form of Modvat credit available on inputs of materials as per Excise laws are deducted from the cost of the materials and accordingly closing stock of input materials are valued.

viii. Valuation of Inventory - Inventories are valued at the lower of the cost and estimated realizable value. Cost of Inventories is computed on a weighted average / FIFO basis. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition. However the Company did not hold any inventories during the current year.

ix. Retirement Benefits - Liability in respect of gratuity is calculated by management and provided in books accordingly.

x. Borrowing Cost - Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date when such assets are ready for intended use. Other borrowing costs are charged to the Profits. Loss Account.

xi. Taxes on Income - Current tax is provided after allowing exemptions and deductions under the Income Tax Act, 1961. Deferred Tax is recognized subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent that there is reasonable certainty of realization in future.

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Mar 31, 2009

I. Basis of Accounting

The financial statements are prepared under the historical cost convention on accrual basis and are generally in accordance with the requirements of the Companies Act, 1956. The accounting policies not specifically mentioned are consistent with generally accepted accounting principles.

ii. Revenue Recognition

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

iii. Investments

Investments are stated at cost.

iv Fixed Assets

Fixed Assets are stated at cost less depreciation. Cost of acquisition, fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period but excludes the modvat credit available en the capital goods.

v. Impairment of Assets

Impairment loss is provided to the extent that carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an assets net selling price or its value in use.

vi. Depreciation

The Company is providing depreciation on straight line method as per rates given in Schedule XIV of the Companies Act, 1956 on pro rata basis for the period of use. However during the year no depreciation has been provided as fixed assets are not in use.

vii. Excise Duty

The refunds of excise in the form of Modvat credit available on inputs of materials as per Excise Laws are deducted from the cost of the materials and accordingly closing stock of input materials are valued.

viii. Valuation of Inventory

Inventories are valued at the lower of the cost and estimated realizable value. Cost of inventories is computed on a weighted average/FIFO basis. Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

ix. Retirement Benefits

Liability in respect of gratuity is calculated by management and provided in books accordingly.

x Borrowing Cost

Borrowing Costs attributable to acquisition and construction of qualifying qssets are capitalized as a part of the cost of such asset upto the date when such assets is ready for its intended use. Other borrowing costs are charged to the Profit & Loss Account. xi Taxes on Income Current tax is provided after allowing exemptions and deductions under the Income Tax Act, 1961 .Deferred Tax is recognised subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognised only to the extent that there is reasonable certainty of realisation in future.