Accounting Policies of Ritesh International Ltd. Company

Mar 31, 2025

2. SIGNIFICANT ACCOUNTING POLICIES:

This note provides a list of the significant accounting policies adopted in the
preparation of the standalone financial statements. These policies have been
consistently applied to all the years presented, unless otherwise stated.

a) Basis of Preparation

i) Compliance with Ind AS

These standalone financial statements comply in all material aspect with the
Indian Accounting Standards (Ind AS) notified under Section 133 of the
Companies Act, 2013(the ''Act'') [Companies (Indian Accounting Standards) Rules,
2015] (as amended from time to time) and other relevant provisions of the Act.

ii) Basis of Measurement

These standalone financial statements have been prepared on a historical cost
convention on accrual basis in accordance with the generally accepted accounting
principles and in accordance with Accounting Standards applicable in India and
the provisions of the Companies Act, 2013 as adopted consistently by the
Company

iii) Current and Non-Current Classification

The company presents assets and liabilities in the Balance Sheet based on
current/non-current classification

An asset is classified as current when it is:

a) expected to be realized or intended to be sold or consumed in the normal
operating cycle,

b) the asset is intended for sale or consumption,

c) expected to be realized within twelve months after the reporting period, or

d) cash or cash equivalents unless restricted from being exchanged or used to
settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when

a) it is expected to be settled in the normal operating cycle,

b) it is due to be settled within twelve months after the reporting period, or

c) there is no unconditional right to defer settlement of the liability for at least
twelve months after the reporting period.

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing
and their realization in cash and cash equivalents.

b) Revenue from Sale of Products

Revenue from the sale of goods is recognized at the point of time when a control of
the goods is transferred to the customer. The normal credit term differs from
customer to customer. The revenue is measured on the basis of the consideration
defined in the contract/invoice with a customer, including variable consideration,
such as discounts etc.

Revenue from services rendered/job work is recognized as the services/job work is
rendered and is booked based on the invoices raised.

Profit/loss on dealing in shares at the time of delivery of shares or square up of the
deal.

c) Property, Plant and Equipment and Intangible Assets

All Property, Plant and Equipment including capital work in progress are stated at
cost except Land and Building which was stated at its revalued asset less
accumulated depreciation. Cost of acquisition includes the cost of replacing part of
the plant and equipment and borrowing costs and other incidental expenses.

Depreciation Method. Estimated useful life and Residual values

Depreciation is calculated on a pro-rata basis using the straight-line-method to
allocate their cost, net of their estimated residual values, over their estimated useful
life in accordance with Schedule II to the Act. The company depreciates the property,
plant and equipment as under:

An item of Property, plant and equipment and any significant part initially recognized
is derecognized upon disposal or when no future economic benefits are expected
from its use or disposal. Any gain or loss arising on the derecognized of the asset
(calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in the Statement of Profit and Loss when the asset
is derecognized.

Plant and equipment not ready to use are disclosed under ''Capital Work in progress.

d) Impairment of Non-financial Assets

The company assess, at each reporting date, whether there is an indication that an
asset may be impaired. If any indication exists, or when annual impairment testing
for an asset is required, the Company estimates the asset''s recoverable amount.

Impairment losses of continuing operations, including impairment of inventories, are
recognized in the statement of Profit and Loss.

e) Inventories

Inventories are stated at the lower of cost and net realizable value.

Cost of inventories comprises cost of purchases and all other costs incurred in
bringing the inventories to their present location and condition and are accounted for
as follows:

Raw Material and Stores and Spares: cost includes cost of purchases and other costs
incurred in bringing the inventories to their present location and condition. Cost is
determined on FIFO method.

Work in Progress: cost includes cost of direct material, direct labour and an
appropriate proportion of variable expenses on estimation basis.

Finished goods: cost includes cost of direct material, direct labour and an appropriate
proportion of variable expenses and fixed overhead expenditure or net realizable
value, whichever is lower.

f) Income Recognition

Interest Income

Interest income on loans and advances and security deposit with electricity
department are being accounting for on accrual basis at the rate of interest as
agreed or as allowed by the department.

Interest from Income Tax Department has been accounted for on mercantile basis
based on intimation u/s 143(1) of Income tax Act.

Profit on sale of shares

Profit on sale of shares have been recognized on the sale of shares on the completion
of transfer/delivery of shares and received the payment.

g) Cash and Cash Equivalents

For the purpose of presentation in the Cash Flow Statement, cash and cash
equivalent includes cash in hand, balances with banks in current accounts and Fixed
Deposits with the bank.

h) Financial Liabilities

Initial Recognition and Measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at
historical cost through loans and borrowings or payables, as appropriate.

All financial liabilities are recognized initially at historical cost and, in case of loans,
borrowings and payable, net of directly attributable transaction costs.

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

Subsequent Measurement

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

Trade Payable

Trade payables represent liabilities for goods and services provided to the company
prior to the end of financial year which are unpaid. Trade and other payables are
presented as current liabilities unless payment is not due within 12 months after the
reporting period.

Loans and Borrowings

Borrowings are initially recognized at historical cost. Fees paid on the establishment
of loan facilities are recognized as transaction costs of the loan and is recognized in
profit and loss. Borrowings are classified as current and non- current liabilities based
on the repayment schedule agreed with the bank.

i) Employees benefits

(i) Short-term employee benefit

Liabilities for short-term employee benefits that are expected to be settled within 12
months after the end of the period in which the employees render the related
services are recognized in respect of employees'' services up to the end of the
reporting period and are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as ''Other Current Liabilities'' in the
Balance Sheet.

IMJ Kosi-cmpioymeni rians

(a) Gratuity

Retirement gratuity for employees who have completed the minimum period of
service of 5 years under the Gratuity Act has been recognized. The gratuity due
every year has been calculated and any addition in the gratuity as compared to the
last year has been recognized as an expense in the Statement of Profit and Loss. The
total gratuity payable at the close of the year end is presented as ''Provision for
employee''s benefits'' under "Non-Current Provisions" in the Balance Sheet.

(b) Provident Fund

Contributions in respect of Employees are made to the Fund administrative by the
Regional Provident Fund Commissioner as per the provisions of Employees'' Provident
Fund and Miscellaneous Provisions Act, 1952 and are charged to Statement of Profit
and Loss as and when services are rendered by employees. The company has no
obligation other than the contribution payable to the Regional Provident Fund.

j) Income Tax

The Income Tax expense for the year is the tax payable on the current year''s taxable
income based on the applicable income tax rate.

k) Deferred Tax

Deferred Tax has been recognized based on time difference in Depreciation, which is
being reviewed every year.

l) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss attributable
to equity holders of the Company by the weighted average number of equity shares
outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for
the period attributable to equity holders of the Company and the weighted average
number of shares outstanding during the year is adjusted for the effects of all
dilutive potential equity shares.

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Mar 31, 2024

1. CORPORATE INFORMATION

Ritesh International Ltd ("the company") is a public company limited by shares domiciled in India and incorporated under the provision of Companies Act applicable in India. The equity shares of the company are listed on BSE Limited (BSE) in India. The company is engaged in the business of manufacturing and selling of Stearic Acid, Fatty Acids, Glycerin and Readymade Garments. The registered office and manufacturing facility of the Company is located at Momnabad Road, village Akbarpura, Ahemdgarh-148021, Punjab. In addition, the company has also its manufacturing facility at 356, Industrial Area, A, Ludhiana-141003, Punjab. The CIN of the company is L15142PB1981PLC004736.

2. SIGNIFICANT ACCOUNTING POLICIES:

This note provides a list of the significant accounting policies adopted in the preparation of the standalone financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.

a) Basis of Preparation

i) Compliance with Ind AS

These standalone financial statements comply in all material aspect with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013(the ''Act'') [Companies (Indian Accounting Standards) Rules, 2015] (as amended from time to time) and other relevant provisions of the Act.

ii) Basis of Measurement

These standalone financial statements have been prepared on a historical cost convention on accrual basis in accordance with the generally accepted accounting principles and in accordance with Accounting Standards applicable in India and the provisions of the Companies Act, 2013 as adopted consistently by the Company

iii) Current and Non-Current Classification

The company presents assets and liabilities in the Balance Sheet based on current/non-current classification

An asset is classified as current when it is:

a) expected to be realized or intended to be sold or consumed in the normal operating cycle,

b) the asset is intended for sale or consumption,

c) expected to be realized within twelve months after the reporting period, or

d) cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when

a) it is expected to be settled in the normal operating cycle,

b) it is due to be settled within twelve months after the reporting period, or

c) there is no unconditional right to defer settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents.

b) Revenue from Sale of Products

Revenue from the sale of goods is recognized at the point of time when a control of the goods is transferred to the customer. The normal credit term differs from customer to customer. The revenue is measured on the basis of the consideration defined in the contract/invoice with a customer, including variable consideration, such as discounts etc.

Revenue from services rendered/job work is recognized as the services/job work is rendered and is booked based on the invoices raised.

Profit/loss on dealing in shares at the time of delivery of shares or square up of the deal.

c) Property, Plant and Equipment and Intangible Assets

All Property, Plant and Equipment including capital work in progress are stated at cost except Land and Building which was stated at its revalued asset less accumulated depreciation. Cost of acquisition includes the cost of replacing part of the plant and equipment and borrowing costs and other incidental expenses.

Depreciation Method, Estimated useful life and Residual values

Depreciation is calculated on a pro-rata basis using the straight-line-method to allocate their cost, net of their estimated residual values, over their estimated useful life in accordance with Schedule II to the Act. The company depreciates the property, plant and equipment as under:

Estimated useful lives of the assets are as follows:

Factory Building 30 Years

Plant and Equipment 25 Years

Furniture and Fixture 10 Years

Vehicles 8 to 10 years

An item of Property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on the derecognized of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss when the asset is derecognized.

Plant and equipment not ready to use are disclosed under ''Capital Work in progress.

d) Impairment of Non-financial Assets

The company assess, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount.

Impairment losses of continuing operations, including impairment of inventories, are recognized in the statement of Profit and Loss.

e) Inventories

Inventories are stated at the lower of cost and net realizable value.

Cost of inventories comprises cost of purchases and all other costs incurred in bringing the inventories to their present location and condition and are accounted for as follows:

Raw Material and Stores and Spares: cost includes cost of purchases and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on FIFO method.

Work in Progress: cost includes cost of direct material, direct labour and an appropriate proportion of variable expenses on estimation basis.

Finished goods: cost includes cost of direct material, direct labour and an appropriate proportion of variable expenses and fixed overhead expenditure or net realizable value, whichever is lower.

f) Income Recognition

Interest Income

Interest income on loans and advances and security deposit with electricity department are being accounting for on accrual basis at the rate of interest as agreed or as allowed by the department.

Interest from Income Tax Department has been accounted for on mercantile basis based on intimation u/s 143(1) of Income tax Act.

Profit on sale of shares

Profit on sale of shares have been recognized on the sale of shares on the completion of transfer/delivery of shares and received the payment.

g) Cash and Cash Equivalents

For the purpose of presentation in the Cash Flow Statement, cash and cash equivalent includes cash in hand, balances with banks in current accounts and Fixed Deposits with the bank.

h) Financial Liabilities

Initial Recognition and Measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at historical cost through loans and borrowings or payables, as appropriate.

All financial liabilities are recognized initially at historical cost and, in case of loans, borrowings and payable, net of directly attributable transaction costs.

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

Subsequent Measurement

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

Trade Payable

Trade payables represent liabilities for goods and services provided to the company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.

Loans and Borrowings

Borrowings are initially recognized at historical cost. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan and is recognized in profit and loss. Borrowings are classified as current and noncurrent liabilities based on the repayment schedule agreed with the bank.

i) Employees benefits

(i) Short-term employee benefit

Liabilities for short-term employee benefits that are expected to be settled within 12 months after the end of the period in which the employees render the related services are recognized in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as ''Other Current Liabilities'' in the Balance Sheet.

(ii) Post-Employment Plans

(a) Gratuity

Retirement gratuity for employees who have completed the minimum period of service of 5 years under the Gratuity Act has been recognized. The gratuity due every year has been calculated and any addition in the gratuity as compared to the last year has been recognized as an expense in the Statement of Profit and Loss. The total gratuity payable at the close of the year end is presented as ''Provision for employee''s benefits'' under "Non-Current Provisions" in the Balance Sheet.

(b) Provident Fund

Contributions in respect of Employees are made to the Fund administrative by the Regional Provident Fund Commissioner as per the provisions of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952 and are charged to Statement of Profit and Loss as and when services are rendered by employees. The company has no obligation other than the contribution payable to the Regional Provident Fund.

j) Income Tax

The Income Tax expense for the year is the tax payable on the current year''s taxable income based on the applicable income tax rate.

k) Deferred Tax

Deferred Tax has been recognized based on time difference in Depreciation, which is being reviewed every year.

l) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity holders of the Company and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.

m) Provisions and Contingencies

(i) Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of a past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Assets.

(ii) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard AS-29 on "Provisions, Contingent Liabilities and Contingent Assets''" notified under the Companies (Accounting Standards) Rules, 2006.

n) Segment Reporting

As the Company''s business activities fall within a single primary business segment, the disclosure requirements of Accounting Standards (AS)-17 on "Segment Reporting", issued by The Institute of Chartered Accountants of India are not applicable.

o) Use of Estimates

The preparation of financial statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities during and at the end of the reporting period. Although these estimates are based on the management''s best knowledge of the current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets and liabilities in future periods.

The preparation of standalone financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets and liabilities at the date of these standalone financial statements and the reported amounts of revenue and expenses for the year presented. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed at each balance Sheet date. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods affected.

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Mar 31, 2015

A) Basis of Accounting

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and in accordance with Accounting Standards applicable in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company

b) Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses.

c) Inventories

The inventories have been determined on the basis of FIFO method and basis of determining cost for various categories of inventories are Raw Material at cost price, Finished Goods at market price, Work-in- process at estimated cost and Stores & Spares at cost o r realizable value whichever is lower.

d) Revenue Recognition

The sales are recognized on mercantile basis.

Job work was recognized at the time of raising the invoice in favour of Customer.

Income/Loss against Commodity dealing/Future trading of Shares is recognized at the closing point of the contract.

Profit/loss on dealing in shares at the time of delivery of shares or square up of the deal.

Vat tax liabilities are accounted for on the basis of Vat tax returns filed by the Company with the department. Additional liability, if any, arises at the time of assessment, will be accounted for in the year of finalization of the assessment.

Dividends from investments in shares are recognized in the statement of profit and loss at the time of receipt. Losses arising from retirement or gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the Statement of Profit and Loss.

e) Depreciation

Consequent to the enactment of Companies Act, 2013(the act), the company has computed depreciation with reference to the estimated economic lives of the fixed assets prescribed by the schedule II to the act. Previously, depreciation was calculated on Straight Line Method as per Companies Act, 1956 at the rates of depreciation prevalent at the time of acquisition of assets.

f) Retirement Benefits

Gratuity liability has been accounted for on an accrual basis. Contribution to Provident Fund, Family Pension Scheme, ESI and Leave with Wages are accounted for on an accrual basis and charged to Profit & Loss Account accordingly.

g) Investments

Investments that are readily realizable are classified as current investments. All other investments are classified as long-term investments. Long-term investments and Current Investments are carried at cost plus incidental expenses, if any.Any reductions in the carrying amount and any reversals of such reductions are charged or credited to the Statement of Profit and Loss Profit or loss on sale of investments is determined on the basis of actual carrying amount of investment disposed of.

h) Accounting of Taxes on Income

No Provision for Income tax has been made keeping in view the losses during the year and according to the provisions of Income tax Act, 1961.

Consequent to the issuance of Accounting Standard 22(AS-22) "Accounting for Taxes on Income" by the Institute of Chartered Accountants of India which is mandatory in nature, the company has reviewed Deferred Taxes which result from the timing difference between the Book Profits and Tax Profits.

In consideration of prudence as set out in paragraph 15 to 18 of AS-22, considering the accumulated losses, sufficient future taxable income cannot be estimated with virtual or reasonable certainty. The company therefore has not recognized Net Deferred Tax Assets in the Financial Statement for the current. Further in accordance with paragraph 19 of AS-22 the Net Deferred Tax Asset, if any, shall be reassessed at the end of each Balance Sheet date hereafter and accordingly due recognition shall be given in the Financial Statements.

i) Provisions, Contingent Liabilities and Contingent Assets:

(i) Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of a past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Assets.

(ii) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard AS-29 on "Provisions, Contingent Liabilities and Contingent Assets'" notified under the Companies (Accounting Standards) Rules, 2006.

j) Borrowing Costs:

Borrowing costs, attributable to the acquisition/ construction of qualifying assets are capitalized. Other borrowing costs are charged to the statement of Profit and loss Account.

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Mar 31, 2014

A) Basis of Accounting

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and in accordance with Accounting Standards applicable in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company

b) Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses.

c) Inventories

The inventories have been determined on the basis of FIFO method and basis of determining cost for various categories of inventories are Raw Material at cost price, Finished Goods at market price, Work-in- process at estimated cost and Stores & Spares at cost or realizable value whichever is lower.

d) Revenue Recognition

The sales are recognized on mercantile basis.

Job work was recognized at the time of raising the invoice in favour of Customer.

Profit against Commodity dealing at the time of square up of the contract.

Profit/loss on shares at the time of delivery of shares or square up of the deal.

Vat tax liabilities are accounted for on the basis of Vat tax returns filed by the Company with the department. Additional liability, if any, arises at the time of assessment, will be accounted for in the year of finalization of the assessment.

e) Depreciation

Depreciation has been calculated son Straight Line Method as per Companies Act, 1956 at the rates of depreciation prevalent at the time of acquisition of assets.

f) Retirement Benefits

Gratuity liability has been accounted for on an accrual basis.

Contribution to Provident Fund, Family Pension Scheme, ESI and Leave with Wages are accounted for on an accrual basis and charged to Profit & Loss Account accordingly.

g) Investments

Investments are valued at cost plus incidental expenses, if any.

h) Accounting of Taxes on Income

No Provision for Income tax has been made keeping in view the losses during the year and according to the provisions of Income tax Act, 1961.

Consequent to the issuance of Accounting Standard 22(AS-22) "Accounting for Taxes on Income" by the Institute of Chartered Accountants of India which is mandatory in nature, the company has reviewed Deferred Taxes which result from the timing difference between the Book Profits and Tax Profits.

In consideration of prudence as set out in paragraph 15 to 18 of AS-22, considering the accumulated losses, sufficient future taxable income cannot be estimated with virtual or reasonable certainty. The company therefore has not recognized Net Deferred Tax Assets in the Financial Statement for the current. Further in accordance with paragraph 19 of AS-22 the Net Deferred Tax Asset, if any, shall be reassessed at the end of each Balance Sheet date hereafter and accordingly due recognition shall be given in the Financial Statements.

i) Provisions, Contingent Liabilities and Contingent Assets:

(i) Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of a past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Assets.

(ii) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard AS-29 on "Provisions, Contingent Liabilities and Contingent Assets''" notified under the Companies (Accounting Standards) Rules, 2006.

j) Borrowing Costs:

Borrowing costs, attributable to the acquisition/ construction of qualifying assets are capitalized and the amount capitalized during the year is Rs. NIL(Previous Year Rs.1088948/-). Other borrowing costs are charged to the statement of Profit and loss Account.

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Mar 31, 2013

A) Basis of Accounting

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and in accordance with Accounting Standards applicable in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

b) Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses.

c) Inventories

The inventories have been determined on the basis of FIFO method and basis of determining cost for various categories of inventories are Raw Material at cost price, Finished Goods at market price, Work-in- process at estimated cost and Stores & Spares at cost or realizable value whichever is lower.

d) Revenue Recognition

The sales are recognized on mercantile basis.

Job work was recognized at the time of raising the invoice in favour of Customer.

Profit against Commodity dealing at the time of square up of the contract.

Profit/loss on shares at the time of delivery of shares or square up of the deal.

Vat tax liabilities are accounted for on the basis of Vat tax returns filed by the Company with the department.

Additional liability, if any, arises at the time of assessment, will be accounted for in the year of finalization of the assessment.

e) Depreciation

Depreciation has been calculated on Straight Line Method as per Companies Act, 1956 at the rates of depreciation prevalent at the time of acquisition of assets.

f) Retirement Benefits

Gratuity liability has been accounted for on an accrual basis.

Contribution to Provident Fund, Family Pension Scheme, ESI and Leave with Wages are accounted for on an accrual basis and charged to Profit & Loss Account accordingly.

g) Investments

Investments are valued at cost plus incidental expenses, if any.

h) Accounting of Taxes on Income

No Provision for Income tax has been made keeping in view the losses during the year and according to the provisions of Income tax Act, 1961.

Consequent to the issuance of Accounting Standard 22(AS-22) "Accounting for Taxes on Income" by the Institute of Chartered Accountants of India which is mandatory in nature, the company has reviewed Deferred Taxes which result from the timing difference between the Book Profits and Tax Profits. In consideration of prudence as set out in paragraph 15 to 18 of AS-22, considering the accumulated losses, sufficient future taxable income cannot be estimated with virtual or reasonable certainty. The company therefore has not recognized Net Deferred Tax Assets in the Financial Statement for the current. Further in accordance with paragraph 19 of AS-22 the Net Deferred Tax Asset, if any, shall be reassessed at the end of each Balance Sheet date hereafter and accordingly due recognition shall be given in the Financial Statements.

i) Provisions, Contingent Liabilities and Contingent Assets:

(i) Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of a past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Assets.

(ii) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard AS-29 on "Provisions, Contingent Liabilities and Contingent Assets''" notified under the Companies (Accounting Standards) Rules, 2006. j) Borrowing Costs:

Borrowing costs, attributable to the acquisition/ construction of qualifying assets are capitalized and the amount capitalized during the year is Rs. 1088948/- (Previous Year NIL). Other borrowing costs are charged to the statement of Profit and loss Account.

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Mar 31, 2012

A) Basis of Accounting

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and in accordance with Accounting Standards applicable in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

b) Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses.

c) Inventories

The inventories have been determined on the basis of FIFO method and basis of determining cost for various categories of inventories are Raw Material at cost price, Finished Goods at market price, Work-in- process at estimated cost and Stores & Spares at cost or realizable value whichever is lower.

d) Revenue Recognition

Sale is recognized on mercantile basis.

Job work is recognized at the time of raising the invoice in favour of Customer.

Profit against commodity dealing at the time of square up to the contract.

Vat tax liabilities are accounted for on the basis of Vat tax returns filed by the Company with the department. Additional liability, if any, arises at the time of assessment, will be accounted for in the year of finalization of assessment.

e) Depreciation

Depreciation has been calculated on Straight Line Method as per Companies Act, 1956 at the rates of depreciation prevalent at the time of acquisition of assets.

f) Retirement Benefits

Gratuity liability has been accounted for on accrual basis.

Contribution to Provident Fund, Family Pension Scheme and ESI and Leave with wages are accounted for on accrual basis and charged to Profit & Loss Account accordingly.

g) Investments

Investments are valued at cost plus incidental expenses, if any.

h) Accounting of Taxes on Income

Provision for Income Tax has been made according to the provisions of Income tax Act, 1961.

Consequent to the issuance of Accounting Standard 22(AS-22) "Accounting for Taxes on Income11 by the Institute of Chartered Accountants of India which is mandatory in nature, the company has reviewed Deferred Taxes which result from the timing difference between the Book Profits and Tax Profits.

In consideration of prudence as set out in paragraph 15 to 18 of AS-22, considering the accumulated losses, sufficient future taxable income cannot be estimated with virtual or reasonable certainty. The company therefore has not recognized Net Deferred Tax Assets in the Financial Statement for the current. Further in accordance with paragraph 19 of AS-22 the Net Deferred Tax Asset, if any, shall be reassessed at the end of each Balance Sheet date hereafter and accordingly due recognition shall be given in the Financial Statements.

i) Provisions, Contingent Liabilities and Contingent Assets:

(i) Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Assets.

(ii) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard AS-29 on "Provisions, Contingent Liabilities and Contingent Assets'" notified under the Companies (Accounting Standards) Rules, 2006.

j) Borrowing Cost:

Borrowing costs, attributable to the acquisition/construction of qualifying assets, are capitalized and the amount capitalized during the year is NIL (Previous Year NIL). Other borrowing costs are charged to statement of Profit and loss.

The Working Capital facility secured by hypothecation of entire present and future movable assets of the company such as stocks of raw material, work in process, finished goods, stores & book debts etc. Overdraft facility also guaranteed by promoter directors of the company.

Trade Payable includes Rs. NIL (Previous year Rs. NIL) due to creditors registered with Micro, Small and Medium Enterprises Development Act, 2006(MSME).

No interest is paid/payable during the year to Micro, Small and Medium Enterprises.

The above information has been determined to the extent such parties could be identified on the basis of information available with the Company regarding the status of suppliers under the MSME.

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Mar 31, 2010

A) Accounting Convention

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and in accordance with Accounting Standards applicable in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company

b) Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses.

c) Inventories

The inventories have been determined on the basis of FIFO method and basis of determining cost for various categories of inventories are Raw Material at cost price, Finished Goods at market price, Work-in-process at estimated cost and Stores & Spares at cost or realizable value whichever is lower.

d) Revenue Recognition

Sale is recognized on mercantile basis.

Vat tax liabilities are accounted for on the basis of Vat tax returns filed by the Company with the department. Additional liability, if any, arises at the time of assessment, will be accounted for in the year of finalization of assessment.

e) Depreciation

Depreciation has been calculated on Straight Line Method as per Companies Act, 1956 at the rates of depreciation prevalent at the time of acquisition of assets.

f) Retirement Benefits

Gratuity liability has been accounted for on accrual basis. Contribution to Provident Fund, Family Pension

Scheme and ESI are accounted for on accrual basis and charged to Profit & Loss Account accordingly.

g) Investments

Investments are valued at cost plus incidental expenses, if any.

i) Accounting of Taxes on Income

No provision for Income tax has been made under Income tax Act, 1961, due to carried forward of losses.

Consequent to the issuance of Accounting Standard 22(AS-22) "Accounting for Taxes on Income" by the Institute of Chartered Accountants of India which is mandatory in nature, the company has reviewed Deferred Taxes which result from the timing difference between the Book Profits and Tax Profits.

In consideration of prudence as set out in paragraph 15 to 18 of AS-22, considering the accumulated losses, sufficient future taxable income cannot be estimated with virtual or reasonable certainty. The company therefore has not recognized Net Deferred Tax Assets in the Financial Statement for the Currenty Further in accordance with paragraph 19 of AS-22 the Net Deferred Tax Asset, if any, shall be reassessed at the end of each Balance Sheet date hereafter and accordingly due recognition shall be given in the Financial Statements.