Accounting Policies of Rubfila International Ltd. Company

Mar 31, 2025

C) Summary of Significant Accounting Policies

1 Property, Plant and Equipment (PPE)

For transition to IND AS, the C ompany has elected to
continue with the carrying value of Property, Plant
and Equipment (‘PPE’) recognised as of the transi¬
tion date(1 April 2016), measured as per the Previous
GAAP and use that carrying value as its deemed cost
of the PPE as on the transition date.

Freehold land is carried at cost. All other items
of property, plant and equipment are stated at
cost less depreciation and impairment, if any.
Historical cost includes expenditure that is di¬
rectly attributable to the acquisition of the items.
Capital Work-in-progress includes expenditure in¬
curred till the assets are put into intended use. Capi¬
tal Work-in-Progress are measured at cost less accu¬
mulated impairment losses, if any.

Property, plant and equipment are stated at cost
less accumulated depreciation and accumulated
impairment losses except for freehold land which is
not depreciated. Cost includes purchase price after
deducting trade discount / rebate, import duties,
non-refundable taxes, cost of replacing the com¬
ponent parts, borrowing costs (if any) and other di¬
rectly attributable cost of bringing the asset to its
working condition in the manner intended by the
management, and the initial estimates of the cost
of dismantling /removing the item and restoring the
site on which it is located.

Spare parts procured along with the Plant and
Equipment or subsequently which has a useful life of
more than 1 year and considering the concept of ma¬
teriality evaluated by management are capitalised
and added to the carrying amount of such items.
The carrying amount of items of PPE and spare parts
that are replaced is derecognised when no future
economic benefits are expected from their use or
upon disposal. Other machinery spares are treated
as ‘stores and spares’ forming part of the inventory.

An item of PPE is derecognised on disposal or when
no future economic benefits are expected from use
or disposal. Any gain or loss arising on derecognition
of an item of property, plant and equipment is de¬
termined as the difference between the net disposal
proceeds and the carrying amount of the asset and
is recognised in Statement of Profit and Loss when
asset is derecognised.

The depreciable amount of an asset is determined
after deducting its residual value. Where the residual
value of an asset increases to an amount equal to or
greater than the asset’s carrying amount, no depre¬
ciation charge is recognised till the asset’s residual
value decreases below the asset’s carrying amount.
Depreciation of an asset begins when it is available
for use, i.e., when it is in the location and condition
necessary for it to be capable of operating in the in¬
tended manner.

Depreciation on fixed assets is calculated on a
straight-line basis using the rates arrived at based on
the useful lives prescribed under the schedule II to
the Companies Act, 2013 except for the list of assets
mentioned in the following table, where useful life is
estimated by the management, which is different as
compared to those prescribed under the Schedule II
to the Companies Act, 2013.

Depreciation on fixed assets added/disposed off
during the year is provided on pro rata basis with ref¬
erence to the date of addition/disposal.

Impairment:

The carrying amounts of the Company’s tangible
assets are reviewed at each balance sheet date to
determine whether there is any indication of impair¬
ment. If any such indication exists, the assets’ recov¬
erable amounts are estimated in order to determine
the extent of impairment loss. An impairment loss is
recognized whenever the carrying amount of an as¬
set exceeds its recoverable amount. The impairment
loss, if any, is recognized in the Statement of Profit
and Loss in the period in which impairment takes
place.

Where an impairment loss subsequently reverses,
the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, howev¬
er subject to the increased carrying amount not ex¬
ceeding the carrying amount that would have been
determined (net of amortisation or depreciation)
had no impairment loss been recognized for the as¬
set in prior accounting periods.

The assets’ residual values, useful lives and methods
of depreciation are reviewed at each financial year
end and adjusted prospectively, if appropriate

Intangible Assets

On transition to Ind AS, the company has elected to

continue with the carrying value of all of intangible
assets recognized as at 1st April 2016 measured as
per the previous GAAP and use that carrying value as
the deemed cost of intangible assets.

Cost of software is capitalized as intangible asset
and amortized on a straight-line basis over the eco¬
nomic useful life of three years.

Gains or losses arising from derecognition of an in¬
tangible asset are measured as the difference be¬
tween the net disposal proceeds and the carrying
amount of the asset and are recognized in the State¬
ment of Profit and Loss when the asset is derecog¬
nized.

The residual values, useful lives and methods of
amortization of intangible assets are reviewed by
the management at each financial year and adjusted
prospectively, if appropriate.

3 Investment properties

Property that is held for long-term rental yields or
for capital appreciation or both, and that is not oc¬
cupied by the company, is classified as investment
property. Investment property is measured at its
cost, including related transaction costs and where
applicable borrowing costs less depreciation and
impairment if any.

The residual value and the useful life of an asset is
reviewed at least at each financial year-end based on
a tangible valuation and, if expectations differ from
previous estimates, the change(s) is accounted for
as a change in an accounting estimate in accordance
with Ind AS 8 - Accounting Policies, Changes in Ac¬
counting Estimates and Errors.

4 Investments in subsidiaries

A subsidiary is an entity that is controlled by the
Company. The Company accounts for the invest¬
ments in equity shares of subsidiaries at cost in ac¬
cordance with Ind AS 27- Separate Financial State¬
ments.

5 Impairment

Impairment of non - Financial Asset

The carrying amounts of assets are reviewed at each
balance sheet date for impairment if there is any in¬
dication of impairment based on internal/external
factors. An impairment loss is recognised wherever
the carrying amount of an asset exceeds its recover¬
able amount. The recoverable amount is the greater
of the asset’s net selling price and value in use. In as¬
sessing value in use, the estimated future cash flows

are discounted to their present value using a pre-tax
discount rate that reflects current market assess¬
ments of the time value of money and risks specific
to the asset. In determining net selling price, recent
market transactions are considered, if available. If
no such transactions can be identified, an appropri¬
ate valuation model is used. After impairment, de¬
preciation /amortization is provided on the revised
carrying amount of the asset over its remaining use¬
ful life.

Impairment of Financial Assets:

The company impairs financial assets other than
those measured at fair value through profit or loss
or designated at fair value through other compre¬
hensive income on expected credit losses. The esti¬
mation of expected credit loss includes the estima¬
tion of probability of default (PD), loss given default
(LGD) and the exposure at default (EAD). Estimation
of probability of default apart from involving trend
analysis of past delinquency rates include an estima¬
tion on forward looking information relating to not
only the counterparty but also relating to the indus¬
try and the economy as a whole. The probability of
default is estimated for the entire life of the contract
by estimating the cash flows that are likely to be re¬
ceived in default scenario. The lifetime PD is reduced
to 12 month PD based on an assessment of past his¬
tory of default cases in 12 months. Further, the loss
given default is calculated based on an estimate of
the value of the security recoverable as on the re¬
porting date. The exposure at default is the amount
outstanding at the balance sheet date.

6 Inventories

Inventories are valued at the lower of cost and net
realisable value item wise. Cost includes indirect
cost also. Costs incurred in bringing the inventory to
its present location and condition are accounted for
as follows:

(i) Raw materials: Cost includes cost of purchase
net of duties, taxes that are recoverable from the
Government and other costs incurred in bringing the
inventories to their present location and condition.
Cost is determined on FIFO basis.

(ii) Finished goods and work in progress: Cost in¬
cludes cost of direct materials and labour and a pro¬
portion of manufacturing overheads based on the
normal operating capacity but excluding borrowing
costs if any. Work in progress are valued considering
the cost of direct materials only.

Net realizable 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.

Inventory obsolescence is based on assessment of
the future uses. Obsolete and slow moving items are
subjected to continuous technical monitoring and
are valued at lower of cost and estimated net realiz¬
able value. When Inventories are sold, the carrying
amount of those items are recognized as expenses
in the period in which the related revenue is recog¬
nized.

7 Government Grants, Subsidies and Export incen¬
tives

Government Grants and subsidies are recognized
when there is reasonable assurance that the compa¬
ny will comply with the conditions attached to them
and the grants / subsidy will be received. Export ben¬
efits are accounted on receipt basis only.

Advance License

The Company had obtained 3 advance licenses (Pre¬
vious year 4 Licenses) for duty free import of Raw
Materials. Company has met the export obligation
in full against 3 Licences (Previous year 4 Licenses)
obtained during the current year and has met the
export obligation in full against 3 licences obtained
during previous year.

The company has a receivable of Rs. 56.17 lakhs of
RoDTEP Scripts pending realisation at the end of the
year which is not recognised as revenue in the books
of accounts.

The company has a receivable of Rs.13.17 lakhs (Pre¬
vious Year 4.78 Lakhs) of Duty Drawback pending
realisation at the end of the year which is not rec¬
ognised as revenue in the books of accounts.

---

Mar 31, 2024

3 Material accounting policies

3.1 Revenue

Revenue from contracts with customers is recognized when the Company transfers control of goods or services to the customer at an amount that reflects the consideration expected in exchange for those goods or services. The Company generally acts as the principal in its revenue arrangements because it typically controls the goods or services before transferring them to the customer.

3.2 Property, plant and equipment

Freehold land is recorded at its historical cost. All other property plant and equipment is recognized at cost, less accumulated depreciation and any impairment losses. Capital work-in-progress is reported at its cost, adjusted for any accumulated impairment losses.

Depreciation for property, plant and equipment is calculated on a straight-line basis, expensing the cost (less residual value) over their estimated useful lives, as determined through technical evaluation.See note 4(c) for the other accounting policies relevant to property, plant and equipment.

3.3 Intangible assets

Intangible assets acquired separately are initially recognized at cost. Subsequently, they are carried at cost less any accumulated amortization and accumulated impairment losses.

3.4 Inventory

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

Raw materials, packing materials, consumables and stores and spares: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis. The 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.

Finished goods and work in progress: cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity, Cost is determined on weighted average basis.

Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis.

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

3.5 Trade Receivables

Trade receivables represent amounts due from customers for goods sold or services performed in the ordinary course of business. Initially, they are recognized at the transaction price, as they do not include financing components. Subsequently, the Company measures trade receivables at amortized cost using the effective interest method, net of any loss allowance, with the objective of collecting the contractual cash flows

4 Other Accounting Policies

(a) Property, Plant and Equipment (PPE)

For transition to IND AS, the Company has elected to continue with the carrying value of Property, Plant and Equipment (‘PPE’) recognised as of the transition date(1 April 2016), measured as per the Previous GAAP and use that carrying value as its deemed cost of the PPE as on the transition date.

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

Capital Work-in-progress includes expenditure incurred till the assets are put into intended use. Capital Work-in-Progress are measured at cost less accumulated impairment losses, if any.

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses except for freehold land which is not depreciated. Cost includes purchase

price after deducting trade discount / rebate, import duties, non-refundable taxes, cost of replacing the component parts, borrowing costs (if any) and other directly attributable cost of bringing the asset to its working condition in the manner intended by the management, and the initial estimates of the cost of dismantling /removing the item and restoring the site on which it is located.

Spare parts procured along with the Plant and Equipment or subsequently which has a useful life of more than 1 year and considering the concept of materiality evaluated by management are capitalised and added to the carrying amount of such items. The carrying amount of items of PPE and spare parts that are replaced is derecognised when no future economic benefits are expected from their use or upon disposal. Other machinery spares are treated as ‘stores and spares’ forming part of the inventory.

An item of PPE is derecognised on disposal or when no future economic benefits are expected from use or disposal. Any gain or loss arising on derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss when asset is derecognised.

The depreciable amount of an asset is determined after deducting its residual value. Where the residual value of an asset increases to an amount equal to or greater than the asset’s carrying amount, no depreciation charge is recognised till the asset’s residual value decreases below the asset’s carrying amount. Depreciation of an asset begins when it is available for use, i.e., when it is in the location and condition necessary for it to be capable of operating in the intended manner.

Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives prescribed under the schedule II to the Companies Act, 2013 except for the list of assets mentioned in the following table, where useful life is estimated by the management, which is different as compared to those prescribed under the Schedule II to the Companies Act, 2013.

Depreciation on fixed assets added/disposed off during the year is provided on pro rata basis with reference to the date of addition/disposal.

Impairment:

The carrying amounts of the Company’s tangible assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amounts are estimated in order to determine the extent of impairment loss. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The impairment loss, if any, is recognized in the Statement of Profit and Loss in the period in which impairment takes place.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, however subject to the increased carrying amount not exceeding the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognized for the asset in prior accounting periods.

The assets’ residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate

(b) Intangible Assets

On transition to Ind AS, the company has elected to continue with the carrying value of all of intangible assets recognized as at 1st April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.

Cost of software is capitalized as intangible asset and amortized on a straight-line basis over the economic useful life of three years.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the asset is derecognized.

The residual values, useful lives and methods of amortization of intangible assets are reviewed by the management at each financial year and adjusted prospectively, if appropriate.

(c) Investment properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the company, is classified as investment property. Investment property is measured at its cost, including related transaction costs and where applicable borrowing costs less depreciation and impairment if any.

The residual value and the useful life of an asset is reviewed at least at each financial year-end based on a tangible valuation and, if expectations differ from previous estimates, the change(s) is accounted for as a change in an accounting estimate in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors.

(d) Investments in subsidiaries

A subsidiary is an entity that is controlled by the Company. The Company accounts for the investments in equity shares of subsidiaries at cost in accordance with Ind AS 27- Separate Financial Statements.

(e) Impairment

Impairment of non - Financial Asset The carrying amounts of assets are reviewed at each balance sheet date for impairment if there is any indication of impairment based on inter-nal/external factors. An impairment loss is rec

ognised wherever the carrying amount of an asset exceeds its recoverable amount the recoverable amount is the greater of the asset’s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset. In determining net selling price, recent market transactions are considered, if available. If no such transactions can be identified, an appropriate valuation model is used. After impairment, depreciation /amortization is provided on the revised carrying amount of the asset over its remaining useful life.

Impairment of Financial Assets:

The company impairs financial assets other than those measured at fair value through profit or loss or designated at fair value through other comprehensive income on expected credit losses. The estimation of expected credit loss includes the estimation of probability of default (PD), loss given default (LGD) and the exposure at default (EAD). Estimation of probability of default apart from involving trend analysis of past delinquency rates include an estimation on forward looking information relating to not only the counterparty but also relating to the industry and the economy as a whole. The probability of default is estimated for the entire life of the contract by estimating the cash flows that are likely to be received in default scenario. The lifetime PD is reduced to 12 month PD based on an assessment of past history of default cases in 12 months. Further, the loss given default is calculated based on an estimate of the value of the security recoverable as on the reporting date. The exposure at default is the amount outstanding at the balance sheet date.

(f) Inventories

Inventories are valued at the lower of cost and net realisable value item wise. Cost includes indirect cost also. Costs incurred in bringing the inventory to its present location and condition are accounted for as follows:

(i) Raw materials: Cost includes cost of purchase net of duties, taxes that are recoverable from the Government and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on FIFO basis.

(ii) Finished goods and work in progress: Cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity but excluding borrowing costs if any. Work in progress are valued considering the cost of direct materials only.

Net realizable 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.

Inventory obsolescence is based on assessment of the future uses. Obsolete and slow moving items are subjected to continuous technical monitoring and are valued at lower of cost and estimated net realizable value. When Inventories are sold, the carrying amount of those items are recognized as expenses in the period in which the related revenue is recognized.

(g) Government Grants, Subsidies and Export incentives

Government Grants and subsidies are recognized when there is reasonable assurance that the company will comply with the conditions attached to them and the grants / subsidy will be received. Export benefits are accounted on receipt basis only.

Advance License

The Company had obtained 4 advance licenses (Previous year 7 Licenses) for duty free import of Raw Materials. Company has met the export obligation in full against 4 Licences (Previous year 3 Licenses) obtained during the current year and has met the export obligation in full against 4 licences obtained during previous year.

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Mar 31, 2023

C) Summary of Significant Accounting Policies 1 Property, Plant and Equipment (PPE)

For transition to IND AS, the Company has elected to continue with the carrying value of Property, Plant and Equipment (''PPE'') recognised as of the transition date(1 April 2016), measured as per the Previous GAAP and use that carrying value as its deemed cost of the PPE as on the transition date.

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

Capital Work-in-progress includes expenditure incurred till the assets are put into intended use. Capital Work-in-Progress are measured at cost less accumulated impairment losses, if any."

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses except for freehold land which is not depreciated Cost includes purchase price after deducting trade discount / rebate, import duties, non-refundable taxes, cost of replacing the component parts, borrowing costs (if any) and other directly attributable cost of bringing the asset to its working condition in the manner intended by the management, and the initial estimates of the cost of dismantling /removing the item and restoring the site on which it is located.

Spare parts procured along with the Plant and Equipment or subsequently which has a useful life of more than 1 year and considering the concept of materiality evaluated by management are capitalised and added to the carrying amount of such items. The carrying amount of items of PPE and spare parts that are replaced is derecognised when no future economic benefits are expected from their use or upon disposal. Other machinery spares are treated as ''stores and spares'' forming part of the inventory.

An item of PPE is derecognised on disposal or when no future economic benefits are expected from use or disposal. Any gain or loss arising on derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss when asset is derecognised.

The depreciable amount of an asset is determined after deducting its residual value. Where the residual value of an asset increases to an amount equal to or greater than the asset''s carrying amount, no depreciation charge is recognised till the asset''s residual value decreases below the asset''s carrying amount. Depreciation of an asset begins when it is available for use, i.e., when it is in the location and condition necessary for it to be capable of operating in the intended manner.

Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives prescribed under the schedule II to the Companies Act, 2013 except for the list of assets mentioned in the following table, where useful life is estimated by the management, which is different as compared to those prescribed under the Schedule II to the Companies Act, 2013.

Impairment:

The carrying amounts of the Company''s tangible assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets'' recoverable amounts are estimated in order to determine the extent of impairment loss. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The impairment loss, if any, is recognized in the Statement of Profit and Loss in the period in which impairment takes place.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, however subject to the increased carrying amount not exceeding the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognized for the asset in prior accounting periods.

The assets'' residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate

2 Intangible Assets

On transition to Ind AS, the company has elected to continue with the carrying value of all of intangible assets recognized as at 1st April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.

Cost of software is capitalized as intangible asset and amortized on a straight-line basis over the economic useful life of three years.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the asset is derecognized.

The residual values, useful lives and methods of amortization of intangible assets are reviewed by the management at each financial year and adjusted prospectively, if appropriate.

3 Investment properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied

by the company, is classified as investment property. Investment property is measured at its cost, including related transaction costs and where applicable borrowing costs less depreciation and impairment if any.

The residual value and the useful life of an asset is reviewed at least at each financial year-end based on a tangible valuation and, if expectations differ from previous estimates, the change(s) is accounted for as a change in an accounting estimate in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors.

4 Investments in subsidiaries

A subsidiary is an entity that is controlled by the Company. The Company accounts for the investments in equity shares of subsidiaries at cost in accordance with Ind AS 27- Separate Financial Statements.

5 Impairment

Impairment of non - Financial Asset

The carrying amounts of assets are reviewed at each balance sheet date for if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount the recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset. In determining net selling price, recent market transactions are considered, if available. If no such transactions can be identified, an appropriate valuation model is used. After impairment, depreciation /amortization is provided on the revised carrying amount of the asset over its remaining useful life.

Impairment of Financial Assets:

The company impairs financial assets other than those measured at fair value through profit or loss or designated at fair value through other comprehensive income on expected credit losses. The estimation of expected credit loss includes the estimation of probability of default (PD), loss given default (LGD) and the exposure at default (EAD). Estimation of probability of default apart from involving trend analysis of past delinquency rates include an estimation on forward looking information relating to not only the counterparty but also relating to the industry and the economy as a whole. The probability of default is estimated for the entire life of the contract by estimating the cash flows that are likely to be received in default scenario. The lifetime PD is reduced to 12 month PD based on an assessment of past history of default cases in 12 months. Further, the loss given default is calculated based on an estimate of the value of the security recoverable as on the reporting date. The exposure at default is the amount outstanding at the balance sheet date.

6 Inventories

Inventories are valued at the lower of cost and net realisable value item wise. Cost includes indirect cost also. Costs incurred in bringing the inventory to its present location and condition are accounted for as follows:

(i) Raw materials: Cost includes cost of purchase net of duties, taxes that are recoverable from the Government and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on FIFO basis.

(ii) Finished goods and work in progress: Cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity but excluding borrowing costs if any. Work in progress are valued considering the cost of direct materials only.

Net realizable 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.

Inventory obsolescence is based on assessment of the future uses. Obsolete and slow moving items are

subjected to continuous technical monitoring and are valued at lower of cost and estimated net realizable value. When Inventories are sold, the carrying amount of those items are recognized as expenses in the period in which the related revenue is recognized.

7 Government Grants, Subsidies and Export incentives

Government Grants and subsidies are recognized when there is reasonable assurance that the company will comply with the conditions attached to them and the grants / subsidy will be received. Export benefits are accounted on receipt basis only.

Advance License

The Company had obtained 7 advance licenses (Previous year 3 Licenses) for duty free import of Raw Materials. Company has met the export obligation in full against the 3 Licences (Previous year 2 Licenses).

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Mar 31, 2018

Corporate Information

Rubfila International Limited (RIL) is a Public Listed Company promoted by Rubpro Sdn. Bhd, Malaysia along with Kerala State Industrial Development Corporation (KSIDC) and has been in operation since 1994. The company is listed in Bombay Stock Exchange (BSE)

Rubfila is the only Indian manufacturer to manufacture both Talcum Coated and Silicon Coated Rubber threads. The company has adopted internationally accepted quality standards and its products are well received among customers both in India as well as around the world. RIL also produces premium products catering to highly niche'' areas like toys, fishing, catheters, meat packing, medical webbing, bungee jumping cords etc.

1. SIGNIFICANT ACCOUNTING POLICIES

1.1 Statement of Compliance

Financial statements have been prepared in accordance with the accounting principles generally accepted in India including Indian Accounting Standards (Ind AS) prescribed under the Section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Accounting Standards) Amendment Rules, 2016. The aforesaid financial statements have been approved by the Board of Directors in the meeting held on 10th May 2018

For all periods up to and including the period ended 31 March 2017, the Company prepared its financial state-

ments in accordance with requirements of the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 ("Previous GAAP"). These are the first Ind AS financial statements of the Company. The date of transition to Ind AS is 1 April 2016. Refer note no. 48 for the details of first-time adoption exemptions availed by the Company, reconciliations and descriptions of the effect of the transition.

1.2 Basis of preparation

In accordance with the notification issued by the Ministry of Corporate Affairs, the Company is required to prepare its financial statements as per the Indian Accounting Standards (''Ind AS'') prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Accounting Standards) Amendment Rules, 2016 with effect from 1 April, 2017. Accordingly, the Company has prepared these financial statements which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Statements of Cash Flows and the Statement of Changes in Equity for the period ended 31 March 2018, and accounting policies and other explanatory information (together hereinafter referred to as" financial statements").

The financial statements have been prepared on a historical cost basis on the accrual basis of accounting, except for the following -

a. Financial assets and liabilities that is measured at fair value;

b. defined benefit plans - plan assets measured atfairval-ue;

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

These financial statements are presented in Indian Rupees (''), which is also the Company''s functional currency. All amounts are in Indian Rupees rounded off to lakhs, except share data and per share data, unless otherwise stated

1.3 Current versus 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:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily forthe purpose of trading

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent 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:

It is expected to be settled in normal operating cycle It is held primarily forthe purpose of trading

It is due to be settled within twelve months after the reporting period, or

There is no unconditional right to defer the settlementof the liability for at least twelve months after the reporting period

All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current - noncurrent classification of assets and liabilities.

1.4 Use of Estimates

In the preparation of financial statements, the management makes estimates and assumptions in conformity with the Generally Accepted Accounting Principles in India. Such estimates and assumptions are made on reasonable and prudent basis taking into account all available information. However actual results could differ from these estimates and assumptions and such differences are recognized in the period in which results are ascertained. The estimates and underlying assumptions are reviewed on an ongoing basis.

The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 47.

1.9 Inventories

Inventories are valued at the lower of cost and net realisable value item wise. Cost includes indirect cost also. Costs incurred in bringing the inventory to its present location and condition are accounted for as follows:

(i) Raw materials: Cost includes cost of purchase net of duties, taxes that are recoverable from the Government and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on FIFO basis using weighted average rate.

(ii) Finished goods and work in progress: Cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity but excluding borrowing costs. Cost is determined on weighted average basis.

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

1.5 Plant Property & Equipment

On transition to Ind AS, the company has elected to continue with the carrying value of all of its property, plant and equipment recognised as at 1st April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment, with corresponding adjustments to recognize the amount of unamortised deferred grant income as at the date of the transition.

Property, plant and equipment (except freehold land) arestated at cost of acquisition less accumulated depreciation and impairment if any. Freehold land is carried at historical cost. The company is adoptingthe cost model for determining gross carrying amount. Cost comprises of purchase price, inward freight, duties, taxes and any attributable cost of bringing the assets to its working condition for its intended use.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components). The cost of replacement spares/ major inspection relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the company and the cost of the item can be measured reliably.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed by the management at each financial year and adjusted prospectively, if appropriate.

Assets in the course of construction are capitalized in capital work in progress account. At the point when an asset is capable of operating in the manner intended by management, the cost of construction is transferred to the appropriate category of property, plant and equipment. Costs associated with the com missioning of an asset are capitalised when the asset is available for use but incapable of operating at normal levels until the period of commissioning has been completed. Revenue generated If any, from production during the trial period is credited to capital work in progress.

Depreciation on fixed assets is calculated on a straight line basis using the rates arrived at based on the useful lives prescribed under the schedule II to the Companies Act, 2013 except for plant and machinery and servers where useful life is estimated by the management, which is different as compared to those prescribed under the Schedule II to the Companies Act, 2013.

The Company has aligned the depreciation rates based on the useful lives as specif led in Part ''C'' of Schedule 11 to the Act, except for the following assets, which are being depreciated based on the managements estimate of the useful life of tangible fixed assets. In the case of buildings useful lives are lower than the lives as per Schedule II of the Act:

Block of Assets	Estimated life considered for depreciation	Estimated life as per Schedule 2 of Companies Act, 2013
Building
• Office	58	60
• Factory	28	30
Plant and Machinery
• Production Line	18	8
• Factory Equipment	9	8
• Lab Equipment	10	8

LOSS arising irom me retirement 01, anu gains anu losses arising from disposal of fixed assets which are carried at cost are recognised in the Statement of Profit and Loss

Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their net book value and net realisable value and are classified under other current assets in financial statements. Any expected loss is recognised immediately in the Statement of Profit and Loss.

1.6 Intangible Assets

On transition to Ind AS, the company has elected to continue with the carrying value of all of intangible assets recognised as at 1st April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.

Cost of software is capitalised as intangible asset and amortised on a straight-line basis over the economic useful life of three years.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is derecognised.

The residual values, useful lives and methods of depreciation of intangible assets are reviewed by the management at each financial year and adjusted prospectively, if appropriate.

1.7 Impairment of non - Financial Asset

The carry ing amounts of assets a re reviewed at each balance sheet date for if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. After impairment, depreciation/amortization is provided on the revised carrying a mount of the asset over its remaining useful life.

1.8 Financial assets

All financial assets are initially measured at fair value and transaction cost that is attributable to the acquisition of the financial asset is also adjusted.

Financial assets are classified using the following measurement categories:

• To be measured subsequently at fair value (either through other comprehensive income or through profit and loss), and;

• To be measured at amortised cost.

a. Trade Receivable

I. Trade receivables are recognized initially at fair value and subsequently measured at amortised cost, less provision for impairment.

II. For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 11 and IndAS 18, provision for bad and doubtful debts is based on the simplified approach of impairment of trade receivables permitted by Ind AS 109: Financial instruments which requires lifetime expected credit losses to be recognized excepting those which are contractually not due as per the terms of the contract or those which are considered realizable based on a case to case review. The expected credit loss is computed based on historical credit loss experience and is adjusted for forward looking information and also takes into account available external and internal credit risk factors.

b. Other loans and receivables

Other loans and receivables are measured at amortised cost, using the effective interest method less impairment. Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.

c. Derecognition of financial asset

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the assetto another party.

1.9 Financial liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit and loss, loans and borrowings or payables.

All financial liabilities are recognised initially atfair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective interest rate method. Gains and losses are recognised in profit and loss when the liabilities are derecog-nised as well as through the amortisation of effective interest.

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires.

Offsetting of financial instruments

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

1.10 Revenue Recognition

Revenue from operations comprise the fair value of the consideration received or receivable for the sale of goods and rendering of services in the ordinary course of the the company''s activities. The Company recognises revenue when the amount of revenue and related cost can be reliably measured, when it is probable that the collectability of the related receivable is reasonably as-

sured and when the specific criteria for each of the company''s activities are met as follows -

a. Sale of Goods:

Sales are recognised when significant risks and rewards of ownership of goods have been passed to the buyer.

b. Export benefits/incentives:

Export incentives under various schemes notified by the Government are recognized when confirmation of the right to receive the income is established. Receipts from government by way of Duty Draw Back is recognized on receipt basis.

c. Other incomes:

Other incomes are recognised on accrual basis except when there are significant uncertainties.

Interest income is recognised on accrual basis using effective interest rate method.

1.11 Foreign Currency Transactions and Translations

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

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when such values were determined. A monetary asset or liability is termed as a long-term foreign currency monetary item, if the asset or liability is expressed in a foreign currency and has a term of 12 months or more at the date of origination of the asset or liability.

Exchange differences: Exchange differences arising on the settlement of monetary items or on reporting the Company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they occur. The exchange differences arising on restatement / settlement of long-term foreign currency monetary items are capitalized as part of the depreciable fixed assets to which the monetary item relates and depreciated over the remaining useful life of such assets.

1.12 Government Grants, Subsidies and Export incentives

Government Grants and subsidies are recognized when there is reasonable assurance that the company will comply with the conditions attached to them and the grants/subsidy will be received. Export benefits are accounted on receipt basis only.

Advance License

The Company had obtained 2 advance licenses (Previous year 12 Licenses) for duty free import of Raw Materials. Company has met the export obligation in full against the 2 Licences (Previous year 11 Licenses).

1.13 Employee Benefits

The Company makes defined contribution to Government Employee Provident Fund, Employee Deposit Linked Insurance, Employee state insurance and labour welfare funds which are recognised in the Statement of Profit and Loss on accrual basis. The Company has no further obligations under these plans beyond its monthly contributions.

a) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and recognized in the period in which the employee renders the related service.

b) Defined Contribution Plans

The company has defined contribution plans for em-

ployees comprising of Provident Fund and Employee''s State Insurance. The contributions paid/payable to these plans during the year are recognised as employee benefit expense in the Statement of Profit and Loss for the year.

c) Defined Benefit Plans: Gratuity

The net presentvalue of the obligation for gratuity benefits are determined by independent actuarial valuation, conducted annually using the projected unit credit method.

The retirement benefit obligations recognised in the Balance Sheet represents the present value of the defined benefit obligations reduced by the fair value of plan assets. All expenses represented by current service cost, past service cost, if any, and net interest on the defined benefits are recognised immediately in Statement of Profit and Loss as past service cost, if any, and net interest on the defined benefit liability/(asset) are recognised in the Statement of Profit and Loss.

Remeasurements of the net defined benefit liability/(asset) comprising actuarial gains and losses and the return on the plan assets(excludingamounts included in netin-terest), are recognised in Other Comprehensive Income. Such remeasurements are not reclassified to the Statement of Profit and Loss in the subsequent periods.

d) Long Term Employee Benefits: Compensated absences

The company has a scheme for compensated absences for employees, the I lability of which is determined on the basis of an actuarial valuation carried out at the end of the year, using the projected unit credit method. Actuarial gains and losses are recognised in full in the Statement of Profit and Loss for the period in which they occur.

1.14 Cash Flows and Cash and Cash Equivalents

Statement of cash flows is prepared in accordance with the indirect method prescribed in the Ind AS 7. For the purpose of presentation in the statement of cash flows, . cash and cash equivalents includes cash on hand, ft cheques and drafts on hand, deposits held with Banks, • other short term highly liquid investments with original maturities of 3 months or less that are readily convertibleto known amounts of cash and which are subject to an insignificant risk of changes in value.

11.15 Inter Corporate Deposits

Company had advanced Inter Corporate loans to companies on short term basis at a specific rate of interest against security. The amount yet to receive is shown as H Inter Corporate Deposits in the Balance Sheet. Interest

H received from above is recognized in the Statement of P Profit and Loss.

1.16 Segment Reporting

The Company has identified business segments as its primary segment and geographic segments as its sec-^ ondary segment. The company has only one primary

J segment namely Manufacture and sale of Heat Resistant

H Latex Rubber Thread. Hence segment reporting for primary segment is not applicable. Secondary Segment is on the basis of Geographical revenues, allocated based on the location of the customer. Geographic segments of the company are disclosed as follows: Revenue outside India, i.e., Sales in Export Market, and Revenue with in India, i.e., Sales in Domestic Market.

1.17 Earnings per Share

Basic earnings per share is computed by dividing the profit after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the prof it after tax (including post tax effects of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered 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. Since the company doesn''t have any potential Equity shares, Dilute & Basic EPS are the same.

1.18 Taxation Income Tax

Current tax is determined as the amount of tax payable in respect of taxable income for the year computed in accordance with the provisions of the Income Tax Act, 1961. Taxable income differs from ''profit before tax'' as reported in the Statement of Profit and Loss 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 that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised 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 utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Any such reduction shall be reversed to the extent that it becomes probable that sufficient taxable profit will be available.

Deferred tax I labilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substan-tively enacted by the end of the reporting period.

Current and deferred tax are recognised in the Statement of Prof it and Loss, except when they relate to items that are recognised in other comprehensive income or items related to equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

1.19 Provisions and Contingencies

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the a mount of the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, it''s carrying amount is the present value of those cash flows(when the effect of time value of money is material). These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

When the company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent Liabilities are disclosed when the company has a possible obligation or a present obligation and it is probable that an outflow of resources will not be required to settle the obligation or the amount of obligation cannot be measured with sufficient reliability. Contingent assets are not recognized in the books of account. If it has become virtually certain that an inflow of economic benefits will arise, the asset and the related income are recognised in the financial statements of the period in which the change occurs. If an inflow of economic benefits has become probable, an entity discloses the contingent asset

1.20 Corporate social responsibility

All expenditure are recognized in Statement of profit on loss on accrual basis and hence no provision is made against unspent a mount, if any.

1.21 Recent accounting pronouncements

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendmentwill come into force from April 1, 2018. The Company has evaluated the effect of this on the financial statements and the impact is not material.

Ind AS 115- Revenue from Contract with Customers:

The Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers on28th March 2018. The standard replaces existing revenue recognition standards Ind AS 11 Construction Contracts and Ind AS 18 Revenue. An entity should recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows a rising from the entity''s contracts with customers.

The standard permits two possible methods of transition:

• Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS8-Accounting Policies, Changes in Accounting Estimates and Errors

• retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application(Cumulative catch - up approach) The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1,2018.

The effective date for adoption of Ind AS 115 is financial periods beginning on or after 1 April 2018. The Company will adopt the standard on 1 April 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended 31 March 2018 will not be retrospectively adjusted. The Company is still in the process of evaluating the impact on application of Ind AS 115. The Company has evaluated the disclosure requirements of the amendment and the effect on the financial statements is not expected to be material.

NOTE 2 A: PROPERTY PLANT & EQUIPMENT

Description of Assets	Land	Building	Plant& Equipment	Furniture & Fixtures	Vehicles	Office Equipemt	Computer & Accessories	Total	Intangible Assets	Capital Work in Progress
Gross block
Deem ed cost of asset at 1 April, 2016	7.30	911.67	6,264.38	30.80	32.66	26.78	55.40	7,328.99	8.00
Additions	-	251.16	806.81	0.94	49.34	2.38	3.00	1,113.63	-	32.55
Disposals/ Transfers	-		-	-	15.91			15.91	-
As at 31st March, 2017	7.30	1,162.83	7,071.19	31.74	66.09	29.16	58.40	8,426.71	8.00	32.55
Depreciation Block
Accumulated Depreciation as at 1 April, 2016	-	233.12	4,346.25	22.54	15.27	13.15	49.40	4,679.73	6.49
Depreciation for the year	-	31.33	251.39	1.02	5.82	5.49	3.22	298.27	1.31
Eliminated on disposal of Assets	_				7.95		_	7.95
Accumulated Depreciation /Amortisation as at 31st March, 2017		264.45	4,597.64	23.56	13.14	18.64	52.62	4,970.05	7.80
Net Block
As at 31st March, 2017	7.30	898.38	2,473.55	8.18	52.95	10.52	5.78	3,456.66	0.20	32.55
As at 31st March, 2016	7.30	678.55	1,918.13	8.26	17.39	13.63	6.00	2,649.26	1.51

NOTE 2 : PROPERTY PLANT & EQUIPMENT

Description of Assets	Land	Building	Plant& Equipment	Furniture & Fixtures	Vehicles	Office Equipemt	Computer& Accessories	Total	Intangible Assets	Capital Work in Progress
Gross block
Deemed cost of asset at 1
April, 2017	7.30	1,162.84	7,071.20	31.74	66.09	29.16	58.40	8,426.73	8.00	32.55
Additions		341.51	1,070.47	2.59		0.88	2.93	1,418.38	2.25	319.42
Disposals/ Transfers		-				-		-	-	32.55
As at 31st March, 2018	7.30	1,504.35	8,141.67	34.33	66.09	30.04	61.33	9,845.11	10.25	319.42
Depreciation Block
Accumulated Depreciation
as at 1 April, 2017		264.46	4,597.65	23.56	13.14	18.64	52.62	4,970.07	7.80
Depreciation for the year		44.63	296.18	1.15	7.87	2.72	3.33	355.88	0.36
Eliminated on disposal of
Assets		-				-		-	-
Accumulated Depreciation
/Amortisation as at 31st
March, 2018	-	309.09	4,893.83	24.71	21.01	21.37	55.95	5,325.96	8.16
Net Block
As at 31st March, 2018	7.30	1,195.26	3,247.84	9.62	45.08	8.68	5.37	4,519.15	2.09	319.42
As at 31st March, 2017	7.30	898.38	2,473.55	8.18	52.95	10.52	5.78	3,456.66	0.20	32.55

As stated in Note No 1.5, the Company has elected to continue with the carry ing value of all of its property, plant and equipment recognised as of April 1,2016 (transition date) measured as per the previous GAAP and use that carry ing value as its deemed cost as of the transition date. Accordingly, the net block as on 01.04.2016 aggregating to Rs 2,649.26 Lakhs com prising of carrying value of various assets as follows, is considered as the deemed cost of the respective property, plant and equipment: As stated in Note No 1.6, the Company has elected to continue with the carry ing value of all of its intangible assets recognised as of April 1,2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date. Accordingly, the net block as on 01.04.2016 aggregating to Rs 1.51 Lakhs, comprising of carrying value of various assets as follows, is considered as the deemed cost of the respective intangible assets: Capital of other commitments:

There are no material commitments at the end of the year other than the construction of new ETP Plant of which the budgeted commitments a re almost net and pending for capitalisation.

NOTE 3. INVESTMENT PROPERTY

Particulars	As at 31st March, 2018 in Rs. Lakhs	As at 31st March, 2017 in Rs. Lakhs	As at 1st April, 2016 in Rs.Lakhs
Free hold Land to the extent ofll.87 Acress in Coim-batore District, Pollachi Taluk, Tamilnadu	128.15	128.15	128.15
Total	128.15	128.15	128.15

NOTE 4. TRADE RECEIVABLES (NON CURRENT)

Particulars	As at 31st March, 2018 in f Lakhs	As at 31st March, 2017 in f Lakhs	As at 1st April, 2016 in f Lakhs
Trade receivables outstanding more than one year
Unsecured, Considered Good	9.33	8.75	14.34
Doubtful	9.33	8.65	10.65
	18.66	17.40	24.99
Less Provision for doubtful Trade receivables	9.33	8.65	10.65
Total	9.33	8.75	14.34

NOTE 5. LOANS (NON CURRENT)

	As at	As at	As at
Particulars	31st March, 2018 in f Lakhs	31st March, 2017 in f Lakhs	1st April, 2016 in f Lakhs
Unsecured, Considered Good
Deposit with Bank	9.75	9.05	8.28
Security Deposits with various authorities	55.40	31.73	30.51
Abhisar Buildwell Pvt Limited	820.00	820.00	800.00
Total	885.15	860.78	838.79

The company has discontinued the job work arrangement with Abhisar Buildwell Pvt. Limited due to the lack of operational feasibility in Agartala in the year 2015-2016. The company has claimed for the refundable deposit paid to M/s Abhisar Buildwell Pvt. Limited as per the terms of the agreement. The issue is pending before the Arbitral Authority and no provision has been made in the books of accounts of the company considering the merits of the case and agreement.

NOTE 6. OTHER FINANCIAL ASSETS (NON CURRENT)

	As at	As at	As at
Particulars	31st March, 2018 in f Lakhs	31st March, 2017 in f Lakhs	1st April, 2016 in f Lakhs
Unsecured, Considered Good
Bank Guarantee	23.09	23.09	23.09
Deposit Account- Unpaid Dividend	63.78	54.15	56.20
Total	86.87	77.23	79.29

NOTE 7. OTHER NON CURRENT ASSETS

Particulars	As at 31st March, 2018 in f Lakhs	As at 31st March, 2017 in f Lakhs	As at 1st April, 2016 in f Lakhs
Unsecured, Considered Good
Capital Advance to Suppliers	1.67	220.43	1.46
Telephone Deposit	0.03	0.03	0.03
VAT Credit Receivable	386.08	386.08	265.86
Income Tax Paid/ Deducted	2.08	2.08	2.08
Total	389.86	608.62	269.43

NOTES. INVENTORIES

Particulars	As at 31st March, 2018 in f Lakhs	As at 31st March, 2017 in f Lakhs	As at 1st April, 2016 in f Lakhs
(a) Raw Materials	501.55	383.67	381.12
(b) Work in Progress	167.47	139.19	90.14
(c) Stores & Spares	115.32	85.41	96.74
d) Finished Goods (other than those acquired fortrading)	258.16	75.57	151.69
Total	1, 042.50	683.84	719.69

NOTE 9. TRADE RECEIVABLES (CURRENT)

	As at	As at	As at
Particulars	31st March, 2018 in f Lakhs	31st March, 2017 in f Lakhs	1st April, 2016 in f Lakhs
Trade receivables outstanding Less than oneyear
Unsecured, Considered Good	3,074.67	2,056.04	2,658.07
Doubtful	13.35	2.48	7.62
	3,088.02	2,058.52	2,665.69
Less Provision for doubtful Trade receivables	13.35	2.48	7.62
	3,074.67	2,056.04	2,658.07
Advance to Suppliers	2.07	5.46	82.00
Total	3,076.74	2,061.50	2,740.07

NOTE 10. CASH & CASH EQUIVALENTS

Particulars	As at 31st March, 2018 in f Lakhs	As at 31st March, 2017 in f Lakhs	As at 1st April, 2016 in f Lakhs
(a) Cash on hand (b) Balances with Banks -In Current Accounts	1.58 216.13	1.96 255.39	2.90 447.81
Total	217.71	257.35	450.71

FOR THE PURPOSE OF THE STATEMENT OF CASHFLOWS, CASH AND CASH EQUIVALENTS COMPRISE THE FOLLOWING :

	As at	As at	As at
Particulars	31st March, 2018 in f Lakhs	31st March, 2017 in f Lakhs	1st April, 2016 in f Lakhs
Balances with Banks
On Current accounts	194.70	245.34	426.25
Deposits with original maturity of less than three month		_	_
Cheques/ drafts on hand		-	-
Cash on Hand	1.58	1.96	2.90
Total	196.28	247.30	429.15

Unpaid dividend amount of the previous year marked in current accounts a re not considered as cash and cash equilents for cash flow purpose being the balance is considered as restricted fund.

NOTE 11. BANK BALANCE OTHER THAN CASH & CASH EQUIVALENTS

Particulars	As at 31st March, 2018 in f Lakhs	As at 31st March, 2017 in f Lakhs	As at 1st April, 2016 in f Lakhs
(b) Balances with Banks Fixed Deposit	140.00	10.00	50.00
Total	140.00	10.00	50.00

NOTE 12. LOANS (CURRENT)

Particulars	As at 31st March, 2018 in f Lakhs	As at 31st March, 2017 in f Lakhs	As at 1st April, 2016 in f Lakhs
Inter Corporate Deposits Unnsecured, Considered Good	3,099.00	2,143.00	1,300.00
Total	3,099.00	2,143.00	1,300.00

NOTE 13. OTHER CURRENT FINANCIAL ASSETS

Particulars	As at 31st March, 2018 in f Lakhs	As at 31st March, 2017 in f Lakhs	As at 1st April, 2016 in f Lakhs
Interest Accrued on inter corporate Deposits	85.44	33.18	7.92
Insurance claim Receivable	0.28	3.90	1.44
Total	85.72	37.08	9.36

NOTE 14. OTHER CURRENT ASSETS

Particulars	As at 31st March, 2018 in f Lakhs	As at 31st March, 2017 in f Lakhs	As at 1st April, 2016 in f Lakhs
GST Tax Credit Receivable	2.11	-	-
CENVAT Credit Receivable		36.21	12.71
Service Tax Credit Receivable		6.28	5.03
Advances to Employees	0.31	0.39	0.50
Prepaid Expense (Unsecured, Considered good)	8.64	8.41	7.47
Other Deposit	0.13	1.21	0.24
Total	11.20	52.50	25.95

NOTE 15. SHARE CAPITAL

	As at 31st March, 2018		As at 31st March, 2017
	No. of Shares	in f Lakhs	No. of Shares	in f Lakhs
Authorised Capital
Equity Shares of f 5 each with voting rights	70000000	3,500.00	70000000	3,500.00
Issued, Subscribed and Paid up Capital
Equity shares of Rs. 5 each with voting rights	45217529	2,260.88	43217529	2,160.88
Total	45217529	2,260.88	43217529	2,160.88

Rights, Preference and restrictions attached to equity shares.

The company has only one class of equity shares having par value of Rs. 5 per share. Each holder of equity share is entitled to vote per share. The dividend proposed is as recommended by the Board of Directors and subject to the approval of the shareholders in the ensuing Annual General Meeting. For the year ended 31st March, 2018, the a mount of dividend per share recognised as distributions to equity shareholders isRs.1.00 (31st March, 2017- Rs. 0.75)

Reconciliation of shares at the beginning and at the end of the financial year

Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period (Equity shares with voting rights):

Particulars	As at 31st March, 2018		As at 31st March, 2017
	No. of Shares	in f Lakhs	No. of Shares	in f Lakhs
Shares outstanding at the beginning of the year	43217529	2,160.88	43217529	2,260.88
Add: Shares issued during theyear	2000000	100.00	Nil	Nil
Less: Shares bought back duringthe year	Nil	Nil	Nil	Nil
Shares outstanding at the end of the year	45217529	2,260.88	43217529	2,160.88

DETAILS OF SHARES HELD BY EACH SHAREHOLDER HOLDING MORE THAN 5% SHARES:

Mar 31, 2016 Corporate Information Rubfila International Limited (RIL) is a Public Limited Company promoted by Rubpro Sdn. Bhd., Malaysia and Kerala State Industrial Development Corporation, with its plant located at New Industrial Development Area, Kanjikode, Palakkad, Kerala. Kerala is the heartland of natural rubber in India. The production facility of RIL is designed to produce both Talc Coated Rubber Thread (TCR) as well as Silicon Coated Rubber Thread (SCR). RIL is the market leader in India in the business of rubber threads and is also a leading exporter of the product from India. RIL produces rubber threads for various applications like apparel, food grade, furniture webbing, bungee jumping, toys, medical netting, diapers, catheter manufacturing etc. 1. Summary of Significant Accounting Policies 1.1 Basis of accounting and preparation of Financial Statements These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation with and recommendations of the National Financial Reporting Authority, the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006, as amended (the ''Rules''), continue to be applicable, accordingly, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under the Rules and other relevant provisions of the Companies Act, 2013. 1.2 Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying financial statements. Any revisions to accounting estimates are recognized prospectively in current and future periods. 1.3 Current - Non Current Classification All assets and liabilities have been classified as current and non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and services and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities. 1.4 Inventories Raw Materials are valued at the lower of cost on FIFO basis and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost of inventory comprises of Cost of Purchase, Cost of Conversion and other costs incurred to bring them to their respective present location and condition including octroi and other levies, transit insurance and receiving charges. Finished goods include appropriate proportion of overheads and are valued at lower of the Cost or Net Realizable Value whichever is less. 1.5 Current Assets Company had advanced Inter Corporate loans to companies for a particular period at a specific rate of interest against security. The amount yet to receive is shown as Inter Corporate Deposits in the Balance Sheet. Interest received from above is recognized in the Statement of Profit and Loss. 1.6 Cash and Cash Equivalents (for purposes of Cash Flow Statement) Cash comprises cash on hand and demand deposits with banks. Cash equivalents are term deposits with various banks with an original maturity of less than 90 days. 1.7 Cash flow Statement Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing, and financing activities of the company are segregated based on available information. 1.8 Fixed Assets & Depreciation i. Tangible assets are stated at cost of acquisition or construction less accumulated depreciation. All significant costs relating to the acquisition and installation of Tangible assets are capitalized. Subsequent expenditures related to an item of Fixed Asset are added to its book value only if they increase the future benefits from the existing assets beyond its previously assessed standard of performance. Depreciation based on the estimated useful life of each asset as determined by the management and are in line with the useful lives specified by Schedule II to the Companies Act, 2013.Consequent to this, where the Company has changed the estimate of useful life, the carrying amount of the asset as on April 1, 2015 is depreciated over the remaining useful life of the asset. Further where remaining useful life of an asset as on April 1, 2015 was Nil, the carrying amount of the asset after retaining the residual value has been recognized in the opening balance of retained earnings. Pursuant to Companies Act, 2013 (''the Act'') being effective from 1 April 2014, the Company has aligned the depreciation rates based on the useful lives as specified in Part ''C'' of Schedule II to the Act, except for the following assets, which are being depreciated based on the managements estimate of the useful life of tangible fixed assets. In the case of buildings useful lives are lower than the lives as per Schedule II of the Act: For plant and machinery involved in the production lines, based on internal technical evaluation, the management believes useful lives as given above best represent the period over which company expects to use these assets. In accordance with transitional provision relating to depreciation as per Schedule II of the Companies Act, 2013 as mentioned above, the carrying amount of assets is not recognizable on one to one basis and considering the asset holding of the company the impact of the same is immaterial for year ended March 31, 2016 hence not recognized in the opening balance of retained earnings. ii. Intangible assets are recorded at the consideration paid for acquisition. Intangible assets are amortized over their respective useful lives ranging between three years to seven years. iii. Loss arising from the retirement of, and gains and losses arising from disposal of fixed assets which are carried at cost are recognized in the Statement of Profit and Loss. iv. Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their net book value and net realizable value and are classified under other current assets in financial statements. Any expected loss is recognized immediately in the Statement of Profit and Loss. 1.9 Revenue Recognition Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include Excise duty but exclude Sales Tax and Value Added Tax. Other operating revenues include income from sale of scrap and receipt from government by way of Duty Draw Back and Export Incentive, which is recognized on receipt basis. 1.10 Other Income Interest Income are accounted on accrual basis. 1.11 Foreign Currency Transactions and Translations Transactions in foreign currencies entered into by the company and its integral foreign operations are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction. Foreign currency monetary items of the companyand its net investment in non integral foreign operations outstanding at the Balance Sheet are restated at the year-end rates. Exchange differences arising on settlement / restatement of monetary assets and liabilities of the company are recognized as income or expense in the Statement of Profit or Loss under the head Finance Charges. 1.12 Government Grants, Subsidies and Export incentives Government Grants and subsidies are recognized when there is reasonable assurance that the company will comply with the conditions attached to them and the grants / subsidy will be received. Export benefits are accounted on receipt basis only. Advance License The Company had obtained 12 advance licenses for duty free import of Raw Materials. Company has met the export obligation in full against 4 licenses . In respect of the other 8 Licenses export obligation has been partially met to the extent of $ 1,894,976 and the remaining obligation is $4,823,304 which is to be full filled by February 2017 .The liability to the company as on 31.03.2016, being customs duty availed, on this account is Rs.1,49,730,182 and applicable penalties. 1.13 Employee Benefits Employee benefits include Provident fund, Superannuation fund, Gratuity fund, Medical facilities, ESI and Leave encashment facility. Defined Contributions Plans The Company has Defined Contribution Plans for Post-employment benefits in the form of Superannuation Fund for management employees and Provident Fund for non-management employees which is administered by Life Insurance Corporation / Regional Provident Fund Commissioner. In case of Superannuation Fund for management employees and Provident Fund for non-management employees, the Company has no further obligation beyond making the contributions. The Company''s contribution to superannuation fund is considered as defined contribution plans and is charged as an expense as they fall due based on the amount of contribution required to be made. Defined Benefit Plans Funded Plan: The Company has defined benefit plans for Post-employment benefits in the form of Gratuity for all employees, pension for management employees and Provident Fund for management employees which are administered through Company managed Trust / Life Insurance Corporation (LIC). Liability for above defined benefit plans is provided on the basis of valuation, as at the Balance Sheet date, carried out by independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit method. Actuarial gains & losses are recognized in the Statement of Profit & Loss in the period in which they occur. Contribution to Provident Fund is also a defined benefit plan. Both employee and the company make monthly contributions to provident fund plan at a specified rate. 1.14 Segment Reporting The Company has identified business segments as its primary segment and geographic segments as its secondary segment. The company has only one primary segment namely Manufacture and sale of Heat Resistant Latex Rubber Thread. Hence segment reporting for primary segment is not applicable. Secondary Segment is on the basis of Geographical revenues, allocated based on the location of the customer. Geographic segments of the company are disclosed as follows: Revenue outside India, i.e., Sales in Export Market, and Revenue within India, i.e., Sales in Domestic Market. 1.15 Earnings per Share Basic earnings per share is computed by dividing the profit after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit after tax (including post tax effects of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered 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. Since the company doesn''t have any potential Equity shares, Dilute & Basic EPS are the same. 1.16 Taxes on Income Deferred tax assets and liabilities arising on account of timing difference and which are capable of reversal in subsequent periods, are recognized using tax rates and tax laws that have been enacted or substantively enacted as on Balance Sheet date. The company has worked out deferred tax asset as at 31st March, 2016. Deferred tax asset has been recognized in the financial statements with the certainty that there will be sufficient future taxable income against which such deferred tax asset can be realized. 1.17 Income Tax Income Tax: Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing and applicable for the relevant assessment year. Deferred income taxes are recognized for the future tax consequences attributable to timing differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The effect on deferred tax assets and liabilities of a change in the tax rates is recognized using the tax rates and tax laws that have been enacted or substantively enacted on the balance sheet date. Deferred tax assets arising from unabsorbed depreciation or carry forward of losses under tax laws are recognized only to the extent that there is virtual certainty of realization supported by convincing evidence. Other deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty of realization. 1.18 Minimum Alternate Tax Minimum Alternate Tax (''MAT'') credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period. 1.19 Impairment of Asset The Company tests for impairments at the close of the accounting period if and only if there are indications that suggest a possible reduction in the recoverable value of an asset. If the recoverable value of an Asset, i.e. the net realizable value or the economic value in use of a cash generating unit, is lower than the carrying amount of the asset the difference is provided for as impairment. However, if subsequently the position reverses and the recoverable amount becomes higher than the then carrying value the provision to the extent of the then difference is reversed, but not higher than the amount provided for. 1.20 Provisions and Contingencies A provision is recognized when there is a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, and in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. A disclosure for a contingent liability is made where there is a possible obligation arising out of past event, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation arising out of past event where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. 1.21 Job work and joint Management of Agartala unit RIL has entered into a contract manufacturing facility with a unit at Agratala, India and the financial statements presented include the operating results and also the statement of tangible assets created by the company at its cost at the CM facility and the business assets and liabilities arising out of the contract manufacturing activities, as on 31st March 2016. The Company has provided Rs.118.24 lakhs against the demand of Rs.231.20 lakhs during the year. In the opinion of the management, the provision made above is considered appropriate for the disputed amounts mentioned above on the ground that there are reasonable chances of successful outcome of appeals filed by the company. Mar 31, 2014 1.1 Basis of accounting and preparation of Financial Statements The financial Statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The Financial statements have been prepared on accrual basis. The accounting policies adopted in the preparation of financial statements are consistent with those followed in the previous year. 1.2 Use of Estimates The preparation of financial Statements in conformity with Indian GAAP requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liability) and the reported income and expenses during the year. The estimates and assumptions used in the financial statements are based upon the Management''s evaluation of relevant facts and circumstances as on the date of financial statements. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between actual results and the estimates are recognized in the periods in which the results are known / materialize. Current - Non Current Classification All assets and liabilities are classified into current & non- current. Assets An asset is classified as current when it satisfies any of the following criteria: (a) It is expected to be realized in, or is intended for sale or consumption in, the entity''s normal operating cycle; (b) It is held primarily for the purpose of being traded; (c) It is expected to be realized within twelve months after balance sheet date; or (d) It is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after balance sheet date. All other assets are classified as non-current. Liabilities A liability is classified as current when it satisfies any of the following criteria: (a) It is expected to be settled in the entity''s normal operating cycle; (b) It is held primarily for the purpose of being traded; (c) It is due to be settled within twelve months after balance sheet date; or (d) The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. All other liabilities are classified as non-current. Operating Cycle Operating Cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. Based on this, the company has ascertained less than 12 months as its operating cycle and hence 12 months has been considered for the purpose of current - non-current classifications of assets and liabilities. 1.3 Inventories Raw Materials are valued at the lower of cost on FIFO basis and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost of inventory comprises of Cost of Purchase, Cost of Conversion and other costs incurred to bring them to their respective present location and condition including octroi and other levies, transit insurance and receiving charges. Finished goods include appropriate proportion of overheads and are valued at lower of the Cost or Net Realizable Value whichever is less. 1.4 Current Assets Company had advanced Inter Corporate loans to companies for a particular period at a specific rate of interest against security. The amount yet to receive is shown as Inter Corporate Deposits in the Balance Sheet. Interest received from above is recognized in the Statement of Profit and Loss. 1.5 Cash and Cash Equivalents (for purposes of Cash Flow Statement) Cash comprises cash on hand and demand deposits with banks. Cash equivalents are term deposits with various banks with an original maturity of less than 90 days. 1.6 Cash flow Statement Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing, and financing activities of the company are segregated based on available information. 1.7 Fixed Assets and Intangible Asset Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost includes purchase consideration, all incidental expenses and transportation cost till commencement of commercial production and other directly attributable costs incurred to bring an Asset to its working condition for its intended use. Subsequent expenditure relating to Fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset. Intangible asset comprises of Computer Software (ERP) and it is carried at cost less amortization. 1.8 Depreciation and Amortization Depreciation is provided on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 on assets which have been installed and put to use during the year. Intangible asset, ie, capitalized Computer Software costs are amortized over a period of three years. 1.9 Revenue Recognition Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include Excise duty but exclude Sales Tax and Value Added Tax. Other operating revenues include income from sale of scrap and receipt from government by way of Duty Draw Back and Export Incentive, which is recognized on receipt basis. 1.10 Other Income Interest Income and Lease Rental Income are accounted on accrual basis. 1.11 Foreign Currency Transactions and Translations Transactions in foreign currencies entered into by the company and its integral foreign operations are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction. Foreign currency monetary items of the company and its net investment in non integral foreign operations outstanding at the Balance Sheet are restated at the year-end rates. Exchange differences arising on settlement / restatement of monetary assets and liabilities of the company are recognized as income or expense in the Statement of Profit or Loss under the head Finance Charges. 1.12 Government Grants, Subsidies and Export incentives GovernmentGrants and subsidies are recognized when there is reasonable assurance that the company will comply with the conditions attached to them and the grants / subsidy will be received. Export benefits are accounted on receipt basis only. Advance License The Company had obtained 5 advance licenses for duty free import of Raw Materials. Company has met export obligation in full for $403,169 against License No. 1402 dt. 16/08/2013. In respect of License No. 1475 dt. 22/08/2013 export obligation has been partially met to the extent of $320,791 and the remaining obligation is $203,637. Export obligation against License No. 6370 dt. 08/01/2014, No. 6996 dt. 19/02/2014 and No. 7276 dt. 11/03/2014 are still pending and has time up to June 2015, July 2015 and August 2015 respectively to fulfil the obligation. The Liability to the company as on 31/03/2014, being customs duty concession availed, on this account is Rs. 7,46,31,042 and applicable penalties. The documents for redemption are under process for License No. 1402 in respect of which export obligation has been met fully. EPCG Scheme The company availed benefit under EPCG Scheme and 3 Licenses were obtained with Nos. 2299 dt. 27/08/2012, 2377 dt. 18/01/2013 and 2501 dt. 23/08/2013 with a total export obligation of $446,520. Export obligation against License No. 2299 dt 27/08/2013 and License No. 2377 dt. 18/01/2013 has been fully met by the company. The obligation against third License (No. 2501 dt. 23/08/2013) is pending and has time upto the year 2020 to meet the obligation. The liability to the company as on 31/03/2014, being customs duty saved, on this account is Rs. 1,01,20,650/- and applicable penalities. 1.13 Employee Benefits Employee benefits include Provident fund, Superannuation fund, Gratuity fund, Medical facilities, ESI and Leave encashment facility. Defined Contributions Plans The Company''s contribution to superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made. Defined Benefit Plans For defined benefit plans in the form of gratuity fund the cost of providing benefits is determined using the Projected Unit Credit Method, with Actuarial valuations being carried out at each Balance Sheet date. Actuarial gains & losses are recognized in the Statement of Profit & Loss in the period in which they occur. Contribution to Provident Fund is also a defined benefit plan. Both employee and the company make monthly contributions to provident fund plan at a specified rate. 1.14 Segment Reporting The Company has identified business segments as its primary segment and geographic segments as its secondary segment. The company has only one primary segment namely Manufacture and sale of Heat Resistant Latex Rubber Thread. Hence segment reporting for primary segment is not applicable. Secondary Segment is on the basis of Geographical revenues, allocated based on the location of the customer. Geographic segments of the company are disclosed as follows: Revenue outside India, i.e., Sales in Export Market, and Revenue within India, i.e., Sales in Domestic Market. 1.15 Leases Lease arrangements where risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognized as Operating Leases. Lease rentals under operating leases are recognized in the Statement of Profit and Loss on a straight line basis. 1.16 Earnings per Share Basic earnings per share is computed by dividing the profit after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit after tax (including post tax effects of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered 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. Since the company doesn''t have any potential Equity shares, Dilute & Basic EPS are the same. 1.17 Taxes on Income In view of unabsorbed depreciation available for set off, the company does not envisage any tax liabilities under normal tax computation. However, the company is liable to pay "Minimum Alternate Tax (MAT)" on its book profits as computed under provisions of the Income Tax Act, 1961 which is recognized as a Current Tax in the Statement of Profit and Loss. The MAT Credit available to be carried forward for set off against normal tax liability under the provisions of the Income Tax Act, 1961 is recognized as an asset to the extent that there is a convincing evidence that the company will pay normal income tax during the specified period for which such MAT credit can be carried forward and set off in accordance with the recommendations contained in the Guidance Note issued by the Institute of Chartered Accountants of India. Such asset is created by way of a credit to the Statement of Profit and Loss account and is shown as MAT Credit Entitlement. Deferred tax assets and liabilities arising on account of timing difference and which are capable of reversal in subsequent periods, are recognized using tax rates and tax laws that have been enacted or substantively enacted as on Balance Sheet date. The company has worked out deferred tax asset as at 31st March, 2014. Deferred tax asset has been recognized in the financial statements with the certainty that there will be sufficient future taxable income against which such deferred tax asset can be realized. 1.18 Provisions and Contingencies A provision is recognized if, as a result of past event, a company has a present legal 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 the best estimate of the outflow of economic benefits required to settle the obligations at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or present obligation in respect of which the likelihood of outflow of resources is remote, no provisions or disclosure is made. Mar 31, 2013 1.1 Basis of accounting and preparation of Financial Statements The f financial Statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. Financial statements have been prepared on accrual basis. T he accounting policies adopted in the preparation of financial statements are consistent with those followed in the previous year. 1 .2 Use of Estimates The preparation of financial Statements in conformity with Indian GAAP requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liability) and the reported income and expenses during the year. The estimates and assumptions used in the financial statements are based upon the Management s evaluation of relevant facts and circumstances as on the date of financial statements. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between actual results and the estimates are recognized in the periods in which the results are known materialize. Current — Non Current Classification All assets and liabilities are classified into current & non" current. Assets An asset is classified as current when it satisfies any of the follow wing criteria (a) It is expected to be realized in, or is intended for sale or consu mption in, the entity s normal operating eye (b) It is held primarily for the purpose of being traded (c) It is expected to be realized within twelve months after balance sheet date) or (d) It is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after balance sheet date. All other assets are classified as noncurrent. Liabilities A liability is classified as current when it satisfies any of the fol lowing criteria (a) It is expected to be settled in, the entity''s normal operating cycle (b) It is held primarily for the purpose of being traded (c) It is due to be settled within twelve months after balance sheet date or (d) The cornpany does not have an unconditional right to defer settlement of the liability for at least 12nths after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruct ments do not affect its classification. All other liabilities are classified as noncurrent. Operating Cycle operating Cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. Based on this, the company has ascertained less than 12 months as its operating cycle and hence 12 months has been considered for the purpose of current — non "current classifications of assets and liabilities. 1.3 Inventories Raw Materia Is are valued at the lower of cost on FIFO basis and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost of inventory comprises of Cost of Purchase, Cost of Conversion and other costs incurred to bring them to their respective present location and condition including control and other levies, transit insurance and receiving charges. Finished goods include appropriate proportion of overheads and are valued at lower of the Cost or Net Realizable Value whichever is less. 1.4 Current Assets Company had advanced Inter Corporate loans to companies for a particular period at a specific rate of interest against security. The amount yet to receive is shown as Inter Corporate Deposits in the Balance Sheet. Interest received from above is recognized in the Statement of Profit and Loss. 1.5 Cash and Cash Equivalents (for purposes of Cash Flow Statement) Cash comprises cash on hand and demand deposits with banks. Cash equivalents are term deposits with various banks with an original maturity of less than 90 days. 1.6 Cash flow Statement Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of noncash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing, and financing activities of the company are segregated based on available information. 1.7 Fixed Assets and Intangible Asset Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost includes purchase consideration, all incidental expenses and transportation cost till commencement of commercial production and other directly attributable costs incurred to bring an Asset to its working condition for its intended use. Subsequent expenditure relating to Fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset. Intangible asset comprises of Computer Software (ERP) and it is carried at cost Less amortization. The costs of assets not ready for use as at the balance sheet date are disclosed under Capita Work" In" Progress. 1 .8 Depreciation and Amortization Depreciation is provided on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 on assets which have been installed and put to use during the year. Intangible asset, ie, capitalized Computer Software costs are amortized over a period of three years. 1.9 Revenue Recognition Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include Excise duty but exclude Sales Tax and Value Added Tax. Other operating revenues include income from sale of scrap and receipt from government by way of Duty Draw Back, which is recognized on receipt basis. 1.10 Other Income Interest Income and Lease Rental Income are accounted on accrual basis. 1.1 Foreign Currency Transactions and Translations Transactions in foreign currencies entered into by the company and its integral foreign operations are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction. Foreign currency monetary items of the company and its net investment in non integral foreign operations outstanding at the Balance Sheet are restated at the year'' end rates. Exchange differences arising on settlement/restatement of monetary assets and liabilities of the company are recognized as income or expense in the Statement of Profit or Loss under the head Finance Charges. 1.12 Government Grants, Subsidies and Export incentives Government Grants and subsidies are recognized when there is reasonable assurance that the company wi11 com ply with the conditions attached to them and the grants / subsidy will be received. The Company has availed benefit under EPCG scheme and there is an export obligation of $278,563/- to be completed by 2018. Export benefits are accounted on receipt basis only. 1.13 Employee Benefits Employees benefits include Provident fund, Superannuation fund, Gratuity fund, Medical facilities, ESI and Leave encashment facility. Defined Contributions Plans The Company''s contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fa11 due based on the amount of contribution required to be made. Defined Benefit Plans For defined benefit plans in the form of gratuity fund the cost of providing benefits is determined using the Projected Unit Credit Meth od, with Actuarial valuations being carried out at each Balance Sheet date. Actuarial gains & losses are recognized in the Statement of Profit & Loss in the period in which they occur. Contribution to Provident Fund is also a defined benefit plan. Both employee and the company make monthly contributions to provident fund plan at a specified rate. 1.14 Segment Reporting The Company has identified business segments as its primary segment and geographic segments as its secondary segment. The company has only one primary segment namely Manufacture and sale of Heat Resistant Latex Rubber Thread. Hence segment reporting for primary segment is not a applicable. Secondary Segment is on the basis of Geographical revenues, allocated based on the location of the customer. Geographic segments of the company are disclosed as follows! Revenue outside India, i.e., Sales in Export Market, and Revenue within India, i.e., Sales in Domestic Market. 1.15 Leases Lease arrangements where risks and rewards incidental to ownership of an asset substantially vest with the less or are recognized as Operating Leases. Lease rentals under operating leases are recognized in the Statement of Profit and Loss on a straight line basis. 1.16 Earnings per Share Basic earnings per share is computed by dividing the profit after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit after tax (including post tax effects of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered 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. Since the company doesn''t have any potential Equity shares, Dilute & Basic EPS are the same. 1.17 Taxes on Income In view of unabsorbed business loss and depreciation allowances available for set off, the company does not envisage any tax liabilities under normal tax computation. However, the company is liable to pay "Minimum Alternate Tax (MAT)" on its book profits as computed under provisions of the Income Tax Act, 1961 which is recognized as a Current Tax in the Statement of Profit and Loss. Tm„ MAT Credit available to be carried forward for set off against normal tax liability under the provisions of the Income Tax Act, 1961 is recognized as an asset to the extent that there is a convincing evidence that the company will pay normal income tax during the specified period for which such MAT credit can be carried forward and set off in accordance with the recommendations contained in the Guidance Note issued by the Institute of Chartered Accountants of India. Such asset is created by way of a credit to the Statement of Profit and Loss account and is shown as MAT Credit Entitlement. Deferred tax assets and liabilities arising on account of timing difference and which are capable of reversal in subsequent periods, are recognized using tax rates and tax laws that have been enacted or substantively enacted as on Balance Sheet date. The company has worked out deferred tax asset as at 31st March, 201 3. Deferred tax asset has been recognized in the financial statements with the certainty that there will be sufficient future taxable income against which such d deferred tax asset can be realized . 1.18 Provisions and Contingencies A provision is recognized if, as a result of past event, a company has a present legal 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 the best estimate of the outflow of economic benefits required to settle the obligations at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or present obligation in respect of which the likelihood of outflow of resources is remote, no provisions or disclosure is made. Mar 31, 2012 1.1 Basis of accounting and preparation of financial statements The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year. 1.2 Use of estimates The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize. Current - Non Current Classification All assets and liabilities are classified into current and non-current Assets An asset is classified as current when it satisfies any of the following criteria : a) it is expected to be realized in, or is intended for sale or consumption in, the entity's normal operating cycle; b) it is held primarily for the purpose of being traded; c) it is expected to be realized within twelve months after the balance sheet date; or d) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the balance sheet date. Current assets include the current portion of non- current financial assets. All other assets are classified as non-current. Liabilities A liability is classified as current when it satisfies any of the following criteria: a) it is expected to be settled in, the entity's normal operating cycle; b) it is held primarily for the purpose of being traded; c) it is due to be settled within twelve months after the balance sheet date; or d) The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current liabilities include current portion of non- current financial liabilities. All other liabilities are classified as non-current. Operating cycle Operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. Based on this, the Company has ascertained less than 12 months as its operating cycle and hence 12 months has been considered for the purpose of current - non-current classification of assets and liabilities. 1.3 Inventories Raw Materials are valued at the lower of cost on FIFO basis and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of consumption, including octopi and other levies, transit insurance and receiving charges. Finished goods include appropriate proportion of overheads and are valued at Lower of the Cost or Net Realizable Value whichever is less. 1.4 Current Assets Company had made Short term investments in shares of two companies, namely, UTV Software Communications and Carol Information Services. The Shares were surrendered during the financial year. Realizable value on sale of shares is shown as Asset as its realization falls due only after 31st March, 2012. Gain from sale of shares is shown in the statement of Profit & Loss as income. Company had advanced Inter Corporate loans to companies for a particular period at a specific rate of interest against security. The amount yet to receive is shown as Inter Corporate Deposits in the Balance sheet. Interest received from the above is recognized in the Statement of Profit and Loss. 1.5 Cash and cash equivalents (for purposes of Cash Flow Statement) Cash comprises cash on hand and demand deposits with banks. Cash equivalents are term deposits with various banks with an original maturity of less than 90 days. 1.6 Cash flow statement Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. 1.7 Fixed assets and Intangible Assets Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes all incidental expenses and transportation cost incurred up to that date for bringing the asset to its working condition for the intended use. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset. Intangible Asset comprise of Computer Software (ERP) and it is carried at cost less amortization. 1.8 Depreciation and amortization Depreciation has been provided on the straight- line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956 on assets which have been installed and put to use during the year. Intangible assets are amortized over their estimated useful life as follows : During the year Company had purchased an ERP Software and has been capitalized as Computer Software. Since it is an Intangible Asset, Company has decided to amortize the cost incurred for Software development over a period of 3 years. Hence depreciation has been provided on Straight Line Method at a rate of 33% in order to amortize the asset over 3 years. The estimated useful life of the intangible assets and the amortization period are reviewed at the end of each financial year and the amortization method is revised to reflect the changed pattern. 1.9 Revenue recognition Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax. Other operating revenues include income from sale of scrap and receipt from government by way of Duty Draw Back. 1.10 Other income Interest income and Lease Rental Income are accounted on accrual basis. Income from export entitlement benefits is accounted as and when the certainty of entitlement is determined. Other Income also includes gain from sale of fixed asset and sale of investments in shares. 1.11 Foreign currency transactions and translations Transactions in foreign currencies entered into by the Company and its integral foreign operations are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction. Foreign currency monetary items (other than derivative contracts) of the Company and its net investment in non-integral foreign operations outstanding at the Balance Sheet date are restated at the year-end rates. Exchange differences on settlement / restatement of monetary assets and liabilities of the Company are recognized as income or expense in the Statement of Profit and Loss. 1.12 Government grants, subsidies and export incentives Government grants and subsidies are recognized when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants / subsidy will be received. The Company had obtained 4 advance licenses for duty free import of raw material. Company has met the export obligation in full for Rs. 55,00,047/- against License No. 4088; Rs. 11,888,042 against License No. 4241. Necessary applications for redemption of these licenses have been made and are awaiting approval of JDGFT. Export obligations in respect of the Third License No. 4490 along with the fourth, with No. 4760 have also been fully met for Rs. 26,662,385. The Company is in the process of submitting documents for redemption of licenses with JDGFT. Export benefits are accounted on receipt basis only. 1.13 Employee benefits Employee benefits include provident fund, superannuation fund, gratuity fund, Medical facilities, ESI and Leave encashment facility. Defined contribution plans The Company's contribution superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made. Defined benefit plans For defined benefit plans in the form of gratuity fund the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Contribution to Provident Fund is also a defined benefit plan. Both employee and the company make monthly contributions to provident fund plan at the specified rate. 1.14 Segment reporting The Company has identified business segments as its primary segment and geographic segments as its secondary segment. The Company has only one primary segment namely Manufacture and sale of Heat Resistant Latex rubber Thread. Hence segment reporting for primary segment is not applicable. Secondary Segment is on the basis of Geographical revenues, allocated based on the location of the customer. Geographic segments of the Company are disclosed as follows. Revenue outside India, i.e., Sales in Export Market to Countries in Asia, Africa and Europe, and Revenue within India, i.e., Sales in Domestic Market. 1.15 Leases Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognized as operating leases. Lease rentals under operating leases are recognized in the Statement of Profit and Loss on a straight-line basis. 1.16 Earnings per share Basic earnings per share is computed by dividing the profit after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered 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. Since the company doesn't have any potential Equity shares, Dilute & Basic EPS are the same 1.17 Taxes on income In view of exemption from the purview of the provisions of Sec 115 JB of the Income Tax Act, 1961, being a Sick Industrial Company registered with BIFR, the entire book profit is exempt from tax and hence the company does not envisage any tax liability for the year. The Company has worked out deferred tax liabilities/assets as at 31st March 2012. In view of unclaimed allowances, unabsorbed depreciation and business losses under tax laws; net result of computation is net deferred tax assets. However, as a matter of prudence deferred tax assets has not been recognized. 1.18 Provisions and contingencies A provision is recognized if, as a result of past event, a Company has a present legal 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 the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or present obligation in respect of which the likelihood of outflow of resources is remote, no provisions or disclosure is made. Mar 31, 2010 1. Basis of Accounting The Company follows accrual method of - accounting. The Balance Sheet and Profit and Loss Account of the Company are in accordance with the Accounting Standards referred to in Sub-section (3C) of Section 211 of the Companies Act, 1956. 2. Income Recognition 2.1 Sales are recognized upon delivery of products at net of excise duty and sales tax.. 2.2 Incomes from export entitlement benefits are accounted as and when the certainty of entitlement is determined. 2.3 Other Income is recognized when no significant uncertainty as to its determination or realization exists. 3. Fixed Assets & Depreciation 3.1 Expenditure that are of capital nature are capitalized at a cost that comprises of purchase price (net of Cenvat, rebate and discounts), import duties, levies and any directly attributable cost of bringing the asset to its working condition for the intended use. 3.2 Depreciation has been provided on Straight Line Method in accordance with the provisions of Schedule XIV of the Companies Act, 1956, on assets which have been installed and put to use during the year. 3.3 An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. 4. Inventories 4.1 Raw Materials are valued at cost on FIFO basis, or net realizable value whichever is less. 4.2 Finished Goods are Valued at Lower of the Cost or net realizable value. 5. Exchange Fluctuation 5.1 Foreign Currency transactions are accounted at the exchange rates prevailing at the date of the transaction. 5.2 Gains and Losses resulting from the settlement of Foreign Currency transaction and from the translation of monetary assets and liabilities denominated in Foreign Currencies at year end rate, are recognized in the Profit and Loss account. 6. Miscellaneous Expenditure Product Development expense are being written off equally over a period often years. 7. Retirement Benefits 7.1 Provident Fund remittances to the government are charged against revenue, each year on accrual basis. 7.2 Gratuity liability is determined on the basis of actuarial valuation obtained at the year end from the Life Insurance Corporation of India under the Group Gratuity Cash Accumulation Scheme 7.3 Leave encashment benefits are charged to Profit and Loss Account on the basis of actual estimation basis as at the year end. B. Notes on Accounts 1. Previous year figures have been regrouped and reclassified wherever necessary to make them comparable. 2. Figures have been rounded off to the nearest lacs. 3. Accounting for Taxes as Income a) In view of exemption from the preview of the provisions of Sec115 JB of the Income Tax Act, 1961, being a Sick Industrial Company registered with BIFR, the entire book profit is exempt from tax and hence the company does not envisage any tax liability for the year. b) The Company has worked out deferred tax liabilities/assets as at 31st March 2010. In view of unclaimed allowances, unabsorbed depreciation and business losses under tax laws, net result of computation is net deferred tax assets. However, as a matter of prudence deferred tax assets have been recognized only to the extent there is deferred tax liability. d) The Company has not created the deferred tax assets on unabsorbed business loss and balance of unabsorbed depreciation to the tune of Rs. 10.46 Crores. 5. In the opinion of Board of Directors, Current Assets, Loans and Advances, have at least the value as stated in the Balance Sheet, if realized in the ordinary course of the business. 6. Debtors, Creditors and Items included under other liabilities are subject to confirmation. 7. The Company have obtained 3 advance licenses for duty free import of raw material. Company have fully met the export obligation in full for Rs.55,00,047/- against Lie. No.4008 and Rs.11,888,042 against Lie No.4241. The Third License No.4490 have been utlised partially and export obi igation to the extend 86,88,391 has been completed. The liability to the company as on 31.03.10 on this is the customs duty concession availed to the extend of Rs. 13,80,740/- and applicable penalties. This has been subsequently fulfilled. The documents for redemption are in process for the first two licenses Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article IFSC Code Currency Select Bank Select State Select City Select Branch From INR - Indian Rupee USD - United States Dollar EUR - Euro GBP - British Pound Sterling AED - United Arab Emirates Dirham SAR - Saudi Riyal AUD - Australian Dollar OMR - Omani Rial MYR - Malaysian Ringgit CAD - Canadian Dollar CHF - Swiss Franc ZAR - South African Rand SGD - Singapore Dollar JPY - Japanese Yen BHD - Bahraini Dinar KWD - Kuwaiti Dinar QAR - Qatari Riyal BMD - Bermudian Dollar ARS - Argentine Peso AWG - Aruban Florin BAM - Bosnia and Herzegovina convertible mark BBD - Barbadian Dollar BDT - Bangladeshi Taka BGN - Bulgarian Lev BOB - Bolivian Boliviano BRL - Brazilian Real BSD - Bahamian Dollar BWP - Botswana Pula CLP - Chilean Peso CNY - Chinese Yuan COP - Colombian Peso CZK - Czech Koruna DKK - Danish Krone DOP - Dominican Peso EGP - Egyptian Pound FJD - Fijian Dollar GHS - Ghana Cedi GMD - Gambian Dalasi GTQ - Guatemalan Quetzal HKD - Hong Kong Dollar HRK - Croatian Kuna HUF - Hungarian Forint IDR - Indonesian Rupiah ILS - Israeli Sheqel IRR - Iranian Rial ISK - Icelandic Krona JMD - Jamaican Dollar JOD - Jordanian Dinar KES - Kenyan Shilling KHR - Cambodian Riel KRW - South Korean Won LAK - Lao Kip LBP - Lebanese Pound LKR - Sri Lankan Rupee MAD - Moroccan Dirham MDL - Moldovan Leu MGA - Malagasy Ariary MKD - Macedonian Denar MUR - Mauritian Rupee MVR - Maldivian Rufiyaa MXN - Mexican Peso NAD - Namibian Dollar NGN - Nigerian Naira NOK - Norwegian Krone NPR - Nepalese Rupee NZD - New Zealand Dollar PAB - Panamanian Balboa PEN - Peruvian Sol PHP - Philippine Peso PKR - Pakistani Rupee PLN - Polish Zloty PYG - Paraguayan Guaraní RON - Romanian Leu RSD - Serbian Dinar RUB - Russian Rouble SCR - Seychellois Rupee SEK - Swedish Krona SYP - Syrian Pound THB - Thai Baht TND - Tunisian Dinar TRY - Turkish Lira TTD - Trinidad and Tobago Dollar TWD - Taiwanese Dollar UAH - Ukraine Hryvnia UGX - Ugandan Shilling UYU - Uruguayan Peso VES - Venezuelan Bolívar VND - Vietnamese Dong XAF - Central African Franc XCD - East Caribbean Dollar XOF - West African Franc XPF - CFP Franc To INR - Indian Rupee USD - United States Dollar EUR - Euro GBP - British Pound Sterling AED - United Arab Emirates Dirham SAR - Saudi Riyal AUD - Australian Dollar OMR - Omani Rial MYR - Malaysian Ringgit CAD - Canadian Dollar CHF - Swiss Franc ZAR - South African Rand SGD - Singapore Dollar JPY - Japanese Yen BHD - Bahraini Dinar KWD - Kuwaiti Dinar QAR - Qatari Riyal BMD - Bermudian Dollar ARS - Argentine Peso AWG - Aruban Florin BAM - Bosnia and Herzegovina convertible mark BBD - Barbadian Dollar BDT - Bangladeshi Taka BGN - Bulgarian Lev BOB - Bolivian Boliviano BRL - Brazilian Real BSD - Bahamian Dollar BWP - Botswana Pula CLP - Chilean Peso CNY - Chinese Yuan COP - Colombian Peso CZK - Czech Koruna DKK - Danish Krone DOP - Dominican Peso EGP - Egyptian Pound FJD - Fijian Dollar GHS - Ghana Cedi GMD - Gambian Dalasi GTQ - Guatemalan Quetzal HKD - Hong Kong Dollar HRK - Croatian Kuna HUF - Hungarian Forint IDR - Indonesian Rupiah ILS - Israeli Sheqel IRR - Iranian Rial ISK - Icelandic Krona JMD - Jamaican Dollar JOD - Jordanian Dinar KES - Kenyan Shilling KHR - Cambodian Riel KRW - South Korean Won LAK - Lao Kip LBP - Lebanese Pound LKR - Sri Lankan Rupee MAD - Moroccan Dirham MDL - Moldovan Leu MGA - Malagasy Ariary MKD - Macedonian Denar MUR - Mauritian Rupee MVR - Maldivian Rufiyaa MXN - Mexican Peso NAD - Namibian Dollar NGN - Nigerian Naira NOK - Norwegian Krone NPR - Nepalese Rupee NZD - New Zealand Dollar PAB - Panamanian Balboa PEN - Peruvian Sol PHP - Philippine Peso PKR - Pakistani Rupee PLN - Polish Zloty PYG - Paraguayan Guaraní RON - Romanian Leu RSD - Serbian Dinar RUB - Russian Rouble SCR - Seychellois Rupee SEK - Swedish Krona SYP - Syrian Pound THB - Thai Baht TND - Tunisian Dinar TRY - Turkish Lira TTD - Trinidad and Tobago Dollar TWD - Taiwanese Dollar UAH - Ukraine Hryvnia UGX - Ugandan Shilling UYU - Uruguayan Peso VES - Venezuelan Bolívar VND - Vietnamese Dong XAF - Central African Franc XCD - East Caribbean Dollar XOF - West African Franc XPF - CFP Franc 1 USD = 89.577 (USD to INR) 1 EUR = 104.886 (EUR to INR) 1 GBP = 119.845 (GBP to INR) More Period 7-14 Days 15-30 Days 31-45 Days 46-90 Days 4-6 Months 7-12 Months 1-2 Years 2-5 Years 5-10 Years >10 Years More Information on Rubfila International Ltd. Rubfila International Ltd. Tools Bulk Deals Block Deals Rubfila International Ltd. Company Details Company Profile Company History Management Team Capital Structure Product Mix Banker/Auditor/Registrar Company History BSE Price History NSE Price History Rubfila International Ltd. Key Financial Ratios Ratios Rubfila International Ltd. Results Quarterly Results Half Yearly Results Nine Months Results Annual Results Rubfila International Ltd. Financial Data Audited Results Cash Flow Balance Sheet Rubfila International Ltd. Reports Accounting Policies Auditors Report Directors Report Notes To Account Rubfila International Ltd. 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