Accounting Policies of Shivansh Finserve Ltd. Company

Mar 31, 2024

2. Summary of basis of compliance, basis of preparation and presentation, critical
accounting estimates, assumptions and judgments and material accounting policies

2.1 Basis of Preparation of Standalone Financial Statements

The principal accounting polices applied in the preparation of these Standalone Financial
Statements are set out below. These policies have been consistently applied to all the
years presented.

(i) Compliance with Ind-AS

These Standalone Financial Statements have been prepared in accordance with the
Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified by
Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013
(''Act'') read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015
as amended and other relevant provisions of the Act.

(ii) Basis of Preparation and presentation

The Standalone Financial Statements have been prepared and presented on the
going concern basis and at historical cost basis considering the applicable provisions
of Companies Act 2013, except for the following items that have been measured at
fair value as required by relevant IND AS.

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.

a) Certain financial assets/liabilities measured at fair value (refer accounting
policy regarding financial instruments) and

b) Any other item as specifically stated in the accounting policy.

(iii) Functional and Presentation Currency

The Standalone Financial Statements are presented in Indian Rupees, which is the
functional currency of the Company and the currency of the primary economic
environment in which the Company operates.

(iv) Classification of Assets and Liabilities as Current and Non-Current

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

(iv) Rounding off amounts

The Standalone Financial Statements are presented in INR and all values are
rounded to the nearest Lakhs (INR 1,00,000) as per the requirement of Schedule III,
unless otherwise stated.

2.2 Critical accounting estimates, assumptions and judgements

The preparation of Standalone Financial Statements requires management to make
judgments, estimates and assumptions in the application of accounting policies that affect
the reported amounts of assets, liabilities, income and expenses. Actual results may differ
from these estimates. Continuous evaluation is done on the estimation and judgments
based on historical experience and other factors, including expectations of future events
that are believed to be reasonable.

Estimates and judgements are continually evaluated. They are based on historical
experience and other factors, including expectations of future events that may have a
financial impact on the Company and that are believed to be reasonable under the
circumstances.

2.2.1 Useful lives of property, plant and equipment

a. Useful lives and residual values of Property, plant and equipment represent a
material portion of the Company''s asset base. The periodic charge of depreciation
is derived after estimating useful life of an asset and expected residual value at the
end of its useful life. The useful lives and residual values of assets are estimated by
the management at the time the asset is acquired and reviewed periodically,
including at each financial year end. The lives are based on various external and
internal factors including historical experience, relative efficiency and operating
costs and change in technology.

b. Provision for income tax and valuation of deferred tax assets

The Company''s tax jurisdiction is India. Significant judgments are involved in
determining the provision for income taxes including amounts to be recovered or
paid for uncertain tax positions. Management judgment is required to determine
the amount of deferred tax assets that can be recognised, based upon the likely
timing and the level of future taxable profits.

c. Employee benefit obligations

Defined benefit obligations are measured at fair value for financial reporting
purposes. Fair value determined by actuary is based on actuarial assumptions.
Management judgement is required to determine such actuarial assumptions. Such
assumptions are reviewed annually using the best information available with the
Management.

d. Provisions and contingent liabilities

In the normal course of business, contingent liabilities may arise from litigation and
other claims against the Company. Potential liabilities that are possible but not
probable of crystalizing or are very difficult to quantify reliably are treated as
contingent liabilities. Such liabilities are disclosed in the notes but are not
recognised.

e. Fair value measurement

In measuring the fair value of certain assets and liabilities for financial reporting
purpose, the Company uses market observable data to the extent available. Where
such Level 1 inputs are not available, the Company establish appropriate valuation
techniques and inputs to the model. The inputs to these models are taken from
observable markets where possible, but where this is not feasible, a degree of
judgment is required in establishing fair values. Judgments include considerations
of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions
about these factors could affect the reported fair value of financial instruments.

2.3 Property, Plant and Equipment (PPE)

These tangible assets are held for use in production, supply of goods or services or for
administrative purposes. 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, Net of GST input credit wherever
applicable, cost of replacing the component parts, borrowing costs and other directly
attributable cost of bringing the asset to its working condition in the manner intended by
the management.

If significant parts of an item of PPE have different useful lives, then they are accounted for
as separate items (major components) of PPE.

The cost of an item of PPE is recognised as an asset if, and only if, it is probable that the
economic benefits associated with the item will flow to the Company in future periods and
the cost of the item can be measured reliably. Expenditure incurred after the PPE have
been put into operations, such as repairs and maintenance expenses are charged to the
Statement of Profit and Loss during the period in which they are incurred.

De-recognised upon disposal

An item of PPE is derecognized 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 recognized in Statement of Profit and
Loss when asset is derecognized.

Depreciation

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 recognized 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 of an asset ceases at the earlier of the
date that the asset is classified as held for sale in accordance with IND AS 105 and the date
that the asset is derecognized.

The Company depreciates its property, plant and equipment (PPE) over the useful life in
the manner prescribed in Schedule II to the Act. Management believes that useful life of
assets are same as those prescribed in Schedule II to the Act.

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

2.4 Intangible assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less
accumulated amortization and accumulated impairment losses, if any. Amortization is
recognized on a straight-line basis over their estimated useful lives. The estimated useful
life and amortization method are reviewed at the end of each reporting period, with the
effect of any changes in estimate being accounted for on a prospective basis.

2.5 Leases

At the inception of a lease, the lease arrangements is classified as either a finance lease or
an operating lease, based on the substance of the lease arrangement..

As a Lessee:

Leases of property, plant and equipment where the Company, as lessee, has substantially
all the risks and rewards of ownership are classified as finance leases. Finance leases are
capitalized at the lease''s inception at the fair value of the leased property or, if lower, the
present value of minimum lease payments. The corresponding rental obligations, net of
finance charges, are included in borrowing or other financial liabilities as appropriate.

Each lease payment is allocated between the liability and finance cost. The finance cost is
charged to profit or loss over the lease period so as to produce a constant periodic rate of
interest on the remaining balance of the liability for each period.

Leases in which a significant portion of the risks and rewards of ownership are not
transferred to the Company as lessee are classified as operating leases. Payments made
under operating leases (net of any incentives received from lessor) are charged to profit or
loss on straight-line basis over the period of the lease unless the payments are structured
to increase in line with expected general inflation to compensate for the lessor''s expected
inflationary cost increases.

The Company recognizes a right-of-use asset and a lease liability at the lease
commencement date except for leases with a term of twelve months or less (short-term
leases) and low value leases. For these short-term and low value leases, the lease are
recognized payments associated with these leases as an expense in the Statement of Profit
and Loss on a straight-line basis over the lease term.

Lease term is a non-cancellable period together with periods covered by an option to
extend the lease if the Company is reasonably certain to exercise that option; and periods
covered by an option to terminate the lease if the Company is reasonably certain not to
exercise that option.

The right-of-use asset is initially measured at cost, which comprises the initial amount of
the lease liability adjusted for any lease payments made at or before the commencement
date, plus any initial direct costs incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the underlying asset or the site on which it is
located, less any lease incentives received. The right-of-use asset is subsequently
amortised using the straight-line method from the commencement date to the end of the
lease term, unless the lease transfers ownership of the underlying asset to the Company by
the end of the lease term or the cost of the right of-use asset reflects that the Company
will exercise a purchase option. In that case the right-of-use asset will be amortised over
the useful life of the underlying asset. In addition, the right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for certain remeasurements of the
lease liability.

The lease liability is initially measured at the present value of the lease payments to be
paid over the lease term at the commencement date, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined, the Company''s
incremental borrowing rate. Generally, the Company uses its incremental borrowing rate
as the discount rate. Subsequently, the lease liability is measured at amortised cost using
the effective interest method

As a Lessor:

Lease income from operating leases where the Company is a lessor is recognised in other
income on straight-line basis over the lease term unless the receipts are structured to
increase in line with expected general inflation to compensate for the expected inflationary
cost increases. The respective leased assets are included in the balance sheet based on
their nature.

2.6 Borrowing Cost

Borrowing cost includes interest expense, amortization of discounts, ancillary costs
incurred in connection with borrowing of funds and exchange difference, arising from
foreign currency borrowings, to the extent they are regarded as an adjustment to the
interest cost.

Borrowing costs that are attributable to the acquisition or construction or production of a
qualifying asset are capitalized as part of the cost of such asset till such time the asset is
ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial
period of time to get ready for its intended use. All other borrowing costs are recognised as
an expense in the period in which they are incurred.

Investment income earned on the temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalization. All other borrowing cost are recognised in the Statement of Profit and Loss
in the period in which they are incurred.

2.7 Impairment of Assets

At the end of each reporting period, the Company reviews the carrying amounts of its PPE
and other intangible assets to determine whether there is any indication that these assets
have suffered an impairment loss. If any such indication exists, the recoverable amount of
the asset is estimated in order to determine the extent of the impairment loss. Where it is
not possible to estimate the recoverable amount of an individual asset, the Company
estimates the recoverable amount of the cash-generating unit (CGU) to which the asset
belongs. When the carrying amount of an asset or CGU exceeds its recoverable amount,
the asset is considered impaired and is written down to its recoverable amount. The
resulting impairment loss is recognised in the Statement of Profit and Loss Recoverable
amount is the higher of fair value less costs to sell and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset.

In determining fair value less costs of disposal, recent market transactions are taken into
account. If no such transactions can be identified, an appropriate valuation model is used.

Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU
is increased to the revised estimate of its recoverable amount, but so that the increased
carrying amount does not exceed the carrying amount that would have been determined
had no impairment loss been recognised for the asset or CGU in prior years. A reversal of
an impairment loss is recognised in the Statement of Profit and Loss.

2.8 Government Grants

Government grants are recognized when there is reasonable assurance that the Company
will comply with the conditions attached to them and that the grants will be received.
When the grant relates to an expense item, it is recognised in the Statement of Profit and
Loss by way of a deduction to the related expense on a systematic basis over the periods
that the related costs, for which it is intended to compensate, are expensed. When the
grant relates to an asset, it is recognized as income on a systematic basis over the expected
useful life of the related asset.

2.9 Taxes

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

a) Current Tax

Current tax includes provision for Income Tax computed under Special provision
(i.e., Minimum alternate tax) or normal provision of Income Tax Act. Tax on Income
for the current period is determined on the basis on estimated taxable income and
tax credits computed in accordance with the provisions of the relevant tax laws and
based on the expected outcome of assessments/appeals.

b) Deferred Tax

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

Deferred tax assets are generally recognised for all deductible temporary
differences, unabsorbed losses and unabsorbed depreciation to the extent that it is
probable that future taxable profits will be available against which those deductible
temporary differences, unabsorbed losses and unabsorbed depreciation can be
utilized.

The carrying amount of deferred tax assets is reviewed at each balance sheet date
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.

Deferred tax assets and liabilities are measured at the tax rates that are expected to
apply in the period in which the liability is settled or the asset realized, based on tax
rates (and tax laws) that have been enacted or substantively enacted by the
balance sheet date. The measurement of deferred tax liabilities and assets reflects
the tax consequences that would follow from the manner in which the Company
expects, at the reporting date, to recover or settle the carrying amount of its assets
and liabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right
to set off current tax assets against current tax liabilities and when they relate to
income taxes levied by the same taxation authority and the Company intends to
settle its current tax assets and liabilities on a net basis.

2.10 Employees Benefits

a) Employee Benefits

All employee benefits payable wholly within twelve months of rendering services
are classified as short term employee benefits. Benefits such as salaries, wages,
short-term compensated absences, performance incentives etc., are recognized
during the period in which the employee renders related services and are measured
at undiscounted amount expected to be paid when the liabilities are settled.

b) Post-employment obligations

The Company have the following post-employment schemes:

(i) Defined benefit plans such as gratuity and;

(ii) Defined contribution plans such as provident fund.

(i) Defined benefit plans-Gratuity obligations

The liability or assets recognized in the balance sheet in respect of defined benefit
gratuity plans is the present value of the defined benefit obligations at the end of
the reporting period less the fair value of plan assets.

The defined benefit obligation is calculated annually by actuaries using the
projected unit credit method. The present value of the defined benefit obligation
denominated in INR is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on
government bonds that have terms approximating to the terms of the related
obligation. The benefits which are denominated in currency other than INR, the
cash flows are discounted using market yields determined by reference to high
quality corporate bonds that are denominated in the currency in which the benefits
will be paid, and that have terms approximating to the terms of the related
obligation.

The net interest cost is calculated by applying the discount rate to the net balance
of the defined benefit obligation and the fair value of plan assets. This cost is
included in employee benefit expense in the statement of profit and loss.

Re-measurement gains and losses arising from experience adjustments and change
in actuarial assumptions are recognized in the period in which they occur, directly
in other comprehensive income. They are included in retained earnings in the
statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan
amendments or curtailments are recognized immediately in profit or loss as past
service cost.

(ii) Defined contribution plans

The Company pays provident fund contributions to publicly administered funds as
per local regulations when liability to pay arise . The Company has no further
payment obligations once the contributions have been paid. The contributions are
accounted for as defined contribution plans and the contributions are recognized as
employee benefit expense when they are due.

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Mar 31, 2015

1. Basis of Preparation of Financial Statements:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India, to comply with the applicable mandatory Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules,2014 and the relevant provisions of the Companies Act, 2013. The accounting policies adopted in the preparation of financial statements are consistent with those followed in the previous year, except wherever specified.

2. Going Concern :

The financial statements are prepared on a going concern basis. The management of the Company believes that, the Company will continue to operate as a going concern and will be in a position to meet all its liabilities as they fall due for payment.

3. Use of Estimates:

In preparing the Company's financial statements in conformity with the accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

4. Fixed Assets:

Fixed Assets is stated at cost of acquisition (net of CENVAT, wherever applicable) as reduced by accumulated depreciation. The cost of assets includes other direct/indirect and incidental cost incurred to bring them into their working condition.

When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss for the relevant financial year.

5. Depreciation:

In respect of fixed assets acquired during the year, depreciation/ amortization is charged on a straight line basis so as to write off the cost of the assets over the useful lives as prescribed in Schedule II of the Companies Act, 2013 and for the assets acquired prior to April 1, 2014, the carrying amount as on April 1, 2014 is depreciated over the remaining useful life of the assets. Depreciation on grant portion of the assets is adjusted to the grant account.

6. Revenue Recognition:

Revenue is recognised when practically all risk and rights connected with ownership have been transferred to the buyer. This usually occurs upon dispatch, after the price has been determined and collection of the sales proceeds is reasonable certain.

i. Interest Income

Interest Income is recognized on accrual basis.

7. Earning Per Share:

Basic earnings per share is calculated by dividing net profit after tax for the year attributable to Equity Shareholders of the company by the weighted average number of Equity Shares issued during the year. Diluted earnings per share is calculated by dividing net profit attributable to equity Shareholders (after adjustment for diluted earnings) by average number of weighted equity shares outstanding during the year.

8. Provisions, Contingent Liabilities and Contingent Assets:

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

A disclosure for a contingent liability is made when there is a possible or present obligation that may, but probably will not require an outflow of resources.

Contingent Assets are neither recognized nor disclosed in the financial statements

9. Income Tax

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

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Mar 31, 2014

2.1. ACCOUNTING CONVENTION

The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis unless otherwise disclosed by way of note.

* These accounts have been prepared under the historical cost conventions, on accrual basis and on the accounting principles of a going concern.

* Accounting policies unless specifically stated to be otherwise are consistent and are in consonance with generally accepted a unting principles.

* The Accounting Standards and relevant guidelines notes issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

2.2. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation. Cost comprises of freight, duties, taxes, interest and other incidental expenses related to acquisition and installation.

2.3. INVESTMENTS

Long term investments are stated at cost less provision for diminution in value other than temporary if any.

2.4. INVENTORIES

Inventories are valued at lower of cost or net realizable value. Cost of inventories is computed on a FIFO basis. Finished Goods and Work in progress included raw material cost, Cost of conversion and other cost in bringing the inventories to their present location and condition.

2.5. DEPRECIATION AND AMMORTIZATION

Depreciation is charged under the straight line method in accordance with the rates and manner specified in Schedule XIV to the Companies Act, 1956.

2.6. IMPAIRMENT OF ASSETS

The carrying amount of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/ external factors. An impairment loss Is recognized wherever the carrying amount of asset exceeds its recoverable amount

2.7. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions Considered in the reported amount of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between actual results and the estimates as are recognized in the period in which the results are known/ materialized.

2.8.REEVENUE RECOGNITION

i. Revenue is recognized with the dispatch of goods to the customers adopting the mercantile system of accounting, li. Other miscellaneous revenue are recognized when amount and reliability is certain.

2.9.BORROWING COST

Borrowing cost relating to (i) funds borrowed for acquisition of qualifying fixed assets are capitalized till the date of commissioning and thereafter charged to Profit and loss A/c and (ii) funds borrowed for other purposes are charged to Profit and Loss A/c.

2.10-FQREIGN CURRENCY TRANSACTION

The company has opted for accounting the exchange differences arising on reporting of long term Foreign Currency monetary items in line with companies (Accounting standards ) Amendment rules 2009 relating to accounting standard 11 (AS-11) notified by Government Of India on 31st March, 2009.

2.11. RESEARCH AND DEVELOPMENT

Revenue expenditure charged to Profit and loss Account under respective heads of account and capital expenditure added to the cost of fixed assets in the year in which incurred.

2.12. GOVERNMENT GRANTS

Gr relating to Fixed Assets are shown as deduction from the gross value of fixed assets and those of the nature of Project Capital Subsidy Reserves and other Government Grants including export incentives are credited to Profit and loss account or deducted from the related expense.

2.13. EMPLOYEE BENEFITS

Company's contribution to Provident Fund are charged to Profit and Loss Account is accounted for on accrual basis. Gratuity under the payment of Gratuity Act is provided for on accrual basis.

2.14. TAXATION

Tax liability is estimated considering the provision of the Income Tax Act, 1961. Deferred Tax is recognized subjects to the consideration of Prudence, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

2.15. PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as result of past. events and it is probable that there will be an outflow of resources. Contingent liabilities, if any, are not recognized in the accounts but are disclosed by way of notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2013

1.1 Basis of Preparation of financial Statements

i. The financial statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles, applicable Accounting Standards as prescribed under the Companies (Accounting Standards) Rules, 2006 and provisions of the Companies Act, 1956 adopted consistently by the Company,

ii. The Company follows the mercantile systems of accounting and recognizes significant items of incomes and expenditure on accrual basis. Wherever it is not possible to determine the quantum of accrual with reasonable certainly, e.g. insurance & others claims, refund of customs duty, VAT and export incentives these continue to be accounted for on settlement basis.

1.2 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Managements to makes 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 Managements 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 as are recognized in the periods in which the results are known/materialize.

1.3 Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Cost comprises of fright, duties, taxes, interest and other incidental expenses related to acquisition and installation.

1.4 Depreciation/Amortization

Depreciation is changed under the Straight Line Method in accordance with the rates and manner specified in Schedule XIV to the Companies Act, 1956.

1.5 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there any indication of impairment based on internal/extemal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

1.6 Investment

Long term investments are started at cost less provision for diminution in value other than temporary, if any.

1.7 Inventories

Inventories are valued at lower of cost and net realizable value. Cost of inventories is computed on a FIFO basis Finished Goods and Work in progress included raw material cost. Cost of conversion and other cost in bringing the inventories to their present location and conditions.

1.8 Revenue Recognition

i. Revenue is recognized with the dispatch of goods to the customers adopting the mercantile system of accounting.

ii. Other Miscellaneous Revenue are recognized when amount and reliability is certain.

1.9 Borrowing Cost

Borrowing cost relating to (i) funds borrowed for acquisition of qualifying fixed assets are capitalized till the date of commissioning and thereafter charged to Profit and Loss Account and (ii) funds borrowed for other purposes are charged to profit and loss Account.

1.10 Foreign Currency Transactions

The Company has opted for accounting the exchange differences arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules 2009 relating to accounting Standard 11 (AS-11) notified by Government of India on 31st March, 2009.

1.11 Research & Development

Revenue expenditure charged to Profit and Loss Account under respective heads of account and capital expenditure added to the cost of fixed Assets in the year in which it is incurred.

1.12 Governments Grants

Grants relating to Fixed Assets arc shown as deduction from the gross value of the Fixed Assets and those of the nature of project Capital Subsidy are credited to Capital Subsidy Reserves & others Governments grants including export incentives are credited to Profit & Loss Account or deducted from the related expenses.

1.13 Employee Benefits

Company's Contribution to Provident Fund are charged to Profit & Loss Account is accounted for on accrual basis. Gratuity under the payment of Gratuity Act is provided for on actuarial basis,

1.14 Taxation

Tax liability is estimated considering the provision of the Income Tax Act, 1961. Deferred Tax is recognized subjects to the consideration of prudence, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.15 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as result of past events and it is probable that there will be an outflow of resources. Contingent liabilities, if any, are not recognized in the accounts but are disclosed by way of notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2012

1.1 Basis of Preparation of financial Statements

i. The financial statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles, applicable Accounting Standards as prescribed under the Companies (Accounting Standards) Rules, 2006 and provisions of the Companies Act, 1956 adopted consistently by the Company.

ii. The Company follows the mercantile systems of accounting and recognizes significant items of incomes and expenditure on accrual basis. Wherever it is not possible to determine the quantum of accrual with reasonable certainly, e.g, insurance & others claims, refund of customs duty. VAT and export incentives these continue to be accounted for on settlement basis.

1.2 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Managements to makes 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 Managements believes that the estimates used in preparation of the financial statements arc prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates as are recognized in the periods in which the results are known/materialize.

1.3 Fixed Assets

Fixed Assets are staled at cost less accumulated depreciation. Cost comprises of fright, duties, taxes, interest and other incidental expenses related to acquisition and installation.

1.4 Depreciation/Amortization

Depreciation is changed under the Straight Line Method in accordance with the rates and manner specified in Schedule XIV to the Companies Act. 1956.

1.5 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there any indication of impairment based on internal/extemal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

1.6 Investment

Long term investments are started at cost less provision for diminution in value other than temporary, if any.

1.7 Inventories

Inventories are valued at lower of cost and net realizable value. Cost of inventories is computed on a FIFO basis Finished Goods and progress included raw material cost. Cost of conversion and other cost in bringing the inventories to their present location and conditions.

1.8 Revenue Recognition

i. Revenue is recognized with the dispatch of goods to the customers adopting the mercantile system of accounting.

ii. Other Miscellaneous Revenue are recognized when amount and realisability is certain.

1.9 Borrowing Cost

Borrowing cost relating to (i) funds borrowed for acquisition of qualifying fixed assets are capitalized till the date of commissioning and thereafter charged to Profit and Loss Account and (ii) funds borrowed for other purposes are charged to profit and loss Account.

1.10 Foreign Currency Transactions

The Company has opted for accounting the exchange differences arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules 2009 relating to accounting Standard 11 (AS-ll) notified by Government of India on 31st March, 2009.

1.11 Research & Development

Revenue expenditure charged to Profit and Loss Account under respective heads of account and capital expenditure added to the cost of fixed Assets in the year in which it is incurred.

1.12 Governments Grants

Grants relating to Fixed Assets are shown as deduction from the gross value of the Fixed Assets and those of the nature of project Capital Subsidy arc credited to Capital Subsidy Reserves & others Governments grants including export incentives are credited to Profit & Loss Account or deducted from the related expenses.

1.13 Employee Benefits

Company's Contribution to Provident Lund arc charged to Profit & Loss Account is accounted for on accrual basis. Gratuity under the payment of Gratuity Act is provided for on actuarial basis.

1.14 Taxation

Tax liability is estimated considering the provision of the Income Tax Act, 1961. Deferred Tax is recognized subjects to the consideration of prudence, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.15 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement arc recognized when there is present obligation as result of past events and it is probable that there will be an outflow of resources. Contingent liabilities, if any. are not recognized in the accounts but are disclosed by way of notes. Contingent assets arc neither recognized nor disclosed in the financial statements.

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Mar 31, 2011

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

a. The financial statements have been prepared under the historical cost convention,in accordance with the generally accepted acccounting principals and the provisions of the Companies Act,1956, as adopted consistenly by the company.

b. The Company follows mercantile system of accounting and recognines significant items of income and expenditure on accrual basis.

4. REVENUE RECOGNITION :

a. Revenue is recognised with the despatch of goods to the customers adopting the mercantile system of accounting.

b. Other Miscellaneuos Revenue are recognised when amount and realisa- bility is certain.

5. TAXES ON INCOME :

i. Provision for I-tax has to be made on the basis of provisions of I- Tax Act and MAT as per section 115JB.

ii. In accordance with the Accounting Standard AS-22 Accounting of Taxes on Income issued by the Institute of Chartered Accountants of India deferred tax liabilities & assets arising from timing difference are expected to crystallize in later years are recognized only there is virtual certainty of relaistion of profit.

6. PRELIMINARY EXPENSES :

Preliminary Expenses are amortised over a period of five years, in accordance with the provisions of Section 35D of Income Tax Act,1961.

7. INSURANCE CLAIM :

Insurnace Claim are accounted for on settlement basis.

8. EMPLOYEE RETIREMENT BENEFITS :

Company's contibution to provident fund are charged to profit & loss account.No provision for gratuity has been made in books and the same will dealt as and when paid.

9.INVESTMENT & SECURITY DEPOSITS :

a. Investments are valued at cost.

b. Income on investment are being accounted for on cash basis.