Accounting Policies of Shree Precoated Steels Ltd. Company

Mar 31, 2024

2. Material Accounting Policies & Key
Accounting Estimates & Judgement

2.1 Basis of preparation

The financial statements of the Company have
been prepared in accordance with the Indian
Accounting Standards as notified under section
133 of of The Companies Act, 2013 Read with
rule 3 of the Companies(Indian Accounting
Standards) Rules 2015 by Ministry of Corporate
Affairs (‘MCA'') as amended by the Companies
(Indian Accounting Standards) rules, 2016.

The financial statements have been prepared on
a historical cost basis, except for certain financial
instruments which are measured at fair values at
the end of each reporting period as explained in
Accounting Policies below.

The financial statements are presented in “Indian
Rupees” ('' in Lakhs, which is Company''s
functional currency and all values are rounded
to the nearest Lakhs, except when otherwise
indicated.

2.2 Current and Non Current Classification

An asset/liabilities is classified as current when it
satisfies any of the following criteria :

i. It is expected to be realized/ settled, or is
intended for sale or consumption, In the
companies normal operating cycle or

ii. It is held primarily for the purpose of being
traded or

iii. It is expected to be realized/ due to be
settled within 12 months after the reporting
date or

iv. It is cash or cash equivalent unless it is
restricted from being exchanged or used to
settle a liability for at least 12 months after
the reporting date or

v. The company does not have an unconditional
right to defer settlement of the liability for at
least 12 months after the reporting date.

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

2.3 Plant, Property and Equipment

Recognition and initial measurement

Property, plant and equipment are stated at
their cost of acquisition. The cost comprises
purchase price, borrowing cost if capitalization
criteria are met and directly attributable cost of
bringing the asset to its working condition for the
intended use. Any trade discount and rebates
are deducted in arriving at the purchase price.
Subsequent costs are included in the asset''s
carrying amount or recognized as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated with
the item will flow to the Company. All other
repair and maintenance costs are recognized
instatement of profit or loss as incurred.

Subsequent measurement (depreciation and
useful lives)

Property, plant and equipment are subsequently
measured at cost less accumulated depreciation
and impairment losses. Depreciation on
property, plant and equipment is provided on
a straight-line basis, computed on the basis
of useful lives (asset-out below) prescribed in
Schedule II to the Act:

The residual values, useful lives and method of
depreciation are reviewed at the end of each
financial year.

De-recognition

An item of property, plant and equipment and
any significant part initially recognized is de¬
recognized upon disposal or when no future
economic benefits are expected from its use
or disposal. Any gain or loss arising on de¬
recognition of the asset (calculated as the
difference between the net disposal proceeds
and the carrying amount of the asset) is
recognized in the statement of profit and loss,
when the asset is de-recognized.

2.4 Intangible Assets

Recognition and initial measurement

Intangible assets are stated at their cost of
acquisition. The cost comprises purchase price,
borrowing cost, if capitalization criteria are met
and directly attributable cost of bringing the
asset to its working condition for the intended
use.

Subsequent measurement (amortisation)

The cost of capitalized software is amortized
over a period of 6 years from the date of its
acquisition.

2.5 Borrowing cost

Borrowing costs directly attributable to the
acquisition and/or construction of a qualifying
asset are capitalized during the period of time
that is necessary to complete and prepare the
asset for its intended use or sale. A qualifying
asset is one that necessarily takes substantial
period of time to get ready for its intended use.
All other borrowing costs are charged to the
statement of profit and loss as incurred.

2.6 Investments

Investment in equity instruments of
subsidiaries, joint ventures and associates

Investment in equity instruments of subsidiaries,
joint ventures and associates are stated at cost
as per Ind AS 27 ‘Separate Financial Statements''

2.7 Inventories:

Direct expenditure relating to construction activity
is inventorised. Other expenditure (including
borrowing costs) during construction period
is inventorised to the extent the expenditure is
directly attributable cost of bringing the asset
to its working condition for its intended use.
Other expenditure (including borrowing costs)
incurred during the construction period which
is not directly attributable for bringing the asset
to its working condition for its intended use is
charged to the statement of profit and loss. Direct
and other expenditure is determined based on
specific identification to the construction and real
estate activity. Cost incurred/items purchased
specifically for projects are taken as consumed
as and when incurred/ received.

Work-in-progress - Contractual: Cost of
work yet to be certified/ billed, as it pertains to
contract costs that relate to future activity on
the contract, are recognized as contract work-
in-progress provided it is probable that they will
be recovered. Contractual work-in-progress is
valued at lower of cost and net realizable value.

Work-in-progress - Real estate projects
(including land inventory): Represents cost
incurred in respect of unsold area of the real
estate development projects or cost incurred
on projects where the revenue is yet to be
recognised. Real estate work-in-progress is
valued at lower of cost and net realisable value.

Finished goods - Flats: Valued at lower of cost
and net realisable value.

Building materials purchased, not identified with
any specific project are valued at lower of cost
and net realisable value. Cost is determined
based on a weighted average basis.

Land inventory: Valued at lower of cost and net
realisable value.

2.8 Revenue Recognition

Effective April 1,2018, the company has applied
Ind AS 115 which establishes a comprehensive
framework for determining whether, how much
and when revenue is to be recognised. Ind AS
115 replaces Ind AS 18 Revenue and Ind AS 11
Construction Contracts.

The company has adopted Ind AS 115 using
the cumulative effect method. The effect of
initially applying this standard is recognised at
the date of initial application (i.e. April 1, 2018).
The standard is applied retrospectively only to
contracts that are not completed as at the date
of initial application. The impact of adoption of
the standard on the financial statements of the
company is insignificant.

Revenue is recognised upon transfer of control
of promised inventory to customers in an
amount that reflects the consideration which
the company expects to receive in exchange.
Revenue is recognised over the period of time
when control is transferred to the customer on
satisfaction of performance obligation, based on
contracts with customers.

Revenue is measured based on the transaction
price, which is the consideration, adjusted for
discounts, price concessions, incentives,if any,
as specified in the contracts with the customers.
Revenue excludes taxes collected from
customers on behalf of the government.

i. Revenue from Real estate projects is
recognized when it is reasonably certain
that the ultimate collection will be made and
that there is buyers commitment to make
the complete payment.

Revenue from real estate under
development is recognized upon transfer of
all significant risks and rewards of ownership
of such real estate, as per the terms of the
contracts entered into with buyers, which
generally coincides with the firming of the
sales contracts/ agreement, except for
the contracts where the company still has
obligations to perform substantial acts even
after the transfer of all significant risks and

rewards. In such cases, the revenue is
recognized on percentage of completion
method, when the stage of completion of
each project reaches a reasonable level
of progress. The revenue is recognized in
proportion that the contract cost incurred
for work performed up to the reporting date
bear to the estimated total contract cost.

Revenue from real estate projects including
revenue from sale of undivided share of
land [group housing] is recognised upon
transfer of all significant risks and rewards
of ownership of such real estate/ property,
as per the terms of the contracts entered
into with buyers, which generally coincides
with the firming of the sales contracts/
agreements.

When the outcome of a real estate project
can be estimated reliably and the conditions
above are satisfied, project revenue
(including from sale of undivided share of
land) and project costs associated with the
real estate project should be recognised as
revenue and expenses by reference to the
stage of completion of the project activity at
the reporting date arrived at with reference
to the entire project costs incurred (including
land costs). Revenue is recognized on
execution of either an agreement or a letter
of allotment

ii. Interest Income

Interest income is recognized on a time
proportion basis taking into account the
amount outstanding and the applicable
interest rate. Interest income is included
under the head “other income” in the
statement of profit and loss.

iii. Dividend Income

Dividend income is recognized with the
company''s right to receive dividend is
established by the reporting date.

iv. Other Income

Other Income is accounted on accrual
basis.

2.9 Unbilled Revenue

Revenue recognized based on policy on
revenue, over and above the amount due as per
the payment plans agreed with the customers.

2.10 Cost of revenue

Cost of constructed properties includes
cost of land (including cost of development

rights/land under agreements to purchase),
estimated internal development costs,
external development charges, borrowing
costs, overheads, construction costs and
development/construction materials, which
is charged to the statement of profit and loss
based on the revenue recognized as explained
in accounting policy for revenue from real estate
projects above, in consonance with the concept
of matching costs and revenue. Final adjustment
is made on completion of the specific project.

2.11 Foreign Currency Transactions

Functional and Presentation Currency

The financial statements are presented in Indian
Rupees (Rs.) which is also the functional and
presentation currency of the Company.

Transactions and balances

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

Foreign currency monetary items outstanding
at the balance sheet date are converted to
functional currency using the closing rate.
Non-monetary items denominated in a foreign
currency which are carried at historical cost are
reported using the exchange rate at the date of
the transactions.

Exchange differences arising on monetary items
on settlement, or restatement as at reporting
date, at rates different from those at which they
were initially recorded, are recognized in the
statement of profit and loss in the year in which
they arise.

2.12 Employee Benefit Expenses
Provident Fund

The Company makes contribution to statutory
provident funding accordance with the
Employees'' Provident Funds and Miscellaneous
Provisions Act, 1952.

Gratuity

Gratuity is a post-employment benefit and is in
the nature of a defined benefit plan. The liability
recognized in the balance sheet in respect
of gratuity is the present value of the defined
benefit/obligation at the balance sheet date,
together with adjustments for unrecognized
actuarial gains or losses and past service costs.
The defined benefit/obligation is calculated at or
near the balance sheet date by an independent

actuary using the projected unit credit method.
This is based on standard rates of inflation, salary
growth rate and mortality. Discount factors are
determined close to each year-end by reference
to market yields on government bonds that have
terms to maturity approximating the terms of the
related liability. Service cost on the Company''s
defined benefit plan is included in employee
benefits expense. Net interest expense on the
net defined benefit liability is included in finance
costs. Actuarial gains/losses resulting from re¬
measurements of the liability are included in
other comprehensive income.

Other long-term employee benefits

Liability in respect of compensated absences
becoming due or expected to be availed
within one year from the balance sheet date is
recognized on the basis of discounted value
of estimated amount required to be paid or
estimated value of benefit expected to be
availed by the employees. Liability in respect
of compensated absences becoming due or
expected to be availed more than one year
after the balance sheet date is estimated on the
basis of an actuarial valuation performed by an
independent actuary using the projected unit
credit method.

Actuarial gains and losses arising from
past experience and changes in actuarial
assumptions are charged to statement of profit
and loss in the year in which such gains or
losses are determined.

Short-term employee benefits

Accumulated leave, which is expected to be
utilized within the next 12 months, is treated as
short - term employee benefit. The company
measures the expected cost of such absences
as the additional amount that is except to pay
as a result of the unused entitlement that has
accumulated at the reporting date.

2.13 Taxation

Tax expense recognized in statement of profit
and loss comprises the sum of deferred tax and
current tax except the ones recognized in other
comprehensive income or directly in equity.

Current tax is determined as the tax payable
in respect of taxable income for the year and
is computed in accordance with relevant
tax regulations. Current income tax relating
to items recognized outside profit or loss is
recognized outside profit or loss (either in other
comprehensive income or in equity).

Minimum alternate tax (‘MAT'') credit entitlement
is recognized as an asset only when and to the
extent there is convincing evidence that normal
income tax will be paid during the

Specified period. In the year in which MAT credit
becomes eligible to be recognized as an asset,
the said asset is created by way of a credit to
the statement of profit and loss and shown as
MAT credit entitlement. This is reviewed at each
balance sheet date and the carrying amount of
MAT credit entitlement is written down to the
extent it is not reasonably certain that normal
income tax will be paid during the specified
period.

Deferred tax is recognized in respect of
temporary differences between carrying amount
of assets and liabilities for financial reporting
purposes and corresponding amount used for

Taxation purposes. Deferred tax assets on
unrealised tax loss are recognized to the extent
that it is probable that the underlying tax loss
will be utilised against future taxable income.
This is assessed based on the Company''s
forecast of future operating results, adjusted
for significant on-taxable income and expenses
and specific limits on the use of any unused
tax loss. Unrecognized deferred tax assets are
re-assessed at each reporting date and are
recognized to the extent that it has become
probable that future taxable profits will allow the
deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at
the reporting date. Deferred tax relating to items
recognized outside statement of profit and loss
is recognized outside statement of profit or loss
(either in other comprehensive income or in
equity).

2.14 Impairment of non-financial assets

At each reporting date, the Company assesses
whether there is any indication based on
internal/external factors, that an asset may
be impaired. If any such indication exists, the
recoverable amount of the asset or the cash
generating unit is estimated. If such recoverable
amount of the asset or cash generating unit to
which the asset belongs is less than its carrying
amount. The carrying amount is reduced to its
recoverable amount and the reduction is treated
as an impairment loss and is recognized in the
statement of profit and loss. If, at the reporting

date, there is an indication that a previously
assessed impairment loss no longer exists,
the recoverable amount is reassessed and the
asset is reflected at the recoverable amount.
Impairment losses previously recognized are
accordingly reversed in the statement of profit
and loss.

2.15 Impairment of financial assets

In accordance with Ind AS 109, the Company
applies expected credit loss (ECL) model for
measurement and recognition of impairment
loss for financial assets.

ECL is the weighted-average of difference
between all contractual cash flows that are due
to the Company in accordance with the contract
and all the cash flows that the Company expects
to receive, discounted at the original effective
interest rate, with the respective risks of default
occurring as the weights. When estimating
the cash flows, the Company is required to
consider:-

All contractual terms of the financial assets
(including prepayment and extension) over the
expected life of the assets.

Cash flows from the sale of collateral held or
other credit enhancements that are integral to
the contractual terms.

2.16 Trade Receivables

In respect of trade receivables, the Company
applies the simplified approach of Ind AS 109,
which requires measurement of loss allowance
at an amount equal to lifetime expected credit
losses. Lifetime expected credit losses are
the expected credit losses that result from all
possible default events over the expected life of
a financial instrument.

2.17 Other financial assets

In respect of its other financial assets, the
Company assesses if the credit risk on those
financial assets has increased significantly
since initial recognition. If the credit risk has not
increased significantly since initial recognition,
the Company measures the loss allowance at
an amount equal to 12-monthexpected credit
losses, else at an amount equal to the lifetime
expected credit losses.

When making this assessment, the Company
uses the change in the risk of a default occurring
over the expected life of the financial asset. To
make that assessment, the Company compares
the risk of a default occurring on the financial
asset as at the balance sheet date with the risk

of a default occurring on the financial asset as
at the date of initial recognition and considers
reasonable and supportable information, that
is available without undue cost or effort, that is
indicative of significant increases in credit risk
since initial recognition. The Company assumes
that the credit risk on a financial asset has not
increased significantly since initial recognition
if the financial asset is determined to have low
credit risk at the balance sheet date.

2.18 Cash and Cash Equivalent

Cash and cash equivalents comprise cash in
hand, demand deposits and short-term highly
liquid investments that are readily convertible
into known amount of cash and which are
subject to an insignificant risk of changes in
value.

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Mar 31, 2015

1. Corporate Information

Shree Precoated Steels Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on one stock exchanges in India. The company engaged in the Manufacturing, Processing, Trading of Steel Products and Real Estate business.

a. Basis of Preparation

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards as prescribed under Section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rule 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention.

b. Use of Estimates

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

c. Current and Non Current Classification

An asset is classified as current when it satisfies any of the following criteria :

i. It is expected to be realized/ settled, or is intended for sale or consumption, in the companies normal operating cycle or

ii. It is held primarily for the purpose of being traded or

iii. It is expected to be realized/ due to be settled within 12 months after the reporting date or

iv. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date or

v. The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

All other assets and liabilities are classified as non current

d. Tangible Fixed Assets:

Fixed assets, are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price. Subsequent expenditure related to an item of fixed is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred. Gains or losses arising from de- recognition of fixed assets 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.

e. Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use. Gains or losses arising from de-recognition 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.

f. Depreciation and Amortization

The Company has provided for depreciation on straight line method over the useful life of assets as prescribed under Part C of Schedule II of Companies Act, 2013.

g. Impairment of Tangible and Intangible Assets

The company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash- generated units (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other asset or groups of assets. Where 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. 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 assessment of the time value of money and the risks specific to the asset. In determining net selling price, recent market transaction is taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.

h. Revenue Recognition

Revenue is recognized to the extent that is probable that the economic benefits will flow to the Company and the revenue can be reliable measured. The following specific recognition criteria must be met before revenue is recognized

Sale of Goods:

Revenue from sale of goods is recognized when all the risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. If the company collects sales taxes and value added taxes (VAT) on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence they are excluded from revenue. Excise duty deducted from revenue (gross) is the amount that is included in the revenue (gross) and not the entire amount of liability arising during the year.

Income from Services:

Revenues from maintenance contracts are recognized pro-rata over the period of the contract as and when the services are rendered.

i. Revenue from Real estate projects is recognized when it is reasonably certain that the ultimate collection will be made and that there is buyers commitment to make the complete payment.

Revenue from real estate under development is recognized upon transfer of all significant risks and rewards of ownership of such real estate, as per the terms of the contracts entered into with buyers, which generally coincides with the firming of the sales contracts/ agreement, except for the contracts where the company still has obligations to perform substantial acts even after the transfer of all significant risks and rewards. In such cases, the revenue is recognized on percentage of completion method, when the stage of completion of each project reaches a reasonable level of progress. The revenue is recognized in proportion that the contract cost incurred for work performed up to the reporting date bear to the estimated total contract cost.

ii. Interest Income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

iii. Dividend Income

Dividend income is recognized with the company's right to receive dividend is established by the reporting date.

iv. Other Income

Other Income is accounted on accrual basis.

i. Foreign currency transactions

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

Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured 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 measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

Exchange differences

i. Exchange difference arising on a monetary item that, in substance forms part of the company's net investment in a non- integral foreign operation is accumulated in the foreign currency translation reserve until the disposal of the net investment. On the disposal of such net investment, the cumulative amount of the exchange differences which have been deferred and which relates to that investment is recognized as income or as expenses in the same period in which the gain or loss on disposal is recognized.

ii. Exchange difference arising on long-term foreign currency monetary items related to acquisition of a fixed asset are capitalized and depreciated over the remaining useful life of the asset. For this purpose, the company treats a foreign monetary item as "long-term foreign currency monetary items", if it has a term of 12 months or more at the date of its origination.

iii. Exchange differences arising on other long-term foreign currency monetary items are accumulated in the "Foreign Currency Monetary Translation Difference Account' and amortized over the remaining life of the concerned monetary item.

iv. All other exchange differences are recognized as income or as expenses in the period in which they arise.

j. Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The contribution to the provident fund is charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund.

The company operates two defined benefit plans for its employee, viz., gratuity and post employment medical benefit liability. The costs of providing benefits under these plans are determined on the basis actuarial valuation at each year-end. Separate actuarial valuation is carried out for each plan using the projected unit credit method. Actuarial gains and losses for both defined plans are recognized in full in the period in which they occur in the statement of profit and loss.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short - term employee benefit. The company measures the expected cost of such absences as the additional amount that is except to pay as a result of the unused entitlement that has accumulated at the reporting date.

The company treats accumulated leave excepted to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/losses are immediately taken to the statement of profit and loss and are not deferred. The company presents the entire leave as a current liability in the balance sheet, since it does not have an unconditional right to defer its settlement for 12 months after the reporting date.

k. Income Taxes

Tax expenses comprise current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdiction where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred income tax relating to items recognized in equity and not in the statement of profit and loss.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situation where the company has unabsorbed or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

In the situation where the company is entitled to a tax holiday under the income-tax Act, 1961 enacted in India or tax laws prevailing in the respective tax jurisdiction where it operates, no deferred tax (asset or liability) is recognized in respect of timing differences which reverse during the tax holiday period, to the extent the company's gross total income is subject to the deduction during the tax holiday period. Deferred tax in respect of timing differences which after the tax holiday is recognized in the year in which the timing differences originate. However , the restrict recognition of deferred tax assets to the extent that it has become reasonable certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax can be realized. For recognition of deferred taxes, the timing difference which originates first is considered to reverse first.

At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognized unrecognized deferred asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes-down the carrying amount of deferred tax asset to the extent that is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such written-down is reserved to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

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

I. Earnings per share

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

m. Provisions

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

n. Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statement.

o. Cash and cash equivalents

Cash and cash an equivalent for the purposes of cash flow statement comprises cash at bank and in hand and short-term investments with an original maturity of three months or less.

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Mar 31, 2014

A Basis of Preparation

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956 read with the general circular 15/2013 dated September 13, 2013 of the ministry of corporate affairs in respect of section 133 of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention.

b. Use of Estimates

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

c. Current and Non Current Classification

An asset is classified as current when it satisfies any of the following criteria :

i. It is expected to be realized/ settled, or is intended for sale or consumption, in the companies normal operating cycle or

ii. It is held primarily for the purpose of being traded or

iii. It is expected to be realized/ due to be settled within 12 months after the reporting date or

iv. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date or

v. The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

All other assets and liabilities are classified as non current

d Tangible Fixed Assets:

Fixed assets, are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any .The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price. Subsequent expenditure related to an item of fixed is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred. Gains or losses arising from de recognition of fixed assets 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.

e. Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use. Gains or losses arising from de recognition 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.

f. Depreciation and Amortization

Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management, or those prescribed under the schedule XIV to the companies Act, 1956, whichever is higher.

Intangible assets are amortized on a straight line basis over the estimated useful economics life

g. Impairment of Tangible and Intangible Assets

The company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generated units (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other asset or groups of assets. Where 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. 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 assessment of the time value of money and the risks specific to the asset. In determining net selling price, recent market transaction is taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.

h Revenue Recognition

Revenue is recognized to the extent that is probable that the economic benefits will flow to the Company and the revenue can be reliable measured. The following specific recognition criteria must be met before revenue is recognized

Sale of Goods:

Revenue from sale of goods is recognized when all the risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. If the company collects sales taxes and value added taxes (VAT) on behalf of the government and , therefore ,these arenot economic benefits flowing to the company . Hence they are excluded from revenue . Exciseduty deducted from revenue (gross) is the amount that is included in the revenue (gross) andnot the entire amount of liability arising during the year.

Income from Services:

Revenues from maintenance contracts are recognized pro-rata over the period of the contract as and when the services are rendered.

i. Revenue from Real estate projects is recognized when it is reasonably certain that the ultimate collection will be made and that there is buyers commitment to make the complete payment.

Revenue from real estate under development is recognized upon transfer of all significant risks and rewards of ownership of such real estate, as per the terms of the contracts entered into with buyers, which generally coincides with the firming of the sales contracts/ agreement, except for the contracts where the company still has obligations to perform substantial acts even after the transfer of all significant risks and rewards. In such cases, the revenue is recognized on percentage of completion method, when the stage of completion of each project reaches a reasonable level of progress. The revenue is recognized in proportion that the contract cost incurred for work performed up to the reporting date bear to the estimated total contract cost.

ii. Interest Income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

iii.Dividend Income

Dividend income is recognized with the company''s right to receive dividend is established by the reporting date.

iv.Other Income

Other Income is accounted on accrual basis

i. Foreign currency transactions

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

Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured 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 measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

Exchange differences

i. Exchange difference arising on a monetary item that, in substance forms part of the company''s net investment in a non-integral foreign operation is accumulated in the foreign currency translation reserve until the disposal of the net investment. On the disposal of such net investment, the cumulative amount of the exchange differences which have been deferred and which relates to that investment is recognized as income or as expenses in the same period in which the gain or loss on disposal is recognized.

ii. Exchange difference arising on long-term foreign currency monetary items related to acquisition of a fixed asset are capitalized and depreciated over the remaining useful life of the asset. For this purpose, the company treats a foreign monetary item as "long-term foreign currency monetary items", if it has a term of 12 months or more at the date of its origination.

iii. Exchange differences arising on other long-term foreign currency monetary items are accumulated in the "Foreign Currency Monetary Translation Difference Account'' and amortized over the remaining life of the concerned monetary item.

iv. All other exchange differences are recognized as income or as expenses in the period in which they arise.

j. Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The contribution to the provident fund is charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund.

The company operates two defined benefit plans for its employee, viz., gratuity and post employment medical benefit liability. The costs of providing benefits under these plans are determined on the basis actuarial valuation at each year-end. Separate actuarial valuation is carried out for each plan using the projected unit credit method. Actuarial gains and losses for both defined plans are recognized in full in the period in which they occur in the statement of profit and loss.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short – term employee benefit. The company measures the expected cost of such absences as the additional amount that is except to pay as a result of the unused entitlement that has accumulated at the reporting date.

The company treats accumulated leave excepted to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/losses are immediately taken to the statement of profit and loss and are not deferred. The company presents the entire leave as a current liability in the balance sheet, since it does not have an unconditional right to defer its settlement for 12 months after the reporting date.

k. Income Taxes

Tax expenses comprise current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdiction where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted ay the reporting date. Deferred income tax relating to items recognized in equity and not in the statement of profit and loss.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situation where the company has unabsorbed or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

In the situation where the company is entitled to a tax holiday under the income-tax Act, 1961 enacted in India or tax laws prevailing in the respective tax jurisdiction where it operates, no deferred tax (asset or liability) is recognized in respect of timing differences which reverse during the tax holiday period, to the extent the company''s gross total income is subject to the deduction during the tax holiday period. Deferred tax in respect of timing differences which after the tax holiday is recognized in the year in which the timing differences originate. However , the restrict recognition of deferred tax assets to the extent that it has become reasonable certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax can be realized. For recognition of deferred taxes, the timing difference which originates first is considered to reverse first.

At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognized unrecognized deferred asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes- down the carrying amount of deferred tax asset to the extent that is no longer reasonably certain or virtually certain , as the case may be , that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such written- down is reserved to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

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

l. Earnings per share

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

m. Provisions

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

n. Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statement.

o. Cash and cash equivalents

Cash and cash an equivalent for the purposes of cash flow statement comprises cash at bank and in hand and short-term investments with an original maturity of three months or less.

b. Term/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2014, the amount of per share dividend recognised as distributions to equity shareholders was Rs. NIL (Previous year Rs. NIL).

c. Aggregate numbers of bonus shares issued, share issued for consideration other than cash and shares brought back during the period of five years immediately preceding the reporting date:

Equity shares allotted as fully paid bonus shares by

capitalisation of securities premium. Nil Nil

Equity shares allotted as fully paid-up pursuant to

contracts for considerations other than cash. Nil Nil

Equity shares bought back by the company Nil Nil

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Mar 31, 2012

A Change in Accounting Policy

Presentation and Disclosure of Financial Statements

During the year ended 31st March, 2012, the revised schedule VI notified under the Companies Act, 1956, has become applicable to the company, for preparation and presentation of its financial statements. Except accounting for dividend on investments in subsidiary companies, the adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation However it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous period figure in accordance with the requirements applicable in the current year.

b. Use of Estimates

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

c. Current and Non Current Classification

An asset is classified as current when it satisfies any of the following criteria:

i. It is expected to be realized/settled, or is intended for sale or consumption, in the companies normal operating cycle or

ii. It is held primarily for the purpose of being traded or

iii. It is expected to be realized/due to be settled within 12 months after the reporting date or

iv. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date or

v. The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.AII other assets and liabilities are classified as non current

d. Tangible Fixed Assets:

Fixed assets, are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price. Subsequent expenditure related to an item of fixed is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred. Gains or losses arising from de recognition of fixed assets 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.

e. Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use. Gains or losses arising from de recognition 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.

f. Depreciation and Amortization

Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management, or those prescribed under the schedule XIV to the companies Act 1956, whichever is higher.

Intangible assets are amortized on a straight line basis over the estimated useful economics life

g. Impairment of Tangible and Intangible Assets

The company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generated units (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other asset or groups of assets. Where 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. 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 assessment of the time value of money and the risks specific to the asset. In determining net selling price, recent market transaction is taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.

h. Revenue Recognition

Revenue is recognized to the extent that is probable that the economic benefits will flow to the Company and the revenue can be reliable measured. The following specific recognition criteria must be met before revenue is recognized

Sale of Goods:

Revenue from sale of goods is recognized when all the risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. If the company collects sales taxes and value added taxes (VAT) on behalf of the government and, therefore.these are not economic benefits flowing to the company. Hence they are excluded from revenue. Excise duty deducted from revenue (gross) is the amount that is included in the revenue (gross) and not the entire amount of liability arising during the year.

Income from Services:

Revenues from maintenance contracts are recognized pro-rata over the period of the contract as and when the services are rendered.

i. Revenue from Real estate projects is recognized when it is reasonably certain that the ultimate collection will be made and that there is buyers commitment to make the complete payment.

Revenue from real estate under development is recognized upon transfer of all significant risks and rewards of ownership of such real estate, as per the terms of the contracts entered into with buyers, which generally coincides with the firming of the sales contracts/agreement, except for the contracts where the company still has obligations to perform substantial acts even after the transfer of all significant risks and rewards. In such cases, the revenue is recognized on percentage of completion method, when the stage of completion of each project reaches a reasonable level of progress. The revenue is recognized in proportion that the contract cost incurred for work performed up to the reporting date bear to the estimated total contract cost.

ii. Interest Income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

iii. Dividend Income

Dividend income is recognized with the company's right to receive dividend is established by the reporting date.

iv. Other Income

Other Income is accounted on accrual basis

I. Foreign currency transactions

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

Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured 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 measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

Exchange differences

i. Exchange difference arising on a monetary item that, in substance forms part of the company's net investment in a non-integral foreign operation is accumulated in the foreign currency translation reserve until the disposal of the net investment. On the disposal of such net investment, the cumulative amount of the exchange differences which have been deferred and which relates to that investment is recognized as income or as expenses in the same period in which the gain or loss on disposal is recognized.

ii. Exchange difference arising on long-term foreign currency monetary items related to acquisition of a fixed asset are capitalized and depreciated over the remaining useful life of the asset. For this purpose, the company treats a foreign monetary item as "long-term foreign currency monetary items", if it has a term of 12 months or more at the date of its origination.

iii. Exchange differences arising on other long-term foreign currency monetary items are accumulated in the "Foreign Currency Monetary Translation Difference Account' and amortized over the remaining life of the concerned monetary item.

iv. All other exchange differences are recognized as income or as expenses in the period in which they arise.

j. Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The contribution to the provident fund is charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund.

The company operates two defined benefit plans for its employee, viz., gratuity and post employment medical benefit liability. The costs of providing benefits under these plans are determined on the basis actuarial valuation at each year-end. Separate actuarial valuation is carried out for each plan using the projected unit credit method. Actuarial gains and losses for both defined plans are recognized in full in the period in which they occur in the statement of profit and loss.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short - term employee benefit. The company measures the expected cost of such absences as the additional amount that is except to pay as a result of the unused entitlement that has accumulated at the reporting date.

The company treats accumulated leave excepted to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/losses are immediately taken to the statement of profit and loss and are not deferred. The company presents the entire leave as a current liability in the balance sheet, since it does not have an unconditional right to defer its settlement for 12 months after the reporting date.

k. Income Taxes

Tax expenses comprise current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdiction where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted ay the reporting date. Deferred income tax relating to items recognized in equity and not in the statement of profit and loss.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situation where the company has unabsorbed or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

In the situation where the company is entitled to a tax holiday under the income-tax Act, 1961 enacted in India or tax laws prevailing in the respective tax jurisdiction where it operates, no deferred tax (asset or liability) is recognized in respect of timing differences which reverse during the tax holiday period, to the extent the company's gross total income is subject to the deduction during the tax holiday period. Deferred tax in respect of timing differences which after the tax holiday is recognized in the year in which the timing differences originate. However, the restrict recognition of deferred tax assets to the extent that it has become reasonable certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax can be realized. For recognition of deferred taxes, the timing difference which originates first is considered to reverse first.

At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognized unrecognized deferred asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes- down the carrying amount of deferred tax asset to the extent that is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such written- down is reserved to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

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

l. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are shares are treated as a

fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a right issue, share split, and reserve share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

m. Provisions

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

n. Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statement.

o. Cash and cash equivalents

Cash and cash an equivalent for the purposes of cash flow statement comprises cash at bank and in hand and short-term investments with an original maturity of three months or less.

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Mar 31, 2011

A Basis of Accounting:

i. The financial statements are prepared under Historical Cost Convention and on accrual basis and are in accordance with the requirements of the Companies Act, 1956 of India (the "Act").

ii. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

I Fixed Assets:

Fixed Assets are stated at historical cost less accumulated depreciation. Cost is inclusive of inward freight, duties, taxes, and installation expenses; Allocable Pre-operative expenses including trial run expenses, net of cenvat credit and value added tax are capitalized. Interest on borrowing and financing cost during the period of construction is added to the cost of fixed assets.

c Depreciation:

Depreciation has been provided on all the Assets on Straight Line Method, at the rates specified under ScheduleHPXIVHPtoHPtheHPAct.

d Transaction in Foreign Currency:

i. Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

ii. Monetary items denominated in foreign currencies at the year end and not covered by forward exchange contracts are translated at the year end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference having been recognized over the life of the contract.

iii. Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the profit and loss account.

EC Expenditure Pending Allocation:

All the revenue expenses up to the date ofHPcommercial production are capitalized and allocated proportionately to the Fixed Assets.

f Inventories:

Items of Inventories are measured at lower of cost or net realizable value. Cost of Inventories comprise of all cost of purchase, cost of conversion and other cost incurred in bringing them to their present location and condition.

i. Raw Materials

At cost including incidental expenses.

ii. Finished Goods

Finished Goods includes saleable Work-in- Process, and is valued at cost inclusive of excise duty or net realizable value whichever is lower

iii. Stores and Spares

At cost including incidental expenses.

iv Scrap

At realizable value.

v Goods in Transit

At actual cost incurred up to the date of Balance Sheet.

g Borrowing Cost:

Borrowing costs that are attributable to the acquisition or continuation of qualifying assets are capitalized as partHPofHPthe cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowings cost are charged to revenue.

h. Sales:

Sales include excise duty, insurance, sales tax, freight outward, exchange rate fluctuation on exports and export incentives.

i. Retirement benefit:

In compliance with the Accounting Standard 15 Liability in respect of leave encashment and gratuity is provided on accrual basis. Companys contribution to statutory welfare funds is charged to Profit and Loss Account.

j. Impairment of Assets:

If the carrying amount of Fixed Assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

The carrying amounts of the fixed assets are reviewed at each Balance Sheet date. If the carrying amount exceeds the recoverable amount on the reporting date, the. carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

k. Contingent Liabilities:

Contingencies, which are likely to materialize into till the date of approval of Accounts by the Board of Directors and having liabilities material effect, are being provided for. Other contingencies are shown as Contingent Liabilities byway of Notes to Accounts.

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Sep 30, 2009

A Basis of Accounting:

i. The financial statements are prepared under Historical Cost Convention and on accrual basis and are in accordance with the requirements of the Companies Act, 1956 of India (the "Act").

ii. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

b Fixed Assets:

Fixed Assets are stated at historical cost less accumulated depreciation. Cost is inclusive of inward freight, duties, taxes, and installation expenses; Allocable Pre-operative expenses including trial run expenses, net of cenvat credit and value added tax are capitalized. Interest on borrowing and financing cost during the period of construction is added to the cost of fixed assets.

c Depreciation:

Depreciation has been provided on all the Assets on Straight Line Method, at the rates specified under Schedule XIV to the Act.

d Transaction in Foreign Currency:

i. Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

ii. Monetary items denominated in foreign currencies at the period end and not covered by forward exchange contracts are translated at the period end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference having been recognized over the life of the contract.

iii.Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the profit and loss account.

e Expenditure Pending Allocation:

All the revenue expenses up to the date of commercial production are capitalized and allocated proportionately to the Fixed Assets.

f Inventories:

Items of Inventories are measured at lower of cost or net realizable value. Cost of Inventories comprise of all cost of purchase, cost of conversion and other cost incurred in bringing them to their present location and condition.

i. Raw Materials

At cost including incidental expenses.

ii. Finished Goods

Finished Goods includes saleable Work-in- Process, and is valued at cost inclusive of excise duty or net realizable value whichever is lower

iii. Stores and Spares

At cost including incidental expenses.

iv. Scrap At realizable value.

v. Goods in Transit

At actual cost incurred up to the date of Balance Sheet.

g. Borrowing Cost:

Borrowing costs that are attributable to the acquisition or continuation of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowings cost are charged to revenue.

h. Sales:

Sales include excise duty, insurance, sales tax, freight outward, exchange rate fluctuation on exports and export incentives.

1. Retirement benefit:

In compliance with the Accounting Standard 15 Liability in respect of leave encashment and gratuity is provided on accrual basis. Companys contribution to statutory welfare funds is charged to Profit and Loss Account.

j. Impairment of Assets:

If the carrying amount of Fixed Assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

The carrying amounts of the fixed assets are reviewed at each Balance Sheet date. If the carrying amount exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

k. Contingent Liabilities:

Contingencies, which are likely to materialize into till the date of approval of Accounts by the Board of Directors and having liabilities material effect, are being provided for. Other contingencies are shown as Contingent Liabilities by way of Notes to Accounts.