Accounting Policies of Shricon Industries Ltd. Company

Mar 31, 2025

2.4 Summary of Material Accounting Policies:

(a). Property, Plant and Equipment

Property, Plant and Equipment are stated at cost or as revalued, less accumulated depreciation and
impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing
the asset to its working condition for its intended use. Borrowing costs relating to acquisition of
fixed assets, if material, are also included in cost to the extent they relate to the period till such
assets are ready to be put to use.

Depreciation on Property, Plant and Equipment is provided on useful life of the assets on Written
down Value method as specified in Schedule II to the Companies Act, 2013.

Impairment of Assets

A Property, Plant and Equipment is treated as impaired when the carrying cost of assets exceeds its
recoverable value. An impairment loss is charged to the profit & loss account in the year in which an
asset is identified as impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable amount. After impairment,
depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

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(b) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated
amortization/depletion and impairment loss, if any. The cost comprises purchase/acquisition price,
borrowing costs, and any cost directly attributable to bringing the asset to its working condition for
the intended use and net charges on foreign exchange contracts and adjustments arising from
exchange rate variations attributable to the intangible assets.

Technology Asset acquired on amalgamation is amortized over useful life of the underlying Asset.
Computer Software is amortized over a period of life as specified in schedule II of the companies act
and on Written down Value method as specified in Schedule II to the Companies Act, 2013.

(c) Revenue Recognition

Revenue is recognized to the extent it is probable that the economic benefits will flow
to the company and the revenue can be reliably measured.

(!) Sale of Goods

Revenue from sale of goods is recognized when the Material risks and rewards of
ownership of the goods have passed to the buyer and is stated net of trade discount,
returns and Sales Tax / VAT/GST or other taxes collected on behalf of the government.
Given the nature of business of the company, the company require to issue Tax Invoice
when finished goods are ready for dispatch, but after issue of Tax Invoice to buyer,
buyer need to submit Essential Certificate, (EC) to the company from DGH, which takes
normally two weeks'' time before dispatch, till such time FG can''t be dispatched, but the
same is accounted for in sales as per Tax Invoice issued.

(ii) Sale of Services

Revenue from rendering services is recognized when the performance of agreed
contractual task has been completed.

(iii) Other Operating Revenue

Interest from foreign exchange fluctuation, which is mostly related to sale and is
recognised as other operating income, being related to direct operational income.
Incentives on exports and other Government Grants related to operations are
recognised in books after due consideration of certainty of utilization/receipt of such
incentives.

(iv) Interest * Revenue is recognized on a time proportion basis taking into account the
amount outstanding and the rate applicable.

(v) Export Benefits / Incentives - Export entitlement under Duty Entitlement Pass Book
(''DEPB'') Scheme are recognised in the Profit & Loss Account when the right to receive
credit as per terms of the scheme is established in respect of export made and where
there is no Material uncertainty regarding the ultimate collection of the relevant export
proceeds.

(d) Expenditures

Rebate, claims & settlement on goods sold are accounted for as and wbeft4iiese are
ascertained with reasonable accuracy.

(e) Inventories

(i) Inventories of Finished Goods, Work in progress, Raw materials, Packing materials and
Stores & Spares are stated at lower of cost and net realizable value.

(ii) Cost of Raw Materials, Packing Materials, Stores and Spares, Trading and other products
are determined on weighted average basis and are net of GST/Cenvat credit.

(iii) Cost of Work in progress and Finished Goods is determined considering direct material
cost and appropriate portion of manufacturing overheads based on normal operating
capacity.

(iv) Obsolete, slow moving and defective inventories are identified at the time of physical
verification of inventories and where necessary, either written off or provision is made
for such inventories.

(iv) Cost of inventories comprises of cost of purchase, cost of conversion and other costs
including manufacturing overheads net of recoverable taxes incurred in bringing them
to their respective present location and condition.

(f) Employee Benefit

(i) Short Term Employee Benefit:

The undiscounted amount of short term employee benefits expected to be paid in
exchange for the services rendered by employees are recognised as an expense during
the period when the employees render the services this excludes leave encashment
entitlement annually, which is accounted for on the basis of actuarial basis.

(ii) Post Employment Benefits :

Defined Contribution Plan;

Employees benefits in the form of the Company''s contribution to Provident Fund,
Pension scheme, Superannuation Fund and Employees State Insurance is a defined
contribution scheme and contributions are charged to the Profit & Loss Account of the
year when the contribution to the respective fund is due.

Defined Benefit Plan:

Retirement benefits in the form of gratuity are considered as defined benefit
obligations and are provided for on the basis of actuarial valuation as at the date of
Balance Sheet which is not funded.

(g) Foreign Currency Transactions

(i) Initial Recognition

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

(ii) Foreign currency monetary items are reported using the closing rate.

(iii) Any gain or loss on account of exchange difference arising either on the settlement or
on reinstatement of foreign currency monetary items is recognised in the Profits Loss

account. _______ ^

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(h) Research and Development

Equipment''s purchased for research and development is capitalized when
commissioned and included in the gross block of Property, Plant and Equipment.
Revenue expenditure on research and development related to development of
intangible asset is charged to intangible assets under development and taken to
intangible assets, till research is complete and the same is recognized as intangible
assets ready for use. The other expenditure on R&D is charged to profit & loss account
in the period in which it is incurred.

(i) Prior period adjustments

Earlier year items, adjustment/Claims, arisen / settled / noted during the year are, if
material in nature, are debited / credited to the prior period Expenses/lncome or
respective heads of account if not material in the nature, if material charged to other
equity and carried to Balance Sheet.

(j) Investments

Investments that are readily realizable and intended to be held for not more than a year
classified as current investments. All other investments are classified as long-term
investments. Current investments are carried at lower of cost and fair value. Long -term
investments are stated at cost. Provision for diminution in the value of investments is
made, if it is other than temporary.

(k) Finance Cost

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

(l) Tax Expenses

The Tax expense for the period comprise Current and Deferred Tax. Tax is recognized in
Statement of Profit and Loss except to the extent that it related to the items recognized
in the comprehensive income or in equity. In which case, the tax is also recognized in
other comprehensive income or equity.

(i) Current Tax

Provision for Current Tax is made after considering benefits, exemptions and deductions
available under the Income Tax Act,1961.

(ii) Deferred tax

Deferred Tax is recognized subject to consideration of prudence, on timing differences,
representing the difference between the taxable income/(loss) and accounting
income/(loss) that originated in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured using the tax rates
and tax laws that have been enacted or substantively enacted by the Balance Sheet
date.

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 convirtg^Mtlspce
that it will pay normal tax during the specified period. /

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(m) Leases

Leases are classified as finance leases whenever the terms of the lease, transfers
substantially all the risks and rewards of ownership to the lessee. All other leases are
classified as operating leases.

Leased assets: Assets held under finance leases are initially recognized as assets of the
Company at their fair value at the inception of the lease or, if lower, at the present
value of the minimum lease payments. The corresponding liability to the lessor is
included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance expenses and reduction of the lease
obligation so as to achieve a constant rate of interest on the remaining balance of the
liability. Finance expenses are recognised immediately in Statement of Profit and Loss,
unless they are directly attributable to qualifying assets, in which case they are
capitalized. Contingent rentals are recognised as expenses in the periods in which they
are incurred.

A leased asset is depreciated over the useful life of the asset. However, if there is no
reasonable certainty that the Company will obtain ownership by the end of the lease
term, the asset is depreciated over the shorter of the estimated useful life of the asset
and the lease term.

Operating lease payments are recognized as an expense in the Statement of Profit and
Loss on a straight-line basis over the lease term except where another systematic basis
is more representative of time pattern in which economic benefits from the leased
assets are consumed.

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Mar 31, 2024

MATERIAL ACCOUNTING POLICIES AND OTHER DISCLOSURES ON FINANCIAL STATEMENTS

These are hereunder given summary of Material accounting policies and other disclosures on the consolidated financial statements

1. CORPORATE INFORMATION

Shricon Industries Limited (The Company), is a public limited Company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India The registered office of the Company is situated at 112B, First Floor, Shakti Nagar. Kota, Rajasthan-324009, INDIA.

2. MATERIAL ACCOUNTING POLICIES

This note provides a list of the Material accounting policies adopted in the preparation of these standalone financial statements.

2.1 Basis of preparation and presentation

(i) These standalone financial statements have been prepared under the historical cost convention

and on an accrual basis except in case of assets for which provision for impairment is made and revaluation is carried out The accounting policies have been consistently applied The financial statements are presented in Indian rupees rounded off to the nearest rupees.

(ii) Compliance with Ind AS

The standalone financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (the Act) (Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

Recent accounting pronouncements New and amended standards adopted by the Company

The Ministry of Corporate Affairs had vide notification dated 23 March 2022 notified Companies (Indian Accounting Standards) Amendment Rules, 2022 which amended certain accounting standards, and are effective 1 April 2022 These amendments did not have any impact on the amounts recognised in prior periods and are not expected to materially affect the current or future periods.

New and amended standards issued but not effective

The Ministry of Corporate Affairs has vide notification dated 31 March 2023 notified Companies (Indian Accounting Standards) Amendment Rules, 2023 (the ''Rules'') which amends certain accounting standards, and are effective 1 April 2024 The Rules predominantly amend Ind AS 12, Income taxes, and Ind AS 1, Presentation of financial statements. The other amendments to Ind AS notified by these rules are primarily in the nature of clarifications. These amendments are not expected to have a material impact on the company in the current or future reporting periods and on foreseeable future transactions. Specifically, no changes would be necessary as a consequence of amendments made to Ind AS 12 as the company''s accounting policy already complies with the now mandatory treatment.

2.2 Basis of Measurement

The standalone financial statements have been prepared on accrual basis and under the historical cost convention except following which have been measured at fair value: • certain financial assets and liabilities, • defined benefit plans - plan assets measured at fair value

The standalone financial statements are presented in Indian Rupees ( ), which is the Company’s functional and presentation currency and all amounts are rounded to the nearest lakhs ( 00,000) and two decimals thereof, except as stated otherwise

2.3 Use of Estimates

The preparation of the financial statements requires management to make estimates and assumptions. Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision effects only that period or in the period of the revision and future periods if the revision affects both current and future years.

2.4 Summary of Material Accounting Policies:

(a) . Property, Plant and Equipment

Property, Plant and Equipment are stated at cost or as revalued, less accumulated depreciation and impairment fosses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets, if material, are also included in cost to the extent they relate to the period till such assets are ready to be put to use.

Depreciation on Property, Plant and Equipment is provided on useful life of the assets on Written down Value method as specified in Schedule II to the Companies Act, 2013.

Impairment of Assets

A Property, Plant and Equipment is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life

(b) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion and impairment loss, if any. The cost comprises purchase/acquisition price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.

Technology Asset acquired on amalgamation is amortized over useful life of the underlying Asset. Computer Software is amortized over a period of life as specified in schedule II of the companies act and on Written down Value method as specified in Schedule II to the Companies Act, 2013

(c) Revenue Recognition

Revenue is recognized to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

(i) Sale of Goods

Revenue from sale of goods is recognized when the Material risks and rewards of ownership of the goods have passed to the buyer and is stated net of trade discount, returns and Sales Tax / VAT/GST or other taxes collected on behalf of the government. Given the nature of business of the company, the company require to issue Tax Invoice when finished goods are ready for dispatch, but after issue of Tax Invoice to buyer, buyer need to submit Essential Certificate, (EC) to the company from OGH , which takes normally two weeks'' time before dispatch, till such time FG can''t be dispatched, but the same is accounted for in sales as per Tax Invoice issued.

(ii) Sale of Services

Revenue from rendering services is recognized when the performance of agreed contractual task has been completed.

(iii) Other Operating Revenue

Interest from foreign exchange fluctuation, which is mostly related to sale and is recognised as other operating income, being related to direct operational income. Incentives on exports and other Government Grants related to operations are recognised in books after due consideration of certainty of utilization/receipt of such incentives.

(iv) Interest - Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

(v) Export Benefits / Incentives - Export entitlement under Duty Entitlement Pass Book (''DEPB’) Scheme are recognised in the Profit & Loss Account when the right to receive credit as per terms of the scheme is established in respect of export made and where there is no Material uncertainty regarding the ultimate collection of the relevant export proceeds.

(d) Expenditures

Rebate, claims & settlement on goods sold are accounted for as and when these are ascertained with reasonable accuracy.

(e) Inventories

(i) Inventories of Finished Goods, Work in progress. Raw materials, Packing materials and Stores & Spares are stated at lower of cost and net realizable value.

(ii) Cost of Raw Materials, Packing Materials, Stores and Spares, Trading and other products are determined on weighted average basis and are net of GST/Cenvat credit.

(iii) Cost of Work in progress and Finished Goods is determined considering direct material cost and appropriate portion of manufacturing overheads based on normal operating capacity.

(iv) Obsolete, slow moving and defective inventories are identified at the time of physical verification of inventories and where necessary, either written off or provision is made for such inventories.

(iv) Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes incurred in bringing them to their respective present location and condition.

(f) Employee Benefit

(i) Short Term Employee Benefit:

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services this excludes leave encashment entitlement annually, which is accounted for on the basis of actuarial basis.

(ii) Post Employment Benefits :

Defined Contribution Plan :

Employees benefits in the form of the Company''s contribution to Provident Fund, Pension scheme, Superannuation Fund and Employees State Insurance is a defined contribution scheme and contributions are charged to the Profit & Loss Account of the year when the contribution to the respective fund is due.

Defined Benefit Plan:

Retirement benefits in the form of gratuity are considered as defined benefit obligations and are provided for on the basis of actuarial valuation as at the date of Balance Sheet which is not funded.

(g) Foreign Currency Transactions

(i) Initial Recognition

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

(ii) Foreign currency monetary items are reported using the closing rate.

(iii) Any gain or loss on account of exchange difference arising either on the settlement or on reinstatement of foreign currency monetary items is recognised in the Profit & Loss account.

(h) Research and Development

Equipment''s purchased for research and development is capitalized when commissioned and included in the gross block of Property, Plant and Equipment Revenue expenditure on research and development related to development of intangible asset is charged to intangible assets under development and taken to intangible assets, till research is complete and the same is recognized as intangible

assets ready for use The other expenditure on R&D is charged to profit & loss account in the period in which it is incurred.

(i) Prior period adjustments

Earlier year items, adjustment/Claims, arisen / settled / noted during the year are, if material in nature, are debited / credited to the prior period Expenses/lncome or respective heads of account if not material in the nature, if material charged to other equity and carried to Balance Sheet

(j) Investments •

Investments that are readily realizable and intended to be held for not more than a year classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value Long -term investments are stated at cost. Provision for diminution in the value of investments is made, if it is other than temporary.

(k) Finance Cost

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

(l) Tax Expenses

The Tax expense for the period comprise Current and Deferred Tax. Tax is recognized in Statement of Profit and Loss except to the extent that it related to the items recognized in the comprehensive income or in equity In which case, the tax is also recognized in other comprehensive income or equity.

(i) Current Tax

Provision for Current Tax is made after considering benefits, exemptions and deductions available under the Income Tax Act,1961.

(ii) Deferred tax

Deferred Tax is recognized subject to consideration of prudence, on timing differences, representing the difference between the taxable income/(loss) and accounting income/(loss) that originated in one period and are capable of reversal in one or more subsequent periods Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

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.

(m) Leases

Leases are classified as finance leases whenever the terms of the lease, transfers substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Leased assets: Assets held under finance leases are initially recognized as assets of the Company at their fair value at the inception of the lease or, if lower, at the present

value of the minimum lease payments The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation

Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in Statement of Profit and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalized. Contingent rentals are recognised as expenses in the periods in which they are incurred.

A leased asset is depreciated over the useful life of the asset However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term except where another systematic basis is more representative of time pattern in which economic benefits from the leased assets are consumed

(n) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These estimates are reviewed at each reporting date.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost

Contingent liabilities are not recognized but are disclosed in notes.

Contingent assets are neither recognised nor disclosed in the financial statements.

(o) Segment Reporting

The accounting policies adopted by the company for segment reporting are in line with the Ind AS 108.

Business Segment: The Company''s operating business is engineering goods only and accordingly there is only one business segment.

Currency Segment: The analysis of currency segment is based on the basis of currency. The currency segments considered for disclosure are as follows

(a) Sales in Indian Currency

(b) Sales in foreign currency

Segment Assets denotes for assets in Local Currency and in foreign currency

(p) Earning Per Share

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted Earning per Share, the net profit or loss for the period attributable to Equity Shareholders and the weighted average number of Shares

outstanding during the period are adjusted for the effects of all dilutive potential Equity Shares.

(q) Financial Instruments

(i) Financial Assets

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition Purchase and sale of financial assets are recognised using trade date accounting.

B. Subsequent measurement

(i) Financial assets carried at amortised cost (AC)

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

(ii) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(iii) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL.

C. Investment in subsidiaries, Associates and Joint Ventures

The Company has accounted for its investments in subsidiaries, associates and joint venture at cost, if any.

D. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in ''Other Comprehensive Income''.

E. Impairment of financial assets

In accordance with Ind AS 109, the Company evaluate impairment of financial assets at fair value through profit and loss (FVTPL)

(ii) Financial liabilities ,

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payable maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

(iii) Derivative and Financial Instrument and Hedge Accounting

The Company uses derivative financial instruments such as currency swaps and forwards contracts to mitigate the risk of changes in exchange rates. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are also subsequently measured at fair value Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss, except for the effective portion of cash flow hedges which is recognised in Other Comprehensive Income and later to Statement of Profit and Loss when the hedged item affects profit or loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financial assets or non-financial liability.

Hedges that meet the criteria for hedge accounting are accounted for as follows:

a) Cash flow hedge

The Company designates derivative contracts or non derivative financial assets / liabilities as hedging instruments to mitigate the risk of movement in foreign exchange rates for foreign exchange exposure on highly probable future cash flows attributable to a recognised asset or liability or forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in the cash flow hedging reserve being part of other comprehensive income. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the underlying transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the Statement of Profit and Loss upon the occurrence of the underlying transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified in the Statement of Profit and Loss.

b) Fair Value Hedge

The Company designates derivative contracts or non derivative financial assets / liabilities as hedging instruments to mitigate the risk of change in fair value of hedged item due to movement in foreign exchange rates.

Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value hedges are recorded in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used and is amortised to Statement of Profit and Loss over the period of maturity.

(r) Government Grants:

Government grants with a condition to purchase, construct or otherwise acquire longterm assets are initially measured based on grant receivable under the scheme. Such grants are recognised in the Statement of Profit and Loss on a systematic basis over the useful life of the asset. Amount of benefits receivable in excess of grant income accrued based on usage of the assets is accounted as Government grant received in advance. Changes in estimates are recognised prospectively over the remaining life of the assets The company has option to present the government grant related to fixed assets by deducting the grant from the carrying value of the asset and to present the nonmonetary grant at a nominal amount The company has not availed this option in current financial year. Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the company will comply with all attached condition.

(s) Current versus non-current classification

The Company presents assets and liabilities in balance sheet based on current/non-current classification.

The Company has presented non-current assets and current assets before equity, noncurrent liabilities and current liabilities in accordance with Schedule III, Division II of Companies Act, 2013 notified by MCA.

(i) An asset is classified as current when it is:

a) Expected to be realised or intended to be sold or consumed in normal operating cycle,

b) Held primarily for the purpose of trading,

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

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

All other assets are classified as non-current.

(ii) A liability is classified

as current when it is:

a) Expected to be settled in normal operating cycle

b) Held primarily for the purpose of trading,

c) Due to be settled within twelve months after the reporting period, or

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

All other liabilities are classified as non-current. The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents

3. CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS, JUDGEMENT AND KEY SOURCES OF ESTIMATION UNCERTAINTY_______ _____

The preparation of company''s financial statements in conformity with Ind AS require management to make judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Uncertainty about these assumptions and estimates could result in outcomes that require material adjustments to the carrying value of the assets or liabilities affected in future period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized. The management believes that the estimates used in the preparation of the financial statements are prudent and reasonable.

3.1 Depreciation / Amortisation and useful lives of Property, Plant and Equipment / Intangible Assets

Tangible Assets

Depreciation on Property, Plant and Equipment is provided on useful life of the assets which is taken as specified in Schedule II to the Companies Act, 2013 and depreciation is charged on Written Down Value method after taking into residual value of the assets in order to determine the amount of depreciation / amortization to be recorded during reporting period.

Intangible Assets

The intangible asset is amortized over a period of estimated useful life of asset, taking into account of anticipated technological changes. The depreciation / amortization for the future period is revised if there are Material changes from previous estimates

3.2 Recoverability of trade receivable and advances

Judgements are required in assessing the recoverability of overdue trade receivables and advances and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

3.3 Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and

quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances

3.4 Income taxes

Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ from actual outcome which could lead to Material adjustment to the amounts reported in the standalone financial statements.

3.5 Contingencies

Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/ claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy

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Mar 31, 2014

Significant Accounting Policies and Notes to Accounts annexed to and forming part of the Balance Sheet as at 318t March 2014 and Profit and Loss Statement for the year ending on that date.

1. Statement on Significant Accounting Policies

These financial statements are prepared on an accrual basis, under historical cost convention and in compliance in all material aspects with the applicable accounting principles in India, the applicable accounting standards notified under section 211(3C) of the Companies Act 1956 and the relevant provision of the Companies Act 1956 and provision of companies act, 2013 to the extent applicable. Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principals. The significant accounting policies adopted by the company are detailed below.

A. Revenue Recognition

Expenses and income considered payable and receivable respectively are accounted for on accrual basis except those, which can''t be ascertained with certainly in the respective accounting year.

B. Fixed Assets

Fixed assets other than plots are stated at cost of acquisition less depreciation.

C. Depreciation:

Depreciation has been provided on written down value method at the rates and the manner prescribed in the schedule XIV of the Companies Act 1956. However incase of lease hold land no depreciation has been provided for in the books of accounts.

D. Investments

Investments are valued at cost.

E. Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act 1961

F. Impairment of Assets:

As stipulated in AS 28, the Company assessed potential generation of economic benefits from its business units and is of the view that the assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts.

G. Regrouping/Reclassification

Figures for the previous period have been regrouped / reclassified in line with revised Schedule VI as directed by MCA through Notification No. S.O. 447(E).

A. Statutory Auditors remuneration is Rs. 18,000/- (including out of pocket expenses) Previous year Rs. 18,000/-

B. Directors Remuneration Rs. Nil

C. Segmental Reporting: Not Applicable

D. Disclosure of related parties/ related party transactions:

During the year the company has obtained loan from its director Mr. Om Prakash Maheshwari. Company is paying 9% interest on the said loan obtained from directors. Loan taken during the year is Rs. 9,37,836/-, Repaid Rs. 16,107/- (including interest of Rs. 6,37,376/-), maximum outstanding during the year is Rs. 78,43,195/- Closing Balance is Rs. 78,43,195/-, (Previous year, Loan taken is Rs. 18,36,088/-, Repaid Rs. 1,10,696/-, Maximum outstanding Rs. 69,21,466/- Closing Balance is 7 69,21,466/- )-

E. Disclosure under section 22 of the Micro, Small and Medium Enterprises Development Act 2006: Amount due to Micro, Small and Medium Enterprises: Rs. Nil

F. The Management of the company has review the existing assets working conditions and utility as at the balance sheet date and are of the opinion that there exists no indication that an asset has been impaired and hence no impairment has been carried out.

H. Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

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Mar 31, 2013

These financial statements are prepared on an accrual bails, under historical cost convention and in compliance in all material aspects with the applicable accounting principles in India, the applicable accounting standards notified under section 211 (3C) of the Companies Act 1956 and the relevant provision of the Companies Act 1956 Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principals. The significant accounting policies adapted by the company are detailed below.

A. Revenue Recognition

Expenses and income considered payable and receivable respectively are accounted for on accrual basis except those, which can''t be ascertained with certainly in the respective accounting year.

B. Fixed Assets

Fixed assets other than plots are stated at cost of acquisition less depreciation.

C. Depreciation:

Depreciation has been orovided on written down value method at the rates and the manner prescribed in the schedule XIV of the Companies Act 1956. However incase of lease hold land no depreciation has been provided for in the books of account

D. Investments Investments are valued at cost.

E. Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the. Income Tax Act 1961

F. Impairment of Assets:

As stipulated in AS 28, the Company assessed potential generation of economic benefits from its business units and is of the view that the assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is at the view that no impairment provision is called for in these accounts.

G. Kegrouping/Reclassification

Figures for the pievious period have been regrouped / reclassified in line with revised Schedule VI as directed by MCA through Notification No. 5.O. 447(E).

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Mar 31, 2012

These financial statements are prepared on an accrual basis, under historical cost convention and in compliance in all material aspects with the applicable accounting principles in India, the applicable accounting standards notified under section 211(3C) of the Companies Act 1956 and the relevant provision of the Companies Act 1956 Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principals. The significant accounting policies adopted by the company are detailed below.

1. Revenue Recognition

Expenses and income considered payable and receivable respectively are accounted for on accrual basis except those, which can't be ascertained with certainly in the respective accounting year.

2. Fixed Assets

Fixed assets other than plots are stated at cost of acquisition less depreciation.

3. Depreciation:

Depreciation has been provided on written down value method at the rates and the manner prescribed in the schedule XIV of the Companies Act 1956. However incase of lease hold land no depreciation has been provided for in the books of accounts.

4 Investments

Investments are valued at cost.

5. Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act 1961

6. Impairment of Assets:

As stipulated in AS 28, the Company assessed potential generation of economic benefits from its business units and is of the view that the assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts.

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Mar 31, 2010

These financial statements are prepared on an accrual basis, under historical cost convention and in compliance in all material aspects with the applicable accounting principles in India, the applicable accounting standards notified under section 211(3C) of the Companies Act 1956 and the relevant provision of the Companies Act 1956 Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principals. The significant accounting policies adopted by the company are detailed below.

1. Revenue Recognition

Expenses and income considered payable and receivable respectively are accounted for on accrual basis except those, which can’t be ascertained with certainly in the respective accounting year.

2. Fixed Assets

Fixed assets other than plots are stated at cost of acquisition less depreciation.

3. Depreciation:

Depreciation has been provided on written down value method at the rates and the manner prescribed in the schedule XIV of the Companies Act 1956. However incase of lease hold land no depreciation has been provided for in the books of accounts.

4 Investments

Investments are valued at cost.

5. Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act 1961

6. Impairment of Assets:

As stipulated in AS 28, the Company assessed potential generation of economic benefits from its business units and is of the view that the assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts.

7. Previous year figures have been regrouped/ rearranged wherever necessary.

8. Confirmation from the sundry debtors, creditors are still awaited.