Accounting Policies of Soma Papers & Industries Ltd. Company

Mar 31, 2025

2 Material Accounting Policies

2.1 Basis of preparation

The financial statements of the company have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015(as
amended).

The financial statements have been prepared on a historical cost basis, except for the following assets and
liabilities which have been measured at fair value or revalued amount:

- Certain financial assets and liabilities measured at fair value

The financial statements are presented in Indian Rupees (INR) in 000''s.

2.2 Summary of Material accounting policies

(a) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as
revenue are inclusive of excise duty and net of returns, trade allowances, rebates, value added taxes and
amounts collected on behalf of third parties. The company recognises revenue when the amount of revenue
can be reliably measured, it is probable that future economic benefits will flow to the entity and specific
criteria have been met for each of the company''s activities as described below. The company bases its
estimates on historical results, taking into consideration the type of customer, the type of transaction and the
specifics of each arrangement.

Recognising revenue from major business activities

(i) Sale of goods

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the
goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods is
measured at the fair value of the consideration received or receivable, net of returns and allowances, trade
discounts and volume rebates.

(ii) Interest income

For all debt instruments measured either at amortised cost or at fair value through other comprehensive
income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly
discounts the estimated future cash payments or receipts over the expected life of the financial instrument
or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortised
cost of a financial liability. When calculating the effective interest rate, the company estimates the expected
cash flows by considering all the contractual terms of the financial instrument (for example, prepayment,
extension, call and similar options) but does not consider the expected credit losses. Interest income is
included in other income in the statement of profit and loss.

Revenue is recognised when the company''s right to receive the payment is established, which is generally
when shareholders approve the dividend.

(b) Taxes

(i) Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date in the countries where the company operates and
generates taxable income.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken
in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.

(ii) Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax
asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are
recognised 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 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 taxes relate to the same taxable entity and the
same taxation authority.

(c) Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the
arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to
use the asset or assets, even if that right is not explicitly specified in an arrangement.

(i) As a lessee

A lease is classified at the inception date as a finance lease or an operating lease. Leases of property, plant
and equipment where the company, as lessee, has substantially all the risks and rewards of ownership are
classified as finance leases. Finance leases are capitalised at the lease''s inception at the fair value of the
leased property or, if lower, the present value of the minimum lease payments. The corresponding rental
obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate.
Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the
profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period.

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.

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

(ii) As a lessor

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer
from the Company to the lessee. Amounts due from lessees under finance leases are recorded as
receivables at the Company''s net investment in the leases. Finance lease income is allocated to accounting
periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the
lease.

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

(d) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk of
changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the
Company''s cash management.

(e) Inventories

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

Raw materials: cost includes cost of purchase and other costs incurred in bringing the inventories to their
present location and condition. Cost is determined on first in, first out/weighted average basis.

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

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

Initial cost of inventories includes the transfer of gains and losses on qualifying cash flow hedges,
recognised in OCI, in respect of the purchases of raw materials.

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

(f) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

(i) Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at

fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the
date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

- Debt instruments at amortised cost

- Debt instruments at fair value through other comprehensive income (FVTOCI)

- Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

- Equity instruments measured at fair value through other comprehensive income (FVTOCI)

(1) Debt instruments at amortised cost

A ‘debt instrument'' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal
and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are
subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is
calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses
arising from impairment are recognised in the profit or loss. This category generally applies to trade and
other receivables.

(2) Debt instrument at FVTOCI

A ‘debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:

(a) The objective of the business model is achieved both by collecting contractual cash flows and selling the
financial assets, and

(b) The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting
date at fair value. Fair value movements are recognized in the other comprehensive income (OCI).
However, the group recognizes interest income, impairment losses & reversals and foreign exchange gain
or loss in the P&L. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is
reclassified from the equity to P&L. Interest earned whilst holding FVTOCI debt instrument is reported as
interest income using the EIR method.

(3) Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the company may elect to designate a debt instrument, which otherwise meets amortized cost or
FVTOCI criteria, as at FvtPl. However, such election is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to as ‘accounting mismatch''). The company has not
designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held
for trading and contingent consideration recognised by an acquirer in a business combination to which Ind
AS103 applies are classified as at FVTPL. For all other equity instruments, the company may make an
irrevocable election to present in other comprehensive income subsequent changes in the fair value. The
company makes such election on an instrument by- instrument basis. The classification is made on initial
recognition and is irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI
to P&L, even on sale of investment. However, the company may transfer the cumulative gain or loss within
equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.

Interest in subsidiaries, associates and joint ventures are accounted at cost.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)
is primarily derecognised (i.e. removed from the Company''s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The company has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a ‘pass-through''
arrangement; and either (a) the company has transferred substantially all the risks and rewards of the asset,
or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset,
but has transferred control of the asset.

When the company has transferred its rights to receive cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the company continues to recognise the transferred asset to the extent of
the Company''s continuing involvement. In that case, the company also recognises an associated liability.
The transferred asset and the associated liability are measured on a basis that reflects the rights and
obligations that the company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the
company could be required to repay.

Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its assets
carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on
whether there has been a significant increase in credit risk. Note 21 details how the company determines
whether there has been a significant increase in credit risk.

For trade receivables only, the company applies the simplified approach permitted by Ind AS 109 Financial
Instruments, which requires expected lifetime losses to be recognised from initial recognition of the
receivables.

(ii) Financial liabilties

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective
hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

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

Subsequent measurement

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

(1) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This
category also includes derivative financial instruments entered into by the company that are not designated
as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives
are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as
such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities
designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in
OCI. These gains/ loss are not subsequently transferred to P&L. However, the company may transfer the
cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the
statement of profit or loss. The company has not designated any financial liability as at fair value through
profit and loss.

(2) Loans and borrowings

This is the category most relevant to the company. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation
process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of
profit and loss.

(3) Financial guarantee contracts

Financial guarantee contracts issued by the company are those contracts that require a payment to be
made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when
due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially
as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined
as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability. The
difference in the respective carrying amounts is recognised in the statement of profit or loss.

(iii) Reclassification of financial assets

The company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change
in the business model for managing those assets. Changes to the business model are expected to be
infrequent. The company''s senior management determines change in the business model as a result of

external or internal changes which are significant to the company''s operations. Such changes are evident to
external parties. A change in the business model occurs when the company either begins or ceases to
perform an activity that is significant to its operations. If the company reclassifies financial assets, it applies
the reclassification prospectively from the reclassification date which is the first day of the immediately next
reporting period following the change in business model. The company does not restate any previously
recognised gains, losses (including impairment gains or losses) or interest.

(iv) Offsetting of financial instruments

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

(g) Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end of
financial year which are unpaid. The amounts are unsecured and are usually paid within XX days of
recognition. Trade and other payables are presented as current liabilities unless payment is not due within
12 months after the reporting period. They are recognised initially at their fair value and subsequently
measured at amortised cost using the effective interest method.

(h) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalised during the period of time that is required to complete and
prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a
substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure
on qualifying assets is deducted from the borrowing costs eligible for capitalisation. Other borrowing costs
are expensed in the period in which they are incurred.

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Mar 31, 2024

2 Material Accounting Policies

2.1 Basis of preparation

The financial statements of the company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified
under the Companies (Indian Accounting Standards) Rules, 2015(as amended).

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have
been measured at fair value or revalued amount:

- Certain financial assets and liabilities measured at fair value

The financial statements are presented in Indian Rupees (INR) in 000''s.

2.2 Summary of Material accounting policies

(a) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are inclusive of
excise duty and net of returns, trade allowances, rebates, value added taxes and amounts collected on behalf of third parties. The
company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits
will flow to the entity and specific criteria have been met for each of the company''s activities as described below. The company
bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of

Recognising revenue from major business activities

(i) Sale of goods

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the

goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods is measured at the fair value of
the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.

(ii) Interest income

For all debt instruments measured either at amortised cost or at fair value through other comprehensive income, interest income
is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or
receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of
the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, the company
estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment,
extension, call and similar options) but does not consider the expected credit losses. Interest income is included in other income in
the statement of profit and loss.

(iii) Dividend income

Revenue is recognised when the company''s right to receive the payment is established, which is generally when shareholders
approve the dividend.

(b) Taxes

(i) Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the
reporting date in the countries where the company operates and generates taxable income.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or
directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

(ii) Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any
unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each reporting date and are recognised 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 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 taxes relate to the same taxable entity and the same taxation authority.

(c) Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the
inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a
specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in
an arrangement.

(i) As a lessee

A lease is classified at the inception date as a finance lease or an operating lease. Leases of property, plant and equipment where
the company, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are
capitalised at the lease''s inception at the fair value of the leased property or, if lower, the present value of the minimum lease
payments. The corresponding rental obligations, net of finance charges, are included in borrowings or other financial liabilities as
appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the profit or loss
over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
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.

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

(ii) As a lessor

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to
the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company''s net investment in the
leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net
investment outstanding in respect of the lease.

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

(d) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined
above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

(e) Inventories

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

Raw materials: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and
condition. Cost is determined on first in, first out/weighted average basis.

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

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

Initial cost of inventories includes the transfer of gains and losses on qualifying cash flow hedges, recognised in OCI, in respect of
the purchases of raw materials.

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

(f) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.

(i) Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit
or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that
require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are
recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

- Debt instruments at amortised cost

- Debt instruments at fair value through other comprehensive income (FVTOCI)

- Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

- Equity instruments measured at fair value through other comprehensive income (FVTOCI)

(1) Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI)
on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are subsequently measured at
amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in
the profit or loss. The losses arising from impairment are recognised in the profit or loss. This category generally applies to trade
and other receivables.

(2) Debt instrument at FVTOCI

A ''debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:

(a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

(b) The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair
value movements are recognized in the other comprehensive income (OCI). However, the group recognizes interest income,
impairment losses & reversals and foreign exchange gain or loss in the P&L. On derecognition of the asset, cumulative gain or loss
previously recognised in OCI is reclassified from the equity to P&L. Interest earned whilst holding FVTOCI debt instrument is
reported as interest income using the EIR method.

(3) Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at
amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at
FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency
(referred to as ''accounting mismatch''). The company has not designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.

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(4) Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and
contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL.
For all other equity instruments, the company may make an irrevocable election to present in other comprehensive income
subsequent changes in the fair value. The company makes such election on an instrument by- instrument basis. The classification is
made on initial recognition and is irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding
dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However,
the company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.

Interest in subsidiaries, associates and joint ventures are accounted at cost.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e. removed from the Company''s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a ''pass-through'' arrangement; and either (a) the company has
transferred substantially all the risks and rewards of the asset, or (b) the company has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement,
it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset, nor transferred control of the asset, the company continues to recognise the
transferred asset to the extent of the Company''s continuing involvement. In that case, the company also recognises an associated
liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the
company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that the company could be required to repay.

Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost
and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in
credit risk. Note 21 details how the company determines whether there has been a significant increase in credit risk.

For trade receivables only, the company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which
requires expected lifetime losses to be recognised from initial recognition of the receivables.

(ii) Financial liabilties

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs.

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

Subsequent measurement

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

(1) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are
incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into
by the company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated
embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of
recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses
attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L.
However, the company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are
recognised in the statement of profit or loss. The company has not designated any financial liability as at fair value through profit

(2) Loans and borrowings

This is the category most relevant to the company. After initial recognition, interest-bearing loans and borrowings are subsequently
measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are
derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

(3) Financial guarantee contracts

Financial guarantee contracts issued by the company are those contracts that require a payment to be made to reimburse the
holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt
instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are
directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss
allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the
recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

(iii) Reclassification of financial assets

The company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no
reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt
instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the
business model are expected to be infrequent. The company''s senior management determines change in the business model as a
result of external or internal changes which are significant to the company''s operations. Such changes are evident to external
parties. A change in the business model occurs when the company either begins or ceases to perform an activity that is significant
to its operations. If the company reclassifies financial assets, it applies the reclassification prospectively from the reclassification
date which is the first day of the immediately next reporting period following the change in business model. The company does not
restate any previously recognised gains, losses (including impairment gains or losses) or interest.

(iv) Offsetting of financial instruments

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

(g) Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end of financial year which are
unpaid. The amounts are unsecured and are usually paid within XX days of recognition. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair
value and subsequently measured at amortised cost using the effective interest method.

(h) Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale.
Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalisation. Other borrowing costs are expensed in the period in which they are
incurred.

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Mar 31, 2014

A. System of accounting

The financial statements are prepared under historical cost convention, in accordance with the generally accepted accounting principles in India and provisions of the Companies Act, 1956.

B. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialized.

C. Fixed assets

Fixed assets are stated at cost net of recoverable taxes and includes amount added on revaluation, less accumulated depreciation and impairment loss, if any.

D. Depreciation

a) Depreciation on fixed assets is provided on straight-line method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956.

b) Depreciation on assets added/disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/disposal.

c) Continuous process plants as defined in Schedule XIV to the Companies Act, 1956 have been considered.

E. Investments

Long term Investments of the long-term nature are stated at cost less diminution in value wherever the decline is other than a temporary decline. Current Investments are carried at lower of cost or fair value.

F. Inventories

Inventories if any are valued at lower of the cost and estimated net realisable value. Cost of inventories is computed on weighted average basis. Finished goods and work-in-progress if any include costs of conversion and other cost incurred in bringing the inventories to their present location and condition.

G. Revenue recognition

Revenue is recognized when it can be reliably measured and it is reasonable to expect ultimate collection. Income and expenditure are recognised and accounted on accrual basis, except in case of significant uncertainties.

H. Employee benefits

Short term employee benefits are recognized as an expense in the Profit and Loss Account. Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques.

I. Foreign currency transactions

Transaction denominated in foreign currency if any, are recorded using the exchange rate prevailing at the date of transaction. Assets and liabilities denominated in foreign currency as at balance sheet date are converted at the exchange rates prevailing at that date. Exchange differences other than those relating to acquisition of fixed assets are recognised in the profit and loss account. Exchange differences relating to purchase of fixed assets are adjusted to carrying cost of fixed assets.

J. Expenditure during construction period

Expenditure during construction period if any, are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

K. Research and development

Revenue expenses in respect of research and development are charged to profit and loss account and capital expenditure of such nature are added to the cost of fixed assets in the year in which they are incurred.

L. Taxation

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

The deferred tax for timing differences between the book profits and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

M. Provision and contingent liabilities

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made

N. Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

O. Borrowing Costs

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of such assets. All other borrowing costs are charged to Profit and Loss Account.

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Mar 31, 2013

A. System of accounting

The financial statements are prepared under historical cost convention, in accordance with the generally accepted accounting principles in India and provisions of the Companies Act, 1956.

B. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialized.

C. Fixed assets

Fixed assets are stated at cost net of recoverable taxes and includes amount added on revaluation, less accumulated depreciation and impairment loss, if any.

D. Depreciation

a) Depreciation on fixed assets is provided on straight-line method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956.

b) Depreciation on assets added/ disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/ disposal.

c) Continuous process plants as defined in Schedule XIV to the Companies Act, 1956 have been considered.

E. Investments

Long term Investments of the long-term nature are stated at cost less diminution in value wherever the decline is other than a temporary decline. Current Investments are carried at lower of cost or fair value.

F. Inventories

Inventories if any are valued at lower of the cost and estimated net realisable value. Cost of inventories is computed on weighted average basis. Finished goods and work-in-progress if any include costs of conversion and other cost incurred in bringing the inventories to their present location and condition.

G. Revenue recognition

Revenue is recognized when it can be reliably measured and it is reasonable to expect ultimate collection. Income and expenditure are recognised and accounted on accrual basis, except in case of significant uncertainties.

H. Employee benefits

Short term employee benefits are recognized as an expense in the Profit and Loss Account. Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques.

I. Foreign currency transactions

Transaction denominated in foreign currency if any, are recorded using the exchange rate prevailing at the date of transaction. Assets and liabilities denominated in foreign currency as at balance sheet date are converted at the exchange rates prevailing at that date. Exchange differences other than those relating to acquisition of fixed assets are recognised in the profit and loss account. Exchange differences relating to purchase of fixed assets are adjusted to carrying cost of fixed assets.

J. Expenditure during construction period

Expenditure during construction period if any, are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

K. Research and development

Revenue expenses in respect of research and development are charged to profit and loss account and capital expenditure of such nature are added to the cost of fixed assets in the year in which they are incurred.

L. Taxation

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

The deferred tax for timing differences between the book profits and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

M. Provision and contingent liabilities

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made

N. Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

O. Borrowing Costs

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of such assets. All other borrowing costs are charged to Profit and Loss Account.

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Mar 31, 2012

A. System of accounting

The financial statements are prepared under historical cost convention, in accordance with the generally accepted accounting principles in India and provisions of the Companies Act, 1956.

B. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialized.

C. Fixed assets

Fixed assets are stated at cost net of recoverable taxes and includes amount added on revaluation, less accumulated depreciation and impairment loss, if any.

D. Depreciation

Depreciation on fixed assets is provided on straight-line method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956.

a) Depreciation on assets added/disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/disposal.

b) Continuous process plants as defined in Schedule XIV to the Companies Act, 1956 have been considered.

E. Investments

Long term Investments of the long-term nature are stated at cost less diminution in value wherever the decline is other than a temporary decline. Current Investments are carried at lower of cost or fair value.

F. Inventories

Inventories if any, are valued at lower of the cost and estimated net realisable value. Cost of inventories is computed on weighted average basis. Finished goods and work-in-progress if any, include costs of conversion and other cost incurred in bringing the inventories to their present location and condition.

G. Revenue recognition

Revenue is recognized when it can be reliably measured and it is reasonable to expect ultimate collection. Income and expenditure are recognised and accounted on accrual basis, except in case of significant uncertainties.

H. Employee benefits

Short term employee benefits are recognized as an expense in the Profit and Loss Account. Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques.

I. Foreign currency transactions

Transaction denominated in foreign currency if any, are recorded using the exchange rate prevailing at the date of transaction. Assets and liabilities denominated in foreign currency as at balance sheet date are converted at the exchange rates prevailing at that date. Exchange differences other than those relating to acquisition of fixed assets are recognised in the profit and loss account. Exchange differences relating to purchase of fixed assets are adjusted to carrying cost of fixed assets.

J. Expenditure during construction period

Expenditure during construction period if any, are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

K. Research and development

Revenue expenses in respect of research and development are charged to profit and loss account and capital expenditure of such nature are added to the cost of fixed assets in the year in which they are incurred.

L. Taxation

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

The deferred tax for timing differences between the book profits and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

M. Provision and contingent liabilities

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made

N. Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

O. Borrowing Costs

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of such assets. All other borrowing costs are charged to Profit and Loss Account.

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Mar 31, 2011

1.The accounts are prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern though the business was not carried on during the year.

2.Fixed assets

Fixed assets are stated at cost less accumulated depreciation. Land in the hands of Company is shown at revalued amount.

3.Depreciation

a) Depreciation on fixed assets is provided on straight-line method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956.

b) Depreciation on assets added/disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/disposal.

c) Continuous process plants as defined in Schedule XIV to the Companies Act, 1956 have been considered.

4. Investments

Investments of the long-term nature are stated at cost less diminution in value wherever the decline is other than a temporary decline.

5. Inventories

Inventories if any, are valued at lower of the cost and estimated net realisable value. Cost of inventories is computed on weighted average basis. Finished goods and work-in- progress if any, include costs of conversion and other cost incurred in bringing the inventories to their present location and condition.

6. Revenue recognition

Income and expenditure are recognised and accounted on accrual basis, except in case of significant uncertainties.

7. Retirement benefits

There were no employees on the role of Company, hence, no provision towards gratuity, superannuation, and other retirement liabilities has been made.

8. Foreign currency transactions

Transaction denominated in foreign currency if any, are recorded using the exchange rate prevailing at the date of transaction. Assets and liabilities denominated in foreign currency as at balance sheet date are converted at the exchange rates prevailing at that date. Exchange differences other than those relating to acquisition of fixed assets are recognised in the profit and loss account. Exchange differences relating to purchase of fixed assets are adjusted to carrying cost of fixed assets.

9. Expenditure during construction period

Expenditure during construction period are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

10. Research and development

Revenue expenses in respect of research and development are charged to profit and loss account and capital expenditure of such nature are added to the cost of fixed assets in the year in which they are incurred.

11. Taxation

Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the Income Tax Act,1961. In view of the previous years carry forward losses, management is of the view that not to make any provision for tax as well as fringe benefit tax.

The deferred tax for timing differences between the book profits and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. In view of the losses provision for deferred tax has not been provided.

12. Provision and contingent liabilities

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made

13. Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

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Mar 31, 2010

1. System of accounting

The accounts are prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern though the business was not carried on during the year.

2. Fixed assets

Fixed assets are stated at cost less accumulated depreciation. Land in the hands of company is shown at revalued amount.

3. Depreciation

a) Depreciation on fixed assets is provided on straight-line method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956.

b) Depreciation on assets added/disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/disposal.

c) Continuous process plants as defined in Schedule XIV to the Companies Act, 1956 have been considered.

4. Investments

Investments of the long-term nature are stated at cost less diminution in value wherever the decline is other than a temporary decline.

5. Inventories

Inventories if any, are valued at lower of the cost and estimated net realisable value. Cost of inventories is computed on weighted average basis. Finished goods and work-in-progress if any, include costs of conversion and other cost incurred in bringing the inventories to their present location and condition.

6. Revenue recognition

Income and expenditure are recognised and accounted on accrual basis, except in case of significant uncertainties.

7. Retirement benefits

There were no employees on the roll of company, hence not provision towards gratuity, superannuation and other retirement liabilities has been made.

8. Foreign currency transactions

Transaction denominated in foreign currency if any, are recorded using the exchange rate prevailing at the date of transaction. Assets and liabilities denominated in foreign currency as at balance sheet date are converted at the exchange rates prevailing at that date. Exchange differences other than those relating to acquisition of fixed assets are recognised in the profit and loss account. Exchange differences relating to purchase of fixed assets are adjusted to carrying cost of fixed assets.

9. Expenditure during construction period

Expenditure during construction period are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

10. Research and development

Revenue expenses in respect of research and development are charged to profit and loss account and capital expenditure of such nature are added to the cost of fixed assets in the year in which they are incurred.

11. Taxation

Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the Income Tax Act,1961. In view of the previous years carry forward losses management is of the view that not to make any provision for tax as well as fringe benefit tax.

The deferred tax for timing differences between the book profits and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. In view of the losses provision for deferred tax has not been provided.

12. Provision and contingent liabilities

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made

13. Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

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Mar 31, 2008

1. System of accounting

The accounts are prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern though the business was not carried on during the year.

2. Fixed assets

Fixed assets are stated at cost less accumulated depreciation.

3. Depreciation

a) Depreciation on fixed assets is provided on straight-line method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956

b) Depreciation on assets added/disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/disposal.

c) Continuous process plants as defined in Schedule XIV to the Companies Act, 1956 have been considered.

4. Investments

Investments of the long-term nature are stated at cost less diminution in value wherever the decline is other than a temporary decline.

5. Inventories

Inventories if any, are valued at lower of the cost and estimated net realisable value. Cost of inventories is computed on weighted average basis. Finished goods and work-in-progress if any, include costs of conversion and other cost incurred in bringing the inventories to their present location and condition.

6. Revenue recognition

Income and expenditure are recognised and accounted or basis, except in case of significant uncertainties.

7. Retirement benefits

The company is contributing towards gratuity liability of employees and superannuation liability of certain employees under the scheme of Life Insurance Corporation of India (LIC).

During the continuation of service of the employees, the gratuity liability as per actuarial-valuation is provided for if it is in excess of the fund available with L!C and provision for leave encashment is made on the basis of actuarial valuation. In other cases, liability is provided for on accrual basis.

8. Foreign currency transactions

Transaction denominated in foreign currency if any, are recorded using the exchange rate prevailing at the date of transaction. Assets and liabilities denominated in foreign currency as at balance sheet date are converted at the exchange rates prevailing at that date.

Exchange differences other than those relating to acquisition of fixed assets are recognised in the profit and loss account. Exchange differences relating to purchase of fixed assets are adjusted to carrying cost of fixed assets.

9. Expenditure during construction period

Expenditure during construction period are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

10. Research and development

Revenue expenses in respect of research and development are charged to profit and loss account and capital expenditure of such nature are added to the cost of fixed assets in the year in which they are incurred.

11. Taxation

Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961. The management is of the view that company is not suppose to be liable for fringe benefit tax hence not provided.

The deferred tax for timing differences between the book profits and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. In view of the losses provision for deferred tax has not been provided.

12. Provision and contingent liabilities

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably .will not, requires an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made

13. Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

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Mar 31, 2007

1.System of accounting

The accounts are prepared on the basis of historical cost convention, in accordance will the applicable accounting standards and on the accounting principles of agoing concern though the business was not carried en during the year.

2.Fixed assets ¯

Fixed assets are stated at cost less accumulated depreciation.

3.Depreciation

a) Depreciation on fixed assets is provided on straight-line method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956.

b) Depreciation on assets added/disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/disposal.

c) Continuous process plants as defined in Schedule XIV to the Companies Act, 1956 have been considered.

4. Investments

Investment of the long-term nature are slated at cost less diminution in value wherever the decline is other than a temporary decline

5 lnventories

Inventories if any, are valued at lower of the cost and estimated net realisable value. Cost of inventories is computed on weighted average basis. Finished goods and work-in- progress if any, include costs of conversion and other cost incurred in bringing the inventories to their present location and condition.

6. Revenue recognition

Income and expenditure are recognised and accounted on accrual basis, except in case of significant uncertainties.

7. Retirement benefits

The company is contributing towards gratuity liability of employees and superannuation liability of certain employees under the scheme of Life Insurance Corporation of India (LIC). During the continuation of service of the employees, the gratuity liability as per actuarial valuation is provided for if it is in excess of the fund available with LIC and provision for leave encashment Is made on the basis of actuarial valuation. In other cases, liability is provided for on accrual basis.

8. Foreign currency transactions

Transaction denominated in foreign currency if any, are recorded using the exchange rate prevailing at the date of transaction. Assets and liabilities denominated in foreign currency as at balance sheet date are converted at the exchange rates prevailing at that date. Exchange differences other than those relating to acquisition of fixed assets are recognised in the profit and loss account. Exchange differences relating to purchase of fixed assets are adjusted to carrying cost of fixed assets.

9. Expenditure during construction period

Expenditure during construction period are included under capital work in progress an the same is allocated to the respective fixed assets on the completion of construction

10. Research and development

Revenue expenses in respect of research and development are charged to profit am loss account and capital expenditure of Such nuture are added to the to the cost of fixed asset in the year in which they are incurred.

11. Taxation

Provision for current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961. The management is of the view that company is not suppose to be liable for fringe benefit tax hence no provided.

The deferred tax for timing differences between the book profits and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantial) enacted as of the balance sheet date. Deferred lax assets arising from timing difference: are recognized to the extent there is virtual certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. In view of the losses provision lor deferred tax has not been provided

12. Provision and contingent liabilities

The Company creates a provision when there is a present obligation as a result of a pas event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Adisclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made

13. Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset If such recoverable amount of the asset is less than Us carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

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Mar 31, 2005

1. System of accounting

The accounts are prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern.

2. Fixed assets

Fixed assets are stated at cost less accumulated depreciation,

3. Depreciation

a) Depreciation on fixed assets is provided on straight-line method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956.

b) Depreciation on assets added/disposed off during the year has been provided for on pro.rata basis with reference to the month of addition/disposal.

c) Continuous process plants as defined In Schedule XIV to the Companies Act, 1956 have been considered on technical assessment and depreciation provided accordingly.

4. Investments

Investments of the long-term nature are stated at cost less diminution in value wherever the decline is other than a temporary decline.

5. Inventories

Inventories are valued at lower of the cost and estimated net realisable value. Cost of inventories is computed on weighted average basis. Finished goods and work-in-progress include costs of conversion and other cost incurred in bringing the inventories to their present location and condition.

6. Revenue recognition

Income and expenditure are recognised and accounted on accrual basis, except in case of significant uncertainties.

7. Retirement benefits

The company is contributing towards gratuity liability of employees and superannuation liability of certain employees under the scheme of Life Insurance Corporation of India (LIC). During the continuation of service of the employees, fifty gratuity liability as per actuarial valuation is provided for if it is in excess of the fund available with LIC and provision for leave encashment is made on fifty basis of actuarial valuation. In other cases, liability is provided for on accrual basis.

8. Foreign currency transactions

Transaction denominated in foreign currency are recorded using the exchange rate prevailing at the date of transaction. Assets and. liabilities denominated in foreign currencyas at balance sheet date are converted at the exchange rates prevailing at that date. Exchange differences other than those relating to acquisition of fixed assets are recognised in the profit and loss account. Exchange differences relating to purchase of fixed assets are adjusted to carrying cost of fixed assets.

9. Expenditure during construction period

Expenditure during construction period are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

10. Research and development

Revenue expenses in respect of research and development are charged to profit and loss account and capital expenditure of such nature are added to the cost of fixed assets in the year in which they are incurred.

11. Taxation

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

The deferred tax for timing differences between the book profits and tax profits for the year is accounted for using Hie tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

12. Provision and contingent liabilities

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made

13. Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

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Mar 31, 2003

1. SYSTEM OF ACCOUNTING

The company adopts the accrual concept in the preparation of the accounts based on historical cost convention.

1 Fixed Aseets

Fixed -assets are stated at cost.

2 Investments

Investments of the long-term nature are stated at cost less diminution In value wherever the decline Is other than a temporary decline.

3 Depreciation

a) Depreciation on fixed assets Is provided on straight-line method at the rates and In the manner specified in schedule XIV to the Companies Act 1956.

b) Depreciation on assets added/disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/disposal.

c) Continuous process plants - defined In schedule XIV to the Companies Act, 1956 have been considered on technical assessment and depreciation provided accordingly.

4. Inventories

Invantories are valued at lower of the cost and estimated net realisable value. Cost of Inventories Is computed on weighted average basis. Finished goods and work-in-progress Include costs of conversion and other cost Incurred In bringing the Inventories to their present location and condition.

5. Revenue Recognition

Income and expenditure are recognized and accounted on accrual basis, except In case of significant uncertainties.

6. Retirement Benefits

The company Is contributing towards gratuity liability of employees and super animation liability of certain employees under the scheme of Life Insurance Corporation of India (LIC). During the continuation of service of the employees, the gratuity liability as per actuarial valuation is provided for If It Is In excess of the fund available with LIC and provision for leave encashment is made on the basis of actuarial valuation. In other cases liability is provided for on accrual basis.

7. Foreign Currency Transactions

Transaction denominated in foreign currency are recorded using the exchange rate prevailing at the dale of transaction. Assets and liabilities denominated in foreign currency as at balance sheet date are converted at the exchange rates prevailing at that date. Exchange differences other than those relating to acquisition of fixed assets are recognised In the profit and loss account. Exchange differences relating to purchase of fixed assets are adjusted to carrying cost of fixed assets.

8. Expenditure during Construction Period

Expenditure during construction period are Included under capital work In progress and the same Is allocated to the respective fixed assets on the completion of construction.

9. Research and Development

Revenue expenses In respect of Research and development are charged to profit and loss account and capital expenditure of such nature are added to the cost of fixed assets In the year In which they ere Incurred.

10. Contingent Liability

Contingent liabilities not provided for are disclosed by way of notes.

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Mar 31, 2002

1. SYSTEM OF ACCOUNTING

The company adopts the accrual concept in the preparation of the accounts based on historical cost convention.

2. FIXED ASSETS

Fixed assets are stated at cost.

3. INVESTMENTS

Investments of the long-term nature are staled at cost less diminution in value wherever the decline is other than a temporary decline

4. DEPRECIATION

a) Depreciation on fixed assets is provided on straight line method at the rates and in the manner specified in schedule XIV of the Companies Act 1956.

b) Depreciation on assets added/disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/disposal.

c) Continuous process plants as defined in schedule XIV to the Companies Act, 1956 have been considered on technical assessment and depreciation provided accordingly.

5. Inventories

Inventories are valued at lower of the cost and estimated net realisable value.

Cost of inventories is computed on weighted average basis.

Finished goods and work-in-progress include costs of conversion and other cost incurred in bringing the inventories to their present location and condition.

6. Revenue Recognition

Income and expenditure are recognized and accounted on accrual base, except in case of significant uncertainties.

7. Retirement Benefits

The company is contributing towards gratuity liability of employees and super annuation liability of certain employees under the scheme of Life Insurance Corporation of India (LIC). During the continuation of service of the employees, the gratuity liability as per actuarial valuation is provided for if it is in excess of the fund available with LIC and provision for leave encashment is made on the basis of actuarial valuation. In other cases liability is provided for on accrual basis.

8. Foreign Currency Transactions

Transaction denominated in foreign currency are recorded using the exchange rate prevailing at the date of transaction. Assets and liabilities denominated in foreign currency as at balance sheet date are converted at the exchange rates prevailing at that date. Exchange differences other than those relating to acquisition of fixed assets are recognised in the profit and toss account. Exchange differences relating to purchase of fixed assets are adjusted to carrying cost of fixed assets.

9. Expenditure during Construction Period

Expenditure during construction period are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

10. Research and Development

Revenue expenses in respect of Research and development are charged to profit and loss account and capital expenditure of such nature are added to the cost of fixed assets in the year in which they are incurred.

11. Contingent Liability

Contingent liabilities not provided for are disclosed by way of notes.

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Mar 31, 2001

A. SIGNIFICANT ACCOUNTING POLICIES

1. SYSTEM OF ACCOUNTING

The company adopts the accrual concept in the preparation of the accounts based on historical cost conventional.

2. FIXED ASSETS

Fixed assets are stated at cost

3. INVESTMENTS

Investments being of the long term nature and stated at cost or below cost.

4. DEPRECIATION

a. Depreciation on fixed assets is provided on straight line method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956.

b. Depreciation on assets added/disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/disposal.

c. Continous process plants as defined in schedule XIV to the Companies Act 1956 have been considered on technical assessment and depreciation provided accordingly

5. INVENTORIES

Inventories are valued at lower of the cost and estimated net realisable value.

Cost inventories is computed on weighted average basis.

Finished goods and work-in-progress include costs of conversion and other cost incurred in bringing the inventories to their present location & condition Proceeds in respect of sale of raw materials/stores and credited to the respective heads.

6. RETIREMENT BENEFITS

Gratuity & Superannuation: The Company is contributing towards gratuity liability of employees & supernnation liability of certain employees under the scheme of Life Insurance Corporation of India (LIC). The gratuity liability as per acturial valuation is provided for, if it is in excess of the fund available with LIC. Provision for leave encashment has been made on the basis of acturial valuation.

7. FOREIGN CURRENCY TRANSATIONS

Transaction denominated in foreign currency are recorded using the exchange rate prevailing at the date of transaction. Assets and liabilities denominated in foreign currency as at balance sheet date are converted at the exchange rates prevailing at the date. Exchange differences other than those relating to acquisition of fixed assets are recognised in the profit & Loss account. Exchange differences relating to purchase of fixed assets are adjusted to carrying cost fixed assets.

8. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure during construction period are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

9. RESEARCH & DEVELOPMENT

Revenue expenses in respect of research & development are charged to profit & loss account and capital expenditure of such nature are added to the cost of fixed assets in the year in which they are incurred.

10. CONTINGENT LIABILITY

Contingent liabilities not provided for are disclosed by way of notes.

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Mar 31, 2000

1. SYSTEM OF ACCOUNTING

The company adopts the accrual concept in the preparation of the accounts based on historical cost convention.

2. FIXED ASSETS

Fixed assets are stated at cost.

3. INVESTMENTS

Investments being of the long term nature are stated at cost or below cost.

4. DEPRECIATION

a) Depreciation on fixed assets is provided on straight line method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956.

b) Depreciation on assets added/disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/disposal.

c) Continuous process plants as defined in schedule XIV of the Companies Act, 1956 have been considered on technical assessment and depreciation provided accordingly.

5. INVENTORIES

Inventories are valued at lower of the cost and estimated net realisable value.

Cost of inventories is computed on weighted average basis.

Finished goods and work-in-progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Proceeds in respect of sale of raw materials / stores are credited to the respective heads.

6. RETIREMENT BENEFITS

Gratuity & Superannuation : The company is contributing towards gratuity liability of employees and superannuation liability of certain employees under the scheme of Life Insurance Corporation of India (LIC). The gratuity liability as per actuarial valuation is provided for, if it is in excess of the fund available with LIC. Provision for leave encashment has been made on the basis of accrual valuation.

7. FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are recorded using the exchange rate prevailing at the date of transaction. Asset and liabilities denominated in foreign currency as at Balance Sheet date are converted at the exchange rates prevailing at that date. Exchange difference other than those relating to acquisition of fixed assets are recognised in the profit and loss account. Exchange differences relating to purchase of fixed assets are adjusted to carrying cost of fixed assets.

8. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure during construction period are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

9. RESEARCH & DEVELOPMENT

Revenue expenses in respect of Research & Development are charged to profit and loss account and capital expenditure of such nature are added to the cost of fixed assets in the year in which they are incurred.

10. CONTINGENT LIABILITY

Contingent liabilities not provided for are disclosed by way of notes.

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Mar 31, 1999

1. SYSTEM OF ACCOUNTING

The company adopts the accrual concept in the preparation of the accounts based on historical cost concept.

2. FIXED ASSETS

Fixed assets are stated at cost.

3. INVESTMENTS

Investments being of the long term nature are stated at or below cost.

4. DEPRECIATION

a) Depreciation on fixed assets is provided on straight line method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956.

b) Depreciation on assets added/disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/ disposal.

c) Continuous process plants as defined in schedule XIV of the Companies Act, 1956 have been considered on technical assessment and depreciation provided accordingly.

5. INVENTORIES

Inventories are valued as under

a) Finished goods : At lower of cost or net realisable value.

b) Store and spares : At cost

c) Raw materials : At cost

d) Material in process : At estimated cost

e) Waste : At net realisable value

f) Loose tools : At cost

6. RETIREMENT BENEFITS

Gratuity & Superannuation : The company is contributing towards gratuity liability of employees and superannuation liability of certain employees under the scheme of Life Insurance Corporation of India (LIC). The gratuity liability on per actuarial valuation is provided for, if it is in excess of the fund available with LIC. Provision for leave encashment has been made on the basis of actuarial valuation.

7. FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are recorded using the exchange rate prevailing at the date of transaction. Assets and liabilities denominated in foreign currency an at Balance Sheet date are converted at the exchange rates prevailing at that date. Exchange differences other than those relating to acquisition of fixed assets are recognised in the Profit & Loss Account. Exchange differences relating to purchase of fixed assets are adjusted to carrying cost affixed assets.

8. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure during construction period are included under capital work in progress and the some is allocated to the respective fixed assets on the completion of construction.

9. RESEARCH & DEVELOPMENT

Revenue expenses in respect of Research & Development are charged to profit & loss account and capital expenditure of such nature are added to the cost of fixed assets in the year in which they are incurred.

10. CONTINGENT LIABILITY

Contingent liabilities not provided for are disclosed by way of notes.

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Mar 31, 1998

1. SYSTEM OF ACCOUNTING

The company adopts the accrual concept in the preparation of the accounts based on historical cost concept.

2. FIXED ASSETS

Fixed assets are stated at cost.

3. INVESTMENTS

Investments being of the long term nature are stated at Cost or below cost.

4. DEPRECIATION

a. Depreciation on fixed assets is provided on straight line method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956.

b. Depreciation an assets added/disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/disposal.

c. Continuous process plants as defined in schedule XIV of the Companies Act, 1956 has been considered an technical assessment and depreciation provided accordingly.

5. INVENTORIES Inventories are valued as under : a. Finished goads : At lower of cost or net realisable value

b. Stores and spares : At cost c. Raw materials : At cost

d. Material-in-process : At estimated cost

e. Waste : At net realisable value f. Loose tools : At cost

6. RETIREMENT BENEFITS

Gratuity & Superannuation :

The company is contributing towards gratuity liability of employees and superannuation liability of certain employees under the scheme of Life Insurance Corporation of India (LIC). The gratuity liability as per actuarial valuation is provided far, if it is in excess of the fund available with LIC. Provision for leave encashment has been made on the basis of actuarial valuation.

7. FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are recorded using the exchange rate prevailing at the date of transaction. Assets and liabilities denominated in foreign currency as at Balance Sheet date are converted at the exchange rates prevailing at that date. Exchange differences other than those relating to acquisition of fixed assets are recognised in the Profit & Lass Account. Exchange differences relating to purchase affixed assets are adjusted to carrying cast of fixed assets.

8. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure during construction period are included under capital work in progress and the same is allocated to the respective fixed assets an the completion of construction.

9. RESEARCH & DEVELOPMENT

Revenue expenses in respect of Research & Development are charged to Profit & Lass account and capital expenditure of such nature are added to the cost of fixed assets in the year in which they are incurred.

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Mar 31, 1997

1.SYSTEM OF ACCOUNTING

The company adopts the accrual concept in the preparation at the accounts based on historical cost concept

2. FIXED ASSETS

Fixed assets are stated at cast

3. INVESTMENTS

Investments being at the long term nature are stated at Cost/Book value.

4. DEPRECIATION

a) Depreciation on fixed assets is provided on straight line method at the rates and in the manner specified in schedule XIV at the Companies Art, 1956 read with the relevant circulars issued by the Department at Company Affairs from time to time.

d) Depreciation on assets added/dispossed off during the year has been provided for on pro-rata basis with reference to the month of addition/ disposal.

c) Continuous process plants as defined in schedule XIV to the Companies Act, 1956 have been considered an technical assessment and depreciation provided accordingly.

5. INVENTORIES

Inventories are valued as under

a) Finished goods : At lower at cost or net realisable value

b) Stores and spares : At cost

c) Raw materials : At cost

d) Material-in-process : At estimated cast

e) Waste : At net realisable value

f) Loose tools : At cost

6. RETIREMENT BENEFITS

Gratuity & Superannuation : The company is contributing towards gratuity liability of employees and superannuation liability of certain employees under the scheme at Life Insurance Corporation at India (LIC). The gratuity liability as per actuarial valuation is provided for, if it is in excess at the fund available with LIC. Provision for leave encashment has been made on the basis of actuarial valuation.

FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currency are recorded using the exchange rate prevailing at the date at transaction. Assets end liabilities denominated in foreign currency as at Balance Sheet date are converted at the exchange rates prevailing at that date. Exchange differences other than those relating to acquisition at fixed assets are recognized in the Profit & Loss Account. Exchange differences relating to purchase of fixed assets are adjusted to carrying cost of fixed assets.

EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure during construction period are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

9. RESEARCH & DEVELOPMENT

Revenue expenses in respect at Research & development are charged to profit & Loss account and capital expenditure at such nature are added to the cost at fixed assets in the year in which they are incurred.

10. CONTINGENT LIABILITY

Contingent liability not provided for are disclosed by way of notes.

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Mar 31, 1996

1. SYSTEM OF ACCOUNTING

The company adopts the accrual concept in the preparation of the accounts based on historical cost concept.

2. FIXED ASSETS

Fixed assets are stated at cost.

3.INVESTMENTS

Investments being of the long term nature are stated at cost/book value.

4. DEPRECIATION

a) Depreciation on fixed assets is provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 read with the relevant circulars issued by the Department of Company Affairs from time to time.

b) Depreciation on assets added/disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/disposal.

c) Continuous process plants as defined in Schedule XIV of the Companies Act, 1956 have been considered on technical assessment and depreciation provided accordingly.

5. INVENTORIES

Inventories are valued as under

a) Finished goods : At lower of cost or net realisable value. b) Stores and spares : At cost

c) Raw materials : At cost

d) Material in process : At estimated cost

e) Waste : At net realisable value

f) Loose tools : At cost

6. RETIREMENT BENEFITS

The company is contributing towards gratuity liability of employees and superannuation liability of certain employees under the scheme of Life Insurance Corporation of India (LIC). The gratuity liability as per actuarial valuation is provided for if it is in excess of fund available with LIC. Provision for leave encashment has been made on the basis of actuarial valuation.

7. RESEARCH & DEVELOPMENT

Revenue expenses in respect of research & development are charged to profit & loss account and capital expenditure of such nature are added to the cost of fixed assets in the year in which they are incurred.

8. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure during construction period are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

9. CONTINGENT LIABILITY

Contingent liability not provided for are disclosed by way of notes.

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Mar 31, 1995

1.SYSTEMS OF ACCOUNTING

The company adopts the accrual concept in the preparation of the accounts based on historical cost concept.

2. FIXED ASSETS

Fixed assets are stated at cost.

3. INVESTMENTS

Investments are stated at cost/book value.

4. DEPRECIATION

a) Depreciation on fixed assets is provided on straight line method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956 read with the relevant circulars issued by the Department of Company Affairs from time to time.

b) Depreciation on the assets added/disposed off during the year has been provided for on pro-rata basis with reference to the month of addition/disposal.

c) Continuous process plants as defined in schedule XIV to the Companies Act. 1956 have been considered on technical assessment and depreciation provided accordingly.

5. INVENTORIES

Inventories are valued as under

a) Finished goods : At lower of cost or net realisable value. b) Stores and Spares : At cost c) Raw materials : At cost d) Material in process : At estimated cost e) Waste : At net realisable value f) Loose tools : At cost

6. TREATMENT OF RETIREMENT BENEFITS

Gratuity & Superannuation : The company is contributing towards gratuity liability of employees & superannuation liability of certain employees under the scheme of Life Insurance Corporation of India. The gratuity liability as per actuarial valuation is provided for if it is in excess of the fund balance.

7. EXPENDITURE DURING CONSTRUCTION PERIOD

Expenditure during construction period are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

8. RESEARCH & DEVELOPMENT

Revenue expenses in respect of Research & Development are charged to profit & loss account and capital expenditures of such nature are added to the cost of fixed assets in the year in which they are incurred.

9. CONTINGENT LIABILITY

Contingent liability not provided for are disclosed by way of notes.

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Mar 31, 1994

System of Accounting : The company adopts the accrual concept in the preparation of the accounts.

Fixed Assets : Fixed assets are stated at cost.

Investments : Investments are reflected at cost/book value.

Depreciation : Depreciation on fixed assets is provided on straight line method as per the rates given in schedule XIV of the companies act, 1956.

Depreciation on the assets added/disposed off during the year has been provided on pro rata basis with reference to the month of addition/disposal.

Inventories : Inventories are valued as under : Finished goods : At lower of cost or net realisable value. Stores and spares : At cost. Raw materials : At cost. Material in process : At cost. Waste : At net realisable value.

Treatment of Retirement Benefits : Gratuity & Superannuation : The company is contributing towards gratuity liability and superannuation liability of certain employees under the scheme of Life Insurance Corporation of India.

Expenditure during construction period : Expenditure during construction period are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

Research & Development : Revenue expenses are charged to profit & loss account and capital expenditures are added to the cost of fixed assets in the year in which they are incurred.

Contingent Liabilities : Contingent liabilities not provided for are disclosed by way of notes.

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Mar 31, 1993

Systems of accounting : The company adopts the accrual concept in the preparation of the accounts.

Fixed assets are stated at cost.

Investments are reflected at cost/book value.

Depreciation : Depreciation on fixed assets is provided on straight line method as per the rates given in Schedule XIV of the companies act, 1956.

Depreciation on the assets added/disposed off during the year has been provided on pro-rata basis with reference to the month of addition/disposal.

Inventories are valued as under :

Finished goods : At lower of cost or net realisable value. Stores and spares : At cost. Raw materials : At cost. Materials in process : At estimated cost. Loose tools : At cost. Waste : At net realisable value. Shares/Debentures : At lower of cost or market value. in trade

Retirement Benefits :

Gratuity : The company is contributing towards gratuity liability under the scheme of Life Insurance Corporation of India.

Superannuation : The company is contributing towards superannuation fund to Life Insurance Corporation of India, for certain employees.

Treatment of expenditure during construction period : Expenditure during construction period are included under capital work in progress and the same is allocated to the respective fixed assets on the completion of construction.

Research & Development : Revenue expenses are charged to profit & loss account and capital expenditures are added to the cost of fixed assets in the year in which they are incurred.

Contingent liabilities : Contingent liabilities not provided for are disclosed by way of notes.