Accounting Policies of Sri KPR Industries Ltd. Company

Mar 31, 2024

IV. SIGNIFICANT ACCOUNTING POLICIES

A. System of Accounting:

i. The company follows mercantile system of accounting and recognizes Income and Expenditure on accrual basis.

ii. The Financial statements have been prepared in all material aspects with Indian Accounting Standards (Ind AS) prescribed under the provisions of the Companies Act, 2013.

iii. Financial statements are prepared on historical cost basis and as a going concern.

B. Revenue Recognition:

i. Sale of goods is recognized at the point of dispatch of goods to customers and Gross Sales are inclusive of duties and taxes. On commencement of GST, sales are net of GST.

ii. Income from Sale of Wind Power is recognized based on units measured and certified by the concerned State Authorities.

iii. Dividends are recognized as income of the year in which the same are received.

C. Property, Plant & Equipment and Depreciation

i. Property, Plant & Equipment acquired by the company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any.

ii. The acquisition cost includes the purchase price (excluding refundable taxes) and expenses directly attributable to the asset to bring it to the site and in the working condition for intended use.

iii. Depreciation is provided in accordance with Schedule II of the Companies Act, 2013 in respect of the remaining useful life of the asset as far as the existing assets are concerned. In respect of additions, depreciation is provided on the basis of the useful life of the assets as prescribed by Schedule II of Companies Act, 2013.

D. Investments

Non-current investments are stated at cost. Traded shares are stated at cost or market value whichever is lower. Mutual Fund investments are stated at lower of cost or fair value

E. Inventories

Stocks are valued at cost or realizable value whichever is lower. Cost of finished goods for this purpose is arrived at on absorption costing.

F. Staff Benefits

Provident Fund Contributions and other staff benefits are accounted on accrual basis. The company is in the process of ascertaining appropriate Group Gratuity Scheme for subscription and the premium / contributions towards the same will be charged to revenue as and when paid. Pending the finalization of the scheme gratuity payments if any, made to the employees is charged to revenue as and when paid.

G. Borrowing Costs:

Costs in respect of borrowings for acquiring / constructing fixed investments, relating to the period they are operational, are capitalized to such investments. Borrowing costs relating to period after the commencement of operations of the project are charged to revenue.

H. Current and Deferred Tax

Accounting treatment in respect of current and deferred tax is in accordance with Indian Accounting Standard 12 (Ind AS 12): “Income Taxes ".

I. Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal / external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the asset''s net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to the present value using the weighted average cost of capital. In carrying out such exercise, due effect is given to the requirements of Schedule II of the Companies Act, 2013.

J. Earnings Per Share (EPS):

This is calculated by dividing the net profit after tax (PAT) for the period attributable to equity shareholders, by number of shares outstanding at the end of the year. In case there are any changes in the equity during the year, EPS would be calculated on the weighted average number of shares outstanding during the period including adjustments of bonus issue, if any.

B. Dividends

Dividends on equity shares are subject to approval at the annual general meeting and are not recognized as a liability as at the year end. Dividends, as and when paid are deducted from accumulated free reserves.

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Mar 31, 2016

A. System of Accounting

i. The company follows mercantile system of accounting and recognizes Income and Expenditure on accrual basis.

ii. The Financial statements are prepared in all material aspects with Accounting Standards prescribed under the provision of the Companies Act. 2013.

iii. Financial statements are prepared on historical cost basis and as a going concern.

B. Revenue Recognition

i. Sale of goods is recognized at the point of dispatch of goods to customers and Gross Sales are inclusive of duties and taxes.

ii. Income from Sale of Wind Power is recognized on the basis of units measured and certified by the concerned State Authorities.

iii. Dividends are recognized as income of the year in which the same are received.

C. Tangible Fixed Assets and Depreciation

i. Tangible Fixed Assets acquired by the company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any.

ii. The acquisition cost includes the purchase price (excluding refundable taxes) and expenses directly attributable to the assets to bring it to the site and in the working condition for intended use.

iii. Depreciation is provided on the basis of the useful life of the assets as prescribed by Schedule II of Companies Act, 2013.

D. Investments

Non-current investments are stated at cost. Traded shares are stated at cost or market value whichever is lower.

E. Inventories

Stocks are valued at cost or realizable value whichever is lower. Cost of finished goods for this purpose is arrived at on absorption costing basis and is inclusive of excise duty.

F. Staff Benefits

Provident Fund Contributions and other staff benefits are accounted on accrual basis. The company is in the process ascertaining appropriate Group Gratuity Scheme for subscription and the premium / contributions towards the same will be charged to revenue as and when paid. Pending the finalization of the scheme gratuity payments if any. made to the employees is charged to revenue as and when paid.

G. Deferred Taxation

Accounting treatment in respect of deferred taxation is in accordance with Accounting Standard 22: “Accounting for Taxes on income “ issued by the institute of Chartered Accountants of India.

H. Impairment of Assets

The carrying amounts of assets are reviewed at each 8alance Sheet date, if there is any indication of impairment based on internal / external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the asset''s net selling price and value in use. In assessing the value in use. the estimated future cash flows are discounted to the present value using the weighted average cost of capital. In carrying out such exercise, due effect is given to the requirements of Schedule II of the Companies Act. 2013.

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Mar 31, 2015

A. System of Accounting:

i. The company follows mercantile system of accounting and recognizes Income and Expenditure on accrual basis.

ii. The Financial statements have been prepared in all material aspects with Accounting Standards prescribed under the provisions of the Companies Act, 2013.

iii. Financial statements are prepared on historical cost basis and as a going concern.

B. Revenue Recognition :

i. Sale of goods is recognized at the point of despatch of goods to customers and Gross Sales are inclusive of duties and taxes.

ii. Income from Sale of Wind Power is recognized on the basis of units measured and certified by the concerned State Authorities.

iii. Dividends are recognized as income of the year in which the same are received.

C. Tangible Fixed Assets and Depreciation

i. Tangible Fixed Assets acquired by the company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any.

ii. The acquisition cost includes the purchase price (excluding refundable taxes) and expenses directly attributable to the asset to bring it to the site and in the working condition for intended use.

iii. Depreciation is provided in accordance with Schedule II of the Companies Act, 2013 in respect of the remaining useful life of the asset as far as the existing assets are concerned. In respect of additions, depreciation is provided on the basis of the useful life of the assets as prescribed by Schedule II of Companies Act, 2013.

iv. During the year the company had carried out technical evaluation of the useful life of the existing assets and applied the method of depreciation as prescribed by Schedule II of the Companies Act, 2013. The adjustment as a result of the re-computation is made to the opening balance of profit and loss account.

v. The residential units received by the company towards its share in the development agreement in respect of the land belonging to the company, entered into an earlier year, are treated as fixed assets and no depreciation is charged on the same.

vi. In the current year the application of Schedule II method is made for the first time and the difference arising on account of reworking the useful life of the assets is adjusted to the opening balance of reserves.

D. Investments

Non-current investments are stated at cost. Traded shares are stated at cost or market value whichever is lower.

E. Inventories

Stocks are valued at cost or realizable value whichever is lower. Cost of finished goods for this purpose is arrived at on absorption costing basis and is inclusive of excise duty.

F. Staff Benefits

Provident Fund Contributions and other staff benefits are accounted on accrual basis. The company is in the process ascertaining appropriate Group Gratuity Scheme for subscription and the premium / contributions towards the same will be charged to revenue as and when paid. Pending the finalization of the scheme gratuity payments if any, made to the employees is charged to revenue as and when paid.

G. Deferred Taxation

Accounting treatment in respect of deferred taxation is in accordance with Accounting Standard 22: "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

H. Impairment of Assets :

The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal / external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the asset''s net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to the present value using the weighted average cost of capital. In carrying out such exercise, due effect is given to the requirements of Schedule II of the Companies Act, 2013.

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Mar 31, 2014

A. System of Accounting:

i. The company follows mercantile system of accounting and recognizes Income and Expenditure on -accrual basis,

ii. The Financial statements have been prepared in all material aspects with accounting standards as notified in the Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956.

iii. Financial statements are prepared on historical cost basis and as a going concern.

B. Revenue Recognition :

Sale of goods is recognized at the point of despatch of goods to customers and Gross Sales are inclusive of Excise Duty and net of Value Added Tax.

ii. Income from Sale of Wind Power is recognized on the basis of units measured and certified by the concerned Electricity Board Authorities.

iii. Dividends are recognized as income of the year in which the same are declared and received.

C. Income Recognition on Development of Land

i. The Company has entered into an Agreement for development of its land into a residential apartment complex on a built-up area sharing basis.

ii The income arising out of the transaction is first recognised on delivery of residential units by the developer.

iii. Profit, if any, arising out of the sale of the units falling to the share of the company is recognized upon sale of the residential unit.

iv. The unsold units are shown under fixed assets.

D. Tangible Fixed Assets and Depreciation

i. Tangible Fixed Assets acquired by the company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any.

ii. The acquisition cost includes the purchase price (excluding refundable taxes) and expenses directly '' attributable to the asset to bring it to the site and in the working condition for intended use.

iii. Depreciation is provided on straight line basis at rates and in the manner specified in schedule XIV to the Companies Act, 1956, unless then the use of higher rate or an accelerated charge is justified through technical estimates.

E. Investments

Non-current investments are stated at cost. Traded shares are stated at cost or market value whichever is lower.

F. Inventories

Stocks are valued at cost or realizable value whichever is lower. Cost of finished goods for this purpose is arrived at on absorption costing basis and is inclusive of excise duty.

G. Staff Benefits

Provident Fund Contributions and other staff benefits are accounted on accrual basis. The company is in the process ascertaining appropriate Group Gratuity Scheme for subscription and the premium / contributions towards the same will be charged to revenue as and when paid.

H. Deferred Taxation

Accounting treatment in respect of deferred taxation is in accordance with Accounting Standard 22: "Accounting for Taxes on Income" issued by the Chartered Accountants of India.

I. Preliminary Expenses ;

Expenses incurred in connection with the increase in authorized capital of the company and amalgamation are written off in equal installments over a period of five years and the unwritten off portion is included in non-current assets

J. Currency Fluctuation -

Gain / Loss arising on account of FCNB Loan borrowed by the company is treated as income / expense in the profit and loss account.

K. Contingent Liability. : Disputed Income Tax liability. Rs.32.50 lacs. The first appeal of the company before the Hon''ble Commissioner of Income Tax (Appeals) has been allowed in favor of the company. A second appeal has been preferred by the department to the Hon''ble Income Tax Appellate Tribunal, Hyderabad.

L. Previous Year''s figures have been regrouped wherever considered necessary.

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Mar 31, 2013

A. Amalgamation of Sri Venkateswara Pipes Limited

Sri Venkateswara Pipes Limited (hereinafter referred to as ''SVPL''), is a company engaged in the business of Manufacture of Asbestos Cement Pressure Pipes and Couplings and undertakes pipe laying works.

Pursuant to scheme of amalgamation (hereinafter referred to as ''the scheme'') of the erstwhile SVPL with Sri KPR Industries Limited (hereinafter referred to as ''the company''), as sanctioned by the Hon''ble High Court of Andhra Pradesh, on March 11, 2013, the assets, liabilities and reserves of SVPL stand transferred and vested in the company with effect from April 1, 2010. As per the scheme the appointed date is April 1, 2010 and the effective date is July 2, 2013.

The accounts of the company for the year ended March 31, 2013, have been audited and results announced pursuant to Clause 41 of the listing agreement vide report of the Auditors dated May 30, 2013. In view of the subsequent event of the scheme taking effect as above, the financial statements of the company for the year ended March 31, 2013 are restated to give effect to the scheme. The scheme has accordingly been given effect to in these accounts.

The amalgamation has been accounted for under the "pooling of interest" method as prescribed by Accounting Standard - 14, "Accounting for Amalgamations" issued by the Institute of Chartered Accountants of India. Accordingly the assets, liabilities and reserves of erstwhile SVPL as at April 01, 2010, along with subsequent additions and / or deletion thereto, up to March 31, 2012 have been transferred in accordance with the said scheme. The profits of SVPL during the period April 01, 2010 to March 31, 2012 have been transferred to the General Reserve of the company without opening the accounts of the company for the previous years. Current year transactions are duly incorporated in the books of the company. The cash flow statement is presented duly incorporating the effect of the merger.

As at April 01, 2010 total share capital of SVPL stood at Rs.4,44,06,840/- divided into 44,40,684 equity shares of Rs.10 each. Out of this total share capital of SVPL, the company held 3,00,000 equity shares of Rs.10 each aggregating to Rs.30,00,000/- which stand cancelled upon of sanction of the scheme. The shareholders of SVPL (other than the company) have been issued seven shares in the company for every two shares held in SVPL aggregating to Rs. 14,49,23,950/- divided into 1,44,92,395 shares of Rs.10/- each. The difference between the amount recorded as the share capital issued and the amount of share capital of SVPL on the appointed date (net of shares held by the company) is .adjusted in the General Reserves and the intercompany transactions stand cancelled. There is no difference in the accounting policies followed by the company and SVPL

In view of the above stated accounting treatment, the current year''s figures in the financial statements as well as the cash flow statement are not strictly comparable to those of the previous year.

B. System of Accounting:

i.The company follows mercantile system of accounting and recognizes Income and Expenditure on accrual basis.

ii.The Financial statements have been prepared in all material aspects with accounting standards as notified in the Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956.

iii. Financial statements are prepared on historical cost basis and as a going concern.

C. Revenue Recognition :

i. Sale of goods is recognized at the point of despatch of goods to customers and Gross Sales are inclusive of Excise Duty and net of Value Added Tax.

ii. Income from Sale of Wind Power is recognized on the basis of units measured and certified by the concerned Electricity Board Authorities.

iii. Dividends are recognized as income of the year in which the same are declared

iv. Income from traded shares is recognized upon sale of the same and until then the shares on hand are valued at cost or market value whichever is lower,

D. Income Recognition on Development of Land

i. The Company has entered into a Agreement for development of its land into a residential apartment complex on a built-up area sharing basis.

ii. The. income arising out of the transaction is first recognised on delivery of residential units by the developer.

iii. Profit, if any, arising out of the sale of the units falling to the share of the company is recognized upon sale of the residential unit.

iv. The unsold units are shown under fixed assets.

E. Tangible Fixed Assets and Depreciation

i. Tangible Fixed Assets acquired by the company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any.

ii. The acquisition cost includes the purchase price (excluding refundable taxes) and expenses directly attributable to the asset to bring it to the site and in the working condition for intended use.

iii. Depreciation is provided on straight line basis at rates and in the manner specified in schedule XIV to the Companies Act, 1956, unless then the use of higher rate or an accelerated charge is justified through technical estimates.

F. Investments Non-current investments are stated at cost. Traded shares are stated at cost or market value whichever is lower.

G. Inventories

Stocks are valued at cost or realizable value whichever is lower. Cost of finished goods for this purpose is arrived at on absorption costing basis and is inclusive of excise duty.

H. Staff Benefits

Provident Fund Contributions and other staff benefits are accounted on accrual basis. The company is in the process ascertaining appropriate Group Gratuity Scheme for subscription and the premium / contributions towards the same will be charged to revenue as and when paid.

I. Deferred Taxation

Accounting treatment in respect of deferred taxation is in accordance with Accounting Standard 22: "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

J. Preliminary Expenses :

Expenses incurred in connection with the increase in authorized capital of the company and merger of the transferor company are written off in equal installments over a period of five years and the unwritten off portion is included in non-current assets

K. Currency Fluctuation

Gain / Loss arising on account of FCNB Loan borrowed by the company is treated as income / expense in the profit and loss account.

L. Contingent Liability. : Disputed Income Tax liability. Rs.32.50 lacs. The first appeal of the company before the Hon''ble Commissioner of Income Tax (Appeals) has been allowed in favor of the company. A second appeal has been preferred''by the department to the Hon''ble Income Tax Appellate Tribunal, Hyderabad.

M. Previous year''s figures have been regrouped wherever considered necessary. However in view of the accounting for the Merger of Sri Venkateswafa Pipes Limited with the company, (as explained in paragraph A. above) the previous year''s figures are strictly not comparable with those of the current year.

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Mar 31, 2012

A System of Accounting:

i. The company follows mercantile system of accounting and recognizes income and Expenditure on accrual basis.

ii. The Financial statements have been prepared in all material aspects with accounting standards as notified in the Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956.

iii. Financial statements are prepared on historical cost basis and as a going concern.

B. Revenue Recognition :

Income from traded shares is recognized upon sale of the same and the stock of shares as at the year end is valued at cost of acquisition / market value, whichever is lower.

C. Tangible Fixed Assets and Depreciation

i. Tangible Fixed Assets acquired by the company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any.

ii. The acquisition cost includes the purchase price (excluding refundable taxes) and expenses directly attributable to the asset to bring it to the site and in the working condition for intended use.

iii. Depreciation is provided on straight line basis at rates and in the manner specified in schedule XIV to the Companies Act, 1956, unless then the use of higher rate or an accelerated charge is justified through technical estimates.

D. Investments

Non-current investments are stated at cost. Traded shares are stated at cost or market value which ever is lower.

E. Inventories

Stocks are valued at cost are market whichever is less.

F. Staff Benefits

Provident Fund Contributions and other staff benefits are accounted on accrual basis.

GL Deferred Taxation:

Accounting treatment in respect of deferred taxation is in accordance with Accounting Standard 22: "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

H. Preliminary Expenses :

Expenses incurred in connection with the increase in authorized capital of the company are written off in equal installments over a period of five years and the unwritten off portion is included in non-current assets

I. Contingent Liabilities - Nil

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Mar 31, 2011

A BASIS OF ACCOUNTING: The financial statements are prepared under historical cost convention on accrual basis.

B FIXED ASSETS: The fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All direct expenses relating to construction or acquisition are capitalized as cost of fixed assets.

C DEPRECIATION : Depreciation on fixed assets is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. .

D INVESTMENTS: Non trade investments are stated at cost of acquisition. Trade investments are carried as stock in trade and are stated at lower of cost or realizable value.

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Mar 31, 2010

A BASIS OF ACCOUNTING: The financial statements are prepared under historical cost convention on- accrual basis.

B FIXED ASSETS: The fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All direct expenses relating to construction or acquisition are capitalized as cost of fixed assets. In respect of assets disposed off during the year the net result being profit, is transferred to P & L account

C DEPRECIATION : Depreciation on fixed assets is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. In respect of the additions made during the year, depreciation is charged on pro-rata basis.

D INVESTMENTS: Non trade investments are stated at cost of acquisition. Trade investments are carried as stock in trade and are stated at lower of cost or realizable value.

E SEGMENT ACCOUNTING POLICIES OF SOFTWARE DIVISION.

SOFTWARE INCOME AND COSTS: Billed man hours and amounts receivable as per Software development contracts / orders are considered as income. Unbilled man hours in respect of software contracts and man hour costs in respect of software products under development are considered as work in progress. These will be adjusted to profit and loss account upon billing / completion of the product as the case may be.

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Mar 31, 2009

A BASIS OF ACCOUNTING: The financial statements are prepared under historical cost convention on accrual basis.

B FIXED ASSETS: The fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All direct expenses relating to construction or acquisition are capitalized as cost of fixed assets.

C DEPRECIATION : Depreciation on fixed assets is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. In respect of the additions made during the year, depreciation is charged on pro-rata basis.

D INVESTMENTS: Non trade investments are stated at cost of acquisition. Trade investments are carried as stock in trade and are stated at lower of cost or realizable value.

E SALES TAX DEFERMENT : Interest free sales tax deferment, to the extent availed by the company, is shown under the head "Unsecured loans", in the Balance Sheet.

F INVENTORIES: These are valued at lower of cost or net realizable value. Cost of finished goods for this purpose is inclusive of excise duty and is arrived at on absorption costing basis.

G SEGMENT ACCOUNTING POLICIES OF SOFTWARE DIVISION.

SOFTWARE INCOME AND COSTS: Billed man hours and amounts receivable as per software development contracts / orders are considered as income. Unbilled man hours in respect of software contracts and man hour costs in respect of software products under development are considered as work in progress. These will be adjusted to profit and loss account upon billing / completion of the product as the case may be.

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Mar 31, 2008

A BASIS OF ACCOUNTING:

The financial statements are prepared under historical cost convention on accrual basis.

B FIXED ASSETS:

The fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All direct expenses relating to construction or acquisition are capitalized as cost of fixed assets.

C DEPRECIATION :

Depreciation on fixed assets is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. In respect of the additions made during the year, depreciation is charged on pro-rata basis.

D INVESTMENTS:

Non trade investments are stated at cost of acquisition. Trade investments are carried as stock in trade and are stated at lower of cost or realizable value.

E SALES TAX DEFERMENT :

Interest free sales tax deferment, to the extent availed by the company, is shown under the head "Unsecured loans", in the Balance Sheet.

F INVENTORIES :

These are valued at lower of cost or net realizable value. Cost of finished goods for this purpose is inclusive of excise duty and is arrived at on absorption costing basis.

G SEGMENT ACCOUNTING POLICIES OF SOFTWARE DIVISION

SOFTWARE INCOME AND COSTS: Billed man hours and amounts receivable as per software development contracts / orders are considered as income. Unbilled man hours in respect of software contracts and man hour costs in respect of software products under development are considered as work in progress. These will be adjusted to profit and loss account upon billing / completion of the product as the case may be.

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Mar 31, 2007

A BASIS OF ACCOUNTING : The financial statements are prepared under historical cost convention on accrual basis.

B FIXED ASSETS The fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All direct expenses relating to construction or acquisition are capitalised as cost of fixed assets.

C DEPRECIATION : Depreciation on fixed assets is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. In respect of the additions made during the year, depreciation is charged on pro-rata basis.

D INVESTMENTS : Non trade investments are stated at cost of acquisition Trade investments are carried as stock in trade and are stated at lower of cost or realizable value.

E SALES TAX DEFERMENT : Interest free sales tax deferment, to the extent availed by the company, is shown under the head "Unsecured loans", in the Balance Sheet.

F INVENTORIES : These are valued at lower of cost or net realizable value. Cost of finished goods for this purpose is inclusive of excise duty and is arrived at on absorption costing basis.

G SEGMENT ACCOUNTING POLICIES OF SOFTWARE DIVISION

SOFTWARE INCOME AND QOSTS : Billed man hours and amounts receivable as per software development contracts / orders are considered as income. Unbilled man hours in respect of software contracts and man hour costs in respect of software products under development are considered as work in progress These will be adjusted to profit and loss account upon billing / completion of the product as the case may be.

In the opinion of the Board, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and these are unsecured, but considered good.

The company is in the process of receiving confirmations from the debtors and creditors.

Consumption of stores and spares and other consumables have been ascertained on the basis of physical verification carried out on March 31, 2007.

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Mar 31, 2006

A BASIS OF ACCOUNTING : The financial statements are prepared under historical cost convention on accrual basis.

B FIXED ASSETS :The fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All direct expenses relating to construction or acquisition are capitalised as cost of fixed assets.

C DEPRECIATION : Depreciation on fixed assets is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. In respect of the additions made during the year, depreciation is charged on pro-rata basis.

D INVESTMENTS : Non trade investments are stated at cost of acquisition. Trade investments are carried as stock in trade and are stated at lower of cost or realizable value.

E SALES TAX DEFERMENT : Interest free sales tax deferment, to the extent availed by the company, is shown under the head "Unsecured loans", in the Balance Sheet.

F INVENTORIES : These are valued at lower of cost or net realizable value. Cost of finished goods for this purpose is inclusive of excise duty and is arrived at on absorption costing basis.

G AMORTIZATION OF EXPENSES :

a. Preliminary and share issue expenses are amortized over a period of ten years in equal installments.

b. Deferred revenue expenditure representing initial expenses for the establishment of the Software division are amortized in five equal annual installments beginning with the year 2000-01.

H SEGMENT ACCOUNTING POLICIES OF SOFTWARE DIVISION.

SOFTWARE INCOME AND COSTS : Billed man hours and amounts receivable as per software development contracts/orders are considered as income. Unbilled man hours in respect of software contracts and man hour costs in respect of software products under development are considered as work in progress. These will be adjusted to profit and loss account upon billing/completion of the product as the case may be.

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Mar 31, 2005

A BASIS OF ACCOUNTING The financial statements are prepared under historical cost convention on accrual basis

B FIXED ASSETS -The fixed assets are stated at cost of acquisition of construction less accumulated depreciation All direct expenses relating to construction or acquisition are capitalised as cost of fixed assets

C DEPRECIATION Depreciation on fixed assets is charged on Straight Line Method al the rates and in the manner prescribed in Schedule XIV to the Companies Act 1956 In respect of the additions made during the year. depreciation is charged on pro-rata basis

D INVESTMENTS Non trade investrnents are stated at cost of aquisition Trade investments are carried as stock in trade and are stated at lower of cost or realizable Value.

E SALES TAX DEFERMENT Interest free sales tax determent, to the extent availed by the company, up to March 31, 2005, is shown under the head Unsecured loans, in he Balance Sheet.

F INVENTORIES These are valued at lower of cost or net realizable value Cost of finished goods for this purpose is inclusive of excise duty and is arrived at on absorption costing basis.

G AMORTIZATION OF EXPENSES

a. Preliminary and share issue expenses are amortized over a period of ten years in equal installments.

b. Deferred revenue expenditure represeting initial expenses for (he establishment of the Software division are amortized in five equal annual installment beginning with the year 2000-01

H SEGMENT ACCOUNTING POLICIES OF SCF TWARE DIVISION

SOFTWARE INCOME AND COSTS Billed man hours and amounts receivable as per software development contracts/orders are considered as income. Unbilled man hoys in respect of software contracts and man hour costs in respect of software products under development are considered as work in progress These will be adjusted to profit and loss account upon billing/completion of the product as the case may be.

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Mar 31, 2003

A BASIS OF ACCOUNTING : The financial statements are prepared under historical cost convention on accrual basis.

B FIXED ASSETS : The fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All direct expenses relating to construction or acquisition are capitalised as cost of fixed assets.

C DEPRECIATION : Depreciation on fixed assets is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. In respect of the additions made during the year, depreciation is charged on pro-rata basis.

D INVESTMENTS : Non trade investments are stated at cost of acquisition. Trade investments are carried as stock in trade and are stated at lower of cost or realizable value.

E SALES TAX DEFERMENT : Interest free sales tax deferment, to the extent availed by the company, up to March 31, 2003, is shown under the head "Unsecured loans", in the Balance Sheet.

F INVENTORIES : These are valued at lower of cost or net realizable value. Cost of finished goods for this purpose is inclusive of excise duty and is arrived at on absorption costing basis.

G AMORTIZATION OF EXPENSES :

a. Preliminary and share issue expenses are amortized over a period of ten years in equal installments.

b. Deferred revenue expenditure representing initial expenses for the establishment of the Software division are amortized in five equal annual installments beginning with the year 2000-01.

H. SEGMENT ACCOUNTING POLICIES OF SOFTWARE DIVISION.

SOFTWARE INCOME AND COSTS : Billed man hours and amounts receivable as per software development contracts/orders are considered as income. Unbilled man hours in respect of software contracts and man hour costs in respect of software products under development are considered as work in progress. These will be adjusted to profit and loss account upon billing/completion of the product as the case may be.

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Mar 31, 2002

A. BASIS OF ACCOUNTING: The financial statements are prepared under historical COST convention on accrual basis.

B. FIXED ASSETS: The fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All direct expenses relating to construction or acquisition are capitalised as cost of fixed assets.

C. DEPRECIATION: Depreciation on fixed assets Is charged on Straight Line Method at the rates and in the manner prescribed In Schedule XIV to the Companies Act, 1956. In respect of she additions made during the year, depreciation Is charged on pro-rata basis.

D. INVESTMENTS: Non trade investments are stated at cost of acquisition. Trade investments are carried as stock In trade and are stated at lower of cost or realizable value.

E. SALES TAX DEFERMENT: Interest free sales tax deferment, to the extent availed by the company, up to March 31, 2002, is shown under the head "Unsecured loans", In the Balance Sheet.

F. INVENTORIES: These are valued at lower of cost or net realizable value. Cost for this purpose is inclusive of excise duty and is arrived at on absorption costing basis.

G. AMORTIZATION OF EXPENSES:

a. Preliminary and share issue expenses are amortized over a period of ten years in equal Installments.

b. Deferred revenue expenditure representing initial expenses for the establishment of the Software division are amortized in five equal annual installments beginning with the year 2000-01.

H. DEFERRED TAXATION: The company has adopted Accounting Standard 22 (AS - 22) issued by the institute of Chartered Accountants of India which Is applicable to the accounting years beginning on or after April 1, 2001. The adjustments with respect to deferred taxation relating to earlier years have been made to the credit balance in Profit and Loss account In Reserves and Surplus.

I. SEGMENT ACCOUNTING POLICIES OF SOFTWARE DIVISION SOFTWARE INCOME AND COSTS: Billed man hours and amounts receivable as per software development contracts/orders are considered as Income Unbilled man hours in respect of software contracts and man hour costs in respect of software products under development are considered as work In progress. These will be adjusted to profit and loss account upon billing/completion of the product as the case may be.

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Mar 31, 2001

A. BASIS OF ACCOUNTING : The financial statements are prepared under historical cost convention on accrual basis.

B. FIXED ASSETS :The fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All direct expenses relating to construction or acquisition are capitalised as cost of fixed assets.

C. DEPRECIATION : Depreciation on fixed assets is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. In respect of the additions: made during the year, depreciation is charged on pro-rata basis.

D. INVESTMENTS : Non trade investments are stated at cost of acquisition. Trade investments are carried as stock in trade and are stated at lower of cost or realizable value. Material reduction in the value of the traded shares as compared to the cost of acquisition is provided in the books.

E. SALES TAX DEFERMENT : Interest free sales tax deferment, to the extent availed by the company, up to March 31, 2001, is shown under the head "Unsecured loans", in the Balance Sheet.

F. INVENTORIES : These are valued at lower of cost or net realizable value. Cost for this purpose is inclusive of excise duty and is arrived at on absorption costing basis.

G. SOFTWARE INCOME AND COSTS : Billed man hours and amounts receivable as per software development contracts/orders are considered as income. Unbilled man hours in respect of software contracts and man hour costs in respect of software products under development are considered as work in progress. These will be adjusted to profit and loss account upon billing/completion of the product as the case may be.

H. AMORTIZATION OF EXPENSES :

a. Preliminary and share issue expenses are amortized over a period of ten years in equal installments.

b. Deferred revenue expenditure representing initial expenses for the establishment of the Software division are amortized in five equal annual installments beginning with the year 2000-01.

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Mar 31, 2000

1) Significant accounting policies

A. BASIS OF ACCOUNTING : The financial statements are prepared under historical cost convention on accrual basis.

B. FIXED ASSETS : The fixed assets are stated at cost of acquisition or construction accumulated depreciation. All direct expenses relating to construction or acquisition are capitalised as cost of fixed assets.

C. DEPRECIATION :

I) Depreciation on fixed assets is charged on Straight Line Method at the rates in the manner prescribed in Schedule XIV to the Companies Act, 1956. In respect of the additions made during the year, depreciation is charged on pro-rata basis.

II) In respect of assets that have undergone major repairs and renewals during the year depreciation has been charged on straight line method so as to write off the cost of the renewal/major repair of the asset over the remaining useful life of the asset.

D. INVESTMENTS : Non trade investments are stated at cost of acquisition. Trade investments are carried as stock in trade and are stated at lower of cost or realisable value. Material reduction in the value of the traded shares as compared to the cost of acquisition is provided in the books.

E. SALES TAX DEFERMENT : Interest free sales tax deferment, to the extent availed by the company, up to March 31, 2000, is shown under the head "Unsecured loans", in the Balance Sheet.

F. INVENTORIES : These are valued at lower of cost or net realizable value. Cost for this purpose is inclusive of excise duty and is arrived at on absorption costing basis. During the year the company has changed the method of valuation of inventories in accordance with the Accounting Standard-2 and Guidance Note on treatment of Excise Duty issued by the Institute of Chartered Accountants of India. The inventories are stated inclusive of excise duty and as a result the profit for the year is over stated by Rs. 7.38 lacs.

G. AMORTISATION OF EXPENSES :

a. Preliminary and share issue expenses are amortized over a period of ten years in equal installments.

b. Initial expenses for the establishment of the Software division have been included in deferred revenue expenditure. These expenses are amortized in five years equal annual installments beginning with the year following the year in which such expenditure in incurred.

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Mar 31, 1999

1. Significant Accounting Policies

A. BASIS OF ACCOUNTING : The financial statements are prepared under historical cost convention on accrual basis.

B. FIXED ASSETS : The fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All direct expenses relating to construction or acquisition are capitalised as cost of fixed assets.

C. DEPRECIATION :

I) Depreciation on fixed assets is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. In respect of the additions made during the year, depreciation is charged on pro-rata basis.

II) In respect of assets that have undergone major repairs and renewals during the year, depreciation has been charged on straight line method so as to write off the cost of the renewal / major repair of the asset over the remaining useful life of the asset.

D. INVESTMENTS : These are stated at cost of acquisition.

E. SALES TAX DEFERMENT : Interest free sales tax deferment, to the extent availed by the Company, up to March 31, 1999, is shown under the head "Unsecured Loans", in the Balance Sheet.

F. INVENTORIES : These are valued at lower of cost or net realizable value. Stock of finished goods at branches and consignment agents are valued inclusive of excise duty. Cost for this purpose is ascertained on direct costing basis.

G. AMORTISATION OF EXPENSES : Preliminary and share issue expenses are amortized over a period of ten years in equal instalments. Deferred revenue expenditure is amortized in five equal annual instalments.

H. INCOME TAX : The tax payable by the Company under Section 115JA of the Income Tax Act, 1956, to the extent paid as advance tax, is considered as a current asset. The balance, payable, if any, will be treated as current asset as and when paid. By virtue of the provisions of Section 115JAA, the Company has a credit for the amount so paid for five successive assessment years. The tax paid and carried forward as a current asset will be adjusted to the Profit and Loss account in the year in which such credit expires.

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Mar 31, 1998

1. BASIS OF ACCOUNTING : The financial statements are prepared under historical cost convention on accrual basis. State Subsidy, however, is taken to the credit of reserves and surplus in the year of receipt.

2. FIXED ASSETS : The fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All direct expenses relating to construction or acquisition are capitalised as cost of fixed assets.

3. DEPRECIATION : Depreciation on fixed assets is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. In respect of the additions made during the year, depreciation is charged on pro-rata basis.

4. INVESTMENTS : These are stated at cost of acquisition.

5. SALES TAX DEFERMENT : Interest free sales tax deferment, to the extent availed by the company, up to March 31, 1998, is shown under the head "Unsecured loans", in the Balance Sheet.

6. INVENTORIES : These are valued at lower of cost or net realizable value. Stock of finished goods at branches and consignment agents are valued inclusive of excise duty. Cost for this purpose is ascertained on direct costing basis.

7. AMORTISATION OF EXPENSES : Preliminary and share issue expenses are amortized over a period of ten years in equal installments. Deferred revenue expenditure is amortized in five equal annual installments.

8. INCOME TAX : The tax payable by the company under section 115JA of the Income Tax Act, 1956, to the extent paid as advance tax, is considered as a current asset. The balance, payable, if any, will be treated as current asset as and when paid. By virtue of the provisions of section 115JAA, the company has a credit for the amount so paid for five successive assessment years. The tax paid and carried forward as a current asset will be adjusted to the profit and loss account in the year in which such credit expires.

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Mar 31, 1997

1. BASIS OF ACCOUNTING :

The financial statements are prepared under historical cost convention on accrual basis. State Subsidy however, is taken to the credit of reserves and surplus in the year of receipt.

2. FIXED ASSETS :

The fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All direct expenses relating to construction or acquisition are capitalised as cost of Fixed Assets.

3. DEPRECIATION :

Depreciation on fixed assets is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. In respect of the additions made during the year depreciation is charged on pro-rata basis.

4. INVESTMENTS :

These are stated at cost of acquisition.

5. SALES TAX DEFERMENT :

Interest free sales tax deferment, to the extent availed by the company, up to March 31, 1997, is shown under the head Unsecured loans", in the Balance Sheet.

6. INVENTORIES :

These are valued at lower of cost or net realizable value. Stock of finished goods at branches are valued inclusive of excise duty. Cost for this purpose is ascertained on Direct costing basis.

7. AMORTISATION OF EXPENSES :

Preliminary and share issue expenses are amortized over a period of ten years in equal installments. Deferred revenue expenditure is amortized in five equal annual installments.

8. EXPORT BENEFITS :

Deemed export benefits in terms of duty free import of raw materials that have been accrued, have been transferred to the cost of raw materials in the current year i.e., the year in which the imported raw materials are consumed.

9. INCOME TAX :

The tax payable by the company under section 115JA of the Income Tax Act, 1956, to the extent paid as advance tax, is considered as a current asset. The balance, payable, if any, will be treated as current asset as and when paid. By virtue of the provisions of section 115JAA, the company has a credit for the amount so paid for five successive assessment years. The tax paid and carried forward as a current asset will be adjusted to the profit and loss account in the year in which such credit expires.

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Mar 31, 1996

A. Fixed Assets : The fixed assets are estimated at cost.

b. Depreciation : Depreciation on fixed assets is provided on Straight Line Basis at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956. in respect of additions depreciation is provided on pro rata basis.

c.Inventories are valued at lower of cost or net realisable value. Stock of finished goods at branches are valued inclusive of excise duty.

Preliminary and shares Issue Expenses and Deferred Revenue Expenditure are written off in ten and five equal annual instalments respectively commencing from the current financial year,

e. Investments are valued at cost.

f. Deemed Export benefits in terms of duty free import of raw materials are accounted on accrual basis pending actual import of raw material.

y. State Subsidy is being taken to the credit of Reserves and Surplus as and when the amount sanctioned is received. Out of the sanctioned amount of Rupees 15.00 lakhs, Rupees 8.75 lakhs has been received during the year

h.Interest free Sales Tax Deferment to the extent availed by the company and to which the company has provided indemnity and the Directors have provided personal guarantees has been shown as unsecured loan.

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Mar 31, 1995

A. Fixed Assets : The Fixed Assets are stated at cost. B. Depreciation : Depreciation on assets is provided on straight line Basis at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956. C. Inventories are valued at lower of Cost or Net Realisable Value. D. Preliminary and Share issue expenses and Deferred Revenue Expenditure will be written off over a period of ten years and five years respectively, commencing from financial year 1995-96. E. Investments are valued at cost. F. Expenditure during construction period is included under capital work in progress and the same is allocated to the respective fixed assets on the completion of the construction period. G. Deemed Export benefits in terms of duty free import of Raw materials are accounted on accrual basis pending actual import of raw material.