Accounting Policies of Stanpacks (India) Ltd. Company

Mar 31, 2024

1. STATEMENT OF MATERIAL ACCOUNTING POLICIES:

1.1 Basis of Preparation of Financial Statements:

The financial statements have been prepared on accrual basis under the historical cost
convention except for certain financial instruments that are measured at fair values at the
end of each reporting period, as explained in the accounting policies below. Historical
cost is generally based on the fair value of the consideration given in exchange for
goods and services. Fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the
measurement date. In estimating the fair value of an asset or a liability, the Company takes
into account the characteristics of the asset or liability if market participants would take
those characteristics into account when pricing the asset or liability at the measurement
date. Fair value for measurement and/or disclosure purposes in these financial statements
is determined on above basis, except for lease transactions that are within the scope of
Ind AS 17 - Leases, and measurements that have some similarities to fair value but are
not fair value, such as net realizable value in Ind AS 2 - Inventories or value in use in Ind
AS 36 - Impairment of Assets.

In addition, for financial reporting purposes, fair value measurements are categorized into
Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurement in its entirety,
which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are
observable for the asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

All the assets and liabilities have been classified as current and non-current as per
the Company’s normal operating cycle and other criteria as set out in Schedule III of
the Companies Act, 2013. Based on the nature of products and the time between the
acquisition of assets and processing and their realization in cash and cash equivalent, the
Company has ascertained its operating cycle to be 12 months for the purpose of current
- non-current classification of assets and liabilities.

The statement of cash flows has been prepared under indirect method, whereby profit
or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals
or accruals of past or future operating cash receipts or payments and items of income
or expense associated with investing or financing cash flows. The cash flows from
operating, investing and financing activities of the Company are segregated. The
Company considers all highly liquid investments that are readily convertible to known
amounts of cash and are subject to an insignificant risk of changes in value to be cash
equivalents.

The material accounting policy information related to preparation of the standalone
financial statements have been discussed in the respective notes.

1.2 Use of judgment, estimates and assumptions:

The preparation of financial statements requires management to make estimates and
judgements that affect the reported amount of assets, liabilities and related disclosures
concerning the items involved as well as contingent assets and liabilities on the date of the
financial statements and the reported amount of income and expense during the reporting
period. Although these estimates are based on the management’s best knowledge of
current events and actions, uncertainty about these assumptions and estimates could
result in the outcomes, requiring a material adjustment in the carrying amounts of assets
or liabilities in future periods. Difference between the actual results and estimates are
recognized in the period in which the results are known or materialized.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimates are revised and
in any future periods affected.

The Company uses the following critical accounting judgements, estimates and
assumptions in preparation of its standalone financial statements:

a. Employee Benefits

The cost of the defined benefit plan and other post-employment benefits and the
present value of such obligation are determined using actuarial valuations. An
actuarial valuation involves making various assumptions that may differ from actual
developments in the future. These include the determination of the discount rate, future
salary increases, mortality rates and attrition rate. Due to the complexities involved in
the valuation and its long-term nature, a defined benefit obligation is highly sensitive
to changes in these assumptions. All assumptions are periodically reviewed at each
reporting date.

b. Provisions and contingent liabilities

The Company estimates the provisions that have present obligations as a result of
past events and it is probable that outflow of resources will be required to settle the
obligations. These provisions are reviewed at the end of each reporting period and are
adjusted to reflect the current best estimates. The Company uses significant judgements
to assess contingent liabilities. Contingent liabilities are disclosed when there is a
possible obligation arising from past events, the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Company or a present obligation that arises from past
events where it is either not probable that an outflow of resources will be required to
settle the obligation or a reliable estimate of the amount cannot be made. Contingent
assets are neither recognised nor disclosed in the standalone financial statements.

c. Provision for income tax and deferred tax assets

The Company uses judgements based on the relevant rulings in the areas of allocation
of revenue, costs, allowances and disallowances which is exercised while determining
the provision for income tax. A deferred tax asset is recognised to the extent that it
is probable that future taxable profit will be available against which the deductible
temporary differences and tax losses can be utilised. Accordingly, the Company
exercises its judgement to reassess the carrying amount of deferred tax assets at the
end of each reporting period.

d. Impairment of financial and non-financial assets

The impairment provision for financial assets is based on assumptions about risk of
default and expected losses. The Company uses judgement in making these assumptions
and selecting the inputs to the impairment calculation, based on Company’s past
history, existing market conditions as well as forward looking estimates at the end
of each reporting period. The Company assesses at each reporting date whether there
is an indication that a Non-financial asset may be impaired. If any indication exists,
or when annual impairment testing for an asset is required, the Company estimates
the asset’s recoverable amount which is higher of an asset’s or Cash generating unit
(CGU) fair value less costs of disposal and its value in use. Where the carrying amount
of an asset or CGU exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount

1.3 Property, Plant and Equipment:

Items of property, plant and equipment are initially measured at cost. Subsequent
measurement is done at cost less accumulated depreciation and accumulated impairment
losses, if any. Cost of acquisition is inclusive of taxes (except GST), duties, freight,
installation allocated incidental expenditure during construction / acquisition and
necessary adjustments in the year of final settlement. The cost of property, plant
and equipment also includes the present value of obligations arising, if any, from
decommissioning, restoration and similar liabilities related to the same.

Cost of an item of property, plant and equipment includes estimated costs of dismantling
and removing the item and restoring the site on which it is located. The present value of
those costs (decommission or restoration costs) is capitalized as an asset and depreciated
over the useful life of the asset.

Borrowing costs that are directly attributable to the acquisition/construction of an asset
is capitalized as part of the cost of that asset when it is probable that they will result in
future economic benefits to the enterprise and the costs can be measured reliably.

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

Assets costing less than INR 5,000 are capitalized and charged to the statement of profit
and loss in the year of purchase by retaining a residual value of INR 1. Any gain or loss
on disposal of an item of property, plant and equipment is recognized in the statement
of profit and loss.

Machinery spares

Initial spares purchased along with property, plant and equipment are capitalized and
depreciated along with the asset.

Spares purchased subsequent to commission of the asset which meet the requirements
set out in Ind AS 16 are treated as property, plant & equipment. Other spare parts are
carried as inventory and recognized in the statement of profit and loss on consumption.
Capital work-in-progress

The cost of self-constructed assets includes the cost of materials & direct labor, any other
costs directly attributable to bringing the assets to the location and condition necessary
for it to be capable of operating in the manner intended by management and borrowing
costs.

1.4 Intangible assets

Intangible asset are recognised when it is probable that the future economic benefits that
are attributable to the asset will flow to the entity and the cost of asset can be measured
reliably.

Capital expenditure on purchase and development of identifiable assets without physical
substance is recognized as intangible assets in accordance with principles given under
Ind AS-38 - Intangible Assets.

Internally generated intangible asset, excluding capitalized development cost, are not
capitalized and the related expenditure is reflected in statement of profit & loss in the
period in which the expenditure is incurred.

The useful lives of intangible asset are assed as either finite or indefinite. The amortization
period and the amortization method for an intangible asset with a finite useful life are
reviewed at least at the end of each reporting period. Changes in the expected useful
life or the expected pattern of consumption of future economic benefits embodied in the
assets are considered to modify the amortization period or method, as appropriate, and
are treated as changes in accounting estimates.

Intangible assets with indefinite useful lives, if not amortised, but are tested for impairment
either individually or at the cash generating unit level. The assessment of indefinite
useful life is reviewed annually to determine whether the indefinite life continues to be
supportable. Currently there are no intangible assets with indefinite useful life.

Gain or losses arising from de-recognition of an intangible asset are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and
are recognised in the statement of profit & loss when the asset is derecognised.

1.5 Depreciation:

As prescribed under part C of schedule II of Companies Act, 2013, Depreciation is
systematically allocated over the useful life of an asset. The depreciation is provided on
the Straight Line Method from the beginning of the month in which the asset is ready
for use. Depreciation on additions to assets or on sale / disposal of assets is calculated on
pro rata basis from the month of such addition or up to the month of such sale / disposal
as the case may be.

1.6 Revenue Recognition:

Revenue from sale of manufactured goods, including scrap, is recognized on transfer of
all significant risks and rewards of ownership to the buyer. The amount recognized as
sale is net of, trade and quantity discounts on accrual basis.

Ind AS 115 introduces a new framework of five step model for the analysis of Revenue
transactions. The model specifies that revenue should be recognized when (or as) an
entity transfer control of goods or services to a customer at the amount to which the
entity expects to be entitled. Further the new standard requires enhanced disclosures
about the nature, amount, timing, and uncertainty of revenue and cash flows arising from
the entity’s contracts with customers. Revenue is recognized upon transfer of control of
promised products or services to customers in an amount that reflects the consideration
we expect to receive in exchange for those products or services.

The Company has evaluated the requirement of the amendment and the impact on the
standalone financial statements. The effect on adoption of Ind AS 115 was insignificant
Revenue from supply of services if any is recognized as and when the services has been
provided and recoverability accrues.

Interest on deployment of surplus funds is recognized using the time proportionate
method based on underlying interest rates.

1.7 Inventories:

Inventories are carried at the lower of cost and net realizable value. The comparison of
cost and net realizable value is made on an item by item basis.

Cost comprises of purchase price and all incidental expenses incurred in bringing the
inventory to its present location and condition. The method of determination of cost is
as follows:

a. Raw materials, valued at cost net of CENVAT.

b. Finished goods at lower of cost or net realizable value and inclusive of excise duty
(till 30^th June 2017). With the Advent of GST which has replaced Excise Duty along
with other indirect Taxes, Closing Stock of Finished Goods doesn’t include excise
duty or GST (Since the same is on Sale of Goods).

c. Goods in Transit valued at cost excluding excise duty and taxes.

d. Stock of scrap at estimated realizable value.

e. Stores and spares - landed cost on a first in first out method

The provision for inventory obsolescence is assessed annually and is provided as and when
considered necessary.

1.8 Foreign Exchange Transactions:

Foreign currency transactions are recorded at the rates of exchange prevailing on the
dates of the respective transaction. Exchange differences arising on foreign exchange
transactions settled during the year are recognized in the Statement of profit and loss
of the year, except that exchange differences related to acquisition of fixed assets from
a country outside India are adjusted in the carrying amount of the related fixed assets.
Monetary assets and liabilities denominated in foreign currencies as at the balance sheet
date are translated at the closing exchange rates on that date; the resultant exchange
differences are recognized in the statement of profit and loss except those related to
acquisition of fixed assets from a country outside India which are adjusted in the carrying
amount of the related fixed assets.

---

Mar 31, 2015

1.1. Basis Of Preparation Of Financial Statements:

The Financial statements have been prepared on accrual basis under the historical cost convention and in accordance with generally accepted accounting principles in India and materially comply with the Mandatory Accounting Standards notified by the Central Government of India under the Companies (Accounting Standards) Rules, 2006, as amended, and with the relevant provisions of the Companies Act, 2013.

All the assets and liabilities have been classified as current and non-current as per the Company's normal operating cycle and other criteria as set out in Schedule III of the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets and processing and their realization in cash and cash equivalent, the Company has ascertained its operating cycle to be 12 months for the purpose of current - non-current classification of assets and liabilities.

During the financial year 2014-15, the Company has recorded a Net loss of Rs. 5.89 lakhs as against the net loss of Rs. 103.10 lakhs incurred during the previous year. As mentioned in note no. 4 to the Notes to Financial Statements, the additional depreciation cost incurred due to estimation of depreciation as per Schedule II of the Companies Act, 2013 has resulted in the loss for the year and the accumulated losses have eroded 78% of networth.

The Management is confident that the Company will be able to generate profits in years to come and meet its financial obligation as they arise. Based on the increase in the performances, the increse in productivity and the marketing capability, working capital support from the banker and the promoters during the year 2014-15 and the anticipated big orders during the year 2015-16, the accompanying Financial Statements have been prepared on a going concern basis.

1.2. Use of Estimates:

The preparation of financial statements in conformity with Indian Generally Accepted Account! ng Policies (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure relating to contingent liabilities as at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

1.3. Fixed Assets:

Fixed assets are carried at cost of acquisition, net of accumulated depreciation and impairment losses. The cost of fixed assets includes freight, duties, taxes and other incidental expenses relating to acquisition. Where fixed assets have been acquired from a country outside India, the cost of these fixed assets also includes exchange differences (favorable and unfavorable) arising in respect of foreign currency loans on other liabilities incurred specifically for the purpose of their acquisition. Borrowing costs related to the acquisition or construction of the qualifying fixed assets for the period up to the completion of their acquisition or constructions are capitalized. Losses arising from the retirement and the gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the Statement of Profit & Loss.

1.4. Depreciation:

Till the year ended March 31, 2014, Schedule XIV to the Companies Act, 1956, prescribed requirements concerning depreciation of fixed assets. From the current year, Schedule XIV has been replaced by Schedule II of the Companies Act, 2013.

As prescribed under part C of schedule II of Companies Act, 2013, Depreciation is systematically allocated over the useful life of an asset. The depreciation is provided on the Straight Line Method from the beginning of the month in which the asset is ready for use. Depreciation on additions to assets or on sale / disposal of assets, is calculated on pro rata basis from the month of such addition or upto the month of such sale / disposal as the case may be.

1.5. Revenue Recognition:

Revenue from sale of manufactured goods, including scrap, is recognized on transfer of all significant risks and rewards of ownership to the buyer. The amount recognized as sale is inclusive of excise duty, sales tax, and net of trade and quantity discounts on accrual basis. Interest on deployment of surplus funds is recognized using the time proportionate method based on underlying interest rates.

1.6. inventories:

Inventories are carried at the lower of cost and net realizable value. The comparison of cost and net realizable value is made on an item by item basis.

Cost comprises of purchase price and all incidental expenses incurred in bringing the inventory to its present location and condition. The method of determination of cost is as follows:

a. Raw materials, valued at cost net of cenvat;

b. Finished goods at lower of cost or net realizable value and inclusive of excise duty;

c. Goods in Transit valued at cost excluding excise duty and taxes;

d. Stock of scrap at estimated realizable value;

e. Stores and spares - landed cost on a first in first out method.

The provision for inventory obsolescence is assessed annually and is provided as and when considered necessary.

1.7. Foreign Exchange Transactions:

Foreign currency transactions are recorded at the rates of exchange prevailing on the dates of the respective transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Statement of profit and loss of the year, except that exchange differences related to acquisition of fixed assets from a country outside India are adjusted in the carrying amount of the related fixed assets.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date; the resultant exchange differences are recognized in the statement of profit and loss except those related to acquisition of fixed assets from a country outside India which are adjusted in the carrying amount of the related fixed assets.

1.8. Provisions and contingent liabilities:

The Company recognizes a provision when there is a present obligati on 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, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions for onerous contracts, i.e. contracts where the expected unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it, are recognized when it is probable that an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an obligating event, based on a reliable estimate of such obligation.

1.9. Tax on income:

Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year) provided in the books of accounts.

1.10. Excise Duty/Custom Duty:

Excise Duty in respect of goods manufactured by the company is being accounted for at the time of removal of goods from the factory for sale. Custom duty is accounted in the books as and when paid/incurred.

1.11. Earnings Per Share:

The basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. The company did not have any potentially dilutive equity shares outstanding during the year.

1.12. Retirement benefits to employees:

I. Short Term employee benefits:

Short term employee benefits falling due within are recognized as an expense as per the Company's Scheme based on expected obligati ons. The benefits like salaries, wages etc and the expected cost of bonus, ex-gratia are recognized in the period in which the employees renders the related service.

II. Retirement benefits:

Retirement benefits comprise of provident fund, superannuation and gratuity which are recognized as follows:

a. Provident fund:

This is a defined contribution plan. Contributions in respect of staff and workers are remitted to provident fund authorities in accordance with the relevant statute and are charged to statement of profit and loss as and when due. The Company has no further obligations for future provident fund benefits in respect of these employees other than its annual contributions.

b. Superannuation:

This is a defined contribution plan. The Company makes contribution as per the scheme to superannuation Fund administered by Life Insurance Corporation of India. The Company has no further obligation of future superannuation benefits other than its annual contributions and recognizes such contributions ons as expense as and when due.

c. Gratuity:

This is a defined benefit plan. Provision for gratuity is made based on actuarial valuation using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions, are recognized immediately in the statement of profit and loss as income or expense.

1.13. Research & Development:

Research & Development expenditure of revenue nature is charged to Statement of Profit & Loss, while Capital Expenditure is added to the cost of fixed assets in the year in which they are incurred.

1.14. INTANGIBLE ASSETS:

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 Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs 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 statement of profit and loss. 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.

---

Mar 31, 2014

1.1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared on accrual basis under the historical cost convention and in accordance with generally accepted accounting principles in India and materially comply with the Mandatory Accounting Standards notified by the Central Government of India under the Companies (Accounting standards) Rules, 2006 and with the relevant provisions of the Companies Act, 1956.

The Company has recorded a net loss of Rs.103.10 lakhs for the year and the accumulated losses have eroded 71% of its entire net worth and the current Ratio is also not healthy. The Management is confident that the Company will be able to generate profits in future years and meet its financial obligation as they arise. The accompanying Financial Statements have been prepared on a going concern basis based on cumulative impact of following mitigating factors:

* The Company is working on supply side price control to match with sale side price realization so that there is no loss of margin on account of price fluctuations.

* Company is taking all the necessary efforts for sale of land that belongs to the Company at Nellore which will bring long term liquidity and subsequently reduce the interest burden. Due to bifurcation of the state of Andhra Pradesh and restructuring of Government, industrial growth is expected in the area resulting in a good sale opportunity.

* The Company concentrated on identifying the customers / orders which gave prompt realizations and resultant profits and had a detailed study on categorization of the customers, based on the orders and realizations which will help the Company to move forward in a right path.

* The Continued support by the Promoters by bringing in fund will also help the Company at large.

1.2. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian Generally Accepted Accounting Policies (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure relating to contingent liabilities as at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3. FIXED ASSETS AND DEPRECIATION

Fixed assets are carried at cost of acquisition less accumulated depreciation. The cost of fixed assets includes freight, duties, taxes and other incidental expenses relating to acquisition. Where fixed assets have been acquired from a country outside India, the cost of these fixed assets also includes exchange differences (favorable and unfavorable) arising in respect of foreign currency loans on other liabilities incurred specifically for the purpose of their acquisition. Borrowing costs related to the acquisition or construction of the qualifying fixed assets for the period up to the completion of their acquisition or constructions are capitalized.

Depreciation is provided on the Straight Line Method from the beginning of the month in which the asset is ready for use. The rates of depreciation prescribed in Schedule XIV to the Companies Act, 1956 are considered as the minimum rates. If the management''s estimate of the useful life of a fixed asset at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter than that envisaged in the aforesaid schedule, depreciation is provided at a higher rate based on the management''s estimate of the useful life or remaining useful life. Pursuant to this policy, depreciation on assets has been provided at the rates based on the estimated useful lives of fixed assets.

Assets individually costing Rs 5,000 or less are depreciated at the rate of 100%. Depreciation is charged on a proportionate basis for all assets purchased and sold during the year.

1.4. REVENUE RECOGNITION

Revenue from sale of manufactured goods, including scrap, is recognized on transfer of all significant risks and rewards of ownership to the buyer. The amount recognized as sale is inclusive of excise duty, sales tax, and net of, trade and quantity discounts on accrual basis. Interest on deployment of surplus funds is recognized using the time proportionate method based on underlying interest rates.

1.5. INVENTORIES

Inventories are carried at the lower of cost and net realizable value. The comparison of cost and net realizable value is made on an item by item basis.

Cost comprises of purchase price and all incidental expenses incurred in bringing the inventory to its present location and condition. The method of determination of cost is as follows:

a. Raw materials, valued at cost net of cenvat

b. Finished goods at lower of cost or net realizable value and inclusive of excise duty.

c. Goods in Transit valued at cost excluding excise duty and taxes.

d. Stock of scrap at estimated realizable value.

e. Stores and spares - landed cost on a first in first out method

f. The provision for inventory obsolescence is assessed annually and is provided as and when considered necessary.

1.6. FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are recorded at the rates of exchange prevailing on the dates of the respective transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Statement of profit and loss of the year, except that exchange differences related to acquisition of fixed assets from a country outside India are adjusted in the carrying amount of the related fixed assets.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date; the resultant exchange differences are recognized in the profit and loss account except those related to acquisition of fixed assets from a country outside India which are adjusted in the carrying amount of the related fixed assets.

1.7. PROVISIONS AND CONTINGENT LIABILITIES

The Company recognizes 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, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions for onerous contracts, i.e. contracts where the expected unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it, are recognized when it

is probable that an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an obligating event, based on a reliable estimate of such obligation.

1.8. TAX ON INCOME

Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year) provided in the books of accounts.

1.9. EXCISE DUTY/CUSTOM DUTY

Excise Duty in respect of goods manufactured by the company is being accounted for at the time of removal of goods from the factory for sale. Custom duty is accounted in the books as and when paid/incurred.

1.10. EARNING PER SHARE

The basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. The company did not have any potentially dilutive equity shares outstanding during the year.

1.11. RETIREMENT BENEFITS TO EMPLOYEES

I. Short Term employee benefits:

Short term employee benefits falling due within are recognized as an expense as per the Company''s Scheme based on expected obligations. The benefits like salaries, wages etc and the expected cost of bonus, ex-gratia are recognized in the period in which the employees renders the related service.

II. Retirement benefits:

Retirement benefits comprise of provident fund, superannuation and gratuity which are recognized as follows:

a. Provident fund:

This is a defined contribution plan. Contributions in respect of staff and workers are remitted to provident fund authorities in accordance with the relevant statute and are charged to statement of profit and loss as and when due. The Company has no further obligations for future provident fund benefits in respect of these employees other than its annual contributions.

b. Superannuation:

This is a defined contribution plan. The Company makes contribution as per the scheme to superannuation Fund administered by Life Insurance Corporation of India. The Company has no further obligation of future superannuation benefits other than its annual contributions and recognizes such contributions as expense as and when due.

c. Gratuity:

This is a defined benefit plan. Provision for gratuity is made based on actuarial valuation using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions, are recognized immediately in the statement of profit and loss as income or expense.

1.12. INTANGIBLE ASSETS

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 Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs 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 statement of profit and loss. 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.

1.13. RESEARCH & DEVELOPMENT

Research & Development expenditure of revenue nature is charged to Profit & Loss A/c, while Capital Expenditure is added to the cost of fixed assets in the year in which they are incurred.

---

Mar 31, 2012

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared on accrual basis under the historcal cost convention and in accordance with generally accepted accounting principles in India and materially comply with the Mandatory Accounting Standards notified by the Central Government of India under the Companies (Accounting standards) Rules'2006 and with the relevant provisions of the Companies Act'1956,

1.2. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure relating to contingent liabilities as at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3. FIXED ASSETS AND DEPRECIATION

Fixed assets are carried at cost of acquisition less accumulated depreciation. The cost of fixed assets includes freight'duties'taxes and other incidental expenses relating to acquisition. Where fixed assets have been acquired from a country outside India'the cost of these fixed assets also includes exchange differences (favorable and unfavorable) arising in respect of foreign currency loans on other liabilities incurred specifically for the purpose of their acquisition. Borrowing costs related to the acquisition or construction of the qualifying fixed assets for the period up to the completion of their acquisition or constructions are capitalized.

Depreciation is provided on the Straight Line Method from the beginning of the month in which the asset is ready for use. The rates of depreciation prescribed in Schedule XIV to the Companies Act'1956 are considered as the minimum rates. If the management’s estimate of the useful life of a fixed asset at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter than that envisaged in the aforesaid schedule'depreciation is provided at a higher rate based on the management’s estimate of the useful life or remaining useful life. Pursuant to this policy'depreciation on assets has been provided at the rates based on the estimated useful lives of fixed assets

Assets individually costing Rs 5,000 or less are depreciated at the rate of 100%. Depreciation is charged on a proportionate basis for all assets purchased and sold during the year.

1.4. REVENUE RECOGNITION

Revenue from sale of Manufactured goods 'including scrap'is recognized on transfer of all significant risks and rewards of ownership to the buyer. The amount recognized as sale is inclusive of excise duty sales tax'and net of'trade and quantity discounts on accrual basis. Interest on deployment of surplus funds is recognized using the time proportionate method based on underlying interest rates.

1.5. INVENTORIES

Inventories are carried at the lower of cost and net realizable value. The comparison of cost and net realizable value is made on an item by item basis.

Cost comprises of purchase price and all incidental expenses incurred in bringing the inventory to its present location and condition. The method of determination of cost is as follows:

(a) Raw materials'valued at cost net of CENVAT

(b) Finished goods at lower of cost or net realizable value and inclusive of excise duty.

(c) Goods in Transit valued at cost excluding excise duty and taxes.

(d) Stock of scrap at estimated realizable value.

(e) Stores and spares – landed cost on a in first out method

(f) The provision for inventory obsolescence is assessed annually and is provided as and when considered necessary.

1.6. FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are recorded at the rates of exchange prevailing on the dates of the respective transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the statement of profit and loss of the year, except that exchange differences related to acquisition of fixed assets from a country outside India are adjusted in the carrying amount of the related fixed assets.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date; the resultant exchange differences are recognized in the statement of profit and loss except those related to acquisition of fixed assets from a country outside India which are adjusted in the carrying amount of the related fixed assets.

1.7. PROVISIONS AND CONTINGENT LIABILITIES

The Company recognizes 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'require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote'no provision or disclosure is made.

Provisions for onerous contracts'i.e. contracts where the expected unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it'are recognized when it is probable that an outflow of resources embodying economic will be required to settle a present obligation as a result of an obligating event'based on a reliable estimate of such obligation.

1.8. TAX ON INCOME

Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year) provided in the books of accounts.

1.9. EXCISE DUTY/CUSTOM DUTY

Excise Duty in respect of goods manufactured by the Company is being accounted for at the time of removal of goods from the factory for sale. Custom duty is accounted in the books as and when paid/ incurred.

1.10. EARNING PER SHARE

The basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. The Company did not have any potentially dilutive equity shares outstanding during the year.

1.11. RETIREMENT BENEFITS TO EMPLOYEES

i Short Term employee benefits:

Short term employee benefits falling due within are recognized as an expense as per the Company’s Scheme based on expected obligations. The benefits like salaries'wages etc and the expected cost of bonus, ex-gratia are recognized in the period in which the employees renders the related service.

ii. Retirement benefits:

Retirement benefits comprise of provident fund'superannuation and gratuity which are recognized as follows::

a) Provident fund

This is a defined contribution plan. Contributions in respect of staff and workers are remitted to provident fund authorities in accordance with the relevant statute and are charged to statement of profi t and loss as and when due. The Company has no further obligations for future provident fund benefits in respect of these employees other than its annual contributions.

b) Superannuation

This is a defined contribution plan. The Company makes contribution as per the scheme to superannuation fund administered by Life Insurance Corporation of India. The Company has no further obligation of future superannuation benefits other than its annual contributions and recognizes such contributions as expense as and when due.

c) Gratuity

This is a defined benefit plan. Provision for gratuity is made based on actuarial valuation using projected unit credit method. Actuarial gains and losses'comprising of experience adjustments and the effects of changes in actuarial assumptions'are recognized immediately in the statement of profit and loss as income or expense

1.12. RESEARCH & DEVELOPMENT

Research & Development expenditure of revenue nature is charged to statement of profit & loss'while Capital Expenditure is added to the cost of fixed assets in the year in which they are incurred.

1.13. INTANGIBLE ASSETS

Impairment of Assets:

The Company assesses at each Balance Sheet date whether there is any indication that an assets may be impaired. If any such indication exists'the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs 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 statement of profit and loss. 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.

---

Mar 31, 2011

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

(a) The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956, to the extent applicable. The financial statements are presented in Indian rupees.

(b) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

3. FIXED ASSETS AND DEPRECIATION

Fixed assets are carried at cost of acquisition less accumulated depreciation. The cost of fixed assets includes freight, duties, taxes and other incidental expenses relating to acquisition. Where fixed assets have been acquired from a country outside India, the cost of these fixed assets also includes exchange differences (favorable and unfavorable) arising in respect of foreign currency loans on other liabilities incurred specifically for the purpose of their acquisition. Borrowing costs related to the acquisition or construction of the qualifying fixed assets for the period up to the completion of their acquisition or constructions are capitalized.

Depreciation is provided on the Straight Line Method from the beginning of the month in which the asset is ready for use. The rates of depreciation prescribed in Schedule XIV to the Companies Act, 1956 are considered as the minimum rates. If the management's estimate of the useful life of a fixed asset at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter than that envisaged in the aforesaid schedule, depreciation is provided at a higher rate based on the management's estimate of the useful life or remaining useful life. Pursuant to this policy, depreciation on assets has been provided at the rates based on the estimated useful lives of fixed assets

Assets individually costing Rs 5,000 or less are depreciated at the rate of 100%.

Depreciation is charged on a proportionate basis for all assets purchased and sold during the year.

4. REVENUE RECOGNITION

Revenue from sale of manufactured goods including scrap is recognized on transfer of all significant risks and rewards of ownership to the buyer. The amount recognized as sale is inclusive of excise duty sales tax, and net of, trade and quantity discounts on accrual basis. Interest on deployment of surplus funds is recognized using the time proportionate method based on underlying interest rates.

5. INVENTORIES

Inventories are carried at the lower of cost and net realized value. The comparison of cost and net realizable value is made on an item by item basis.

Cost comprises of purchase price and all incidental expenses incurred in bringing the inventory to its present location and condition. The method of determination of cost is as follows:

(a) Raw materials, valued at cost net of cenvat.

(b) Finished goods at lower of cost or net realizable value and inclusive of excise duty.

(c) Goods in Transit valued at cost excluding excise duty and taxes.

(d) Stock of scrap at estimated realizable value.

(e) Stores and spares – landed cost on a first in first out method.

(f) The provision for inventory obsolescence is assessed annually and is provided as and when considered necessary.

6. FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are recorded at the rates of exchange prevailing on the dates of the respective transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the profit and loss account of the year, except that exchange differences related to acquisition of fixed assets from a country outside India are adjusted in the carrying amount of the related fixed assets.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date; the resultant exchange differences are recognized in the profit and loss account except those related to acquisition of fixed assets from a country outside India which are adjusted in the carrying amount of the related fixed assets.

7. PROVISIONS AND CONTINGENT LIABILITIES

The Company recognizes 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, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions for onerous contracts, i.e. contracts where the expected unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it, are recognized when it is probable that an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an obligating event, based on a reliable estimate of such obligation.

8. TAX ON INCOME

Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year) provided in the books of accounts.

9. EXCISE DUTY/CUSTOM DUTY

Excise Duty in respect of goods manufactured by the company is being accounted for at the time of removal of goods from the factory for sale.

Custom duty is accounted in the books as and when paid/incurred.

10. EARNING PER SHARE

The basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. The company did not have any potentially dilutive equity shares outstanding during the year.

11. RETIREMENT BENEFITS TO EMPLOYEES

i. Short Term employee benefits:

Short term employee benefits falling due within are recognized as an expense as per the Company's Scheme based on expected obligations. The benefits like salaries, wages etc and the expected cost of bonus, ex-gratia are recognized in the period in which the employees renders the related service.

ii. Retirement benefits:

Retirement benefits comprise of provident fund, superannuation and gratuity which are recognized as follows:

a) Provident fund

This is a defined contribution plan. Contributions in respect of staff and workers are remitted to provident fund authorities in accordance with the relevant statute and are charged to profit and loss account as and when due. The Company has no further obligations for future provident fund benefits in respect of these employees other than its annual contributions.

b) Superannuation

This is a defined contribution plan. The Company makes contribution as per the scheme to superannuation fund administered by Life Insurance Corporation of India. The Company has no further obligation of future superannuation benefits other than its annual contributions and recognizes such contributions as expense as and when due.

c) Gratuity

This is a defined benefit plan. Provision for gratuity is made based on actuarial valuation using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions, are recognized immediately in the profit and loss account as income or expense.

12. RESEARCH & DEVELOPMENT

Research & Development expenditure of revenue nature is charged to Profit & Loss A/c, while Capital Expenditure is added to the cost of fixed assets in the year in which they are incurred.

13. INTANGIBLE ASSETS

Impairment of Assets:

The company assesses at each Balance Sheet date whether there is any indication that an assets may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash- generating unit to which the asset belongs 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.

14. With respect to the balances of Debtors & Creditors and advances/deposits received from the customers as per books of account. Confirmation of balances are awaited and adjustments if any will be made in the books on receipt of confirmations.

15. DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

The management is currently in the process of identifying enterprises which have provided goods and services to the company which qualify under the definition of micro, small and medium enterprises, as defined in Micro, Small and Medium Enterprises Act 2001. Accordingly, based on information available, the amount payable to such enterprises as on 31st March 2011 is Nil.

16. The computation of profit under section 349 of the Companies Act, 1956 is not considered necessary as the managerial remuneration that is paid is minimum remuneration based on the effective capital of the Company as prescribed under Schedule XIII of the said Act.

19. LEASES

Operating leases

The company is obligated under cancelable operating lease for Kavarapet factory which is renewable at the options of the lessor and the lessee. The expense under the contracted lease amounts to Rs. 21.83 lakhs ( previous year Rs. 30.80 lakhs)

21. As at 31st March, 2011, the company had Rs.467.30 lakhs unabsorbed depreciation and carried forward losses under tax laws.

22. SEGMENTAL REPORTING

The company currently operates in one business segment in manufacturing of PP bags and one geographical segment in India. In line with Accounting Standard 17, as the relevant information is available from the balance sheet and the profit and loss account itself, and therefore keeping in view of the objective of segment reporting, the company has not disclosed segment information.

---

Mar 31, 2010

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

(a) The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956, to the extent applicable. The financial statements are presented in Indian rupees.

(b) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2 USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

3. FIXED ASSETS AND DEPRECIATION

Fixed assets are carried at cost of acquisition less accumulated depreciation. The cost of fixed assets includes freight, duties, taxes and other incidental expenses relating to acquisition. Where fixed assets have been acquired from a country outside India, the cost of these fixed assets also includes exchange differences (favourable and unfavourable) arising in respect of foreign currency loans on other liabilities incurred specifically for the purpose of their acquisition. Borrowing costs related to the acquisition or construction of the qualifying fixed assets for the period up to the completion of their acquisition or construction are capitalized.

Depreciation is provided on the Straight Line Method from the beginning of the month in which the asset is ready for use. The rates of depreciation prescribed in Schedule XIV to the Companies Act, 1956 are considered as the minimum rates. If the managements estimate of the useful life of a fixed asset at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter than that envisaged in the aforesaid schedule, depreciation is provided at a higher rate based on the managements estimate of the useful life or remaining useful life. Pursuant to this policy, depreciation on assets has been provided at the rates based on the estimated useful lives of fixed assets

Assets individually costing Rs 5,000 or less are depreciated at the rate of 100%.

Depreciation is charged on a proportionate basis for all assets purchased and sold during the year.

4. REVENUE RECOGNITION

Revenue from sale of Manufactured goods , including scrap, is recognised on transfer of all significant risks and rewards of ownership to the buyer. The amount recognised as sale is inclusive of sales tax, custom duty, trade and quantity discounts on accrual basis.

Interest on deployment of surplus funds is recognised using the time proportionate method based on underlying interest rates.

5. INVENTORIES

Inventories are carried at the lower of cost and net realizable value. The comparison of cost and net realizable value is made on an item-by-item basis.

Cost comprises of purchase price and all incidental expenses incurred in bringing the inventory to its present location and condition. The method of determination of cost is as follows:

- Raw materials - valued at cost.

- Finished goods - at landed cost on a first in first out method

- Stores and spares - at landed cost on a first in first out method

The provision for inventory obsolescence is assessed annually and is provided as and when considered necessary.

6. FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are recorded at the rates of exchange prevailing on the dates of the respective transactions. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the profit and loss account of the year, except that exchange differences related to acquisition of fixed assets from a country outside India are adjusted in the carrying amount of the related fixed assets.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date; the resultant exchange differences are recognized in the profit and loss account except those related to acquisition of fixed assets from a country outside India which are adjusted in the carrying amount of the related fixed assets.

7. PROVISIONS AND CONTINGENT LIABILITIES

The Company recognizes 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, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions for onerous contracts, i.e. contracts where the expected unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it, are recognized when it is probable that an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an obligating event, based on a reliable estimate of such obligation.

8. INCOME TAX

Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law) and no deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year) provided in the books of accounts.

9. SALES

Sales are inclusive of Excise Duty and Sales Tax.

10. EXCISE DUTY

Excise Duty in respect of goods manufactured by the company is being accounted for, at the time of removal of goods from the factory for sale.

11. RETIREMENT BENEFITS TO EMPLOYEES.

i Short Term

Short term employee benefits are recognised as an expense as per the Companys scheme based on expected obligations.

ii. Post Retirement

Post retirement benefits comprise of provident fund, superannuation and gratuity which are accounted for as follows:

a) Provident fund

This is a defined contribution plan. Contributions in respect of staff and workers are remitted to provident fund authorities in accordance with the relevant statute and are charged to profit and loss account as and when due. The Company has no further obligations for future provident fund benefits in respect of these employees other than its annual contributions.

b) Superannuation

This is a defined contribution plan. The Company makes contribution as per the scheme to Superannuation Fund administered by Life Insurance Corporation of India. The Company has no further obligation for future superannuation benefits other than its annual contributions and recognises such contributions as expense as and when due.

c) Gratuity

This is a defined benefit plan. Provision for gratuity is made based on actuarial valuation using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions, are recognised immediately in the profit and loss account as income or expense.

12 . RESEARCH & DEVELOPMENT

Research & Development expenditure of revenue nature is charged to Profit & Loss A/c, while Capital Expenditure is added to the cost of fixed assets in the year in which they are incurred.

13. DEFERRED TAX LIABILITY

Deferred Tax resulting from timing difference between book and Tax profit is accounted for under liability method, at the current rate of tax, to the extent, the timing differences are expected to crystallize.

14. INTANGIBLE ASSETS

Impairment of Assets:

The company assesses at each balance sheet date whether there is any indication that an asset including goodwill may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs 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.

15. DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES:

The management is currently in the process of identifying enterprises which have provided goods and services to the company which qualify under the definition of micro, small and medium enterprises, as defined in Micro, Small and Medium Enterprises Act 2001. Accordingly, based on information available, the amount payable to such enterprises as on 31st March 2010 is NIL