Accounting Policies of Stylam Industries Ltd. Company

Mar 31, 2025

2 SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation of Standalone Financial

Statements

(a) Statement of Compliance

The Standalone Financial Statements have
been prepared in accordance with Indian
Accounting Standards (IND AS) as prescribed
under Section 133 of the Companies Act, 2013
read with Companies (Indian Accounting
Standards) Rules, 2015 as amended time to time
and relevant provisions of the Companies Act,
2013 and presentation requirements of Division II
of Schedule III to the Companies Act, 2013, (Ind AS
compliant Schedule III). The Financial Statements
comply with IND AS notified by Ministry of
Company Affairs ("MCA"). The Company has
consistently applied the accounting policies
used in the preparation for all periods presented.

(b) Basis of Preparation

The Standalone financial statements have
been prepared on accrual and under
historical cost convention, except for following
assets and liabilities which have been
measured at fair value:

1. Defined benefit plans- Plan assets
measured at fair value ( refer
accounting policy)

2. Certain financial assets and liabilities
measured at fair value (refer accounting
policy regarding financial instrument)

3. The Standalone financial statements are
presented in Indian Rupee (''INR'') which is also
the functional and presentation currency of
the Company and all values are rounded to
the nearest INR (Lakhs) upto two decimal
points, except number of shares, face value
of shares, earning per share or wherever
otherwise indicated. Accounting policies

have been consistently applied except
where a newly issued accounting standard
is initially adopted or a revision to an existing
accounting standard requires a change in
the accounting policy hitherto in use.

(c) Key accounting estimates and judgements

The preparation of Standalone Financial
statements requires management to make
judgements, estimates and assumptions in the
application of accounting policies that affect
the reported amounts of assets, liabilities,
income and expenses. Actual results may differ
from these estimates. Continuous evaluation is
done on the estimation and judgements based
on historical experience and other factors,
including expectations of future events that are
believed to be reasonable.

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

2.2 Operating cycle for Current and Non Current

classification:

The Company presents assets and liabilities in

the balance sheet based on current/ non-current

classification.

An asset is treated as current when it is:

• Expected to be realised or intended to be sold
or consumed in normal operating cycle

• Held primarily for the purpose of trading

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

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

A liability is treated as current when:

• It is expected to be settled in normal
operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after
the reporting period, or

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

The Company classifies all other assets and
liabilities as non-current.

Based on the nature of products/ actitivities of
the company and the normal time between the
acquisition of assets for processing and their
realisation in cash and cash equivalents, the
Company has identified twelve months for the
purpose of classification of its assets and liabilities
as Current or Non Current.

2.3 Property, Plant and Equipment (PPE) and
Intanglible Assets and Depreciation

(a) Property, Plant and Equipment are carried
at cost of acquisition net of recoverable
taxes, any trade discounts and rebates and
accumulated depreciation. The cost comprises
of purchase price including import duties, other
non-refundable taxes/ levies, borrowing cost
and any other expenses directly attributable
to bringing the asset to its current location
and working condition for its intended use.
Subsequent costs of property, plant and
equipment shall be included in asset''s carrying
amount only if:

(a) it is probable that future economic
benefits associated with the item will flow
to the entity; and

(b) the cost of the item can be
measured reliably.

Gains or losses arising from de-recognition
of property, plant and equipment are
measured as the difference between the
net disposal proceeds and the carrying
amount of the asset and are recognized
in the Statement of Profit and Loss when
the asset is derecognized. Cost of repairs
and maintenance are to be recognized
in the Statement of Profit and Loss as
and when incurred.

(b) Capital Work In Progress

Cost of assets not ready for intended use,
as on balance sheet date is shown as
capital work in progress. Advances given
towards acquisition of property, plant and
equipment outstanding at each balance
sheet date are disclosed as "Other Non¬
Current Assets". At the point when an asset
is operating at management''s intended
use, the cost of construction is transferred to
the appropriate category of property, plant
and equipment. Cost associated with the

commissioning of an asset are capitalised
where the asset is available for use and the
commissioning has been compeleted.

(c) Depreciation on Property, Plant and
Equipment

Depreciation is provided on straight line basis
on the original cost/ acquisition cost of assets
or other amounts substituted for cost of fixed
assets as per the useful life specified in Part ''C''
of Schedule II of the Act, read with notification
dated 29 August 2014 of the Ministry of
Corporate Affairs. The residual values,
useful lives and methods of depreciation of
property, plant and equipment are reviewed
at each financial year end and adjusted
prospectively, if appropriate. Depreciation
on additions is provided on a pro-rata basis
from the date of acquisition/installation.
Depreciation on sale/deduction from fixed
assets is provided for up to the date of sale/
adjustment, as the case may be.

Depreciation in respect of additions to
assets has been charged on pro rata basis
with reference to the period when the
assets are ready for use. The provision for
depreciation for multiple shifts has been
made in respect of eligible assets on the
basis of operation of respective units.

(d) Intangible Assets and amortisation

Intangible asset are carried at cost of
acquisition net of any trade discounts and
rebates less accumulated amortization
and impairment loss, if any. The cost
comprises of purchase price including any
other expenses directly attributable for its
intended use. The amortization period is 6
years which is reviewed at least at each
financial year end. If the expected useful
life of the asset is significantly different
from previous estimates, the amortization
period is changed accordingly. If there
has been a significant change in the

expected pattern of economic benefits
from the asset. Such changes are treated
as changes in accounting estimates.

An intangible asset is derecognized on
disposal, or when no future economic
benefits are expected from use or
disposal. Gains or losses arising from
de-recognition of an intangible asset,
measured as the difference between the
net disposal proceeds and the carrying
amount of the asset are recognised in
the statement of profit and loss when the
asset is derecognised. Intangible assets
with indefinite useful lives and intangible
assets not yet available for use are tested
for impairment annually, and whenever
there is an indication that the asset may be
impaired, impairment loss is recognised in
the statement of profit & loss.

(e) Non-current assets held for sale

Non-current asset, are classified as held
for sale if it is highly probable that they will
be recovered primarily through sale rather
than through continuing use.

Such asset, are generally measured at the
lower of their carrying amount and fair
value less cost to sell.

Losses on initial classification as held for
sale and subsequent gains and losses on
re-measurement are recognised in the
Statement of Profit and Loss.

Once classified as held-for sale, property,
plant and equipment are no longer
amortized or depreciated.

(f) Investments in Subsidiaries and
Associates

Investments in Subsidiary, and Associates
are carried at cost less accumulated
impairment losses, if any.

2.4 Borrowing Costs

Borrowing costs directly attributable to the
acquisition, construction or production of an asset
that necessarily takes a substantial period of time to
get ready for its intended use or sale are capitalized
as part of the cost of the asset. All other borrowing
costs are expensed in the period in which they
occur. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the
borrowing of funds. Borrowing cost also includes

exchange differences to the extent regarded as
an adjustment to the borrowing costs. Loan taken
from promoters and directors has been derived on
basis of fair value based on market rate of interest
prevailing when loan and derived to the total tenure
of loan. The interest for the period is charged to the
Statement of Profit and Loss.

2.5 Inventories

Inventories are valued at the lower of cost and
Net realisable value. Cost of inventories includes
expenditure incurred in acquiring the inventories,
production or conversion costs and other costs
incurred in bringing them to their present loction
and condition. Cost of Inventories are determined
on First In First Out Method. Finished goods
include appropriate proportion of overheads. Net
Reaslisable value represents the estimated selling
price for inventories less all estimated costs of
completion and costs necessary to make the sale.
Waste is valued at net realizable value.

2.6 Revenue Recognition

Revenue is recognized upon transfer of control of
promised products or services to customers for an
amount that reflects the consideration which the
company expects to receive in exchange for those
products or services. Revenue excludes taxes or
duties collected on behalf of the company.

Revenue from sale of goods is recognized when
control of goods has been transferred to the buyer
and performance obligation has been achieved,
as per the terms of that sales. Interest income is
recognised on time proportion basis taking into
account the amount outstanding and effective rate
of interest method. Dividend income on investments
are accounted for when the right to receive the
payment is established. The Company considers
shipping and handling activities as costs to fulfil
the promise to transfer the related products and
the customer payments for shipping and handling
costs are recorded as a component of revenue.

Performance Obligation is achieved when:

i) the Company has transferred to the
buyer the significant risks and rewards of
ownership of the goods;

ii) the Company retains neither continuing
managerial involvement to the degree usually
associated with ownership nor effective control
over the goods sold;

iii) the amount of revenue can be measured reliably;

iv) it is probable that the economic benefits
associated with the transaction will flow to
the Company; and

v) the costs incurred or to be incurred in respect of
the transaction can be measured reliably.

Revenue is measured based on the transaction
price, whcih is the consideration, adjusted for volume
discounts, performance bonuses, price concessions
and incentives, if any, as specified in the contract
with the customer. Revenue also excludes taxes
collected from customers.

A liability is recongized where payments are
receive from customers before transferring control
of the goods being sold or providing services
to the customer.

Government Grants - Export Incentive entitlements
are recognised as income when there is reasonable
assurance to receive that company will comply with
the conditions attached to them and its is established
that incentive will be received. Government grants
that compensate that Company for expenses
incurred are recognised in the statement of profit
and loss, as income or deduction from relevant
expense, on a systematic basis in the period in
which the expense in recognised.

Other income is accounted for on accrual basis as
and when the right to receive arises.

2.7 Employee benefits

The Company''s retirement benefit obligation
is subject to a number of judgement including
discount rates, inflation and salary growth.
Significant judgement is required when setting
these criteria and a change in these assumptions
would have a significant impact on the amount
recorded in the Company''s balance sheet and the
statement of profit and loss. The Company sets
these judgements based on previous experience
and third party actuarial advice.

(a) Short-Term Employees Benefits

All employee benefits payable/available within
twelve months of rendering the service are
classified as short-term employee benefits.
Benefits such as salaries, wages and bonus
etc., are recognized in the Statement of Profit
and Loss in the period in which the employee
renders the related service.

(b) Post Employment Benefits

(i) Defined Contribution Plan:

A defined contribution plan is a post¬
employment benefit plan under which an
entity pays specified contribution and has
no legal or constructive obligation to pay
any further amounts. The Company makes
specified monthly contributions towards
employee provident fund, employee state
insurance, labour welfare fund to the
Government administrated provident fund
scheme which is defined contribution plan.
The Company''s contribution is recognized
as an expense in the Statement of Profit
and Loss during the period in which
employee renders the related service
entitling them to the contributions.

(ii) Defined Benefits Plan - Gratuity:

The Company''s gratuity scheme is a
defined benefit plan. The present value of
the obligation under such defined benefit
plan is determined based on actuarial
valuation carried at the year end using
the Projected Unit Credit Method, which
recognizes each period of service as giving
rise to additional unit of employee benefit
entitlement and measures each unit
separately to build up the final obligation.
The obligation is measured at the present
value of the estimated future cash flows.
Remeasurement, comprising actuarial
gains and losses is reflected immediately in
the Balance Sheet with a charge or credit in
other comprehensive income in the period
in which they occured. Remeasurement
recognized in other comprehensive
income is reflected immediately in retained
earnings and is not reclassified to the
statement of profit and loss account.
Service cost (including current service
cost, past service cost as well as gains and
lossess on curtailments and settlements)
and interest expense / income is
recognized in the statement of profit and
loss account. The Company pays gratuity
to the employees whoever has completed
five years of service with the Company at
the time of resignation/superannuation.
The gratuity is paid @15 days salary for
every completed year of service as per the
Payment of Gratuity Act 1972.

(iii) Defined Benefits Plan - Compensated
Absences:

As per the Company''s policy, eligible leaves
can be accumulated by the employees and
carried forward to future periods to either
be utilized during the service, or encashed.
Encashment can be made during service,
on early retirement, on withdrawal of
scheme, at resignation and upon death of
the employee. Accumulated compensated
absences are treated as other long-term
employee benefits. The Company''s liability
in respect of other long-term employee
benefits is recognised in the books of
account based on actuarial valuation using
projected unit credit method as at Balance
Sheet date by an independent actuary.
Actuarial losses/gains are recognised in
the Statement of Profit and Loss in the year
in which they arise.

(c) Acturial Valuation

The liability in respect of all defined benefit
plans is accrued in the books of account on
the basis of actuarial valuation carried out by
an independent actuary using the Projected
Unit Credit Method, which recognises each
year of service as giving rise to additional
unit of employee benefit entitlement and
measure each unit separately to build up the
final obligation. The obligation is measured
at the present value of estimated future cash
flows. The discount rates used for determining
the present value of obligation under defined
benefit plans, is based on the market yields on
Government securities as at the Balance Sheet
date, having maturity periods approximating to
the terms of related obligations.

2.8 Income Taxes

Tax expense comprises current and deferred tax.

(a) Current Tax

i) Tax on income for the current period is
determined on the basis of estimated
taxable income and tax credits computed
in accordance with the provisions of the
relevant tax laws using tax rates that
have been enected by the end of the
reporting period.

ii) Current income tax relating to items
recognized directly in equity is recognized
in equity and not in the statement of
profit and loss.

iii) Management periodically evaluates
positions taken in the tax returns
with respect to situations in which
applicable tax regulations are subject to
interpretation and establishes provisions
where appropriate.

(b) Deferred Tax

Deferred tax is provided using the balance
sheet approach on temporary differences
at the reporting date between the tax bases
of assets and liabilities and their carrying
amounts for financial reporting purposes at the
reporting date. The carrying amount of deferred
tax assets is reviewed at each reporting date
and reduced to the extent that it is no longer
probable that sufficient taxable profit will be
available to allow all or part of the deferred tax
asset to be utilized. Unrecognized deferred tax
assets are reassessed at each reporting date
and are recognized to the extent that it has
become probable that future taxable profits will
allow the deferred tax asset to be recovered.

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

The break-up of the major components of the
deferred tax assets and liabilities as at balance
sheet date has been arrived at after setting off
deferred tax assets and liabilities where the
Company have a legally enforceable right to
set-off assets against liabilities and where such
assets and liabilities relate to taxes on income
levied by the same governing taxation laws.

.9 Earnings Per Share

i) Basic earnings per share

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

ii) Diluted earnings per share

For the purpose of calculating diluted earnings
per share, the net profit or loss for the period
attributable to equity shareholders and

the weighted average number of shares
outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.

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Mar 31, 2024

1. Company information

Stylam Industries Limited (“the Company”) is a public limited company incorporated in India with its registered office located at Sco-14, Sector 7-C, Madhya Marg, Chandigarh, India. The Company is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) The Company is engaged in manufacturing of laminates, solid surface panels and allied products.

The manufacturing facilities of the company are located at Panchkula, Haryana, India

2. Basis of Preparation, Measurement and Significant accounting policies

2.1 Basis of Preparation and measurement

a) Basis of preparation

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.

The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements.

The financial statements are presented in INR, the functional currency of the Company. Items included in the financial statements of the Company are recorded using the currency of the primary economic environment in which the Company operates (the ‘functional currency’)

The financial statements of the Company for the year ended March 31, 2024 were approved for issue in accordance with the resolution of the Board of Directors on May 27th, 2024

b) Basis of measurement

These Standalone Financial statements are prepared under the historical cost convention unless otherwise indicated.

2.2 Key accounting estimates and judgements

The preparation of Financial statements requires management to make judgements, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses.

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

Key source of estimation of uncertainty at the date of financial statements, which may cause material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of impairment, useful lives of property and plant and equipment, provisions, valuation of deferred tax liabilities, contingent liabilities and fair value measurements of financial instruments as discussed below.

Key source of estimation of uncertainty in respect of revenue recognition and employee benefits have been discussed in the respective policies.

Continuous evaluation is done on the estimation. Actual results may differ from these estimates.

2.3 Current versus non-current classification

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013.

The Company presents assets and liabilities in the Balance Sheet based on current/ non-current classification. An asset is treated as current when:

• It is expected to be realised or intended to be sold or consumed in normal operating cycle;

• It is held primarily for the purpose of trading;

• It is expected to be realised within twelve months after the reporting period; or

• It is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

The Company classifies all other assets as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period; or

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

The Company classifies all other liabilities as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle for the purpose of current and noncurrent classification of assets and liabilities.

2.4 Significant accounting policies

(a) Property, plant and equipment (PPE)

- Property, plant and equipment

Items of property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment loss, if any. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost and incidental expenditure during construction incurred up to the date when the assets are ready for intended use. Capital work in progress includes cost of assets at sites, construction expenditure and interest on the funds deployed less any impairment loss, if any. If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as a separate item (major components) of property, plant and equipment. As per the assessment made by the management, property plant does not comprise any significant components with different useful life. Any gain on disposal of property, plant and equipment is recognised in Statement of Profit and loss. Costs in nature of repairs and maintenance are recognized in the Statement of Profit and Loss as and when incurred.

- Subsequent Measurement

Subsequent expenditure is capitalised only if it is probable that there is a future economic benefit associated with the expenditure will flow to the Company and the cost can be measured reliably.

- Capital work in progress

Capital work-in-progress comprises of assets in the course of construction for production or/and supply of goods or services or administrative purposes, are carried at cost, less any recognised impairment loss. At the point when an asset is operating at management’s intended use, the cost of construction is transferred to the appropriate category of property, plant and equipment. Costs associated with the commissioning of an asset are capitalised where the asset is available for use and commissioning has been completed.

- Capital Advances

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under “Other Non-Current Assets”.

(b) Depreciation and amortization methods, estimated useful lives and residual value

Depreciation is provided on straight line basis on the original cost/ acquisition cost of assets or other amounts substituted for cost of fixed assets as per the useful life specified in Part ''C'' of Schedule II of the Act, read with notification dated 29 August 2014 of the Ministry of Corporate Affairs.

The useful life is as follows:

Sr. No.	Nature of Asset	Useful Life (Years)
1.	Buildings	30
2.	Plant & Machinery	7.5/15
3.	Other Equipment	3 to 5
4.	Vehicles	8
5.	Furniture/ Fittings	10

Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period when the assets are ready for use. The provision for depreciation for multiple shifts has been made in respect of eligible assets on the basis of operation of respective units.

(c) Intangibles

Intangible Assets acquired separately are stated at cost less accumulated amortization and impairment loss, if any.

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset are recognised in the statement of profit and loss when the asset is derecognised. Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired, impairment loss is recognised in the statement of profit & loss.

- Amortisation

Intangible Assets are amortized on a Straight Line basis over the estimated useful economic life. The estimated useful lives of intangible assets are assessed as 6 years. Amortisation methods, useful lives and residual values are reviewed in each financial year end and changes, if any, are accounted for prospectively.

(d) De-recognition

The carrying amount of an item of property, plant and equipment is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from the de-recognition of an item of property, plant and equipment is measured as the difference between the net disposal proceeds and the carrying amount of the item and is recognised in the Statement of Profit and Loss when the item is derecognised.

(e) Non-current assets held for sale

Non-current asset, are classified as held for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use.

Such asset, are generally measured at the lower of their carrying amount and fair value less cost to sell.

Losses on initial classification as held for sale and subsequent gains and losses on re-measurement are recognised in the Statement of Profit and Loss.

Once classified as held-for sale, property, plant and equipment are no longer amortized or depreciated.

(f) Investments in Subsidiaries, and Associates

Investments in Subsidiary, and Associates are carried at cost less accumulated impairment losses, if any.

(g) Inventory I. Inventories are valued as follows:
Raw materials,	Lower of cost and net
stores and	realisable value. Cost is
spares	determined on a FIFO basis. Materials and other items held for use in the production of inventories are not written down below costs, if finished goods in which they will be incorporated are expected to be sold at or above cost.
Work-in-	Lower of cost and net
progress,	realisable value. Cost
finished goods	includes direct materials,
and traded	labour and a proportion of
goods	manufacturing overheads.
Waste	At net realisable value.

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

(h) Financial instruments

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

Financial Assets

- Initial Recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables that do not contain a significant financing component are measured at transaction price.

- Cash and cash equivalents

• Cash and cash equivalent comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. These balances with banks are unrestricted for withdrawal and usage.

• Other bank balances include balances and deposits with banks that are restricted for withdrawal and usage

- Recoverability of trade receivable

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

- Derivative financial instruments and Hedge Accounting

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

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

- Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. 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.

Financial Liabilities

- Initial recognition and measurement

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

- Subsequent measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, amortised cost, as appropriate.

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

- Derecognition

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expire.

(i) Impairment of non-financial assets

At each balance sheet date, the carrying amount of fixed assets is reviewed by the management to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent

of impairment loss (recoverable amount is the higher of an asset’s net selling price or value in use). In assessing the value in use, the estimated future cash flows expected from the continuing use of the assets and from their disposal are discounted to their present value using a pre discounted rate that reflects the current market assessment of time value of money and risks specific to the asset.

Reversal of impairment loss is recognised immediately as income in the Profit and Loss Account.

(j) Valuation of deferred tax liabilities

The Company reviews the carrying amount of deferred tax liabilities at the end of each reporting period.

(k) Provision and contingent liabilities

A provision is recognised when the Company has a present obligation as result of a past event and it is probable that the outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

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 liabilities are not recognised in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.

(l) Revenue recognition

The Company recognizes revenue when it satisfies a performance obligation in accordance with the provisions of contract with the customer. This is achieved when control of the product has been transferred to the customer, which is generally determined when title, ownership, risk of obsolescence and loss pass to the customer and the Company has the present right to payment, all of which occurs at a point in time upon shipment or delivery of the product. The Company considers shipping and handling activities as costs to fulfil the promise to transfer the related products and the customer payments

for shipping and handling costs are recorded as a

component of revenue.

Performance Obligation is achieved when:

i) the Company has transferred to the

buyer the significant risks and rewards of ownership of the goods;

ii) the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

iii) the amount of revenue can be measured reliably;

iv) it is probable that the economic benefits associated with the transaction will flow to the Company; and

v) the costs incurred or to be incurred in respect of the transaction can be measured reliably.

- Sale of products

Revenue from sale of products is recognized when the control on the goods have been transferred to the customer. The performance obligation in case of sale of product is satisfied at a point in time i.e., when the material is shipped to the customer or on delivery to the customer and there is no continuing effective control or managerial involvement with the goods, and the amount of revenue can be measured reliably.

Revenue from operations is disclosed net of GST.

Revenue from operations is adjusted with gain/ loss on corresponding on foreign currency transactions related to export.

- Government Grants

Export incentive entitlements are recognised as income when there is reasonable assurance to receive that company will comply with the conditions attached to them and it is established that incentive will be received.

Government grants that compensate the Company for expenses incurred are recognised in the statement of profit and loss, as income or deduction from the relevant expense, on a systematic basis in the periods in which the expense is recognised.

- Other Income

Other income is accounted for on accrual basis as and when the right to receive arises.

(m) Expenditure

Expenses are accounted on accrual basis.

(n) Employee benefits

The Company’s retirement benefit obligation is subject to a number of judgement including discount rates, inflation and salary growth. Significant judgement is required when setting these criteria and a change in these assumptions would have a significant impact on the amount recorded in the Company’s balance sheet and the statement of profit and loss. The Company sets these judgements based on previous experience and third party actuarial advice.

- Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

- Defined contribution plans

Contributions to defined contribution schemes such as provident fund, employees state insurance, labour welfare fund, are charged as an expense in Profit and loss account, based on the amount of contribution required to be made as and when services are rendered by the employees. These are classified as Defined Contribution Schemes as the Company has no further defined obligations beyond the monthly contributions.

- Retirement benefit obligations

Retirement benefit obligations are classified into defined benefits plans and defined contribution plans as under:

Defined Gratuity Plans

The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation/ superannuation. The gratuity is paid @15 days

salary for every completed year of service as per the Payment of Gratuity Act 1972.

The plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount based on the respective employee’s salary and the tenure of employment. The liability in respect of Gratuity is recognised in the books of accounts based on actuarial valuation by an independent actuary.

Compensated absences

As per the Company’s policy, eligible leaves can be accumulated by the employees and carried forward to future periods to either be utilized during the service, or encashed. Encashment can be made during service, on early retirement, on withdrawal of scheme, at resignation and upon death of the employee. Accumulated compensated absences are treated as other long-term employee benefits. The Company’s liability in respect of other long-term employee benefits is recognised in the books of account based on actuarial valuation using projected unit credit method as at Balance Sheet date by an independent actuary. Actuarial losses/gains are recognised in the Statement of Profit and Loss in the year in which they arise.

Actuarial valuation

The liability in respect of all defined benefit plans is accrued in the books of account on the basis of actuarial valuation carried out by an independent actuary using the Projected Unit Credit Method, which recognises each year of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to build up the final obligation. The obligation is measured at the present value of estimated future cash flows. The discount rates used for determining the present value of obligation under defined benefit plans, is based on the market yields on Government securities as at the Balance Sheet date, having maturity periods approximating to the terms of related obligations.

- Re-measurement

Benefit plans in respect of retirement benefits are charged to the Other Comprehensive Income.

(o) Income Taxes

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income. In which case, the tax is also recognised in other comprehensive income or equity.

- Current tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted by the end of the reporting period.

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

- Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities / assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

(p) Finance costs

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

Interest free loan taken from promoters and others has been derived on basis of fair value based on market rate of interest prevailing when loan and derived to the total tenure of loan. The interest for the period is charged to the Statement of Profit and Loss.

(q) Foreign currencies transactions and translation

The Company’s financial statements are presented in INR, which is also the Company’s functional currency. Transactions in foreign currencies are initially recorded by the Company at INR spot rate at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognized in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

(r) Earnings per share

Basic Earnings per share (EPS) amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders adjusted for the effects of potential equity shares by the weighted

average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

(s) Business Combination

The company accounts for its business combinations in the nature of Merger, wherein all the assets and liabilities of the transferor company will become, after amalgamation, the assets and liabilities of the transferee company.

The consideration for the amalgamation receivable by those equity shareholders of the transferor company who agree to become equity shareholders of the transferee company is discharged by the transferee company wholly by the issue of equity shares in the transferee company.

The business of the transferor company is intended to be carried on, after the amalgamation, by the transferee company.

No adjustment is to be made to the book values of the assets and liabilities of the transferor company when they are incorporated in the financial statements of the transferee company except to ensure uniformity of accounting policies.

(t) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The board of directors of the Company has been identified as being the chief operating decision maker by the Management of the company. The Business activity of the company majorly falls within one business segment viz “Laminates”.

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Mar 31, 2023

Significant accounting policies

2.1 Basis of Preparation and measurement

a) Basis of preparation

These financial statements have been prepared in
accordance with the Indian Accounting Standards
(hereinafter referred to as the ‘Ind AS'') as notified by
Ministry of Corporate Affairs pursuant to Section 133
of the Companies Act, 2013 read with Rule 3 of the
Companies (Indian Accounting Standards) Rules, 2015
as amended from time to time.

The financial statements have been prepared on accrual
and going concern basis. The accounting policies are
applied consistently to all the periods presented in the
financial statements.

The financial statements are presented in INR, the
functional currency of the Company. Items included in the
financial statements of the Company are recorded using
the currency of the primary economic environment in
which the Company operates (the ‘functional currency'')

The financial statements of the Company for the year
ended March 31, 2023 were approved for issue in
accordance with the resolution of the Board of Directors
on May 05, 2023

b) Basis of measurement

These Standalone Financial statements are prepared
under the historical cost convention unless otherwise
indicated.

2.2 Key accounting estimates and judgements

The preparation of Financial statements requires management
to make judgements, estimates and assumptions in the
application of accounting policies that affect the reported
amounts of assets, liabilities, income and expenses.

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

Key source of estimation of uncertainty at the date of
financial statements, which may cause material adjustment
to the carrying amounts of assets and liabilities within the
next financial year, is in respect of impairment, useful lives
of property and plant and equipment, provisions, valuation
of deferred tax liabilities, contingent liabilities and fair value
measurements of financial instruments as discussed below.

Key source of estimation of uncertainty in respect of revenue
recognition and employee benefits have been discussed in
the respective policies.

Continuous evaluation is done on the estimation. Actual
results may differ from these estimates.

2.3 Current versus non-current classification

All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle
and other criteria as set out in the Division II of Schedule III to
the Companies Act, 2013.

The Company presents assets and liabilities in the Balance
Sheet based on current/ non-current classification. An asset
is treated as current when:

• It is expected to be realised or intended to be sold or
consumed in normal operating cycle;

• It is held primarily for the purpose of trading;

• It is expected to be realised within twelve months after
the reporting period; or

• It is cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve
months after the reporting period.

The Company classifies all other assets as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the
reporting period; or

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

The Company classifies all other liabilities as non-current.

The operating cycle is the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents. The Company has identified twelve months
as its operating cycle for the purpose of current and non¬
current classification of assets and liabilities.

2.4 Significant accounting policies

(a) Property, plant and equipment (PPE)

- Property, plant and equipment

Items of property, plant and equipment are stated at
cost less accumulated depreciation and accumulated
impairment loss, if any. The cost of assets comprises of
purchase price and directly attributable cost of bringing
the assets to working condition for its intended use
including borrowing cost and incidental expenditure
during construction incurred up to the date when the
assets are ready for intended use. Capital work in
progress includes cost of assets at sites, construction
expenditure and interest on the funds deployed less
any impairment loss, if any. If significant parts of an item
of property, plant and equipment have different useful
lives, then they are accounted for as a separate item
(major components) of property, plant and equipment.
As per the assessment made by the management,
property plant does not comprise any significant
components with different useful life. Any gain on
disposal of property, plant and equipment is recognised
in Statement of Profit and loss. Costs in nature of repairs
and maintenance are recognised in the Statement of
Profit and Loss as and when incurred.

- Subsequent Measurement

Subsequent expenditure is capitalised only if it is
probable that there is a future economic benefit
associated with the expenditure will flow to the
Company and the cost can be measured reliably.

- Capital work in progress

Capital work-in-progress comprises of assets in the
course of construction for production or/and supply
of goods or services or administrative purposes, are
carried at cost, less any recognised impairment loss. At
the point when an asset is operating at management''s
intended use, the cost of construction is transferred
to the appropriate category of property, plant and
equipment. Costs associated with the commissioning of
an asset are capitalised where the asset is available for
use and commissioning has been completed.

- Capital Advances

Advances paid towards the acquisition of property,
plant and equipment outstanding at each balance sheet
date is classified as capital advances under “Other Non¬
Current Assets".

(b) Depreciation and amortization methods, estimated
useful lives and residual value

Depreciation is provided on straight line basis on the
original cost/ acquisition cost of assets or other amounts

substituted for cost of fixed assets as per the useful life
specified in Part ''C of Schedule II of the Act, read with
notification dated 29 August 2014 of the Ministry of
Corporate Affairs.

(c) Intangibles

Intangible Assets acquired separately are stated at cost
less accumulated amortization and impairment loss, if any.

An intangible asset is derecognised on disposal, or when
no future economic benefits are expected from use or
disposal. Gains or losses arising from de-recognition of
an intangible asset, measured as the difference between
the net disposal proceeds and the carrying amount of
the asset are recognised in the statement of profit and
loss when the asset is derecognised. Intangible assets
with indefinite useful lives and intangible assets not yet
available for use are tested for impairment annually, and
whenever there is an indication that the asset may be
impaired, impairment loss is recognised in the statement
of profit & loss.

- Amortisation

Intangible Assets are amortized on a Straight Line basis
over the estimated useful economic life. The estimated
useful lives of intangible assets are assessed as 6 years.
Amortisation methods, useful lives and residual values
are reviewed in each financial year end and changes, if
any, are accounted for prospectively.

(d) De-recognition

The carrying amount of an item of property, plant
and equipment is derecognised on disposal or when
no future economic benefits are expected from its
use or disposal. The gain or loss arising from the de¬
recognition of an item of property, plant and equipment
is measured as the difference between the net disposal
proceeds and the carrying amount of the item and is

recognised in the Statement of Profit and Loss when the
item is derecognised.

(e) Non-current assets held for sale

Non-current asset, are classified as held for sale if it is
highly probable that they will be recovered primarily
through sale rather than through continuing use.

Such asset, are generally measured at the lower of their
carrying amount and fair value less cost to sell.

Losses on initial classification as held for sale and
subsequent gains and losses on re-measurement are
recognised in the Statement of Profit and Loss.

Once classified as held-for sale, property, plant and
equipment are no longer amortized or depreciated.

(f) Investments in Subsidiaries, and Associates

Investments in Subsidiary, and Associates are carried at
cost less accumulated impairment losses, if any.

During the year subsidiary “M/s Stylam Asia Pacific Pte
Ltd “ has been striked off.

Financial Assets

- Initial Recognition and measurement

All financial assets are recognised initially at fair value
plus, in the case of financial assets not recorded at
fair value through profit or loss, transaction costs
that are attributable to the acquisition of the financial
asset. However, trade receivables that do not contain
a significant financing component are measured at
transaction price.

- Cash and cash equivalents

• Cash and cash equivalent comprise cash at banks
and on hand and short-term deposits with an
original maturity of three months or less, which are
subject to an insignificant risk of changes in value.
These balances with banks are unrestricted for
withdrawal and usage.

• Other bank balances include balances and deposits
with banks that are restricted for withdrawal and usage

- Recoverability of trade receivable

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

- Derivative financial instruments and Hedge Accounting

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

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

- Impairment of financial assets

The impairment provisions for financial assets are based
on assumptions about risk of default and expected
cash loss rates. 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.

Financial Liabilities

- Initial recognition and measurement

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

- Subsequent measurement

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or loss,
amortised cost, as appropriate.

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

- Derecognition

A financial liability is derecognised when the obligation
specified in the contract is discharged, cancelled or expire.

(i) Impairment of non-financial assets

At each balance sheet date, the carrying amount of fixed
assets is reviewed by the management to determine
whether there is any indication that those assets
suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated
in order to determine the extent of impairment loss
(recoverable amount is the higher of an asset''s net
selling price or value in use). In assessing the value in
use, the estimated future cash flows expected from the
continuing use of the assets and from their disposal are
discounted to their present value using a pre discounted
rate that reflects the current market assessment of time
value of money and risks specific to the asset.

Reversal of impairment loss is recognised immediately
as income in the Profit and Loss Account.

(j) Valuation of deferred tax liabilities

The Company reviews the carrying amount of deferred
tax liabilities at the end of each reporting period.

---

Mar 31, 2018

1. Significant accounting policies

This note provides” a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated,

(a) Basis of preparation

(i) Statement of compliance

These Standalone Ind AS Financial Statements (‘‘financial statements”) have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act. 2013, (“the Act”) and other relevant provisions of the Act.

The financial statements up to and for the year ended 31 March 2017 were prepared in accordance with the Companies {Accounting Standards) Rules, 2006 (previous GAAP), notified under Section 133 of the Act and other relevant provisions of the Act.

As these are the Company’s first financial statements prepared in accordance with Ind AS. Ind AS 101, First-time Adoption of Indian Accounting Standards has been applied. An explanation of how the transition to Ind AS has affected the previously reported financial position, financial performance and cash Hows of the Company is provided in Note ,.

(ii) Historical cost convention

The financial statements have been prepared under historical cost convention on accrual basis, unless otherwise stated.

(b) Current versus non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current/ non-current classification. An asset is treated as current when:

- It is expected to be realised or intended to be sold or consumed in normal operating cycle;

- It is held primarily for the purpose of trading:

- It is expected to be realised within twelve months after the reporting period: or

- It is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

The Company classifies all other assets as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle:

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period; or

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

The Company classifies all other liabilities as noncurrent.

Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle for the purpose of current and non- current classification of assets and liabilities.

(c) Property, plant and equipment (PPE)

(i) Property, plant and equipment Freehold land is carried at cost.

Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.

Expenses incurred relating to project, net of income earned during the project development stage prior to its intended use, are considered as pre - operative expenses and disclosed under Capital Work - in -Progress.

Expenditure incurred on commissioning of the project and/or substantial expansion, including the expenditure incurred on trial runs [net of trial run receipts, if any) up to the date of commencement of commercial production are capitalized. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is de-recognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Advances paid towards acquisition of property, plant and equipment outstanding at each Balance Sheet date, are shoivn under other non-current assets and cost of assets not ready for intended use before the year end, are shown as capital work-in- progress.

(ii) Depreciation and amortization methods, estimated useful lives and residual value

Depreciation is provided on straight line basis on the original cost/ acquisition cost of assets or other amounts substituted for cost of fixed assets as per the useful life specified in Part ‘C of Schedule II of the Act, read with notification dated 29 August 2014 of the Ministry of Corporate Affairs,

The useful life is as follows:

{iii) De-recognition

A property, plant and equipment is de-recognized on disposal or when no future economic benefits are expected from its use and disposal. Losses arising from retirement and gains or losses arising from disposal of a tangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss.

(iv) Transition to Ind AS

On transition to Ind AS, the Company has elected to measure all its property, plant and equipment at the previous GAAP cariying amount as its deemed cost on the date of transition of Ind AS i.e, 1 April 2016.

On transition to Ind AS, the Company has elected to exercise the option under Ind AS 21 for accounting of Exchange differences pertaining to long term foreign currency monetary items that are related to acquisition of depreciable/ amortizable assets to adjust in the carrying amount of the related property, plant and equipment in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP. Accordingly amortization and depreciation on exchange fluctuation capitalized is charged over the remaining useful life of the respective assets.

(d) Non-current assets held for sale

Mon-current asset, are classified as held for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use.

Such asset, are generally measured at the lower of their carrying amount and fair value less cost to sell.

Losses on initial classification as held for sale and subsequent gains and losses on re-measurement are recognized in the Statement of Profit and Loss.

Once classified as held-for sale, property, plant and equipment are no longer amortized or depreciated.

(e) Impairment of non-financial assets

At each balance sheet date, the carrying amount of fixed assets is reviewed by the management to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss (recoverable amount is the higher of an asset’s net selling price or value in use). In assessing the value in use, the estimated future cash flows expected from the continuing use of the assets and from their disposal are discounted to their present value using a pre discounted rate that reflects the current marker assessment of time value of money and risks specific to the asset.

Reversal of impairment loss is recognized immediately as income in the Profit and Loss Account.

(f) Inventories

Items of inventories are measured at lower of cost and net realizable value.

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

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

(g) Cash and cash equivalents

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

(h) Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

(i) Revenue recognition

Revenue from sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated cost can be estimated reliably, there is no continuing effective control or managerial involvement with the goods, and the amount of revenue can he measured reliably.

Revenue from operations includes sate of goods plus excise duty, till 30.06.2017. Post the applicability of Goods & Service Tax (GST) with effect from 01^st July 2017, revenue from operations is disclosed net of GST.

Revenue from operations is adjusted with gain/ loss on corresponding on foreign currency transactions related to export.

Export incentive entitlements are recognised as income when the right to receive credit as per the terms of the scheme is established in respect of the exports made, and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds. These are presented as other operating income in the Statement of Profit and Loss.

Other income is accounted for on accrual basis as and when the right to receive arises

(j) Financial instrument

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

(i) Financial assets Recognition and measurement

All financial assets are recognised at fair value.

(ii) Financial liabilities

Initial recognition and measurement

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

Subsequent measurement

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

(iii) Derivative financial instruments and Hedge Accounting

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

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

(k) Employee benefits expense

(i) Short-term employee benefits: All employee benefits falling due within twelve months of the end of the period in which the employees render the related services are classified as short term employee benefits, which include benefits like salaries, wages, short term compensated absences, performance incentives, etc. and are recognised as expenses in the period in which the employee renders the related service and measured accordingly.

(ii) Post-employment benefits: Post employment benefit plans are classified into defined benefits plans and defined contribution plans as under:

a) Defined Gratuity Plans

The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation/superannuation. The gratuity is paid @15 days salary for every completed year of service as per the Payment of Gratuity Act 1972.

The plan provides for a lump sum payment to vested employees at retirement, death while in employment or 011 termination of employment of an amount based on the respective employee’s salary and the tenure of employment. The liability in respect of Gratuity is recognised in the books of accounts based on actuarial valuation by an independent actuary.

b) Defined Contribution Plans

The contribution to provident fund and pension fund and employee state insurance are considered as defined contribution plans and are charged to the statement of profit and loss of the year as they fall due, based on the amount of the contribution required to be made.

c) Compensated absences

As per the Company’s policy, eligible leaves can be accumulated by the employees and carried forward to future periods to either be utilized during the service, or encashed. Encashment can be made during service, on early retirement, on withdrawal of scheme, at resignation and upon death of the employee. Accumulated compensated absences are treated as other long-term employee benefits .The Company’s liability in respect of other long-term employee benefits is recognised in the books of account based on actuarial valuation using projected unit credit method as at Balance Sheet date by an independent actuary. Actuarial losses/gains are recognised in the Statement of Profit and Loss in the year in which they arise.

Actuarial valuation

The liability in respect of all defined benefit plans is accrued in the books of account on the basis of actuarial valuation carried out by an independent actuary using the Projected Unit Credit Method, which recognizes each year of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to build up the final obligation. The obligation is measured at the present value of estimated future cash flows. The discount rates used for determining the present value of obligation under defined benefit plans, is based on the market yields on Government securities as at the Balance Sheet date, having maturity periods approximating to the terms of related obligations. Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive Income.

(I) Finance costs

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

(m) Tax Expenses

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which case, the tax is also recognised in other comprehensive income or equity.

- Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance Sheet date.

- Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

(n) Foreign currencies transactions and translation

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date,

On transition to Ind AS, the Company has elected to exercise the option for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first ind AS financial reporting period as per the previous GAAP.

Thus, exchange differences pertaining to long term foreign currency monetary items that are related to acquisition of depreciable assets are adjusted in the carrying amount of the related fixed assets.

(o) Earnings per share

(i) Basic & Diluted earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company

* by the weighted average number of equity shares outstanding during the financial year

(0) Critical estimates and judgements

The preparation of Financial Statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

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.

(1) Depreciation / amortisation and useful lives of property plant and equipment

Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting period. The useful lives and residual values are based on the Company’s historical experience with similar assets and take into account anticipated technological changes- The depreciation / amortisation for future periods is revised if there are significant changes from previous estimates.

(ii) Recoverability of trade receivable

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

(iii) Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

(iv) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. 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.

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Mar 31, 2015

Not Available

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Mar 31, 2014

1.Basis of Accounting:

The financial statements are prepared under historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAPs), and materially comply with the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

2.Fixed Assets:

Fixed Assets are stated at cost of acquisition/construction net of CENVAT applicable CENVAT credit. The cost includes Purchase price and all other attributable costs of bringing the assets to its working condition for its intended use

3.Depreciation:

a. Depreciation on fixed assets is provided on straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956. No depreciation is charged on fixed assets where cumulative depreciation as on the beginning of year is either equivalent or more than the cost of assets. Individual assets purchased during the year and costing less than Rs.5,000/- are depreciated in full in the year of purchase.

b. Depreciation has been provided on Triple shift working basis.

4.Basis of Valuation of Inventories:

a. Raw Material :At lower of cost or net realizable value

b. Work in Progress :At lower of estimated cost or net realizable value

c. Finished Goods :At lower of cost or net realizable value

d. Consumable, Stores, Oil & Fuel :At lower of cost or net realizable value

5.Recognition of Income and Expenditure:

a. The revenue from sale of goods is recognized at the time of sale of goods.

b. Expenditure is recognized on accrual basis. However, certain income/ expenses which are indeterminable are accounted for as and when settled/ finalized.

6.Retirement & Other Benefits

a. Retirement Benefits The Gratuity and Leave Encashment is provided on yearly basis. The contribution to Provident Fund is made on monthly basis at prescribed rates.

b. Other Benefits The Contribution to E.S.I. Fund is made on monthly basis at prescribed rates. The provision for the payment of Bonus is made as per the applicable rules.

7.Foreign Currency Transactions

Transactions in foreign currencies for import and export of Raw materials, Capital goods and Finished goods are recorded at the rates prevailing on the date of transactions. Exchange gain or loss on conversion of liabilities incurred to acquire capital assets is adjusted to the cost of such assets. Exchange gain or losses on transactions of revenue nature are recognized in the Profit and Loss account.

8.Taxes on Income

Income tax comprises of current tax and deferred tax. The deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date.

9.Earning Per Share:

Basic earning per share is calculated by dividing the net profit for the period attributable to equity shareholders by the number of equity shares outstanding at the year-end.

10.Events Occuring after the Balance Sheet Data

Events occurring after the date of Balance Sheet are considered up to the date of finalization of accounts

11.Forward Contracts

The company uses foreign exchange forward and options contracts to hedge its exposure to movements in foreign exchange rates. The use of these foreign exchange forward and options contracts reduce the risk or cost to the company and the company does not use those for trading or speculation purpose

12.Contingent Liabilities

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as Contingent Liabilities and same are disclosed in Notes on Accounts.

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Mar 31, 2012

1. Basis of Accounting :

The financial statements are prepared under historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAPs), and materially comply with the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

2. Fixed Assets:

Fixed Assets are stated at cost of acquisition/construction net of applicable CENVAT credit. The cost includes Purchase price and all other attributable costs of bringing the assets to its working condition for its intended use.

3. Depreciation:

a. Depreciation on fixed assets is provided pro-rata to the period of use, using the straight-line method based at the rates specified in Schedule XIV to the Companies Act, 1956. No depreciation is charged on fixed assets where cumulative depreciation as on the beginning of year is either equivalent or more than the cost of assets. Individual assets purchased during the year and costing less than Rs.5,000/- are depreciated in full in the year of purchase.

b. Depreciation has been provided on Triple shift working basis.

4. Basis of Valuation of Inventories:

a. Raw Material: At lower of cost or net realizable value.

b. Work In Progress: At lower of estimated cost or net realizable value

c. Finished Goods: At lower of cost or net realizable value

d. Consumable, Stores, Oil & Fuel: At lower of cost or net realizable value.

5. Recognition of Income and Expenditure:

a. The revenue from sale of goods is recognized at the time of sale of goods.

b. Expenditure is recognized on accrual basis. However, certain income / expenses which are indeterminable are accounted for as and when settled / finalized.

6. Retirement & Other Benefits

a. Retirement Benefits

The Gratuity and Leave Encashment is provided on yearly basis. The contribution to Provident Fund is made on monthly basis at prescribed rates.

b. Other Benefits

The Contribution to E.S.I. Fund is made on monthly basis at prescribed rates. The provision for the payment of Bonus is made as per the applicable rules.

7. Foreign Currency Transactions

Foreign currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the Statement of Profit and loss. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

8. Taxes On Income

Income tax comprises of current tax and deferred tax. The deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date.

9. Earnings per share:

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the number of equity shares outstanding at the year-end.

10. Events Occurring After The Balance Sheet Date

Events occurring after the date of Balance Sheet are considered up to the date of finalization of accounts.

11. Forward Contracts

The company uses foreign exchange forward and options contracts to hedge its exposure to movements in foreign exchange rates. The use of these foreign exchange forward and options contracts reduce the risk or cost to the Company and the Company does not use those for trading or speculation purposes.

Effective April1, 2008, the Company adopted AS30, 'Financial Instruments: Recognition and Measurement', to the extent that the adoption did not conflict with existing accounting standards and other authoritative pronouncements of the Company Law and other regulatory requirements.

12. Contingent Liabilities

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as Contingent Liabilities and the same are disclosed in Notes on Accounts.

The company has capital reserves of Rs.26,68,000 as on 3lst March, 2012 which includes capital reserve against State subsidy of Rs.26,00,000 and capital reserve against generator subsidy of Rs.68,000,

During the current year the company has made adjustment as addition to general reserve on account of Minimum Alternative Tax entitlement of Rs. 15,77,878 paid during the previous financial year. The company has transferred hundred percent of the current year profits amounting to Rs. 2,81,59,574 available for distribution to the general reserve.

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Mar 31, 2010

1. Basis of Accounting:

The financial statements are prepared under historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAPs), and materially comply with the mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

2. Fixed Assets:

2.1. Fixed Assets are stated at cost of acquisition/construction net of applicable CENVAT credit. The cost includes. Purchase price and all other attributable costs of bringing the assets to its working condition for its intended Use.

2.2. The cost of acquisition of imported machinery have been adjusted for exchange fluctuations arising due to difference in exchange rate.

2.3. The Company has capitalized the financing cost for the entire tenure of finance taken for setting up the project.

3. Depreciation:

3.1. Depreciation on fixed assets is provided pro-rata to the period of use, using the straight-line method based at the rates specified in Schedule XIV to the Companies Act, 1956. No depreciation is charged on fixed assets where cumulative depreciation as on the beginning of year is either equivalent or more than the cost of assets. Individual assets purchased during the year and costing less than Rs.5,000/- are depreciated in full in the year of purchase.

3.2. Depreciation has been provided on Triple shift working basis.

3.3. Depreciation on additions made during the year has been provided on pro-rata basis.

3.4. Depreciation on Interest Capitalized has been appropriated from General Reserve.

4. Basis of Valuation of Inventories:

RAW MATERIAL

At lower of cost or net realizable value

WORK IN PROGRESS

At lower of estimated cost or net realizable value

FINISHED GOODS

At lower of cost or net realizable value

CONSUMABLE, STORES, oil & fuel At lower of cost or net realizable value

5. Recognition of Income and Expenditure:

5.1. The revenue from sale of goods is recognized at the time of sale of goods.

5.2. Expenditure is recognized on accrual basis. However, certain income / expenses which are indeterminable are accounted for as and when settled / finalized.

6. INVESTMENTS

Investments are stated at Cost.

7. RETIREMENT & OTHER BENEFITS

7.1. Retirement Benefits

The Gratuity and Leave Encashment is provided on yearly basis as per records. The contribution to Provi- dent Fund is made on monthly basis at the prescribed rates.

7.2. Other Benefits

The Contribution to E.S.I. Fund is made on monthly basis at prescribed rates. The provision for the payment of Bonus is made as per the applicable rules.

8. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies for import and export of Raw materials, finished goods and Capital goods are recorded at the rates prevailing on the date of transactions. Exchange gain or loss on conversion of

liabilities incurred to acquire capital assets is adjusted to the cost of such assets. Exchange gain or losses on transactions of revenue nature are recognized in the Profit and Loss account.

9. Taxes on Income

Income tax comprises of current tax and deferred tax. The deferred tax assets and liabilities are recog- nized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the Balance Sheet date.

10. Earning Per Share

Basic earning per share is calculated by dividing the net profit for the period attributable to equity share- holders by the number of equity shares outstanding at the year-end.

11. EVENTS OCCURING AFTER THE BALANCE SHEET DATE

Events occurring after the date of Balance Sheet are considered up to the date of finalization of accounts

12. CONTINGENT LIABILITIES

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent Liabilities and same are disclosed in Notes on Accounts.