Accounting Policies of Sumeru Industries Ltd. Company

Mar 31, 2024

2) Summary of Significant Accounting Policies:

a) Property, Plant and Equipment:

All items of Property, plant and equipment except land are shown at cost,
less accumulated depreciation and impairment, if any. The cost of an
item of property, plant and equipment comprises its cost of acquisition
inclusive of inward freight, import duties, and other non-refundable
taxes or levies and any cost directly attributable to the acquisition /
construction of those items; any trade discounts and rebates are
deducted in arriving at the cost of acquisition.

Subsequent costs are included in the asset''s carrying amount or
recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the
group and the cost of the item can be measured reliably. All other repairs
and maintenance are charged to statement of profit or loss during the
reporting period in which they are incurred.

Gain or losses arising on disposal of property, plant and equipment are
recognised in profit or loss.

Transition to Ind AS

On transition to Ind AS, the company has elected to continue with the
carrying value of all its property, plant and equipment recognized as at
April 01, 2016 measured as per the previous GAAP (Indian GAAP) and
use that carrying value as the deemed cost of property, plant and
equipment.

(b) Depreciation and amortisation:

Depreciation has been provided based on useful life assigned to each
asset in accordance with Schedule II of the Companies Act, 2013 under
Straight Line Method. The residual values are not more than 5% of the
original cost of the asset.

(c) Impairment of assets

At the date of balance sheet, if there are indications of impairment and
the carrying amount of the cash generating unit exceeds its recoverable
amount (i.e. the higher of the fair value less costs of disposal and value in
use), an impairment loss is recognised. The carrying amount is reduced
to the recoverable amount and the reduction is recognised as an
impairment loss in the profit or loss. The impairment loss recognised in
the prior accounting period is reversed if there has been a change in the
estimate of recoverable amount. Post impairment, depreciation is
provided on the revised carrying value of the impaired asset over its
remaining useful life.

(d) Inventories:

The cost of various categories of inventory is determined as follows:

1. Raw material and Packing Materials : At Cost including local taxes (Net
of setoff) or Net realisable

value, whichever is lower.

2. Stock in Process : At Cost or Net realisable value, whichever is lower.

3. Stock of Finished Goods : At Cost or Net realisable value, whichever is
lower.

4. Consumable Stores & Spares : At Cost or Net realisable value,
whichever is lower.

5. Scrap : At Net realisable value

Cost of raw material and packing materials are determined using first in
first out (FIFO) method. Costs of finished goods and stock in process
include cost of raw material and packing materials, cost of conversion
and other costs incurred in bringing the inventories to the present
location and condition.

(e) Revenue recognition:

Revenue is measured at the fair value of the consideration received or
receivable.

The Company recognises sale of goods when the significant risks and
rewards of ownership are transferred to the buyer.

Income recognition for services takes place as and when the services are
performed in accordance with IND AS 115.

Interest Income is accounted on accrual basis and dividend income is
accounted on receipt basis.

(f) Fair value measurement:

The Company measures financial instruments at fair value at each
balance sheet date. Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.

All assets and liabilities for which fair value is measured or disclosed in
the financial statement are categorized within the fair value hierarchy.

(g) Financial Instruments:

Financial assets and liabilities are recognised when the Company
becomes a party to the contractual provisions of the instruments. All the
financial assets and liabilities are measured initially at fair value.
Transaction costs that are directly attributable to the acquisition or issue
of financial asset and financial liabilities (other than financial assets and
liabilities carried at fair value through profit or loss) are added or
deducted from the fair value measured on initial recognition of financial
asset or financial liability.

(h) Financial assets
Classification and Measurement

All the financial assets are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition of financial asset
(other than financial assets carried at fair value through profit or loss) are
added to or deducted from the fair value measured on initial recognition
of financial asset.

Subsequent measurement of a financial assets depends on its
classification i.e., financial assets carried at amortised cost or fair value
(either through other comprehensive income or through profit or loss).
Such classification is determined on the basis of Company''s business
model for managing the financial assets and the contractual terms of the
cash flows.

The Company''s financial assets primarily consists of cash and cash
equivalents, trade receivables, loans to employees and security deposits

etc. which are classified as financial assets carried at amortised cost.
Amortised cost

Assets that are held for collection of contractual cash flows where those
cash flows represent solely payments of principal and interest are
measured at amortised cost. A gain or loss on a financial assets that is
subsequently measured at amortised cost is recognised in profit or loss
when the asset is derecognised or impaired. Interest income from these
financial assets is recognised using the effective interest rate method.
Impairment of financial assets

The Company assesses on a forward looking basis the expected credit
losses associated with its assets carried at amortised cost. For trade
receivables, the Company provides for lifetime expected credit losses
recognized from initial recognition of the receivables.

De-recognition of financial assets
A financial asset is de-recognised only when

- The Company has transferred the rights to receive cash flows from the
financial asset or

- Retains the contractual rights to receive the cash flows of the financial
asset, but assumes a contractual

obligation to pay the cash flows to one or more recipients.

(i) Income recognition
Interest income

Interest income is recognised at contracted rate of interest.

Dividends

Dividends are recognised in profit or loss only when the right to receive
payment is established, it is probable that the economic benefits
associated with the dividend will flow to the Company, and the amount of
the dividend can be measured reliably.

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Mar 31, 2015

1) Basis of Preparation of Financial Statements:-

The financial statements have been prepared to comply in ail material respects with applicable Accounting Standards issued by the Institute of Chartered Accountants of India. The financial statements have been prepared under the historical cost convention on an accrual basis of accounting, in accordance with applicable mandatory accounting standards prescribed under the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.

2) Use of Estimates:-

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

3) Revenue Recognition:-

Sales of products and services (net of service tax) are recognized when significant risks and rewards of ownership of products are passed on to customers or when the service has been provided. Dividend income is recognized when the right to receive dividend is established.

4) Inventories:-

Finished goods inventories are stated at lower of cost and net realizable value, as certified by the management.

5) Fixed Assets:-

Fixed assets are stated at the cost of acquisition less accumulated depreciation and impairment losses, if any. Cost of fixed assets comprises purchase price, duties, levies and any directly attributable cost of bringing the asset to its working condition for the intended use. Borrowing costs related to the acquisition or construction of the qualifying assets for the period up to the completion of their acquisition or construction is capitalized.

6) Depreciation/Amortization:-

Pursuant to the enactment of the Companies Act, 2013 (the Act), the Company has, effective from 1 April, 2014,reassessed the useful life of its fixed assets and has computed depreciation with reference to the useful life of assets as recommended in Schedule II to the Act.

7) Investments:-

Investments that are readily realizable and intended to be held for not more than a yea rare classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

8) Provision, Contingent Liabilities and Contingent Assets: -

Provisions comprise liabilities of uncertain timing or amount. Provisions are recognized when there is a present obligation as a result of past events and it is probabie that there will be an outflow of resources.

Contingent liabilities are disclosed by way of Notes to Accounts. Contingent assets are not recognized in the financial statements.

9) Taxation:-

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. Minimum Alternate Tax (MAT) Credit is recognized as assets only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the profit and loss account and shown as MAT credit entitlement. The company reviews the same at each balance sheet date and writes down the carrying amount of MAT.

Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

10) Segmentreporting:- Identification of segments:

The Company's operating businesses are organized and managed according to the nature of products and predominant source of the risk for the Company is business product, therefore business segment has been considered as primary segment. The analysis of geographical segments is based on the areas in which the Company operates.

Segment policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

11) Earning per share:-

Basic earnings per share are calculated by diving the net profit or loss for the period attributable to equity shareholders after deducting preference dividends and attributable taxes by the weighted average number ot equity shares outstanding during the period.

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, if any.

12) Impairment:-

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets' net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. For the purpose of accounting of impairment, due consideration is given to revaluation reserve, if any. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful lives.

A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

13) 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 respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

14) Leases

Leases, where the lessor retains substantially all the risks and rewards incidental to the ownership are classified as operating leases. Operating lease payments are recognized as an expense in Profit and Loss account on Straight Line basis over the lease term.

15) Employee benefits:-

Retirement benefits in the form of Provident Fund contributed to Statutory Provident Fund is a defined contribution scheme and the payments are charged to the Profit and Loss Account of the year when the payments to the respective funds are due. Superannuation Fund and Employees'State Insurance Corporation (ESIC) are defined contribution schemes and the contributions are charged to the Profit and Loss Account of the year when the contri butions to the respective funds are due.

The company does not have gratuity Liability.

16) Foreign Currency Transactions: -

Transactions in foreign currencies are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

17) Project Development Expenses Pending Adjustment

Expenditure incurred during development and preliminary stages of the Company's new projects are carried forward. However, if any project is abandoned, the expenditure relevant to such project is written off through the natural heads of expenses in the year in which it is so abandoned.

18) Other Accounting Policies:-

These are consistent with the generally accepted accounting practices. Accounting standards which are not applicable are not reported.

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Mar 31, 2013

1) Basis of preparations of financial statements;-

The financial statements have been prepared to comply in all material respects with applicable Accounting standards'' issued by the institute of Chartered Accountants of India The financial statements have been prepared under the historical cost convention on an accrual basis of accounting in accordance with applicable mandatory accounting standards prescribed under the companies (Accounting standards) Rules 2006 and the relevant provisions of the companies Act,1956.

2) Use of Estimates:-

The preparation of financial statements in conformity with generally accepted accounting principles Requires managements to make estimates and assumptions that affect the repeated amounts of assets and liability and the disclosure of contingent liability as at the date of the financial statements and reported amounts of revenues and expresses during the reporting period Actual results could differ from these estimates Any revision to according estimates is recognized prospectively in current and future periods.

3) Revenue Recognition:-

Sales of products and services (net of service tax ) are recognized when significant risks and rewards of ownership of products are passed on to customers or when the service has been provided income is recognized when the right to receive divided is established.

6) Depreciation/Amortization:-

Depreciation on assets is provided on the straight line method at the rates manner prescribed in schedule XIV to the companies Act,1956 which management considers as being representative of useful economic lives of such assets.

7) Investments;-

Investments that are readily realizable and interred to be held for not than a year are classified as current investments All other investments are classified as long term investments current carried at lower of cost and fair value long term investments are carried at cost However proven for diminution in value is made to recognize a decline other than temporary in the value of the investments.

8) Provision contingent Liabilities contingent Assets.

Provisions comprise liabilities of uncertain timing or amount provisions are recognized when there is a present obligations as a result of past events and it is probable that there will be on outflow of resources.

Contingent liabilities are disclosed by way of Notes to Accounts

Contingent assets are not recognized in the financial statements.

9) Taxation;-

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income -tax Act,19561 Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Minimum Alternate Tax (MAT) Credit is recognized as assets only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period in the year in which MAT credit note issued by the institute of shown as MAT credit entitlement The company reviews the same at each balance sheet date and writes down the carrying amount of MAT.

Credit Entitlement to the extent there is no longer convincing evidence to the effect that company will pay normal income tax during the specified period.

10) Segment reporting;-

Identification of segments

The company''s operating business are organized and managed according to the nature of products and predominates source of the risk for the company is business product therefore business segment has been considered as primary segment the analysis of geographical segments is based on the areas in which the

11) Earnings per share;-

For the purpose of calculating diluted 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 if any.

12) Impairment;-

The carrying amounts of sets are reviewed at each balances sheet date if there is any indication of impairment based on internal/external factors An impairment loss is recognized where the carrying amount of an assets revelation reserve if any after impairment depreciation is provided on the revised carrying amount of the assets over its remaining useful lives.

13) Borrowing costs;-

Borrowing costs directly attributable to the acquisition construction or production of an assets 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 respective assets All other borrowing costs are expensed in the period they occur. Borrowing costs consist of internet and other costs that an entity incurs in connection with the borrowing of funds.

14) Leases;- N.A

15) employee BENEFITS;-

RETIREMENT BENEFITS IN THE FROM OF PROVIDENT fund contributed to statutory provident fund is a defined contribution scheme and the payments are charged to the profit and loss Account of the year when the payments to the respective funds are due. There are no obligations for contribution payable to provided Fund Authorities.,

Superannuation fund and Employees state Insurance corporation (ESIC) are defined contribution schemes and the contributions to the respective funds are due there are no other obligations for the contributions payable to the respective funds.

17) Project Development Expenses pending Adjustment

Expenditure incurred during development and preliminary stages of the company''s new projects are carried forward However if any project is abandoned the expenditure relevant to such project is written off through the natural heads of expenses in the year in which it is o abandoned.

18) Other Accounting policies;-

These are consistent with the generally accepted accounting practices ACCOUNTING STANDARDS WHICH ARE NOT APPLICABLE ARE NOT REPORTED.

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Mar 31, 2011

1) Basis of Preparation of Financial Statements:-

The financial statements have been prepared to comply in ail material respects with applicable Accounting Star issued by the Institute of Chartered Accountants of India. The financial statements have been prepared und historical cost convention on an accrual basis of accounting, in accordance with applicable mandatory accounting standards prescribed under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions Companies Act, 1956.

2) Use of Estimates:-

The preparation of financial statements in conformity with generally accepted accounting principles re management to make estimates and assumptions that affect the reported amounts of assets and liabilities are disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenue expenses during the reporting period. Actual results could differ from these estimates. Any revision to accord estimates is recognized prospectively in current and future periods.

3) Revenue Recognition:-

Sales of products and services (net of service tax) are recognized when significant risks and rewards of own* or products are passed on to customers or when the service has been provided. Dividend income is recognized when the right to receive dividend is established. Interest income is recognized on the time proportion method.

4) Inventories:-

Finished goods inventories are stated at lower of cost and net realizable value, as certified by the management

5) Fixed Assets:-

Fixed assets are stated it the cost of acquisition less accumulated depreciation and impairment losses if any of fixed assets comprises purchase price, duties, levies and any directly attributable cost of bringing the as its working condition for the intended use. Borrowing costs related to the acquisition or construction of the quall assets for the period up to the completion of their acquisition or construction is capitalized.

6) Depreciation/Amortization: -

Depreciation on assets is provided on the straight line method at the rates and in the manner prescribes Schedule XIV to the Companies Act, 1956, which management considers as being representative of useful decor lives of such assets.

7) Investments:-

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

8) Provision, Contingent Liabilities and Contingent Assets:-

Provisions comprise liabilities of uncertain timing or amount. Provisions are recognized when there is a pr obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are disclosed by way of Notes to Accounts. Contingent assets are not recognized in the financial statements.

9) Taxation: -

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to setoff current tax assets against current tax liabilities and taxes on income levied by same governing taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, ail deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

Minimum Alternate Tax (MAT) Credit is recognized as an assets only when and to the extent theres convincing evidence that the company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained 'n Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the profit and loss account and shown as MAT credit entitlement. The company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

10) Segment reporting:- Identification of segments:

The Company's operating businesses are organized and managed according to the nature of products and predominant source of the risk for the Company is business product, therefore business segment has; been considered as primary segment. The analysis of geographical segments is based on the areas in which the Company operates.

Segment policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

11) Earning per shares- Basic earnings per share are calculated by diving the net profit or loss for the period attributable to equity shareholders after deducting preference dividends and attributable taxes by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares, if any.

12) Impairment:-

The carrying amounts of assets are reviewed at each balance sheet date If there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets' net selling price and value in use In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. For the purpose of accounting of impairment, due consideration is given to revaluation reserve, if any. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful lives. A previously recognized impairment loss is increased or reversed depending on changes in circumstances However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

13) Borrowing costs:-

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

14) Leases:- N.A.

15) Employee benefits:-

Retirement benefits in the form of Provident Fund contributed to Statutory Provident Fund is a defined contribute. Scheme and the Payments are charged to the Profit and Loss Account of the year when the to the respects funds are due. There are no obligations for contribution payable to Provident Fund Authorities. Superannuation Fund and Employees state Insurance Corporation (ESIC) are defined contribution schemes and the contributions are charged to the Profit and Loss Account of the year when the contribute to the respected funds are due. There are no other obligations for the contribution payable to the respective funds. The company does not have gratuity Liability.

16) Foreign Currency Transactions:- N.A.

17) Project Development Expenses Pending Adjustment

Expenditure incurred during development and preliminary stages of the Company's new projects are carried forward. However, if any project is abandoned, the expenditure relevant to such Project is written off though the natural heads of expenses in the year in which it is so abandoned.

18) Other Accounting Policies:- These are consistent with the generally accepted accounting practices. Accounting standards which are in applicable are not reports.

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Mar 31, 2010

1) Basis of Preparation of Financial Statements:-

The financial statements have been prepared to comply in all material respects with applicable Accounting Standards issued by the Institute of Chartered Accountants of India. The financial statements have been prepared under the historical cost convention on an accrual basis of accounting, in accordance with applicable mandatory accounting standards prescribed under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

2) Use of Estimates:-

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

3) Revenue Recognition:-

Sales of products and services (net of service tax) are recognized when significant risks and rewards of ownership of products are passed on to customers or when the service has been provided.

Dividend income is recognized when the right to receive dividend is established.

Interest income is recognized on the time proportion method.

4) Inventories:-

Finished goods inventories are stated at lower of cost and net realizable value, as certified by the management.

5) Fixed Assets:-

Fixed assets are stated at the cost of acquisition less accumulated depreciation and impairment losses, if any. Cost of fixed assets comprises purchase price, duties, levies and any directly attributable cost of bringing the asset to its working condition for the intended use. Borrowing costs related to the acquisition or construction of the qualifying assets for the period up to the completion of their acquisition or construction is capitalized.

6) Depreciation/Amortization:-

Depreciation on assets is provided on the straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956, which management considers as being representative of useful economic lives of such assets.

7) Investments:-

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

8) Provision, Contingent Liabilities and Contingent Assets:-

Provisions comprise liabilities of uncertain timing or amount. Provisions are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Contingent liabilities are disclosed by way of Notes to Accounts.

Contingent assets are not recognized in the financial statements.

9) Taxation:-

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

Minimum Alternate Tax (MAT) Credit is recognized as an assets only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the profit and loss account and shown as MAT credit entitlement. The company reviews the same at each balance sheet date and writes down the carrying amount of MAT.

Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

10) Segment reporting:- Identification of segments:

The Companys operating businesses are organized and managed according to the nature of products and predominant source of the risk for the Company is business product, therefore business segment has been considered as primary segment. The analysis of geographical segments is based on the areas in which the Company operates.

Segment policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

11) Earning per share:-

Basic earnings per share are calculated by diving the net profit or loss for the period attributable to equity shareholders after deducting preference dividends and attributable taxes by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares, if any.

12) Impairment:-

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. For the purpose of accounting of impairment, due consideration is given to revaluation reserve, if any. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful lives.

A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

13) 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 respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

14) Leases:- N.A.

15) Employee benefits:-

Retirement benefits in the form of Provident Fund contributed to Statutory Provident Fund is a defined contribution scheme and the payments are charged to the Profit and Loss Account of the year when the payments to the respective funds are due. There are no obligations for contribution payable to Provident Fund Authorities.

Superannuation Fund and Employees State Insurance Corporation (ESIC) are defined contribution schemes and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due. There are no other obligations for the contribution payable to the respective funds.

The company does not have gratuity Liability.

16) Foreign Currency Transactions:- N.A.

17) Project Development Expenses Pending Adjustment

Expenditure incurred during development and preliminary stages of the Companys new projects are carried forward. However, if any project is abandoned, the expenditure relevant to such project is written off through the natural heads of expenses in the year in which it is so abandoned.

18) Other Accounting Policies:-

These are consistent with the generally accepted accounting practices.