Accounting Policies of Surani Steel Tubes Ltd. Company

Mar 31, 2025

II. Summary of Significant Accounting Policies

1. Accounting Convention

The standalone financial statements of the Company have
been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) to comply
with the Accounting Standards specified under Section 133
of the Companies Act, 2013, read with the Companies
(Accounting Standards) Rules, 2021 and the relevant
provisions of the Companies Act, 2013 (the "Act”), as
applicable, Accounting Standards (‘AS'')/guidance notes
issued by the Institute of Chartered Accountants of India
(ICAI) and other generally accepted accounting principles
in India. The financial statements have been prepared on
accrual basis under the historical cost convention. The
accounting policies adopted in the preparation of the
financial statements are consistent with those followed in
the previous year.

As per MCA Notification dated 16th February 2015,
Companies whose shares are listed on SME Platform as
referred in chapter XB of SEBI (issue of capital disclosure
requirement) regulations 2009 are exempted from
compulsory requirement of adoption of Indian Accounting
Standards (IND AS). As the company is covered under
exempted category, it has not adopted IND AS for
Preparation of standalone financial statements.

2. Use of Estimates

The preparation of standalone financial statements in
conformity with generally accepted principles requires
management to make estimates and assumptions that
effect the reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the
financial statements and the results of operations during
the reporting period end. Although these estimates are
based upon management''s best knowledge of current
events and actions, actual results could differ from these
estimates.

3. Property, Plant, Equipment and Depreciation

Property, plant and equipment except Land are stated at
cost less accumulated depreciation.

Depreciation on additions or sale/ discard of asset is being
provided on pro-rata basis from the date on which such
asset is ready to be put to use or date of sale/ discard.

Depreciation is provided on Roll-sets on the basis of useful
life of three years on Straight Line Method (‘SLM'') and
others as specified in schedule II of the Act on pro rata basis
from the date assets put to use.

Property, plant and equipment are acquired by the
Company are reported at acquisition value, with
deductions for accumulated depreciation and impairment
losses, if any. The acquisition value includes the purchase
price (excluding refundable taxes), and expenses directly
attributable to assets to bring it to the factory and in the
working condition for its intended use. Where the
construction or development of any such assets requiring a
substantial period of time to set up for its intended use, is
funded by borrowings if any, the corresponding borrowing
cost are capitalized up to the date when the asset is ready
for its intended use.

4. Intangible Assets

Intangible assets are reported at acquisition value with
deductio ns for accumulated amortization and any
impairme nt losses. Capital work in progress includes cost
of assets at sites and construction expenditure as well as
Trial Run Production Loss/ Gain.

Computer software costs capitalized are amortized on a
systematic basis over the estimate of their useful life,
commencing from the date the asset is available to the
Company for its use.

5. Inventories

Raw materials, stores, spares, consumables and finished
goods are valued at cost or net realizable value, whichever
is lower.

The cost for raw materials, stores, spares, and
consumables, has been arrived at using First in First Out
(‘FIFO'') method, net of input tax credit availed.

The cost of finished goods is determined taking material
cost (net of input tax credit availed), labour and relevant
appropriate overheads.

Waste and scrap are valued at net realisa ble value.

The cost for traded goods arrived at using First in First Out
(‘FIFO'') method, net of input tax credit availed.

6. 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 stated at
lower of cost and net realizable value. A provision for
diminution is made to recognize a decline, other than
temporary, in the value of Long-term Investments.

7. Revenue Recognition

Revenue is recognised to the extent that it is probable that
the economic benefits will flow to the Company and the
revenue can be reliably measured. Sales return has been
recognized in this year, it was not recognized in previous
year.

a) Sale of Goods and Services

Revenue from sales of goods is recognized when all
the significant risks and rewards of ownership are
transferred to the buyer and the Company retains no
effective control of the goods transferred to a degree
usua lly associated with ownership; and no significant

uncertainty exists regarding the amount the
consideration that will be derived from the sales of
goods. Revenue from sale of service is recognised on
the basis of completion of services. No significant
uncertainty exists regarding the amount of the
consideration that will be derived from the service
performed and its ultimate collection. Revenue, as
disclosed, are exclusive of goods and services tax
(GST).

b) Dividend

Dividend income is recognized when the company''s
right to receive dividend is established by the
reporting date.

c) Interest

Interest income is recognized on accrual basis on a
time proportion basis taking into account the amount
outstanding and the rate applicable. Interest income
is included under the head “Other Income” in the
statement of profit and loss.

8. Employee Benefits

a) Short-term Employee Benefits

Short-term employee benefits are recognised as
expense in the statement of profit and loss of the year
in which the related service is rendered at the
undiscounted amount as and when it accrues.

The Company is providing for the bonus liability at
the year end and is paid to the eligible employees in
the subsequent year.

b) Long-term Employee Benefits

Long-term employees benefits both through defined
contribution plans and defined benefit plans are
recognised in the financial statements.

Defined Contribution Plans
Employee Provident Fund (EPF)

The Company makes contribution to statutory
provident fund in accordance with Employees''
Provident Fund and Miscellaneous Provisions Act,
1952. The plan is a defined contribution plan and
contribution paid or payable is recognized as an
expense in the period in which services are rendered
by the employee.

Employee State Insurance (ESI)

The Company makes contribution to Employee State
Insurance scheme in accordance with Employees''
State Insurance Act, 1948. The scheme is a self¬
financing social security and health insurance scheme
for workers and contribution paid or payable is
recognized as an expense in the period in which
services are rendered by the employee.

Defined Benefit Plans
Gratuity

Gratuity is a post-employment benefit and is in the
nature of defined benefit plan. The liability
recognized in the balance sheet in respect of gratuity

is the present value of the defined benefit obligation
at the balance sheet date together with adjustments
for unrecognized actuarial gains or losses and past
service costs. The defined benefit obligation is
calculated annually by an independent actuary using
the projected unit credit method.

Actuarial gains and losses arising from adjustments
and changes in actuarial assumptions are charged or
credited to the Profit and loss account in the year in
which such gains or losses arise.

Leave Encashment

Leave Encashment are post-employment benefit and
are in the nature of defined benefit plans. The
liability recognized in the balance sheet in respect of
compensated absences is the present value of the
defined benefit obligation at the balance sheet date
together with adjustments for unrecognized
actuarial gains or losses and past service costs. The
defined benefit obligation is calculated annually by
an independent actuary using the projected unit
credit method.

Actuarial gains and losses arising from adjustments
and changes in actuarial assumptions are charged or
cred ited to the Profit and loss account in the year in
whic h such gains or losses arise.

9. Impairment of Assets

An asset is considered as impaired in accordance with
Accounting Standard 28 on impairment of assets when at
balance sheet date there are indications of impairment
and the carrying amount of the asset exceeds its
recoverable amount. The carrying amount is reduced to
the recoverable amount and the reduction is recognized
as an impairment loss in the profit and loss account.

10. Earning per Share

The Company reports basic and diluted Earnings Per Share
(EPS) in accordance with Accounting Standard 20 ‘Earnings
Per Share''. Basic EPS is computed by dividing the net profit
or loss after tax for the year attributable to equity
shareholders by the weighted average number of equity
shares ou tstanding during the year. Diluted earnings per
share is computed by dividing the net profit or loss after
tax for the year (after adjustment for diluted earning)
attributable to equity shareholders by the weighted
average number of equity shares outstanding during the
year.

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Mar 31, 2024

I. Corporate Information

Surani Steel Tubes Limited (the ''Company'') incorporated on 31st July 2012 and domiciled in India and limited by shares incorporated, having Corporate Identity Number L27109GJ2012PLC071373, under the provisions of the Companies Act. The equity shares of the Company are listed on SME Platform of National Stock Exchange, as referred in chapter XB of SEBI (issue of capital disclosure requirement) regulations 2009. The Company is engaged in the business of ''manufacturing ERW MS Pipes and Trading of MS Pipe''

II. Summary of Significant Accounting Policiesi) Basis of Preparation

The financial statements are prepared as per historical cost convention and in accordance with the Generally Accepted Accounting Principles (GAAP) in India, Section 133 of the Companies Act, 2013 (the ''Act'') and the applicable Accounting Standards read with the Companies (Accounting Standards) Rules 2021. The company follows mercantile systems of accounting and recognised income and expenditures on accrual basis.

As per MCA Notification dated 16th February 2015, Companies whose shares are listed on SME Platform as referred in chapter XB of SEBI (issue of capital disclosure requirement) regulations 2009 are exempted from compulsory requirement of adoption of Indian Accounting Standards (IND AS). As the company is covered under exempted category, it has not adopted IND AS for Preparation of financial statements.

ii) Use of Estimates

The preparation of financial statements in conformity with generally accepted principles requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

iii) Property, Plant, Equipment and Depreciation

Property, plant and equipment except Land are stated at cost less accumulated depreciation.

Depreciation on additions or sale/ discard of asset is being provided on pro-rata basis from the date on which such asset is ready to be put to use or date of sale/ discard.

Depreciation is provided on Roll-sets on the basis of useful life of three years on Straight Line Method (''SLM'') and others as specified in schedule II of the Act on pro rata basis from the date assets put to use.

Property, plant and equipment are acquired by the Company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any. The acquisition value includes the purchase price (excluding refundable taxes), and expenses directly attributable to assets to bring it to the factory and in the working condition for its intended use. Where the construction or development of any such assets requiring a substantial period of time to set up for its intended use, is funded by borrowings if any, the corresponding borrowing cost are capitalized up to the date when the asset is ready for its intended use.

iv) Intangible Assets

Intangible assets are reported at acquisition value with deductions for accumulated amortization and any impairment losses. Capital work in progress includes cost of assets at sites and construction expenditure as well as Trial Run Production Loss/ Gain.

Computer software costs capitalized are amortized using Straight Line Method (''SLM'') on the basis of useful life specified in Schedule II to the Act.

v) Inventories

Raw materials, stores, spares, consumables and finished goods are valued at cost or net realizable value, whichever is lower.

The cost for raw materials, stores, spares, and consumables, has been arrived at using First in First Out (''FIFO'') method, net of cenvat credit and input tax credit availed.

The cost of finished goods is determined taking material cost (net of cenvat credit and input tax credit availed), labour and relevant appropriate overheads.

Waste and scrap are valued at net realisable value.

The cost for traded goods arrived at using First in First Out (''FIFO'') method, net of cenvat credit and input tax credit availed.

vi) 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 stated at lower of cost and net realizable value. A provision for diminution is made to recognize a decline, other than temporary, in the value of Long-term Investments.

vii) Revenue Recognitiona) Sale of Goods

Sales are stated net of excise duty, VAT, GST and sales return, if any. Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on dispatch of goods from the premises of the Company.

b) Dividend

Dividend income is recognized when the company''s right to receive dividend is established by the reporting date.

c) Interest

I nterest income is recognized on accrual basis on a time proportion basis taking into account the amount outstanding and the rate applicable. Interest income is included under the head "Other Income" in the statement of profit and loss.

viii) Employee Benefits

a) Short-term Employee Benefits

Short-term employee benefits are recognised as expense in the statement of profit and loss of the year in which the related service is rendered at the undiscounted amount as and when it accrues.

The Company is providing for the bonus liability at the year end and is paid to the eligible employees in the subsequent year.

b) Long-term Employee Benefits

Long-term employees benefits both through defined contribution plans and defined benefit plans are recognised in the financial statements.

Defined Contribution Plans

Employee Provident Fund (EPF)

The Company makes contribution to statutory provident fund in accordance with Employees'' Provident Fund and Miscellaneous Provisions Act, 1952. The plan is a defined contribution plan and contribution paid or payable is recognized as an expense in the period in which services are rendered by the employee.

Employee State Insurance (ESI)

The Company makes contribution to Employee State Insurance scheme in accordance with Employees'' State Insurance Act, 1948. The scheme is a self-financing social security and health insurance scheme for workers and contribution paid or payable is recognized as an expense in the period in which services are rendered by the employee.

Defined Benefit Plans

Gratuity

Gratuity is a post-employment benefit and is in the nature of defined benefit plan. The liability recognized in the balance sheet in respect of gratuity is the present value of the defined benefit obligation at the balance sheet date together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from adjustments and changes in actuarial assumptions are charged or credited to the Profit and loss account in the year in which such gains or losses arise.

Leave Encashment

Leave Encashment are post-employment benefit and are in the nature of defined benefit plans. The liability recognized in the balance sheet in respect of compensated absences is the present value of the defined benefit obligation at the balance sheet date together with adjustments for unrecognized actuarial gains or losses and

past service costs. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from adjustments and changes in actuarial assumptions are charged or credited to the Profit and loss account in the year in which such gains or losses arise.

ix) Impairment of Assets

An asset is considered as impaired in accordance with Accounting Standard 28 on impairment of assets when at balance sheet date there are indications of impairment and the carrying amount of the asset exceeds its recoverable amount. The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the profit and loss account.

x) Earning per Share

The Company reports basic and diluted Earnings Per Share (EPS) in accordance with Accounting Standard 20 ''Earnings Per Share'' Basic EPS is computed by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit or loss after tax for the year (after adjustment for diluted earning) attributable to equity shareholders by the weighted average number of Equity shares outstanding during the year.

xi) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving a substantial degree of estimation in measurement 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 not recognized but are disclosed in the accounts by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.

xii) Foreign Currency Transactions

All transactions in foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions taken place. Exchange differences arising on foreign currency transactions are recognized as income or expense in the period in which they arise.

xiii) Taxes on Income

Tax expense for a year comprises of current tax, deferred tax. Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provisions of the Income-tax Act, 1961.

Deferred tax reflects 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. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable or virtual certainty as the case may be, that the asset will be realized in future.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability is considered as an asset if there is convincing evidence that the company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance sheet when it is probable that future economic benefit associated with it will flow to the Company.

xiv) Cash Flow statement

The cash flow statement is prepared by the indirect method set out in Accounting standard 3 (AS 3) on "Cash flow statement" and present the cash flow by operating, investing and financing activities of the Company.

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

xv) Goods and Service Tax Credit

Input Tax Credit is accounted for on accrual basis on purchase of eligible inputs, capital goods and services.

Interest and other costs in connection with the borrowings of the funds to the extents related/ attributed to the acquisition/ construction of qualifying assets are capitalized up to the date when such assets are ready for their intended use and other borrowing cost are charged to profit and loss statement.

xvi) Government Grant

Grants and subsidies from the government are recognized when there is reasonable assurance that

a. The company will comply with the conditions attached to them, and

b. The grant/ subsidy will be received.

Grant received against specific property, plant and equipment are adjusted to the cost of the assets and those to the nature of promoter''s contribution are credited to Capital reserve. Revenue grants are recognized as income on a systematic basis in the

statement of profit and loss in accordance with the related scheme and in the period in which these are accrued.

xvii) Research and Development

Revenue expenditure, including overheads on Research and Development, is charged out as an expense through the natural heads of accounts in the year in which incurred. Expenditure which results in creation of capital asset is taken as property, plant and equipment and depreciation is provided on such assets as are depreciable.

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Mar 31, 2023

1 Significant Accounting Policies

i) Basis of Prepration :

The Financial Statements are prepared as per historical cost convention and in accordance with the Generally Accepted Accounting Principles (GAAP) in India, Section 133 of the Companies Act, 2013 and the applicable Accounting Standards read with rule 7 of the Companies (Accounts) Rules 2014The company follows mercantile systems of accounting and recognised income and expenditures on accrual basis.

As per MCA Notification dated 16 th February 2015, Companies whose shares are listed on SME Platform as referred in chapter XB of SEBI (issue of capital disclosure requirement) regulations 2009 are exempted from compulsory requirement of adoption of IND AS. As the company is covered under exempted catagory, it has not adopted IND AS for Preparation of Financial Results.

ii) Use of Estimates :

The preparation of financial statements in conformity with generally accepted principles requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

iii) Property ,Plant , Equipment & Depreciation : Property, Plant, Equipment except Land are stated at cost less accumulated depreciation.

Depreciation on additions or sale/discard of asset is being provided on pro-rata basis from the date on which such asset is ready to be put to use or date of sale/discard.

Depreciation is provided on Roll-sets on the basis of useful life of three years on Straight Line Method (''SLM'') as specified in schedule II of the Companies Act, 2013 on pro rata basis from the date assets put to use.

Tangible assets are acquired by the company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any. The acquisition value includes the purchase price (Excluding refundable Taxes), and expenses directly attributable to assets to bring it to the factory and in the working condition for its intended use. Where the construction or development of any such assets requiring a substantial period of time to set up for its intended use, is funded by borrowings if any, the corresponding borrowing cost are capitalized up to the date when the asset is ready for its intended use. Computer software costs capitalized are amortized using Straight Line Method (''SLM'') on the basis of useful life specified in Schedule II to the Companies Act, 2013. Intangible assets are reported at acquisition value with deductions for accumulated amortization and any

Capital work in progress includes cost of assets at sites and construction expenditure as well as Trial Run Production Loss/Gain.

iv) Inventories :

Raw Materials, Stores, spares, consumables and Finished Goods are valued at cost or net realizable value, whichever is lower. The cost is ascertained using FIFO method.

The cost for Raw Materials, Stores, spares, consumables, has been arrived at using FIFO method, net of cenvat credit & Input Tax Credit availed.

The cost of Finished Goods is determined taking material cost (net of cenvat credit & Input Tax Credit availed), labour and relevant appropriate overheads.

Waste & scrap are valued at Net realisable Value.

The cost for Traded Goods arrived at using FIFO method, net of cenvat credit & Input Tax Credit availed.

v) 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 stated at lower of cost and net realizable value. A provision for diminution is made to recognize a decline, other than temporary, in the value of Long-term Investments.

vi) Revenue Recognition :

A) Sale of Goods.

Sales are stated net of Excise duty, VAT, GST and Sales return, if any. Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on dispatch of goods from the premises of the company.

B) Dividend income is recognized when the company''s right to receive dividend is established by the reporting Date.

C) Interest income is recognized on accrual basis on a time proportion basis taking into Account the Amount outstanding and the rate applicable. Interest income is included under the head "Other Income" in the statement of profit and loss.

vii) Employee Benefits :

a) Short Term Employee Benefits

Short-term employee benefits are recognised as expense in the Statement of Profit & Loss of the year in which the related service is rendered at the undiscounted amount as and when it accrues As regards Liability towards Leave encashment, the employees have the option of enchasing or availing the unaveiled leave. The company measures the expected cost of such leave as the additional amount that it expects to pay as a result of the unused entitlements that has accumulated at the reporting date and makes provision as short term employee benefit.

b) Long Term Employee Benefits

Long term employees benefits and postemployment benefits both funded and nonfunded are recognised as expenses in the statement of Profit and Loss of the year in which the related services is rendered based on actuarial valuation. Companys Contribution towards provident fund are accounted for at pre-determined rates and deposited in to an EPFO.

Gratuity is accounted for on the basis of actuarial valuation.

The management is also of the opinion that the payment of Pension Act and Employees State Insurance Act is not applicable to the Company.

viii) Impairment of Assets :

An asset is considered as impaired in accordance with Accounting Standard 28 on impairment of Assets when at balance sheet date there are indications of impairment and the carrying amount of the asset exceeds its recoverable amount. The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the profit and loss account.

ix) Earning per Share :

The company reports basic and diluted Earnings Per Share (EPS) in accordance with Accounting Standard 20 on Earnings Per Share. Basic EPS is computed by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of Equity shares outstanding during the year. Diluted Earnings Per Share is computed by dividing the net profit or loss after tax for the year(after adjustment for diluted earning) attributable to equity shareholders by the weighted average number of Equity shares outstanding during the year.

x) Provisions, Contingent Liabilities and Contingent Assets :

Provisions involving a substantial degree of estimation in measurement 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 not recognized but are disclosed in the accounts by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.

xi) Foreign Currency Transactions :

All transactions in foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions taken place. Exchange differences arising on foreign currency transactions are recognized as income or expense in the period in which they arise.

xii) Taxes on Income :

Tax expense for a year comprises of current tax, deferred tax. Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provisions of the Income Tax Act, 1961. Deferred tax reflects 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. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable or virtual certainty as the case may be, that the asset will be realized in future. Minimum Alternate tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability is considered as an asset if there is convincing evidence that the company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance sheet when it is probable that future economic benefit associated with it will flow to the company.

xiii) GOODS AND SERVICE TAX CREDIT

Input Tax Credit is accounted for on accrual basis on purchase of eligible inputs, capital goods and services.

xiv) Borrowing cost

Interest and other costs in connection with the borrowings of the funds to the extents related/attributed to the acquisition/construction of qualifying fixed assets are capitalized up to the date when such assets are ready for their intended use and other borrowing cost are charged to profit and loss statement.

xv) Government Grants

Grants and subsidies from the government are recognized when there is reasonable assurance that

I. The company will comply with the conditions attached to them, and

II. The grant/subsidy will be received.

Grant received against specific Fixed Assets are adjusted to the cost of the Assets and those to the nature of Promoter''s contribution are credited to Capital reserve. Revenue grants are recognized as income on a systematic basis in the Statement of Profit and loss in accordance with the related scheme and in the period in which these are accrued.

xvi) Cash Flow statement

The cash flow statement is prepared by the indirect method set out in Accounting standard 3 (As-3) on "Cash flow statement" and present the cash flow by operating, investing & financing Activities of the company.

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

xvii) Research and Development

Revenue expenditure, including overheads on Research and Development, is charged out as an expense through the natural heads of accounts in the year in which incurred. Expenditure which results in creation of capital asset is taken as Fixed Assets and depreciation is provided on such assets as are depreciable.