Accounting Policies of Swadeshi Industries & Leasing Ltd. Company

Mar 31, 2024

A. SIGNIFICANT ACCOUNTING POLICIES.

1. Basis of preparation and presentation.

The financial statements of the Company have been prepared to comply in all material respects with the
Indian Accounting Standards ("Ind AS") notified under the Companies (Indian Accounting Standards)
Rules, 2015 The financial statements have been prepared under the historical cost convention with the
exception of certain financial assets and liabilities which have been measured at fair value, on an accrual
basis of accounting. All the assets and liabilities have been classified as current and non-current as per
normal operating cycle of the Company and other criteira set out in as per the guidance set out in
Schedule III to the Act. Based on nature of services, the Company ascertained its operating cycle as 12
months for the purpose of current and non-current classification of asset and liabilities. The Company’s
financial statements are reported in Indian Rupees, which is also the Company’s functional currency.

B. Use of Estimates:

The preparation of the financial statements, in conformity with the Ind AS, requires the management to
make estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial
statements and the results of operation during the reported period. Although these estimates are based
upon management’s best knowledge of current events and actions, actual results could differ from these
estimates which are recognised in the period in which they are determined.

i) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year. The Company based its assumptions and estimates on
parameters available when the financial statements were prepared. Existing circumstances and
assumptions about future developments, however, may change due to market changes or circumstances
arising that are beyond the control of the Company. Such changes are reflected in the financial
statements in the period in which changes are made and, if material, their effects are disclosed in the
notes to the financial statements.

ii) Deferred tax assets.

In assessing the realisability of deferred income tax assets, management considers whether some portion
or all of the deferred inoome tax assets will not be realized. The ultimate realization of deferred income
tax assets is dependent upon the generation of future taxable income during the periods in which the
temporary differences become deductible. Management considers the scheduled reversals of deferred
income tax liabilities, projected future taxable income, and tax planning strategies in making this
assessment. Based on the level of historical taxable inoome and projections for future taxable income
over the periods in which the deferred income tax assets are deductible, management believes that the
Company will not realize the benefits of those deductible differences in the near future. The amount of the
deferred inoome tax assets considered realizable, however, could be reduced in the near term if
estimates of future taxable income during the carry forward period are reduced.

iii) Provisions

Provisions and liabilities are recongnised 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 flow can be

realiably estimated .The timing of recongnition and quantification of the liability require application of
judgement to the existing facts and circumstances which can be subject to change. The carrying amounts
of provisions and liabilities are reviewed regualarly and revised to take account of changing the facts and
circumstances.

C. Property, Plant and Equipment

i) Tangible Assets

Property, Plant and Equipment are stated at cost of acquisition including attributable interest and
finance costs, if any, till the date of acquisition/ installation of the assets less accumulated depreciation
and accumulated impairment losses, if any. Subsequent expenditure relating to Property, Plant and
Equipment is capitalised 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. All other repairs and
maintenance costs are charged to the Statement of Profit and Loss as incurred. The cost and related
accumulated depreciation are eliminated from the financial statements, either on disposal or when
retired from active use and the resultant gain or loss are recognised in the Statement of Profit and
Loss.,Capital work-in-progress, representing expenditure incurred in respect of assets under
development and not ready for their intended use, are carried at cost. Cost includes related acquisition
expenses, construction oost, related borrowing cost and other direct expenditure.

ii) Intangible Assets

Intangible assets includes software which are not integral part of the hardware are stated at cost less
accumulated amortisation. Intangible assets under development represents expenditure incurred in
respect of softwares under devlopment and are carried at cost. Assets acquired but not ready for use
are classified under Capital work-in-progress or intangible assets under development, as the case may
be.

D. Depreciation and Amortisation:

Depreciation on all fixed assets, except Leasehold Improvements and intangible assets, is provided on
Written Down value method over the useful life of Asset and in the manner as prescribed by Schedule II
of the Act

E. 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.

i. Financial Assets
Initial Recognition

In the case of financial assets not recorded at fair value through profit or loss (FVPL), financial assets
are recognised initially at fair value plus transaction costs that are directly attributable to the acquisition
of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time
frame established by regulation or convention in the market place (regular way trades) are recognised
on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent Measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

ii. Financial Assets at Amortised Cost (AC)

Financial assets are subsequently measured at amortised cost if these financial assets are held within a
business model with an objective to hold these assets in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding. Interest income from these
financial assets is included in finance income using the effective interest rate ("EIR") method.
Impairment gains or losses arising on these assets are recognised in the Statement of Profit and Loss.

iii. Financial Assets Measured at Fair Value

Financial assets are measured at fair value through OCI if these financial assets are held within a
business model with an objective to hold these assets in order to collect contractual cash flows or to
sell these financial assets and the contractual terms of the financial asset give rise on specified dates
to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Movements in the carrying amount are taken through OCI, except for the recognition of impairment
gains or losses, interest revenue and foreign exchange gains and losses which are recognised in the
Statement of Profit and Loss.Financial asset not measured at amortised cost or at fair value through
OCI is carried at FVTPL.

F. Impairment of Financial Assets:

In accordance with Ind AS 109, the Company applies the expected credit loss ("ECL") model for
measurement and recognition of impairment loss on financial assets and credit risk exposures.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade
receivables. Simplified approach does not require the Company to track changes in credit risk. Rather, it
reoognises impairment loss allowance based on lifetime ECL at each reporting date, right from its initial
recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines
that whether there has been a significant increase in the credit risk since initial recognition. If credit risk
has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the
instrument improves such that there is no longer a significant increase in credit risk since initial
recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.
ECL is the difference between all contractual cash flows that are due to the group in acoordanoe with the
contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at
the original EIR. Lifetime ECL are the expected credit losses resulting from all possible default events
over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which
results from default events that are possible within 12 months after the reporting date.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/
expense in the Statement of Profit and Loss.

G. De-recognition of Financial Assets

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the
asset expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the
asset to another entity.If the Company neither transfers nor retains substantially all the risks and rewards
of ownership and continues to control the transferred asset, the Company recognizes its retained interest
in the assets and an associated liability for amounts it may have to pay.If the Company retains
substantially all the risks and rewards of ownership of a transferred financial asset, the Company
continues to recognise the financial asset and also recognises a collateralised borrowing for the
proceeds received.

i) Equity Instruments and Financial Liabilities

Financial liabilities and equity instruments issued by the Company are classified according to the
substance of the contractual arrangements entered into and the definitions of a financial liability and an
equity instrument.

ii) Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company
after deducting all of its liabilities. Equity instruments which are issued for cash are reoorded at the
proceeds received, net of direct issue costs. Equity instruments which are issued for consideration other
than cash are recorded at fair value of the equity instrument.

H. Financial Liabilities

I. Initial Recognition

Financial liabilities are classified, at initial recognition, as financial liabilities at FVPL, loans and
borrowings and payables as appropriate. All financial liabilities are recognised initially at fair value and,
in the case of loans and borrowings and payables, net of directly attributable transaction oosts.

2. Subsequent Measurement

The measurement of financial liabilities depends on their classification, as described below
a) Financial liabilities at FVPL

Financial liabilities at FVPL include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at FVPL. Financial liabilities are classified as held for trading if they are
incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading
are recognised in the Statement of Profit and Loss.

Financial guarantee contracts issued by the Company are those contracts that require a payment to be
made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment
when due in accordance with the terms of a debt instrument.

Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction
costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is
measured at the higher of the amount of loss allowance determined as per impairment requirements of
Ind AS 109 and the amount recognised less cumulative amortisation. Amortisation is recognised as
finance income in the Statement of Profit and Loss.

b) Financial liabilities at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using the EIR method. Any difference between the proceeds (net of transaction costs) and the
settlement or redemption of borrowings is recognised over the term of the borrowings in the Statement
of Profit and Loss. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as
finance costs in the Statement of Profit and Loss.

3. De-recognition of Financial Liabilities

Financial liabilities are de-recognised when the obligation specified in the contract is discharged,
cancelled or expired. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as de-recognition of the original liability and recognition of a new
liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and
Loss.

4. Offsetting Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to
settle on a net basis to realise the assets and settle the liabilities simultaneously.

(.Impairment of Non-FInanclal Assets

As at each Balance Sheet date, the Company assesses whether there is an indication that a non¬
financial asset may be impaired and also whether there is an indication of reversal of impairment loss
recognised in the previous periods. If any indication exists, or when annual impairment testing for an
asset is required, the Company determines the recoverable amount and impairment loss is recognised
when the carrying amount of an asset exoeeds its recoverable amount.

Recoverable amount is determined:

'' - In case of an individual asset, at the higher of the assets'' fair value less cost to sell and value in use;
and

'' - In case of cash generating unit (a group of assets that generates identified, independent cash flows),
at the higher of cash generating unit''s fair value less cost to sell and value in use.

In assessing value in use, the estimated future cash flows are discounted to their present value using
pre-tax discount rate that reflects current market assessments of the time value of money and risk
specified to the asset. In determining fair value less cost to sell, recent market transaction are taken into
aocount. If no such transaction can be identified, an appropriate valuation model is used.

Impairment losses of continuing operations, including impairment on inventories, are recognised in the
Statement of Profit and Loss, except for properties previously revalued with the revaluation taken to
OCI. For such properties, the impairment is recognised in OCI up to the amount of any previous
revaluation.

When the Company considers that there are no realistic prospects of recovery of the asset, the relevant
amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can
be related objectively to an event occurring after the impairment was recognised, then the previously
recognised impairment loss is reversed through the Statement of Profit and Loss.

J. Trade receivables

A receivable is classified as a ''trade receivable’ if it is in respect of the amount due on aocount of goods
sold or services rendered in the normal course of business. Trade receivables are recognised initially at
fair value and subsequently measured at amortised cost using the EIR method, less provision for
impairment.

K. Trade payables

A payable is classified as a trade payable’ if it is in respect of the amount due on account of goods
purchased or services received in the normal course of business. These amounts represent liabilities for
goods and services provided to the Company prior to the end of the financial year which are unpaid.
These amounts are unsecured and are usually settled as per the payment terms stated in the contract.
Trade and other payables are presented as current liabilities unless payment is not due within 12 months
after the reporting period. They are reoognised initially at their fair value and subsequently measured at
amortised cost using the EIR method.

L. Earnings Per Share

Basic earnings per share is computed by dividing the net profit or loss tor the period attributable to the
equity shareholders of the Company by the weighted average number of equity shares outstanding during
the period. The weighted average number of equity shares outstanding during the period and for all
periods presented is adjusted for events, such as bonus shares, other than the conversion of potential
equity shares, that have changed the number of equity shares outstanding, without a corresponding

change in resources.

Diluted earnings per share is computed by dividing the net profit or loss for the period attributable to the
equity shareholders of the Company and weighted average number of equity shares considered for
deriving basic earnings per equity share and also the weighted average number of equity shares that
could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential
equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair
value (i.e. the average market value of the outstanding equity shares).

M. Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprises of cash at banks and on hand and short-term
deposits with an original maturity of three month or less, which are subject to an insignificant risk of
changes in value.

N. Borrowing Costs

Borrowing costs oonsist of interest and other costs that the Company incurs in connection with the
borrowing of funds. Also, the EIR amortisation is included in finance costs.

Borrowing costs relating to acquisition, construction or production of a qualifying asset which takes
substantial period of time to get ready for its intended use are added to the cost of such asset to the
extent they relate to the period till such assets are ready to be put to use. All other borrowing costs are
expensed in the Statement of Profit and Loss in the period in which they oocur.

O. Revenue Recognition:

1. Revenue is recognized when all significant risks and rewards of ownership of the goods are passed
on to the buyer and no significant uncertainty exists as to its realization or collection.

2. Revenue from disposal of properties is recognized on legal completion of the contract. Where
properties are under development, revenue is recognized when significant risk and rewards of
ownership and effective control of the real estate have been transferred to the buyer. If the revenue
recognition criteria have been met before construction is complete then obligation is recognized for
the cost to complete the construction at the same time as the sale is recognized.

3. Rent Income is recognized on the basis of term with lessee.

4. Interest Income is recognized on a time proportion basis by reference to the principal outstanding
and at the interest rate applicable. Share of profit/ Loss from partnership firm recognised on the basis
of confirmation from partnership firm.

P. Foreign Currency Transactions:

1. Initial Recognition

Foreign currency transactions are initially recorded in the reporting currency, by applying to the foreign
currency amount the exchange rate between the reporting currency and the foreign currency at the
date of the transaction. However, for practical reasons, the Company uses a monthly average rate if
the average rate approximate the actual rate at the date of the transactions.

2. Conversion

Monetary assets and liabilities denominated in foreign currencies are reported using the closing rate at
the reporting date. Non-monetary items which are carried in terms of historical cost denominated in a
foreign currency are reported using the exchange rate at the date of the transaction.

3. Treatment of Exchange Difference

Exchange differences arising on settlement/ restatement of short-term foreign currency monetary
assets and liabilities of the Company are recognised as inoome or expense in the Statement of Profit
and Loss except those arising from investment in Non Integral operations..

Q. Inventories

Inventories are valued at cost or net realizable value whichever is lower. Cost of properly under
construction held as inventory includes cost of purchases, construction cost, and other cost incurred in
bringing the properties to their present location and condition

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Mar 31, 2016

1.1 Basis for preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles (GAAP) in India. GAAP includes Accounting Standards (AS) noticed by the Government of India under Section 133 of the Companies Act, 2013, provisions of the Companies Act, 2013, pronouncements of Institute of Chartered Accountants of India and guidelines issued by Securities and Exchange Board of India (SEBI). The Company has presented financial statements as per format prescribed by Revised Schedule III, notified under the Companies Act, 2013, issued by Ministry of Corporate Affairs. Except where otherwise stated, the accounting policies are consistently applied.

1.2 Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make assumptions, critical judgments and estimates, which it believes are reasonable under the circumstances that affect the reported amounts of assets, liabilities and contingent liabilities on the date of financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known or materialize.

1.2 Investments

(a) Long-term investments are stated at cost. Provision is made to recognize any diminution in value, other than that of a temporary nature.

(b) Current investments are carried at lower of cost and fair value. Diminution in value is charged to the statement of profit and loss.

(c) Current investments readily convertible in known amount of cash and subject to insignificant risk of changes in value are classified as cash and cash equivalents for reparation of cash flow statement.

1.4 Cash flow statement

The cash flow statement is prepared under the “Indirect Method” as set out in AS - 3 “Cash Flow Statements” issued by the Institute of Chartered Accountants of India.

1.5 Revenue recognition

(a) Revenue from sale of goods is recognized when the significant risks and rewards of ownership of goods are transferred to the customer. Sales are net of discounts, sales tax, value added tax and estimated returns. Excise duties collected on sales are shown by way of deduction from sales.

(b) Provision for sales returns are estimated primarily on the basis of historical experience, market conditions and specific contractual terms and provided for in the year of sale as reduction from revenue. The methodology and assumptions used to estimate returns are monitored and adjusted regularly in line with contractual and legal obligations, trade practices, historical trends, past experience and projected market conditions.

(c) Income from services is recognized when the services are rendered or when contracted milestones have been achieved.

(d) Revenue from arrangements which includes performance of obligations is recognized in the period in which related performance obligations are completed.

(e) Export entitlements are recognized as income when 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.

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

(g) Interest income is recognized using the time-proportion method, based on rates implicit in the Transaction.

(h) Revenue in respect of other income is recognized when a reasonable certainty as to its realization exists.

1.6 Finance costs

Finance costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds and exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

1.7 Cenvat credit

Cenvat (Central value added tax) credit in respect of excise, custom and service tax is accounted on accrual basis on purchase of eligible inputs, capital goods and services. The balance of cenvat credit is reviewed at the end of each year and amount estimated to be un-utilizable is charged to the statement of profit and loss for the year.

1.8 Stores and spares

Stores and spares (other than spares acquired with fixed assets) are charged to the statement of profit and loss as and when purchased.

1.9 Research and development

Revenue expenditure on research and development is expensed off under the respective head of expenses in the year in which it is incurred. Capital expenditure on research and development is reported as fixed assets under the relevant head.

Depreciation on research and development fixed assets is not classified as research and development expenses and instead included under depreciation expenses.

1.10 Leases

Lease rentals in respect of assets taken on operating lease are charged to the statement of profit and loss on accrual and on straight line basis over the lease term.

1.11 Accounting for taxes

a) Current tax is accounted on the basis of estimated taxable income for the current accounting year and in accordance with the provisions of the Income Tax Act, 1961.

b) Deferred tax resulting from “timing differences” between accounting and taxable profit for the period has not been accounted.

1.12 Provisions, contingent liabilities and contingent assets

Provisions involving 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. Liabilities which are of contingent nature are not provided but are disclosed at their estimated amount in the notes forming part of the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2015

1.1 Basis for preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles (GAAP) in India. GAAP includes Accounting Standards (AS) noticed by the Government of India under Section 133 of the Companies Act, 2013, provisions of the Companies Act, 2013, pronouncements of Institute of Chartered Accountants of India and guidelines issued by Securities and Exchange Board of India (SEBI). The Company has presented financial statements as per format prescribed by Revised Schedule III, notified under the Companies Act, 2013, issued by Ministry of Corporate Affairs. Except where otherwise stated, the accounting policies are consistently applied.

1.2 Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make assumptions, critical judgments and estimates, which it believes are reasonable under the circumstances that affect the reported amounts of assets, liabilities and contingent liabilities on the date of financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known or materialize.

1.3 Investments

a) Long-term investments are stated at cost. Provision is made to recognize any diminution in value, other than that of a temporary nature.

b) Current investments are carried at lower of cost and fair value. Diminution in value is charged to the statement of profit and loss.

c) Current investments readily convertible in known amount of cash and subject to insignificant risk of changes in value are classified as cash and cash equivalents for preparation of cash flow statement.

1.4 Cash flow statement

The cash flow statement is prepared under the "Indirect Method" as set out in AS - 3 "Cash Flow Statements" issued by the Institute of Chartered Accountants of India.

1.5 Revenue recognition

(a) Revenue from sale of goods is recognized when the significant risks and rewards of ownership of goods are transferred to the customer. Sales are net of discounts, sales tax, value added tax and estimated returns. Excise duties collected on sales are shown by way of deduction from sales.

(b) Provision for sales returns are estimated primarily on the basis of historical experience, market conditions and specific contractual terms and provided for in the year of sale as reduction from revenue. The methodology and assumptions used to estimate returns are monitored and adjusted regularly in line with contractual and legal obligations, trade practices, historical trends, past experience and projected market conditions.

(c) Income from services is recognized when the services are rendered or when contracted milestones have been achieved.

(d) Revenue from arrangements which includes performance of obligations is recognized in the period in which related performance obligations are completed.

(e) Export entitlements are recognized as income when 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.

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

(g) Interest income is recognized using the time-proportion method, based on rates implicit in the transaction.

(h) Revenue in respect of other income is recognized when a reasonable certainty as to its realization exists.

1.6 Finance costs

Finance costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds and exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

1.7 Cenvat credit

Cenvat (Central value added tax) credit in respect of excise, custom and service tax is accounted on accrual basis on purchase of eligible inputs, capital goods and services. The balance of cenvat credit is reviewed at the end of each year and amount estimated to be un-utilizable is charged to the statement of profit and loss for the year.

1.8 Stores and spares

Stores and spares (other than spares acquired with fixed assets) are charged to the statement of profit and loss as and when purchased.

1.9 Research and development

Revenue expenditure on research and development is expensed off under the respective head of expenses in the year in which it is incurred. Capital expenditure on research and development is reported as fixed assets under the relevant head.

Depreciation on research and development fixed assets is not classified as research and development expenses and instead included under depreciation expenses.

1.10 Leases

Lease rentals in respect of assets taken on operating lease are charged to the statement of profit and loss on accrual and on straight line basis over the lease term.

1.11 Accounting for taxes

(a) Current tax is accounted on the basis of estimated taxable income for the current accounting year and in accordance with the provisions of the Income Tax Act, 1961.

(b) Deferred tax resulting from "timing differences" between accounting and taxable profit for the period has not been accounted.

1.12 Provisions, contingent liabilities and contingent assets

Provisions involving 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. Liabilities which are of contingent nature are not provided but are disclosed at their estimated amount in the notes forming part of the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2014

A. BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention and comply with the applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant provision of the Companies Act, 1956.

b. FIXED ASSETS AND DEPRECIATION

(i) Fixed assets are stated at cost of acquisition, including any attributable cost for bringing the assets to its working condition for its intended use, less accumulated depreciation as per the Companies Act 1956.

(ii) Depreciation is provided on the straight–line method over the useful life of the assets.

c. INVESTMENTS

Long term investments are stated at cost, Current investments are stated at lower of cost or fair market value.

d. INVENTORIES

Inventories are stated at the lower of cost or net realisable value. Cost is determined at the first in first out (FIFO) method (As per AS 2). The cost of finished goods and work in progress comprises raw material, direct labour, other direct costs and related production overheads, but excludes interest expenses.

e. TAXES ON INCOME

Provision for tax for the period comprises current income tax determined to be payable in respect of taxable income and deferred tax being the tax effect of timing differences representing the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Current Income tax also includes interest payable if any under the provisions of Income tax Act, 1961.

f. PROVISIONING/WRITE OFF OF DOUBTFUL DEBTS, LOANS & ADVANCES.

Unrealizable Debts and Sundry balances of Loans & advances has been written-off to present true and fair view of the Company and as per the policy adopted by the Management of the company and to present on realistic basis the net realisable value of the assets of the company and to give a true and fair presentation to the stakeholders of the company.

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Mar 31, 2011

A. Basis of Accounting

The financial statements are prepared under the historical cost convention and comply with the applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant provision of the Companies Act, 1956.

b. Fixed Assets and Depreciation

(i) Fixed assets are stated at cost of acquisition, including any attributable cost for bringing the assets to its working condition for its intended use, less accumulated depreciation as per the Companies Act 1956.

(ii) Depreciation is provided on the straight-line method over the useful life of the assets.

c. Investments

Long term investments are stated at cost, Current investments are stated at lower of cost or fair market value.

d. Inventories

Inventories are stated at the lower of cost or net realisable value. Cost is determined at the first in first out (FIFO) method (As per AS2). The cost of finished goods and work in progress comprises raw material, direct labour, other direct costs and related production overheads, but excludes interest expenses.

e. Revenue Recognition

Sales are recognised upon delivery of products and are recorded exclusive of excise duty but are net of trade discounts and sales tax.

f. Excise Duty

The excise duty in respect of closing inventory of finished goods is not included as part of inventory. The amount of CENVAT credits in respect of materials consumed for sales is deducted from cost of materials consumed. More over Excise duty exemption up to sales of Rs. 1.5 Crore is available to the company.

g. Taxes on Income

Provision for tax for the period comprises current income tax determined to be payable in respect of taxable income and deferred tax being the tax effect of timing differences representing the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Current Income tax also includes interest payable if any under the provisions of Income tax Act, 1961

h. Provisioning/Write off of Doubtful Debts, Loans & Advances.

Unrealizable Debts and Sundry balances of Loans & advances has been written- off to present true and fair view of the Company and as per the policy adopted by the Management of the company and to present on realistic basis the net realisable value of the assets of the company and to give a true and fair presentation to the stakeholders of the company.

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Mar 31, 2010

A. Basis of Accounting

The financial statements are prepared under the historical cost convention and comply with the applicabe accounting standards issued by the Institute of Chartered Accountants of India and the relevant provision of the Companies Act, 1956.

b. Fixed Assets and Depreciation

(i) Fixed assets are stated at cost of acquisition, including any attributable cost for bringing the assets to its working condition for its intended use, less accumulated depreciation as per the Companies Act 1956.

(ii) Depreciation is provided on the straight-line method over the useful life of the assets.

c. Investments

Long term investments are stated at cost, Current investments are stated at lower of cost or fair market value.

d. Inventories

Inventories are stated at the lower of cost or net realisable value. Cost is determined at the first in first out (FIFO) method (As per AS 2). The cost of finished goods and work in progress comprises raw material, direct labour, other direct costs and related production overheads, but excludes interest expenses.

e. Revenue Recognition

Sales are recognised upon delivery of products and are recorded exclusive of excise duty but are net of trade discounts and sales tax..

f. Excise Duty

The excise duty in respect of closing inventory of finished goods is not included as part of inventory. The amount of CENVAT credits in respect of materials consumed for sales is deducted from cost of materials consumed. More over Excise duty exemption up to sales of Rs. 1.5 Crore is available to the company.

g. Taxes on Income

Provision for tax for the period comprises current income tax determined to be payaDle in respect oi taxable income and deferred tax being the tax effect of timing differences representing the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Current Income tax also includes interest payable if any under the provisions of Income tax Act, 1961.

h. Provisioning/Writeoff of Doubtful Debts, Loans & Advances.

Unrealizable Debts and Sundry balances of Loans & advances has been written- off to present true and fair view of the Company and as per the policy adopted by the Management of the >company and to present on realistic basis the net realisable value of the assets of the company and to give a true and fair presentation to the stakeholders of the company.