Accounting Policies of Synthiko Foils Ltd. Company

Mar 31, 2025

A. Revenue recognition

Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operations
include sale of goods, other charges, sale of goods is recognized on
transfer of significant risks and rewards of ownership which is generally
on the dispatch of goods Net Goods and Service Tax ( GST) and other
taxes, if any.

Revenue are recorded at invoice value Net Goods and Service Tax of
returns and trade discounts. Benefits on account of entitlement of
export incentives are recognized as and when the right to receive is
established. Interest income is recognized using the time proportionate
method, based on rates implicit in the transaction.

B. Fixed Assets

Fixed assets are stated at cost/revalued less accumulated depreciation.
Depreciation on Tangible assets has been provided as per the revised
useful life of these assets as per Schedule II of the Companies Act, 2013.

C. Investments

Investments that are readily realizable and are intended to be held for
more than one year from the date on which such investments are made,
are classified as non-current investments. However, provision for
diminution is made to recognize a decline, other than temporary, in the
value of the investments, such reduction being determined and made
for each investment individually^

D. Inventories

Inventories are values and certified by the management in respect of
quality & value. Raw materials are valued at lower of cost or net
realizable value. Cost is determined on weighted average basis. Finished
goods are valued at cost or market value whichever is lower.

Stores and spares are valued at lower of cost or net realizable value.
Cost is determined on weighted average basis.

E. Foreign Currency Transactions

Transactions in foreign currencies entered into by the company are
accounted at the exchange rates prevailing on the date of the
transaction. Exchange differences arising on foreign exchange
transactions settled during the year are recognized in the statement of
Profit and Loss.

F. Employee Benefits

Short term employee benefits payable within twelve months of
rendering the service are classified as short term employee benefits and
they are recognized as an expense in the statement of Profit and Loss
account.

Post employment and other long term employee benefits are recognized
as an expense in the statement of Profit and Loss account for the year
in which the employee has rendered services. The expense is recognized
at the present value of the amounts payable as per the management
valuation. Actuarial gains and losses in respect of post employment and
other long term benefits are charged to the statement of profit and loss.

G. Deferred tax on income

Deferred tax is recognized for all timing differences being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.

H. Impairment of Assets

The Company reviews the carrying value of tangible assets for any
possible impairment at each balance sheet date. An impairment loss is
recognized when the carrying amount of an asset exceeds its
recoverable amount. In assessing the recoverable amount, the
estimated future cash flows are discounted at their present value based
on appropriate discount rates.

I. Borrowing cost

All borrowing cost are charged to the Statement of Profit and Loss.

J. Cash and Cash equivalents

Cash and cash equivalents comprise cash on hand, bank balances,
demand deposits with banks and other short term highly liquid
investments where the original maturity is three months or less.

K. Trade receivable

Trade receivable are stated after writing off debts considered as bad.

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS

NOTE 1

Basis of Preparation and Compliance with Ind AS

These financial statements have been prepared in compliance with Indian Accounting Standards (Ind-AS) notified under section 133 of the Companies Act 2013 (the Act), read together with The Companies (Indian Accounting Standards) Rules, 2015].

The financial statements have been prepared and presented under the historical cost convention, on accrual basis of accounting in accordance with accounting principles generally accepted in India (“Indian GAAP”) and comply with the Accounting Standards prescribed under section 133 of the Companies Act, 2013 (“Act”), read with Rule 7 of the Companies (Accounts) Rules, 2014. The financial statements comply in all material aspects with the accounting standards notified under Section 211 (3C) of the Companies Act, 1956 (Companies Accounting Standards) Rules, 2006, as amended and other relevant provisions of the Companies Act, 2013.

NOTE 2

Significant Accounting Policies

A. Revenue recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations include sale of goods, other charges, sale of goods is recognized on transfer of significant risks and rewards of ownership which is generally on the dispatch of goods Net Goods and Service Tax ( GST) and other taxes, if any.

Revenue are recorded at invoice value Net Goods and Service Tax of returns and trade discounts. Benefits on account of entitlement of export incentives are recognized as and when the right to receive is established. Interest income is recognized using the time proportionate method, based on rates implicit in the transaction.

B. Fixed Assets

Fixed assets are stated at cost/revalued less accumulated depreciation. Depreciation on Tangible assets has been provided as per the revised useful life of these assets as per Schedule II of the Companies Act, 2013.

C. Investments

Investments that are readily realizable and are intended to be held for more than one year from the date on which such investments are made, are classified as non-current investments. However, provision for diminution is made to recognize a decline, other than temporary, in the value of the investments, such reduction being determined and made for each investment individually.

D. Inventories

Inventories are values and certified by the management in respect of quality & value. Raw materials are valued at lower of cost or net realizable value. Cost is determined on weighted average basis. Finished goods are valued at cost or market value whichever is lower.

Stores and spares are valued at lower of cost or net realizable value. Cost is determined on weighted average basis.

E. Foreign Currency Transactions

Transactions in foreign currencies entered into by the company are accounted at the exchange rates prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the statement of Profit and Loss.

F. Employee Benefits

Short term employee benefits payable within twelve months of rendering the service are classified as short term employee benefits and they are recognized as an expense in the statement of Profit and Loss account.

Post employment and other long term employee benefits are recognized as an expense in the statement of Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable as per the management valuation. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the statement of profit and loss.

G. Deferred tax on income

Deferred tax is recognized for all timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

H. Impairment of Assets

The Company reviews the carrying value of tangible assets for any possible impairment at each balance sheet date. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. In assessing the recoverable amount, the estimated future cash flows are discounted at their present value based on appropriate discount rates.

I. Borrowing cost

All borrowing cost are charged to the Statement of Profit and Loss.

J. Cash and Cash equivalents

Cash and cash equivalents comprise cash on hand, bank balances, demand deposits with banks and other short term highly liquid investments where the original maturity is three months or less.

K. Trade receivable

Trade receivable are stated after writing off debts considered as bad.

L. Provision and contingencies

The company creates a provision when there exists a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

M. Earning per share

The basic and diluted earnings per share (“EPS”) is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the period.

N. Other accounting policies

These are considered with generally accepted accounting principles.

O. Expenditure on Regulatory Approvals

Expenditure incurred for obtaining regulatory approvals and registration of products for overseas markets is charged to the Statement of Profit and Loss.

P. Goods and Service Tax on closing Stock :The Company follows the practice of not providing for Goods and Service Tax on finished goods materials not cleared from the factory premises. Consequently the said practice has no effect on the profit & Loss Account for the year.

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Mar 31, 2015

A. Basis of Preparation :

The financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting and in accordance with Generally Accepted Accounting Principles (GAAP) in India. GAAP comprises mandatory Accounting Standards as prescribed under section 133 of the Companies Act, 2013 ("Act"), read with Rule 7 of the Companies (Accounts) Rules, 2014 and guidelines issued by Securities and Exchange Board of India (SEBI).

B. Use of Estimates:

The preparation of financial statements requires the Management of the Company to make estimates and assumptions that affect the reported balance of assets and liabilities, revenue and expenses and disclosures relating to contingent liabilities. The Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Further results could differ from these estimates. Any revision of accounting estimates is recognized prospectively in the current and future periods.

C. Operating Cycle:

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

D. Fixed Assets:

Tangible assets are stated at the cost of acquisition and includes amount added on revaluation, less accumulated depreciation, Government grants, other subsidies and impairment losses, if any. Cost of tangible assets comprises purchase price, non-refundable taxes, levies and any directly attributable cost of bringing the assets to its working condition for the intended use. Where several fixed assets are acquired for a consolidated price, the consideration is apportioned to fixed assets on fair value basis.

Capital work-in-progress includes cost of fixed assets that are not ready for their intended use.

Intangible assets are stated at the cost of acquisition, less accumulated amortization and impairment losses, if any. Cost of intangible assets comprises purchase price, non-refundable taxes, levies and any directly attributable cost of making the asset ready for its intended use.

E. Borrowing Costs:

Borrowing costs consists of interest, ancillary costs and other costs in connection with the borrowing of funds and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to interest costs.

Borrowing costs attributes to acquisition and / or construction of qualifying assets are capitalized as a part of the cost of such assets, up to the date such assets are ready for their intended use. Other borrowing costs are charged to the Statement of Profit and Loss.

F. Depreciation and Amortization:

Depreciation on tangible fixed assets is provided on the Straight Line Method over the useful life of assets as prescribed under part C of Schedule II of the Act.

In the case of assets whose useful life is already exhausted as on 1st April 2014, the carrying value, net of residual value and deferred tax has been adjusted in retained earning in accordance with the requirements of Schedule II of the Act.

Depreciation is calculated on a pro-rata basis from the date of installation till the date the assets are sold or disposed.

Intangible assets are amortized on a systematic basis over the best estimate of their useful lives, commencing from the date the asset is available to the Company for its use.

G. Inventories:

Raw materials and packing materials and work in progress are valued at lower of cost and net realizable value after providing for obsolescence, if any. However, these items are considered to be realizable at cost if the finished products, in which they will be used, are expected to be sold at or above cost.

Work-in-process, stock-in-trade and finished goods are valued at lower of cost and net realizable value. Finished goods and work-in-process includes costs of raw material, labour, conversion costs and other costs incurred in bringing the inventories to their present location and condition.

H. Investments:

Long term investments are carried at cost, less provision for diminution (other than temporary) (if any) in value.

Current investments are carried at lower of cost and fair value.

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Mar 31, 2014

1.1 Basis of preparation of financial statements

(a) Basis of Accounting

The Financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India and presented under the historical cost convention on accrual basis of accounting to comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 (as amended) and with the relevant provisions of the Companies Act, 1956.

(b) Use of Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period.

(c) Current/Non Current Classification

Any asset or liability is classified as current if it satisfies any of the following conditions:

i. It is expected to be realized or settled or is intended for sale or consumption in the company''s normal operating cycle;

ii. It is expected to be realized or settled within twelve months from the reporting date;

iii. In the case of an asset

- It is held primarily for the purpose of being traded; or

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

iv. In the case of a liability, the company does not have an unconditional right to defer settlement of the liability for at least twelve months from the reporting date.

All other assets and liabilities are classified as non-current.

For the purpose of current / non-current classification of assets and liabilities, the company has ascertained its normal operating cycle as 12 months. This is based on the nature of services and the time between the acquisition of assets or inventories for processing and their realization in cash and cash equivalents.

(d) Own Fixed Assets

Fixed assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated depreciation and impairment loss, if any.

(e) Depreciation and Amortization

i. Depreciation on fixed assets is provided to the extent of depreciable amount on Strait Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 over their useful life, on fixed assets.

ii. Depreciation on additions to the assets during the year is being provided on pro-rata basis at their respective rate with reference to the month of acquisition / installation as required by Schedule XIV to the Companies Act, 1956.

iii. Depreciation on assets sold, scrapped or discarded during the year is being provided at their respective rates up to the month in which such assets are sold, scrapped or discarded, as required by Schedule XIV to the Companies Act, 1956.

iv. Depreciation is adjusted in subsequent periods to allocate the assets revised carrying amount after the recognition of an impairment loss on a systematic basis over its remaining useful life.

(f) Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(g) Foreign Currency Transactions.

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognized as exchange difference & the premium paid on forward contracts is recognized over the life of the contract.

1.2 Transactions in foreign currency

(a) Initial recognition

Transactions in foreign currencies entered into by the company are accounted at exchange rates prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit and Loss.

(b) Measurement of foreign currency items at the Balance Sheet date

Foreign currency monetary items of the Company are restated at the closing exchange rates. Non-monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these transactions are recognized in the Statement of Profit and Loss.

(c) Forward exchange contracts

The premium or discount arising at the inception of forward exchange contract is amortized and recognized as an expense/income over the life of the contract. Exchange differences on such contracts are recognized in the Statement of Profit and Loss in the period in which the exchange rates change. Any Profit or Loss arising on cancellation or renewal of such forward exchange contract is also recognized as income or expenses for the period.

1.3 Provision For Taxation

Tax expense comprises of current tax (i.e. amount of tax for the period determined in accordance with the Income Tax Act, 1961) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted by the Balance Sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainly that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date to reassess realization.

1.4 Transactions In Foreign Currency

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

1. Accounting Policies: The Company follows accrual system of accounting except those with significant uncertainties.

2. Fixed Assets: Fixed assets are stated at cost less depreciation inclusive of rates, duties, & taxes and other incidental expenses. The factory land and Building situated at Plot No: 84/1, Jamsar Road, Jawhar, Thane has a charge against the loan taken by Samriddhi Foils of Rs.85,00,000/-

3. Depreciation: Depreciation of fixed assets is provided on Straight Line Method basis in accordance with Schedule XIV to the Companies Act 1956.

4. Investments: Investments are stated at cost of acquisition.

5. Inventories: Raw materials have been valued at cost, finished goods and work in progress is valued at lower of cost (excluding excise) or market price.

6. Sales: Sales are recognized on passing of property by goods basis.

7. Gratuity: Gratuity is calculated on the basis of 26 days basic pay as per the provision of the Income Tax Act 1961. However the company does not get the valuation from actuaries as of yet. The valuation is done by the management.

8. Taxation:

a) Provision for current income tax made as per working under the Income Tax Act 1961.

b) Deferred Tax is recognized as timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

9. Inter Unit Sales and purchases are adjusted in accounts.

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Mar 31, 2013

A. Basis of Preparation of Financial Statements

The financial statements are prepared under the accrual basis and under historical cost convention, in accordance with the generally accepted accounting principles, in India and the provisions of the Companies Act, 1956.

B. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expense during the reporting period. Difference between the actual results and estimates are recognized in the period in which the result are known/ materialized.

C. Own Fixed Assets

Fixed assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated depreciation and impairment loss, if any.

D. Depreciation and Amortization

(f) Depreciation on fixed assets is provided to the extent of depreciable amount on Strait Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 over their useful life, on fixed assets.

(if) Depreciation on additions to the assets during the year ius being provided on pro- rata basis at their respective rate with reference to the month of acquisition / installation as required by Schedule XIV to the Companies Act, 1956.

(iii) Depreciation on assets sold, scrapped or discarded during the year is being provided at their respective rates up to the month in which such assets are sold, scrapped or discarded, as required by Schedule XIV to the Companies Act, 1956.

(iv) Depreciation is adjusted in subsequent periods to allocate the assets revised carrying amount after the recognition of an impairment loss on a systematic basis over its remaining useful life.

E. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

F. Foreign Currency Transactions.

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognized as exchange difference & the premium paid on forward contracts is recognized over the life of the contract.

G. Investments.

Current investments are carried at cost. Long term investments are stated at cost.

H. Inventories

Raw materials have been valued at cost, finished goods and work in progress is valued at lower of cost (excluding excise) or market price, whichever is lower.

I. Revenue Recognition

Revenue is recognized only when it can be reliably measure and it is reasonable to expect ultimate collection, Revenue from operations includes sale of goods, services, sales tax, service tax, excise duty and sales during trial run period, adjusted for discounts (net), Value Added Tax (VAT) and gain / loss on corresponding hedge contracts, Dividend income is recognized when right to receive is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

J. Excise Duty / Service Tax and Sales Tax/ Value Added Tax

Excise duty /Service tax is accounted on the basis of both, payments made in respect of goods cleared /paid is charged to profit and loss account.

The company follows the practice of not providing for excise duty on finished goods materials not cleared from the factory premises. Consequently the said practice has no effect on the profit & Loss Account for the year.

K. Employee benefits

(i) Short term employee benefits are recognized as an expenses at the undiscounted amount in the Profit and Loss account of the year in which the related service is rendered.

(ii] Post employment and other long term employee benefits are recognized as an expenses is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the profit and loss account.

L. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assts. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to profit and loss account.

M. Provision for current and deferred tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income tax act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

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Mar 31, 2012

1) Accounting Policies: The Company follows accrual system of accounting except those with significant uncertainties.

2) Fixed Assets: Fixed Assets are stated at cost less depreciation inclusive of rates, duties & taxes and other incidental expenses.

3) Depreciation: Depreciation on fixed assets is provided on Straight Line Method basis in accordance with Schedule XIV to the Companies Act, 1956.

4) Investments: Investments are stated at cost of acquisition.

5) Inventories: Raw Materials have been valued at cost. Finished goods and work in progress is valued at lower of cost (excluding excise) or market price.

6) Sales: Sales are recognized on passing of property by goods basis.

7) Gratuity: Gratuity is calculated on the basis of 26 days' basic pay as per the provisions of the Income Tax Act, 1961. However, the company does not get the valuation done from the actuaries as of yet. The valuation is done by the management.

8) Taxation:

a. Provision for current income tax is made as per working under the Income Tax Act, 1961.

b. Deferred tax is recognized as timing difference; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

9) Inter Unit Sales & Purchases are adjusted in Accounts.

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Mar 31, 2011

1) Accounting Policies: The Company follows accrual system of accounting except those with significant uncertainties.

2) Fixed Assets: Fixed Assets are stated at cost less depreciation inclusive of rates, duties & taxes and other incidental expenses.

3) Depreciation: Depreciation on fixed assets is provided on Straight Line Method basis in accordance with Schedule XIV to the Companies Act, 1956.

4) Investments: Investments are stated at cost of acquisition.

5) Inventories: Raw Materials have been valued at cost. Finished goods and work in progress is valued at lower of cost (excluding excise) or market price.

6) Sales: Sales are recognized on passing of property by goods basis.

7) Gratuity: Gratuity is calculated on the basis of 15 days' basic pay as per the provisions of the Income Tax Act, 1961. However, the company does not get the valuation done from the actuaries as of yet. The valuation is done by the management.

8) Taxation:

a. Provision for current income tax is made as per working under the Income Tax Act, 1961.

b. Deferred tax is recognized as timing difference; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

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Mar 31, 2010

1. Accounting Policies : The Company follows accrual system of accounting except those with significant uncertainties.

2. Fixed Assets : Fixed Assets are stated at cost less depreciation inclusive of rates, duties & taxes and other incidental expenses.

3. Depreciation : Depreciation on fixed assets is provided on Straight Line Method basis in accordance with Schedule XIV to the Companies Act, 1956.

4. Investments : Investments are stated at cost of acquisition.

5. Inventories : Raw Materials have been valued at cost. Finished goods and work in progress is valued at lower of cost (excluding excise) or market price.

6. Sales : Sales are recognized on passing of property by goods basis.

7. Gratuity : Gratuity is calculated on the basis of 15 days' basis pay as per the provisions of the Income Tax Act, 1961. However, the Company does not get the valuation done from the actuaries as of yet. The valuation is done by the management.

8. Taxation :

a. Provision for current income tax is made as per working under the Income Tax Act, 1961.

b. Deferred tax is recognized as timing difference; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

c. Provision of Fringe Benefit Tax (FBT) is made on the basis of expenses incurred on employees / other expenses as prescribed under the Income Tax Act, 1961.

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Mar 31, 2009

1. Accounting Policies : The Company follows accrual system of accounting except those with significant uncertainties.

2. Fixed Assets : Fixed Assets are stated at cost less depreciation inclusive of rates, duties & taxes and other incidental expenses.

3. Depreciation : Depreciation on fixed assets is provided on Straight Line Method basis in accordance with Schedule XIV to the Companies Act, 1956.

4. Investments : Investments are stated at cost of acquisition.

5. Inventories : Raw Materials have been valued at cost. Finished goods and work in progress is valued at lower of cost (excluding excise) or market price.

6. Sales : Sales are recognized on passing of property by goods basis.

7. Gratuity : Gratuity is calculated on the basis of 26 days basis pay as per the provisions of the Income Tax Act, 1961. However, the Company does not get the valuation done from the actuaries as of yet. The valuation is done by the management.

8. Taxation :

a. Provision for current income tax is made as per working under the Income Tax Act, 1961.

b. Deferred tax is recognized as timing difference; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

c. Provision of Fringe Benefit Tax (FBT) is made on the basis of expenses incurred on employees / other expenses as prescribed under the Income Tax Act, 1961.

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Mar 31, 2005

1. Accounting Policies : The Company follows accrual system of accounting.

2. Fixed Assets : Fixed Assets are stated at cost less depreciation inclusive of rates, duties & taxes and other incidental expenses.

3. Depreciation : Depreciation on fixed assets is provided on Straight Line Method basis.

4. Investments : Investments are stated at cost of acquisition.

5. Inventories : Raw Materials have been valued at cost finished goods and work in progress is valued at lower of cost (excluding excise) or market price.

6. Sales : Sales are recognised on passing of property by goods basis.

7. Gratuity : Company has made no provision for gratuity for its employees during the year under review, as the same is not applicable to the Company.