Accounting Policies of Uni Abex Alloy Products Ltd. Company

Mar 31, 2025

3A. Summary of material accounting policies

a. Revenue recognition

i. Sale of products

The Company manufactures and sells a range of alloy
products. Revenue is recognised when control of the
products is transferred, being when the products are
delivered to the customer, and there is no unfulfilled
obligation that could affect the customer''s acceptance

of the products. Revenue is measured based on the
transaction price, which is the consideration, adjusted
for discounts, incentives and returns, etc., if any.

Delivery occurs when the products have been shipped
to the specific location, the risks of obsolescence
and loss have been transferred to the customer, and
either the customer has accepted the products in
accordance with the sales contract, the acceptance
provisions have lapsed, or the Company has objective
evidence that all criteria for acceptance have
been satisfied.

Amounts disclosed as revenue are net of returns,
trade allowances, rebates and discounts, goods and
service tax and other applicable taxes, which are
collected on behalf of the government or on behalf
of third parties.

A receivable is recognised when the products
are delivered as this is the point in time that the
consideration is unconditional because only the
passage of time is required before the payment
is due. Trade receivables are recognised at their
transaction price unless those contain significant
financing component determined in accordance
with Ind AS 115.

The Company does not expect to have any contracts
where the period between the transfer of the promised
products or services to the customer and payment by
the customer exceeds one year. As a consequence,
the Company does not adjust any of the transaction
prices for the time value of money.

ii. Interest and dividend

Interest income is recognised on an accrual basis
using the effective interest method. Dividends
are recognised at the time the right to receive the
payment is established.

iii. Export benefits/incentives

Export benefits / incentives are accounted on
accrual basis in accordance with various government
schemes in respect thereof if the entitlements can be
estimated with reasonable assurance and conditions
precedent to claim are fulfilled and are shown under
"Other operating revenue”.

iv. Other income

Other income is recognised when no material
uncertainty as to its determination or realisation exists.

i. Leases

The Company as lessee

The Company’s leased assets primarily consist of leases
for building. The Company assesses whether a contract
contains lease, at inception of a contract. A contract is,
or contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of time in
exchange for consideration. To assess whether a contract
conveys the right to control the use of an identified asset,
the Company assesses whether:

i. the contract involves the use of an identified asset;

ii. the Company has substantially all of the economic
benefits from use of the asset through the period
of the lease; and

iii. the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company
recognises a right-of-use (ROU) asset and a corresponding
lease liability for all lease arrangements in which it is
a lessee, except for leases with a lease term of twelve
months or less (short-term leases) and low value leases.

For these short-term and low value leases, the Company
recognises the lease payments as an operating expense on
a straight-line basis over the term of the lease.

The right-of-use assets are initially recognised at cost,
which comprises the initial amount of the lease liabilities
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses.

The Company depreciates the right-of-use assets on a
straight-line basis from the lease commencement date
to the earlier of the end of the useful life of the right-of-
use asset or the end of the lease term. The Company also
assesses the right-of-use asset for impairment when such
indicators exist.

The lease liabilities is initially measured at the present
value of the fixed lease payments including variable lease
payments that depend on an index or a rate. The lease
payments are discounted using the interest rate implicit
in the lease or, if not readily determinable, using the
incremental borrowing rate of the Company.

Lease liabilities and ROU assets have been separately
presented in the balance sheet and lease payments have
been classified as financing cash flows.

The Company as lessor

Leases for which the Company is a lessor is classified as
a finance or operating lease. Whenever the terms of the
lease transfers substantially all the risks and rewards
of ownership to the lessee, the contract is classified
as a finance lease. All other leases are classified as
operating leases.

For operating leases, rental income is recognised on a
straight-line basis over the term of the relevant lease.

c. Income taxes

Tax expense recognised in statement of profit and loss
comprises the sum of deferred tax and current tax not
recognised in Other Comprehensive Income (''OCI'') or
directly in equity.

Current income-tax is measured at the amount expected
to be paid to the tax authorities in accordance with the
Indian Income-tax Act. Current income-tax relating to
items recognised outside statement of profit and loss is
recognised outside statement of profit and loss (either in
OCI or in equity).

Deferred tax is provided on temporary differences between
the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the balance
sheet date. Deferred tax liabilities are generally recognised
in full for all taxable temporary differences. Deferred tax
assets are recognised to the extent that it is probable that
the underlying tax loss, unused tax credits or deductible
temporary difference will be utilised against future taxable
income. This is assessed based on the Company''s forecast
of future operating results, adjusted for significant non¬
taxable income and expenses and specific limits on the
use of any unused tax loss or credit. Unrecognised deferred
tax assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable that
future taxable profits will allow the deferred tax asset
to be recovered.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when the
asset is realised or the liability is settled, based on tax rates
(and tax laws) that have been enacted or substantively
enacted at the reporting date. Deferred tax relating to items
recognised outside the statement of profit and loss is
recognised outside the statement of profit and loss (either
in the OCI or in equity). Deferred tax items are recognised
in correlation to the underlying transaction either in the OCI
or directly in equity.

The Company offsets deferred tax assets and deferred tax
liabilities if and only if it has legally enforceable right to set
off the said balances and Company''s intent is to settle on a

net basis as to realise assets and liabilities simultaneously,
and deferred tax assets and deferred tax liabilities relate to
the income tax levied by the same tax authorities.

The Company has elected to exercise the option of
adopting the lower tax rate as permitted under Section
115BAA of the Income-tax Act, 1961. Accordingly, the
Company has recognised Provision for Income-tax at the
new rate prescribed in the said section.

d. 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. Recognition, initial measurement and derecognition

Financial assets and liabilities are recognised when
the Company becomes a party to the contractual
provisions of the instrument. Financial assets and
liabilities are initially measured at fair value, except
trade receivables which is recorded at transaction
price. Transaction costs that are directly attributable to
the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added
to or deducted from the fair value measured on initial
recognition of financial assets or financial liabilities.

The transaction costs directly attributable to the
acquisition of financial assets and financial liabilities
at fair value through profit and loss are immediately
recognised in the statement of profit and loss.

A financial asset (or, where applicable, a part of
a financial asset) is primarily derecognised (i.e.
removed from the Company''s balance sheet) when:

• The rights to receive cash flows from the asset
have expired, or

• The Company has transferred its rights to
receive cash flows under an eligible transaction.

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires.

ii. Classification

For the purpose of subsequent measurement,
financial assets are classified into the following
categories upon initial recognition:

• Debt instruments at amortised cost

• Debt instruments at fair value through other
comprehensive income (FVTOCI)

• Debt instruments, derivatives and equity
instruments at fair value through profit
or loss (FVTPL)

• Equity instruments measured at fair value
through other comprehensive income (FVTOCI)

• Equity instruments measured at fair value profit
or loss (FVTPL)

The classification depends on the entity’s business
model for managing the financial assets and the
contractual terms of the cash flows.

• Debt instruments at amortised cost

A ''debt instrument’ is measured at the amortised
cost if both the following conditions are met:

1. The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and

2. Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest ("SPPI”)
on the principal amount outstanding.

After initial measurement, such financial assets
are subsequently measured at amortised cost
using the effective interest rate (the "EIR”)
method. The EIR is the rate that exactly discounts
future cash receipts or payments through the
expected life of the financial instrument, or
where appropriate, a shorter period.

The EIR amortisation is included in finance
income in the statement of profit and loss. The
losses arising from impairment are recognised
in the statement of profit and loss.

• Debt instruments at fair value through other
comprehensive income (FVTOCI)

A ''debt instrument’ is classified as at the FVTOCI
if both of the following criteria are met:

1. The objective of the business model
is achieved both by collecting
contractual cash flows and selling the
financial assets, and

2. The asset’s contractual cash flows
represent SPPI.

The Company does not have any debt
instruments classified in FVTOCI category.

• Debt instruments at fair value through profit
or loss (FVTPL)

FVTPL is a residual category for debt instruments.
Any debt instrument, which does not meet the
criteria for categorisation as at amortised cost
or as FVTOCI, is classified as at FVTPL.

The Company does not have any debt
instruments classified in FVTPL category.

• Equity instruments

All equity instruments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading are classified as at FVTPL
with all changes recognised in the statement of
profit and loss.

For all other equity instruments, the Company
may make an irrevocable election to present
in the OCI subsequent changes in the fair
value. The Company makes such selection
on an instrument-by-instrument basis. The
classification is made on initial recognition
and is irrevocable. If the Company decides to
classify an equity instrument as FVTOCI, then all
fair value changes on the instrument, excluding
dividends and impairment loss, are recognised
in OCI. There is no recycling of the amounts
from the OCI to the statement of profit and loss,
even on sale of the investment. However, the
Company may transfer the cumulative gain or
loss within categories of equity.

Currently, all investments in equity shares
are classified as FVTPL. There are no equity
instruments classified as FVTOCI.

iii. 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.

ECL is the difference between all contractual cash flows
that are due to the Company in accordance with the
contract and all the cash flows that the entity expects
to receive (i.e., all cash shortfalls), discounted at the
EIR of the instrument. 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.

The Company follows ''simplified approach’ for
recognition of impairment loss allowance on trade
receivables and loans. Simplified approach does
not require the Company to track changes in credit
risk. Rather, it recognises 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 impairment loss allowance (or reversal)
recognised during the year is recognised as income/
expense in the statement of profit and loss.

iv. Classification and subsequent measurement of
financial liabilities

All financial liabilities are recognised initially at
its fair value, adjusted by directly attributable
transaction costs.

The measurement of financial liabilities depends on
their classification, as described below:

• Financial liabilities at fair value

through profit or loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or
loss. Financial liabilities are classified as held
for trading if they are incurred for the purpose
of repurchasing in the near term. The Company
does not have any financial liabilities classified
at fair value through statement of profit or loss.

• Financial liabilities measured at amortised cost

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in the statement of profit
and loss when the liabilities are derecognised.

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.

e. Equity shares

Equity shares are classified as equity. Incremental
costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax,
from the proceeds.

f. Cash and cash equivalents

Cash and cash equivalents comprise cash on hand
and demand deposits, together with other short-term,
highly liquid investments (original maturity less than 3
months) that are readily convertible into known amounts
of cash and which are subject to an insignificant risk of
changes in value.

For the purpose of the statement of cash flows, cash and
cash equivalents consist of cash and short-term deposits,
as defined above, net of outstanding bank overdrafts and
cash credits as they are considered an integral part of the
Company’s cash management.

g. Property, plant and equipment (including capital work-
in-progress)

Property, plant and equipment are stated at cost less
accumulated depreciation/amortisation and accumulated
impairment losses, if any. The cost of property, plant and
equipment includes interest on borrowings attributable to
acquisition of qualifying assets up to the date the asset
is ready for its intended use. Further cost also includes
inward freight and expenses incidental to acquisition and
installation, net of tax credits up to the point the asset
is ready for its intended use. Subsequent expenditure is
capitalised to the asset''s carrying amount only when it is
probable that future economic benefits associated with
the expenditure will flow to the entity and the cost of
the item can be measured reliably. All other repairs and
maintenance costs are expensed when incurred.

Property, plant and equipment acquired but not ready
for use or assets under construction are classified
under capital work in progress and are carried at cost,
comprising direct cost, related incidental expenses and
attributable interest.

Gains or losses arising on the disposal of property, plant
and equipment are determined as the difference between
the disposal proceeds and the carrying amount of the
assets, and are recognised in the statement of profit and
loss within ''other income’ or ''other expenses’ respectively.

h. Intangible assets (including intangible assets under
development)

Intangible assets include computer software which is
stated at cost less accumulated amortisation.

Amortisation method, useful life and residual value are
reviewed periodically and, when necessary, revised.

Gains or losses arising on the disposal of intangible assets
are determined as the difference between the disposal
proceeds and the carrying amount of the assets and are
recognised in the statement of profit and loss within ''other
income’ or ''other expenses’ respectively.

The useful life of computer software is considered as 5
years for computation of amortisation.

Intangible assets acquired but not ready for use or
assets under development are classified under intangible
assets under development and are carried at cost,
comprising direct cost, related incidental expenses and
attributable interest.

i. Depreciation

Depreciation is provided on property, plant and equipment
on pro rata basis for the period of use, on the written
down value method (WDV) as per the useful life of the
assets prescribed under Schedule II to the Companies
Act, 2013 (refer note (g) above), which is in line with the
management’s estimate of useful life, except for moulds.
Cost of moulds are capitalised and depreciated over the
period of 36 months which is the estimated useful life
of the mould. Based on the technical assessment made
by the technical expert and management estimate, the
Company depreciates moulds over the useful life of three
years which is different from the useful life prescribed in
Schedule II to the Companies Act 2013. The management
believes that this estimated useful life is realistic and
reflect fair approximation of the period over which the
assets are likely to be used.

Freehold land is not depreciated. Depreciation on assets
under construction commences only when the assets are
ready for their intended use.

Depreciation method, useful life and residual value are
reviewed periodically and, when necessary, revised. No
further charge is provided in respect of assets that are fully
written down but are still in use.

j. Investment properties

Investment properties were those that were held for long¬
term rental yields or for capital appreciation or both, and that
is not occupied by the Company. Investment properties are
measured initially at its cost, including related transaction
costs. Subsequent expenditure is capitalised to the asset’s
carrying amount only when it is probable that future
economic benefits associated with the expenditure will
flow to the Company in a period exceeding 1 year and the
cost of the item can be measured reliably. All other repairs
and maintenance costs are expensed when incurred.

Investment properties were depreciated using the WDV
method over the useful live of 60 years, based on the rates
prescribed under Schedule II to the Companies Act, 2013.

k. Impairment of non-financial assets

The carrying amount of the non-financial assets are
reviewed at each balance sheet date if there is any indication
of impairment based on internal /external factors. An
impairment loss is recognised whenever the carrying
amount of an asset or a cash generating unit exceeds its
recoverable amount. The recoverable amount of the assets
(or where applicable, that of the cash generating unit to
which the asset belongs) is estimated as the higher of its
net selling price and its value in use. Impairment loss is
recognised in the statement of profit and loss.

After impairment, depreciation is provided on the revised
carrying amount of the asset over its remaining useful
life. A previously recognised impairment loss is increased
or reversed depending on changes in circumstances.
However, the carrying value after reversal is not increased
beyond the carrying value that would have prevailed by
charging usual depreciation if there were no impairment.

l. Fair value measurement

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability
takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability

The principal or the most advantageous market must be
accessible by the Company.

The fair value of an asset or a liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their economic best interest. A fair value
measurement of a non-financial asset takes into account a
market participant''s ability to generate economic benefits
by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in
its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use
of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value
measurement as a whole:

• Level 1 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities

• Level 2 - Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable

• Level 3 - Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable

m. Borrowing costs

General and specific borrowing costs that are directly
attributable to the acquisition, construction or production
of a qualifying asset are capitalised during the period of
time that is required to complete and prepare the asset for
its intended use or sale. Qualifying assets are assets that
necessarily take a substantial period of time to get ready
for their intended use or sale.

Investment income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for
capitalisation.

Other borrowing costs are expensed in the period in which
they are incurred.

n. Employee benefits

• Defined contribution plans

Provident fund benefit is a defined contribution plan
under which the Company pays fixed contributions
into funds established under the Employees''
Provident Funds and Miscellaneous Provisions Act,
1952. The Company has no legal or constructive
obligations to pay further contributions after payment
of the fixed contribution.

• Defined benefit plans

Gratuity is a post-employment benefit defined under
The Payment of Gratuity Act, 1972 and is in the nature
of a defined benefit plan. The employees are covered
under the gratuity cum life assurance scheme with
the Life Insurance Corporation of India (''LIC''). The
defined benefit/obligation is calculated at or near the
reporting date by an independent actuary using the
projected unit credit method. The liability recognised
in the financial statements in respect of gratuity is
the present value of the defined benefit obligation
at the reporting date, together with adjustments
for unrecognised actuarial gains or losses and
past service costs.

Past service cost is recognised immediately to
the extent that the benefits are already vested and
otherwise is amortised on a straight-line basis
over the average period until the benefits become
vested. Actuarial gains and losses arising from past
experience and changes in actuarial assumptions are
credited or charged to the statement of OCI in the
year in which such gains or losses are determined.

Re-measurements, comprising of actuarial gains
and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined
benefit liability and the return on plan assets
(excluding amounts included in measurement of
net interest on the net defined benefit liability), are
recognised immediately in the balance sheet with
a corresponding debit or credit to retained earnings
through OCI in the period in which they occur.
Remeasurements are not reclassified to profit and
loss in subsequent periods.

• Short-term employee benefits

Liability in respect of compensated absences is
estimated on the basis of an actuarial valuation
performed by an independent actuary using the
projected unit credit method. Actuarial gains and

losses arising from past experience and changes
in actuarial assumptions are charged to statement
of profit and loss in the year in which such gains or
losses are determined.

Expense in respect of other short-term benefits is
recognised on the basis of the amount paid or payable
for the period during which services are rendered
by the employee.

o. Inventories
Raw material

Valuation of raw material is done on first-in first-out basis,
however the valuation of "Turnings, Chips, foundry return
and Billets” (internal generated scrap) is done based on
alloy rate derived using management model for valuation.

Cost of inventory in raw material comprises cost of purchase
and other costs incurred in bringing the inventories to their
present condition and location. Trade discount, rebates
and other similar items are deducted in determining the
cost of purchase. Costs are assigned to individual items of
inventory on the basis of first-in first-out basis.

Work-in-progress ("WIP”) and Finished goods ("FG”)

Inventories of Work-in-progress ("WIP”) and Finished goods
("FG”) are valued at the lower of cost or net realisable
value. The cost is determined using the alloy rate derived
using management model for valuation and overheads
incurred in bringing the inventories to their present
location and condition.

Stores and spares

Stores and spares are stated at cost and are charged to the
statement of profit and loss, when consumed.

---

Mar 31, 2024

1. Corporate information

Uni-Abex Alloy Products Limited (the ''Company'') is a company domiciled in India, incorporated under the Companies Act, 1956. The Company is listed on the Bombay Stock Exchange (BSE). The Company produces static, centrifugal castings and assemblies in heat and corrosion resistant alloys and is a leader in alloy steel castings for decanters and reformer tubes. The Company has its registered office at Liberty Building, Sir Vithaldas Thackersey Marg, Mumbai and its manufacturing plant is at Dharwad, Karnataka.

2. Basis of preparation

The financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 (as amended from time to time) notified under Section 133 of the Companies Act, 2013 ("the Act”), other relevant provisions of the Act, the presentation and disclosure requirement of Division II of Schedule III to the Act and guidelines issued by the Securities and Exchange Board of India (SEBI). The accounting policies have been consistently applied for all the periods presented in the financial statements.

The financial statements prepared by the management of the Company comprises of the balance sheet as at 31 March 2024, the statement of profit and loss, the statement of cash flows for the year then ended, the statement of changes in equity as at 31 March 2024, and a summary of the material accounting policies and other explanatory information (together hereinafter referred to as "financial statements”). There are no significant changes in accounting policy in current year as compared to previous year.

The balance sheet, the statement of profit and loss and the statement of changes in equity are prepared and presented in the format prescribed in the Division II of Schedule III to the Act. The statement of cash flows has been prepared and presented as per the requirements of Ind AS 7 "Statement of Cash Flows”.

These financial statements of the Company as at and for year ended 31 March 2024 were approved and authorised by the Company''s Board of Directors on 10 May 2024. The revision to the financial statement is permitted by the Board of Directors after obtaining necessary approvals or at the instance of regulatory authorities as per the provision of the act.

The financial statements have been prepared on a going concern basis under the historical cost basis except for the following -

• Certain financial assets and liabilities have been measured at fair value (refer accounting policy regarding financial instruments); and

• Defined benefit plans - measured using actuarial valuation.

The financial statements have been prepared using the material accounting policies and measurement bases summarised

below. These were used throughout all periods presented in the financial statements.

Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current and non-current classification. An asset is classified as current when it is:

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

• Held primarily for the purpose of trading,

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

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

All other assets are classified as non-current.

A liability is classified as current when:

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

• It is held primarily for the purpose of trading,

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

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

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. Based on the nature of business carried out by the Company, the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as not exceeding twelve months. Deferred tax assets and liabilities are classified as non-current assets and non-current liabilities respectively.

Use of critical estimates and judgements

The preparation of financial statements in conformity with Ind AS requires management to make estimates, assumptions and exercise judgement in applying the accounting policies that affect the reported amount of assets, liabilities and disclosure of contingent liabilities at the date of financial statements and the reported amounts of income and expenses during the year.

The management believes that these estimates are prudent and reasonable and are based upon the management''s best knowledge of current events and actions. Actual results could differ from these estimates and differences between actual results and estimates are recognised in the periods in which the results are known or materialised.

Below is an overview of the areas that involved a high degree

of judgement or complexity, and of items which are more likely

to be materially adjusted due to estimates and assumptions

turning out to be different than those originally assessed.

• Useful lives of property, plant and equipment - Property, plant and equipment represent a material proportion of the asset base of the Company. The charge in respect of periodic depreciation/amortisation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company’s assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end.

• Recoverability of deferred tax assets - The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. Significant judgement is involved in determining whether there will be sufficient taxable profits in the future to recover deferred tax assets.

• Defined benefit obligation - The cost of post-employment benefits is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases and mortality rates. Due to the long-term nature of these plans such estimates are subject to significant uncertainty. The assumptions used are disclosed in Note 38 to these financial statements.

• Fair value measurements - Management applies valuation techniques to determine the fair value of financial instruments, investment properties and certain property, plant and equipment where active market quotes are not available. This involves developing estimates and assumptions consistent with how market participants would price the instrument.

• Impairment of assets - In assessing impairment, management estimates the recoverable amounts of each asset (in case of non-financial assets) based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future cash flows and the determination of a suitable discount rate.

• Impairment of financial assets - The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

• Income tax - Significant judgments are involved in determining the provision for income tax, including the

amount expected to be paid or recovered in connection with uncertain tax positions.

• Provisions - Provisions are recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions (excluding defined benefit plan and compensated absences) are not discounted to its present value and are determined based on best estimate required to settle obligation at the balance sheet date. These are reviewed at each balance sheet date adjusted to reflect the current best estimates.

• Contingent liabilities - At each balance sheet date, basis the management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future outcome may be different from this judgement.

• Leases: Ind AS 116 "Leases” requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is certain. The Company makes an assessment on the expected lease term on a lease-bylease basis and thereby assesses whether it is reasonably certain that any option to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying assets to Company’s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future period is reassessed to ensure that the lease term reflects the current economic circumstances.

• Contract assets: Any provisions/reversal of the contract asset is done on the basis of specific identification method. As per management estimate billing is done within one year from the end of the financial year.

Estimates and Judgements are continuously evaluated. These are based on historical experience and other factors including expectation of future events that may have financial impact on the Company and are believed to be reasonable under the circumstances.

3A. Summary of material accounting policies

a. Revenue recognition

i. Sale of products

The Company manufactures and sells a range of alloy products. Revenue is recognised when control of the products is transferred, being when the

products are delivered to the customer, and there is no unfulfilled obligation that could affect the customer''s acceptance of the products. Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts, incentives and returns, etc., if any.

Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied.

Amounts disclosed as revenue are net of returns, trade allowances, rebates and discounts, goods and service tax and other applicable taxes, which are collected on behalf of the government or on behalf of third parties.

A receivable is recognised when the products are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. Trade receivables are recognised at their transaction price unless those contain significant financing component determined in accordance with Ind AS 115.

The Company does not expect to have any contracts where the period between the transfer of the promised products or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

ii. Interest and dividend

Interest income is recognised on an accrual basis using the effective interest method. Dividends are recognised at the time the right to receive the payment is established.

iii. Export benefits/incentives

Export benefits / incentives are accounted on accrual basis in accordance with various government schemes in respect thereof if the entitlements can be estimated with reasonable assurance and conditions precedent to claim are fulfilled and are shown under "Other operating revenue”.

iv. Other income

Other income is recognised when no material uncertainty as to its determination or realisation exists.

b. Leases

The Company as lessee

The Company''s leased assets primarily consist of leases for building. The Company assesses whether a contract contains lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

i. the contract involves the use of an identified asset;

ii. the Company has substantially all of the economic benefits from use of the asset through the period of the lease; and

iii. the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognises a right-of-use (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a lease term of twelve months or less (short-term leases) and low value leases.

For these short-term and low value leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liabilities adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

The Company depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Company also assesses the right-of-use asset for impairment when such indicators exist.

The lease liabilities is initially measured at the present value of the fixed lease payments including variable lease payments that depend on an index or a rate. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rate of the Company.

Lease liabilities and ROU assets have been separately presented in the balance sheet and lease payments have been classified as financing cash flows.

The Company as lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfers substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

For operating leases, rental income is recognised on a straight-line basis over the term of the relevant lease.

c. Income taxes

Tax expense recognised in statement of profit and loss comprises the sum of deferred tax and current tax not recognised in Other Comprehensive Income (''OCI'') or directly in equity.

Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act. Current income-tax relating to items recognised outside statement of profit and loss is recognised outside statement of profit and loss (either in OCI or in equity).

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the balance sheet date. Deferred tax liabilities are generally recognised in full for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that the underlying tax loss, unused tax credits or deductible temporary difference will be utilised against future taxable income. This is assessed based on the Company''s forecast of future operating results, adjusted for significant nontaxable income and expenses and specific limits on the use of any unused tax loss or credit. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised outside the statement of profit and loss is recognised outside the statement of profit and loss (either in the OCI or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in the OCI or directly in equity.

The Company offsets deferred tax assets and deferred tax liabilities if and only if it has legally enforceable right to set off the said balances and Company''s intent is to settle on a net basis as to realise assets and liabilities simultaneously, and deferred tax assets and deferred

tax liabilities relate to the income tax levied by the same tax authorities.

The Company has elected to exercise the option of adopting the lower tax rate as permitted under Section 115BAA of the Income-tax Act, 1961. Accordingly, the Company has recognised Provision for Income-tax at the new rate prescribed in the said section.

d. 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. Recognition, initial measurement and derecognition

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value, except trade receivables which is recorded at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial assets or financial liabilities.

The transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value through profit and loss are immediately recognised in the statement of profit and loss.

A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e. removed from the Company''s balance sheet) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows under an eligible transaction.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

ii. Classification

For the purpose of subsequent measurement, financial assets are classified into the following categories upon initial recognition:

• Debt instruments at amortised cost

• Debt instruments at fair value through other comprehensive income (FVTOCI)

• Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

• Equity instruments measured at fair value through other comprehensive income (FVTOCI)

• Equity instruments measured at fair value profit or loss (FVTPL)

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows.

• Debt instruments at amortised cost

A ''debt instrument’ is measured at the amortised cost if both the following conditions are met:

1. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

2. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest ("SPPI”) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (the "EIR”) method. The EIR is the rate that exactly discounts future cash receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter period.

The EIR amortisation is included in finance income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss.

• Debt instruments at fair value through other comprehensive income (FVTOCI)

A ''debt instrument’ is classified as at the FVTOCI if both of the following criteria are met:

1. The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

2. The asset’s contractual cash flows represent SPPI.

The Company does not have any debt instruments classified in FVTOCI category.

• Debt instruments at fair value through profit or loss (FVTPL)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorisation as at amortised cost or as FVTOCI, is classified as at FVTPL.

The Company does not have any debt instruments classified in FVTPL category.

• Equity instruments

All equity instruments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL with all changes recognised in the statement of profit and loss.

For all other equity instruments, the Company may make an irrevocable election to present in the OCI subsequent changes in the fair value. The Company makes such selection on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable. If the Company decides to classify an equity instrument as FVTOCI, then all fair value changes on the instrument, excluding dividends and impairment loss, are recognised in OCI. There is no recycling of the amounts from the OCI to the statement of profit and loss, even on sale of the investment. However, the Company may transfer the cumulative gain or loss within categories of equity.

Currently, all investments in equity shares are classified as FVTPL. There are no equity instruments classified as FVTOCI.

iii. 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.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the EIR of the instrument. 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.

The Company follows ''simplified approach’ for recognition of impairment loss allowance on trade receivables and loans. Simplified approach does not require the Company to track changes in credit risk. Rather, it recognises 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 impairment loss allowance (or reversal) recognised during the year is recognised as income/ expense in the statement of profit and loss.

iv. Classification and subsequent measurement of financial liabilities

All financial liabilities are recognised initially at its fair value, adjusted by directly attributable transaction costs.

The measurement of financial liabilities depends on their classification, as described below:

• Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. The Company does not have any financial liabilities classified at fair value through statement of profit or loss.

• Financial liabilities measured at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in the statement of profit and loss when the liabilities are derecognised.

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.

e. Equity shares

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

f. Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments (original maturity less than 3 months) that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts and cash credits as they are considered an integral part of the Company’s cash management.

g. Property, plant and equipment (including capital work-in-progress)

Property, plant and equipment are stated at cost less accumulated depreciation/amortisation and accumulated impairment losses, if any. The cost of property, plant and equipment includes interest on borrowings attributable to acquisition of qualifying assets up to the date the asset is ready for its intended use. Further cost also includes inward freight and expenses incidental to acquisition and installation, net of tax credits up to the point the asset is ready for its intended use. Subsequent expenditure is capitalised to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the entity and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.

Property, plant and equipment acquired but not ready for use or assets under construction are classified under capital work in progress and are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets, and are recognised in the statement of profit and loss within ''other income’ or ''other expenses’ respectively.

Useful life of property plant and equipment
Assets	Useful life
Roads	10 Years
Buildings	3-60 Years
Pipelines	30 Years
Plant and equipments	15 Years
Electrical installations	10 Years
Air conditioning equipments	5 Years
Computers	3-6 Years
Furniture and fixtures	10 Years
Office and factory equipments	5 Years
Motor cars	8-10 Years
Mould and mould boxes	3 Years

h. Intangible assets (including intangible assets under development)

Intangible assets include computer software which is stated at cost less accumulated amortisation.

Amortisation method, useful life and residual value are reviewed periodically and, when necessary, revised.

Gains or losses arising on the disposal of intangible assets are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognised in the statement of profit and loss within ''other income’ or ''other expenses’ respectively.

The useful life of computer software is considered as 5 years for computation of amortisation.

Intangible assets acquired but not ready for use or assets under development are classified under intangible assets under development and are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

i. Depreciation

Depreciation is provided on property, plant and equipment on pro rata basis for the period of use, on the written down value method (WDV) as per the useful life of the assets prescribed under Schedule II to the Companies Act, 2013 (refer note (g) above), which is in line with the management’s estimate of useful life, except for moulds. Cost of moulds are capitalised and depreciated over the period of 36 months which is the estimated useful life of the mould. Based on the technical assessment made by the technical expert and management estimate, the Company depreciates moulds over the useful life of three years which is different from the useful life prescribed in Schedule II to the Companies Act 2013. The management believes that this estimated useful life is realistic and

reflect fair approximation of the period over which the assets are likely to be used.

Freehold land is not depreciated. Depreciation on assets under construction commences only when the assets are ready for their intended use.

Depreciation method, useful life and residual value are reviewed periodically and, when necessary, revised. No further charge is provided in respect of assets that are fully written down but are still in use.

j. Investment properties

Investment properties were those that were held for longterm rental yields or for capital appreciation or both, and that is not occupied by the Company. Investment properties are measured initially at its cost, including related transaction costs. Subsequent expenditure is capitalised to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company in a period exceeding 1 year and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.

Investment properties were depreciated using the WDV method over the useful live of 60 years, based on the rates prescribed under Schedule II to the Companies Act, 2013.

k. Impairment of non-financial assets

The carrying amount of the non-financial assets are reviewed at each balance sheet date if there is any indication of impairment based on internal /external factors. An impairment loss is recognised whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. The recoverable amount of the assets (or where applicable, that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use. Impairment loss is recognised in the statement of profit and loss.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognised impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there were no impairment.

l. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

m. Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on

qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Other borrowing costs are expensed in the period in which they are incurred.

n. Employee benefits

• Defined contribution plans

Provident fund benefit is a defined contribution plan under which the Company pays fixed contributions into funds established under the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. The Company has no legal or constructive obligations to pay further contributions after payment of the fixed contribution.

• Defined benefit plans

Gratuity is a post-employment benefit defined under The Payment of Gratuity Act, 1972 and is in the nature of a defined benefit plan. The employees are covered under the gratuity cum life assurance scheme with the Life Insurance Corporation of India (''LIC''). The defined benefit/obligation is calculated at or near the reporting date by an independent actuary using the projected unit credit method. The liability recognised in the financial statements in respect of gratuity is the present value of the defined benefit obligation at the reporting date, together with adjustments for unrecognised actuarial gains or losses and past service costs.

Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the statement of OCI in the year in which such gains or losses are determined.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in measurement of net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the

period in which they occur. Remeasurements are not reclassified to profit and loss in subsequent periods.

• Short-term employee benefits

Liability in respect of compensated absences is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are charged to statement of profit and loss in the year in which such gains or losses are determined.

Expense in respect of other short-term benefits is recognised on the basis of the amount paid or payable for the period during which services are rendered by the employee.

o. Inventories Raw material

Valuation of raw material is done on first-in first-out basis, however the valuation of "Turnings, Chips, foundry return and Billets” (internal generated scrap) is done based on alloy rate derived using management model for valuation.

Cost of inventory in raw material comprises cost of purchase and other costs incurred in bringing the inventories to their present condition and location. Trade discount, rebates and other similar items are deducted in determining the cost of purchase. Costs are assigned to individual items of inventory on the basis of first-in first-out basis.

Work-in-progress ("WIP”) and Finished goods ("FG”)

Inventories of Work-in-progress ("WIP”) and Finished goods ("FG”) are valued at the lower of cost or net realisable value. The cost is determined using the alloy rate derived using management model for valuation and overheads incurred in bringing the inventories to their present location and condition.

Stores and spares

Stores and spares are stated at cost and are charged to the statement of profit and loss, when consumed.

p. Provisions, contingent liabilities and contingent assets

A provision is recognised when the Company has a present obligation as a result of past events and it is probable

that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on management estimate of the amount required to settle the obligation at the date of the balance sheet. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

Contingent assets are not recognised in the financial statements. However, it is disclosed only when an inflow of economic benefits is probable.

q. Foreign currency transactions and translations Functional and Presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (''the functional currency''). The financial statements are presented in Indian Rupees (INR), which is the Company''s functional and presentation currency.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognised in profit or loss. All foreign exchange gains and losses are presented in the statement of profit and loss on a net basis.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.

r. Earnings per share

Basic earnings per share are computed by dividing net profit after tax (excluding other comprehensive income)

by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share after considering the income tax effect of all finance costs associated with dilutive potential equity shares, and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share.

s. Operating segments

An operating segment is a component of a Company that engages in business activities from which it may earn revenue and incur expenses, including revenue and expenses that relates to transactions with any of the Company’s other components, for which discrete financial information is available, and such information is regularly reviewed by the Company’s Chief Operating Decision Maker (CODM) to make key decision on operations of the segments and assess its performance.

t. Rounding off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.

u. Events after report date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Where the events are indicative of conditions that arose after the reporting period, the amounts are not adjusted, but are disclosed if those non-adjusting events are material.

3B. Recent accounting pronouncements:

Ministry of Corporate Affairs ("MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31 March 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

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Mar 31, 2023

3. Summary of significant accounting policies

a. Revenue recognition

i. Sale of products

The Company manufactures and sells a range of alloy products. Revenue is recognised when control of the products is transferred, being when the products are delivered to the customer, and there is no unfulfilled obligation that could affect the customer''s acceptance of the products. Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts, incentives and returns, etc., if any.

Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied.

Amounts disclosed as revenue are net of returns, trade allowances, rebates and discounts, goods and service tax and other applicable taxes, which are collected on behalf of the government or on behalf of third parties.

A receivable is recognised when the products are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. Trade receivables are recognised at their transaction price unless those contain significant financing component determined in accordance with Ind AS 115.

The Company does not expect to have any contracts where the period between the transfer of the promised products or services to the customer and payment by the customer exceeds

one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

ii. Interest and dividend

Interest income is recognised on an accrual basis using the effective interest method. Dividends are recognised at the time the right to receive the payment is established.

iii. Export benefits/incentives

Export benefits / incentives are accounted on accrual basis in accordance with various government schemes in respect thereof if the entitlements can be estimated with reasonable assurance and conditions precedent to claim are fulfilled and are shown under "Other operating revenue”.

iv. Other income

Other income is recognised when no significant uncertainty as to its determination or realisation exists.

b. Leases

The Company as lessee

The Company''s leased assets primarily consist of leases for building. The Company assesses whether a contract contains lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

i. the contract involves the use of an identified asset;

ii. the Company has substantially all of the economic benefits from use of the asset through the period of the lease; and

iii. the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognises a right-of-use (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a lease term of twelve months or less (shortterm leases) and low value leases.

For these short-term and low value leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liabilities adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

The Company depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Company also assesses the right-of-use asset for impairment when such indicators exist.

The lease liabilities is initially measured at the present value of the fixed lease payments including variable lease payments that depend on an index or a rate. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rate of the Company.

Lease liabilities and ROU asset have been separately presented in the balance sheet and lease payments have been classified as financing cash flows.

The Company as lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfers substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

For operating leases, rental income is recognised on a straight-line basis over the term of the relevant lease.

c. Income taxes

Tax expense recognised in statement of profit and loss comprises the sum of deferred tax and current tax not recognised in Other Comprehensive Income (''OCI'') or directly in equity.

Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act. Current income-tax relating to items recognised outside statement of profit and loss is recognised outside statement of profit and loss (either in OCI or in equity).

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the balance sheet date. Deferred tax liabilities are generally recognised in full for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that the underlying tax loss, unused tax credits or deductible temporary difference will be utilised against future taxable income. This is assessed based on the Company''s forecast of future operating results, adjusted for significant non-taxable income and expenses and specific limits on the use of any unused tax loss or credit. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised outside the statement of profit and loss is recognised outside the statement of profit and loss (either in the OCI or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in the OCI or directly in equity.

The Company offsets deferred tax assets and deferred tax liabilities if and only if it has legally enforceable right to set off the said balances and Company''s intent is to settle on a net basis as to realise assets and liabilities simultaneously, and deferred tax assets and deferred tax liabilities relate to the income tax levied by the same tax authorities.

d. 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. Recognition, initial measurement and derecognition

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value, except trade receivables which is recorded at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets

and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial assets or financial liabilities.

The transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value through profit and loss are immediately recognised in the statement of profit and loss.

A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e. removed from the Company''s balance sheet) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows under an eligible transaction.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

ii. Classification

For the purpose of subsequent measurement, financial assets are classified into the following categories upon initial recognition:

• Debt instruments at amortised cost

• Debt instruments at fair value through other comprehensive income (FVTOCI)

• Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

• Equity instruments measured at fair value through other comprehensive income (FVTOCI)

• Equity instruments measured at fair value profit or loss (FVTPL)

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

- Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:

1. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

2. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest ("SPPI”) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (the "EIR”) method. The EIR is the rate that exactly discounts future cash receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter period.

The EIR amortisation is included in finance income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss.

- Debt instruments at fair value through other comprehensive income (FVTOCI)

A ''debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:

1. The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

2. The asset''s contractual cash flows represent SPPI.

The Company does not have any debt instruments classified in FVTOCI category.

- Debt instruments at fair value through profit or loss (FVTPL)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorisation as at amortised cost or as FVTOCI, is classified as at FVTPL.

The Company does not have any debt instruments classified in FVTPL category.

- Equity instruments

All equity instruments in scope of Ind AS 109 are measured at fair value. Equity

instruments which are held for trading are classified as at FVTPL with all changes recognised in the statement of profit and loss.

For all other equity instruments, the Company may make an irrevocable election to present in the OCI subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable. If the Company decides to classify an equity instrument as FVTOCI, then all fair value changes on the instrument, excluding dividends and impairment loss, are recognised in OCI. There is no recycling of the amounts from the OCI to the statement of profit and loss, even on sale of the investment. However, the Company may transfer the cumulative gain or loss within categories of equity.

Currently, all investments in equity shares are classified as FVTPL. There are no equity instruments classified as FVTOCI.

iii. 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.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the EIR of the instrument. 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.

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 recognises 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 impairment loss allowance (or reversal) recognised during the year is recognised as income/ expense in the statement of profit and loss.

iv. Classification and subsequent measurement of financial liabilities

All financial liabilities are recognised initially at its fair value, adjusted by directly attributable transaction costs.

The measurement of financial liabilities depends on their classification, as described below:

- Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. The Company does not have any financial liabilities classified at fair value through statement of profit or loss.

- Financial liabilities measured at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in the statement of profit and loss when the liabilities are derecognised.

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.

e. Equity shares

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

f. Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other shortterm, highly liquid investments (original maturity less than 3 months) that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts and cash credits as they are considered an integral part of the Company''s cash management.

g. Property, plant and equipment (including capital work-in-progress)

Property, plant and equipment are stated at cost less accumulated depreciation/amortisation and accumulated impairment losses, if any. The cost of property, plant and equipment includes interest on borrowings attributable to acquisition of qualifying assets up to the date the asset is ready for its intended use. Further cost also includes inward freight and expenses incidental to acquisition and installation, net of tax credits up to the point the asset is ready for its intended use. Subsequent expenditure is capitalised to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the entity and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.

Property, plant and equipment acquired but not ready for use or assets under construction are classified under capital work in progress and are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets, and are recognised in the statement of profit and loss within ''other income'' or ''other expenses'' respectively.

h. Intangible assets

Intangible assets include computer software which is stated at cost less accumulated amortisation.

Amortisation method, useful life and residual value are reviewed periodically and, when necessary, revised.

Gains or losses arising on the disposal of intangible assets are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognised in the statement of profit and loss within ''other income'' or ''other expenses'' respectively.

The useful life of computer software is considered as 5 years for computation of amortisation.

i. Depreciation

Depreciation is provided on property, plant and equipment on pro rata basis for the period of use, on the written down value method (WDV) as per the useful life of the assets prescribed under Schedule II to the Companies Act, 2013 (refer note (g) above), which is in line with the management''s estimate of useful life, except for moulds. Cost of moulds are capitalised and depreciated over the period of 36 months which is the estimated useful life of the mould. Based on the technical assessment made by the technical expert and management estimate, the Company depreciates moulds over the useful life of three years which is different from the useful life prescribed in Schedule II to the Companies Act 2013. The management believes that this estimated useful life is realistic and reflect fair approximation of the period over which the assets are likely to be used.

Freehold land is not depreciated. Depreciation on assets under construction commences only when the assets are ready for their intended use.

Depreciation method, useful life and residual value are reviewed periodically and, when necessary, revised. No further charge is provided in respect of assets that are fully written down but are still in use.

j. Investment property

Investment property are those that are held for longterm rental yields or for capital appreciation or both, and that is not occupied by the Company. Investment property is measured initially at its cost, including related transaction costs. Subsequent expenditure is capitalised to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company in a period exceeding 1 year and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.

Investment property are depreciated using the WDV method over the useful live of 60 years, based on the rates prescribed under Schedule II to the Companies Act, 2013.

k. Impairment of non-financial assets

The carrying amount of the non-financial assets are reviewed at each balance sheet date if there is any indication of impairment based on internal /external factors. An impairment loss is recognised whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. The recoverable amount of the assets (or where applicable, that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use. Impairment loss is recognised in the statement of profit and loss.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognised impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there were no impairment.

l. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

m. Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their

expenditure on qualifying assets is deducted from

the borrowing costs eligible for capitalisation.

Other borrowing costs are expensed in the period in

which they are incurred.

n. Employee benefits

• Defined contribution plans

Provident fund benefit is a defined contribution plan under which the Company pays fixed contributions into funds established under the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. The Company has no legal or constructive obligations to pay further contributions after payment of the fixed contribution.

• Defined benefit plans

Gratuity is a post-employment benefit defined under The Payment of Gratuity Act, 1972 and is in the nature of a defined benefit plan. The employees are covered under the gratuity cum life assurance scheme with the Life Insurance Corporation of India (''LIC''). The defined benefit/ obligation is calculated at or near the reporting date by an independent actuary using the projected unit credit method. The liability recognised in the financial statements in respect of gratuity is the present value of the defined benefit obligation at the reporting date, together with adjustments for unrecognised actuarial gains or losses and past service costs.

Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the statement of OCI in the year in which such gains or losses are determined.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in measurement of net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit and loss in subsequent periods.

• Other long-term employee benefits

Liability in respect of compensated absences is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are charged to statement of profit and loss in the year in which such gains or losses are determined.

• Short-term employee benefits

Expense in respect of other short-term benefits is recognised on the basis of the amount paid or payable for the period during which services are rendered by the employee.

o. Inventories

Raw material

Valuation of raw material is done on first-in first-out basis, however the valuation of "Turnings, Chips, foundry return and Billets” (internal generated scrap) is done based on alloy rate derived using management model for valuation.

Cost of inventory in raw material comprises cost of purchase and other costs incurred in bringing the inventories to their present condition and location. Trade discount, rebates and other similar items are deducted in determining the cost of purchase. Costs are assigned to individual items of inventory on the basis of first-in first-out basis.

Work-in-progress ("WIP") and Finished goods ("FG")

Inventories of Work-in-progress ("WIP”) and Finished goods ("FG”) are valued at the lower of cost or net realisable value.

Stores and spares

Stores and spares are stated at cost and are charged to the statement of profit and loss, when consumed.

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Mar 31, 2018

Summary of significant accounting policies and other explanatory information to the financial statements as at and for the year ended 31 March 2018

1. Corporate information

Uni Abex Alloy products Limited (‘company’) is a company domiciled in India, incorporated under the companies Act, 1956. The company is listed on the Bombay Stock Exchange (BSE). The company produces static, centrifugal castings and assemblies in heat and corrosion resistant alloys and is a leader in alloy steel castings for decanters and reformer tubes. The Company has its registered office at Liberty Building, Sir Vithaldas Thakersey Marg, Mumbai and its plant at Thane and also set up Greenfield project at Dharwad which is operational since November, 2013.

2. Significant accounting policies

a. Basis of preparation

The Company has prepared the financial statements which comprise the balance sheet as at 31 March 2018, the statement of profit and loss, the statement of cash flows and the statement of changes in equity for the year ended 31 March 2018, and a summary of the significant accounting policies and other explanatory information (together hereinafter referred to as “financial statements”).

The financial statements have been prepared on a going concern basis under the historical cost basis except for the following -

- Certain financial assets and liabilities have been measured at fair value (refer accounting policy regarding financial instruments); and

- Defined benefit plans - measured using actuarial valuation.

The financial statements have been prepared using the significant accounting policies and measurement basis summarized below. These were used throughout all periods presented in the financial statements, except where the company has applied certain accounting policies and exemptions upon transition to Ind AS. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification. An asset is classified as current when it is:

- Expected to be realized or intended to sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realized within twelve months after the reporting period, or

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

All other assets are classified as non-current.

A liability is classified as current when:

- It is expected to be settled in normal operating cycle

- It is held primarily for the purpose of trading

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

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

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

b. Statement of compliance with Ind AS

The financial statements of the Company have been prepared in accordance with Ind AS notified by the companies (Indian Accounting Standards) Rules, 2015 and companies (Indian Accounting Standards) Amendment Rules, 2016. Accordingly, the financial statements for the year ended 31 March 2018 are the Company’s first Ind AS financial statements.

For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements

in accordance with accounting standards notified under section 133 of the Companies Act 2013 (the ‘Act’), read together with paragraph 7 of the companies (Accounts) Rules, 2014 (Indian GAAp) (hereinafter referred to as ‘Previous GAAP’) for its statutory reporting requirement in India before adopting Ind AS. The financial statements for the comparative year ended 31 March 2017 and opening balance sheet at the beginning of the comparative year as at 1 April, 2016 are also been restated in accordance with Ind AS for comparative information. Reconciliations and explanations of the effect of the transition from previous GAAp to Ind AS on the Company’s balance sheet, statement of profit and loss and statement of cash flows are provided in note 40 to these financial statements.

c. Critical estimates and judgments

The preparation of financial statements in conformity with Ind AS requires management to make estimates, assumptions and exercise judgment in applying the accounting policies that affect the reported amount of assets, liabilities and disclosure of contingent liabilities at the date of financial statements and the reported amounts of income and expenses during the year.

The management believes that these estimates are prudent and reasonable and are based upon the management’s best knowledge of current events and actions. Actual results could differ from these estimates and differences between actual results and estimates are recognized in the periods in which the results are known or materialized.

Below is an overview of the areas that involved a higher degree of judgments or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.

- Useful lives of property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of company’s assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end.

- Recoverability of deferred tax assets

The company reviews the carrying amount of deferred tax assets at the end of each reporting period. Significant judgments is involved in determining whether there will be sufficient taxable profits in the future to recover deferred tax assets.

- Defined benefit obligation

The cost of post-employment benefits is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases and mortality rates. Due to the long term nature of these plans such estimates are subject to significant uncertainty. The assumptions used are disclosed in Note 35 to these financial statements.

- Fair value measurements

Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instrument.

- Impairment of assets

In assessing impairment, management estimates the recoverable amounts of each asset (in case of non-financial assets) based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future cash flows and the determination of a suitable discount rate.

d. Revenue recognition

Revenue is measured at the fair value of consideration received or receivable. Revenue is recognized only when it can be reliably measured and it is probable that the economic benefits will flow to the Company. Amount disclosed as revenue are reported net of sales tax, goods and service tax, discount and applicable taxes (excluding excise duty, wherever applicable) which are collected on behalf of the government or on behalf of third parties.

i. Sale of goods

Revenue from sale of goods is recognized on transfer of risk and rewards of ownership of goods to the buyer and when no significant uncertainty exists regarding the amount of consideration that will be derived.

ii. Interest and Dividend

interest income is recognized on an accrual basis using the effective interest method. Dividends are recognized at the time the right to receive the payment is established.

iii. Export benefits/incentives

Export benefits / incentives are accounted on accrual basis in accordance with various government schemes in respect thereof and are shown under “other operating Revenue”.

iv. Other income

Other income is recognized when no significant uncertainty as to its determination or realization exists.

e. Leases

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the lessee is classified as a finance lease.

A. The Company as lessee

i. Operating lease - Rentals payable under operating leases are charged to the statement of profit and loss on a straight line basis over the term of the relevant lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

ii. Finance lease - Finance leases are capitalized at the commencement of lease, at the lower of the fair value of the property or the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in the statement of profit and loss over the period of the lease, using the effective interest rate method.

B. The Company as lessor

iii. Operating lease - Rental income from operating leases is recognized in the statement of profit and loss on a straight line basis over the term of the relevant lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset is diminished.

iv. Finance lease - The Company does not have any finance leases as lessor.

f. Income taxes

Tax expense recognized in statement of profit and loss comprises the sum of deferred tax and current tax not recognized in other comprehensive income (‘oci’) or directly in equity.

current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act. Current income-tax relating to items recognized outside statement of profit and loss is recognized outside statement of profit and loss (either in OCI or in equity).

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the balance sheet date. Deferred tax liabilities are generally recognized in full for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that the underlying tax loss, unused tax credits or deductible temporary difference will be utilized against future taxable income. This is assessed based on the company’s forecast of future operating results, adjusted for significant non-taxable income and expenses and specific limits on the use of any unused tax loss or credit. unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

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

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off such amounts.

g. 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. Recognition, initial measurement and derecognition

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

The transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value through profit and loss are immediately recognized in the statement of profit and loss.

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognized (i.e. removed from the company’s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows under an eligible transaction.

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

ii. Classification

For the purpose of subsequent measurement, financial assets are classified into the following categories upon initial recognition:

- Debt instruments at amortized cost

- Debt instruments at fair value through other comprehensive income (FVTOCI)

- Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

- Equity instruments measured at fair value through other comprehensive income (FVTOCI)

- Equity instruments measured at fair value profit or loss (FVTPL)

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows.

Debt instruments at amortized cost

A ‘debt instrument’ is measured at the amortized cost if both the following conditions are met:

1. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

2. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (“Sppi”) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (the “EIR”) method. The effective interest rate is the rate that exactly discounts future cash receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter period.

Amortized 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 amortization is included in finance income in the statement of profit and loss. The losses arising from impairment are recognized in the statement of profit and loss.

Debt instruments at fair value through other comprehensive income

A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria are met:

1. The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

2. The asset’s contractual cash flows represent SPPI.

The Company does not have any debt instruments classified in FVOCI category.

Debt instruments at fair value through profit or loss

FVTpl is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

The Company does not have any debt instruments classified in FVTPL category.

Equity instruments

All equity investments in scope of ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL with all changes recognized in the statement of profit and loss. For all other equity instruments, the company may make an irrevocable election to present in the oci subsequent changes in the fair value. The company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable. If the Company decides to classify an equity instrument as at FVToci, then all fair value changes on the instrument, excluding dividends and impairment loss, are recognized in oci. There is no recycling of the amounts from the oci to the statement of profit and loss, even on sale of the investment. However, the Company may transfer the cumulative gain or loss within categories of equity.

Currently, all investments in equity shares are classified as FVPL. There are no equity instruments classified as FVOCI.

iii. 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.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the EIR of the instrument. 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.

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 recognizes 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 recognizing impairment loss allowance based on 12-month EcL.

EcL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement of profit and loss.

iv. Classification and subsequent measurement of financial liabilities

All financial liabilities are recognized initially at its fair value, adjusted by directly attributable transaction costs.

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. The Company does not have any financial liabilities classified at fair value through profit or loss.

Financial liabilities measured at amortized cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in the statement of profit and loss when the liabilities are derecognized.

Amortized 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 amortization is included as finance costs in the statement of profit and loss.

h. Equity shares

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

i. Cash and cash equivalents

cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments (original maturity less than 3 months) that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts and cash credits as they are considered an integral part of the company’s cash management.

j. Property plant and equipment (including capital work-in-progress)

property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. cost includes inward freight and expenses incidental to acquisition and installation net of tax credits, up to the point the asset is ready for its intended use. Subsequent expenditure is capitalized to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the entity and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.

Assets acquired but not ready for use or assets under construction are classified under capital work in progress and are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

Gains or losses arising on the disposal of properly plant and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets, and are recognized in the statement of profit and loss within ‘other income’ or ‘other expenses’ respectively.

k. Intangible assets

Intangible assets include computer software which is stated at cost less accumulated amortization.

l. Depreciation

Depreciation is provided on property, plant & equipment on pro rata basis for the period of use, on the written down value method (WDV) as per the useful life of the assets prescribed under Schedule II to the companies Act, 2013, which is in line with the management’s estimate of useful life except for moulds. cost of moulds are capitalized and amortized over the period of 36 months which is the estimated useful life of the mould.

Freehold land is not depreciated. Leasehold land is being amortized over the life of the lease. Depreciation on assets under construction commences only when the assets are ready for their intended use.

Depreciation method, useful life and residual value are reviewed periodically and, when necessary, revised. No further charge is provided in respect of assets that are fully written down but are still in use.

m. Investment property

investment property are those that are held for long-term rental yields or for capital appreciation or both, and that is not occupied by the company. investment property is measured initially at its cost, including related transaction costs. Subsequent expenditure is capitalized to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company in a period exceeding 1 year and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.

investment properties are depreciated using the WDV method over their estimated useful lives, based on the rates prescribed under Schedule II to the companies Act, 2013.

n. Impairment of non-financial assets

The carrying amount of the non-financial assets are reviewed at each balance sheet date if there is any indication of impairment based on internal /external factors. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. The recoverable amount of the assets (or where applicable, that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use. impairment loss is recognized in the statement of profit and loss.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there were no impairment.

o. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

- Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

- Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

p. Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other borrowing costs are expensed in the period in which they are incurred.

q. Employee benefits

- Defined contribution plans

Provident fund benefit is a defined contribution plan under which the Company pays fixed contributions into funds established under the Employees'' provident Funds and Miscellaneous provisions Act, 1952. The company has no legal or constructive obligations to pay further contributions after payment of the fixed contribution.

- Defined benefit plans

Gratuity is a post-employment benefit defined under The Payment of Gratuity Act, 1972 and is in the nature of a defined benefit plan. The defined benefit/obligation is calculated at or near the reporting date by an independent actuary using the projected unit credit method. The liability recognized in the financial statements in respect of gratuity is the present value of the defined benefit obligation at the reporting date, together with adjustments for unrecognized actuarial gains or losses and past service costs.

Past service cost is recognized immediately to the extent that the benefits are already vested and otherwise is amortized on a straight-line basis over the average period until the benefits become vested. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the statement of Oci in the year in which such gains or losses are determined.

- Other long-term employee benefits

Liability in respect of compensated absences is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are charged to statement of profit and loss in the year in which such gains or losses are determined.

- Short-term employee benefits

Expense in respect of other short term benefits is recognized on the basis of the amount paid or payable for the period during which services are rendered by the employee. r. Inventories

Inventories are valued at the lower of cost and net realizable value. Work-in-progress and finished goods include appropriate proportion of overheads. Cost includes excise duty in respect of finished goods, whichever applicable. Costs are assigned to individual items of inventory on the basis of first-in first-out basis.

s. Provisions, contingent liabilities and contingent assets

A provision is recognized when the company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. provisions are not discounted to their present value and are determined based on management estimate of the amount required to settle the obligation at the date of the balance sheet. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company.

Contingent assets are not recognized in the financial statements. However, it is disclosed only when an inflow of economic benefits is probable.

t. Earnings / (loss) per share

Basic earnings / (loss) per share are computed by dividing net profit / (loss) after tax (excluding other comprehensive income) by the weighted average number of equity shares outstanding during the year.

Diluted earnings / (loss) per share adjusts the figures used in the determination of basic earnings / (loss) per share after considering the income tax effect of all finance costs associated with dilutive potential equity shares, and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit / (loss) per share.

u. Operating segments

An operating segment is a component of a company that engages in business activities from which it may earn revenue and incur expenses, including revenue and expenses that relates to transactions with any of the Company’s other components, for which discrete financial information is available, and such information is regularly reviewed by the company’s chief operating Decision Maker (coDM) to make key decision on operations of the segments and assess its performance.

v. Rounding off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule iii, unless otherwise stated.

3. Standards issued but not effective

i. Appendix B to Ind AS 21, Foreign currency transactions and advance consideration:

On 28 March 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The company is in the process of evaluating the impact of adoption of Appendix B to Ind AS21 its financial statements.

ii. Ind AS 115 - “Revenue from Contracts with Customers

ind AS 115 establishes a single model for entities to use in accounting for revenue arising from contracts with customers. ind AS 115 will supersede the current revenue recognition standard, ind AS 18 “Revenue” and ind AS 11 “construction contracts” when it becomes effective. The core principle of ind AS 115 is that, an entity should recognize revenue to depict the transfer of promised goods and services to customers in an account that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. The new standard also requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue. The company is in the process of evaluating the impact of adoption of ind AS 115 on its financial statements.

The fair value of investment property has been determined by an independent valuer, who has adequate professional experience as well as adequate expertise in the location and category of the investment property. The value is determined based on the rate prescribed by government authorities for commercial property. The resultant fair value estimates for investment property is included in level 2.

The company has no restrictions on the reliability of its investment properties and no contractual obligations to either purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

b) Terms and rights attached to equity shares

The company has only one class of equity shares having a par value of ''10 per share. Each holder of equity shares is entitled to one vote per share. The equity shareholders are entitled to dividend to be proposed by the Board of Directors and to be approved by the shareholders in the General Meeting.

in the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

c) Terms and rights attached to preference shares

The company has only one class of preference share. The preference shares have referenced right on payment of dividend and repayment of capital over equity shareholders.

(i) The above term loans are secured by first exclusive charge over entire movable and immovable fixed assets of the company at Dharwad project including equitable mortgage of factory land and building.

The term loans from banks are also secured by collateral securities of:

- First hypothecation charge on entire movable fixed assets of the Company other than vehicles.

- First charge by way of equitable mortgage on factory land and building at Dharwad plant.

- Second charge by way of entire current assets of the company.

Term loans from financial institutions are also secured by collateral securities of:

- First charge by way of equitable mortgage on factory land and building at Thane plant.

(i) The above includes:

a) cash credit from Axis Bank Limited amounting to Rs,990.17 Lakhs (31 March 2017: Rs,814.53 Lakhs; 1 April 2016: Rs,583.75 Lakhs) which is secured by first charge by way of hypothecation of current assets of the company on pari-passu basis with the Zoroastrian co-operative Bank Limited.

The cash credit is also secured by collateral securities of:

1) First hypothecation charge on entire movable property, plant and equipment of the company.

2) First charge by way of equitable mortgage on factory land and building at Dharwad.

b) cash credit from the Zoroastrian co-operative Bank Limited amounting to Rs,1,193.46 Lakhs (31 March 2017: Rs,1,193.29 Lakhs; 1 April 2016: Rs,1,194.41 Lakhs) which is secured by hypothecation of current assets of the company on pari-passu basis with Axis Bank Limited under multiple banking arrangement. The cash credit is also secured by collateral securities of:

1) Factory land and building at Dharwad.

2) other property, plant and equipment.

c) overdraft from the Zoroastrian co-operative Bank Ltd. amounting to Nil (31 March 2017: Nil; 1 April 2016: Rs,517.69 lakh) which is secured against term deposits.

The following tables summaries the components of net benefit expense recognized in the statement of profit and loss and the amount recognized in the balance sheet for the defined benefit plan.

The Company has a defined benefit gratuity plan. Every employee who has completed continuous services of five years or more gets a gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

These assumptions were developed by the management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. other assumptions are based on management’s historical experience.

Sensitivity analysis

The financial results are sensitive to the actuarial assumptions. The changes to the Defined Benefit Obligations for increase in decrease of 1% from assumed salary escalation, withdrawal and discount rates are given below. The following table summarizes the effects of changes in these actuarial assumptions on the defined benefit
liability at 31 March 2018.

The present value of the defined benefit obligation calculated with the same method (projected unit credit) as the defined benefit obligation recognized in the balance sheet. The sensitivity analysis is based on a change in one assumption while not changing all other assumptions. This analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in the assumptions would occur in isolation of one another since some of the assumptions may be co-related.

Compensated absences

The obligation for compensated absences is recognized in the same manner as gratuity and net credit to the Statement of Profit and Loss for the year is ''12.53 Lakhs (previous Year: net charge of ''7.90 Lakhs).

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Mar 31, 2017

1. Corporate information

The company produces static, centrifugal castings and assemblies in heat and corrosion resistant alloys and is a leader in alloy steel castings for decanters and reformer tubes. Manufacturing quality alloy products is its prime focus. The Company has its registered office at Liberty Building , Sir Vithaldas Thakersey Marg, Mumbai and its plant at Thane and also set up Greenfield project at Dharwad which is operational from November, 2013.

2. Significant accounting policies

i) Method of accounting

The financial statements are prepared under the historical cost convention, on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the standards on accounting issued by the institute of chartered Accountants of India and referred to in Section 133 of the Companies Act, 2013. The significant accounting policies are as follows:

ii) Use of estimates

The preparation of financial statements, in conformity with Indian GAAP, requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

iii) Revenue recognition

a) Sale of goods

Sales figures are net of excise duty and other statutory levies. For the purpose of presentation, excise duty and sales tax are reduced from gross sales to arrive at net sales. Sale of scrap is included in Sales. Export benefits in the nature of DEPB Licenses, focus product scheme benefit and duty drawback benefits are accounted on accrual basis and included in Other Income.

b) Sale of services

Revenues from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred.

iv) Fixed assets, depreciation and amortization

a) Tangible assets

All fixed assets are stated at cost of acquisition less accumulated depreciation / amortization. Depreciation on tangible assets is provided on the written down value method at the rates and in the manner prescribed in Schedule ii of the companies Act, 2013, except on moulds. cost of moulds which are not recoverable from customers are capitalized and amortized over a period of thirty six months which is the estimated useful life of the mould. cost of Moulds which are recoverable from customers are charged off in the year in which it is billed to the customers.

b) Intangible assets

intangible assets comprising of computer Software and commercial rights are amortized over a period of five years which is the estimated useful life of these intangible assets.

c) Capital work-in-progress

projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

d) Impairment of assets

Impairment in carrying value of fixed assets, if any, is recognized and provided for.

v) Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of a qualifying long-term asset are capitalized as a part of the cost of such asset till such time the asset is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

vi) Investments

Long-term investments are stated at cost. Diminution other than temporary in the value thereof is recognized and provided. current investments are carried individually, at the lower of cost and fair value. cost of investments include acquisition charges such as brokerage, fees and duties.

vii) Foreign currency transactions

a) Foreign currency transactions are recorded at the exchange rates prevailing at the date of transaction. The difference between the actual rate of settlement and the rate used for booking the transaction is charged or credited to the Statement of Profit and Loss as Exchange fluctuation loss / gain.

b) Foreign currency current assets and current liabilities outstanding at the year-end are translated at the year-end exchange rate and the unrealized gain or loss is recognized in the Statement of Profit and Loss. in case of forward exchange contracts premium paid on forward contracts recognized over the life of the contract.

c) Pursuant to notification issued by the Ministry of Corporate Affairs on 29 December, 2011, exchange difference arising on reporting of Long term foreign currency loan at the rate prevailing at the close of the year, in so far as they relate to acquisition of depreciable capital asset is added to or deducted from the cost of the asset and is depreciated over the balance life of the asset.

viii) Inventories

inventories are valued at the lower of cost and net realizable value, except for stores, spares and loose tools, which are valued at cost. Work-in-progress and finished goods include appropriate proportion of overheads. Cost includes excise duty in respect of finished goods.

ix) Employee benefits

Employee benefits include provident fund, gratuity fund, leave encashment and long service awards.

a) Defined contribution plans

The Company’s contribution to provident fund is considered as defined contribution plans and is charged as an expense as it fall due based on the amount of contribution required to be made.

b) Defined benefit plans

For defined benefit plans in the form of gratuity fund and leave encashment, the cost of providing benefits is determined with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested and otherwise is amortized on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognized in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

x) Taxes on income

Provision for taxation has been made on the basis of the income tax laws and rules applicable for the relevant assessment years. Deferred tax asset or liability is recognized for timing difference between the profit as per financial statements and profit offered for income tax, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax assets on unabsorbed tax losses and tax depreciation are recognized only when there is virtual certainty of their realization.

xi) Provisions and contingencies

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

A disclosure for contingent liability is made when there is a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

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Mar 31, 2016

1. Corporate information

The Company produces static, centrifugal castings and assemblies in heat and corrosion resistant alloys and is a leader in alloy steel castings for decanters and reformer tubes. Manufacturing quality alloy products is its prime focus. The Company has its registered office at Liberty Building , Sir Vithaldas Thakersey Marg, Mumbai and its plant at Thane and also set up Greenfield project at Dharwad which is operational from November, 2013 .

2. Significant accounting policies

i) Method of accounting

The financial statements are prepared under the historical cost convention, on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the standards on accounting issued by the Institute of Chartered Accountants of India and referred to in Section 133 of the Companies Act, 2013. The significant accounting policies are as follows:

ii) Use of estimates

The preparation of financial statements, in conformity with Indian GAAP, requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

iii) Revenue recognition

a) Sale of goods

Sales figures are net of excise duty and other statutory levies. For the purpose of presentation, excise duty and sales tax are reduced from gross sales to arrive at net sales. Sale of scrap is included in Sales. Export benefits in the nature of DEPB Licenses, focus product scheme benefit and duty drawback benefits are accounted on accrual basis and included in Other Income.

b) Sale of services

Revenues from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred.

iv) Fixed assets, depreciation and amortization

a) Tangible assets

All fixed assets are stated at cost of acquisition less accumulated depreciation / amortization. Depreciation on tangible assets is provided on the written down value method at the rates and in the manner prescribed in Schedule II of the Companies Act, 2013, except on moulds. Cost of moulds which are not recoverable from customers are capitalized and amortized over a period of thirty six months which is the estimated useful life of the mould. Cost of Moulds which are recoverable from customers are charged off in the year in which it is billed to the customers.

b) Intangible assets

Intangible assets comprising of Computer Software and Commercial rights are amortized over a period of five years which is the estimated useful life of these intangible assets.

c) Capital work-in-progress

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

d) Impairment of assets

Impairment in carrying value of fixed assets, if any, is recognized and provided for.

v) Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of a qualifying long-term asset are capitalized as a part of the cost of such asset till such time the asset is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

vi) Investment

Long-term investments are stated at cost. Diminution other than temporary in the value thereof is recognized and provided. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

vii) Foreign currency transactions

a) Foreign currency transactions are recorded at the exchange rates prevailing at the date of transaction. The difference between the actual rate of settlement and the rate used for booking the transaction is charged or credited to the Statement of Profit and Loss as Exchange fluctuation loss / gain.

b) Foreign currency current assets and current liabilities outstanding at the year-end are translated at the year-end exchange rate and the unrealized gain or loss is recognized in the Statement of Profit and Loss. In case of forward exchange contracts premium paid on forward contracts recognized over the life of the contract.

c) Pursuant to notification issued by the Ministry of Corporate Affairs on 29 December, 2011, exchange difference arising on reporting of Long term foreign currency loan at the rate prevailing at the close of the year , in so far as they relate to acquisition of depreciable capital asset is added to or deducted from the cost of the asset and is depreciated over the balance life of the asset.

viii) Inventories

Inventories are valued at the lower of cost and net realizable value, except for stores, spares and loose tools, which are valued at cost. Work-in-progress and finished goods include appropriate proportion of overheads. Cost includes excise duty in respect of finished goods.

ix) Employee benefits

Employee benefits include provident fund, gratuity fund, leave encashment and long service awards .

a) Defined contribution plans

The Company’s contribution to provident fund is considered as defined contribution plans and is charged as an expense as it fall due based on the amount of contribution required to be made.

b) Defined benefit plans

For defined benefit plans in the form of gratuity fund and leave encashment, the cost of providing benefits is determined with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested and otherwise is amortized on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognized in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

x) Taxes on income

Provision for taxation has been made on the basis of the income tax laws and rules applicable for the relevant assessment years. Deferred tax asset or liability is recognized for timing difference between the profit as per financial statements and profit offered for income tax, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax assets on unabsorbed tax losses and tax depreciation are recognized only when there is virtual certainty of their realization.

xi) Provisions and contingencies

A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate. A disclosure for contingent liability is made when there is a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

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Mar 31, 2015

I) Method of accounting

The financial statements are prepared under the historical cost convention, on accrual basis of accounting, in accordance with the accounting principles generally accepted in india and comply with the standards on accounting issued by the institute of chartered Accountants of india and referred to in section 133 of the Companies Act, 2013. The significant accounting policies are as follows:

ii) Use of estimates

The preparation of financial statements, in conformity with Indian GAAP, requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the fnancial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

iii) Revenue recognition

a) Sale of goods

Sales figures are net of excise duty and other statutory levies. For the purpose of presentation, excise duty and sales tax are reduced from gross sales to arrive at net sales. sale of scrap is included in Sales. Export benefits in the nature of DEPB Licenses, focus product scheme benefit and duty drawback benefits are accounted on accrual basis and included in Other Income.

b) Sale of services

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred.

iv) Fixed assets and depreciation and amortisation

a) Tangible assets

All fixed assets are stated at cost of acquisition less accumulated depreciation / amortisation. Depreciation on tangible assets is provided on the written down value method at the rates and in the manner prescribed in schedule ii of the companies act, 2013, except on moulds. cost of moulds which are not recoverable from customers are capitailsed and amortised over a period of thirty six months which is the estimated useful life of the mould. cost of Moulds which are recoverable from customers are charged off in the year in which it is billed to the customers.

b) Intangible assets

intangible assets comprising of computer software and commercial rights are amortised over a period of five years which is the estimated useful life of these intangible assets.

c) Capital work-in-progress

projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

d) Impairment of assets

Impairment in carrying value of fixed assets, if any, is recognized and provided for.

v) Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of a qualifying long-term asset are capitalised as a part of the cost of such asset till such time the asset is ready for its intended use. ah other borrowing costs are recognised as an expense in the period in which they are incurred.

vi) Investment

Long-term investments are stated at cost. Diminution other than temporary in the value thereof is recognized and provided. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

vii) Foreign currency transactions

a) Foreign currency transactions are recorded at the exchange rates prevailing at the date of transaction. The difference between the actual rate of settlement and the rate used for booking the transaction is charged or credited to the Statement of Profit and Loss as Exchange fluctuation loss / gain.

b) Foreign currency current assets and current liabilities outstanding at the year-end are translated at the year-end exchange rate and the unrealized gain or loss is recognized in the Statement of Profit and Loss. in case of forward exchange contracts premium paid on forward contracts recognised over the life of the contract.

c) Pursuant to notification issued by the Ministry of Corporate Affairs on 29 December, 2011, exchange difference arising on reporting of long term foreign currency loan at the rate prevailing at the close of the year, in so far as they relate to acquisition of depreciable capital asset is added to or deducted from the cost of the asset and is depreciated over the balance life of the asset.

viii) Inventories

Inventories are valued at the lower of cost and net realizable value, except for stores, spares and loose tools, which are valued at cost.Work-in-progress and finished goods include appropriate proportion of overheads. Cost includes excise duty in respect of finished goods.

ix) Employee benefits

Employee benefits include provident fund, gratuity fund, leave encashment and long service awards .

a) Defined contribution plans

The Company's contribution to provident fund is considered as defined contribution plans and is charged as an expense as it fall due based on the amount of contribution required to be made.

b) Defined benefit plans

For defined benefit plans in the form of gratuity fund and leave encashment, the cost of providing benefits is determined with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

x) Taxes on income

provision for taxation has been made on the basis of the income tax laws and rules applicable for the relevant assessment years. Deferred tax asset or liability is recognized for timing difference between the profit as per financial statements and profit offered for income tax, based on the tax rates that have been enacted or substantively enacted at the Balance sheet date.

Deferred tax assets on unabsorbed tax losses and tax depreciation are recognised only when there is virtual certainty of their realisation.

xi) Provisions and contingencies

A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate. a disclosure for contingent liability is made when there is a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

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Mar 31, 2014

I) Method Of Accounting

The 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 notified under the companies (Accounting standards) Rules, 2006 (asamended) and there levant provisions of the companies Act, 1956. The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the companies Act, 1956. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

ii) Use of estimates

The preparation of financial statements, in conformity with indian GAAP, requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

iii) Revenue Recognition

a ) sale of goods

sales figures are net of excise duty and other statutory levies. For the purpose of presentation, excise duty and sales tax are reduced from gross sales to arrive at net sales. sale of scrap is included in sales. Export benefits in the nature of DEPB Licenses, focus product scheme benefit and duty drawback benefits are accounted on accrual basis and included in other income..

b ) sale of services

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred.

iv) Fixed Assets & Depreciation / Amortisation

a ) Tangible assets

All fixed assets are stated at cost of acquisition less accumulated depreciation / amortisation. Depreciation on tangible assets is provided on the written down value method at the rates and in the manner prescribed in schedule XIV of the companies Act, 1956, except on moulds. cost of moulds which are not recoverable from customers are capitailsed and amortised over a period of thirty six months which is the estimated useful life of the mould. cost of Moulds which are recoverable from customers are charged off in the year in which it is billed to the customers.

b ) Intangible Assets

intangible assets comprising of computer software and commercial rights are amortised over a period of five years which is the estimated useful life of these intangible assets.

c ) capital work-in-progress

projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

d ) impairment of assets

impairment in carrying value of fixed assets, if any, is recognized and provided for.

v) Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of a qualifying long-term asset are capitalised as a part of the cost of such asset till such time the asset is ready for its intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred.

vi) Investments

Long-term investments are stated at cost. Diminution other than temparary in the value thereof is recognized and provided. current investments are carried individually, at the lower of cost and fair value. cost of investments include acquisition charges such as brokerage, fees and duties.

vii) Foreign Currency Transactions

a ) Foreign currency transactions are recorded at the exchange rates prevailing at the date of transaction. The difference between the actual rate of settlement and the rate used for booking the transaction is charged or credited to the statement of profit and Loss as Exchange fluctuation loss / gain. b ) Foreign currency current assets and current liabilities outstanding at the year-end are translated at the year- end exchange rate and the unrealized gain or loss is recognized in the statement of profit and Loss. in case of forward exchange contracts premium paid on forward contracts recognised over the life of the contract. c ) pursuant to notification issued by the Ministry of corporate Affairs on 29 December, 2011, exchange difference arising on reporting of Long term foreign currency loan at the rate prevailing at the close of the year, in so far as they relate to acquisition of depreciable capital asset is added to or deducted from the cost of the asset and is depreciated over the balance life of the asset.

viii) Inventories

inventories are valued at the lower of cost and net realizable value, except for stores, spares and loose tools, which are valued at cost.work-in-progress and finished goods include appropriate proportion of overheads. cost includes excise duty in respect of finished goods.

ix) Employee Benefits

Employee benefits include provident fund, gratuity fund, leave encashment and long service awards.

a ) Defined contribution plans

The company''s contribution to provident fund is considered as defined contribution plans and is charged as an expense as it fall due based on the amount of contribution required to be made.

b ) Defined benefit plans

For defined benefit plans in the form of gratuity fund and leave encashment, the cost of providing benefits is determined with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of profit and Loss in the period in which they occur. past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

x) Taxes on income

provision for taxation has been made on the basis ofthe income tax laws and rules applicable for the relevant assessment years. Deferred tax asset or liability is recognized for timing difference between the profit as per financial statements and profit offered for income tax, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is a reasonable certainty that sufficient future taxable income will be available against which they can be realized.

xi) Provisions and contingencies

A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate. A disclosure for contingent liability is made when there is a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

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Mar 31, 2013

I) Method Of Accounting

The 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 notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

ii) Revenue Recognition

a) Sale of goods

Sales figures are net of excise duty and other statutory levies. For the purpose of presentation, excise duty and sales tax are reduced from gross sales figure to arrive at net sales figure. Sale of scrap is included in Sales. Export benefits in the nature of DEPB Licenses and duty drawback benefits are accounted on accrual basis and included in Other Income.

b) Sale of services

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred.

iii) Fixed Assets & Depreciation / Amortisation

a) Tangible assets

All fixed assets are stated at cost of acquisition less accumulated depreciation / amortisation. Depreciation on tangible assets is provided on the written down value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, except on moulds. Cost of moulds which are not recoverable from customers are capitalised and amortised over a period of thirty six months which is the estimated useful life of the mould. Cost of Moulds which are recoverable from customers are charged off in the year in which it is billed to the customers.

b ) Intangible Assets

Intangible assets comprising of Computer Software and Commercial rights are amortised over a period of five years which is the estimated useful life of these intangible assets.

c ) Capital work-in-progress

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

d ) Impairment of assets

Impairment in carrying value of fixed assets, if any, is recognized and provided for.

iv) Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of a qualifying long-term asset are capitalised as a part of the cost of such asset till such time the asset is ready for its intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred.

v) Investments

Long-term investments are stated at cost. Diminution other than temparary in the value thereof is recognized and provided. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

vi) Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates prevailing at the date of transaction. The difference between the actual rate of settlement and the rate used for booking the transaction is charged or credited to the statement of Profit and Loss as Exchange fluctuation loss / gain. Foreign currency current assets and current liabilities outstanding at the year-end, not covered under forward contracts are translated at the year-end exchange rate and the unrealized gain or loss is recognized in the statement of Profit and Loss.

vii) Inventories

Inventories are valued at the lower of cost and net realizable value, except for stores, spares and loose tools, which are valued at cost. Work-in-progress and finished goods include appropriate proportion of overheads. Cost includes excise duty in respect of finished goods.

viii)Employee Benefits

Employee benefits include provident fund, gratuity fund, leave encashment and long service awards.

a ) Defined Contribution Plans

The Company''s contribution to provident fund is considered as defined contribution plans and is charged as an expense as it falls due based on the amount of contribution required to be made.

b ) Defined benefit plans

For defined benefit plans in the form of gratuity fund and leave encashment, the cost of providing benefits is determined with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

ix) Taxes on income

Provision for taxation has been made on the basis of the income tax laws and rules applicable for the relevant assessment years. Deferred tax asset or liability is recognized for timing difference between the profit as per financial statements and profit offered for income tax, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is a reasonable certainty that sufficient future taxable income will be available, against which they can be realized.

x) Provisions and contingencies

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

A disclosure for contingent liability is made when there is a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

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Mar 31, 2012

I) Method Of Accounting

The 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 notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

ii) Revenue Recognition

a ) Sale of goods

Sales figures are net sales figures and exclude excise duty and other statutory levies. For the purpose of presentation, excise duty and sales tax are reduced from gross sales figure to arrive at net sales figure. Sale of scrap is included in Sales. Export benefits in the nature of DEPB Licenses and duty drawback benefits are accounted on accrual basis and included in Other Income.

b ) Sale of services

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred.

iii) Fixed Assets & Depreciation I Amortisation

a ) Tangible assets

All fixed assets are stated at cost of acquisition less accumulated depreciation / amortisation. Depreciation on tangible assets is provided on the written down value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, except on moulds. Cost of moulds which are not recoverable from customers are capitalised and amortised over a period of thirty six months which is the estimated useful life of the mould. Cost of Moulds which are recoverable from customers are charged off in the year in which it is billed to the customers.

b) Intangible Assets

Intangible assets comprising of Computer Software and Commercial rights are amortised over a period of five years which is the estimated useful life of these intangible assets.

c) Capital work-in-progress

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

d ) Impairment of assets

Impairment in carrying value of fixed assets, if any, is recognized and provided for.

iv) Investments

Long-term investments are stated at cost. Only permanent diminution in the value thereof is recognized. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

v) Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates prevailing at the date of transaction.

The difference between the actual rate of settlement and the rate used for booking the transaction is charged or credited to the Profit and Loss Account as Exchange fluctuation loss / gain. Foreign currency current assets and current liabilities outstanding at the year-end, not covered under forward contracts are ' translated at the year-end exchange rate and the unrealized gain or loss is recognized in the Profit and Loss Account.

vi) Inventories

Inventories are valued at the lower of cost and net realizable value, except for stores, spares and loose tools, which are valued at cost. Work-in-progress and finished goods include appropriate proportion of overheads. Cost includes excise duty in respect of finished goods. ;

vii) Employee Benefits

Employee benefits include provident fund, gratuity fund, leave encashment and long service awards.

a ) Defined Contribution Plans

The Company's contribution to provident fund is considered as defined contribution plans and is charged as an expense as it falls due based on the amount of contribution required to be made.

b ) Defined benefit plans

For defined benefit plans in the form of gratuity fund and leave encashment, the cost of providing benefits is determined with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur.

Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

viii) Taxes on income

Provision for taxation has been made on the basis of the income tax laws and rules applicable for the relevant assessment years. Deferred tax asset or liability is recognized for timing difference between the profit as per financial statements and profit offered for income tax, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is a reasonable certainty that sufficient future taxable income will be available, against which they can be realized.

ix) Provisions and contingencies

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

A disclosure for contingent liability is made when there is a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

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Mar 31, 2011

I) Method of accounting

The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the companies act, 1956.

ii) REVENUES

sales figures are net sales figures and exclude excise duty and other statutory levies. For the purpose of presentation, excise duty and sales tax are reduced from gross sales figure to arrive at net sales figure. sale of scrap is included in sales. export benefits in the nature of DEPB licenses are accounted on accrual basis and included in other income.

iii) FIXED assets & Depreciation/ amortisation

a ) All fixed assets are stated at cost of acquisition less accumulated depreciation / amortisation.

Depreciation on tangible assets is provided on the written down value method at the rates and in the manner prescribed in schedule Xiv of the companies act, 1956, except on moulds. cost of moulds which are not recoverable from customers are capitailsed and amortised over a period of thirty six months which is the estimated useful life of the mould. cost of Moulds which are recoverable from customers are charged off in the year in which it is billed to the customers.

b ) Intangible assets comprising of computer software and commercial rights are amortised over a period of five years which is the estimated useful life of these intangible assets.

c ) Impairment in carrying value of fixed assets, if any, is recognized and provided for.

iv) InvestMeNts long-term investments are stated at cost. only permanent diminution in the value thereof is recognized.

v) FOREIGN CURENCY TRANSACTIONS

Foreign currency transactions are recorded at the exchange rates prevailing at the date of transaction. the difference between the actual rate of settlement and the rate used for booking the transaction is charged or credited to the profit and loss account as exchange fluctuation loss / gain. Foreign currency current assets and current liabilities outstanding at the year-end, not covered under forward contracts are translated at the year-end exchange rate and the unrealized gain or loss is recognized in the profit and loss account.

vi) INVENTORIES

Inventories are valued at the lower of cost and net realizable value, except for stores, spares and loose tools, which are valued at cost. cost includes excise duty in respect of finished goods.

vii)EXCISE DUTY

Excise duty is provided on closing stock of finished goods lying un-cleared at the factory and also included in the valuation of stock of finished goods.

viii) RETIREMENT BENEFITS

contributions to defined contribution schemes such as provident Fund etc. are charged to profit & loss account as incurred. the company also provides for post retirement and other benefits in the form of gratuity and leave encashment which are provided based on actuarial valuation by independent actuaries.

ix) TAXATION

Provision for taxation has been made on the basis of the income tax laws and rules applicable for the relevant assessment years.

Deferred tax asset or liability is recognized for timing difference between the profit as per financial statements and profit offered for income tax, based on the tax rates that have been enacted or substantively enacted at the Balance sheet date. Deferred tax assets are recognized only if there is a reasonable certainty that sufficient future taxable income will be available, against which they can be realized.

x)PROVISIONS AND CONTINGENCIES

A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. these are reviewed at each balance sheet date and adjusted to reflect the current best estimate. a disclosure for contingent liability is made when there is a present obligation that may, but probably will not require an outflow of resources. when there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

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Mar 31, 2010

I) METHOD OF ACCOUNTING

The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956.

ii) REVENUES

Sales figures are net sales figures and exclude excise duty and other statutory levies. For the purpose of presentation, excise duty and sales tax are reduced from gross sales figure to arrive at net sales figure. Sale of scrap is included in Sales. Export benefits in the nature of DEPB Licenses are accounted on accrual basis and included in Other Income.

iii) FIXED ASSETS & DEPRECIATION/AMORTISATION

a ) All fixed assets are stated at cost of acquisition less accumulated depreciation/ amortisation. Depreciation on tangible assets is provided on the written down value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, except on moulds.Cost of moulds which are not recoverable from customers are capitailsed and amortised over a period of thirty six months which is the estimated useful life of the mould. Cost of Moulds which are recoverable from customers are charged off in the year in which it is billed to the customers.

b ) Intangible assets comprising of Computer Software are amortised over a period of five years which is the estimated useful life of software. Impairment in carrying value of fixed assets, if any, is recognized and provided for.

iv) INVESTMENTS

Long-term investments are stated at cost. Only permanent diminution in the value thereof is recognized.

v) FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the exchange rates prevailing at the date of transaction. The difference between the actual rate of settlement and the rate used for booking the transaction is charged or credited to the Profit and Loss Account as Exchange fluctuation loss / gain. Foreign currency current assets and current liabilities outstanding at the year-end, not covered under forward contracts are translated at the year-end exchange rate and the unrealized gain or loss is recognized in the Profit and Loss Account.

vi) INVENTORIES

Inventories are valued at the lower of cost and net realizable value, except for stores, spares and loose tools, which are valued at cost. Cost includes excise duty in respect of finished goods.

vii) EXCISE DUTY

Excise duty is provided on closing stock of finished goods lying un-cleared at the factory and also included in the valuation of stock of finished goods.

viii) RETIREMENT BENEFITS

Contributions to defined Contribution schemes such as Provident Fund etc. are charged to Profit & Loss Account as incurred. The Company also provides for post retirement and other benefits in the form of gratuity and leave encashment which are provided based on actuarial valuation by independent actuaries.

ix) PROVISION FOR TAXATION

Provision for taxation has been made on the basis of the income tax laws and rules applicable for the relevant assessment years.

Deferred tax asset or liability is recognized for timing difference between the profit as per financial statements and profit offered for income tax, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is a reasonable certainty that sufficient future taxable income will be available, against which they can be realized.

x) DEFERRED REVENUE EXPENDITURE

Voluntary retirement scheme expenses on employees incurred by the Company is deferred and written off over a period of 5 years (60 months) starting from the month in which the expenses are actually incurred as the management expects the benefits of the scheme to last over this period.

xi) PROVISIONS & CONTINGENCIES

A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate. A disclosure for contingent liability is made when there is a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.