Accounting Policies of United Van Der Horst Ltd. Company

Mar 31, 2024

B) Significant Accounting Policies

1. Statement of Compliance:

The financial statements are prepared under the historical cost convention on accrual basis of accounting and in accordance with Indian Accounting Standards (Ind AS) notified under the section 133 of the Companies Act, 2013 (the Act), the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

These financial statement has been approved for issue by the Board of Directors at their meeting held on May 24, 2024.

2. Basis of preparation of financial statements:

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value:

¦ Certain financial assets and liabilities and contingent consideration that is measured at fair value;

¦ Defined benefit plans - plan assets measured at fair value

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between the market participants at the measurement date.

The statement of financial position (including statement of changes in equity) and the statement of profit and loss are prepared and presented in the format prescribed in Division II of Schedule III to the Companies Act, 2013. The cash flow statement has been prepared under indirect method and presented as per the requirements of Ind AS 7 “Cash Flow Statements”. The disclosure requirements with respect to items in the balance sheet and statement of profit and loss, as prescribed in Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards.

3. Functional and Presentation Currency:

These financial statements are presented in Indian Rupees (INR), which is also the Company’s functional currency. All amounts have been rounded off to the nearest lakhs unless otherwise indicated. Per share data are presented in Indian Rupees.

4. Use of Estimates & Judgements:

The preparation of financial statements in conformity with recognition and measurement principles of Ind AS requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Although these estimates are based upon Management’s best knowledge of current events and actions, actual results could differ from these estimates. Differences between the actual results and estimates are recognised in the year is which the results are known/ materialised. Any revision to the estimates is recognized and disclosed prospectively in the current and future periods.

Estimates & underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.

5. Fair Value Measurement:

A number of the Company’s accounting policies and disclosures require measurement of fair values, for both financial and non-financial assets and liabilities.

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 of 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 assets or liability

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.

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 market 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.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the assets and liability and the level of the fair value hierarchy as explained above.

This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

¦ Disclosures for valuation methods, significant estimates and assumptions

¦ Financial Instruments (including those carried at amortised cost)

6. Revenue recognition:

¦ IND AS 115 Revenue from contracts with customers outlines a single comprehensive model of accounting for revenue from contracts with customers and supersedes current revenue recognition guidance found within IND AS.

¦ Revenue from sale of goods is recognised net of rebates and discounts on transfer of significant risks and rewards of ownership to buyer. Sale of goods is recognised gross of taxes.

¦ Revenue on service contracts is recognized on the basis of completed service contract method

¦ Export benefits available are accounted for in the year of export, to the extent the realisation of the same is not considered uncertain by the Company.

¦ Interest is accounted on time proportion basis except in the case of tax assessment dues/refund, which are accounted on cash basis.

¦ Dividend income is accounted as and when the right to receive is established.

7. Leases:

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss, unless they are directly attributable to the qualifying assets, in which case they are capitalised in accordance with the Company’s policy on the borrowing costs.

Contingent rentals, if any, are recognised as expenses in the periods in which they are incurred.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term.

8. Income Taxes:

(i) Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Taxable profit differs from ‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in the other years and the items that are never taxable or deductible. The Company’s current tax is calculated using tax rates which have been enacted or substantively enacted by the end of reporting period. Management periodically evaluates positions taken in tax return with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

(ii) Deferred tax is recognised on temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax base used in computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets (including unused tax credits and unused tax losses) are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

The carrying amount of deferred tax asset is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realised based on tax rates (and tax laws) that have been enacted or substantially enacted by the end of the reporting period.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in OCI or in equity). Deferred tax items are recognised in correlation to the underlying transactions either in OCI or directly in equity.

9. Property, Plant and Equipment:

Recognition and Measurement:

Property, plant & equipment acquired by the Company are reported at acquisition cost, with deductions for accumulated depreciation and impairment losses, if any. The acquisition cost includes purchase price (excluding refundable taxes) and expenses, such as delivery and handling costs, installation, legal and consultancy services, directly attributable to bringing the asset to the site and in working condition for its intended use.

Subsequent Expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

Depreciation:

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual value over their estimated useful lives using the straight line method and is generally recognised in the statement of profit and loss.

The Company has charged Depreciation based on the basis of Straight Line Method and useful life of assets prescribed in Schedule II of the Companies Act, 2013, except for individual assets costing up to Rupees five thousands are depreciated in full in the period of purchase.

The residual values, useful lives and method of depreciation of PPE is reviewed at each financial year end and adjusted prospectively, if appropriate. Any gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in profit and loss account.

Capital work in progress is stated at cost.

10. Intangible Assets:

Intangible assets acquired separately are measured on initial recognition at cost. The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortised over useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

11. Employee Benefits:

Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation other than the contribution payable to the provident fund. Contribution as required by the Statute paid to the Government Provident Fund as also contribution paid to other recognized Provident Fund Trust is debited to the Statement of Profit and Loss

Gratuity

Gratuity liability is a defined benefit obligation for employees. The Company’s net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.

Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss. Re-measurement which comprise of actuarial gain and losses, the return of plan assets (excluding interest) and the effect of asset ceiling (if any, excluding interest) are recognised in OCI.

12. Earnings per share:

Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company’s earnings per share is the net profit for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

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

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Mar 31, 2023

B) Significant Accounting Policies

1. Statement of Compliance:

The financial statements are prepared under the historical cost convention on accrual basis of accounting and in accordance with Indian Accounting Standards (Ind AS) notified under the section 133 of the Companies Act, 2013 (the Act), the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

These financial statement has been approved for issue by the Board of Directors at their meeting held on May 10, 2023.

2. Basis of preparation of financial statements:

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value:

¦ Certain financial assets and liabilities and contingent consideration that is measured at fair value;

¦ Defined benefit plans - plan assets measured at fair value

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between the market participants at the measurement date.

The statement of financial position (including statement of changes in equity) and the statement of profit and loss are prepared and presented in the format prescribed in Division II of Schedule III to the Companies Act, 2013. The cash flow statement has been prepared under indirect method and presented as per the requirements of Ind AS 7 “Cash Flow Statements”. The disclosure requirements with respect to items in the balance sheet and statement of profit and loss, as prescribed in Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards.

3. Functional and Presentation Currency:

These financial statements are presented in Indian Rupees (INR), which is also the Company’s functional currency. All amounts have been rounded off to the nearest lakhs unless otherwise indicated. Per share data are presented in Indian Rupees.

4. Use of Estimates & Judgements:

The preparation of financial statements in conformity with recognition and measurement principles of Ind AS requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Although these estimates are based upon Management’s best knowledge of current events and actions, actual results could differ from these estimates. Differences between the actual results and estimates are recognised in the year is which the results are known/ materialised. Any revision to the estimates is recognized and disclosed prospectively in the current and future periods.

Estimates & underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.

5. Fair Value Measurement:

A number of the Company’s accounting policies and disclosures require measurement of fair values, for both financial and non-financial assets and liabilities.

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 of 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 assets or liability

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.

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 market 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.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the assets and liability and the level of the fair value hierarchy as explained above.

This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

¦ Disclosures for valuation methods, significant estimates and assumptions

¦ Financial Instruments (including those carried at amortised cost)

6. Revenue recognition:

¦ IND AS 115 Revenue from contracts with customers outlines a single comprehensive model of accounting for revenue from contracts with customers and supersedes current revenue recognition guidance found within IND AS.

¦ Revenue from sale of goods is recognised net of rebates and discounts on transfer of significant risks and rewards of ownership to buyer. Sale of goods is recognised gross of taxes.

¦ Revenue on service contracts is recognized on the basis of completed service contract method

¦ Export benefits available are accounted for in the year of export, to the extent the realisation of the same is not considered uncertain by the Company.

¦ Interest is accounted on time proportion basis except in the case of tax assessment dues/refund, which are accounted on cash basis.

¦ Dividend income is accounted as and when the right to receive is established.

7. Leases:

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss, unless they are directly attributable to the qualifying assets, in which case they are capitalised in accordance with the Company’s policy on the borrowing costs.

Contingent rentals, if any, are recognised as expenses in the periods in which they are incurred.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term.

8. Income Taxes:

(i) Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Taxable profit differs from ‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in the other years and the items that are never taxable or deductible. The Company’s current tax is calculated using tax rates which have been enacted or substantively enacted by the end of reporting period. Management periodically evaluates positions taken in tax return with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

(ii) Deferred tax is recognised on temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax base used in computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets (including unused tax credits and unused tax losses) are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

The carrying amount of deferred tax asset is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realised based on tax rates (and tax laws) that have been enacted or substantially enacted by the end of the reporting period.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in OCI or in equity). Deferred tax items are recognised in correlation to the underlying transactions either in OCI or directly in equity.

9. Property, Plant and Equipment:

Recognition and Measurement:

Property, plant & equipment acquired by the Company are reported at acquisition cost, with deductions for accumulated depreciation and impairment losses, if any. The acquisition cost includes purchase price (excluding refundable taxes) and expenses, such as delivery and handling costs, installation, legal and consultancy services, directly attributable to bringing the asset to the site and in working condition for its intended use.

Subsequent Expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

Depreciation:

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual value over their estimated useful lives using the straight line method and is generally recognised in the statement of profit and loss.

The Company has charged Depreciation based on the basis of Straight Line Method and useful life of assets prescribed in Schedule II of the Companies Act, 2013, except for individual assets costing up to Rupees five thousands are depreciated in full in the period of purchase.

The residual values, useful lives and method of depreciation of PPE is reviewed at each financial year end and adjusted prospectively, if appropriate. Any gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in profit and loss account.

Capital work in progress is stated at cost.

10. Intangible Assets:

Intangible assets acquired separately are measured on initial recognition at cost. The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortised over useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

11. Employee Benefits:

Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation other than the contribution payable to the provident fund. Contribution as required by the Statute paid to the Government Provident Fund as also contribution paid to other recognized Provident Fund Trust is debited to the Statement of Profit and Loss.

Gratuity

Gratuity liability is a defined benefit obligation for employees. The Company’s net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.

Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss. Re-measurement which comprise of actuarial gain and losses, the return of plan assets (excluding interest) and the effect of asset ceiling (if any, excluding interest) are recognised in OCI.

12. Earnings per share:

Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company’s earnings per share is the net profit for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

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

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Mar 31, 2014

1. Basis of preparation of Financial Statements:

The financial statements are prepared under the historical cost convention on accrual basis of accounting and in accordance with the generally accepted accounting principles in India. The financial statements comply in all material aspects with the accounting standards notified under the Companies Act, 1956 ("the Act") (which are deemed to be applicable by virtue of section 133 of the Companies Act, 2013 read with the General Circular 15/2013 dated 13th September 2013 issued by the Ministry of Corporate Affairs) and the relevant provisions of the Companies Act, 1956.

2. Use of estimates:

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the Contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Example of such estimates include provisions for doubtful debts, employee retirement benefit plans, provision for income taxes, and the useful life of fixed assets and intangible assets.

3. Revenue recognition:

Revenue is recognized based on the nature of activity when consideration can be reasonably measured and there exist reasonable certainty of its recovery.

i) All revenues are generally recognized on accrual basis

ii) Jobs completed, inspected by clients and invoiced are included in sales, pending delivery

iii) Income is stated net of duties and taxes

Other operational revenue represents income earned from activities incidental to the business and is recognized when the right to receive the income is established as per the terms of the contract.

4. Fixed Assets:

Fixed assets are stated at historical cost. Cost includes related taxes, duties (net of CENVAT/VAT credit), freight insurance, impairment etc. attributable to bringing the assets to working condition for intended use, pre-operational expenses and technical fees paid for transfer of technology, relating to assets less accumulated depreciation. All amounts incurred for fixed assets pending completion/installation /ready for use are taken as Capital Work-in-Progress.

5. Depreciation/Amortisation:

The cost of leasehold land is amortized over the period of the lease. The Company provides depreciation on all the fixed assets other than leasehold land, tooling and fabricated assets on Straight line basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

6. Intangible assets:

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprises and the cost of asset can be measured reliably.

Leasehold land has been amortized over the period of lease.

Administrative and other general overhead expenses that are specifically attributed to the acquisition of intangible asset are allocated and capitalized as a part of the cost of intangible assets.

7. Investments:

Investments are classified into long-term investments and current investments based on the management''s intention at the time of purchase. Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investment are classified as long term investments: Long-term investments are carried at cost and provision is made to recognize any decline, other than temporary, in the value of such investments, determined separately for each investment. Current investments are carried at the lower of the cost and fair value and provision is made to recognize any decline in the carrying value. The comparison of cost and fair value is done separately in respect of each category of investments.

8. Impairment of Assets:

At each balance sheet date, the carrying amounts of fixed assets are reviewed by the management to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and risks specific to the asset.

9. Inventories:

Raw Material, Packing Material, Stores & Spares and Finished Goods are valued at cost or net realizable value, whichever is lower. Cost of stock is determined on FIFO basis. Work in progress is valued at cost or net realizable value, whichever is lower based on estimate of the stage of each job [by technical personnel] as a percentage of net invoice as reduced by estimated profit margin.

10. Cash and cash equivalents:

Cash and cash equivalents for the purpose of cash flow statement on balance sheet date comprise cash at bank and on hand and short term investments with an original maturity of three months or less.

11. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale or those assets that are not ready for their intended use or sale when acquired. All other borrowing costs are charged to revenue in the period in which they are incurred.

12. Employee Benefits:

Contributions to Provident Fund & ESIC, under a defined contribution scheme are charged to the Statement of Profit and Loss. A provision for gratuity is made as per the Payment of Gratuity Act, 1972. Actuarial gains and losses are recognized immediately in the Statement of Profit and Loss as income or Expenses. As per the Accounting Standard 15 (Revised) issued by The Institute of Chartered Accountants of India, the liability in respect of earned Leave Encashment is provided on accrual basis.

13. Foreign Currency Transaction:

i) Foreign Currency Transactions are accounted at the rate of exchange prevailing on the date of the Transactions.

ii) Monetary items, denominated in foreign currency are translated at the exchange rate prevailing on the last date of the accounting year.

iii) Gains / or losses arising out of translation / conversion is taken credit for or charged to Statement of Profit & Loss.

14. Taxation:

Income Tax expenses comprise current tax, deferred tax charge or credit. Provision for current tax is made with reference to taxable income computed for the accounting year, for which the financial statements are prepared by applying the tax rates as applicable. The deferred tax charge or credit is recognized on timing differences between incomes accounted in the financial statements and the taxable income for the year and quantified using prevailing enacted or substantively enacted tax rates. Deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each Balance Sheet date based on development during the year and available case laws to reassess realization / liabilities.

15. Earning per share:

Basic earning per share is computed by dividing net profit/loss after tax for the period by the weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by dividing net profit/loss after tax for the period by the weighted average number of equity shares outstanding and dilutive potential equity shares.

16. Provisions, Contingent Liabilities & Contingent Assets:

a. Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation if:

i) The Company has a present obligations as result of past event

ii) A probable outflow of resource is expected to settle the obligation and

iii) The amount of the obligation can be reliably estimated

Reimbursement expected in respect in respect of expenditure required to settle a provisions is recognized only when it is virtually certain that the reimbursement will be received

b. Contingent liability is disclosed in case of:

i) A present obligation arising from past events, when it is not probable that an outflow of resource will be required to settle the obligation

ii) A present obligation arising from the past events, when no reliable estimate is possible and

iii) A possible obligation arising from the past events where the probability of outflow of resource is not remote

c. Contingent assets are neither recognized, nor disclosed.

d. Provision, Contingent liabilities and Contingent assets are reviewed at each balance sheet date.

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Mar 31, 2012

1. Method of accounting:

The financial statements are prepared under the historical cost convention on accrual basis of accounting and in accordance with the generally accepted accounting principles in India. The financial statements comply in all material aspects with the accounting standards notified under the Companies (Accounting Standards) amendment Rules, 2011 and the relevant provisions of the Companies Act, 1956.

2. Use of estimates :

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the Contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Example of such estimates include provisions for doubtful debts, employee retirement benefit plans, provision for income taxes, and the useful life of fixed assets and intangible assets.

3. Fixed Assets :

Fixed assets are stated at historical cost. Cost includes related taxes, duties (net of CENVAT/ VAT credit), freight insurance, impairment etc. attributable to bringing the assets to working condition for intended use, pre-operational expenses and technical fees paid for transfer of technology, relating to assets less accumulated depreciation. All amounts incurred for fixed assets pending completion/installation /ready for use are taken as Capital Work-in-Progress.

4. Depreciation :

The cost of leasehold land is amortized over the period of the lease. The Company provides depreciation on all the fixed assets other than leasehold land, tooling and fabricated assets on Straight line basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

5. Impairment of Assets :

At each balance sheet date, the carrying amounts of fixed assets are reviewed by the management to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset's net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and risks specific to the asset.

6. Inventories :

i) Raw material, Packing Material. Stores & Spares and work in Process are valued at cost or Net realizable value whichever is lower. However, these items are considered to be realizable at the cost if the Finished Products in which they will be used are expected to be sold at or above cost.

ii) Cost is determined on FIFO Basis. Stock is determined on FIFO Basis.

iii) Finished Goods are valued at cost or net realizable value whichever is lower.

iv) Work in progress is valued by estimation of the stage of each job as a percentage of net invoices as reduced by estimated profit margin.

7. Employee Benefits :

Contributions to Provident Fund & ESIC, under a defined contribution scheme are charged to the Profit and Loss Account. A provision for gratuity is made as per the Payment of Gratuity Act, 1972. Actuarial gains and losses are recognized immediately in the statement of Profit and Loss Account as income or Expenses. As per the Accounting Standard 15 (Revised) issued by The Institute of Chartered Accountants of India, the liability in respect of earned Leave Encashment is provided on accrual basis.

8. Revenue recognition:

Revenue is recognized based on the nature of activity when consideration can be reasonably measured and there exist reasonable certainty of its recovery.

i) All revenues are generally recognized on accrual basis

ii) Jobs completed, inspected by clients and invoiced are included in sales, pending delivery

iii) Income is stated net of duties and taxes

Other operational revenue represents income earned from activities incidental to the business and is recognized when the right to receive the income is established as per the terms of the contract.

9. Foreign Currency Transaction :

i) Foreign Currency Transactions are accounted at the rate of exchange prevailing on the date of the Transactions.

ii) Monetary items, denominated in foreign currency are translated at the exchange rate prevailing on the last date of the accounting year.

iii) Gains / or losses arising out of translation / conversion is taken credit for or charged to Profit & Loss account.

10. Taxation :

Income Tax expenses comprise current tax, deferred tax charge or credit. Provision for current tax is made with reference to taxable income computed for the accounting year, for which the financial statements are prepared by applying the tax rates as applicable. The deferred tax charge or credit is recognized on timing differences between incomes accounted in the financial statements and the taxable income for the year and quantified using prevailing enacted or substantively enacted tax rates. Deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each Balance Sheet date based on development during the year and available case laws to reassess realization / liabilities.

11. Earning per share :

Basic earning per share is computed by dividing net profit/loss after tax for the period by the weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by dividing net profit/loss after tax for the period by the weighted average number of equity shares outstanding and dilutive potential equity shares.

12. Intangible assets :

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprises and the cost of asset can be measured reliably.

Leasehold land has been amortized over the period of lease.

Administrative and other general overhead expenses that are specifically attributed to the acquisition of intangible asset are allocated and capitalized as a part of the cost of intangible assets.

13. Net Profit/Loss for the period, prior period items and change in accounting policies :

During the year under review, there is no material changes in the accounting policies and the same are consistently followed by the Company.

Income in Profit and Loss account contains interest, commission and creditors waived off and details of the same are disclosed separately in the financial statements.

14. Segment Reporting:

The Company's operating business are organized and managed separately according to nature of products and services provided with each segment representing a strategic business unit that offers different product and serves different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the Company operates.

Income & expenses which relate to the Company as a whole and not allocable to segments are included in "Un-allocable Income / Expense".

15. Provisions, Contingent Liabilities & Contingent Assets:

a. Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation if:

i) The Company has a present obligations as result of past event

ii) A probable outflow of resource is expected to settle the obligation and

iii) The amount of the obligation can be reliably estimated

Reimbursement expected in respect in respect of expenditure required to settle a provisions is recognized only when it is virtually certain that the reimbursement will be received

b. Contingent liability is disclosed in case of:

i) A present obligation arising from past events, when it is not probable that an outflow of resource will be required to settle the obligation

ii) A present obligation arising from the past events, when no reliable estimate is possible and

iii) A possible obligation arising from the past events where the probability of outflow of resource is not remote

c. Contingent assets are neither recognized, nor disclosed.

d. Provision, Contingent liabilities and Contingent assets are reviewed at each balance sheet date.

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Mar 31, 2010

1. Method of accounting:

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles, requirements of the Companies Act 1956 and the applicable accounting standards issued by Institute of Chartered Accountants of India notified under Companies (Accounting Standards) Rules, 2006.

2. Use of estimates:

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the Contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Example of such estimates include provisions for doubtful debts, employee retirement benefit plans, provision for income taxes, and the useful life of fixed assets and intangible assets.

3. Fixed Assets:

Fixed assets are stated at historical cost. Cost includes related taxes, duties (net of CENVAT/ VAT credit), freight insurance, Impairment etc. attributable to bringing the assets to working condition for intended use, pre-operational expenses and technical fees paid for transfer of technology, relating to assets less accumulated depreciation. All amounts incurred for fixed assets pending completion/installation /ready for use are taken as Capital Work In Progress.

4. Depreciation:

The cost of leasehold land is amortized over the period of the lease. The Company provides depreciation on all the fixed assets other than leasehold land, tooling and fabricated assets on Straight line basis at the rates prescribed under Schedule XIV of the Companies Act 1956. Depreciation on assets fabricated by the Company is charged for only half year on Straight line basis. Depreciation on exchange difference on Capital account is provided on straight line basis on the balance life of the assets.

5. Impairment of Assets:

At each balance sheet date, the carrying amounts of fixed assets are reviewed by the management to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an assets net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and risks specific to the asset.

6. Inventories:

i. Raw material, Packing Material. Stores & Spares and work in Process are valued at cost or Net realisable value which ever is lower. However these items are considered to be realisable at the cost if the Finished Products in which they will be used are expected to be sold at or above cost, (its valued at cost).

ii. Cost is determined on FIFO Basis. Stock is determined on FIFO Basis.

iii. Finished Goods are valued at cost or net realisable value which ever is lower.

iv. Work in progress is valued by estimation of the stage of each job as. a percentage of net invoices as reduced by estimated profit margin.

7. Employee Benefits:

Contributions to Provident Fund & ESIC, under a defined contribution scheme are charged to the Profit and Loss Account. A provision for gratuity is made as per the Payment of Gratuity Act, 1972. Actuarial gains and losses are

recognised immediately in the statement of Profit and Loss Account as income or Expenses. As per the Accounting Standard 15 (Revised) issued by The Institute of Chartered Accountants of India, the liability in respect of earned Leave Encashment is provided on accrual basis.

8. Revenue recognition:

Revenue is recognized based on the nature of activity when consideration can be reasonably measured and there exist reasonable certainty of its recovery.

i) All revenues are generally recognized on accrual basis.

ii) Jobs completed, inspected by clients and invoiced are included in sales, pending delivery.

iii) Income is stated net of duties and taxes.

9. Foreign Currency Transactions:

i. Foreign Currency Transactions are accounted at the rate of exchange prevailing on the date of the Transactions. ii. Monetary items, denominated in foreign currency are translated at the exchange rate prevailing on the last date of the accounting year. iii. Gains / or losses arising out of translation / conversion is taken credit for or charged to Profit & Loss account.

10. Taxation:

Income Tax expenses comprise current tax, deferred tax charge or credit. Provision for current tax is made with reference to taxable income computed for the accounting year, for which the financial statements are prepared by applying the tax rates as applicable. The deferred tax charge or credit is recognised using prevailing enacted or substantively enacted tax rates. Deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. Deferred tax assets / liabilities are reviewed as at each Balance Sheet date based on development during the year and available case laws to reassess realisation / liabilities.

11. Earning per share:

A basic earning per share is computed by dividing net profit/loss after tax for the period by the weighted average number of equity shares outstanding for the period. Adiluted earning per share computed by dividing net profit/loss after tax for the period by the weighted average number of equity shares outstanding and dilutive potential equity shares.

12. Intangible assets:

Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprises and the cost of asset can be measured reliably.

Leasehold land has been amortised over the period of lease.

Administrative and other general overhead expenses that are specifically attributed to the acquisition of intangible asset are allocated and capitalized as a part of the cost of intangible assets.

13. Net Profit or Loss for the period, prior period items and change in accounting policies:

During the year under review, there is no material changes in the accounting policies are consistently followed by the Company.

Income in Profit and Loss account contains interest commission and creditors waived off and details of the same are disclosed separately in the Financial Statements.

14. Segment Reporting:

The Companys operating business are orgainsed and managed separately according to nature of products and services provided with each segment representing a strategic business unit that offers different product and serves different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the Company operates.

15. Provisions, Contingent Liabilities and Contingent Assets :

Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation if:

i) The Company has a present obligations as result of past event.

ii) A probable outflow of resource is expected to settle the obligation and

iii) The amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provisions is recognized only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed is case of.

i) A present obligation arising from past events, when it is not probable that an outflow of resource will be required to settle the obligation.

ii) A present obligation arising from past events, when no reliable estimate is possible; and

iii) Apossible obligation arising from the past events where the probability of outflow of resource is not remote. Contingent assets are neither recognized, nor disclosed. Provision, contingent liabilities and contingent assets are review at each balance sheet date.

16. The Micro, Small & Medium Enterprises :

The Micro, Small and Medium Enterprises as defined under the Micro, Small and Medium Enterprises Development Act 2006, have to be identified on the basis of information obtained by the Company.

17. Development Expenses:

The Company identifies expenses for development of new segment/market and the same are amortized over a period of three years.