Accounting Policies of Venlon Enterprises Ltd. Company

Mar 31, 2024

B SIGNIFICANT ACCOUNTING POLICIES

I Basis of Preparation & Presentation

The financial statements of the Company have been prepared on a going concern basis in accordance with Indian Accounting Standards (IND AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

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 measured at fair value

The Company’s financial statements are presented in lakhs of Indian Rupees (INR) which is its functional and presentation currency. All values are rounded off to the nearest lakh, except when otherwise indicated.

The preparation of the financial statements requires management to make estimates and underlying assumptions. Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future years.

II Statement of Compliance with Ind AS

The Financial Statements comprising Balance Sheet, Statement of Profit and Loss, Statement of Changes in Equity, Statement of Cash Flow together with notes for the year ended March 31, 2024 have been prepared in accordance with Ind AS duly approved by the Board of Directors at its meeting held on August 14, 2024

TTT Property, Plant and equipment

Property, plant and equipment is stated at cost less accumulated depreciation and where applicable, accumulated impairment losses. Cost includes expenditure that is directly attributable to acquisition of the asset. The cost of self constructed assets includes the cost of materials, direct labour and any other costs directly attributable to bringing the asset to a working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located.

When parts of an item of Property, Plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Gains and losses on disposal of an item of property plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of Property, Plant and equipment and are recognised net within "other income/other expenses" in the Statement of Profit and Loss. Subsequent Costs

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefit embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is de-recognised. The cost of day to day servicing of property, plant and equipment are recognised in Statement of Profit or Loss. Depreciation

Depreciation is recognized in the Statement of Profit and Loss under Straight Line basis over the estimated useful lives of each part of an item of property, plant and equipment as provided in Schedule II to the Companies Act, 2013.

However, in case of buildings built on leased land, Depreciation is recognised in the Statement of Profit and Loss account over the lease period of the asset.

IV Intangible Assets

Intangible assets that are acquired by the Company, which have finite useful lives are measured at cost less accumulated amortization and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the intangible asset.

Subsequent Expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, are recognised in the Statement of Profit and Loss.

Amortisation of intangible asset with useful life

Amortisation is recognised in the Statement of Profit and Loss on a straight line basis over the estimated useful lives of intangible assets from the date that they are available to use based on the estimates made by the management w.r.t the useful life and residual value.

V Inventories

Inventories are measured at the lower of cost (determined using Weighted average method for Raw materials & consumables, Work in progress and for finished goods by considering materials, labour and other related direct expenses.) and net realizable value. Cost comprises the fair value of consideration for the purchase and all directly attributable costs incurred in bringing the inventories to their present location and condition. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated cost necessary to make the sale.

However, in view of the fact that the manufacturing operations of the company has stopped, 100% of the inventory value has been provided for.

VI Critical Accounting Judgments, Assumptions and Key Sources of Estimation Uncertainty

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, the disclosures of contingent assets and contingent liabilities at the date of financial statements, income and expenses during the period. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in future periods which are affected.

a) Depreciation / amortisation and useful lives of property, plant and equipment / intangible assets

Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting period. The useful lives and residual values are based on the Company’s historical experience with similar assets and take into account anticipated technological changes. The depreciation / amortisation for future periods is revised if there are significant changes from previous estimates.

b) Recoverability of trade receivables

Judgments are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

c) Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgment to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

VII Financial Instruments

Financial assets comprises of investments In equity and debt securities, trade receivables, cash and cash equivalents and other financial assets.

Initial recognition:

All financial assets are recognised initially at Fair value plus transaction costs that are attributable to the Acquisition of the financial asset (In case of financial assets not recorded at FVTPL, transaction costs are recognised immediately in Statement of Profit and Loss). Purchase or sale of financial asset within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date.

Subsequent measurement:

Financial asset at FVTOCI(Fair value through other comprehensive income):

Financial assets that are held within a business model whose objective is achieved by both collecting contractual cash flow and selling financial asset and the contractual terms of financial assets give rise on specified dates to cash flow that are solely payments of principal and interest on the principal amount outstanding are subsequently measured at FVTOCI. Fair value movements in financial assets at FVTOCI are recognised in other comprehensive income.

De-recognition of financial asset:

Financial assets are derecognised when the contractual right to cash flows from the financial asset expire or the financial asset is transferred and the transfer qualifies for Derecognition. On Derecognition of a financial asset in its entirety, the difference between the carrying amount (measured at the date of Derecognition) and the consideration received (including any new asset obtained less any new liability Assumed) shall be recognised in the Statement of Profit and Loss (except for equity instruments designated as FVTOCI).

VTTT Financial liabilities

Initial recognition and measurement:

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

Subsequent measurement:

Financial liabilities are carried at amortized cost. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

De-recognition of financial liability:

A financial liability is de-recognised when and only when, it is extinguished i.e. when the obligation specified in the contract is discharged or cancelled or expires.

Offsetting of financial assets and liabilities

Financial assets and liabilities are offset and the net amount is presented in Balance sheet, when, and only when, the Company has a legal right to offset the recognised amounts and intends either to settle on a net basis or to realize the assets and settle the liability simultaneously.

IX Share Capital

Equity Shares are classified as equity. Where any shares are issued, incremental costs directly attributable to the issue of new equity shares or share options will be recognised as deduction from equity, net of any tax effects.

X Revenue Recognition

Revenue from the sale of goods is measured at fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognised when the significant risk and reward of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, and the amount of revenue can be measured reliably. Transfer of risk and reward vary depending on the individual terms of the contract of sale.

Consequent to the introduction of GST w.e.f. 1st July, 2017 revenue are required to be shown net of GST. Revenue of earlier period are shown inclusive of excise duty, corresponding excise duty included in revenue are shown as separate line item in the statement of profit & loss as expenses to reflect the net effect.

XI Employee Benefits

Employee benefits are accrued in the period in which the associated services are rendered by employees of the Company, as detailed below:

a) Defined contribution plan (Provident fund)

In accordance with Indian law, eligible employees receive benefit from provident fund, which is a defined contribution plan. Both the employee and employer make monthly contributions to the plan, each equal to a specific percentage of employee’s basic salary. The Company has no further obligations under the plan beyond its monthly contributions. The Company does not have any legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee service in the current and prior periods. Obligation for contributions to the plan is recognised as an employee benefit expense in the Statement of Profit and Loss when incurred.

b) Defined benefit plan (Gratuity)

In accordance with applicable Indian laws, the Company provides for gratuity, which is a defined benefit retirement plan covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees, at retirement or termination of employment, an amount based on the respective employee’s last drawn salary and the years of employment with the Company. The Company’s net obligation in respect of the gratuity plan is calculated by estimating the amount of future benefits that the employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. Any unrecognized past service cost and the fair value of plan assets are deducted. The discount rate is the yield at the reporting date on risk free government bonds that have maturity dates approximating the terms of the Company’s obligations. The calculation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the Company, the recognized asset is limited to the total of any unrecognized past service costs and the present value of economic benefit available in the form of any future refunds from the plan or reductions in the future contributions to the plan.

The Company has an employees’ gratuity fund managed by the Life Insurance Corporation of India.

c) Short term benefits

Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under short term cash bonus or profit sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

XII Finance income and expense

Finance income comprises of interest income on funds invested, dividend income, fair value gains on financial assets at fair value through profit or loss. Interest income is recognised using effective interest method. Dividend income is recognised in Statement of Profit and Loss on date when the company’s right to receive payment is established, which in the case of quoted securities is the ex-dividend date.

Finance expense comprises of interest expense on loans and borrowings, bank charges, unwinding of discount on provision, fair value losses on financial asset through FVTPL that are recognised in the Statement of Profit and Loss.

XIII Borrowing Costs

Borrowing costs that are directly attributable to acquisition, construction or production of a qualifying asset are capitalised as part of cost of that asset. Other borrowing costs are recognized as expenses in the period in which they are incurred. To the extent the Company borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the Company determines the amount of borrowings costs eligible for capitalization by applying a capitalization rate to the expenditure incurred on such asset. The capitalization rate is determined based on the weighted average of borrowing costs applicable to the borrowings of the Company which are outstanding during the period, other than borrowings made specifically towards purchase of qualifying asset. The amount of borrowing costs that the Company capitalizes during a period does not exceed the amount of borrowing costs incurred during that period.

XIV Income Taxes

Income tax expense comprises current and deferred tax. Income tax expense is recognized in the Statement of Profit and Loss except to the extent it relates to items recognised directly in equity or in other comprehensive income. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date. Minimum Alternate Tax (MAT) is accounted as current tax when the Company is subjected to such provisions of the Income Tax Act. However, credit of such MAT paid is available when the Company is subjected to tax as per normal provisions in the future. Credit on account of MAT is recognized as an asset based on the management’s estimate of its recoverability in the future.

Deferred tax is recognized using the Balance Sheet method, providing for temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.

A deferred tax asset is recognized to the extent it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

XV Foreign Currency Transactions and balances

Transactions in foreign currencies are initially recognised in the financial statements using exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated to the relevant functional currency at the exchange rates prevailing at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are re-translated to the functional currency at the exchange rate prevailing on the date that the fair value was determined. Non monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. Foreign currency differences arising on translation are recognised in Statement of Profit and Loss under the head ''Other Comprehensive Income'' for determination of net profit or loss during the period.

XVI Earnings Per Share

The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Where ordinary shares are issued but not fully paid, they are treated in the calculation of basic earnings per share as a fraction of an ordinary share to the extent that they were entitled to participate in dividends during the period relative to a fully paid ordinary share. Diluted EPS is determined by adjusting profit or loss attributable to ordinary shareholders and the weighted average number of shares outstanding for the effects of all potential ordinary shares, which include share options granted to employee if any, to the extent that partly paid shares are not entitled to participate in dividends during the period. They are treated as equivalent of warrants or options in the calculation of diluted earnings per share.

XVII Statement of Cash Flow

Cash flows are reported using the indirect method, whereby, loss before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows are segregated into operating, investing and financing activities.

XVTTT Segment Reporting

Operating segments are identified and reported taking into account the different risks and returns, the organization structure and the internal reporting systems. Since the company has discontinued all its operations, there are no reportable segments for the current year.

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Mar 31, 2015

Basis of Accounting

The Financial Statements are prepared on the historical cost convention (except for revaluation of plant and machinery, building and land), in accordance with applicable Accounting Standards and the relevant provisions of the Companies Act. 2013.

Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the dale of financial statements and reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates arc recognized in the period ifl which the results are known / materialised.

Revenue kecoemtioa

All income and expenditure are accounted on accrual basis.

Fixed Assets

All tangible assets are staled at acquisition cost or revalued amounts, as the case may be. net of uccumul depreciation and impairment losses, if any. Lhe cost includes expenditure incurred in the acquisition construction I installation and other related expenses in bringing the asset to working condition for its intended In respect of qualifying assets, related pre operational expenses including borrowing costs are also capitalized Cast of revaluation of fixed assets, the original cost as written up by the valued, is considered in the account an< differential amount Is transferred to revaluation reserve. Subsequent expenditures related to an item of fixed are added to its book value only if they increase the future benefits from the existing asset beyond its presto iissessed standard of performance. Loss arising from retirement of. and gains or losses from disposal of fixed a; arc recognised in the Statement of Profit and l,oss.

Costs relating to acquisition of Software are capitalised as Intangible Assets"

Depreciation

Depreciation on fixed Assets has been provided on Straight line Method over the estimated useful lives of the asset prescribed in Schedule IT to the Companies Act. 2013 which are as follows;

factory Building - 30 Years

Office Building - 60 Years

Plant & Equipment - 23 Years

Furniture &. fixtures - 10 Years

Electrical Installations - ItJ Years Vehicles - 8 Years

Windmill - 22 Years

Roads - 10 Years

Investments

Long term imesimerii are staled 61 cost. Provision tor diminution in value is made if the decline in value is other than temporary.

Foreign Current Transactions

I he Company is exposed to currency fluctuations on foreign currency transactions. Transactions denominated in foreign currency are recorded at the exchange rale prevailing on I he dale of iransactions-

Exchange differences arising on foreign exchange transactions settled during the year are recognised in the profit and loss statement of the year.

a) Transaction

Monetary assets and liabilities in foreign currency, which are ouislanding as ai the year-end. are translated at the year- end at the closing exchange rale and llie resultant exchange differences are recognized in the profit and loss statement. Non monetary items are stated in the balance sheet using the exchange rate at the date of the transaction.

b) The Exchange differences arising on reporting of long term foreign currency monelary items at rate different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital assets is added to or deducted from the cost of ihe assets and shall be depreciated over the balance life of the assets, and in other cases is accumulated in a "Foreign Currency monetary item Translation difference account ' In the companies financial statements and amortized over the balance period of such long term assets or liabilities, by recognition as Income or expense In each of such periods.

Pgnyajjye instruments

The Company's exposure to foreign currency fluctuations relates to foreign currency assets, liabilities and forecasted cash flows. The Company limits the effects of foreign exchange rale fluctuations by following established risk management policies including the use of derivatives. The Company enters into forward exchange contracts, where the counterparty is a bank.

Inventories

(i) inventories are valued as follows:

Stores, Spares, Packing Materials, Raw Materials, Finished Goods and Stock in Process - al lower of cosl and net realizable value.

(ii) Cost of Raw Materials, Stores. Spares and Packing Materials is determined on weighted average basis. Cost of Finished Goods and Stock in Process is determined by considering materials, labour and other related direct expenses.

Customs Oiitv and Excise Puiv

Customs Duly and Excise Duty have been accounted for on [he basis of both pay menus made in respect of goods cleaned as welt as provision made for goods lying in bonded warehouse. Such provision is included in the valuation of closing stocks of respective materials and goods.

Short term employee benefits are accounted in the period during which the services have been rendered.

Eligible employees receive benefits from provident fund, superannuation fund, employee stale insurance and other funds which are defined contribution plans. Both the eligible employee and the company make monthly contributions to the respective government administered funds equal to the specified percentage of the covered employee's salary. The company has no further obligation beyond its monthly contributions.

Income Taxes

Tax expense comprises of both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws. Dclerrcd tax assets and liabilities arising on account of timing difference and which are capable of reversal In subsequent periods are recognized using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. If the company has carry forward unabsorbed depreciation and tax losses, deferred Tax assets are recognized only to the extent there is a virtual certainty supported by convincing evidence ihat sufficient laxable income will be available against which such deferred tax assets can he realized.

Borrowing costs

Interest and other borrowing costs attributable to the acquisition of or construction of qualifying assets till the date of commercial use of the assets arc capitalized. All other borrowing costs are charged to revenue.

Provisions and fnutiUEtmt Liabilities

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

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Mar 31, 2014

Basis of Accounting

The Financial Statements. are prepared on the historical cost convention (except for revaluation of Plant and Machinery), in accordance with applicable Accounting Standards and the relevant provisions of the Companies Act, 1

Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and Iiabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known / materialised.

Revenue Recognition

All Income and expenditure are accounted on accrual basis.

Fixed Assets

Fixed Assets are stated at cost or revalued amounts, as the case may be, less accumulated depreciation and provision for impairment, if any. The cost includes expenditure incurred in the acquisition and construction / installation and other related expenses in bringing the asset to working condition for its intended use. In respect of qualifying assets, related pre operational expenses including borrowing costs are also capitalised. In case of revaluation of fixed assets, the original cost as written up by the valuer, is considered in the account and the differential amount is transferred to revaluation reserve.

Costs relating to acquisition of Software are capitalised as "Intangible Assets"

Depreciation

Depreciation on Fixed Assets other than Special tools. Jigs, fixtures included under the head Plant &. Machinery and Software has been provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act. 1956 on prorata basis from the date of additions and/or disposal.

Investments

Long Term Investments arc stated at cost. Provision for diminution in value is made if the decline in value is other than temporary.

Foreign Currency Transactions

The Company is exposed to currency fluctuations on foreign currency transactions. Transactions denominated in foreign currency arc recorded at the exchange rate prevailing on (the date of transactions.

Exchange differences arising on foreign exchange transactions settled during the year are recognised in the profit and loss statement of the year.

a) Transaction

Monetary assets and liabilities in foreign currency, which are outstanding as at the year-end, are translated at the year-end at the closing exchange rate and the resultant exchange differences arc recognised in the profit and loss statement. Non monetary items are staled in the balance sheet using the exchange rate at the date of the transaction.

b) The Exchange differences arising on reporting of long term foreign currency monetary items at rate different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital assets is added to or deducted from the cost of the assets and shall be depreciated over 1 he balance life of the assets, and in other cases is accumulated in a "Foreign Currency monetary item Translation difference account "In the companies financial statements and amortized over the balance period of such Jong term assets or liabilities, by recognition as income or expense in each of such periods.

Derivative instruments

The Company''s exposure to foreign currency fluctuations relates to foreign currency assets, liabilities and forecasted cash Hows. The Company limits the effects of foreign exchange rate fluctuations by following established risk management policies including the use of derivatives. the Company enters into forward exchange contracts, where the counterparty if a bank.

Inventories

(i) Inventories are valued as follows:

Stores. Spares, Packing Materials. Raw Materials. Finished GoodHand Stock in Process - at lower of cost and net realisable value.

(iij Cost of Raw Materials, Store:''- Spares and Packing Materials is determined on weighted average basis. Cost of finished Goods and Stock in Process is determined by considering materials, labour and other related direct expenses.

Customs Duty and Excise Duty have been accounted for on the basis of both payments made in respect of goods cleared as well as provision made for goods lying in bonded warehouse. Such provision is included in the valuation of closing slocks of respective materials and goods.

Retirement & other employee benefits

Short term employee benefits are accounted in the period during which the services have been rendered.

The Company''s contribution to the Provident Fund is remitted to a trust established for this purpose based On fixed percentage of the eligible employees'' salary and charged to Profit &, Loss statement. The company is generally liable for annual contributions and any shortfall in the fund assets, based on the Government specified minimum rate of return and recognises such contribution and shortfall, if any, as an expense in the year incurred.

Superannuation benefits to employees, a defined contribution plan, as per company''s scheme, have been funded with Life Insurance Corporation of India and the contribution is charged to Profit &. Loss statement when the contribution to the fund is due.

The Company''s liability towards Gratuity. Pension lo certain categories of employees are accounted for based on Actuarial valuation done at the year end using the Projected Unit Credit Method. Actuarial gains and losses are charged to Profit & Loss statement. Gratuity liability is funded to the trust established for the purpose,

Income Taxes

Tax expense comprises of both current and deferred taxes. Current Tax is provided on the taxable income rising the applicable tax rates and tax laws. Deferred tax asses and liabilities arising on account of timing difference and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are recognised only to the extent that there is reasonable certainity that sufficient future taxable income will be available against Which such deferred tax assets can be realised. If the company has carry forward unabsorbed depreciation and tax losses, deferred Tax assets are recognised only to the extent there is a virtual certainity supported by convincing evidence that sufficient taxable income will be available against which such deferred tax assets can be realised.

Borrowing costs

Interest and other borrowing costs attributable to the acquisition of or construction of qualifying assets till the date of commercial use of the assets are capitalised. All other borrowing costs are charged to revenue.

Provisions and Contingent Liabilities

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

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Mar 31, 2013

Basis of Accounting

The Financial Statements are prepared on the historical cost convention (except for revaluation of Plant and Machinery), in accordance with applicable Accounting Standards and the relevant provisions of the Companies Act, 1956.

Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known / materialised.

Revenue Recognition

All income and expenditure are accounted on accrual basis.

Sale of goods are recognised upon passage of title to the customers which generally coincides with their delivery. Revenue from job work charges for materials lying in stock, pending despatches at the year end, are accounted for on accrual basis.

Fixed Assets

Fixed Assets are stated at cost or revalued amounts, as the case may be, less accumulated depreciation and provision for impairment, if any. The cost includes expenditure incurred in the acquisition and construction / installation and other related expenses in bringing the asset to working condition for its intended use. In respect of qualifying assets, related pre operational expenses including borrowing costs are also capitalised. In case of revaluation of fixed assets, the original cost as written up by the valuer, is considered in the account and the differential amount is transferred to revaluation reserve.

Costs relating to acquisition of Software are capitalised as "Intangible Assets"

Depreciation

Depreciation on Fixed Assets other than Special tools, Jigs, Fixtures included under the head Plant & Machinery and Software has been provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 on prorata basis from the date of additions and/or disposal.

Special tools, Jigs & Fixtures are written off over a period of three years based on Technical estimate. Software is amortised on straight line basis over a period of three years.

Investments

Long Term Investments are stated at cost. Provision for diminution in value is made if the decline in value is other than temporary.

Foreign Currency Transactions

The Company is exposed to currency fluctuations on foreign currency transactions. Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of transactions.

Exchange differences arising on foreign exchange transactions settled during the year are recognized in the profit and loss account of the year.

Transaction

Monetary assets and liabilities in foreign currency, which are outstanding as at the year-end, are translated at the year- end at the closing exchange rate and the resultant exchange differences are recognized in the profit and loss account. Non monetary items are stated in the batance sheet using the exchange rate at the date of the transaction.

Derivative instruments

The Company''s exposure to foreign currency fluctuations relates to foreign currency assets, liabilities and forecasted cash flows. The Company limits the effects of foreign exchange rate fluctuations by following estabilished risk management policies including the use of derivatives. The Company enters into forward exchange contracts, where the

Inventories ;

(i) Inventories are valued as follows:

Stores, Spares, Packing Materials, Raw Materials, Finished Goods and Stock in Process - at lower of cost and net

(ii) Cost of Raw Materials, Stores, Spares and Packing Materials is determined on weighted average basis. Cost of Finished Goods and Stock in Process is determined by considering materials, labour and other related direct expenses.

Customs Duty and Excise Duty

Customs Duty and Excise Duty have been accounted for on the basis of both payments made in respect of goods cleared as well as provision made for goods lying in bonded warehouse. Such provision is included in the valuation of closing stocks of respective materials and goods.

Retirement & other employee benefits

Short term employee benefits are accounted in the period during which the services have been rendered.

The Company''s contribution to the Provident Fund is remitted to a trust established for this purpose based on fixed percentage of the eligible employees'' salary and charged to Profit & Loss Account. The company is generally liable for annual contributions and any shortfall in the fund assets, based on the Government specified minimum rate of return and recognises such contribution and shortfall, if any, as an expense in the year incurred.

Superannuation benefits to employees, a defined contribution plan, as per company''s scheme, have been funded with Life Insurance Corporation of India and the contribution is charged to Profit & Loss Account, when the contribution to The Company''s liability towards Gratuity, Pension to certain catagories of employees and long term employee Compensated Leave Encashment being defined benefit plans are accounted for based on Actuarial valuation done at the year end using the Projected Unit Credit Method. Actuarial gains and losses are charged to Profit & Loss Account. Gratuity liability is funded to the trust established for the purpose.

Income Taxes

Tax expense comprises of both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assests and liabilities arising on account of timing difference and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are recognised only to the extent that there is reasonable certainity that sufficient future taxable income will be available against which such deferred tax assets can be realised. If the company has carry forward unabsorbed depreciation and tax losses, deferred Tax assets are recognised only to the extent there is a virtual certainity supported by convincing evidence that sufficient taxable income will be available against which such deferred tax assets can be realised.

Borrowing costs

Interest and other borrowing costs attributable to the acquisition of or construction of qualifying assets till the date of commercial use of the assets are capitalised. All other borrowing costs are charged to revenue.

Provisions and Contingent Liabilities

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

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Mar 31, 2012

Basis of Accounting

The Financial Statements are prepared on the historical cost convention (except for revaluation of Plant and Machinery), in accordance with applicable Accounting Standards and the relevant provisions of the Companies Act, 1956.

Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known / materialised.

Revenue Recognition

All income and expenditure are accounted on accrual basis.

Sale of goods are recognised upon passage of title to the customers which generally coincides with their delivery. Revenue from job work charges for materials lying in stock, pending despatches at the year end. are accounted for on accrual basis.

Fixed Assets

Fixed Assets are stated at cost or revalued amounts, as the case may be, less accumulated depreciation and provision for impairment, if any. The cost includes expenditure incurred in the acquisition and construction / installation and other related expenses in bringing the asset to working condition for its intended use. In respect of qualifying assets, related pre operational expenses including borrowing costs are also capitalised. In case of revaluation of fixed assets, the original cost as written up by the valuer, is considered in the account and the differential amount is transferred to revaluation reserve.

Costs relating to acquisition of Software are capitalised as "Intangible Assets"

Depreciation

Depreciation on Fixed Assets other than Special tools, Jigs, Fixtures included under the head Plant & Machinery and Software has been provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 on prorata basis from the date of additions and/or Special tools, Jigs & Fixtures are written off over a period of three years based on Technical estimate. Software is amortised on straight line basis over a period of three years.

Investments

Long Term Investments are stated at cost. Provision for diminution in value is made if the decline in value is other than temporary.

Foreign Currency Transactions

The Company is exposed to currency fluctuations on foreign currency transactions. Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of transactions.

Exchange differences arising on foreign exchange transactions settled during the year are recognized in the profit and loss account of the year.

Transaction

Monetary assets and liabilities in foreign currency, which are outstanding as at the year-end, are translated at the year- end at the closing exchange rate and the resultant exchange differences are recognized in the profit and loss account.

Non monetary items are stated in the balance sheet using the exchange rate at the date of the transaction.

Derivative instruments

The Company's exposure to foreign currency fluctuations relates to foreign currency assets, liabilities and forecasted cash flows. The Company limits the effects of foreign exchange rate fluctuations by following estabilished risk management policies including the use of derivatives. The Company enters into forward exchange contracts, where the As per Accounting Standard ('AS') 11 - The Effects of Changes in Foreign Exchange Rates', the premium or the discount on forward exchange contracts not relating to firm commitments or highly probable forecast transactions and not intended for trading or speculation purpose is amortized as expense or income over the life of the contract. All other derivatives, which are not covered by AS 11, are measured using the mark-to-market principle and losses, if any, are

Inventories

(i) Inventories are valued as follows:

Stores, Spares, Packing Materials, Raw Materials, Finished Goods and Stock in Process - at lower of cost and net

(ii) Cost of Raw Materials, Stores, Spares and Packing Materials is determined on weighted average basis. Cost of Finished Goods and Stock in Process is determined by considering materials, labour and other related direct expenses.



Customs Duty and Excise Duty

Customs Duty and Excise Duty have been accounted for on the basis of both payments made in respect of goods cleared as well as provision made for goods lying in bonded warehouse. Such provision is included in the valuation of closing stocks of respective materials and goods.

Retirement & other employee benefits

Short term employee benefits are accounted in the period during which the services have been rendered

The Company's contribution to the Provident Fund is remitted to a trust established for this purpose based on fixed percentage of the eligible employees' salary and charged to Profit & Loss Account. The company is generally liable for annual contributions and any shortfall in the fund assets, based on the Government specified minimum rate of return and recognises such contribution and shortfall, if any. as an expense in the year incurred.

Superannuation benefits to employees, a defined contribution plan, as per company's scheme, have been funded with Life Insurance Corporation of India and the contribution is charged to Profit & Loss Account, when the contribution to the fund is The Company's liability towards Gratuity. Pension to certain catagories of employees and long term employee Compensated Leave Encashment being defined benefit plans are accounted for based on Actuarial valuation done at the year end using the Projected Unit Credit Method. Actuarial gains and losses are charged to Profit & Loss Account. Gratuity liability is funded to the trust established for the purpose.

Income Taxes

Tax expense comprises of both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assests and liabilities arising on account of timing difference and which are capable of reversal in subsequent periods are recognised using the tax rates and tax laws that have been enacted or substantively enacted Deferred tax assets are recognised only to the extent that there is reasonable certainity that sufficient future taxable income will be available against which such deferred tax assets can be realised. If the company has carry forward unabsorbed depreciation and tax losses, deferred Tax assets are recognised only to the extent there is a virtual certainity supported by comincing evidence that sufficient taxable income will be available against which such deferred tax assets can be realised

Borrowing costs

Interest and other borrowing costs attributable to the acquisition of or construction of qualifying assets till the date of commercial use of the assets are capitalised. All other borrowing costs are charged to revenue

Provisions and Contingent Liabilities

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

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Mar 31, 2010

A Basis of Presentation: The accounts have been prepared in accordance with the Mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant presentation requirement of the Companies Act, 1956.

b Fixed Assets: Fixed Assets are stated at cost or Revaluation net of accumulated depreciation Cost comprises of the purchase price and any directly attributable costs of bringing the assets to working condition for its use including interest and other incidental expenses upto the date of commercial production Surplus on revaluation of fixed assets is credited to Capital Reserve Account

c. Depreciation: Depreciation is provided on straight-line method as per rates specified in Schedule XIV of Companies Act, 1956, as amended from time to time

d Inventories: Inventories are valued at lower of Average Cost or Net realisable Value Other items are valued at cost The Proforma price at which goods are transferred to various depots from Mysore Plant is considered as Cost for the purpose of valuation of finished Goods lying at Depots.

e. Investments: Investments are stated at cost of acquisition

f Revenue Recognition:

i) Revenue and Cost are accrued as they are earned or incurred

ii) Premium Paid to LIC in respect of Employees Group Gratuity Scheme is charged to Profit and Loss Account Provision for gratuity liability has been made in the account in respect of employees at Mumbai office, who have put in qualifying period of service

g. Foreign Currency Transactions:

Transactions in Foreign Currency are recorded at the exchange rates prevailing at the time of transaction and Exchange differences arising from foreign currency transactions are dealt with in Profit and Loss Account and adjusted where they relate to fixed Assets Current Assets and Liabilities at the year-end are converted at closing Rates and exchange losses are dealt with in the Profit and Loss Account or adjusted in Cost of Fixed Assets

h Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of a qualifying assets are capitalised 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 All other borrowing costs are charged to revenue

i Deferred Taxation:

Deferred Tax resulting from Timing differences between book and tax profits is accounted for under the liability method, at the current rates of tax, to the extent that the timing differences are expected to crystallise.