Accounting Policies of Welterman International Ltd. Company

Mar 31, 2024

Note 2: Significant Accounting Policies

2.1 Statement of compliance

Financial Statements have been prepared in accordance with the accounting principles
generally accepted in India including the Indian Accounting Standards (Ind AS) prescribed under
the Section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 as amended and relevant provisions of the Companies Act,
2013.

Accordingly, the Company has prepared these Financial Statements which comprise the
Balance Sheet as at 31 March, 2024, the Statement of Profit and Loss for the year ended 31
March, 2024, the Statement of Cash Flows for the year ended 31 March, 2024 and the Statement
of Changes in Equity for the year ended as on that date, and accounting policies and other
explanatory information (together hereinafter referred to as ‘Financial Statements'' or ‘financial
statements'').

These financial statements are approved for issue by the Board of Directors on 29^th May 2024.

2.2 Basis of preparation of financial statements

The financial statements have been prepared in accordance with Indian Accounting Standards
(Ind-AS), under the historical cost convention on the accrual basis as per the provisions of
Companies Act, 2013.

Accounting Policies have been applied consistently over all the periods reported in these
Financial Statements, except where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard requires a change in the accounting policy hitherto in
use.

The Financial Statements have been presented in Indian Rupees (INR), which is the Company''s
functional currency. All financial information are presented in INR .

2.3 Significant Accounting Judgments, Estimates and Assumptions

In preparing these financial statements in conformity with Ind-AS, the Management is required to
make judgments, estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income and expenses. Actual results may differ
from these estimates.

This note provides an overview of the areas where there is a higher degree of judgment or
complexity. Detailed information about each of these estimates and judgments is included in
relevant notes together with information about the basis of calculation.

The areas involving critical estimates or judgments are:

• Measurement of Contingent Liabilities- Note 23

• Defined benefit obligations - Note 24

Estimates and underlying assumptions are reviewed on an ongoing basis. Estimates are based on
historical experience and other factors, including futuristic reasonable information that may have
a financial impact on the company. Any change in these estimates and assumptions will
generally be reflected in the financial statements in current period or prospectively, unless they
are required to be treated retrospectively under relevant accounting standards.

2.4 Classification of Current/Non-Current Assets and Liabilities

All assets and liabilities are presented as Current or Non-Current as per the Company''s normal
operating cycle and the other criteria set out in Schedule III of the Companies Act, 2013. Based
on the nature of products and the time between the acquisition of assets for processing and their
realization, the Company has ascertained its operating cycle as 12 months for the purpose of
Current/Non-Current classification of assets/liabilities.

2.5 Standards issued but not effective (based on exposure drafts available as on date)

The amendments are proposed to be effective for reporting periods beginning on or after 1st April
2022.

Amendments to existing standards

Ministry of corporate affairs has made amendments in the following accounting standards.

(i) Ind AS 101 - Subsidiary as a First-time Adopter

(ii) Ind AS 109 - Fees in the ‘10 per cent'' Test for Derecognition of Financial Liabilities

(iii) Ind AS 41 - Taxation in fair value measurements for Agriculture.

The Company is in the process of evaluating the impact of the new amendments issued but not
yet effective.

2.6 Property, Plant and Equipment

Property, Plant and Equipment, net of accumulated depreciation and accumulated impairment
losses, if any.

The cost of property, plant and equipment comprises its purchase price net of any trade
discounts and rebates, any import duties and other taxes (other than those subsequently
recoverable from the tax authorities), any directly attributable expenditure on making the asset
ready for its intended use, including relevant borrowing costs for qualifying assets and any
expected costs of decommissioning. Expenditure incurred after the property, plant and
equipment have been put into operation, such as repairs and maintenance, are charged to the
Statement of Profit and Loss in the year in which the costs are incurred. It includes professional
fees and, for qualifying assets, borrowing costs capitalised in accordance with the Company''s
accounting policy based on Ind AS 23 - Borrowing costs. Such properties are classified to the
appropriate categories of PPE when completed and ready for intended use. Items such as
Standby Equipments and Service Equipments that meet definition of PPE are capitalized at cost.

The cost and related accumulated depreciation are eliminated from the financial statements
upon sale or retirement of the asset and the resultant gains or losses are recognized in the
statement of profit and loss. Assets to be disposed off are reported at the lower of the carrying
value or the fair value less cost to sell.

Capital Work-in-Progress

Assets in the course of construction are capitalised in the Capital Work in Progress account. At the
point when an asset is operating at management''s intended use, the cost of construction is
transferred to the appropriate category of property, plant and equipment and then depreciation
commences.

2.7 Depreciation / Amortisation

Depreciation is calculated on a straight-line basis as per the specified life of the assets as
provided in schedule II to the Companies Act, 2013. The useful life of Item of PPE are mentioned
below.

The management, based on internal technical evaluation, believes that the useful lives as given
above best represent the period over which the assets are expected to be used.

Depreciation methods, useful lives and residual values are reviewed periodically, including at
each financial year end.

2.8 Impairment of Assets

The carrying amounts of assets are reviewed at balance sheet date to check if
there is any indication of impairment based on internal or external factors. An asset is treated as
impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is
charged to the statement of profit and loss in the year in which an asset is identified as impaired.
The impairment loss, if any, recognized in prior accounting period is reversed if there has been a
change in the estimate of recoverable amount.

2.9 Revenue recognition

Revenue is measured based on the consideration specified in a contract with a customer.

Sale of goods

The principal activity from which the Company generates revenue is the supply of products to
customers from its various manufacturing sites and warehouses. Products are supplied under a
variety of standard terms and conditions, and in each case, revenue is recognized when
contractual performance obligations between the Company and the customer are satisfied and
control of product has been transferred to the Customer. This will typically be on dispatch or
delivery. When sales discount and rebate arrangements result in variable consideration,
appropriate provisions are recognized as a deduction from revenue at the point of sale (to the
extent that it is highly probable that a significant reversal in the amount of cumulative revenue will
not be required). The Company typically uses the expected value method for estimating variable
consideration, reflecting that such contracts have similar characteristics and a range of possible
outcomes.

Sale of Services

Revenues for services are recognised when the service rendered has been completed.

Royalties and profit-sharing arrangements

Revenues are recognized when performance obligations between the Company and the
customer are satisfied in accordance with the substance of the underlying contract.

Interest and dividend income

Interest income is recognized on a time-proportion basis using the effective interest method.
Dividend income is recognized when the right to receive payment is established.

2.10 Inventories

The inventories are valued at cost or net realizable value whichever is lower. The basis of
determining the value of each class of inventory is as follows:

2.11 Financial Instruments

The Company recognizes financial assets and financial liabilities when it becomes a party to the
contractual provisions of the instrument.

a. Financial Assets

(i) Initial recognition and measurement

The Company recognizes financial assets when it becomes a party to the contractual
provisions of the instrument. All financial assets are recognized at fair value on initial
recognition, except for trade receivables which are initially measured at transaction price.
Transaction costs that are directly attributable to the acquisition of financial assets that are not
at fair value through profit or loss are added to the fair value on initial recognition. Regular way
trade of financial assets are accounted for at trade date.

(ii) Subsequent measurement

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

- Financial assets at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

After initial measurement, debt instruments at amortised cost are subsequently measured at
amortised cost using the effective interest rate method, less impairment, if any.

- Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income
if it is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

The Company has made an irrevocable election for its investments which are classified as
equity instruments to present the subsequent changes in fair value in other comprehensive
income based on its business model.

- Financial assets at fair value through profit or loss

Financial assets which are not classified in any of the above categories are subsequently fair
valued through profit or loss.

- Investment in Subsidiaries

Investment in subsidiaries is carried at cost in the financial statements.

(iii) Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is derecognized (i.e. removed from the Company''s Balance Sheet) when any
of the following occurs:

i. The contractual rights to cash flows from the financial asset expires;

ii. The Company transfers its contractual rights to receive cash flows of the financial
asset and has substantially transferred all the risks and rewards of ownership of the
financial asset;

iii. The Company retains the contractual rights to receive cash flows but assumes a
contractual obligation to pay the cash flows without material delay to one or more
recipients under a ‘pass-through'' arrangement (thereby substantially transferring all
the risks and rewards of ownership of the financial asset);

iv. The Company neither transfers nor retains substantially all risk and rewards of
ownership and does not retain control over the financial asset.

b. Financial Liabilities

(i) Initial recognition and measurement

The Company''s financial liabilities include trade and other payables, loans and borrowings
including bank overdrafts, financial guarantee contracts. Financial liabilities are classified, at
initial recognition, at fair value through profit and loss or as those measured at amortised cost.

(ii) Subsequent measurement

The subsequent measurement of financial liabilities depends on their classification as follows:

Financial liabilities at fair value through profit and loss

Financial liabilities at fair value through profit and loss include financial liabilities held for
trading.

The Company has not designated any financial liabilities upon initial recognition at fair value
through profit and loss.

Financial liabilities measured at amortised cost

After initial recognition, interest bearing loans and borrowings are subsequently measured at
amortised cost using the effective interest rate method.

Derecognition

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

c. Fair Value

The Company measures financial instruments at fair value in accordance with the
accounting policies mentioned above. Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:

• In the principal market for asset or liability or

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

All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy that categorizes into three levels, described as
follows, the inputs to valuation techniques used to measure value. The fair value hierarchy
gives the highest priority to quoted prices in active markets for identical assets or liabilities
(Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs).

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

Level 2 - inputs other than quoted prices included within Level 1 that are observable for

the asset or liability, either directly or indirectly

Level 3- inputs that are unobservable for the asset or liability

For assets and liabilities that are recognized in the financial statements at fair value on a
recurring basis, the Company determines whether transfers have occurred between levels in
the hierarchy by re-assessing categorization at the end of each reporting period and discloses
the same.

2.12 Foreign Exchange Transactions

The functional currency of the Company is Indian Rupees which represents the currency of the
primary economic environment in which it operates.

Transactions in foreign currencies are initially recorded by the Company at the rate of
exchange prevailing on the date of the transaction. Monetary assets and monetary liabilities
denominated in foreign currencies remaining unsettled at the end of the year are converted
at the exchange rate prevailing on the reporting date.

Differences arising on settlement or conversion of monetary items are recognised in statement
of profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign
currency are recorded using the exchange rates at the date of the transaction

2.13 Trade Receivables

Trade Receivables are stated after writing off debts considered as bad. Adequate provision is
made for Expected Credit Losses.

2.14 Borrowing costs

(i) Borrowing cost includes interest, amortization of ancillary costs incurred in
connection with the arrangement of borrowings and exchange differences arising
from foreign currency borrowings to the extent they are regarded as an
adjustment to the interest cost.

(ii) Borrowing costs, if any, directly attributable to the acquisition, construction or
production of an asset that necessarily takes a substantial period of time to get
ready for its intended use or sale are capitalized. All other borrowing costs are
expensed in the period they occur.

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Mar 31, 2014

A. Basis of Presentation

The accounts have been prepared using historical ooai convention and on the basis of a going concern, with revenues recognised and expenses accounted for on accrual (Including tor com mitted obligations), in accordance with the accounting standard prescribed ui the Companies (Accounting Standards) Rules, 2006 issued by the Central Government, in consultation with the Matronal Advisory Committee on Accounting Standards, to the extent applicable. Insurance and other dams are accounted tor, as and when admitted by the appropriate authorises.

B. Fixed Assets

a) Capitalized at acquisition cost Including directly attributable cost such as freight Insurance and specific installation charge for bringing the asset to its working condition for use.

b) Expenditure relating to existing fixed assets Is added to the oast of the assets where it Increases Hib performanceflife of the assets as assessed earlier.

C. Depreciation

Depreciation is charged on Plant and Machineries as per Written down Value method and on the Other Assets as per the Straight line Method from the dam of installstton/use asset at the rates and in (he manner prescribed under schedule XIV to the Companies Act, 1956.

D. Investments

Long Term Investments are stated at costless provision, if any, lordedine other than temporary in their value.

E. Valuation of Inventories

Inventories ere valued as under: Raw Materials, Work in Progress, Trading Goods and Finished Goods are vb! ued at lower of Cost or Net Realizable Value using First in First Out Method.

F. Recognition of Incomes:

?) Revenues' /lncomes are generally accounted on -accrual, as they are earned.

b) Sale of goods Is recognized on transfer of property ;n goods or on transfer of SIgnffleant risks and reward of ownership lo the buyer, which is generally on dispatch of goods.

G. Contingencies and events occurring after the date of Balance sheet

a) Accounting for contingencies (gai ns and las ses) arising nut of contractual obfigatians ars made only nn the basis of mutual acceptance.

o) Where material, events cccurring after fhe dare of Balance Sheet are considered up to the date of adoption of the accounts,

H. Foreign Currency Transactions

Transactions in foreign currency ana recorded at the rotas of exchange in force at the lime of occuraence the transactions. upon realisation, the resultant adjusted in the respective account.

i. Prior Period items

Prior Period and Extra Ordinary items and Changes in Accounting Policies, having a matenail bearing on the financial affairs of the Company are disclosed separately along with the amount by which any Item in the financial StatCunarcls is affected by Such change wherever same is available.

J. Impairment of Assets;

The carrying amounts of assets are reviewed at each balanoe sheet date if Shore is any indication of impa indent based on internalsexternal factors. Ah asset Is impaired when the Carrying a mount of Lhe asset exceeds the recoverable amount An impaimwit loss ;5 charged la the Profit & Loss Acco urn in t h e ye a r in which an asse t is i d enllf ie d as impan ud. An impairment loss recognized in prior accounting penuds is reversed itthere has been ctcunge rn the esti mate of the teeovemola amount.

K. Use of Estimates :

The prep arm on statements in nforroity with generally acceded accounting ur irtdples requires estimates and assumptions to be made that affect lhe reported annou nl of assets and tia h .lilies on the dele of the find riCia I S talem an ts and the reported amou nls d revenues and expenses during the reporting pa nod. Ddfarerces between actual resu ts and estimates are recognized In the period in which the resulls ere knewnfmaterialized.

L. Borrowing Costs :

I merest and other borrowing costs attributable to qualifying assets are capital sad Other interest and burrowing ou sts am charged tp revenue

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Mar 31, 2013

A. Basis of Presentation

The accounts have been prepared using historical cost convention and on the basis of a going concern, with revenues recognized and expenses accounted for on accrual (including for committed obligations), in accordance with the accounting standard prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government, in consultation with the National Advisory Committee on Accounting Standards, to the extent applicable. Insurance and other claims are accounted for, as and when admitted by the appropriate authorities.

B. Fixed Assets

a) Capitalized at acquisition cost including directly attributable cost such as freight insurance and specific installation charge for bringing the asset to its working condition for use

b) Expenditure relating to existing fixed assets is added to the cost of the assets where it increases the performance/life of the assets as assessed earlier.

C. Depreciation

Depreciation is charged on Plant and Machineries as per Written down Value method and on the Other Assets as per the Straight Line Method from the date of installation/use asset at the rates and in the manner prescribed under schedule X1V to the Companies Act, 1956.

D. Investments

Long Term Investments are stated at cost less provision, if any, for decline other than temporary in their value.

E. Valuation of Inventories

Inventories are valued as under : Raw Materials, Work in Progress, Trading Goods and Finished Goods are valued at lower of Cost or Net Realizable Value using First in First Out Method.

F. Recognition of Incomes:

a) Revenues/Incomes are generally accounted on accrual, as they are earned.

b) Sale of goods is recognized on transfer of property in goods or on transfer of significant risks and reward of ownership to the buyer, which is generally on dispatch of goods.

G. Contingencies and Events occurring after the date of Balance Sheet

a) Accounting for contingencies (gains and losses) arising out of contractual obligations are made only on the basis of mutual acceptance.

b) Where material, events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts.

H. Foreign Currency Transactions

Transactions in foreign currency are recorded at the rates of exchange in force at the time of occurrence of the transactions. Upon realisation, the resultant gain/loss is adjusted in the respective account.

I. Prior Period Items

Prior Period and Extra Ordinary items and Changes in Accounting Policies, having a material bearing on the financial affairs of the Company are disclosed separately along with the amount by which any item In the financial statements is affected by such change wherever same is available

J. Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

K. Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known/materialized.

L. Borrowing Costs:

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to revenue

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Mar 31, 2012

(A) Basis of Presentation

The accounts have been prepared using historical cost convention and on the basis of a going concern, with revenues recognized and expenses accounted for on accrual (including for committed obligations), in accordance with the accounting standard prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government, in consultation with the National Advisory Committee on Accounting Standards, to the extent applicable. Insurance and other claims are accounted for, as and when admitted by the appropriate authorities.

Where changes in presentation are made, comparative figures for the previous year are regrouped accordingly.

(B) Fixed Assets

(a) Capitalized at acquisition cost including directly attributable cost such as freight insurance and specific installation charge for bringing the asset to its working condition for use

(b) Expenditure relating to existing fixed assets is added to the cost of the assets where it increases the performance/life of the assets as assessed earlier.

(C) Depreciation

Depreciation is charged on Plant and Machineries as per Written down Value method and on the Other Assets as per the Straight Line Method from the date of installation/use asset at the rates and in the manner prescribed under schedule X1V to the Companies Act, 1956.

(D) Investments

Long Term Investments are stated at cost less provision, if any, for decline other than temporary in their value.

(E) Valuation of Inventories

Inventories are valued as under :

Raw Materials, Work in Progress, Trading Goods and Finished Goods are valued at lower of Cost or Net Realizable Value using First in First Out Method.

(F) Recognition of Incomes:

(a) Revenues/Incomes are generally accounted on accrual, as they are earned.

(b) Sale of goods is recognized on transfer of property in goods or on transfer of significant risks and reward of ownership to the buyer, which is generally on dispatch of goods.

(G) Contingencies and Events Occurring After the Date of Balance Sheet

Accounting for contingencies (gains and losses) arising out of contractual obligations are made only on the basis of mutual acceptance.

Where material, events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts.

(H) Foreign Currency Transactions

Transactions in foreign currency are recorded at the rates of exchange in force at the time of occurrence of the transactions. Upon realisation, the resultant gain/loss is adjusted in the respective account.

(I) Payments made under VRS Scheme

Payments made under Voluntary Retirement Scheme, are mortised over a period of 5 Years commencing from the year of payment.

(J) Prior Period Items

Prior Period and Extra Ordinary items and Changes in Accounting Policies, having a material bearing on the financial affairs of the Company are disclosed separately along with the amount by which any item In the financial statements is affected by such change wherever same is available

(K) Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

(L) Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known/materialized.

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Mar 31, 2010

(A) Basis of Presentation

The accounts have been prepared using historical cost convention and on the basis of a going concern, with revenues recognised and expenses accounted for on accrual, including for committed obligations. Where changes in presentation are made, comparative figures for the previous year have been regrouped accordingly.

(B) Fixed Assets

(a) Capitalized at acquisition cost including directly attributable cost such as freight insurance and specific installation charge for bringing the asset to its working condition for use.

(b) Expenditure relating to existing fixed assets is added to the cost of the assets where it increases the performance/life of the assets as assessed earlier.

(C) Depreciation

Depreciation is charged on Plant and Machineries as per Written Down Value method and on the Other Assets as per the Straight Line Method from the date of installation/use asset at the rates and in the manner prescribed under schedule X1V to the Companies Act, 1956.

(D) Investments

Long Term Investments are stated at cost less provision, if any, for decline other than temporary in their value.

(E) Valuation of Inventories

Inventories are valued as under :

(a) Raw Materials, Work in Progress, Trading Goods and Finished Goods are valued at lower of Cost or Net Realisable Value using First in First Out Method.

(b) Stores and Spares, Machinery Parts and Packing Materials are valued at cost using First in First out method.

(F) Sales

Sales are inclusive of Excise duty and exclusive of Sales Tax, VAT if any.

(G) Contingencies and Events Occurring After the Date of Balance Sheet

Accounting for contingencies (gains and losses) arising out of contractual obligations are made only on the basis of mutual acceptance.

Where material, events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts.

(H) Benefits to Workmen

Gratuity and encashment of earned privilege leaves are the retirement benefits available to the employees when they leave the job. Liabilities in respect of such benefits as on the last day of the year under report have been determined on the basis of actuarial valuation and have been provided in the books of accounts.

(I) Foreign Currency Transactions

Transactions in foreign currency are recorded at the rates of exchange in force at the time of occurrence of the transactions. Upon realisation, the resultant gain/loss are adjusted in the respective account.

(J) Payments made under VRS Scheme

Payments made under Voluntary Retirement Scheme, are amortized over a period of 5 Years commencing from the year of payment.

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Mar 31, 2009

(A) Basis of Presentation

The accounts have been prepared using historical cost convention and on the basis of a going concern, with revenues recognised and expenses accounted for on accrual, in eluding for committed obligations.

Where changes in presentation are made, comparative figures for the previous year have been regrouped accordingly.

(B) Fixed Assets

(a) Capitalized at acquisition cost including directly attributable cost such as freight insurance and specific installation charge for bringing the asset to its working condition for use.

(b) Expenditure relating to existing fixed assets is added to the cost of the assets where it increases the performance/life of the assets as assessed earlier.

(C) Depreciation

Depreciation is charged on Plant and Machineries as per Written Down Value method and on the Other Assets as per the Straight Line Method from the date of installation/use asset at the rates and in the manner prescribed under schedule X1V to the Companies Act, 1956.

(D) Investments

Long Term Investments are stated at cost less provision, if any, for decline other than temporary in their value.

(E) Valuation of Inventories

Inventories are valued as under:

(a) Raw Materials, Work in Progress, Trading Goods and Finished Goods are valued at lower of Cost or Net Realisable Value using First in First Out Method.

(b) Stores and Spares, Machinery Parts and Packing Materials are valued at cost using First in First out method.

(F) Sales

Sales are inclusive of Excise duty and exclusive of Sales Tax, VAT if any.

(G) Contingencies and Events Occurring After the Date of Balance Sheet

Accounting for contingencies (gains and losses) arising out of contractual obligations are made only on the basis of mutual acceptance.

Where material, events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts.

H) Benefits to Workmen

Gratuity and encashment of earned privilege leaves are the retirement benefits avail able to the employees when they leave the job. Liabilities in respect of such benefits as on the last day of the year under report have been determined on the basis of actuarial valuation and have been provided in the books of accounts.

(J) Payments made under VRS Scheme

Payments made under Voluntary Retirement Scheme, are amortised over a period of 5 Years commencing from the year of payment.