Abhishek Infraventures Ltd. कंपली की लेखा नीति

Mar 31, 2025

Corporate Information:

Abhishek Infraventures Limited (“the Company”) is a listed entity incorporated in India in the year 1984. The Registered office of the company is located at 6C-B,6thFloor, Melange Tower, Sy. No 80-84 3/B7,4,5,5/A, B,6,6/A,8(P) & 17,9/A/16&25/9, Madhapur Hyderabad Rangareddy, Telangana, 500081 India. The Company is engaged in Construction and project related activity. The Shares of the company is listed in Bombay Stock Exchange.

Disclosure of Significant Accounting Policies:1. Basis for Preparation of Financial Statements:a) Compliance with Indian Accounting Standards (Ind As)

The Standalone financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under section 133 of the Companies Act, 2013 and relevant amendments rules issued thereafter.

The financial statements have been prepared on the historical cost basis except for certain instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

Accordingly, the Company has prepared these Standalone Financial Statements which comprise the Balance Sheet as at 31st March, 2025, the Statement of Profit and Loss for the year ended 31st March 2025, the Statement of Cash Flows for the year ended 31st March 2025 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 ‘Ind AS Financial Statements'' or ‘financial statements'').

These financial statements are approved by the Board of Directors on -29.05.2025.

b) Basis of Preparation of financial statements

The standalone financial statements of the company have been prepared in accordance with Indian Accounting Standards (‘Ind AS'') notified under The Companies (Indian Accounting Standards) Rules 2015 (as amended from time to time) and presentation requirements of Division II of Schedule III of companies Act, 2013. as applicable to the Standalone Financial Statements.

The standalone financial statements have been prepared on historical cost basis and consistent with previous year subject changes in accounting policies.

The Standalone financial statements are prepared in INR (Lakhs or Thousands)

Current and Non-Current Classification:

The Company presents assets and liabilities in the balance sheet based on current / non-current classification.

An asset is classified as current when it satisfies any of the following criteria:

• Expected to be realised, or is intended to be sold or consumed, the Company''s normal operating cycle.

• held primarily for the purpose of trading;

• It is expected to be realised within twelve months after the reporting date; or

• It is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

• It is expected to be settled in the Company''s normal operating cycle;

• It is held primarily for the purpose of being traded

• It is due to be settled within 12 months after the reporting date; or the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

• Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification

All other liabilities are classified as non-current liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

c) Use of estimates and judgment

The preparation of the financial statements in conformity with Ind AS, management has made 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:
S.no	Name of the estimate	Note No.	Remarks
1	Fair value of unlisted equity securities	Note No. 1.9	The Company has investment in unlisted equity shares in SBT Energies Private Limited
2	Goodwill impairment	Not applicable	No Goodwill
3	Useful life of intangible asset	Not Applicable	No Intangible Assets
4	Defined benefit obligation	Note No. 1.16	No Long-Term Provisions provided
5	Measurement of contingent liabilities and contingent purchase consideration in a business combination	Note No. 1. 23	Contingent transactions are recognized based on happening contingent event. No contingent liabilities for the report
6	Current tax expense and current tax payable	Note No. 1.27	As per the Ind AS.12
7	Deferred tax assets for carried forward tax losses	Note No. 1.27	As per the Ind AS.12
8	Impairment of financial assets	Note No. 1.4	As per Ind AS 16

1. Significant accounting policies:

A. summary of the significant accounting policies applied in the preparation of the financial statements is as given below. These accounting policies have been applied consistently to all the periods presented in the financial statements.

1.1 Ind AS 105: Non-Current Assets held for Sale or Discontinued Operations:

This standard specifies accounting for assets held for sale, and the presentation and disclosure for discontinued operations:

(a) Assets that meet the criteria to be classified as held for sale to be measured at the lower of carrying amount and fair value less cost to sell, and depreciation on such assets to cease; and

(b) Assets that meet the criteria to be classified as held for sale to be presented separately in the balance sheet and the results of discontinued operations to be presented separately in the statement of profit and loss.

S.no	Particulars of Disclosures	As at 31st March 2025 (Rs.)	As at 31st March 2024 (Rs.)
1	A Description of Non-Current Asset (Disposal group)
2	a description of the facts and circumstances of the sale, or leading to the expected disposal, and the expected manner and timing of that disposal	-	-
3	the gain or loss recognized in accordance with paragraphs 20- 22 and, if not separately presented i n the statement of profit and loss, the caption in the statement of profit and loss that includes that gain or loss	-	-

The books of accounts of the company does not carry Non-Current Assets held for Sale or Discontinued Operations during the reporting period, hence this accounting standard does not have financial impact on the financial statements of the company.

1.2 Ind AS 106: Exploration for Evolution of Mineral resources:

This standard specifies the financial reporting for the exploration for evaluation of mineral resources. In particular, this standard requires:

a. Limited improvements to existing accounting practices for exploration and evaluation of expenditures

b. Entities that recognize exploration and evaluation of assets to assess such assets for impairment in accordance with this standard and measure any impairment.

Disclosures that identify and explain the amounts in the entity''s financial statements arising from the exploration for the evaluation of mineral resources and help users of those financial statements understand the amount, timing and certainty of future cash flows from any exploration and evaluation of assets recognized.

This Ind AS 106 not applicable, the company is in the business of Construction and project related activity. Hence this Ind AS does not have any financial impact on the financial statements of the company.

1.3 Ind AS-16: Property, Plant and Equipment:

Property, Plant and Equipment are stated at cost less accumulated depreciation.

Cost of an item of property, plants and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and direct labor, any other costs directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and removing the item and restoring the site on which it is located.

Property, plant and equipment which are significant to the total cost of that item of Property Plant and Equipment and having different useful life are accounted for as separately.

Gains or losses arising from derecognition of property, plant and equipment are measured as the difference between the net disposal proceeds and carrying amount of the asset is recognized in the statement of profit or loss when the asset is derecognized.

Depreciation on Property Plant and Equipment is provided on Straight line method. Depreciation is provided based on useful life as prescribed under part C of the schedule II of the Companies act, 2013.

S.no	Asset	Use full life in Years
1	Plant and Machinery	3-60
2	Electrical Installations	2-40
3	Lab Equipment	3-60
4	Comp uters	3-10
5	Office Equipment	2-20
6	Furniture & Fixtures	3-15
7	Vehicles	5-20

Depreciation on additions (disposals) is provided on a pro-rata basis i.e., from (up to) the date on which asset is ready for use (disposed of).

The books of accounts of the company does carry Property plan and Equipment during the reporting period, and accordingly it is been treated.

Impairment

Property Plant and Equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less cost of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).

1.4 Impairment Assets (Ind AS 36)

The Company''s non-financial assets, other than deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset''s recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash inflows are grouped together into cash-generating units (CGUs). Each CGU represents the smallest group of assets that generates cash inflows that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU (or the asset).

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its estimated recoverable amount. Impairment losses are recognized in the statement of profit and loss. Impairment loss recognized in respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro rata basis.

The books of accounts of the company doesn''t carry any impairment of assets during the reporting period, hence this accounting standard does not have financial impact on the financial statements of the company.

1.5 Intangible assets (Ind AS 38):

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their estimated useful life on straight line basis.

Subsequent costs are included in assets carrying amount or recognized or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.

The residual Values, useful lives and methods of depreciation of Property Plant and Equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Gains or losses arising from derecognition of Intangible asset are measured as the difference between the net disposal proceeds and carrying amount of the asset is recognized in the statement of profit or loss when the asset is derecognized.

The books of accounts of the company doesn''t carry any intangible assets during the reporting period, hence this accounting standard does not have financial impact on the financial statements of the company.

1.6 Cash Flow Statement (Ind AS 7):

Cash flows are reported using the indirect method under Ind AS 7, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.7 Operating Cycle:

The Company has adopted its normal operating cycle as twelve months based on the nature of products and the time between the acquisition of assets for processing and their realization, for the purpose of current / non-current classification of assets and liabilities.

1.8 Capital Work in Progress

Capital Work in Progress (CWIP) includes Civil Works in Progress, Plant & Equipment under erection and Preoperative Expenditure pending allocation on the assets to be acquired/commissioned, capitalized. It also includes payments made to towards technical knowhow fee and for other General Administrative Expenses incurred for bringing the asset into existence.

1.9 Investments:

Investments are classified as Non-Current and Current investments.

Investments, which are readily realisable and are intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as non-current investments.

Current investments are carried at lower of cost and fair value. NonCurrent Investments are carried at cost less provision for other than temporary diminution, if any, in value of such investments.

1.10 Effects of changes in Foreign Rates (Ind AS 21):

Foreign currency transactions are recorded at the exchange rates prevailing on the dates when the relevant transactions took place. Exchange difference arising on settled foreign currency transactions during the year and translation of assets and liabilities at the yearend are recognized in the statement of profit and loss.

In respect of Forward contracts entered into to hedge risks associated with foreign currency fluctuation on its assets and liabilities, the premium or discount at the inception of the contract is amortized as income or expense over the period of contract. Any profit or loss arising on the cancellation or renewal of forward contracts is recognized as income or expense in the period in which such cancellation or renewal is made.

The company has not entered any foreign exchange transactions during the reporting period; hence this accounting standard does not have financial impact on the financial statements.

1.11 Borrowing Costs (Ind AS 23):

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets is substantially ready for the intended use or sale.

Investment income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets is recognized in statement of profit and loss.

Discounts or premiums and expenses on the issue of debt securities are amortized over the term of related securities are included within borrowing costs. Premiums payable on early redemptions of debt securities, in lieu of future costs, are recognized as borrowing costs.

All other borrowing costs are recognized as expenses in the period in which it is incurred.

1.12 Revenue Recognition (Ind AS 18):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

a) Sales Revenue is recognized on dispatch to customers as per the terms of the order. Gross sales are net of returns and applicable trade discounts and excluding GST billed to the customers.

b) Subsidy from Government is recognized when such subsidy has been earned by the company and it is reasonably certain that the ultimate collection will be made.

c) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head “other income” in the statement of profit and loss.

d) All other incomes are recognized based on the communications held with the parties and based on the certainty of the incomes.

1.13 Accounting for Government Grants and Disclosure of Government Assistance (Ind AS 20):Government grants:

Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received.

Government grants are recognized in the Statement of Profit and Loss on a systematic basis over the years in which the Company recognises as expenses the related costs for which the grants are intended to compensate or when performance obligations are me.

Government grants, whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets and nonmonetary grants are recognised and disclosed as ‘deferred income'' under non-current liability in the Balance Sheet and transferred to the Statement of Profit and Loss on a systematic and rational basis over the useful lives of the related assets.

The benefit of a government loan at a below-market rate of interest and effect of this favourable interest is treated as a government grant. The loan or assistance is initially recognised at fair value and the government grant is measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates and recognised to the income statement immediately on fulfillment of the performance obligations. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

1.14 Inventories (Ind AS 2):Inventories are assets:

a. Held for sale in the ordinary course of business;

b. In the process of production for such sale;

c. In the form of materials or supplies to be consumed in the production process or in the rendering of services

Net Realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

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.

• Cost of Material excludes duties and taxes which are subsequently recoverable.

• Stocks at Depots are inclusive of duty, wherever applicable, paid at the time of dispatch from Factories.

• Based on the information provided the difference between physical verification and valuation of the of inventories are charged to the profit and loss account.

1.15 Trade Receivables - Doubtful debts:

A Trade receivable represents the company''s right to an amount of consideration that is unconditional.

Provision is made in the Accounts for Debts/Advances which is in the opinion of Management are Considered doubtful of Recovery.

1.16 Retirement and other Employee Benefits:

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as expenditure, when an employee renders related service.

Gratuity liability is a defined benefit obligation and the cost of providing the benefits under this plan has not determined on the basis of actuarial valuation at each year-end.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short term employee benefit. The Company has not provided any provision for leave encashment.

1.17 Ind AS 17- Leases

A Lease is classified as a Finance Lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

Finance charges in respect of finance lease obligations are recognized as finance costs in the statement of profit and loss. In respect of operating leases for premises, which are cancellable / renewable by mutual consent on agreed terms, the aggregate lease rents payable is charged as rent in the Statement of Profit and Loss.

1.18 Insurance Claims:

Insurance Claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

1.19 Earnings per Share (Ind AS 33):

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of 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 are adjusted for the effects of all dilutive potential equity shares.

1.20 Provisions, Contingent Liabilities and Contingent Assets (Ind AS 37):

Provisions are recognised in the balance sheet when the company has a present obligation (legal or constructive) as a result of a past event, which is expected to result in an outflow of resources embodying economic benefits which can be reliably estimated. Each provision is based on the best estimate of the expenditure required to settle the present obligation at the balance sheet. Where the time value of money is material, provisions are made on a discounted basis.

Disclosure for Contingent liabilities is made when there is a possible obligation or present obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from the past events where it is either not probable that an outflow of resources embodying in economic benefits will be required to settle or a reliable estimate of amount cannot be made.

Disclosure for Contingent assets are made when there is possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. However Contingent assets are neither recognized nor disclosed in the financial statements.

1.21 Prior Period and Extraordinary and Exceptional Items:

(i) All Identifiable items of Income and Expenditure pertaining to prior period are accounted through ‘''Prior Period Items''''.

(ii) Extraordinary items are income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the enterprise and, therefore, are not expected to recur frequently or regularly. The nature and the amount of each extraordinary item be separately disclosed in the statement of profit and loss in a manner that its impact on current profit or loss can be perceived.

(iii) Exceptional items are generally non-recurring items of income and expenses within profit or loss from ordinary activities, which are of such, nature or incidence.

1.22 Financial Instruments (Ind AS 107 Financial Instruments: (Disclosures)I. Financial assets:

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition.

B. Subsequent Measurementa) Financial assets measured at amortized cost (AC)

A financial asset is measured at amortized 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.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI 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.

c) Financial assets measured at fair value through profit or loss (FVTPL)

A Financial asset which is not classified in any of above categories are measured at FVTPL e.g., investments in mutual funds. Financial assets are reclassified subsequent to their recognition, if the Company changes its business model for managing those financial assets. Changes in business model are made and applied prospectively from the reclassification date which is the first day of immediately next reporting period following the changes in business model in accordance with principles laid down under Ind AS 109 -Financial Instruments.

II. Financial Liabilities

A. Initial recognition

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

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. 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.

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Mar 31, 2024

1. Significant accounting policies:

A. summary of the significant accounting policies applied in the preparation
of the financial statements is as given below. These accounting policies
have been applied consistently to all the periods presented in the
financial statements.

1.1 Ind AS 105: Non-Current Assets held for Sale or Discontinued
Operations:

This standard specifies accounting for assets held for sale, and the
presentation and disclosure for discontinued operations:

(a) Assets that meet the criteria to be classified as held for sale to be
measured at the lower of carrying amount and fair value less cost to sell,
and depreciation on such assets to cease; and

(b) Assets that meet the criteria to be classified as held for sale to be
presented separately in the balance sheet and the results of
discontinued operations to be presented separately in the statement of
profit and loss.

The books of accounts of the company does not carry Non-Current Assets
held for Sale or Discontinued Operations during the reporting period, hence
this accounting standard does not have financial impact on the financial
statements of the company.

1.2 Ind AS 106: Exploration for Evolution of Mineral resources:

This standard specifies the financial reporting for the exploration for
evaluation of mineral resources. In particular, this standard requires:

a. Limited improvements to existing accounting practices for exploration
and evaluation of expenditures

b. Entities that recognize exploration and evaluation of assets to assess
such assets for impairment in accordance with this standard and
measure any impairment.

Disclosures that identify and explain the amounts in the entity''s financial
statements arising from the exploration for the evaluation of mineral
resources and help users of those financial statements understand the
amount, timing and certainty of future cash flows from any exploration
and evaluation of assets recognized.

This Ind AS 106 not applicable, the company is in the business of
Construction and project related activity. Hence this Ind AS does not
have any financial impact on the financial statements of the company.

1.3 Ind AS-16: Property, Plant and Equipment:

Property, Plant and Equipment are stated at cost less accumulated
depreciation.

Cost of an item of property, plants and equipment comprises its purchase
price, including import duties and non-refundable purchase taxes, after
deducting trade discounts and rebates, any directly attributable cost of
bringing the item to its working condition for its intended use and
estimated costs of dismantling and removing the item and restoring the
site on which it is located.

The cost of a self-constructed item of property, plant and equipment
comprises the cost of materials and direct labor, any other costs directly
attributable to bringing the item to working condition for its intended use,
and estimated costs of dismantling and removing the item and restoring
the site on which it is located.

Property, plant and equipment which are significant to the total cost of
that item of Property Plant and Equipment and having different useful life
are accounted for as separately.

Gains or losses arising from derecognition of property, plant and
equipment are measured as the difference between the net disposal
proceeds and carrying amount of the asset is recognized in the
statement of profit or loss when the asset is derecognized.

Depreciation on Property Plant and Equipment is provided on Straight
line method. Depreciation is provided based on useful life as prescribed
under part C of the schedule II of the Companies act, 2013.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e., from
(up to) the date on which asset is ready for use (disposed of).

The books of accounts of the company does carry Property plan and
Equipment during the reporting period, and accordingly it is been treated.

Impairment

Property Plant and Equipment are evaluated for recoverability whenever
events or changes in circumstances indicate that their carrying amount may
not be recoverable. An impairment loss is recognised for the amount by which
the asset''s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset''s fair value less cost of disposal
and value in use. For the purposes of assessing impairment, assets are
grouped at the lowest levels for which there are separately identifiable cash
inflows which are largely independent of the cash inflows from other assets or
groups of assets (cash-generating units).

1.4 Impairment Assets (Ind AS 36)

The Company''s non-financial assets, other than deferred tax assets are
reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, then the asset''s
recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash
inflows are grouped together into cash-generating units (CGUs). Each
CGU represents the smallest group of assets that generates cash inflows
that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of a CGU (or an individual asset) is the higher of
its value in use and its fair value less costs to sell. Value in use is based on
the estimated future cash flows, discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the CGU (or the asset).

An impairment loss is recognized if the carrying amount of an asset or
CGU exceeds its estimated recoverable amount. Impairment losses are
recognized in the statement of profit and loss. Impairment loss
recognized in respect of a CGU is allocated first to reduce the carrying
amount of any goodwill allocated to the CGU, and then to reduce the
carrying amounts of the other assets of the CGU (or group of CGUs) on a
pro rata basis.

The books of accounts of the company doesn''t carry any impairment of
assets during the reporting period, hence this accounting standard does
not have financial impact on the financial statements of the company.

1.5 Intangible assets (Ind AS 38):

Intangible assets are stated at cost less accumulated amortization and
impairment. Intangible assets are amortized over their estimated useful
life on straight line basis.

Subsequent costs are included in assets carrying amount or recognized
or recognized as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow
to the entity and the cost can be measured reliably.

The residual Values, useful lives and methods of depreciation of Property
Plant and Equipment are reviewed at each financial year end and
adjusted prospectively, if appropriate.

Gains or losses arising from derecognition of Intangible asset are
measured as the difference between the net disposal proceeds and
carrying amount of the asset is recognized in the statement of profit or
loss when the asset is derecognized.

The books of accounts of the company doesn''t carry any intangible
assets during the reporting period, hence this accounting standard does
not have financial impact on the financial statements of the company.

Cash flows are reported using the indirect method under Ind AS 7,
whereby profit/(loss) before extraordinary items and tax is adjusted for
the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.

Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments that
are readily convertible into known amounts of cash and which are subject
to insignificant risk of changes in value.

1.7 Operating Cycle:

The Company has adopted its normal operating cycle as twelve
months based on the nature of products and the time between the
acquisition of assets for processing and their realization, for the
purpose of current / non-current classification of assets and liabilities.

1.8 Capital Work in Progress

Capital Work in Progress (CWIP) includes Civil Works in Progress,
Plant & Equipment under erection and Preoperative Expenditure
pending allocation on the assets to be acquired/commissioned,
capitalized. It also includes payments made to towards technical
know-how fee and for other General Administrative Expenses incurred
for bringing the asset into existence.

1.9 Investments:

Investments are classified as Non-Current and Current investments.

Investments, which are readily realisable and are intended to be held
for not more than one year from the date on which such investments
are made, are classified as current investments. All other investments
are classified as non-current investments.

Current investments are carried at lower of cost and fair value. Non¬
Current Investments are carried at cost less provision for other than
temporary diminution, if any, in value of such investments.

1.10 Effects of changes in Foreign Rates (Ind AS 21):

Foreign currency transactions are recorded at the exchange rates
prevailing on the dates when the relevant transactions took place.
Exchange difference arising on settled foreign currency transactions
during the year and translation of assets and liabilities at the yearend
are recognized in the statement of profit and loss.

In respect of Forward contracts entered into to hedge risks associated
with foreign currency fluctuation on its assets and liabilities, the
premium or discount at the inception of the contract is amortized as
income or expense over the period of contract. Any profit or loss arising
on the cancellation or renewal of forward contracts is recognized as
income or expense in the period in which such cancellation or renewal
is made.

The company has not entered any foreign exchange transactions
during the reporting period; hence this accounting standard does not
have financial impact on the financial statements.

1.11 Borrowing Costs (Ind AS 23):

Borrowing costs directly attributable to the acquisition, construction or
production of qualifying assets, which are assets that necessarily take
a substantial period of time to get ready for their intended use or sale,
are added to the cost of those assets, until such time as the assets is
substantially ready for the intended use or sale.

Investment income earned on temporary investment of specific
borrowings pending their expenditure on qualifying assets is
recognized in statement of profit and loss.

Discounts or premiums and expenses on the issue of debt securities
are amortized over the term of related securities are included within
borrowing costs. Premiums payable on early redemptions of debt
securities, in lieu of future costs, are recognized as borrowing costs.

All other borrowing costs are recognized as expenses in the period in
which it is incurred.

1.12 Revenue Recognition (Ind AS 18):

Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. The following specific recognition criteria must also
be met before revenue is recognized:

a) Sales Revenue is recognized on dispatch to customers as per the
terms of the order. Gross sales are net of returns and applicable trade
discounts and excluding GST billed to the customers.

b) Subsidy from Government is recognized when such subsidy has been
earned by the company and it is reasonably certain that the ultimate
collection will be made.

c) Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head “other income” in the
statement of profit and loss.

d) All other incomes are recognized based on the communications held
with the parties and based on the certainty of the incomes.

1.13 Accounting for Government Grants and Disclosure of Government
Assistance (Ind AS 20):

Government grants:

Government grants are not recognized until there is reasonable
assurance that the Company will comply with the conditions attached
to them and that the grants will be received.

Government grants are recognized in the Statement of Profit and Loss
on a systematic basis over the years in which the Company
recognises as expenses the related costs for which the grants are
intended to compensate or when performance obligations are me.

Government grants, whose primary condition is that the Company
should purchase, construct or otherwise acquire non-current assets
and nonmonetary grants are recognised and disclosed as ‘deferred
income'' under non-current liability in the Balance Sheet and
transferred to the Statement of Profit and Loss on a systematic and
rational basis over the useful lives of the related assets.

The benefit of a government loan at a below-market rate of interest and
effect of this favourable interest is treated as a government grant. The
loan or assistance is initially recognised at fair value and the
government grant is measured as the difference between proceeds
received and the fair value of the loan based on prevailing market
interest rates and recognised to the income statement immediately
on fulfillment of the performance obligations. The loan is subsequently
measured as per the accounting policy applicable to financial
liabilities.

1.14 Inventories (Ind AS 2):

Inventories are assets:

a. Held for sale in the ordinary course of business;

b. In the process of production for such sale;

c. In the form of materials or supplies to be consumed in the production
process or in the rendering of services

Net Realisable value is the estimated selling price in the ordinary
course of business less the estimated costs of completion and the
estimated costs necessary to make the sale.

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.

• Cost of Material excludes duties and taxes which are subsequently
recoverable.

• Stocks at Depots are inclusive of duty, wherever applicable, paid at the
time of dispatch from Factories.

• Based on the information provided the difference between physical
verification and valuation of the of inventories are charged to the profit
and loss account.

1.15 Trade Receivables - Doubtful debts:

A Trade receivable represents the company''s right to an amount of
consideration that is unconditional.

Provision is made in the Accounts for Debts/Advances which is in the
opinion of Management are Considered doubtful of Recovery.

1.16 Retirement and other Employee Benefits:

Retirement benefit in the form of provident fund is a defined
contribution scheme. The Company has no obligation, other than
contribution payable to the provident fund. The Company recognizes
contribution payable to the provident fund scheme as expenditure,
when an employee renders related service.

Gratuity liability is a defined benefit obligation and the cost of providing
the benefits under this plan has not determined on the basis of
actuarial valuation at each year-end.

Accumulated leave, which is expected to be utilized within the next 12
months, is treated as short term employee benefit. The Company has
not provided any provision for leave encashment.

1.17 Ind AS 17- Leases

A Lease is classified as a Finance Lease if it transfers substantially all
the risks and rewards incidental to ownership. A lease is classified as
an operating lease if it does not transfer substantially all the risks and
rewards incidental to ownership.

Finance charges in respect of finance lease obligations are
recognized as finance costs in the statement of profit and loss. In
respect of operating leases for premises, which are cancellable /
renewable by mutual consent on agreed terms, the aggregate lease
rents payable are charged as rent in the Statement of Profit and Loss.

1.18 Insurance Claims:

Insurance Claims are accounted for on the basis of claims
admitted/expected to be admitted and to the extent that the amount
recoverable can be measured reliably and it is reasonable to expect
ultimate collection.

1.19 Earnings per Share (Ind AS 33):

Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Partly
paid equity shares are treated as a fraction of an equity share to the
extent that they are entitled to participate in dividends relative to a fully
paid equity share during the reporting period. The weighted average
number of equity shares outstanding during the period is adjusted for
events such as bonus issue, bonus element in a rights issue, share
split, and reverse share split (consolidation of 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 are
adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2014

A. Basis of preparation of Financial Statements

The accounts have been prepared on accrual basis and historical cost convention in accordance with the Generally Accepted Accounting Principles in India and the provisions of the Companies Act 1956. The accompanying financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies Accounting Standard Rules 2006 and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company and are consistent with those in the previous year.

b. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the required amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations 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.

c. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and revenue can be reliably measured.

d. Fixed Assets and Depreciation

i. Fixed Assets are stated at cost less accumulated depreciation. Cost comprises the purchase price, freight, duties, taxes and any attributable cost of bringing the asset to its working condition for its intended use.

ii. Depreciation is provided on Written Down Value method, based on useful life of the assets as estimated by the Management which coincides with rates prescribed under Schedule XIV to the Companies Act, 1956.

e. Long Term investments are carried at cost less provision for permanent diminution, if any, in value of such investments.

f. Borrowing costs:

Borrowing costs that are directly attributable to the acquisition or the construction of a qualifying asset is capitalized for the period until the asset is ready for its intended use. A qualifying asset is one that necessarily takes substantial period of time i.e more than 12 months to get ready for intended use. All other borrowing costs are charged to revenues

g. Inventories

i. Materials are valued at the lower of cost and estimated net realizable value.

Net realizable value is the estimated selling price in the ordinary course of business, reduced by the estimated costs of completion and costs to effect the sale.

h. Income Tax

i. Current tax

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.

ii. Deferred tax

Deferred income taxes is recognized, subject to the consideration of prudence on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

' 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. Where the Company has carry forward of unabsorbed depreciation or tax losses deferred tax assets are recognized only if it is virtually certain backed by convincing evidence that such deferred tax assets can be realized against future taxable profits.

i. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

j. Provisions

A Provision is recognized when the Company has a present obligation as a result of past event i.e it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

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Mar 31, 2012

During the yea 3nded 31 March 2012, the revised Schedule VI notified under the Companies Ac 956, has become applicable to the company, for preparation and presentation of s financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles allowed for preparation of financial stater 3nts. However, it has significant impact on presentation and disclosures made in the financial statements The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

* Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amour of revenues, expenses, assets and Iiabilities and the disclosure of contingent liablities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty abo these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

* Fixed Assets

Fixed Assets are stated at cost. Depreciation of fixed assets is calculated at the rates prescribed under Schedule XIV to the Companies Act, 1956.

* Depreciation

Depreciation on fixed assets in provided on straight-line method at the rates prescribe in Schedule XIV to the Company Act, 1956.

* Investment

Investments, which are readily realizable and intended to be held for not more than one year from he date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments On initial recognition, all investments are-measured at cost.

Current investments are earned in the financial statements at lower of cost and fair value determii d on an individual investment basis. Long-term investments are carried at cost On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

* Inventories

Raw materials components, stores and spares are valued at lower of cost and net realizable value Work in progress and finished goods are valued at lower of cost and net realizable value.

* Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

* Income tax

* Tax expense comprises current and deferred tax. current income-tax is measured at the amount expected to be paid to the tax author ties in accordance with the Income-tax Ac 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date,

* Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years.

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Mar 31, 2011

1, Accounting convention

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1955.

2 Revenue Recognition

All Revenue income are recognised on accrual basis of accounting.

3. Expenditure

All expenses, nave been accounted lor on accrual basis

4. Fixed Assets

Fixed Asset have been stated in the books at histories cost inclusive of all incidental expenses net of accumulated depreciation Depreciation has been provided at the rates mentioned in Schedule XlV of the Companies Act, 1955 on written down value method.

5. Investment

Investments are treated as long term investments and are stated at cost. Any decline in the value of Investments, other than a temporary decline, is recognised and charged to Profit & Loss Account.

6. Stock in trade

Stock in trade is valued at cost or net realizable value which is lower - if any.

7. Impairement if Assets:

All assets other than inventories, investments and deferred tax assets are reviewed for impairment wherever events or changes in circumstances indicate that the carrying amount may not be coveraable.

8. Contingent Liabilities;

Contingent liabilities are not provided for. and if any are disclosed separately by way of notes.