GNA Axles Ltd. कंपली की लेखा नीति

Mar 31, 2025

II. SIGNIFICANT ACCOUNTING POLICIES

This note provides a list of the significant accounting
policies adopted in the preparation of these financial
statements. These policies have been consistently
applied to all the periods presented, unless otherwise
stated.

11.1 Basis of Preparation

(i) Compliance with Ind AS

This financial statements comply in all
material aspects with Indian Accounting
Standards (Ind. AS ) notified under Section
133 of the Companies Act, 2013 (the Act)
Companies (Indian Accounting Standard)
Rules. 2015 and other reliant provision of
the Act.

(ii) Historical cost convention

The financial statements have been
prepared on an accrual basis and under the
historical cost convention.

(iii) Classification of asset and liabilities

The classification of assets and liabilities into
current and non-current, whereverapplicable,
are based on normal operating cycles of
business activities of the Company, which is
twelve months.

11.2 Summary of significant Accounting Policies

a) Property, plant and Equipment

Freehold land is carried at historical cost. All
other items of Property, plant and equipment
are shown at cost, less accumulated
depreciation and impairment, if any. The
cost of an item of property, plant and
equipment comprises its cost of acquisition
inclusive of inward freight, import duties,
and other non refundable taxes or levies
and any cost directly attributable to the
acquisition/construction of those items: any

trade discounts and rebates are deducted in
arriving at the cost of acquisition.
Subsequent costs are included in the
asset''s carrying amount or recognised
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 of the item can
be measure reliably. All other repairs and
maintenance are charged to statements of
profit or loss during the reporting period in
which they are incurred.

b) Depreciation on tangible fixed assets

Depreciation on tangible fixed assets is
provided using the Written down value
Method as per rate prescribed by Companies
Act.

c) Revenue Recognition

Revenue is measured at the fair value of
the consideration received or receivable.
Gross Sales are Net of returns, Claims,
and Discount. The Company recognises
Revenue when amount of revenue can be
measured reliably and it is probable that
the economic benefits associated with
transaction will flow to the entity.

Interest Income is accounted on accrual
basis and Fixed deposit interest is accounted
as per statement/documents issued by
bank.

d) Inventories

Inventories are valued as follows

a) Stock of Raw : At Purchase

Material & Stores price plus Direct

Expenses

b) Stock of work in : At Estimated cost

Progress price

c) Stock of Finished : At cost or net

Goods realisable value

whichever is less

e) Insurance and other claims

Revenue in respect of claims is recognised
when no significant uncertainty exists with
regard to the amount to be realised and
ultimate collection thereof.

f) Tax Expenses

Current income tax is measured at the
amount expected to be paid to the income

tax authorities in accordance with the
income-tax Act, 1961 enacted in India.
Deferred Income tax assets and liabilities
are measured using tax rates and tax laws
that have been enacted or substantively
enacted by the Balance Sheet date and are
expected to apply to taxable income in the
years in which those temporary differences
are expected to be recovered or settled.
The effect of changes in tax rates on
deferred income tax assets and liabilities
is recognised as income or expense in the
period that includes the enactment or the
substantive enactment date. A deferred
income tax assets is recognised to the
extent that it is probable that future taxable
profit will be available against which the
deductible temporary differences and tax
losses can be utilised. The company offsets
current tax assets and current tax liabilities
where it has a legally enforceable right to
set-off the recognised amounts and where
it intends either to settle on a net basis or
to realise the assets and settle the liability
simultaneously.

g) Earning per Share

Basic earnings per share is calculated
by dividing the net profit for the year
attributable to equity shareholders by
the weighted average number of equity
shares outstanding during the period. The
weighted average number of equity shares
outstanding during the period is adjusted for
events of bonus issue: bonus element in a
rights issue to existing shareholders: share
split: and reverse share split (consolidation
of shares).

h) Impairment of assets

At each balance sheet date an assessment
is made whether any indication exists that
an assets has been impaired. If any such
indication exists, an impairment loss i.e the
amount by which the carrying amount of an
assets exceeds its recoverable amount is
provided in the books of accounts.

i) Borrowing Costs

Borrowing cost that is attributable to
acquisition or construction of a qualifying
asset is capitalised as part of cost of
such assets. Qualifying assets is one that

necessarily takes substantial period of time
to get ready for its intended use. All other
borrowing cost is recognised as expenses in
the period in which they are incurred.

j) Cash and Cash Equivalents

For the purpose of presentation in the
statement of cash flown, cash & cash
equivalents includes cash in hand, cash at
bank and demand deposits with banks with
an original maturity of three months or less
which are subject to an in significant risk of
change in value.

---

Mar 31, 2024

II. Significant Accounting Policies:

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the periods presented, unless otherwise stated.

II. 1 Basis of Preparation:

(i) Compliance with Ind AS

This financial statements comply in all material aspects with Indian Accounting Standards (Ind. AS ) notified under Section 133 of the Companies Act, 2013 (the Act) Companies (Indian Accounting Standard) Rules. 2015 and other reliant provision of the Act.

(ii) Historical cost convention

The financial statements have been prepared on an accrual basis and under the historical cost convention.

(iii) Classification of asset and liabilities

The classification of assets and liabilities into current and non-current, wherever applicable, are based on normal operating cycles of business activities of the Company, which is twelve months.

II. 2 Summary of significant Accounting Policies:

a) Property, plant and Equipment:

Freehold land is carried at historical cost. All other items of Property, plant and equipment are shown at cost, less accumulated depreciation and impairment, if any. The cost of an item of property, plant and equipment comprises its cost of acquisition inclusive of inward freight, import duties, and other non refundable taxes or levies and any cost directly attributable to the acquisition/ construction of those items: any trade

discounts and rebates are deducted in arriving at the cost of acquisition. Subsequent costs are included in the asset''s carrying amount or recognised 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 of the item can be measure reliably. All other repairs and maintenance are charged to statements of profit or loss during the reporting period in which they are incurred.

b) Depreciation on tangible fixed assets.

Depreciation on tangible fixed assets is provided using the Written down value Method as per rate prescribed by Companies Act.

c) Revenue Recognition:

Revenue is measured at the fair value of the consideration received or receivable. Gross Sales are Net of returns, Claims, and Discount. The Company recognises Revenue when amount of revenue can be measured reliably and it is probable that the economic benefits associated with transaction will flow to the entity.

Interest Income is accounted on accrual basis and Fixed deposit interest is accounted as per statement/documents issued by bank.

d) Inventories

Inventories are valued as follows:

a) Stock of Raw : At Purchase

Material & Stores price plus Direct

Expenses

b) Stock of work in : At Estimated cost

Progress price

c) Stock of Finished : At cost or net

Goods realisable value

whichever is less

e) Insurance and other claims

Revenue in respect of claims is recognised when no significant uncertainty exists with regard to the amount to be realised and ultimate collection thereof.

f) Tax Expenses

Current income tax is measured at the amount expected to be paid to the income tax authorities in accordance with the income-tax Act, 1961 enacted in India. Deferred Income

tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognised as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax assets is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised. The Company offsets current tax assets and current tax liabilities where it has a legally enforceable right to set-off the recognised amounts and where it intends either to settle on a net basis or to realise the assets and settle the liability simultaneously.

g) Earning per Share

Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue: bonus element in a rights issue to existing shareholders: share split: and reverse share split (consolidation of shares).

h) Impairment of assets

At each balance sheet date an assessment is made whether any indication exists that an assets has been impaired. If any such indication exists, an impairment loss i.e the amount by which the carrying amount of an assets exceeds its recoverable amount is provided in the books of accounts.

i) Borrowing Costs:

Borrowing cost that is attributable to acquisition or construction of a qualifying asset is capitalised as part of cost of such assets. Qualifying assets is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing cost is recognised as expenses in the period in which they are incurred.

j) Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flown, cash & cash equivalents includes cash in hand, cash at bank and demand deposits with banks with an original maturity of three months or less which are subject to an in significant risk of change in value.

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Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

This note provides a list of the significant accounting
policies adopted in the preparation of these financial
statements. These policies have been consistently
applied to all the periods presented, unless otherwise
stated.

II. 1 Basis of Preparation:

(i) Compliance with Ind AS

This financial statements comply in all
material aspects with Indian Accounting
Standards (Ind. AS ) notified under Section
133 of the Companies Act, 2013 (the Act)
Companies (Indian Accounting Standard)
Rules. 2015 and other reliant provision of the
Act.

(ii) Historical cost convention

The financial statements have been prepared
on an accrual basis and under the historical
cost convention.

(iii) Classification of asset and liabilities

The classification of assets and liabilities
into current and non-current, wherever
applicable, are based on normal operating
cycles of business activities of the Company,
which is twelve months.

II. 2 Summary of significant Accounting Policies:
a) Property, plant and Equipment:

Freehold land is carried at historical cost. All
other items of Property, plant and equipment
are shown at cost, less accumulated
depreciation and impairment, if any. The cost
of an item of property, plant and equipment
comprises its cost of acquisition inclusive
of inward freight, import duties, and other
non refundable taxes or levies and any
cost directly attributable to the acquisition/

construction of those items: any trade
discounts and rebates are deducted in
arriving at the cost of acquisition.
Subsequent costs are included in the asset''s
carrying amount or recognised 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 of the item can be measure reliably. All
other repairs and maintenance are charged
to statements of profit or loss during the
reporting period in which they are incurred.

b) Depreciation on tangible fixed assets.

Depreciation on tangible fixed assets is
provided using the Written down value
Method as per rate prescribed by Companies
Act.

c) Revenue Recognition:

Revenue is measured at the fair value of
the consideration received or receivable.
Gross Sales are Net of returns, Claims, and
Discount. The Company recognises Revenue
when amount of revenue can be measured
reliably and it is probable that the economic
benefits associated with transaction will flow
to the entity.

Interest Income is accounted on accrual
basis and Fixed deposit interest is accounted
as per statement/documents issued by bank.

d) Inventories

Inventories are valued as follows:

a) Stock of Raw : At Purchase price

Material & Stores plus Direct Expenses

b) Stock of work in : At estimated cost

Progress price

c) Stock of : At cost or net

Finished Goods realisable value

whichever is less

e) Insurance and other claims

Revenue in respect of claims is recognised
when no significant uncertainty exists with
regard to the amount to be realised and
ultimate collection thereof.

f) Tax Expenses

Current income tax is measured at the
amount expected to be paid to the income tax
authorities in accordance with the income-tax

Act, 1961 enacted in India. Deferred Income
tax assets and liabilities are measured using
tax rates and tax laws that have been enacted
or substantively enacted by the Balance
Sheet date and are expected to apply to
taxable income in the years in which those
temporary differences are expected to be
recovered or settled. The effect of changes in
tax rates on deferred income tax assets and
liabilities is recognised as income or expense
in the period that includes the enactment or
the substantive enactment date. A deferred
income tax assets is recognised to the extent
that it is probable that future taxable profit
will be available against which the deductible
temporary differences and tax losses can
be utilised. The Company offsets current
tax assets and current tax liabilities where it
has a legally enforceable right to set-off the
recognised amounts and where it intends
either to settle on a net basis or to realise the
assets and settle the liability simultaneously.

g) Earning per Share

Basic earnings per share is calculated by
dividing the net profit for the year attributable
to equity shareholders by the weighted
average number of equity shares outstanding
during the period. The weighted average
number of equity shares outstanding during
the period is adjusted for events of bonus
issue: bonus element in a rights issue to
existing shareholders: share split: and
reverse share split (consolidation of shares).

h) Impairment of assets

At each balance sheet date an assessment
is made whether any indication exists that
an assets has been impaired. If any such
indication exists, an impairment loss i.e the
amount by which the carrying amount of an
assets exceeds its recoverable amount is
provided in the books of accounts.

i) Borrowing Costs:

Borrowing cost that is attributable to
acquisition or construction of a qualifying
asset is capitalised as part of cost of
such assets. Qualifying assets is one that
necessarily takes substantial period of time
to get ready for its intended use. All other
borrowing cost is recognised as expenses in
the period in which they are incurred.

j) Cash and Cash Equivalents

For the purpose of presentation in the
statement of cash flown, cash & cash
equivalents includes cash in hand, cash at
bank and demand deposits with banks with
an original maturity of three months or less
which are subject to an in significant risk of
change in value.

---

Mar 31, 2018

I. CORPORATE INFORMATION

GNA Axles Ltd. ("the Company”) is a Company established in 1993. The Company manufactures auto components for the four-wheeler industry, primary product being Rear Axles, Shafts, Spindles & other Automobiles Components for sale in domestic and foreign market. The Company has manufacturing location in the state of Punjab Unit -I at Mehtiana & Unit-II at VPO Gulabgarh Jattan (Phagwara-Hoshiarpur Road).

II. SIGNIFICANT ACCOUNTING POLICIES:

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the periods presented, unless otherwise stated.

II.1 Basis of Preparation:

(i) Compliance with Ind AS

This financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) Companies (Indian Accounting Standard) Rules. 2015] and other reliant provision of the Act. These financial statements are the first financial statements under Ind AS.

The financial statements up to year ended 31st March, 2017 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.

(ii) Historical cost convention

The financial statements have been prepared on an accrual basis and under the historical cost convention .

(iii) Classification of asset and liabilities

The classification of assets and liabilities into current and non-current, wherever applicable, are based on normal operating cycles of business activities of the Company, which is twelve months.

II.2 Summary of significant Accounting Policies:

a) Property, plant and Equipment:

Freehold land is carried at historical cost. All other items of Property, plant and equipment are shown at cost, less accumulated depreciation and impairment, if any. The cost of an item of property, plant and equipment comprises its cost of acquisition inclusive of inward freight, import duties, and other non-refundable taxes or levies and any cost directly attributable to the acquisition/construction of those items: any trade discounts and rebates are deducted in arriving at the cost of acquisition.

Subsequent costs are included in the asset''s carrying amount 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 of the item can be measure reliably. All other repairs and maintenance are charged to statements of profit or loss during the reporting period in which they are incurred.

Gain or losses arising on disposal of property, plant and equipment are recognized in profit or loss.

Transaction to Ind AS

On transition to Ind AS the company has elected to continue with the carrying value of all its property, plant and equipment recognized as at 1st April, 2016 measured as per the previous GAAP (Indian GAAP) and use that carrying value as the deemed cost of property, plant and equipment.

b) Capital Work in Progress

Property, plant and equipment under construction are disclosed as capital work in progress. On transition to Ind AS the Company has elected to continue with the carrying value of its capital work in progress recognized as at 1st April, 2016 measured as per the previous GAAP (Indian GAAP and use that carrying value as the deemed cost of the capital work in progress.

c) Depreciation on tangible fixed assets.

Depreciation on tangible fixed assets is provided using the Written down value Method as per rate prescribed by Co. Law.

d) Revenue Recognition:

Revenue is measured at the fair value of the consideration received or receivable. Gross Sales are Net of returns, Claims, and Discount and inclusive of Excise Duty etc. up to 30th June, 2017. GST has been implemented w.e.f. 1st July, 2017 and as per AS-18 the revenue for the year ending 31.03.2018 is reported net of GST.

The Company recognizes Revenue when amount of revenue can be measured reliably and it is probable that the economic benefits associated with transaction will flow to the entity.

Interest Income is accounted on accrual basis and Fixed deposit interest is accounted as per statement/documents issued by bank.

e) Inventories

Inventories are valued as follows:

a) Stock of Raw : At Purchase price Material & Stores plus Direct Expenses

b) Stock of work in : At estimated cost Progress price

c) Stock of Finished : At cost or net Goods realizable value whichever is less

f) Insurance and other claims

Revenue in respect of claims is recognized when no significant uncertainty exists with regard to the amount to be realized and ultimate collection thereof.

g) Tax Expenses

Current income tax is measured at the amount expected to be paid to the income tax authorities in accordance with the income-tax Act, 1961 enacted in India. Deferred Income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax assets is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. The company offsets current tax assets and current tax liabilities where it has a legally enforceable right to set-off the recognized amounts and where it intends either to settle on a net basis or to realize the assets and settle the liability simultaneously.

h) Earning per Share

Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue: bonus element in a rights issue to existing shareholders: share split: and reverse share split (consolidation of shares).

I) Impairment of assets

At each balance sheet date an assessment is made whether any indication exists that an assets has been impaired. If any such indication exists, an impairment loss i.e. the amount by which the carrying amount of an assets exceeds its recoverable amount is provided in the books of accounts

j) Borrowing Costs:

Borrowing cost that is attributable to acquisition or construction of a qualifying asset is capitalized as part of cost of such assets. Qualifying assets is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing cost is recognized as expenses in the period in which they are incurred.

k) Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flow, cash & cash equivalents includes cash in hand, cash at bank and demand deposits with banks with an original maturity of three months or less which are subject to an in significant risk of change in value.

l) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can reliably estimate. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period.

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent. The company does not recognize a contingent liability but discloses its existence in financial statements

m) Cash flow statement

Cash flow are reported using the indirect method, whereby profit for the period 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 flow from operating investing and financing activities of the Company are segregated.

n) Foreign Current Transactions

The functional currency of the company is Indian Rupee. These financial statements are presented in Indian Rupee.

Transactions and Balances

The foreign current transactions are recorded, on initial recognition in the functional currency, by applying foreign current amount the spot exchange rate between the functional currency and the foreign current at the date of transaction.

The foreign current monetary items are translated using closing rate at the end of each reporting period. Non-monetary items that are measured in terms of historical cost in a foreign currency shall be translated using the exchange rate at the date of transaction. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements shall be recognized in profit or loss in the period in which they arise.

A. Terms/rights attached to Equity Shares

The Company has only one class of equity shares having a par value of '' 10/- per share. Each holder of equity shares is entitled to one vote per share in the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be proportion to the number of equity shares held by the shareholders.

B. There are Nil No. of shares ( Previous Year.NIL) in respect of shares in our Company held by its holding or its ultimate holding company including shares held by or by subsidary or associates of holding company or ultimate holding company in aggregate.

C. There are NIL No. of shares ( Previous year NIL ) reserved for issue under option and contracts/commitment for the sale of shares/dis-investment including the terms and amounts.

D. There are no securities ( Previous year NIL) convertible into Equity shares

E. There are no calls un-paid (Previous year NIL) including calls un-paid by Directors and officers as on balance sheet date.

12.1 The above non-current borrowings are secured by mortgage created on all the immovable assets of the Company both present and future and hypothecation of all moveable assets including movable machinery, tools and accessories and other movables, both present and future subject to charges created in favour of the Bankers for securing the working capital limits and the personal guarantee of directors.

12.2 Current Borrowings includes Cash Credit Limit, O/D Limit & PCFC from Consortium Banks which are secured by hypothecation of entire present and future tangible current assets of the Company as well as second charges on the entire present and future fixed assets of company and personal guarantee of directors. Unsecured Loan is taken as working capital limit from Bajaj Finance Ltd.

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Mar 31, 2017

Corporate information

GNA Axles Limited ("The Company") is a Company established in 1993.The Company manufactures auto components for the four-wheeler industry, primary product being Rear Axles, Shafts, Spindles & other Automobiles Components for sale in domestic market and foreign market. The Company has manufacturing location in the state of Punjab Unit -I at Mehtiana & Unit-II at VPO Gulabgarh Jattan (Phagwara-Hoshiarpur Road).

Significant Accounting Policies:

A) Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards as prescribed u/s 133 of the Companies Act 2013("Act") read with rule 7 of the Companies (Accounts) rules.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

B) Fixed Assets

a) Tangible Fixed Assets & Capital Work In Progress

Tangible fixed assets are stated at cost, net of accumulated depreciation & capital work in progress comprises of the cost of fixed assets that are not ready for their intended use at the reporting date.

b. Depreciation on tangible fixed assets.

Depreciation on tangible fixed assets is provided using the Written down value Method as per rate prescribed by Co. Law.

D. Revenue Recognition

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer. The Company collects sales taxes and excise duty on behalf of the government and, therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from revenue.

E. Interest

Interest income is recognized on Accrual basis & as per the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

F. Exchange differences

a) Exchange differences arising on long-term foreign currency monetary items related to acquisition of a fixed asset are capitalized.

b) All other exchange differences are recognized as income or as expenses in the period in which they arise.

G. Tax Expenses

Current income tax is measured at the amount expected to be paid to the income tax authorities in accordance with the income-tax Act, 1961 enacted in India. Deferred tax resulting from timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period is accounted for using the tax rates and loss that are enacted or substantively enacted as on the balance sheet date.

H. Retirement & Other Benefits

a) Gratuity: - The Company has a defined benefit gratuity plan. Ever employee who has completed 5 years are more of service is entitled to gratuity on terms not less favorable than the Provisions of "The Payment of Gratuity Act 1972." The scheme is funded with LIC of India.

b) Leave Encashment: - The Company also extends benefit of leave encashment to employees, on yearly basis or accumulated leave at the time of retirement. This is an unfunded plan.

c) Provident Fund: - Eligible employees receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employees and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee''s salary.

d) Superannuation Fund: - Certain employees are also participants in the superannuation plan which is a defined contribution plan. The plans is funded with L.I.C of India.

I) Impairment of assets

At each balance sheet date an assessment is made whether any indication exists that an assets has been impaired. If any such indication exists, an impairment loss i.e. the amount by which the carrying amount of an assets exceeds its recoverable amount is provided in the books of accounts. There is no impairment of assets.

J) Borrowing Costs

All borrowing costs are recognized as an expanse in the statement of profit and loss.

K) Earning per equity share (EPS)

Earnings per share is calculated by dividing profit for the year attributable to equity shareholders by no. of equity shares outstanding during the year.

L) Cash Flow Statement

Cash flow are reported using the indirect method, whereby profit 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 from operating, investing and financing activities of the Company are segregated.

M) Previous Years Figures have been regrouped rearranged wherever consider necessary.

1.3 Terms/rights attached to Equity Shares

The Company has only one class of equity shares having a par value of '' 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

3.1 The above mentioned borrowings are secured by mortgage created on all the immovable assets of the Company both present and future and hypothecation of all moveable assets including movable machinery, tools and accessories and other movables, both present and future (except book debts) subject to charges created in favour of the Bankers for securing the working capital limits and the personal guarantee of directors.

4.1 Shot Term Borrowings includes Cash Credit Limit, O/D Limit & PCFC from

Consortium Banks which are secured by hypothecation of entire present & future tangible current assets of the Company _as well as second charges on the entire present and future fixed assets of Company and personal guarantee of directors.

5.1_The information as required to be disclosed under the micro, small and medium enterprises has not been received so far so the disclosure requirement for balance outstanding, interest paid/payable as at the yearend as required by the _Act has not been given_

12.1 Inventories are valued as under:-

Raw Material & Stores : At purchase price plus Direct Expenses Work-in-Progress : At estimated cost price _Finished Goods_: At estimated cost or market price whichever is less_

20.1 Disclosure under Accounting Standard 15 (Revised)

As per Accounting Standard (AS-15) (Revised 2005) "Employee Benefits", the disclosures of Employee benefits as defined

(b) Every employee who has completed 5 years or more of service is entitled to gratuity on terms not less favorable than the provisions of "The payment of Gratuity Act,1972". The scheme is funded with LIC of India.

(c) The Company also extends benefit of Leave Encashment to employees on yearly basis or accumulated leave at the time of retirement. This is unfunded Plan

(a)_Superannuation Fund:- Certain employees are also participants in the superannuation plan which is a defined _contribution plan. The plans is funded with L.I.C of India._