Riddhi Steel and Tube Ltd. कंपली की लेखा नीति

Mar 31, 2025

A. CORPORATE INFORMATION:

Riddhi Steel & Tube Limited (‘the Company’) is a listed limited Company incorporated in
India. The registered office of the Company is located at 83/84, Village-Kamod, Piplaj, Pirana
Road, Aslali, Ahmedabad - 382 427, Gujarat, India. The Company is engaged in activity of
manufacturing/dealing/trading of Steel and tube pipes.

B. SIGNIFICANT ACCOUNTING POLICIES

(i) . BASIS OF PREPARATION:

These financial statements have been prepared in accordance with the Generally Accepted
Accounting Principles in India (‘Indian GAAP’) to comply with the Accounting Standards
specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies
(Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The
financial statements have been prepared under the historical cost convention on accrual basis,
the Companies (Accounting Standards) Amendment Rules 2016 and the relevant provisions
of the Companies Act, 2013. Accounting Policies have been consistently applied by the
company.

(ii) . USE OF ESTIMATES:

The preparation of the financial statements in conformity with the generally accepted
accounting principles requires estimates and assumptions to be made that affect the reported
amount of assets and liabilities on the date of financial statements and the reported amount of
revenues and expenses during the reporting period. Management believes that the estimates
used in the preparation of financial statement are prudent and reasonable. Future results could
differ from these estimates. Difference between the actual results and estimates are recognized
in the period in which the results are known / materialized.

(iii) . INVENTORY:

Inventories are valued as under;

a) Finished goods at cost including production overheads.

b) Packing Materials and Work In Progress at cost.

All the duties and taxes have been considered while valuing the inventory, in accordance with
provisions of section 145A of the Income Tax Act, 1961.

(iv) . REVENUE RECOGNITION:

In appropriate circumstances, revenue is recognized on accrual basis when no significant
uncertainty as to determination or realization exists.

Sales are accounted for on gross sales including excise duty & value added Tax.

Sales are accounted on dispatch of goods from the company premises.

All the items of expenses and income are accounted on accrual basis.

(v) . PROPERTY, PLANT AND EQUIPMENTS AND DEPRECIATION:

All Property, Plant and Equipment are valued at cost less depreciation / amortization.
Tangible property, plant and equipment’s are stated at cost of acquisition includes inward
freight, non-refundable duties, taxes and other directly attributable incidental expenses, net of
Input Tax Credit and value added tax. Depreciation is provided as per the Written Down Value
Method on the basis of useful life specified in the schedule II ofthe Companies Act, 2013.

(vi) . EMPLOYEE BENEFITS:

Short - Term Employee Benefits:

Bonus:

The Company has provided for Bonus, payable to its employees, for their services rendered
during the year, as per the Company’s rules and policy, on an undiscounted basis.

(vii) . BORROWING COST:

Borrowing Cost relating to acquisition, construction of fixed assets or production of qualifying
assets which takes substantial period of time to get ready for its intended use are also included
to the extent they relate to period till such assets are ready to be put to use . Other borrowing
Cost are recognized as an expense in the period in which these are incurred.

(viii) . SEGMENT REPORTING:

In terms of AS-17 on “''Segment Reporting” the company neither has more than one
business segment nor more than one geographical segment requiring separate disclosures as
there are no more distinguishable component or economic environments of the enterprise
engaged in providing individual product or service or a group of related products or services
and the same are not subjected to different risks and returns either of business or geographical
segments.

(ix) . EARNING PER SHARE:

The basic earnings per Share is calculated by dividing the Net profit or loss for the year
attributable to Equity Shareholders by the weighted average number of equity shares
outstanding during the year. The basic and diluted EPS are same as the company has no
potential Equity shares.

(x) . RELATED PARTY TRANSACTION:

Disclosure of transactions with Related Parties, as required by “Accounting Standard 18-
Related Party Disclosure” has been set out in the Notes on Financial Statements. Related Parties
have been identified on the basis of representations made by key
managerial personnel and information available with the Company.

(xi) . TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for
the year. Deferred tax is recognized, on timing difference, being the difference between taxable
incomes and accounting income that originate in one period and are capable of reversal in one
or more subsequent periods. Where there is unabsorbed depreciation or carry forward losses,
deferred tax assets are recognized if there is virtual certainty that sufficient future taxable
income will be available against which such assets can be realized. Other deferred tax assets
are recognized only to the extent there is reasonable certainty of realization in future. Such
assets are reviewed at each Balance sheet date to reassess realization. Deferred tax assets and
liabilities are measured using the tax rates and tax laws that have been enacted or substantively
enacted by the balance sheet date.

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Mar 31, 2024

20. SIGNIFICANT ACCOUNTING POLICIES''

A. CORPORATE INFORMATION:

Riddhi Steel & Tube Limited (‘the Company'') is a listed limited Company incorporated in India. The registered office of the Company is located at 83/84, Village-Kamod, Piplaj, Pirana Road, Aslali, Ahmedabad - 382 427,

Gujarat, India. The Company is engaged in activity of manufacturing/dealing/trading of Steel and tube pipes.

B. SIGNIFICANT ACCOUNTING POLICIES

(i) .BASIS OF PREPARATION:

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (‘Indian GAAP'') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis,the Companies (Accounting Standards) Amendment Rules 2016 and the relevant provisions of the Companies Act, 2013. Accounting Policies have been consistently applied by the company.

(ii) . USE OF ESTIMATES:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Management believes that the estimates used in the preparation of financial statement are prudent and reasonable. Future results could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

(iii) . INVENTORY:

Inventories are valued as under;

a) Finished goods at cost including production overheads.

b) Packing Materials and Work In Progress at cost.

All the duties and taxes have been considered while valuing the inventory, in accordance with provisions of section 145A of the Income Tax Act, 1961.

(iv) . REVENUE RECOGNITION:

In appropriate circumstances, revenue is recognized on accrual basis when no significant uncertainty as to determination or realization exists.

Sales are accounted for on gross sales including excise duty & value added Tax. Sales are accounted on dispatch of goods from the company premises.

All the items of expenses and income are accounted on accrual basis.

(v) . PROPERTY, PLANT AND EQUIPMENTS AND DEPRECIATION:

All Property, Plant and Equipment are valued at cost less depreciation / amortization. Tangible property, plant and equipments are stated at cost of acquisition includes inward freight, non- refundable duties, taxes and other directly attributable incidental expenses, net of Input Tax Credit and value added tax. Depreciation is provided as per the Written Down Value Method on the basis of useful life specified in the schedule II of the Companies Act, 2013.

(vi) . EMPLOYEE BENEFITS:

Short - Term Employee Benefits:

Bonus:

The Company has provided for Bonus, payable to its employees, for their services rendered during the year, as per the Company''s rules and policy, on an undiscounted basis.

(vii) . BORROWING COST:

Borrowing Cost relating to acquisition, construction of fixed assets or production of qualifying assets which takes substantial period of time to get ready for its intended use are also included to the extent they relate to period till such assets are ready to be put to use . Other borrowing Cost are recognized as an expense in the period in which these are incurred.

(viii) . SEGMENT REPORTING:

In terms of AS-17 on “Segment Reporting” the company neither has more than one business segment nor more than one geographical segment requiring separate disclosures as there are no more distinguishable component or economic environments of the enterprise engaged in providing individual product or service or a group of related products or services and the same are not subjected to different risks and returns either of business or geographical segments.

(ix) . EARNING PER SHARE:

The basic earnings per Share is calculated by dividing the Net profit or loss for the year attributable to Equity Shareholders by the weighted average number of equity shares outstanding during the year. The basic and diluted EPS are same as the company has no potential Equity shares.

(x) . RELATED PARTY TRANSACTION:

Disclosure of transactions with Related Parties, as required by “Accounting Standard 18-Related Party Disclosure” has been set out in the Notes on Financial Statements. Related Parties have been identified on the basis of representations made by key

managerial personnel and information available with the Company.

(xi) . TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized if there is virtual certainty that sufficient future taxable income will be available against which such assets can be realized. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each Balance sheet date to reassess realization. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

(xii) . PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Assets are neither recognized nor disclosed in the financial statements.

21. ADDITIONAL NOTES TO FINANCIAL STATEMENTS:

21.1 CONTINGENT LIABILITIES NOT PROVIDED FOR:

There are no contingent liabilities which are not provided for.

21.2 EARNINGS PER SHARE (EPS):

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Mar 31, 2016

(i). BASIS OF PREPARATION:

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (‘Indian GAAP’] to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts] Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis. Accounting Policies have been consistently applied by the company.

(ii). USE OF ESTIMATES:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Management believes that the estimates used in the preparation of financial statement are prudent and reasonable. Future results could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

(iii). INVENTORY:

Inventories are valued as under;

a] Finished goods at cost including production overheads.

b] Packing Materials and Work In Progress at cost.

All the duties and taxes have been considered while valuing the inventory, in accordance with provisions of section 145A of the Income Tax Act, 1961.

(iv). REVENUE RECOGNITION:

In appropriate circumstances, revenue is recognized on accrual basis when no significant uncertainty as to determination or realization exists.

Sales are accounted for on gross sales including excise duty& value added Tax.

Sales are accounted on dispatch of goods from the company premises.

All the items of expenses and income are accounted on accrual basis.

(v). FIXED ASSETS AND DEPRECIATION:

Tangible fixed assets are stated at cost of acquisition includes inward freight, non-refundable duties, taxes and other directly attributable incidental expenses, net of CENVAT credit and value added tax. Depreciation is provided as per the Written Down Value Method on the basis of useful life specified in the schedule II of the Companies Act, 2013.

(vi). EMPLOYEE BENEFITS:

Short - Term Employee Benefits:

Bonus:

The Company has provided for Bonus, payable to its employees, for their services rendered during the year, as per the Company’s rules and policy, on an undiscounted basis.

(vii). BORROWING COST:

Borrowing Cost relating to acquisition, construction of fixed assets or production of qualifying assets which takes substantial period of time to get ready for its intended use are also included to the extent they relate to period till such assets are ready to be put to use . Other borrowing Cost are recognized as an expense in the period in which these are incurred.

(viii). SEGMENT REPORTING:

In terms of AS-17 on "Segment Reporting” the company neither has more than one business segment nor more than one geographical segment requiring separate disclosures as there are no more distinguishable component or economic environments of the enterprise engaged in providing individual product or service or a group of related products or services and the same are not subjected to different risks and returns either of business or geographical segments.

(ix). EARNING PER SHARE:

The basic earnings per Share is calculated by dividing the Net profit or loss for the year attributable to Equity Shareholders by the weighted average number of equity shares outstanding during the year. The basic and diluted EPS are same as the company has no potential Equity shares.

(x). TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized if there is virtual certainty that sufficient future taxable income will be available against which such assets can be realized. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each Balance sheet date to reassess realization. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

(xi). PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2015

(i). BASIS OF PREPARATION;

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles In India (''Indian GAAP’) to comply with the Accounting Standards specified under Section 133 of the Companies Act. 2013. read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis.

Accounting Policies have been consistently Applied by the company.

(ii). USE OF ESTIMATES;

''The preparation of the Financial statements in conformity with the generally accepted accounting principle requires estimates and assumptions to be made that affect the re purled amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Management believes that the estimates used in the preparation of financial statement are prudent and reasonable. Future result* could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

(iii). INVENTORY:

Inventories are valued as under;

a) Finished goods at cost including production overheads,

b] Packing Materials and Work In Progress at cost.

All the duties and taxes have been considered while valuing the inventory, in accordance with provisions of section 145 A of the Income Tax Act 1961.

(iv) REVENUE RECOGNITION:

In appropriate circumstances, revenue is recognized on accrual basis when no Significant Uncertainty as to determination or realization exists.

Sales are accounted for on gross sales including excise duty &. value added Tax,

Sales are accounted on dispatch of goods from the company premises.

All the Items of expenses and income are accounted an accrual basis.

(v). FIXED ASSETS AND DEPRECIATION:

tangible fixed assets are stated at cost of acquisition Includes Inward freight, non-refundable duties, taxes and other directly attributable incidental expenses, net of CENVAT credit and value added tax. Deprecation is provided as per the Written Down Value Method on the basis of useful life Specified in the schedule II of the Companies Act, 2013.

(vi). EMPLOYEE BENEFITS:

Short - Term Employee Benefits;

Bonus :

The Company has provided fur Funds, payable to its employees, for their services rendered during the year, as per the Company''s rules and policy, an art undiscounted basis.

(vii). BORROWING COST:

Borrowing Cost relating to acquisition, construction of fixed assets or production of qualifying assets which take substantial period of time to get ready for its intended use are also included to the ext: Lit they relate to period till such assets are ready to be put to use . Other borrowing Cost ire recognized as an expense in the period in which these are incurred.

(viii). SEGMENT REPORTING;

In terms of AS-17 on "Segment Reporting" the company neither has more than one business segment nor more than one geographical segment requiring separate disclosures as there are no more distinguishable Component or economic environments of the enterprise engaged in providing individual product or service or a group of related products or services and the same are not greeted to different risks and returns either of business or geographical segments.

(ix). EARNING PER SHAKE

The basic earnings per Share Is calculated by dividing the Net profit or loss for the year attributable to Equity Shareholders by the weighted average number of equity share* outstanding during the year. The basic and diluted EPS are same as the company has no potential Equity shares,

(x). TAXES ON INCOME:

Current tax is determined as the amount payable in respect of taxable income for the year. Deterred tax is recognized, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depredation or carry forward losses, deferred tax assets are recognized if there is virtual certainty that sufficient future taxable income will be available against which such assets can be realized. Other deferred tax assets are recognized only to the extern there is reasonable certainty of realization in future, Such assets are reviewed s'' each Balance sheet date to reassess realization. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

(xi). PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS;

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Assets are neither recognized nor disclosed m the financial statements.

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Mar 31, 2014

i. BASIS OF ACCOUNTING:

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis, except for certain financial instruments which are measured at fair value. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 2(3C) (which continues to be applied in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013) and other relevant provisions of the Companies Act, 1956.

ii USE OF ESTIMATES:

The preparation of the Financial statements in conformity with the generally accepted accounting principle requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Management believes that the estimates used in the preparation of financial statement are prudent and reasonable. Future results could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

(iii). INVENTORY:

Inventories are valued as under;

a) Finished goods at cost including production overheads,

(b) Raw materials, Packing Materials, Spares, Tools and consumable Stores at cost.

All the duties and taxes have been considered while valuing the inventory, in accordance with provisions of section 145 A of the Income Tax Act 1961.

(iv) REVENUE RECOGNITION:

(a) In appropriate circumstances, revenue is recognized on accrual basis when no Significant Uncertainty as to determination or realization exists.

(b) Sales are accounted for on gross sales including excise duty. Sales are accounted on dispatch of goods from the company premises.

(c ) All the Items of expenses and income are accounted an accrual basis, except overdue interest on invoices and certain unforeseen income, which are accounted on receipt basis.

(v). FIXED ASSETS AND DEPRECIATION:

Tangible fixed assets are stated at cost of acquisition less accumulated depreciation / amortization. The cost of acquisition includes inward freight, non-refundable duties, taxes and other directly attributable incidental expenses, net of cenvat credit and value added tax and excluding foreign exchange fluctuation gain/ loss on imported assets. Depreciation is provided on the Written down value method, at the rate specified in schedule XIV to the Companies Act, 1956.

vi. EMPLOYEE BENEFITS

(a) Long – Term Employee Benefits:

I. Provident Fund:

The Company has contributed for provident fund, contributable to its employees, for their services rendered during the year, as per the provisions of Provident Funds Act, 1952.

II. Employee State Insurance:

The Company has contributed for employee state insurance, contributable to its employees, for their services rendered during the year, as per the provisions of employees’ State Insurance Act, 1948.

(b) Termination benefits are recognized as an expenses as and when its incurred.

(vii). BORROWING COST:

Borrowing Cost relating to acquisition, construction of fixed assets or production of qualifying assets which take substantial period of time to get ready for its intended use are also included to the ext: Lit they relate to period till such assets are ready to be put to use . Other borrowing Cost ire recognized as an expense in the period in which these are incurred.

(viii). SEGMENT REPORTING;

In terms of AS-17 on "Segment Reporting" the company neither has more than one business segment nor more than one geographical segment requiring separate disclosures as there are no more distinguishable Component or economic environments of the enterprise engaged in providing individual product or service or a group of related products or services and the same are not greeted to different risks and returns either of business or geographical segments.

(ix) LEASE:

(a) Assets acquired under lease where the company has substantially all risk and rewards incidental to ownership are classified as finance leases. Such assets are capitalized at the inception of lease at the lower of fair value or the present value of minimum lease payment and a liability is created for an equipment amount. Each lease rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability of each period. There are no finance lease transactions entered in to by the company.

(b) Assets acquired on lease which a significant portion of risk and rewards incidental to ownership is retained by the lessor are classified as operating lease. Lease rental are charged to the profit and loss accounts on accrual basis.

(x) EARNING PER SHARE:

The basic earnings per Share is calculated by dividing the Net profit or loss for the year attributable to Equity Shareholders by the weighted average number of equity shares outstanding during the year. The basic and diluted EPS are same as the company has no such instruments.

xi. ACCOUNTING FOR TAXES ON INCOME :

Current income tax expense comprises taxes on income from operation in India, Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternative Tax [MAT] paid in accordance with the laws in India, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the company will pay normal income tax after the tax holiday period. Accordingly, MAT is recognized as an asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with it will fructify.

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable income and income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

In the event of unabsorbed depreciation and carry forwarded of losses, deferred tax assets are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available to realize such assets. In other situation, deferred tax assets or recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.

Advance taxes and provisions for current income taxes are presented in the Balance sheet after offsetting advance tax paid and income tax provision arising in the same tax jurisdiction for relevant taxpaying units is able to and intends to settle the assets and liabilities on a net basis.

xii. PROVISION CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

A provision is recognized when the company as a present obligation as a result of past event and it is probable that an outflow of recourses will required to settle the obligation, in respect of which reliable estimate can be made. Provision (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settled the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized in the financial statement. A contingent assets is neither recognized nor disclosed in the financial statements.

xiii. CASH AND EQUIVALENTS:

The Groups considers or highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of the months or less from the date of purchase, to be cash equivalents.

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Mar 31, 2013

(i). BASIS OF ACCOUNTING;

The financial statements are prepared under'' historical cost convention and to comply, in all material respects, with the notified accounting standards by the Companies Accounting Standard Rules, -2006 and the relevant provisions or Companies Act, 1956, Accounting Policies have been consistently applied by the company.

(ii). USE OF ESTIMATES:

The preparation of the Financial statements in conformity with the generally accepted accounting principle requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Management believes that the estimates used in the preparation of financial statement are prudent and reasonable. Future results could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

(iii). INVENTORY:

Inventories are valued as under;

a) Finished goods at cost including production overheads,

(b) Raw materials, Packing Materials, Spares, Tools and consumable Stores at cost.

All the duties and taxes have been considered while valuing the inventory, in accordance with provisions of section 145 A of the Income Tax Act 1961.

(iv) REVENUE RECOGNITION:

(a) In appropriate circumstances, revenue is recognized on accrual basis when no Significant Uncertainty as to determination or realization exists.

(b) Sales are accounted for on gross sales including excise duty. Sales are accounted on dispatch of goods from the company premises.

(c) Balance of sundry debtors, creditors and loans ft advances are subject to confirmation. Adjustments, if any, will be made at the time of reconciliation of accounts.

(d) All the items of expenses and income are accounted on accrual basis.

(v). FIXED ASSETS AND DEPRECIATION:

Fixed assets are stilted at cost of acquisition/construct ton less accumulated depreciation. Depredation on items of fixed assets are being recognized on:

(a) W.D.V. method at the rates and in the manner as prescribed In Schedule XIV to the companies Acts, 1956.

(b) Pro-rate basis on addition to/deletions from the fixed assets during the year.

(vi). TRAMS ACTIONS IN FOREIGN CURRENCIES:

No foreign currency transaction in this company.

(vii). INVESTMENTS:

There is no investment.

(viii). EMPLOYEE BENEFITS:

(a) Employees provident fund act and the payment of gratuity act, 1572 is applicable to the Company and the provision regarding above is complied with.

(b) Post - Employment Benefits:

I. Bonus Plans:

The Company has provided tor Bonus, payable to its employees, for their services rendered during the- year, as per the Company''s rules and policy, on an undiscounted basis.

(ix). BORROWING COST;

Borrowing Cost relating to acquisition, construction of fixed assets or production of qualifying assets which takes substantial period of time to get ready for its intended use are also included to the extent they relate to period till such assets are ready to be put to use . Other borrowing Cost are recognized as an expense in the period in which these are incurred.

(x). SEGMENT REPORTING:

In terms of AS-17 on ‘‘Segment Reporting” the company neither has more than one business segment nor more than one geographical segment requiring separate disclosures as there are no more distinguishable component or economic environments of the enterprise engaged in providing individual product or service or 3 group of related products or services and the same are net subjected to different risks and returns either of business or geographical segments,

(xi). OPERATING LEASE:

Assets acquired on lease where a significant portion of risk and rewards incidental to ownership is retained by the leasor are classified at operating lease. Lease rental are charged to the profit and loss account on accrual basis.

(xii). EARNING PER SHARE:

The basic earnings per Share is calculated by dividing the Net profit or loss for the year attributable to Equity Shareholders by the weighted average number of equity shares outstanding during the year. The basic and diluted EPS are same as the company has no such instruments.

(xiii). ACCOUNTING FOR TAXES ON INCOME;

Current tax is determined as the amount of tax payable In respect of taxable Income for the year. Deferred tax is recognized, on timing difference, being this difference between taxable income and accounting income that originate In one period and are capable of reversal in one or more subsequent, periods. Where there is unabsorbed depredation or carry forward losses, deferred tax assets are recognized if there is value certainty that sufficient future taxable income will be available against which such assets can be- realized- Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each Balance sheet date to reassess realization. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

(xiv). RESEARCH AND DEVELOPMENT : Nil

(xv). PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS: Nil