Shivagrico Implements Ltd. कंपली की लेखा नीति

Mar 31, 2026

1. GENERAL INFORMATION

Shivagrico Implements Ltd. is a Company limited by shares, incorporated and domiciled in India having its

Registered Office at A-1 Ground Floor, Adinath Apartment,281, Tardeo Road, Mumbai 400007. The

Company primarily deals in Rolling and Forging of agricultural implements and other products.

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION. USE OF ESTIMATES AND JUDGEMENTS

AND SIGNIFICANT ACCOUNTING POLICIES :

I. Statement of Compliance

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

II. Basis of Preparation

a) a) The Financial Statements of the Company are prepared in accordance with Indian Accounting Standards (Ind AS), under the historical cost convention on the accrual basis as per the provisions of the Companies Act, 2013 (“the Act”), except for :

• Certain Financial Assets and Liabilities - measured at fair value;

• Defined Benefit Plans - plan assets are measured at fair value.

III. Use of Estimates and Judgements

In preparing the Financial Statements in conformity with accounting principles and standards generally accepted in India, management is required to make estimates, judgements and assumptions that affect reported amounts of assets and liabilities and the disclosure of contingent assets and contingent liabilities as at the date of Financial Statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to such estimates is recognized in the period in which the same is determined and in any future periods that may be determined to be affected. The Company has based its assumptions and estimates on parameters available when the Financial Statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the estimates and

assumptions when they occur. The key assumptions concerning the future and other key sources of estimation that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in the subsequent financial year/years, are described below.

Critical accounting estimates and judgments

• Useful lives of property, plant and equipment and intangible assets: The Company reviews the useful life of property, plant and equipment and intangible assets as at the end of each reporting period. This reassessment may result in change in depreciation and amortization expense in future periods.

• Impairment testing: Property, plant and equipment and intangible assets that are subject to

depreciation and amortization are tested for impairment when events occur or changes in

circumstances indicate that the recoverable amount of the asset is less than its carrying value. The calculation involves use of significant estimates and assumptions.

• Income Taxes: Deferred tax assets are recognized to the extent that it is regarded as probable that

deductible temporary differences can be realized. The Company estimates deferred tax assets and liabilities based on current tax laws and rates and in certain cases, business plans, including management''s expectations regarding the manner and timing of recovery of the related assets. Changes in these estimates may affect the amount of deferred tax liabilities or the valuation of deferred tax assets and thereby the tax charge/credit in the Statement of Profit or Loss. Provision for tax liabilities require judgements on the interpretation of tax legislation, developments in case laws and the potential outcomes of tax audits and appeals which may be subject to significant

uncertainty. Therefore the actual tax liabilities may vary from expectations resulting in adjustments to provisions, the valuation of deferred tax assets, cash tax settlements and therefore the tax charge/credit in the Statement of Profit or Loss.

• Fair value measurement of financial instruments: The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. This involves significant judgements in selection of a method in making assumptions that are mainly based on market conditions existing at the Balance Sheet date and in identifying the most appropriate estimate of fair value when a wide range of fair value measurements are possible.

• Litigation: From time to time, the Company is subject to legal proceedings, the ultimate outcome of each being always subject to many uncertainties inherent in litigation. A provision for litigation is made when it is considered probable that a liability will crystalize and the amount of the liability can be reasonably estimated. Significant judgement is made when evaluating, among other factors, the probability of unfavorable outcome and the ability to make a reasonable estimate of the amount of potential loss. Litigation provisions are reviewed at each accounting period and revisions made for the changes in facts and circumstances.

• Defined benefit plans: The cost of the defined benefit plans and the present value of the defined benefit obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each Balance Sheet date.

IV. Material Accounting Policies

Following is the list of the significant accounting policies adopted in the preparation of these standalone Financial Statements of Shivagrico Implements Ltd. These policies have been consistently applied to all the periods presented, unless otherwise stated.

a. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ noncurrent classification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised within twelve months after the reporting period; or

• Cash or cash equivalents 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 treated as current when:

• It is expected to be settled in normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period; or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents.

b. Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date. Fair value is the price that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their best economic interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of un-observable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

• Level 2 —Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

• Level 3 —Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

Trade receivables, trade payables, cash and cash equivalents, other bank balances and other current financial assets and liabilities are generally considered to approximate their carrying amounts largely due to the short-term maturities of these instruments.

This note summarizes accounting policy for a fair value. Other fair value related disclosures are given in the relevant notes.

c. Revenue recognition

The Company earns revenue primarily from sale of products and sale of services. 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, regardless of when the

payment is being made. Revenue is measured at the fair value of the consideration

received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. Revenue is measured

net of returns and discounts.

Sale of products

Revenues are recognized when the Company satisfies the performance obligation by transferring a promised product to a customer. A product is transferred when the customer obtains control of that product, which is at the point of transfer of custody to customers where usually the title is passed, provided that the contract price is fixed or determinable and collectability of the receivable is reasonably assured. Revenue in respect of export sale is recognized on the date of bill of lading. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.

Sale of services

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognized by reference to the stage of completion of the transaction at the end of reporting period.

Interest income

Revenue from interest is recognized on accrual basis and determined by contractual rate of interest.

Duty drawback and other incentives

Duty Drawback and Other Incentives are accounted for as and when all the conditions are satisfied under the relevant regulations for making the claims and are measurable on a reliable basis and it is probable that the economic benefits will flow to the company.

d. Transactions in foreign currency

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. All monetary assets and liabilities as at the Balance sheet date are restated at the applicable exchange rates prevailing on that date. All exchange differences arising on transactions are charged to Profit & Loss Account.

e. Tax expenses

(i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted, by the end of the reporting period.

(ii) Deferred tax

Deferred Income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the separate Financial Statements.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and Deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other Comprehensive Income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

f. Leases

The Company assesses whether a contract is or contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognises a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and leases of low value assets. For these short-term and leases of low value assets, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently re-measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.

A lease liability is re-measured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine lease payments. The re-measurement normally also adjusts the leased assets.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

g. Impairment of assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset''s carrying amount exceeds its recoverable amount. Such impairment loss is recognized in the Statement of Profit and Loss. Assets that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period. In case of such reversal, the carrying amount of the asset is increased so as not to exceed the carrying amount that would have been determined had there been no impairment loss. Such reversal of impairment loss is recognised in the Statement of Profit and Loss.

h. Cash and cash equivalents and other bank balances

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash in hand, cash at bank and other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Other Bank Balances include balances other than those classified as cash and cash equivalents and deposits with banks that are restricted for withdrawal and usage.

i. Trade receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment. Trade receivables are generally considered approximate their carrying amount largely due to their short-term maturity period.

j. Inventories

Inventories are valued at the lower of cost and net realizable value. Costs incurred in bringing each product to its present location and condition are accounted for as follows:

• Raw materials: • Cost of raw materials used for manufacture is determined on first in first out basis which includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition.

• Finished goods (Self Manufactured) and work in progress: • Cost includes cost of direct materials and a proportion of labour and other manufacturing overheads based on normal operating capacity. Cost is determined on first in first out basis.

• Finished goods (Acquired for Trading): • Cost includes cost of purchase and other

costs incurred in bringing the inventories to their present location and condition. Cost

is determined on first in first out basis.

• Stores, spares & other consumables: • Cost includes cost of purchase and other

costs incurred in bringing the inventories to their present location and condition. Cost

is determined on first in first out basis.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. Materials and other supplies held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. However, when there has been a decline in the price of materials and it is estimated that the cost of the finished products will exceed

net realizable value, the materials are written down to net realizable value.

k. Property, Plant and Equipment

Freehold land is carried at historical cost. Other items of property, plant and equipment are stated at historical cost less depreciation. Historical Cost represents direct expenses incurred on acquisition or construction of the assets and the attributable share of indirect expenses and interest.

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 Company and such cost can be measured reliably. The

carrying amount of any component accounted for as a separate asset is derecognized

when replaced. All repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Items of Capital work-in-progress that are not yet ready for their intended use on the reporting date are carried at cost being direct cost, related expenses and attributable interest.

l. Depreciation methods, estimated useful lives and residual value

Depreciation on property, plant and equipment other than freehold land is provided on ‘Written Down Value Method'' based on useful life as prescribed under Schedule II of the Companies Act 2013.

• Freehold Land is not depreciated

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in the Statement of Profit and Loss.

m. Intangible assets

Intangible Assets are stated at cost less accumulated amortization and net of impairments, if any. An intangible asset is recognized if it is probable that the expected future economic benefits that are attributable to the asset will flow to the Company and its cost can be measured reliably. Intangible assets are amortized on straight-line basis over their estimated useful lives.An intangible asset is derecognized on disposal, or when no future economic benefits are expected to arise from continued use of the asset. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in the Statement of Profit and Loss when the asset is derecognized.

n. Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of respective assets during the period of time that is required to complete and prepare the asset for its intended use. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Other borrowing costs are expensed in the period in which they are incurred.

o. Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are presented as

current liabilities unless payment is not due within 12 months after the reporting period.

They are recognised initially at their fair value and subsequently measured at amortized cost using the effective interest method. Trade payables is generally considered approximate their carrying amount largely due to the short-term maturity of this instrument.

p. Provisions, contingent liabilities and contingent assets

Provisions are recognized when there is a present legal or statutory obligation or constructive obligation as a result of past events and where it is probable that there will be

outflow of resources to settle the obligation and when a reliable estimate of the amount of

the obligation can be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.

Contingent assets where it is probable that future economic benefits will flow to the Company are not recognized but disclosed in the Financial Statements. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, and it is recognized as an asset.

q. Employee benefits

(i) Short-term obligations

The costs of all short-term employee benefits (that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service) are recognised during the period in which the employee renders the related services. The accruals for employee entitlements of benefits such as salaries, bonuses and annual leave represent the amount which the Company has a present obligation to pay as a result of the employees'' services and the obligation can be measured reliably. The accruals have been calculated at undiscounted amounts based on current salary levels at the Balance Sheet date.

(ii) Post-employment obligations

The Company operates the following post-employment schemes:

Gratuity Fund -

The Company makes annual contributions to gratuity funds administered by the Life Insurance Corporation of India. The gratuity plan provides for lump sum payment to vested employees on retirement, death or termination of employment of an amount based on the respective employee''s last drawn salary and tenure of employment. The Company accounts for the net present value of its obligations for gratuity benefits, based on an independent actuarial valuation, determined on the basis of the projected unit credit method, carried out as at the Balance Sheet date. The difference between the obligation determined as aforesaid and the fair value of the plan assets is reported as a liability or asset as at the reporting date. Actuarial gains and losses are recognised immediately in the Other Comprehensive Income and reflected in retained earnings and will not be reclassified to the Statement of Profit and Loss.

Provident Fund

The Company pays provident fund contributions to a fund administered by Government Provident Fund Authority. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.

r. Earnings per share

Earnings per share (EPS) Basic EPS is computed by dividing the profit or loss attributable to the equity shareholders by the weighted average number of Ordinary shares outstanding during the year. Diluted EPS is computed by adjusting the profit or loss attributable to the ordinary equity shareholders and the weighted average number of ordinary equity shares, for the effects of all dilutive potential Ordinary shares.

s. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

A. Financial assets

(i) Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

(ii) Subsequent measurement

For subsequent measurement, the Company classifies a financial asset in accordance with the below criteria. The Company''s business model for managing the financial asset and the contractual cash flow characteristics of the financial asset.

For purposes of subsequent measurement, financial assets are classified as under:

• Financial Assets at amortized cost

Financial assets are subsequently measured at amortized cost if these financial assets are held within a business model whose objective is to hold these assets 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.

Such financial assets are subsequently measured at amortized cost using the effective interest method.

Effective interest method: The effective interest method is a method of calculating the amortized cost of a financial instrument and of allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts future cash receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter period.

• Financial Assets at fair value through other comprehensive income (FVTOCI)

Financial assets are measured at fair value through other comprehensive income if these financial assets are 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.

• Financial Assets at fair value through profit or loss (FVTPL)

Financial asset not measured at amortized cost or at fair value through other comprehensive income is carried at fair value through the statement of profit and loss.

(iii) Impairment of financial assets

Loss allowance for expected credit losses is recognized for financial assets measured at amortized cost and fair value through other comprehensive income. The Company follows ‘simplified approach'' for recognition of impairment loss allowance on Trade receivables that do not constitute a financing transaction as permitted by Ind AS 109 Financial instrument, which requires expected lifetime losses to be recognized from initial recognition of the receivables.

For financial assets whose credit risk has not significantly increased since initial recognition, loss allowance equal to twelve months expected credit losses is recognized. Loss allowance equal to the lifetime expected credit losses is recognized if the credit risk on the financial instruments has significantly increased since initial recognition.

(iv) De-recognition of financial assets

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognized. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognized.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognized if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognized to the extent of continuing involvement in the financial asset.

B. Financial Liabilities

i Initial recognition and measurement:

The Company recognizes a financial liability in its Balance Sheet when it becomes party to the contractual provisions of the instrument. All financial liabilities are recognized initially at fair value minus, in the case of financial liabilities not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial liability.

ii Subsequent measurement:

All financial liabilities of the Company are subsequently measured at amortized cost using the effective interest method.

iii De-recognition

A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

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Mar 31, 2025

IV. Material Accounting Policies

Following is the list of the significant accounting policies adopted in the preparation of these
standalone Financial Statements of Shivagrico Implements Ltd. These policies have been
consistently applied to all the periods presented, unless otherwise stated.

a. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non¬
current classification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised within twelve months after the reporting period; or

• Cash or cash equivalents 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 treated as current when:

• It is expected to be settled in normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period; or

• There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their
realization in cash and cash equivalents.

b. Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date. Fair
value is the price that would be received on sale of an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date. The fair
value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset
or liability.

The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market
participants act in their best economic interest.

A fair value measurement of a non-financial asset takes into account a market participant''s
ability to generate economic benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and
for which sufficient data are available to measure fair value, maximizing the use of
relevant observable inputs and minimizing the use of un-observable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorized within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets
or liabilities.

• Level 2 —Valuation techniques for which the lowest level input that is significant to the
fair value measurement is directly or indirectly observable.

• Level 3 —Valuation techniques for which the lowest level input that is significant to the
fair value measurement is unobservable.

For the purpose of fair value disclosures, the Company has determined classes of
assets and liabilities on the basis of the nature, characteristics and risks of the asset
or liability and the level of the fair value hierarchy as explained above.

Trade receivables, trade payables, cash and cash equivalents, other bank balances and
other current financial assets and liabilities are generally considered to approximate their
carrying amounts largely due to the short-term maturities of these instruments.

This note summarizes accounting policy for a fair value. Other fair value related
disclosures are given in the relevant notes.

c. Revenue recognition

The Company earns revenue primarily from sale of products and sale of services.
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, regardless of when the

payment is being made. Revenue is measured at the fair value of the consideration

received or receivable, taking into account contractually defined terms of payment and
excluding taxes or duties collected on behalf of the government. Revenue is measured

net of returns and discounts.

Sale of products

Revenues are recognized when the Company satisfies the performance obligation by transferring
a promised product to a customer. A product is transferred when the customer obtains control of
that product, which is at the point of transfer of custody to customers where usually the title is
passed, provided that the contract price is fixed or determinable and collectability of the
receivable is reasonably assured. Revenue in respect of export sale is recognized on the date of
bill of lading. Revenue from the sale of goods is measured at the fair value of the consideration
received or receivable, net of returns and allowances, trade discounts and volume rebates.

Sale of services

When the outcome of a transaction involving the rendering of services can be estimated reliably,
revenue associated with the transaction shall be recognized by reference to the stage of
completion of the transaction at the end of reporting period.

Interest income

Revenue from interest is recognized on accrual basis and determined by contractual rate of
interest.

Duty drawback and other incentives

Duty Drawback and Other Incentives are accounted for as and when all the conditions are
satisfied under the relevant regulations for making the claims and are measurable on a reliable
basis and it is probable that the economic benefits will flow to the company.

d. Transactions in foreign currency

Foreign currency transactions are recorded in the reporting currency, by applying to the
foreign currency amount the exchange rate between the reporting currency and the foreign
currency at the date of the transaction. All monetary assets and liabilities as at the
Balance sheet date are restated at the applicable exchange rates prevailing on that date.
All exchange differences arising on transactions are charged to Profit & Loss Account.

e. Tax expenses

(i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs
from ‘profit before tax'' as reported in the statement of profit and loss because of items
of income or expense that are taxable or deductible in other years and items that are
never taxable or deductible. The Company''s current tax is calculated using tax rates
that have been enacted or substantively enacted, by the end of the reporting period.

(ii) Deferred tax

Deferred Income tax is provided in full, using the liability method, on temporary
differences arising between the tax bases of assets and liabilities and their carrying
amounts in the separate Financial Statements.

Deferred tax assets are recognized for all deductible temporary differences and unused
tax losses only if it is probable that future taxable amounts will be available to utilize
those temporary differences and losses. Deferred tax assets and liabilities are offset
when there is a legally enforceable right to offset current tax assets and liabilities and
when the deferred tax balances relate to the same taxation authority. Current tax
assets and tax liabilities are offset where the entity has a legally enforceable right to
offset and intends either to settle on a net basis, or to realize the asset and settle
the liability simultaneously.

Current and Deferred tax is recognized in profit or loss, except to the extent that it
relates to items recognized in other Comprehensive Income or directly in equity. In this
case, the tax is also recognized in other comprehensive income or directly in equity,
respectively.

f. Leases

The Company assesses whether a contract is or contains a lease, at inception of a
contract. A contract is, or contains, a lease if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use of an identified asset, the Company
assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of the asset
through the period of the lease and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognises a right-of-use
asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it

is a lessee, except for leases with a term of twelve months or less (short-term leases)
and leases of low value assets. For these short-term and leases of low value assets,
the Company recognises the lease payments as an operating expense on a straight¬
line basis over the term of the lease.

The right-of-use assets are initially recognised at cost, which comprises the initial
amount of the lease liability adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct costs less any lease
incentives. They are subsequently measured at cost less accumulated depreciation

and impairment losses, if any. Right-of-use assets are depreciated from the
commencement date on a straight-line basis over the shorter of the lease term and
useful life of the underlying asset.

The lease liability is initially measured at the present value of the future lease
payments. The lease payments are discounted using the interest rate implicit in the
lease or, if not readily determinable, using the incremental borrowing rates. The lease
liability is subsequently re-measured by increasing the carrying amount to reflect
interest on the lease liability, reducing the carrying amount to reflect the lease

payments made.

A lease liability is re-measured upon the occurrence of certain events such as a

change in the lease term or a change in an index or rate used to determine lease

payments. The re-measurement normally also adjusts the leased assets.

Lease liability and ROU asset have been separately presented in the Balance Sheet
and lease payments have been classified as financing cash flows.

g. Impairment of assets

Assets are tested for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is recognized for the amount
by which the asset''s carrying amount exceeds its recoverable amount. Such impairment loss is
recognized in the Statement of Profit and Loss. Assets that suffered impairment are reviewed for
possible reversal of the impairment at the end of each reporting period. In case of such reversal,
the carrying amount of the asset is increased so as not to exceed the carrying amount that
would have been determined had there been no impairment loss. Such reversal of impairment
loss is recognised in the Statement of Profit and Loss.

h. Cash and cash equivalents and other bank balances

For the purpose of presentation in the statement of cash flows, cash and cash equivalents
includes cash in hand, cash at bank and other short-term, highly liquid investments with
original maturities of three months or less that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value.

Other Bank Balances include balances other than those classified as cash and cash
equivalents and deposits with banks that are restricted for withdrawal and usage.

i. Trade receivables

Trade receivables are recognized initially at fair value and subsequently measured at
amortized cost using the effective interest method, less provision for impairment. Trade
receivables are generally considered approximate their carrying amount largely due to their
short-term maturity period.

j. Inventories

Inventories are valued at the lower of cost and net realizable value. Costs incurred in
bringing each product to its present location and condition are accounted for as follows:

• Raw materials: • Cost of raw materials used for manufacture is determined on first
in first out basis which includes cost of purchase and other costs incurred in bringing
the inventories to their present location and condition.

• Finished goods (Self Manufactured) and work in progress: • Cost includes cost
of direct materials and a proportion of labour and other manufacturing overheads based
on normal operating capacity. Cost is determined on first in first out basis.

• Finished goods (Acquired for Trading): • Cost includes cost of purchase and other

costs incurred in bringing the inventories to their present location and condition. Cost

is determined on first in first out basis.

• Stores, spares & other consumables: • Cost includes cost of purchase and other

costs incurred in bringing the inventories to their present location and condition. Cost

is determined on first in first out basis.

Net realizable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and the estimated costs necessary to make the
sale. Materials and other supplies held for use in the production of inventories are not
written down below cost if the finished products in which they will be incorporated are
expected to be sold at or above cost. However, when there has been a decline in the
price of materials and it is estimated that the cost of the finished products will exceed

net realizable value, the materials are written down to net realizable value.

k. Property, Plant and Equipment

Freehold land is carried at historical cost. Other items of property, plant and equipment are
stated at historical cost less depreciation. Historical Cost represents direct expenses
incurred on acquisition or construction of the assets and the attributable share of indirect
expenses and interest.

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 Company and such cost can be measured reliably. The

carrying amount of any component accounted for as a separate asset is derecognized

when replaced. All repairs and maintenance are charged to profit or loss during the
reporting period in which they are incurred.

Items of Capital work-in-progress that are not yet ready for their intended use on the reporting date are
carried at cost being direct cost, related expenses and attributable interest.

l. Depreciation methods, estimated useful lives and residual value

Depreciation on property, plant and equipment other than freehold land is provided on
‘Written Down Value Method'' based on useful life as prescribed under Schedule II of the
Companies Act 2013.

• Freehold Land is not depreciated

An item of property, plant and equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain or
loss arising on the disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sales proceeds and the carrying amount of the
asset and is recognized in the Statement of Profit and Loss.

m. Intangible assets

Intangible Assets are stated at cost less accumulated amortization and net of impairments,
if any. An intangible asset is recognized if it is probable that the expected future economic
benefits that are attributable to the asset will flow to the Company and its cost can be
measured reliably. Intangible assets are amortized on straight-line basis over their
estimated useful lives.An intangible asset is derecognized on disposal, or when no future
economic benefits are expected to arise from continued use of the asset. Gains or losses
arising from derecognition of an intangible asset, measured as the difference between the
net disposal proceeds and the carrying amount of the asset, are recognized in the
Statement of Profit and Loss when the asset is derecognized.

n. Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as part of the cost of
respective assets during the period of time that is required to complete and prepare the
asset for its intended use. Qualifying assets are assets that necessarily take a substantial
period of time to get ready for their intended use or sale. Other borrowing costs are
expensed in the period in which they are incurred.

o. Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to
the end of financial year which are unpaid. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months after the reporting period.
They are recognised initially at their fair value and subsequently measured at amortized
cost using the effective interest method. Trade payables is generally considered
approximate their carrying amount largely due to the short-term maturity of this instrument.

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Mar 31, 2024

IV. Material Accounting Policies

Following is the list of the significant accounting policies adopted in the preparation of these
standalone Financial Statements of Shivagrico Implements Ltd. These policies have been
consistently applied to all the periods presented, unless otherwise stated.

a. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non¬
current classification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised within twelve months after the reporting period; or

• Cash or cash equivalents 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 treated as current when:

• It is expected to be settled in normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period; or

• There is no unconditional right to defer the settlement of the liability for at least twelve

months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their
realization in cash and cash equivalents.

b. Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date. Fair
value is the price that would be received on sale of an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer
the liability takes place either:

• In the principal market for the asset or liability, or

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

The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market
participants act in their best economic interest.

A fair value measurement of a non-financial asset takes into account a market participant''s
ability to generate economic benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and
for which sufficient data are available to measure fair value, maximizing the use of
relevant observable inputs and minimizing the use of un-observable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorized within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or
liabilities

• Level 2 —Valuation techniques for which the lowest level input that is significant to the
fair value measurement is directly or indirectly observable

• Level 3 —Valuation techniques for which the lowest level input that is significant to the
fair value measurement is unobservable.

For the purpose of fair value disclosures, the Company has determined classes of
assets and liabilities on the basis of the nature, characteristics and risks of the asset
or liability and the level of the fair value hierarchy as explained above.

Trade receivables, trade payables, cash and cash equivalents, other bank balances and
other current financial assets and liabilities are generally considered to approximate
their carrying amounts largely due to the short-term maturities of these instruments.

This note summarizes accounting policy for a fair value. Other fair value related
disclosures are given in the relevant notes.

c. Revenue recognition

The Company earns revenue primarily from sale of products and sale of services. 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, regardless of when the payment is
being made. Revenue is measured at the fair value of the consideration received or
receivable, taking into account contractually defined terms of payment and excluding taxes
or duties collected on behalf of the government. Revenue is measured net of returns and
discounts.

Sale of products

Revenues are recognized when the Company satisfies the performance obligation by transferring a
promised product to a customer. A product is transferred when the customer obtains control of
that product, which is at the point of transfer of custody to customers where usually the title is
passed, provided that the contract price is fixed or determinable and collectability of the
receivable is reasonably assured. Revenue in respect of export sale is recognized on the date of
bill of lading. Revenue from the sale of goods is measured at the fair value of the consideration
received or receivable, net of returns and allowances, trade discounts and volume rebates.

Sale of services

When the outcome of a transaction involving the rendering of services can be estimated reliably,
revenue associated with the transaction shall be recognized by reference to the stage of
completion of the transaction at the end of reporting period.

Interest income

Revenue from interest is recognized on accrual basis and determined by contractual rate of
interest.

Duty drawback and other incentives

Duty Drawback and Other Incentives are accounted for as and when all the conditions are
satisfied under the relevant regulations for making the claims and are measurable on a reliable
basis and it is probable that the economic benefits will flow to the company.

d. Transactions in foreign currency

Foreign currency transactions are recorded in the reporting currency, by applying to the
foreign currency amount the exchange rate between the reporting currency and the foreign
currency at the date of the transaction. All monetary assets and liabilities as at the Balance
sheet date are restated at the applicable exchange rates prevailing on that date. All
exchange differences arising on transactions are charged to Profit & Loss Account.

e. Tax expenses

(i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs
from ‘profit before tax'' as reported in the statement of profit and loss because of items
of income or expense that are taxable or deductible in other years and items that are
never taxable or deductible. The Company''s current tax is calculated using tax rates
that have been enacted or substantively enacted, by the end of the reporting period.

(ii) Deferred tax

Deferred Income tax is provided in full, using the liability method, on temporary
differences arising between the tax bases of assets and liabilities and their carrying
amounts in the separate Financial Statements.

Deferred tax assets are recognized for all deductible temporary differences and unused
tax losses only if it is probable that future taxable amounts will be available to utilize
those temporary differences and losses. Deferred tax assets and liabilities are offset
when there is a legally enforceable right to offset current tax assets and liabilities and
when the deferred tax balances relate to the same taxation authority. Current tax
assets and tax liabilities are offset where the entity has a legally enforceable right to
offset and intends either to settle on a net basis, or to realize the asset and settle the
liability simultaneously.

Current and Deferred tax is recognized in profit or loss, except to the extent that it
relates to items recognized in other Comprehensive Income or directly in equity. In this
case, the tax is also recognized in other comprehensive income or directly in equity,
respectively.

f. Leases

The Company assesses whether a contract is or contains a lease, at inception of a
contract. A contract is, or contains, a lease if the contract conveys the right to control the

use of an identified asset for a period of time in exchange for consideration. To assess

whether a contract conveys the right to control the use of an identified asset, the Company
assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic benefits from use of the asset
through the period of the lease and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognises a right-of-use

asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it

is a lessee, except for leases with a term of twelve months or less (short-term leases)
and leases of low value assets. For these short-term and leases of low value assets,

the Company recognises the lease payments as an operating expense on a straight¬
line basis over the term of the lease.

The right-of-use assets are initially recognised at cost, which comprises the initial

amount of the lease liability adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct costs less any lease incentives.
They are subsequently measured at cost less accumulated depreciation and impairment
losses, if any. Right-of-use assets are depreciated from the commencement date on a
straight-line basis over the shorter of the lease term and useful life of the underlying

asset.

The lease liability is initially measured at the present value of the future lease

payments. The lease payments are discounted using the interest rate implicit in the
lease or, if not readily determinable, using the incremental borrowing rates. The lease
liability is subsequently re-measured by increasing the carrying amount to reflect

interest on the lease liability, reducing the carrying amount to reflect the lease
payments made.

A lease liability is re-measured upon the occurrence of certain events such as a
change in the lease term or a change in an index or rate used to determine lease
payments. The re-measurement normally also adjusts the leased assets.

Lease liability and ROU asset have been separately presented in the Balance Sheet
and lease payments have been classified as financing cash flows.

g. Impairment of assets

Assets are tested for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is recognized for the
amount by which the asset''s carrying amount exceeds its recoverable amount. Such
impairment loss is recognized in the Statement of Profit and Loss. Assets that suffered
impairment are reviewed for possible reversal of the impairment at the end of each reporting
period. In case of such reversal, the carrying amount of the asset is increased so as not to
exceed the carrying amount that would have been determined had there been no impairment
loss. Such reversal of impairment loss is recognised in the Statement of Profit and Loss.

h. Cash and cash equivalents and other bank balances

For the purpose of presentation in the statement of cash flows, cash and cash equivalents
includes cash in hand, cash at bank and other short-term, highly liquid investments with
original maturities of three months or less that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value.

Other Bank Balances include balances other than those classified as cash and cash
equivalents and deposits with banks that are restricted for withdrawal and usage.

i. Trade receivables

Trade receivables are recognized initially at fair value and subsequently measured at
amortized cost using the effective interest method, less provision for impairment. Trade
receivables are generally considered approximate their carrying amount largely due to their
short-term maturity period.

j. Inventories

Inventories are valued at the lower of cost and net realizable value. Costs incurred in
bringing each product to its present location and condition are accounted for as follows:

• Raw materials: Cost of raw materials used for manufacture is determined on first in
first out basis which includes cost of purchase and other costs incurred in bringing the
inventories to their present location and condition.

• Finished goods (Self Manufactured) and work in progress: Cost includes cost of
direct materials and a proportion of labour and other manufacturing overheads based on
normal operating capacity. Cost is determined on first in first out basis

• Finished goods (Acquired for Trading): Cost includes cost of purchase and other

costs incurred in bringing the inventories to their present location and condition. Cost is
determined on first in first out basis.

• Stores, spares & other consumables: Cost includes cost of purchase and other costs
incurred in bringing the inventories to their present location and condition. Cost is
determined on first in first out basis.

Net realizable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and the estimated costs necessary to make the
sale. Materials and other supplies held for use in the production of inventories are not
written down below cost if the finished products in which they will be incorporated are
expected to be sold at or above cost. However, when there has been a decline in the
price of materials and it is estimated that the cost of the finished products will exceed
net realizable value, the materials are written down to net realizable value.

k. Property, Plant and Equipment

Freehold land is carried at historical cost. Other items of property, plant and equipment are
stated at historical cost less depreciation. Historical Cost represents direct expenses
incurred on acquisition or construction of the assets and the attributable share of indirect
expenses and interest.

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 Company and such cost can be measured reliably. The carrying
amount of any component accounted for as a separate asset is derecognized when
replaced. All repairs and maintenance are charged to profit or loss during the reporting
period in which they are incurred.

Items of Capital work-in-progress that are not yet ready for their intended use on the reporting
date are carried at cost being direct cost, related expenses and attributable interest.

l. Depreciation methods, estimated useful lives and residual value

Depreciation on property, plant and equipment other than freehold land is provided on
‘Written Down Value Method'' based on useful life as prescribed under Schedule II of the
Companies Act 2013.

* Freehold Land is not depreciated

An item of property, plant and equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain or
loss arising on the disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sales proceeds and the carrying amount of the
asset and is recognized in the Statement of Profit and Loss.

m. Intangible assets

Intangible Assets are stated at cost less accumulated amortization and net of impairments,
if any. An intangible asset is recognized if it is probable that the expected future economic
benefits that are attributable to the asset will flow to the Company and its cost can be
measured reliably. Intangible assets are amortized on straight-line basis over their estimated
useful lives.An intangible asset is derecognized on disposal, or when no future economic
benefits are expected to arise from continued use of the asset. Gains or losses arising from
derecognition of an intangible asset, measured as the difference between the net disposal
proceeds and the carrying amount of the asset, are recognized in the Statement of Profit
and Loss when the asset is derecognized.

n. Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as part of the cost of
respective assets during the period of time that is required to complete and prepare the
asset for its intended use. Qualifying assets are assets that necessarily take a substantial
period of time to get ready for their intended use or sale. Other borrowing costs are
expensed in the period in which they are incurred.

o. Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to
the end of financial year which are unpaid. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months after the reporting period.
They are recognised initially at their fair value and subsequently measured at amortized cost
using the effective interest method. Trade payables is generally considered approximate their
carrying amount largely due to the short-term maturity of this instrument.

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Mar 31, 2015

A) Fixed assets

(i) Leasehold Land is valued at cost.

(ii) All other fixed assets are stated at cost of acquisition or construction less depreciation.

Capital work-in- Progress :

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

b) Depreciation

(i) Leasehold & Freehold land is not depreciated.

(ii) Depreciation on all other tangible fixed assets is provided on written down value method based on the useful lives of the respective assets in accordance with Schedule II to the Companies Act, 2013 and the guidelines issued by the Institute of Chartered Accountants of India. In respect of the assets, whose useful lives have expired, scrap value at 5% of the respective gross value has been accounted for as carrying cost and the balance amount has been transfered to retained earnings (general reserve). Extra shift depreciation wherever applicable are calculated on actual shift basis in respect of each mill/unit.

(iii) Cost of computer software is amortised over a period of five years

c) Long Term Investments

Long Term Investments are carried at cost.

d) Inventories

Inventories are valued as under

i. Raw Materials : At lower of cost or market value

ii. Finished Goods : At lower of cost or market value

iii. Semi Finished Goods : At lower of cost or market value

iv. Stores & Spares : At cost

v. Other Consumables : At cost

e) Employee benefits

i. Short Term Employee Benefits

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

ii. Post-employment Benefits

(i) Defined Contribution Plans : The Company's state governed provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans. The contribution paid / payable under the schemes is recognized during the period in which the employee renders the related service.

(ii) Defined Benefit Plans : The Employees Gratuity Fund Scheme managed by trust is the company's defined benefit plan. Wherever applicable, the present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plan is based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date.

Actuarial gains and losses will de recognized immediately in the Profit and Loss Account.

In case of funded plans, the fair value of the plan assets is reduced form the gross obligation under the defined benefit plan to recognize the obligation on the net basis.

Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the curtailment or settlement occurs. Past service cost is recognized as expense on a straight-line basis over the average period until the benefits become vested.

f) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale. All other borrowing costs are charged to revenue.

g) Revenue Recognition

(i) Revenue in respect of local sale of products is recognised at the point of despatch to customers.

(ii) Revenue in respect of export sale is recognised on the date of bill of lading.

(iii) Local sales comprise of sale value of goods, excise duty and is net of trade discounts and returns.

(iv) Revenue in respect of conversion charges is recognised on accrual basis.

h) Provision for Taxation

i. Current Tax: Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

ii. Deferred Tax: The differences that result between the profit offered for income tax and the profit as per the financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

i) Foreign Exchange Transactions

Transactions relating to exports are translated into Indian Rupees at the rates prevailing at the time of negotiation of export documents by Bank. Foreign currency transactions and forward exchange contracts used to hedge fluctuations in currency are initially recognised at the spot rate on the date of the transaction /contract. Monetary assets and liabilities relating to foreign currency transactions and forward exchange contracts remaining unsettled at the end of the year are translated at year end rates . The difference in translation and realised gains and losses on foreign exchange transactions are recognised in the profit and loss account.

j) Impairment of Assets

Impairment is ascertained at each balance sheet date in respect of the Companies fixed assets. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

k) Provisions and Contingencies

A provision is recognised when the Company has a present obligation as a result of past events and 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 their present value and are determined based on the 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. Contingent liabilities are disclosed in the Notes.

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Mar 31, 2014

(i) Leasehold Land is valued at cost.

(ii) All other fixed assets are stated at cost of acquisition or construction less depreciation.

b) Depreciation

(i) Leasehold & Freehold land is not depreciated. XIV to the Companies Act, 1956.

(ii) Depreciation on all other fixed assets is provided on written down value method in accordance with Schedule XIV to the Companies Act, 1956. Extra shift depreciation wherever applicable is calculated on actual shift basis in respect of each mill/unit.

c) Long Term Investments

Long Term Investments are carried at cost.

d) Inventories

Inventories are valued as under

i. Raw Materials : At lower of cost or market value

ii. Finished Goods : At lower of cost or market value

iii. Semi Finished Goods : At lower of cost or market value

iv. Stores & Spares : At cost

v. Other Consumables : At cost

e) Employee benefits

i. Short Term Employee Benefits

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

ii. Post-employment Benefits

(i) Defined Contribution Plans : The Company''s state governed provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans. The contribution paid / payable under the schemes is recognized during the period in which the employee renders the related service.

(ii) Defined Benefit Plans : The Employees Gratuity Fund Scheme managed by trust is the company''s defined benefit plan. Wherever applicable, the present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plan is based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date.

Actuarial gains and losses will de recognized immediately in the Profit and Loss Account.

In case of funded plans, the fair value of the plan assets is reduced form the gross obligation under the defined benefit plan to recognize the obligation on the net basis.

Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the curtailment or settlement occurs. Past service cost is recognized as expense on a straight-line basis over the average period until the benefits become vested.

f) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale. All other borrowing costs are charged to revenue.

g) Revenue Recognition

(i) Revenue in respect of local sale of products is recognised at the point of despatch to customers.

(ii) Revenue in respect of export sale is recognised on the date of bill of lading.

(iii) Local sales comprise of sale value of goods, excise duty and is net of trade discounts and returns.

(iv) Revenue in respect of conversion charges is recognised on accrual basis.

h) Provision for Taxation

i. Current Tax: Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

ii. Deferred Tax: The differences that result between the profit offered for income tax and the profit as per the financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

i) Foreign Exchange Transactions

Transactions relating to exports are translated into Indian Rupees at the rates prevailing at the time of negotiation of export documents by Bank. Foreign currency transactions and forward exchange contracts used to hedge fluctuations in currency are initially recognised at the spot rate on the date of the transaction /contract. Monetary assets and liabilities relating to foreign currency transactions and forward exchange contracts remaining unsettled at the end of the year are translated at year end rates . The difference in translation and realised gains and losses on foreign exchange transactions are recognised in the profit and loss account.

j) Impairment of Assets

Impairment is ascertained at each balance sheet date in respect of the Companies fixed assets. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

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Mar 31, 2013

A) Fixed assets

(i) Leasehold Land is valued at cost.

(ii) All other fixed assets are stated at cost of acquisition or construction less depreciation.

b) Depreciation

(i) Leasehold & Freehold land is not depreciated.XIV to the Companies Act, 1956.

(ii) Depreciation on all other fixed assets is provided on written down value method in accordance with Schedule XIV to the Companies Act, 1956. Extra shift depreciation wherever applicable is calculated on actual shift basis in respect of each mill/unit.

c) Long Term Investments

Long Term Investments are carried at cost.

d) Inventories

Inventories are valued as under

i. Raw Materials : At lower of cost or market value

ii. Finished Goods : At lower of cost or market value

iii. Semi Finished Goods : At lower of cost or market value

iv. Stores & Spares : At cost

v. Other Consumables : At cost

e) Employee benefits

i. Short Term Employee Benefits

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

ii. Post-employment Benefits

(i) Defined Contribution Plans : The Company''s state governed provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans. The contribution paid / payable under the schemes is recognized during the period in which the employee renders the related service.

(ii) Defined Benefit Plans : The Employees Gratuity Fund Scheme managed by trust is the company''s defined benefit plan. Wherever applicable, the present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plan is based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date.

Actuarial gains and losses will de recognized immediately in the Profit and Loss Account.

In case of funded plans, the fair value of the plan assets is reduced form the gross obligation under the defined benefit plan to recognize the obligation on the net basis.

Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the curtailment or settlement occurs. Past service cost is recognized as expense on a straight-line basis over the average period until the benefits become vested.

f) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale. All other borrowing costs are charged to revenue.

g) Revenue Recognition

(i) Revenue in respect of local sale of products is recognised at the point of despatch to customers.

(ii) Revenue in respect of export sale is recognised on the date of bill of lading.

(iii) Local sales comprise of sale value of goods, excise duty and is net of trade discounts and returns.

(iv) Revenue in respect of conversion charges is recognised on accrual basis.

h) Provision for Taxation

i. Current Tax: Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

ii. Deferred Tax: The differences that result between the profit offered for income tax and the profit as per the financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

i) Foreign Exchange Transactions

Transactions relating to exports are translated into Indian Rupees at the rates prevailing at the time of negotiation of export documents by Bank. Foreign currency transactions and forward exchange contracts used to hedge fluctuations in currency are initially recognised at the spot rate on the date of the transaction /contract. Monetary assets and liabilities relating to foreign currency transactions and forward exchange contracts remaining unsettled at the end of the year are translated at year end rates . The difference in translation and realised gains and losses on foreign exchange transactions are recognised in the profit and loss account.

j) Impairment of Assets

Impairment is ascertained at each balance sheet date in respect of the Companies fixed assets. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

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Mar 31, 2012

A) Fixed assets

(i) Leasehold Land is valued at cost.

(ii) All other fixed assets are stated at cost of acquisition or construction less depreciation.

b) Depreciation

(i) Leasehold & Freehold land is not depreciated.XIV to the Companies Act, 1956.

(ii) Depreciation on all other fixed assets is provided on written down value method in accordance with Schedule X!V to the Companies Act, 1956. Extra shift depreciation wherever applicable is calculated on actual shift basis in respect of each mill/unit. '

c) Long Term Investments

Long Term Investments are carried at cost.

d) Inventories

Inventories are valued as under

i. Raw Materials : At lower of cost or market value

ii. Finished Goods : At lower of cost or market value

iii. Semi Finished Goods : At lower of cost or market value

iv. Stores & Spares : At cost

v. Other Consumables : At cost

e) Employee benefits

i. Short Term Employee Benefits

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

ii Post-employment Benefits

(i) Defined Contribution Plans: The Company's state governed provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans. The contribution paid / payable under the schemes is recognized during the period in which the employee renders the related service.

(ii) Defined Benefit Plans : The Employees Gratuity Fund Scheme managed by trust is the company's defined benefit plan. Wherever applicable, the present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plan is based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date.

Actuarial gains and losses will de recognized immediately in the Profit and Loss Account.

In case of funded plans, the fair value of the plan assets is reduced form the gross obligation under the defined benefit plan to recognize the obligation on the net basis.

Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the curtailment or settlement occurs. Past service cost is recognized as expense on a straight-line basis over the average period until the benefits become vested.

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

f) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale. All other borrowing costs are charged to revenue.

g) Revenue Recognition

(i) Revenue in respect of local sale of products is recognised at the point of despatch to customers.

(ii) Revenue in respect of export sale is recognised on the date of bill of lading.

(iii) Local sales comprise of sale value of goods, excise duty and is net of trade discounts and returns.

(iv) Revenue in respect of conversion charges is recognised on accrual basis.

h) Provision for Taxation

i. Current Tax: Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

ii. Deferred Tax: The differences that result between the profit offered for income tax and the profit as per the financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date,

ii) Foreign Exchange Transactions

Transactions relating to exports are translated into Indian Rupees at the rates prevailing at the time of negotiation of export documents by Bank. Foreign currency transactions and forward exchange contracts used to hedge fluctuations in currency are initially recognised at the spot rate on the date of the transaction /contract. Monetary assets and liabilities relating to foreign currency transactions and forward exchange contracts remaining unsettled at the end of the year are translated at year end rates . The difference in translation and realised gains and losses on foreign exchange transactions are recognised in the profit and loss account.

i) Impairment of Assets

Impairment is ascertained at each balance sheet date in respect of the Companies fixed assets. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

ii. The company has only two classes of shares referred to as equity shares and cumulative redeemable preference shares having a par value of Rs.10/-. Each holder of equity shares is entitled to one vote per share.

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Mar 31, 2010

(a) Fixed Assets

(i) Leasehold Land is valued at cost.

(ii) All other fixed assets are stated at cost of acquisition or construction less depreciation. Certain assets were revalued during the financial year 1992-93 and the resultant surplus was added to the cost of the asset.

(b) Foreign Exchange Transactions

(i) Transaction in foreign currencies are recorded at exchange rates existing at the time of the transaction and exchange difference arising from foreign currency transactions are dealt in Profit & Loss Account.

(ii) Foreign currency monetary items at year end are being converted at closing rates and exchange difference are dealt with in Profit & Loss Account.

(c) Depreciation

(i) Leasehold & Freehold land is not depreciated.

(ii) Depreciation on all other fixed assets is provided on written down value method in accordance with Schedule XIV to the Companies Act, 1956. Extra shift depreciation wherever applicable is calculated on actual shift basis in respect of each mill/unit.

(d) Investments

Long term Investments are stated at cost.

(e) Inventories

(i) Finished and Semi-finished products produced and purchased by the company are carried at lower of cost or net realisable value.

(ii) Work-in-Progress is carried at lower of cost or net realisable value.

(iii) Raw materials purchased are carried at lower of cost or net realisable value and recovered materials during processes at estimated realisable value.

(iv) Stores and Spares are carried at cost.

(v) Other consumables are carried at cost.

(vi) Stocks are valued using FIFO basis.

(f) Employee Benefits

(a) Short Term Employee Benefits

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service.

(b) Post-employment Benefits

(i) Defined Contribution Plans : The Companys state governed provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans. The contribution paid / payable under the schemes is recognized during the period in which the employee renders the related service.

(ii) Defined Benefit Plans : The Employees Gratuity Fund Scheme managed by trust is the companys defined benefit plan. Wherever applicable, the present value of the obligation under such defined benefit plan is determined based on actuaial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plan is based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date.

Actuarial gains and losses will de recognized immediately in the Profit and Loss Account.

In case of funded plans, the fair value of the plan assets is reduced form the gross obligation under the defined benefit plan to recognize the obligation on the net basis.

Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the curtailment or settlement occurs. Past service cost is recognized as expense on a straight-line basis over the average period until the benefits become vested.

(g) Revenue Recognition

(i) Revenue in respect of local sale of products is recognised at the point of despatch to customers.

(ii) Revenue in respect of export sale is recognised on the date of bill of lading.

(iii) Local sales comprise of sale value of goods, excise duty and is net of trade discounts and returns.

(iv) Revenue in respect of conversion contracts is recognised on Accrual basis.

(h) Borrowing Cost

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use or sale. All other borrowing costs are charged to revenue.

(i) Provision for Taxation

(i) Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

(ii) Deferred tax :

The differences that result between the profit offered for income tax and the profit as per the financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.