Sobhagya Mercantile Ltd. कंपली की लेखा नीति

Mar 31, 2025

Note 3 - Significant accounting policies
Note 3 A - Property, plant and equipment

i) Recognition and measurement

Items of property, plant and equipment, are measured at
cost (which includes capitalized borrowing costs, if any) less
accumulated depreciation and accumulated impairment
losses, if any. Cost of an item of property, plant and
equipment includes its purchase price, duties, taxes, after
deducting trade discounts and rebates, any directly
attributable cost of bringing the item to its working
condition for its intended use and estimated costs of
dismantling and removing the item and restoring the site on
which it is located.

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

If significant parts of an item of property, plant and
equipment have different useful lives, then they are
accounted for as separate items (major components) of

property, plant and equipment. Any gain or loss on disposal
of an item of property, plant and equipment is recognized in
the Statement of Profit and Loss.

ii) Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable
that the future economic benefits associated with the
expenditure will flow to the Company.

iii) Depreciation

Depreciation is calculated on cost of items of property, plant
and equipment less their estimated residual value using
Reducing Balance Method over the useful lives of assets
estimated by the Company based on an internal technical
evaluation performed by the Company and is recognised in
the Statement of Profit and Loss.

Assets acquired under lease are depreciated over the shorter
of the lease term and their useful lives unless it is reasonably
certain that the Company will obtain ownership by the end of
the lease term. Depreciation for assets purchased / sold
during the period is proportionately charged. The range of
estimated useful lives of items of property, plant and
equipment are as follows:

The residual values, useful lives and methods of depreciation
of property, plant and equipment are reviewed at each
financial year-end and adjusted prospectively, if appropriate.

(iv) Capital work-in-progress

Assets in the course of construction are capitalized in
capital work in progress account. At the point when an
asset is capable of operating in the manner intended by
management, the cost of construction is transferred to
the appropriate category of property, plant and
equipment. Costs associated with the commissioning of
an asset are capitalised when the asset is available for
use but incapable of operating

At normal levels until the period of commissioning has been
completed. Revenue generated from production during the
trial period is credited to capital work in progress.

Intangible assets acquired are measured on initial
recognition at cost. Following initial recognition, intangible
assets are carried at cost less any accumulated amortisation
and accumulated impairment losses.

b) Impairment

i) Financial Assets

The Company recognizes loss allowances using the expected
credit loss (ECL) model for the financial assets which are not
fair valued through Statement of Profit and Loss. Loss
allowance for trade receivables with no significant financing
component is measured at an amount equal to lifetime ECL.
For all other financial assets, expected credit losses are
measured at an amount equal to the 12-month ECL, unless
there has been a significant increase in credit risk from initial
recognition in which case those are measured at lifetime
ECL. The amount of expected credit losses (or reversal) that
is required to adjust the loss allowance at the reporting date
to the amount that is required to be recognized is recognized
as an impairment gain or loss in the Statement of Profit and
Loss.

ii) Non- Financial Assets

Intangible assets and property, plant and equipment are
evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not
be recoverable.

An impairment loss is reversed in the Statement of Profit and
Loss if there has been a change in the estimates used to
determine the recoverable amount. The carrying amount of
the asset is increased to its revised recoverable amount,
provided that this amount does not exceed the carrying
amount that would have been determined (net of any
accumulated amortization or depreciation) had no
impairment loss been recognized for the asset in prior years.

c. Leases:

Effective from 1 April 2019, the Company has applied Ind AS
116, which replaces the existing lease standard, Ind AS 17
Leases and other interpretations. The Company has applied
Ind AS 116 using the modified retrospective approach and has
accordingly not restated the comparative information.

The Company at the inception of a contract assesses whether
a contract, is or contains a lease. 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.

Ind AS 116 introduces a single balance sheet lease accounting
model for lessees. A lessee recognizes a right-of use asset
representing its right to use the underlying asset and a lease
liability representing its obligation to make lease payments.
On the Balance Sheet, right-of-use assets have been included
in property, plant and equipment and lease liabilities have
been included in borrowings and other financial liabilities.

The right-of-use asset is subsequently depreciated using the
straight line method from the commencement date to the
earlier of the end of the useful life or the end of the lease
term. The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest rate
implicit in the lease. Each lease payment is allocated between
the liability and finance cost. The finance cost is charged to
the profit or loss over the lease period so as to produce a
constant periodic rate of interest on the remaining balance of
the liability for each period

d. Inventories:

Raw materials, packing materials and stores and spares are
valued at cost computed on moving weighted average basis.
The cost includes purchase price, inward freight and other
incidental expenses net of refundable duties, levies and taxes,
where applicable. Work-in-progress is valued at input
material cost plus conversion cost as applicable. Finished
goods and stock-in-trade are valued at the lower of net
realizable value and cost, computed on a moving weighted
average basis.

e. Financial Instruments

Note i) - Recognition and initial measurement

The Company initially recognizes financial assets and
financial liabilities when it becomes a party to the
contractual provisions of the instrument. All financial assets
and liabilities are measured at fair value on initial
recognition. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial
liabilities that are not at fair value through profit or loss are
added to the fair value on initial recognition.

Note ii) - Classification and subsequent measurement

Financial assets

Financial assets carried at amortized cost

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

Financial assets at fair value through other comprehensive
income

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

Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above
categories are subsequently fair valued through profit or
loss.

Financial liabilities

Financial liabilities are subsequently carried at amortised cost
using the effective interest method. For trade and other
payables maturing within one year from the balance sheet
date, the carrying amounts approximate fair value due to the
short maturity of these instruments.

iii. De-recognition

Financial assets

The Company derecognizes a financial asset when the
contractual rights to the cash flows from the financial asset
expire, or it transfers the right to receive the contractual cash
flows in a transaction in which substantially all of the risks and
rewards of ownership of the financial assets are transferred
or in which the Company neither transfers nor retains
substantially all of the risks and rewards of ownership and
does not retain control of the financial asset.

Financial liabilities

The Company derecognizes a financial liability when its
contractual obligations are discharged or cancelled, or expire.
The Company also derecognizes a financial liability when its
terms are modified and the cash flows under the modified
terms are substantially different. In this case, a new financial
liability based on the modified terms is recognized at fair
value.

The difference between the carrying amount of the financial
liability extinguished and a new financial liability with
modified terms is recognized in the Statement of Profit and
Loss.

iv. Offsetting

Financial assets and financial liabilities are offset and the
net amount presented in the balance sheet when, and
only when, the Company has a legally enforceable right to
set off the amounts and it intends either to settle them on
a net basis or realise the asset and settle the liability
simultaneously.

f. Revenue recognition

The Company recognizes revenue to depict the transfer of
promised goods or services to customers in an amount that
reflects the consideration to which the entity expects to be
entitled in exchange for those goods or services.

(i) Sale of goods and Services:

Revenue is recognized when a customer obtains control of
the goods which is ordinarily upon delivery at the customer
premises. Revenue is measured at fair value of the
consideration received or receivable, after deduction of any
trade discounts, volume rebates and any taxes or duties
collected on behalf of the governments which are levied on
sales such as goods and services tax, etc. For certain
contracts that permit the customer to return an item,
revenue is recognized to the extent that it is probable that a
significant reversal in the amount of cumulative revenue
recognized will not occur. As a consequence, for those
contracts for which the Company is unable to make a
reasonable estimate of return, revenue is recognized when
the return period lapses or a reasonable estimate can be
made. A refund liability and an asset for recovery is
recognized for these contracts and presented separately in
the balance sheet.

(ii) Dividend income is recognized when the Company''s right
to receive the payment is established, which is generally
when shareholders approve the dividend.

(iii) For all financial instruments measured at amortised cost,
interest income is recorded using the effective interest rate
(EIR), which is the rate that exactly discounts the estimated
future cash payments or receipts over the expected life of
the financial instrument or a shorter period, where
appropriate, to the net carrying amount of the financial
asset. Interest income is included in other income in the
Statement of Profit and Loss.

Income tax comprises current and deferred tax. It is
recognized in the Statement of Profit and Loss except to the
extent that it

relates to a business combination or to an item recognized
directly in equity or in other comprehensive income.

i. Current tax

Current tax comprises the expected tax payable or receivable
on the taxable income or loss for the year and any adjustment
to the tax payable or receivable in respect of previous years.

The amount of current tax reflects the best estimate of the
tax amount expected to be paid or received after considering
the uncertainty, if any related to income taxes.

It is measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date.

ii. Deferred tax

Deferred tax is recognized in respect of temporary differences
between the carrying amounts of assets and liabilities for
financial reporting purposes and the corresponding amounts
used for taxation purposes. Deferred tax is also recognized in
respect of carried forward tax losses and tax credits. Deferred
tax assets are recognized to the extent that it is probable that
future taxable profits will be available against which they can
be used.

Deferred tax assets recognized or unrecognized are reviewed at
each reporting date and are recognized / reduced to the extent
that it is probable / no longer probable respectively that the
related tax benefit will be realized.

Deferred tax is measured at the tax rates that are expected to
apply to the period when the asset is realized or the liability is
settled, based on the laws that have been enacted or
substantively enacted by the reporting date.

The Company offsets, the current tax assets and liabilities (on a
year on year basis) and deferred tax assets and liabilities, where
it has a legally enforceable right and where it intends to settle
such assets and liabilities on a net basis.

h. Borrowing costs
For the year ended March 31, 2025

Borrowing costs directly attributable to the acquisition or
construction of those property, plant and equipment which
necessarily takes a substantial period of time to get ready
for their intended use are capitalised. All other borrowing
costs are expensed in the period in which they incur in the
Statement of Profit and Loss.

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Mar 31, 2024

Note 3 - Significant accounting policies

Note 3 A - Property, plant and equipment

i) Recognition and measurement

Items of property, plant and equipment, are measured at cost (which includes capitalized borrowing costs, if any) less accumulated depreciation and accumulated impairment losses, if any. Cost of an item of property, plant and equipment includes its purchase price, duties, taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located.

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

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal

of an item of property, plant and equipment is recognized in the Statement of Profit and Loss.

ii) Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

iii) Depreciation

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual value using Reducing Balance Method over the useful lives of assets estimated by the Company based on an internal technical evaluation performed by the Company and is recognised in the Statement of Profit and Loss.

Assets acquired under lease are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Depreciation for assets purchased / sold during the period is proportionately charged. The range of estimated useful lives of items of property, plant and equipment are as follows:

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year-end and adjusted prospectively, if appropriate.

(iv) Capital work-in-progress

Assets in the course of construction are capitalized in capital work in progress account. At the point when an asset is capable of operating in the manner intended by management, the cost of construction is transferred to the appropriate category of property, plant and equipment. Costs associated with the commissioning of an asset are capitalised when the asset is available for use but incapable of operating

at normal levels until the period of commissioning has been completed. Revenue generated from production during the trial period is credited to capital work in progress.

Intangible assets acquired are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses.

b) Impairment

i) Financial Assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through Statement of Profit and Loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an impairment gain or loss in the Statement of Profit and Loss.

ii) Non- Financial Assets

Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.

An impairment loss is reversed in the Statement of Profit and Loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

c. Leases:

Effective from 1 April 2019, the Company has applied Ind AS 116, which replaces the existing lease standard, Ind AS 17 Leases and other interpretations. The Company has applied Ind AS 116 using the modified retrospective approach and has accordingly not restated the comparative information.

The Company at the inception of a contract assesses whether a contract, is or contains a lease. 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.

Ind AS 116 introduces a single balance sheet lease accounting model for lessees. A lessee recognizes a right-of use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. On the Balance Sheet, right-of-use assets have been included in property, plant and equipment and lease liabilities have been included in borrowings and other financial liabilities.

The right-of-use asset is subsequently depreciated using the straight line method from the commencement date to the earlier of the end of the useful life or the end of the lease term. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period

d. Inventories:

Raw materials, packing materials and stores and spares are valued at cost computed on moving weighted average basis. The cost includes purchase price, inward freight and other incidental expenses net of refundable duties, levies and taxes, where applicable.

Work-in-progress is valued at input material cost plus conversion cost as applicable. Finished goods and stock-intrade are valued at the lower of netrealizable value and cost, computed on a moving weighted average basis.

e. Financial Instruments

Note i) - Recognition and initial measurement

The Company initially recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are measured at fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or loss are added to the fair value on initial recognition.

Note ii) - Classification and subsequent measurement

Financial assets

Financial assets carried at amortized cost

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

Financial assets at fair value through other comprehensive income

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

Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

Financial liabilities

Financial liabilities are subsequently carried at amortised cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

iii. De-recognition Financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the right to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial assets are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

Financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of the financial liability extinguished and a new financial liability with modified terms is recognized in the Statement of Profit and Loss.

iv. Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company has a legally enforceable right to set off the

amounts and it intends either to settle them on a net basis or realise the asset and settle the liability simultaneously.

f. Revenue recognition

The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

(i) Sale of goods and Services:

Revenue is recognized when a customer obtains control of the goods which is ordinarily upon delivery at the customer premises. Revenue is measured at fair value of the consideration received or receivable, after deduction of any trade discounts, volume rebates and any taxes or duties collected on behalf of the governments which are levied on sales such as goods and services tax, etc. For certain contracts that permit the customer to return an item, revenue is recognized to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. As a consequence, for those contracts for which the Company is unable to make a reasonable estimate of return, revenue is recognized when the return period lapses or a reasonable estimate can be made. A refund liability and an asset for recovery is recognized for these contracts and presented separately in the balance sheet.

(ii) Dividend income is recognized when the Company''s right to receive the payment is established, which is generally when shareholders approve the dividend.

(iii) For all financial instruments measured at amortised cost, interest income is recorded using the effective interest rate (EIR), which is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset. Interest income is included in other income in the Statement of Profit and Loss.

g. Income tax

Income tax comprises current and deferred tax. It is recognized in the Statement of Profit and Loss except to the extent that it relates to a business combination or to an item recognized directly in equity or in other comprehensive income.

i. Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.

ii. Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognized in respect of carried forward tax losses and tax credits. Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which they can be used.

Deferred tax assets recognized or unrecognized are reviewed at each reporting date and are recognized / reduced to the extent that it is probable / no longer probable respectively that the related tax benefit will be realized.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

The Company offsets, the current tax assets and liabilities (on a year on year basis) and deferred tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

h. Borrowing costs

Borrowing costs directly attributable to the acquisition or construction of those property, plant and equipment which necessarily takes a substantial period of time to get ready for their intended use are capitalised. All other borrowing costs are expensed in the period in which they incur in the Statement of Profit and Loss.

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Mar 31, 2015

1.1 Basis of Accounting :

The Financial Statements have been prepared under the historical cost convention, on accrual basis to comply in all material respects with all applicable accounting principles in India, the applicable Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.and the relevant provisions of the Companies Act, 2013.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

1.2 Use of Estimates:

The preparation of the financial statements are in conformity with the generally accepted accounting principles that requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying financial statements. Any differences of actual results to such estimates are recognized in the period in which the results are known / materialized.

1.3 Fixed Assets :

The fixed assets are stated at acquisition cost less accumulated depreciation. The cost is inclusive of interest and incidental expenses incurred during construction period.

1.4 Depreciation :

Depreciation on tangible Assets has been provided on the WDV method over the useful life of assets in accordance with Schedule II of the Companies Act, 2013.Depreciation for assets purchased /sold during a period is proportionately charged. Assets are amortized over their respective individual estimated useful lives on a written down basis, commencing from the date the asset is available to the Company for its use.

The estimated useful lives for the fixed assets as per Schedule II of the Act are as follows:

* Office Equipment : 5 years

* Computer System & Peripherals : 3 years

* Furniture & Fixtures : 10 years

* Electrical Installations : 10 years

1.5 Investments :

a) Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

b) Investments are classified as Quoted & Unquoted Investments.

c) Long term Investments are stated at cost less provision for permanent diminution in value of such investments.

d) Current Investments are stated at lower of cost and fair market value, determined by category of Investments.

1.6 Revenue Recognition :

a) All incomes and expenditure are accounted for on accrual basis unless otherwise stated.

b) Expenses are accounted on an accrual basis and at historical cost, unless otherwise stated.

c) Dividend on shares and securities is recognized when the right to receive the dividend is established.

d) The Company follows the prudential norms for income recognition and provides for / writes off Non-performing Assets as per the prudential norms prescribed by the Reserve Bank of India or earlier as ascertained by the management.

Sales:-

Sales are recognised on despatch of material to customers. Sales are inclusive of Excise Duty and net of trade discount, rebates and indirect taxes payable. Rebates and discounts are accounted for as and when determined.

1.7 Inventories:

Items of inventories are valued at lower of cost or net realisable value. Cost of inventories comprise of all costs: purchase, cost of conversion and other costs incurred in bringing the inventory to their present condition. It is in accordance with Accounting Standard 20 on "Earnings per share".

1.8 Earnings per Share (EPS) :

The earnings considered in ascertaining the Company's EPS comprises the net profit after tax (after providing the post tax effect of any extra ordinary items). The number of shares used in computing Basic EPS is the weighted average number of equity shares outstanding during the year.

1.9 Taxation :

a) Current Tax: A provision for current income tax is made on the taxable income using the applicable tax rates and tax laws.

b) Deferred Tax: Deferred tax arising on account of timing differences and which are capable of reversal in one or more subsequent periods is recognized using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are not recognized unless there is a virtual certainty with respect to the reversal of the same in future.

1.10 Impairment of Assets :

An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is higher of the asset's fair value less costs to sell vis-a-vis value in use. For the purpose of impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows.

1.11 Provisions and Contingencies :

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation can not be made.

1.12 Employee Benefits:

The company has not provided for Gratuity and Leave encashment benefits till 31.03.2015. The retirement benefits will be debited as and when paid.

1.13 Foreign Exchange Transactions:-

a) Transactions in Foreign Currency are accounted at the exchange rate prevailing on the date of Transactions. Exchange fluctuations between the transaction date and the settlement date in respect of Revenue Transactions are recognized in Profit & Loss A/c.

b) All export proceeds not realised at the year end are restated at the rate prevailing at the year end. The exchange difference arising there from has been recognised as income / expenses in the Current Year's Profit & Loss A/c along with underlying transaction.

c) The premium or discount arising at the inception of forward exchange contract is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contracts is recognised as income or as expense for the year. None of the forward exchange contracts are taken for trading or speculation purpose.

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Mar 31, 2014

1.1 Basis of preparation of Financial Statements:-

(a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and as per the Accounting Standards referred to in Section 211(3C) of the Companies Act. All Assets and Liabilities have been classified as Current and Non-Current as per the Company''s normal operating cycle (i.e. 12 months) and other criteria as set out in the Revised Schedule VI of the Companies Act, 1956.

(b) The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

Fixed Assets:-

Fixed Assets are stated at cost less depreciation. The cost is inclusive of interest and incidental expenses incurred during construction period .

1.3 Depreciation:-

Depreciation on all Tangible assets is provided on WDV Method as per Section 205(2)(b) of the Companies Act, 1956 at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.However, Depreciation on Assets purchased During the Year have been Provided at the Rates specified in the Schedule XIV to Companies Act,1956.

1.4 Investments:-

(a) Investments which are intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as Long Term Investments.

(b) Long term investments are carried at cost.

(C) Current Investments are stated at lower of cost and fair market value.

1.5 Valuation of Inventories:-

Items of inventories are valued at lower of cost or net realisable value. Cost of inventories comprise of all costs: purchase, cost of conversion and other costs incurred in bringing the inventory to their present condition.

1.6 Revenue Recognition:-

Revenue (Income) is recognised only when it is reasonably certain that the ultimate collection will be made. Revenue and Expenses are accounted on an accrual basis and at historical cost, unless otherwise stated.

Sales:-

Sales are recognised on despatch of material to customers. Sales are inclusive of Excise Duty and net of trade discount, rebates and indirect taxes payable. Rebates and discounts are accounted for as and when determined.

1.7 Expenses:-

Material known liabilities are provided for on the basis of available information/estimates. Expenses are accounted on an accrual basis and at historical cost, unless otherwise stated.

1.8 Contingent Liabilities:-

Contingent Liabilities are disclosed by way of Notes forming part of Accounts. Provision is made in the accounts for those liabilities which are likely to materialise after the year end till the Finalisation of accounts and having effect on the position stated in the Balance Sheet as at the year end.

1.9 Employee benefits :-

The company has not provided for Gratuity and Leave encashment benefits till 31.03.2014. The retirement benefits will be debited as and when paid.

1.10 Foreign Exchange Transactions:-

a) Transactions in Foreign Currency are accounted at the exchange rate prevailing on the date of Transactions. Exchange fluctuations between the transaction date and the settlement date in respect of Revenue Transactions are recognized in Profit & Loss A/c.

b) All export proceeds not realised at the year end are restated at the rate prevailing at the year end. The exchange difference arising there from has been recognised as income / expenses in the Current Year''s Profit & Loss A/c along with underlying transaction.

c) The premium or discount arising at the inception of forward exchange contract is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contracts is recognised as income or as expense for the year. None of the forward exchange contracts are taken for trading or speculation purpose.

1.11 Borrowing Costs:-

Borrowing Costs 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 a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged to revenue.

1.12 Taxes on Income:-

Tax expense comprises both current and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, after taking into consideration benefits admissible under the provisions of the Income - Tax Act, 1961.

Deferred tax liabilities are recognised for future tax consequences attributable to the timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. Deferred Tax Asset is not recognised unless, in the management judgment, there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realised.

1.13 Earning per Share:-

The Company reports Earnings Per Share (EPS) in accordance with Accounting Standard 20 on "Earnings per share".

1.14 Segment Reporting:-

The Company is operating in single segment.

1.15 Impairment Loss:

Impairment loss is recognised wherever the Carrying Amount of an asset is in Excess of its recoverable amount as at the Balance Sheet Date.

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Mar 31, 2012

1.1 Basis of preparation of Financial Statements:-

(a) The financial statements have been prepared under the historical cost convention in accordance with the generally, accepted accounting principles and as per the Accounting Standards referred to in Section 211(3C) of the Companies Act. All Assets and Liabilities have been classified as Current and Non-Current as per the Company's normal operating cycle (i.e. 12 months) and other criteria as set out in the Revised Schedule VI of the Companies Act, 1956.

(b) The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

1.2 Fixed Assets:-

Fixed Assets are stated at cost less depreciation. The cost is inclusive of interest and incidental expenses incurred during construction period .

1.3 Depreciation:-

Depreciation on all Tangible assets is provided on WDV Method as per Section 205(2)(b) of the Companies Act, 1956 at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. However, Depreciation on Assets purchased During the Year have been Provided at the Rates specified in the Schedule XIV to Companies Act, 1956.

1.4 Investments:-

(a) Investments which are intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as Long Term Investments.

(b) Long term investments are carried at cost.

(C) Current Investments are stated at lower of cost and fair market value.

1.5 Valuation of Inventories:-

Items of inventories are valued at lower of cost or net realisable value. Cost of inventories comprise of all costs: purchase, cost of conversion and other costs incurred in bringing the inventory to their present condition.

1.6 Revenue Recognition:-

Revenue (Income) is recognised only when it is reasonably certain that the ultimate collection will be made. Revenue and Expenses are accounted on an accrual basis and at historical cost, unless otherwise stated.

Sales:-

Sales are recognised on despatch of material to customers. Sales are inclusive of Excise Duty and net of trade discount, rebates and indirect taxes payable. Rebates and discounts are accounted for as and when determined.

1.7 Expenses:-

Material known liabilities are provided for on the basis of available information/estimates. Expenses are accounted on an accrual basis and at historical cost, unless otherwise stated.

1.8 Contingent Liabilities:-

Contingent Liabilities are disclosed by way of Notes forming part of Accounts. Provision is made in the accounts for those liabilities which are likely to materialise after the year end till the finalisation of accounts and having effect on the position stated in the Balance Sheet as at the year end.

1.9 Employee benefits :-

The company has not provided for Gratuity and Leave encashment benefits till 31.03.2012. The retirement benefits will be debited as and when paid.

1.10 Foreign Exchange Transactions:-

a) Transactions in Foreign Currency are accounted at the exchange rate prevailing on the date of Transactions. Exchange fluctuations between the transaction date and the settlement date in respect of Revenue Transactions are recognized in Profit & Loss A/c.

b) All export proceeds not realised at the year end are restated at the rate prevailing at the year end. The exchange difference arising there from has been recognised as income/expenses in the Current Year's Profit & Loss A/c along with underlying transaction.

c) The premium or discount arising at the inception of forward exchange contract is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contracts is recognised as income or as expense for the year. None of the forward exchange contracts are taken for trading or speculation purpose.

1.11 Borrowing Costs:-

Borrowing Costs 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 a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged to revenue.

1.12 Taxes on Income:-

Tax expense comprises both current and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax liabilities are recognised for future tax consequences attributable to the timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. Deferred Tax Asset is not recognised unless, in the management judgment, there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realised.

1.13 Earning per Share:-

The Company reports Earnings Per Share (EPS) in accordance with Accounting Standard 20 on "Earnings per share".

1.14 Segment Reporting:-

The Company is operating in single segment.

1.15 Impairment Loss:

Impairment loss is recognised wherever the Carrying Amount of an asset is in Excess of its recoverable amount as at the Balance Sheet Date.

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Mar 31, 2010

1. Basis of preparation of Financial Statements:-

(a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and as per the Accounting Standards referred to in Section 211(3C) of the Companies Act

(b) The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

2. Fixed Assets:-

Fixed Assets are stated at cost less depreciation. The cost is inclusive of interest and incidental expenses incurred during construction period .

3. Depreciation:-

Depreciation on all Tangible assets is provided on WDV Method as per Section 205(2)(b) of the Companies Ac> 1956 at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.However ,Depreciation on Assets purchased During the Year have been Provided at the Rates specified in the Schedule XIV to Companies Act,1956.

Investments:-

Long term investments are carried at cost

4. Valuation of Inventories:-

Items of inventories are valued at lower of cost or net realisable value. Cost of inventories comprise of all costs: purchase,, cost of conversion and other costs incurred in bringing the inventory to their present condition.

5. Revenue Recognitions- Revenue (Income) is recognised only when it is reasonably certain that the ultimate collection will be made. Revenue and Expenses are accounted on an accrual basis and at historical cost.

Sales:-

Sales are recognised on despatch of material to customers. Sales are inclusive of Excise Duty and net of trade discount, rebates and indirect taxes payable. Rebates and discounts are accounted for as and when determined.

6. Expenses:-

Material known liabilities are provided for on the basis of available information/estimates .Expenses are accounted on an accrual basis and at historical cost

7. Contingent Liabilities:-

Contingent Liabilities are disclosed by way of Notes forming part of Accounts. Provision is made in the accounts for those liabilities which are likely to materialise after title year end till the Finalisation of accounts and having effect on the position stated in the Balance Sheet as at the year end.

8. Employee benefits

The company has not provided for Gratuity and Leave encashment benefits till 31.03.2010. The retirement benefits will be debited as and when paid.

9. Foreign Exchange Transactions:-

a) Transactions in Foreign Currency are accounted at the exchange rate prevailing on the date of Transactions. Exchange fluctuations between the transaction date and the settlement date in respect of Revenue Transactions are recognized in Profit & Loss A/c.

b) All export proceeds not realised at the year end are restated at the rate prevailing at the year end.

The exchange difference arising there from has been recognised as income / expenses in the Current Years Profit & Loss A/c along with underlying transaction.

c) The premium or discount arising at the inception of forward exchange contract is amortised as expense or income over the life of the contract Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contracts is recognised as income or as expense for the year. None of the forward exchange contracts are taken for trading or speculation purpose.

10. Borrowing Costs:-

Borrowing Costs 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 a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged to revenue.

11. Taxes on Incomes- Tax expense comprises both current and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, after taking into consideration benefits admissible under the provisions of the Income - Tax Act, 1961.

Deferred tax liabilities are recognised for future tax consequences attributable to the timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. Deferred Tax Asset is not recognised unless, in the management judgment, there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realised.

12. Earning per Share:-

The Company reports Earnings Per Share (EPS) in accordance with Accounting Standard 20 on "Earnings per share".

13. Segment Reporting:-

The Company is operating in single segment.

14. Impairment Loss:

Impairment loss is recognised wherever the Carrying Amount of an asset is in Excess of its recoverable amount as at the Balance Sheet Date.