Sreechem Resins Ltd. कंपली की लेखा नीति

Mar 31, 2025

corporate information

The Company is a public Company limited by shares and is incorporated under the provisions of Companies Act applicable in India.
The Company is listed with Bombay Stock Exchange (BSE).

The Company is principally engaged in production of Resins at its plant at Jhagarpur (Rajgangpur) and Raigarh. The registered office
is situated at Jhagarpur, Rajgangpur, Odhisha and its corporate office at 23A, Netaji Subhash Road, 11th Floor, Kolkata-700 001. The
Company’s financial statements are standalone statements. There is no holding/ subsidiary Company. The disclosures of material
accounting policies are pertaining to the present activities of the Company.

1.01. basis of preparation of financial statements

I. Statement of Compliance

The Standalone Financial Statements for the year under review have been prepared in accordance with Indian
Accounting Standards (IND AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section
133 of Companies Act, 2013, (the ''Act’) and other relevant provisions of the Act.

II. Use of Estimates and Judgments

In preparing these Standalone Financial Statements, management has made judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from such estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized prospectively. Information about assumptions and estimation
uncertainties that have a significant risk of resulting in a material adjustment in the year ending 31st March, 2025 are as
follows:

(a) Recognition of deferred tax assets depends on availability of future taxable profit against which tax losses
carried forward can be used;

(b) Measurement of defined benefit obligations are based on fair value ;

(c) Recognition and measurement of provisions and contingencies are based on key assumptions about the
likelihood and magnitude of an outflow of resources;

III. Functional and Presentation of Currency

The Financial Statements are presented in Indian Rupees (INR), which is the functional currency.

IV. Basis of Measurement

The Financial Statements are generally prepared on the historical cost convention basis.

1.02. Classification of Assets and Liabilities

A. Schedule III to the Act, requires assets and liabilities to be classified as either Current or Non-current.

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

(i) it is expected to be realized in, or is intended for sale or consumption in, the Company’s normal
operating cycle;

(ii) it is held primarily for the purpose of trading;

(iii) it is expected to be realized within twelve months after the reporting date; or

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

b) All other assets are classified as non-current.

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

(i) it is expected to be settled in the Company’s normal operating cycle;

(ii) it is held primarily for the purpose of trading;

(iii) it is due to be settled within twelve months after the reporting date; or

(iv) the Company does not have an unconditional right to defer settlement of the liability for at
least twelve months after the reporting date.

d) All other liabilities are classified as non-current.

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

B. Operating Cycle

An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash
equivalents. The Company’s operating cycle is twelve months for the purpose of current or non-current
classification of assets and liabilities.

C. Property Plant and Equipment

(i) Recognition and Measurement

Freehold land is carried at historical cost. Capital Work-in-Progress is stated at cost. All other items of
Property, Plant and Equipment that qualifies for recognition as an asset is initially measured at its cost and
then carried at the cost less accumulated depreciation and accumulated impairment, if any.

The cost of an item of Property, Plant and Equipment comprises its purchase price, including import duties and
non-refundable purchase taxes, after deducting trade discounts and rebates and any costs directly attributable
to bringing the asset to the location and condition necessary for it to be capable of operating in the manner
intended by management.

The cost of a self-constructed item of Property, Plant and Equipment comprises the cost of materials and direct
labour, any other costs directly attributable to bringing the item to working condition for its intended use.

(ii) Capital Work In Progress

Tangible Property, Plant and Equipment under construction are disclosed under this head. Expenditure
incurred during the construction period, including all expenditure direct and indirect expenses, incidental and
related to construction, is carried forward and on completion, the costs are allocated to the respective property,
plant and equipment.

(iii) Subsequent Expenditure

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

(iv) Depreciation

The depreciable amount of an item of Property, Plant and Equipment is allocated on a systematic basis over its
useful life. The Company provides depreciation on the straight-line method at the rates prescribed under
Schedule-II of the Companies Act, 2013 on the basis of useful life of the Assets. The Company believes that
straight line method reflects the pattern in which the asset’s future economic benefits are expected to be
consumed by the Company.

Based on internal technical evaluation, the management believes useful lives of the assets are appropriate. The
depreciation method is reviewed at least at each financial year-end and, if there has been a significant change in
the expected pattern of consumption of the future economic benefits embodied in the asset, the method is
changed to reflect the changed pattern. Such a change is accounted for as a change in an accounting estimate in
accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors.

The depreciation charge for each period is generally recognised in the Statement of Profit and Loss unless it is
included in the carrying amount of another asset.

The residual value and the useful life of an asset is reviewed at year-end and, if expectations differ from
previous estimates, the change(s) is accounted for as a change in an accounting estimate in accordance with Ind
AS 8. The estimated useful lives for the assets are as per the life provided in the Companies Act, 2013.

Depreciation on additions/ disposals is provided on a pro-rata basis i.e. from/ upto the date on which asset is
ready for use /disposed off. Depreciation charge for the year is displayed as depreciation on the face of
Statement of Profit and Loss.

Fixed Assets are stated at their original cost including all expenses attributable to bring the assets to its
intended use less CENVAT Credit / Capital Subsidy availed on acquisition.

(v) Disposal

The carrying amount of an item of Property, Plant and Equipment is derecognized on disposal or when no
future economic benefits are expected from its use or disposal. The gain or loss arising from the de-recognition
of an item of Property, Plant and Equipment is charged in Statement of Profit and Loss when the item is
derecognized.

D. Intangible Assets

(i) Recognition and Measurement

Intangible Assets (Computer Software) has a finite useful life & are stated at cost less accumulated
amortization & accumulated impairment loses, if any.

An intangible asset is an identifiable non-monetary asset without physical substance. Intangible assets are
initially measured at its cost and then carried at the cost less accumulated depreciation and accumulated
impairment, if any.

(ii) Amortization

The other intangible assets are amortized on the straight line method. The Company believes that straight line
method reflects the pattern in which the asset’s future economic benefits are expected to be consumed by the
Company.

The amortization period and amortization method is reviewed at least at the end of each financial year-end
and, if there has been a significant change in the expected pattern of consumption of the future economic
benefits embodied in the asset, the method is changed to reflect the changed pattern. Such a change is
accounted for as a change in an accounting estimate in accordance with INS AS 8 - Accounting Policies, Changes
in Accounting Estimates and Errors.

The amortization expenses on intangible assets with finite lives is recognized in the statement of Profit & Loss
unless such expenditure forms part of carrying value of another asset.

E. Impairment of Tangible & Intangible Assets:

The Company identifies impairable assets at the year-end for the purpose of arriving at impairment loss thereon
being the difference between the book value and recoverable value of relevant assets. Impairment loss, when
crystalises, are charged against revenues for the year.

F. Inventories

(i) Measurement of Inventory

The Company measures its inventories at the lower of cost and net realizable value.

(ii) Cost of Inventory

The cost of inventories shall comprise all costs of purchase including the costs of conversion and other costs
incurred in bringing the inventories to their present location and condition.

Raw materials and stores & spares -

The costs of inventories comprise the purchase price, import duties (where applicable) and other taxes (other
than those subsequently recoverable by the entity from the taxing authorities), and transport, handling and
other costs directly attributable to the acquisition of materials and services in bringing the inventories to their
present location & condition.

Trade discounts, rebates and other similar items are deducted in determining the costs of purchase.

The costs of conversion of inventories include costs directly related to the units of production and a systematic
allocation of fixed and variable production overheads that are incurred in converting materials into finished
goods.

Other costs (if any) are included in the cost of inventories only to the extent that they are incurred in bringing
the inventories to their present location and condition.

The cost of inventories is assigned by weighted average cost formula. The Company uses the same cost formula
for all inventories having a similar nature and use to the Company.

Obsolete, slow moving and defective inventories are identified from time to time and, where necessary; a
provision is made for such inventories.

(iii) Net Realizable Value

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

(iv) Valuation of Spare Parts, Stand-by Equipment and Servicing Equipment

Spare parts, stand-by equipment and servicing equipment are recognized as Property, Plant and Equipment
only if it is probable that future economic benefits associated with them will flow to the Company and their cost
can be measured reliably. Otherwise such items are classified and recognized as Inventory.

G. Financial Instruments
Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value, 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.

Classifications

The Company classifies its financial assets as subsequently measured at either amortised cost or fair value
depending on the Company’s business model for managing the financial assets and the contractual cash flow
characteristics of the financial assets.

Financial assets at amortised cost

A financial asset is measured at amortised cost only if both of the following conditions are met:

- it is held within a business model whose objective is to hold assets in order to collect contractual cash
flows.

- the contractual terms of the financial asset represent contractual cash flows that are solely payments of
principal and interest.

After initial measurement, such financial assets are subsequently measured at amortised cost using the Effective
Interest Rate (''EIR’) method. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance income
in the Statement of Profit and Loss. The losses arising from impairment are recognised in the Statement of Profit and
Loss.

Financial assets at fair value through Other Comprehensive Income (FVOCI)

Financial assets with contractual cash flow characteristics that are solely payments of principal and interest and
held in a business model whose objective is achieved by both collecting contractual cash flows and selling financial
assets are classified to be measured at FVOCI.

Financial assets at fair value through profit and loss (FVTPL)

Any Financial assets, which does not meet the criteria for categorization as at amortized cost or as FVOCI, is
classified as at FVTPL.

In addition, the Company may elect to classify a Financial assets, which otherwise meets amortized cost or FVOCI
criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or
recognition inconsistency (referred to as ''accounting mismatch’).

Financial assets included within the FVTPL category are measured at fair value with all changes recognized in the
Statement of Profit and Loss.

Equity Instruments

All equity instruments in scope of Ind AS 109 are measured at fair value. On initial recognition an equity investment
that is not held for trading, the Company may irrevocably elect to present subsequent changes in fair value in OCI.
This election is made on an investment-by-investment basis.

All other Financial Instruments are classified as measured at FVTPL.

Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
primarily derecognised (i.e. removed from the Company’s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a ''pass-through’
arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the
asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of
the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has
neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the
asset, the Company continues to recognize the transferred asset to the extent of the Company’s continuing
involvement. In that case, the Company also recognizes an associated liability.

The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that
the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the Company could be
required to repay.

On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying
amount allocated to the portion of the asset derecognised) and the sum of (i) the consideration received (including
any new asset obtained less any new liability assumed) and (ii) any cumulative gain or loss that had been recognised
in OCI is recognised in the Statement of Profit and Loss.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at
amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant
increase in credit risk.

With regard to trade receivable, the Company applies the simplified approach as permitted by Ind AS 109, Financial
Instruments, which requires expected lifetime losses to be recognised from the initial recognition of the trade
receivables.

Investments

Investments held for less than 12 months are shown as Current Investments & those held for more than 12 months
are shown as Non- Current Investments.

Cash and Cash Equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of
cash that are subject to an insignificant risk of change in value and having original maturities of three months or less
from the date of purchase, to be cash equivalents. Cash and Cash equivalents consist of balance with banks and cash
in hand which are unrestricted for withdrawal and usage.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
amortised cost, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of amortised cost, net of directly
attributable transaction costs.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial Liabilities measured at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using
the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as
through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that
are an integral part of the EIR.

The EIR amortisation is included as finance costs in the Statement of Profit and Loss.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit and loss include financial liabilities designated upon initial
recognition as at fair value through profit and loss.

Gains or losses on liabilities held for trading are recognised in the Statement of Profit and Loss.

Financial liabilities designated upon initial recognition at fair value through profit and loss are designated as such at
the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL,
fair value gains/ losses attributable to changes in own credit risks are recognized in OCI. These gains/ loss are not
subsequently transferred to the Statement of Profit and Loss. However, the Company may transfer the cumulative
gain or loss within equity. All other changes in fair value of such liability are recognised in the Statement of Profit
and Loss.

Derecognition of financial liabilities

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or
expire.

H. Revenue Recognition
Sale of Goods

Revenue from the sale of products is recognized when all the following conditions have been satisfied:

(a) the significant risks and rewards of ownership of the goods is transferred to the buyer;

(b) the entity retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;

(c) the amount of revenue can be measured reliably;

(d) it is probable that the economic benefits associated with the transaction will flow;

(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably;

(f) Dividend income from investment is recognized only when the right to receive dividend has been
established.

The Company measures revenue on the basis of the consideration received or receivable taking into account the
amount of any sales returns, trade discounts and volume rebates allowed by the Company.

Interest Income

Interest income from a financial asset is recognized using the effective interest method.

Sale of Services

Revenue from services rendered in recognized as the services are rendered and is booked based on
agreements/arrangements with the concerned parties.

I. Foreign Currency Transactions

Indian Rupee is the functional as well as presentation currency for the Company. A foreign currency transaction is
recorded, on initial recognition in the functional currency, by applying to the foreign currency amount the spot
exchange rate between the functional currency and the foreign currency at the date of the transaction.

At the end of each reporting period, foreign currency monetary items are translated using the closing rate whereas
non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction; and non-monetary items that are measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value was measured.

Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different
from those at which they were translated on initial recognition during the period or in previous Financial
Statements are recognized in the Standalone Statement of Profit and Loss in the period in which they arise.

When a gain or loss on a non-monetary item is recognized in Other Comprehensive Income, any exchange
component of that gain or loss is recognized in Other Comprehensive Income. Conversely, when a gain or loss on a
non-monetary item is recognized in Statement of Profit and Loss, any exchange component of that gain or loss is
recognized in Statement of Profit and Loss.

J. Accounting of Claims

a) Claims receivable are accounted at the time when certainty of receivable is established.

b) Claims raised by the Government Authorities regarding taxes & duties, which are disputed by the Company,
are accounted based on the merits of each claim.

K. Employee Benefit

a) Short Term Employee Benefits:

Liabilities for short term employee benefit 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 recognized in respect of employees’
services up to the end of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as ''Employee Benefits Payable’ within ''Other Financial
Liabilities’ in the Balance Sheet.

b) Post-Employment Benefits:

i. Defined Contribution Plans

This benefit includes contribution to Employee’s State Insurance Corporation {ESI} and Provident
Fund Contribution {PF} to the Regional Provident Fund Commissioner. These contributions are
defined as an expense in the Statement Profit & Loss as and when such contributions are due.

ii. Defined Benefit Plans

For Gratuity and compensated leave

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible
employees. The plan provides a lump sum payment to vested employees at retirement, death while
in employment or on termination of employment of an amount equivalent to 15 days salary payable
for each completed year of service or part thereof in excess of six months. Vesting occurs upon
completion of five years of service.

The Company has not obtained any independent actuarial valuation report of its liability towards
gratuity and leave encashment payable to its employees Gratuity is provided for on the basis of
actuarial payments made to Life Insurance Corporation of India as per their Group Gratuity Scheme.

c) Other Long Term Employee Benefits - Compensated Absences

The Company provides for encashment of leave or leave with pay subject to certain rules. The employees are
entitled to accumulate leave subject to certain limits for future encashment/availment. The provisions are
presented under provisions (current) in the balance sheet.

L. Cash Flow Statement

Cash flows are reported using the indirect method, whereby Profit Before Tax (PBT) is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and items of income or expenses associated with investing or financing cash flows. The cash flow from operating,
investing and financing activities of the Company is segregated based on the available information.

M. Taxation
Income Tax

Income tax comprises current and deferred tax. It is recognized in Standalone 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.

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.

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 is not recognized for:

i. temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit or loss at the time of the
transaction;

ii. taxable temporary differences arising on the initial recognition of goodwill.

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. The existence of unused tax losses is strong evidence that future taxable profit may
not be available. Therefore, in case of a history of recent losses, the Company recognizes a deferred tax asset only to
the extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient
taxable profit will be available against which such deferred tax asset can be realized. Deferred tax assets -
unrecognized or recognized, 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 assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and
assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different
tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities
will be realized simultaneously.

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Mar 31, 2024

NOTE NO. 1: -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CORPORATE INFORMATION

The Company is a public company limited by shares and is incorporated under the provisions of Companies Act applicable in India.

The Company is principally engaged in production of Resins at its plant at Jhagarpur (Rajgangpur) and Raigarh. The registered office
is situated at Jhagarpur, Rajgangpur, Odhisha and its corporate office at 23A, Netaji Subhash Road, 11th Floor, Kolkata-700 001. The
company''s financial statements are standalone statements. There is no holding/ subsidiary company. The disclosures of significant
accounting policies are pertaining to the present activities of the company.

1.01. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

I. Statement of Compliance

The Standalone Financial Statements for the year under review have been prepared in accordance with Indian Accounting
Standards (IND AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of
Companies Act, 2013, (the ''Act) and other relevant provisions of the Act.

II. Use of Estimates and Judgments

In preparing these Standalone Financial Statements, management has made judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from such estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognized prospectively. Information about assumptions and estimation uncertainties that
have a significant risk of resulting in a material adjustment in the year ending 31^st March, 2024 are as follows:

(a) Recognition of deferred tax assets depends on availability of future taxable profit against which tax losses carried
forward can be used;

(b) Measurement of defined benefit obligations are based on fair value;

(c) Recognition and measurement of provisions and contingencies are based on key assumptions about the
likelihood and magnitude of an outflow of resources;

III. Functional and Presentation of Currency

The Financial Statements are presented in Indian Rupees (INR), which is the functional currency.

IV. Basis of Measurement

The Financial Statements are generally prepared on the historical cost convention basis.

1.02. Classification of Assets and Liabilities

A. Schedule III to the Act, requires assets and liabilities to be classified as either Current or Non-current.

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

(i) it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal
operating cycle;

(ii) it is held primarily for the purpose of trading;

(iii) it is expected to be realized within twelve months after the reporting date; or

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

b) All other assets are classified as non-current.

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

(i) it is expected to be settled in the Company''s normal operating cycle;

(ii) it is held primarily for the purpose of trading;

(iii) it is due to be settled within twelve months after the reporting date; or

(iv) the Company does not have an unconditional right to defer settlement of the liability for at least
twelve months after the reporting date.

d) All other liabilities are classified as non-current.

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

B. Operating Cycle

An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash
equivalents. The Company''s operating cycle is twelve months for the purpose of current or non-current classification
of assets and liabilities.

C. Property Plant and Equipment

(i) Recognition and Measurement

Freehold land is carried at historical cost. Capital Work-in-Progress is stated at cost. All other items of Property,
Plant and Equipment that qualifies for recognition as an asset is initially measured at its cost and then carried at
the cost less accumulated depreciation and accumulated impairment, if any.

The cost of an item of Property, Plant and Equipment comprises its purchase price, including import duties and
non-refundable purchase taxes, after deducting trade discounts and rebates and any costs directly attributable
to bringing the asset to the location and condition necessary for it to be capable of operating in the manner
intended by management.

The cost of a self-constructed item of Property, Plant and Equipment comprises the cost of materials and direct
labour, any other costs directly attributable to bringing the item to working condition for its intended use.

(ii) Capital Work In Progress

Tangible Property, Plant and Equipment under construction are disclosed under this head. Expenditure incurred
during the construction period, including all expenditure direct and indirect expenses, incidental and related to
construction, is carried forward and on completion, the costs are allocated to the respective property, plant and
equipment.

(iii) Sub se que nt Expe nditure

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

(iv) Depreciation

The depreciable amount of an item of Property, Plant and Equipment is allocated on a systematic basis over its
useful life. The Company provides depreciation on the straight-line method at the rates prescribed under
Schedule-II of the Companies Act, 2013 on the basis of useful life of the Assets. The Company believes that straight
line method reflects the pattern in which the asset''s future economic benefits are expected to be consumed by
the Company.

Based on internal technical evaluation, the management believes useful lives of the assets are appropriate. The
depreciation method is reviewed at least at each financial year-end and, if there has been a significant change in
the expected pattern of consumption of the future economic benefits embodied in the asset, the method is
changed to reflect the changed pattern. Such a change is accounted for as a change in an accounting estimate in
accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors.

The depreciation charge for each period is generally recognised in the Statement of Profit and Loss unless it is
included in the carrying amount of another asset.

The residual value and the useful life of an asset is reviewed at year-end and, if expectations differ from previous
estimates, the change(s) is accounted for as a change in an accounting estimate in accordance with Ind AS 8. The
estimated useful lives for the assets are as per the life provided in the Companies Act, 2013.

Depreciation on additions/ disposals is provided on a pro-rata basis i.e. from/ upto the date on which asset is
ready for use /disposed off. Depreciation charge for the year is displayed as depreciation on the face of Statement
of Profit and Loss.

Fixed Assets are stated at their original cost including all expenses attributable to bring the assets to its intended
use less CENVAT Credit / Capital Subsidy availed on acquisition.

(v) Disposal

The carrying amount of an item of Property, Plant and Equipment is derecognized on disposal or when no future
economic benefits are expected from its use or disposal. The gain or loss arising from the de-recognition of an
item of Property, Plant and Equipment is charged in Statement of Profit and Loss when the item is derecognized.

D. Intangible Assets

(i) Recognition and Measurement

Intangible Assets (Computer Software) has a finite useful life & are stated at cost less accumulated amortization
& accumulated impairment loses, if any.

An intangible asset is an identifiable non-monetary asset without physical substance. Intangible assets are
initially measured at its cost and then carried at the cost less accumulated depreciation and accumulated
impairment, if any.

(ii) Amortization

The other intangible assets are amortized on the straight line method. The Company believes that straight line
method reflects the pattern in which the asset''s future economic benefits are expected to be consumed by the
Company.

The amortization period and amortization method is reviewed at least at the end of each financial year-end and,
if there has been a significant change in the expected pattern of consumption of the future economic benefits
embodied in the asset, the method is changed to reflect the changed pattern. Such a change is accounted for as a
change in an accounting estimate in accordance with INS AS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors.

The amortization expenses on intangible assets with finite lives is recognized in the statement of Profit & Loss
unless such expenditure forms part of carrying value of another asset.

E. Impairment of Tangible & Intangible Assets:

The Company identifies impairable assets at the year-end for the purpose of arriving at impairment loss thereon being
the difference between the book value and recoverable value of relevant assets. Impairment loss, when crystalises,
are charged against revenues for the year.

F. Inventories

(i) Measurement of Inventory

The Company measures its inventories at the lower of cost and net realizable value.

(ii) Cost of Inventory

The cost of inventories shall comprise all costs of purchase including the costs of conversion and other costs
incurred in bringing the inventories to their present location and condition.

Raw materials and stores & spares -

The costs of inventories comprise the purchase price, import duties (where applicable) and other taxes (other
than those subsequently recoverable by the entity from the taxing authorities), and transport, handling and other
costs directly attributable to the acquisition of materials and services in bringing the inventories to their present
location & condition.

Trade discounts, rebates and other similar items are deducted in determining the costs of purchase.

The costs of conversion of inventories include costs directly related to the units of production and a systematic
allocation of fixed and variable production overheads that are incurred in converting materials into finished
goods.

Other costs (if any) are included in the cost of inventories only to the extent that they are incurred in bringing the
inventories to their present location and condition.

The cost of inventories is assigned by weighted average cost formula. The Company uses the same cost formula
for all inventories having a similar nature and use to the Company.

Obsolete, slow moving and defective inventories are identified from time to time and, where necessary; a
provision is made for such inventories.

(iii) Net Realizable Value

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

(iv) Valuation of Spare Parts, Stand-by Equipment and Servicing Equipment

Spare parts, stand-by equipment and servicing equipment are recognized as Property, Plant and Equipment only
if it is probable that future economic benefits associated with them will flow to the Company and their cost can
be measured reliably. Otherwise such items are classified and recognized as Inventory.

G. Financial Instruments
Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value, 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.

Classifications

The Company classifies its financial assets as subsequently measured at either amortised cost or fair value depending
on the company''s business model for managing the financial assets and the contractual cash flow characteristics of
the financial assets.

Financial assets at amortised cost

A financial asset is measured at amortised cost only if both of the following conditions are met:

- it is held within a business model whose objective is to hold assets in order to collect contractual cash flows.

- the contractual terms of the financial asset represent contractual cash flows that are solely payments of
principal and interest.

After initial measurement, such financial assets are subsequently measured at amortised cost using the Effective
Interest Rate (''EIR'') method. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance income
in the Statement of Profit and Loss. The losses arising from impairment are recognised in the Statement of Profit and
Loss.

Financial assets at fair value through Other Comprehensive Income (FVOCI)

Financial assets with contractual cash flow characteristics that are solely payments of principal and interest and held
in a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets
are classified to be measured at FVOCI.

Financial assets at fair value through profit and loss (FVTPL)

Any Financial assets, which does not meet the criteria for categorization as at amortized cost or as FVOCI, is classified
as at FVTPL.

In addition, the company may elect to classify a Financial assets, which otherwise meets amortized cost or FVOCI
criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or
recognition inconsistency (referred to as ''accounting mismatch'').

Equity Instruments

All equity instruments in scope of Ind AS 109 are measured at fair value. On initial recognition an equity investment
that is not held for trading, the Company may irrevocably elect to present subsequent changes in fair value in OCI.
This election is made on an investment-by-investment basis.

All other Financial Instruments are classified as measured at FVTPL.

Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
primarily derecognised (i.e. removed from the company''s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The company has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a ''pass-through''
arrangement; and either (a) the company has transferred substantially all the risks and rewards of the
asset, or (b) the company has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.

When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the
company continues to recognize the transferred asset to the extent of the company''s continuing involvement. In that
case, the company also recognizes an associated liability.

The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that
the company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the company could be required
to repay.

On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount
allocated to the portion of the asset derecognised) and the sum of (i) the consideration received (including any new
asset obtained less any new liability assumed) and (ii) any cumulative gain or loss that had been recognised in OCI is
recognised in the Statement of Profit and Loss.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at
amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant
increase in credit risk.

With regard to trade receivable, the Company applies the simplified approach as permitted by Ind AS 109, Financial
Instruments, which requires expected lifetime losses to be recognised from the initial recognition of the trade
receivables.

Investments

Investments held for less than 12 months are shown as Current Investments & those held for more than 12 months
are shown as Non- Current Investments.

Cash and Cash Equivalents

The company considers all highly liquid financial instruments, which are readily convertible into known amounts of
cash that are subject to an insignificant risk of change in value and having original maturities of three months or less
from the date of purchase, to be cash equivalents. Cash and Cash equivalents consist of balance with banks and cash
in hand which are unrestricted for withdrawal and usage.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
amortised cost, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of amortised cost, net of directly attributable
transaction costs.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial Liabilities measured at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using
the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as
through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are
an integral part of the EIR.

The EIR amortisation is included as finance costs in the Statement of Profit and Loss.

Financial liabilities at fair value through profit and loss include financial liabilities designated upon initial recognition
as at fair value through profit and loss.

Gains or losses on liabilities held for trading are recognised in the Statement of Profit and Loss.

Financial liabilities designated upon initial recognition at fair value through profit and loss are designated as such at
the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL,
fair value gains/ losses attributable to changes in own credit risks are recognized in OCI. These gains/ loss are not
subsequently transferred to the Statement of Profit and Loss. However, the Company may transfer the cumulative
gain or loss within equity. All other changes in fair value of such liability are recognised in the Statement of Profit and
Loss.

Derecognition of financial liabilities

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

H. Revenue Recognition
Sale of Goods

Revenue from the sale of products is recognized when all the following conditions have been satisfied:

(a) the significant risks and rewards of ownership of the goods is transferred to the buyer;

(b) the entity retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;

(c) the amount of revenue can be measured reliably;

(d) it is probable that the economic benefits associated with the transaction will flow;

(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably;

(f) Dividend income from investment is recognized only when the right to receive dividend has been
established.

The Company measures revenue on the basis of the consideration received or receivable taking into account the
amount of any sales returns, trade discounts and volume rebates allowed by the Company.

Interest Income

Interest income from a financial asset is recognized using the effective interest method.

Sale of Services

Revenue from services rendered in recognized as the services are rendered and is booked based on
agreements/arrangements with the concerned parties.

I. Foreign Currency Transactions

Indian Rupee is the functional as well as presentation currency for the Company. A foreign currency transaction is
recorded, on initial recognition in the functional currency, by applying to the foreign currency amount the spot
exchange rate between the functional currency and the foreign currency at the date of the transaction.

At the end of each reporting period, foreign currency monetary items are translated using the closing rate whereas
non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction; and non-monetary items that are measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value was measured.

Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different
from those at which they were translated on initial recognition during the period or in previous Financial Statements
are recognized in the Standalone Statement of Profit and Loss in the period in which they arise.

When a gain or loss on a non-monetary item is recognized in Other Comprehensive Income, any exchange component
of that gain or loss is recognized in Other Comprehensive Income. Conversely, when a gain or loss on a non-monetary
item is recognized in Statement of Profit and Loss, any exchange component of that gain or loss is recognized in
Statement of Profit and Loss.

J. Accounting of Claims

a) Claims receivable are accounted at the time when certainty of receivable is established.

b) Claims raised by the Government Authorities regarding taxes & duties, which are disputed by the company,
are accounted based on the merits of each claim.

K. Employee Benefit

a) Short Term Employee Benefits:

Liabilities for short term employee benefit 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 recognized in respect of employees''
services up to the end of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as ''Employee Benefits Payable'' within ''Other Financial
Liabilities'' in the Balance Sheet.

b) Post-Employment Benefits:

i. Defined Contribution Plans

This benefit includes contribution to Employee''s State Insurance Corporation {ESI} and Provident
Fund Contribution {PF} to the Regional Provident Fund Commissioner. These contributions are
defined as an expense in the Statement Profit & Loss as and when such contributions are due.

ii. Defined Benefit Plans

For Gratuity and compensated leave

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible
employees. The plan provides a lump sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to 15 days salary payable for
each completed year of service or part thereof in excess of six months. Vesting occurs upon completion
of five years of service.

The company has not obtained any independent actuarial valuation report of its liability towards
gratuity and leave encashment payable to its employees Gratuity is provided for on the basis of
actuarial payments made to Life Insurance Corporation of India as per their Group Gratuity Scheme.

c) Other Long Term Employee Benefits - Compensated Absences

The Company provides for encashment of leave or leave with pay subject to certain rules. The employees are
entitled to accumulate leave subject to certain limits for future encashment/availment. The provisions are
presented under provisions (current) in the balance sheet.

L. Cash Flow Statement

Cash flows are reported using the indirect method, whereby Profit Before Tax (PBT) is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and
items of income or expenses associated with investing or financing cash flows. The cash flow from operating, investing
and financing activities of the company is segregated based on the available information.

M. Taxation
Income Tax

Income tax comprises current and deferred tax. It is recognized in Standalone 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.

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.

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 is not recognized for:

i. temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit or loss at the time of the transaction;

ii. taxable temporary differences arising on the initial recognition of goodwill.

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. The existence of unused tax losses is strong evidence that future taxable profit may not be
available. Therefore, in case of a history of recent losses, the Company recognizes a deferred tax asset only to the
extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable
profit will be available against which such deferred tax asset can be realized. Deferred tax assets - unrecognized or
recognized, 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 assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and
assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax
entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will
be realized simultaneously.

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Mar 31, 2015

1. Significant Accounting Policies :

Basis of Accounting and Preparation of Financial Statements

The Financial Statements of the Company have been prepared on accrual method of accounting and under the historical cost convention in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

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.

Tangible Assets

Fixed Assets are stated at cost of acquisition or construction cost less accumulated depreciation. Cost includes related taxes, duties, levies and any cost directly attributable to acquisition and installation of assets.

Depreciation

Depreciation on fixed assets is provided on straight line method on the basis of useful life of the asset as prescribed in Schedule II to the Companies Act, 2013.

Borrowing Cost

All borrowing costs are charged to Statement of Profit & Loss Accounts.

Investment

Investments that are readily realizable and are intended to be held for not more than one year from date, on which such investments are made, are classified as current investments and are carried at cost or fair value, whichever is lower.

Inventories

Inventories of Raw Materials are valued at cost on FIFO basis. Credit for Excise Duty is claimed under modvat in the year of goods received. Stock of stores and spares are stated at Cost. Inventories of Finished Goods are stated at cost or estimated realizable value, whichever is lower. Cost includes related overheads on such goods.

Revenue Recognition

Sales are inclusive of Excise Duty and Net of trade discount. All other incomes are accounted for as and when accrued.

Sales of goods are recognized upon the transfer of significant risks & rewards of ownership of the goods to the customers which generally coincides with their delivery to the customers.

Impairment of Assets

The management periodically assesses using internal and external sources whether there is any indication that an asset may be impaired. Impairment of an asset occurs where carrying value exceeds the present value of cash flow expected to arise from the continue use of the asset and its eventual disposal. The provision for impairment loss is made when recoverable amount of the asset is lower than the carrying amount.

Employees Benefits

a) Employees benefits are recognized as expense in the statement of Profit & Loss for the year in which the related service is rendered.Contribution towards Provident Funds & other funds are recognized as expense.

b) The company is making payments to L.I.C of India towards Group Gratuity Scheme for the employees of the company. The company has not obtained any independent actuarial valuation of its liability towards gratuity and leave encashment payable to the employees of the company in the future. Gratuity is accounted for on the basis of actual payments made to Life Insurance Corporation of India as per their Group gratuity scheme.

Taxes on Income :

Tax expense Comprises Current and deferred Tax. Current Income Tax is calculated in accordance with Tax Laws applicable to the Current Financial Year. The deferred Tax Charge or Credit is recognized using the Tax Rates and Tax Laws that have been enacted by the balance sheet date. Where there are unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainly of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainly of realization in future. At each Balance Sheet date, recognized and unrecognized deferred tax assets are reviewed.

Earnings per Share

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

Cash and Cash Equivalents

In the cash flow statement, cash and cash equivalents include cash in hand, demand and term deposit with Banks.

Segment Reporting

In terms of Accounting Standard - 17 pertaining to "Segment Reporting" segment information has not been given as the Company's activity falls within a single business segment.

Research and Development :

Revenue Expenditure on Research and Development is charged against the profits of the year in which it is incurred.

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Mar 31, 2014

Basis of Preparation of Financial Statements:

These Financial Statements have been prepared to comply with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

Tangible Assets:

Tangible Assets are stated at their cost of acquisition, net of accumulated depreciation. The Company capitalizes all expenses related to the installation of fixed assets but excludes duties and taxes that are recoverable/adjustable subsequently from taxing authorities.

Depreciation:

1. Depreciation on fixed assets is provided on Straight Line Method at the rates specified in Schedule XIV of the Companies Act, 1956. Freehold land is not depreciated.

2. In respect of additions and deletions, depreciation is restricted to the period of use. Assets costing individually Rs.5000/- or less are fully depreciated in the year of addition.

Investment

Investments are stated at cost. Investment intended to be held for more than a year are classified as long term investment.

Inventories

Inventories of Raw Materials are valued at cost on FIFO basis. Credit for Excise Duty is claimed under modvat in the year of goods received. Stock of stores and spares are stated at Cost. Inventories of Finished Goods are stated at cost or net realizable value, whichever is lower. Cost includes related overheads on such goods.

Revenue Recognition

Sales are inclusive of Excise Duty and Net of trade discount. It does not include inter Unit transfers amounting to Rs.67574581.00 (last year Rs.81170370.00) All other incomes are accounted for as and when accrued.

Sales of goods are recognized upon the transfer of significant risks & rewards of ownership of the goods to the customers which generally coincides with their delivery to the customers.

Expenses Recognition

Expenses are accounted for on accrual basis except in case of payment of bonus & leave encashment, where cash basis of accounting is followed. Claims / demand raised by any statutory authorities in connection with taxes & duties which are disputed by the company, are accounted for on the merit of each claim. Gratuity is accounted for on the basis of actual payments made to Life Insurance Corporation of India as per their Group gratuity scheme.

Impairment of Assets

The management periodically assesses using internal and external sources whether there is any indication that an asset may be impaired. Impairment of an asset occurs where carrying value exceeds the present value of cash flow expected to arise from the continue use of the asset and its eventual disposal. The provision for impairment loss is made when recoverable amount of the asset is lower than the carrying amount.

Research and Development:

Revenue Expenditure on Research and Development Is charged against the profits of the year in which it is incurred.

Employees Benefits

The company is making payments to L.I.C of India towards Group Gratuity Scheme for the employees of the company. The company has not obtained any independent actuarial valuation of its liability towards gratuity and leave encashment payable to the employees of the company in the future. Gratuity is accounted for on the basis of actual payments made to Life Insurance Corporation of India as per their Group gratuity scheme.

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Mar 31, 2013

Basis of Preparation of Financial Statements :

These Financial Statements have been prepared to comply with applicable accounting principles in india, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

Tangible Assets :

Tangible Assets are stated at their cost of acquisition, net of accumulated depreciation. The Company capitalizes all expenses related to the installation of fixed assets but excludes duties and taxes that are recoverable/adjustable subsequently from taxing authorities.

Depreciation :

1. Depreciation on fixed assets is provided on Straight Line Method at the rates specified in Schedule XIV of the Companies Act, 1956. Freehold land is not depreciated.

2. In respect of additions and deletions, depreciation is restricted to the period of use. Assets costing individually Rs.5000/- or less are fully depreciated in the year of addition.

Investment

Investments are stated at cost. Investment intended to be held for more than a year are classified as long term investment.

Inventories

Inventories of Raw Materials are valued at cost on FIFO basis. Credit for Excise Duty is claimed under modvat in the year of goods received. Stock of stores and spares are stated at Cost. Inventories of Finished Goods are stated at cost or net realizable value, whichever is lower. Cost includes related overheads on such goods.

Revenue Recognition

Sales are inclusive of Excise Duty and Net of trade discount. It does not include inter Unit transfers amounting to Rs.81170370.00 (last year Rs.60615162.00) All other incomes are accounted for as and when accrued.

Sales of goods are recognized upon the transfer of significant risks & rewards of ownership of the goods to the customers which generally coincides with their delivery to the customers.

Expenses Recognition

Expenses are accounted for on accrual basis except in case of payment of bonus & leave encashment, where cash basis of accounting is followed. Claims / demand raised by any statutory authorities in connection with taxes & duties which are disputed by the company, are accounted for on the merit of each claim. Gratuity is accounted for on the basis of actual payments made to Life Insurance Corporation of India as per their Group gratuity scheme.

Impairment of Assets

The management periodically assesses using internal and external sources whether there is any indication that an asset may be impaired. Impairment of an asset occurs where carrying value exceeds the present value of cash flow expected to arise from the continue use of the asset and its eventual disposal. The provision for impairment loss is made when recoverable amount of the asset is lower than the carrying amount.

Research and Development:

Revenue Expenditure on Research and Development is charged against the profits of the year in which it is incurred.

Employees Benefits

The company is making payments to L.I.C of India towards Group Gratuity Scheme for the employees of the company. The company has not obtained any independent actuarial valuation of its liability towards gratuity and leave encashment payable to the employees of the company in the future. Gratuity is accounted for on the basis of actual payments made to Life Insurance Corporation of India as per their Group gratuity scheme.

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Mar 31, 2012

1.1 Basis of Preparation of Financial Statements

The Financial Statements have been are prepared on a going concern basis under the historical cost convention, (except in case of certain fixed assets which are re-valued, in accordance, in material respects, with the generally accepted accounting principles in India), the applicable Accounting Standards as notified under the Companies (Accounting Standards) Rules 2006("AS")and provisions of the Companies Act, 1956, as adopted consistently by the company. The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. Where it is not possible to determine the quantum of accrual with reasonable certainty e.g. insurance and other claims, refund of custom/excise duty etc., these continue to be accounted for on settlement basis.

1.2 Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

1.3 Fixed Assets

Fixed Asset are stated at cost (ess accumulated depreciation. Cost is inclusive of freight, duties, taxes, incidental expenses related to acquisition/installation, adjusted for revaluation, if any,

1.4 Depreciation and Amortisation

Depreciation is charged under Straight Line Method basis in accordance with the rates and manner specified in ScheduleXIVof the Companies Act, 1956.

Amortisation in respect of intangible assets is provided on straight line basis over the period of underlying contract or estimated period of its economic life.

1.5 Impairment of Assets

An asset is treated as impaired when the carrying cost of the same exceeds its recoverable amount. An impairment is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

1.6 Investment

Long Term investments are stated at cost less provision for diminution in value other than temporary, if any.

1.7 Inventories

Inventories are valued at lower of cost or net realizable value, except waste, scrap and by-products valued at net realizable value. Cost is determined on weighted average basis. Finished goods and process stock include cost of conversion and other costs incurred in bringing the inventories to the present location and condition. '

1.8 Revenue Recognition

Sales are recognized on transfer of significant risks and rewards of the ownership of the goods to the buyer and are reported net of turnover/trade discounts, returns and claims. Revenue from job work or services are accounted as and when incurred.

Interest income is accounted on time proportion basis taking into account the amount outstanding and applicable interest rate.

1.9 Employee Benefits

Employee Benefits are accrued in the year in which the services are rendered by the employees. The contributions to Defined Contribution Schemes such as Provident Fund etc are recognized as and when incurred. The liability on account of encashment of un availed accumulated privilege leave of employees as at the balance sheet date is determined by the company's own calculations and accordingly provided in the books of account. No independent actuarial valuation has been made to determine liability for leave encashment.

The company has made payments to L.I .C. Of India towards group Gratuity scheme for the employees of the company. However, the Gratuity liability has not been determined by any independent valuer and has been provided as per the company's own rules & calculations.

1.10 Borrowing Cost

Borrowing costs incurred in relation to the acquisition, construction of assets are capitalized as part of costs of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which these are incurred.

1.11 Research & Development Expenditure

Research and Development expenses of revenue nature are charged to the Profit & Loss account under respective heads of account and Capital expenditure is added to the cost of Fixed Assets in the year in which it is incurred.

1.12 Leases

Leases where the lessor retains substantially all the risks and rewards of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as expense in the Profit and Loss Account as per the term of the lease.

1.13 Taxation

Tax liability is estimated considering the provisions of the Income Tax Act, 1961. Deferred tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. On prudent basis, Deferred tax asset recognized and carried forward to the extent only when there is reasonable certainty that the assets will be adjusted in future.

1.14 Government Grants

Where the grant or subsidy relates to an asset, its value is deducted in arriving at the carrying amount of the related asset. Project capital subsidy is credited to Capital Reserve. Other government grants or subsidies including export incentives are credited to Profit and Loss account or deducted from related expenses.

1.15 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized not disclosed in the financial statements.

1.16 Foreign Currency Transactions and Forward Contracts

Foreign currency transactions, on initial recognition, are recorded by applying to the foreign currency amount the exchange rate at the date of the transaction. At each balance sheet date, foreign currency monetary items are reported using the closing rate and non-monetary, carried at historical cost denominated in foreign currency are reported using the exchange rate at the date of the transaction.

Exchange differences arising on the settlement of monetary items or on reporting monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

Premium paid/received on a foreign currency forward contract is recognized as income/expenditure over the life of the contract

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Mar 31, 2010

The Accounts are prepared to comply with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

FIXED ASSETS :

Fixed Assets are stated at their cost of acquisition. The Company capitalises all expenses related to the installation of fixed assets but excludes duties and taxes that are recoverable subsequently from taxing authorities.

DEPRECIATION :

1. Depreciation on fixed assets is provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956. Freehold land is not depreciated.

2. In respect of additions & deletions, depreciation is restricted to the period of use. Assets costing individually Rs. 50007- or less are fully depreciated in the year of addition.

INVESTMENTS :

Investments are stated at cost. Investments intended to be held for more than a year are classified as long term investments.

INVENTORIES :

Inventories of Raw Materials are valued on FIFO basis at Direct cost, Credit for Excise Duty is claimed under modvat in the year of goods received. Stock of stores and spares are stated at Cost. Inventories of Finished Goods are stated at cost or net realisable value, whichever rs lower. Cost includes related overheads on such goods.

REVENUE RECOGNITION :

Sales are inclusive of Excise Duty and other taxes and Net or trade discount. It does not include inter Unit transfers amounting to Rs.35489780.00 ( last year Rs.41842825.00) All other income are accounted for as and when accrued.

EXPENSES RECOGNITION :

Expenses are accounted for on accrual basis except in case of payment of bonus & leave encashment, where cash basis of accounting is followed. Claims / demand raised by any statutory authorities in connection with taxes & duties which are disputed by the company, are accounted for on the merit of each claim. Gratuity is accounted for on the basis of actual payments made to Life insurance Corporation of India as per their Group gratuity scheme.

IMPAIRMENT OF ASSETS:

The management periodically assesses using internal and external sources whether there is any indication that an asset may be impaired. Impairment of an asset occurs where carrying value exceeds the present value of cash flow expected to arise from the continue use of the asset and its eventual disposal. The provision for impairment loss is made when recoverable amount of the asset is lower than the carrying amount.

RESEARCH AND DEVELOPMENT:

Revenue Expenditure on Research and Development is charged against the profits of the year in which it is incurred.

RETIREMENT BENEFIT :

The company has made payments to L.I.C. OF INDIA LTD. towards group gratuity scheme for the employees of the company.

CONTINGENT LIABILITIES:

As reported last year that Demands amounting to Rs. 1591804.00 were raised relating to sales tax and entry tax assessments by the Sales Tax officer, Rajgangpur, Sundergarh, Orissa, for the period 2001-2004 against which the company has paid Rs.1000000.00 under protest and had filed an appeal with the concerned authority. The directors of the company are of opinion that the company has a strong case to succeed.

The Joint Director, Director Of Industries, Chhatisgarh has vide their letter no 48/ F.A./2002/756 dated 22.12.2007 has extended the sales tax exemption for additional three years from 20.12.1999 to 19.12.2002 by amending the eligibility period from 20.12.1993 to 19.12.2002. Accordingly fresh Sales Tax assessments for the year 1999-2000, 2001-2002,2002-2003 has been completed resulting in nil demand for the said years. Assessments for year 2000-2001, is in process and the company hopes that the remaining demands amounting to Rs.62.07 lacs will also be nullified as has been done in revised assessment for the other years.