Starlite Components Ltd. कंपली की लेखा नीति

Mar 31, 2025

(a) Basis of preparation and measurement

The financial statements of the Company have been prepared in accordance with the Indian
Accounting Standards (Ind AS) to comply with the Section 133 of the Companies Act, 2013 ("the 2013
Act") and the relevant provisions and amendments, as applicable. The financial statements are
prepared under the historical cost convention method unless otherwise specified and presented in
Indian Rupee (INR), which is also the company''s functional currency. All the amounts have been
rounded-off to the rupees in lakhs, unless otherwise indicated.

The financial statements of the Company for the year ended March 31, 2025 were approved by the
Monitoring Committee and took the same on record basis recommendation from the suspended
directors and authorized for issue on May 27, 2025.

(b) Operating cycle

All assets and liabilities have been classified as current or non-current as per the Company''s normal
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 has identified twelve months as its
operating cycle.

(c) Fair value measurement

The Company''s accounting policies and disclosures require the measurement of fair values for
financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values.
The management regularly reviews significant unobservable inputs and valuation adjustments.

When measuring the fair value of a financial asset or a financial liability, the Company uses observable
market data as far as possible. Fair values are categorized into different levels in a fair value hierarchy
based on the inputs used in the valuation techniques as follows:

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

• Level 2 - inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 - inputs for the asset or liability that are not based on observable market data.

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair
value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the
fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognizes transfers between levels of the fair value hierarchy at the end of the
reporting period during which the change has occurred.

(d) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured, regardless of when the payment is being made.
Revenue is measured at the fair value of amount received or receivable.

Sales are recognized when significant risks & rewards of ownership of the goods are transferred to the
buyer, usually on the delivery of goods.

Interest income is recognized using effective rate of interest method.

Other income (including rent, income from sale of scrap, income from claims received, etc.) is
recognized on accrual basis. However, where the ultimate collection of the same is uncertain, revenue
recognition is postponed to the extent of uncertainty.

Dividend income is accounted when right to receive is established.

(e) Property, Plant and Equipment:

Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and
impairment, if any. The cost of property, plant and equipment includes purchase price, including
freight, duties, taxes 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.

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.

Property, plant and equipment are derecognized from financial statements, either on disposal or
when no economic benefits are expected from its use or disposal. The gain or losses arising from
disposal of property, plant and equipment are recognized in the Statement of Profit and Loss in the
year of occurrence.

Assets under construction include the cost of property, plant and equipment that are not ready to use
at the balance sheet date. Advances paid to acquire property; plant and equipment before the
balance sheet date are disclosed under other non-current assets. Assets under construction are not
depreciated as these assets are not yet available for use

Subsequent expenditures

Subsequent expenditures related to an item of property, plant and equipment are added to its
carrying value only when it is probable that the future economic benefits from the asset will flow to
the Company and cost can be reliably measured. All other repair and maintenance costs are
recognized in the Statement of Profit and Loss during the year in which they are incurred.

Intangible Assets

An intangible asset shall be recognized if, and only if:

(a) it is probable that the expected future economic benefits that are attributable to the asset will
flow to the Company; and

(b) the cost of the asset can be measured reliably.

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets
are amortized over their respective individual estimated useful lives on a straight-line basis, from the
date that they are available for use.

Computer softwares / licenses are carried at historical cost. They have an expected finite useful life of
3 years and are carried at cost less accumulated amortization and impairment losses. Computer
licenses which are purchased on annual subscription basis are expensed off in the year of purchase.

Depreciation and amortization

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its
estimated residual value.

Depreciation / Amortization on property, plant &equipment of the Company has been provided using
the straight-line method based on the useful life specified in Schedule II to the Companies Act, 2013.

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.

Assets costing less than INR 5,000 are depreciated at 100% in the year of acquisition.

Assets acquired on lease and leasehold improvements are amortized over the primary period of the
lease on straight line basis.

The estimated useful lives and residual values of the property, plant & equipment and intangible
assets are reviewed at the end of each reporting period, with the effect of any changes in estimate
accounted for on a prospective basis.

Investment property and depreciation

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial
recognition, investment properties are stated at cost less accumulated depreciation and accumulated
impairment loss, if any. The Company does not have any investment property as on the date of
balance sheet.

f) Impairment of non-financial assets:

The carrying values of assets / cash generating units at each balance sheet date are reviewed for
impairment if any indication of impairment exists.

If the carrying amount of the assets exceeds the estimated recoverable amount, an impairment loss is
recognized for such excess amount. The impairment loss is recognized as an expense in the
standalone statement of profit and loss, unless the asset is carried at revalued amount, in which case
any impairment loss of the revalued asset is treated as a decrease to the extent a revaluation reserve
is available for that asset.

When there is indication that an impairment loss recognized for an asset (other than a revalued asset)
in earlier accounting periods which no longer exists or may have decreased, such reversal of
impairment loss is recognized in the standalone statement of profit and loss, to the extent the amount
was previously charged to the standalone statement of profit and loss. In case of revalued assets, such
reversal is not recognized.

(g) Foreign currency transactions:

Transactions in foreign currencies are translated into the Company''s functional currency at exchange
rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated
into the functional currency at the exchange rate at that date.

Non-monetary items that are measured based on historical cost in a foreign currency are translated at
the exchange rate at the date of the transaction.

Exchange differences arising on the settlement of monetary items or on translating monetary items at
rates different from those at which they were translated on initial recognition during the period or in
previous standalone financial statements are recognized in the standalone statement of profit and
loss in the period in which they arise.

(h) Investment in subsidiaries, joint ventures, partnership firms and associates:

Investments in equity shares and preference shares of subsidiaries, joint ventures, partnership firms
and associate are recorded at cost and reviewed for impairment at each reporting date and if any
impairment is required, the same is recognized in the Statement of Profit and Loss.

(i) Inventories:

• Inventories are valued at cost or market price whichever is less in the case of finished and semi¬
finished goods and at cost in case of raw material. Cost comprises of cost of purchase, cost
conversion & other cost for bringing the inventory to present location and condition.

• The net realizable value of work-in-progress is determined with reference to the selling prices of
related finished products.

• Raw material, components and other supplies held for use in the production of finished products
are not written down below cost except in cases where material prices are declined, and it is
estimated that the cost of finished products will exceed their net realizable value.

• Traded goods are valued at cost of purchase and other costs incurred in bringing the inventories to
their present location and condition.

• The value of write down and circumstances, if any are disclosed in the notes pertaining to the
inventories. There is no reversal of write down.

• Inventories are not pledged as security for any liabilities.

(j) Income Tax:

The tax expense comprises current and deferred tax. Tax is recognized in the statement of profit and
loss except to the extent that it relates to items recognized directly in equity or in OCI.

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. It is measured
using tax rates enacted or substantively enacted at the reporting date.

Current tax assets and liabilities are offset only if, the Company:

i) has a legally enforceable right to set off the recognised amounts; and

ii) intends either to realise the asset and settle the liability on a net basis or simultaneously.

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 amounts used for taxation purposes.

Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary
differences to the extent there is convincing evidence that sufficient taxable profit will be available
against which such deferred tax asset can be realized. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that itis no longer probable that the related tax benefit
will be realized; such reductions are reversed when the probability of future taxable profits improves.

Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent
that it has become probable that future taxable profits will be available against which they can be
used.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences
when they reverse, using tax rates enacted or substantively enacted at the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in
which the Company expects, at the reporting date, to recover or settle the carrying amount of its
assets and liabilities.

Deferred tax assets and liabilities are offset only if:

i) the Company has a legally enforceable right to set off current tax assets against current tax
liabilities; and

ii) The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same
taxation authority on the same taxable entity.

Minimum Alternative Tax (MAT)

MAT credit is recognized as a deferred tax asset only when and to the extent there is convincing
evidence that the Company will pay normal tax during specified period. MAT credit is reviewed at
each balance sheet date and written down to the extent the aforesaid convincing evidence no longer
exists.

(k) Employee benefits:

Short term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the
services rendered by employees are recognized as an expense during the period when the employees
render the services.

Defined contribution plans

The Company''s contribution to Provident Fund, Pension, Superannuation Fund and Employees State
Insurance Fund are considered as defined contribution plans, as the Company does not carry any
further obligations apart from the contribution made to the respective fund/scheme and are charged
as an expense based on the amount of contribution required to be made.

Defined benefit plans

The liability recognized in the balance sheet in respect of defined benefit plans is the present value of
the defined benefit obligation at the end of the reporting period. The defined benefits obligation is
calculated annually by actuaries using the projected unit credit method.

The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation. This cost is included in employee benefits expense in the Statement of Profit and
Loss. Remeasurement gain and losses arising from experience adjustments, changes in actuarial
assumptions are recognized in the period in which they occur, directly in other comprehensive income
(OCI). They are included in retained earnings in the Statement of Change in Equity and in the Balance
Sheet.

Leave Entitlement

Leave entitlement are provided based on an actuarial valuation, similar to that of gratuity benefit. Re¬
measurement, comprising of actuarial gains and losses, in respect of leave entitlement are recognised
in the Statement of Profit and Loss in the period in which they occur.

(l) Leases:

Finance Lease

Agreements are classified as finance leases, if substantially all the risks and rewards incidental to
ownership of the leased asset is transferred to the lessee.

Operating Lease

Agreements which are not classified as finance leases are considered as operating lease.

Operating lease payments/income are recognized as an expense/income in the standalone statement
of profit and loss on a straight-line basis over the lease term unless there is another systematic basis
which is more representative of the time pattern of the lease.

(m) Borrowing Costs:

Borrowing costs are interest and other costs that the Company incurs in connection with the
borrowing of funds and is measured with reference to the effective interest rate applicable to the
respective borrowing.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized
as part of the cost of the respective asset. There are no borrowing costs capitalized during the year.

All other borrowing costs are recognized as an expense in the period in which they are incurred.

(n) Related Parties

The disclosures of transactions with related parties, their outstanding balances, terms & conditions,
securities offered and guarantees given are disclosed in Note No. 24. The company has not made
provision for doubtful debts in respect of any of the related parties. The company has not written-off
or written back any amount in respect of above related parties.

(o) Earnings per share:

Basic earnings per share is calculated by dividing the profit / (loss) after tax by the weighted average
number of equity shares outstanding during the year.

Diluted earnings per share is calculated by dividing the profit / (loss) after tax as adjusted for dividend,
interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive
potential equity shares, by the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity shares which could have been
issued on conversion of all dilutive potential equity shares.

(p) Cash and cash equivalents:

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand, demand deposit
and short-term deposits with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short
term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral
part of the Company''s cash management.

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Mar 31, 2018

NOTE-1 TO THE FINANCIAL STATEMENTS -1. Reporting Entity:

i) M/s. Starlite Components Limited is a public limited company domiciled in India and incorporated under the provisions of

Companies Act, 1956 CIN L31200MH1991PLC063980. The company is in the manufacturing and selling of Electronic

Ballast and LED Products with factory situated at Satpur as well as Vilholi, Dist- Nashik and office at Satpur, Dist -

Nashik. The shares of the company are listed on the Bombay Stock Exchange (Scrip Code - 517548)

2. Basis of preparation:

A. Statement of compliance:

i) Since this is the first-time adoption of Ind AS by the Company, Ind AS 101, First-time adoption of Indian Accounting Standards has been applied.

ii) The financial statements of the Company upto and for the year ended 31st March 2017 were prepared in accordance with Companies (Accounting Standards) Rules, 2006, notified under Section 133 of the Act and other relevant provisions of the Act.

Hi) These Financial statements have been prepared in compliance with the applicable accounting Principles in India in all material respects, Indian Accounting Standards notified under section 133 of Companies Act, 2013 read with Companies (Indian Accounting Standards) rules, 2015. As a first-time adopter of IND AS, the Company has opted for various optional exemption provided in IND AS 101 - First time adoption of IND AS - as per note attached herewith and has provided the required reconciliations.

iv) The financial statements were authorized for issue by the Board of Directors of the Company on 30th May 2018.

v) The accounting policies relevant to understanding of the financial statements are disclosed in the following notes (Note 3).

B. Functional and presentation currency:

These financial statements are presented in Indian Rupees (INR), which is also the company''s functional currency. All amounts have been rounded-off to the nearest rupee, unless otherwise indicated.

C. Basis of Measurement:

Financial statements are prepared under historical cost convention on accrual basis in accordance with the requirements of Companies Act 2013 except otherwise stated. Accounts are prepared on going concern basis.

D. Use of estimates:

The preparation of financial statements requires the management of the Company to make an estimate & assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of financial statements & reported amounts of Income & Expenses during the year. The estimates are based on management''s best knowledge of current events and actions. However, due to uncertainty of the assumptions and estimates the carrying amounts of the assets & liabilities may require material adjustment in future periods.

3. Significant Accounting Policies:

i) Inventories find AS 2) -

- Inventories are valued at cost or market price whichever is less in the case of finished and semi-finished goods and at cost in case of raw material. Cost comprises of cost of purchase, cost of conversion & other costs for bringing the inventory to present location & condition.

- The net realizable value of work-in-progress is determined with reference to the selling prices of related finished products.

- Raw material, components and other supplies held for use in the production of finished products are not written down below cost except in cases where material prices have declined, and it is estimated that the cost of finished products will exceed their net realizable value.

- Traded goods are valued at cost of purchase and other costs incurred in bringing the inventories to their present location and condition.

- The value of write down & circumstances, if any, are disclosed in the notes pertaining to the inventories. There is no reversal of write down.

- Inventories are not pledged as security for any liabilities.

ii) Property. Plant & Equipment find AS16)-

a. Recognition & measurement:

- Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and accumulated impairment losses, if any.

- 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, any directly attributable cost of bringing the items 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.

- There is no self-constructed property, plant & equipment.

- Property, Plant & Equipment which is not yet ready for its intended use are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

- 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 profit or loss.

- There is no temporarily idle PPE.

- No item of PPE has been fully depreciated and still in use.

b. Transition to Ind AS:

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

c. Subsequent Expenditure:

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

d. Depreciation:

- Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual values over their estimated useful life using straight line method and is generally recognized in the statement of profit & loss. Depreciation on addition is provided on pro-rata basis i.e from the date on which asset is ready is use. The carrying amount of Property, Plant & Equipment as on 31st March 2014 is depreciated over remaining useful life of the assets after reassessing the useful life of the asset. The assets acquired on or after 01/04/2014 are depreciated according to the useful life of such asset as specified in Schedule II of Companies Act, 2013. While accounting the Property, Plant & Equipment, the principle of component accounting is followed in case of significant components of Property, Plant & Equipment and for depreciating the significant components, the useful life of each significant component is considered separately apart from the remaining parts of the Property, Plant & Equipment.

iii) Revenue find AS 18)-

- Domestic sales - The Company recognizes revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the Company. Revenue from rendering of services is recognized by reference to stage of completion of transaction at the end of reporting period.

- Rental income- Rental income is recognized as part of revenue from operations in profit & loss account.

- Dividend Income - Dividend income is accounted for when the right to receive is established.

- Interest income - Interest income is recognized using effective rate of interest method.

- There are no amounts of revenue arising from exchange of goods or services.

iv) Employee Benefits find AS 19) -

a. Shortterm employee benefits:

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services.

b. Defined contribution plans:

The Company''s contribution to Provident Fund, Pension, Superannuation and Employees State Insurance Contribution are considered as defined contribution plans, as the Company does not carry any further obligations apart from the contribution made to the respective funds/ scheme and are charged as expense based on the amount of contribution required to be made.

c. Defined benefit plans:

The liability recognized in the balance sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period. The defined benefit obligation is calculated annually by the Company as per the provisions of the Payment of Gratuity Act, 1972. The Company has not opted for actuarial valuation of the defined benefit plans.

d. Compensated Absences:

The Company does not provide for the liabilities for accumulated leave.

v) Effects of changes in foreign exchange rates find AS 21) -

- The export sales are accounted with reference to the Bill of Lading at the exchange rates prevailing on the transaction date.

- The imports are accounted with reference to the bill of entry at the exchange rates prevailing on the transaction date.

- Foreign exchange gains or losses on realization and payment are dealt with, as such, in the Profit and Loss account.

- At the close of the year, all foreign currency liabilities and current assets are stated at the relevant exchange rate prevailing at the close of the year. The exchange differences arising from foreign currency transactions are dealt with, as such, in the Profit & Loss Account.

- There are no foreign currency transactions on account of capital goods.

- Since there is no OCI in the current year, there are no exchange differences on OCI. The reconciliation of the exchange differences on OCI and the beginning and end of the year is not required.

- The functional currency and the presentation currency of the Company is same.

vi) Borrowing Costs find AS 23) -

There are no borrowing costs capitalized during the period.

vii) Related Partv find AS 24) -

- The Company is an associate of Solarcopyer Limited (CIN: U21098MP1976PLC001379). The parent company holds 28.71% shares in the Company.

- Other related parties are as follows -

a. Key Management Personnel include:

1. Mr. ArvindBharati

2. Smt. Rochana Bharati

3. Mrs. Smita Patodkar

4. Mr. Sajid Shaikh

b. Enterprises and relatives of kev management include:

1. Mrs. AshuBharati

2. Mr. Ravindra Bharati

3. M/s Chetana Enterprises

4. Starlite Lighting Limited

5. M/s. Reprolite Papers (I) Private Limited

6. M/s. Virtuoso Optoelectronics Private Limited

- The disclosures of transactions with related parties, their outstanding balances, terms & conditions, securities offered and guarantees given are disclosed in Note No. 44.

- The company has not made Provision for doubtful debts in respect of any of the related parties.

- The company has not written-off or written back any amount in respect of above related parties.

viii) Earnings per share find AS 33) -

- The calculation of basic and dilutive Earnings per share is disclosed in Note No. 46.

- The potential dilutive equity which is not considered in the calculations of EPS is Rs. 12,31,71,345/-. The application money is received by the Company during the year. However, since the process of increase in authorized capital was still in progress with the ROC an on the date of balance sheet, the same is disclosed in Current Financial Liabilities.

- The Company has not issued any bonus shares or undergone share split or reverse share split during the year.

- There is no adjustment in basic and dilutive EPS on account of errors or changes in accounting policies accounted for retrospectively.

- The Company does not have any discontinued operation.

ix) Impairment find AS 36) -

- The Company has not recognized any impairment losses in the Statement of Profit &Loss and OCI.

- There are no impairment losses reversed in the Statement of Profit & Loss and OCI during the period.

x) Provisions. Contingent Assets and Contingent Liabilities find AS 37) -

- Provisions in respect of present obligations arising out of past events are made in accounts when reliable estimates can be made of the amounts of obligations.

- Provisions are not discounted to their present value and reviewed at each reporting date.

- Details of long term and short-term provisions are disclosed in Note No. 45.

- Contingent liabilities & commitments are not accounted but disclosed separately in Note No. 47.

- Contingent assets are neither accounted nor disclosed in the financial statements.

xi) Intangible assets find AS 38) -

a. Recognition & measurement:

- Intangible Assets acquired separately are recognized at cost less accumulated amortization and impairment.

- There are no internally generated intangible assets.

- Subsequent recognition is capitalized only when it increases future economic benefits embodied in the specific asset to which it relates.

b. Transition to Ind AS:

On transition to Ind AS, the company has elected to continue with the carrying value of all of its intangible assets recognized as at 1st April 2017, measured as per the previous GAAP, and use that carrying value as the deemed cost of such intangible assets.

c. Subsequent expenditure:

All other subsequent expenditure is recognized in profit or loss as incurred.

d. Amortization:

Amortization is done on straight line basis over estimated useful economic life and the amortization period and method are reviewed at the end of each financial year.

xii) Investment Property find AS 40) -

The Company does not have any investment property as on the date of balance sheet.

xiii) Operating Segments find AS 105) -

- The primary operating segment of the Company is business segment.

- Since majority of the assets are located at single place and are of common nature, Management has decided not to bifurcate the same into segment wise assets and liabilities.

- The Geographic Segments identified, as Secondary Segments are “Domestic Market” and “Export Market”. The Export Market Revenue is Nil. The entire capital employed is within India.

xiv) Financial Instruments find AS 109) f.read with Ind AS 107. Financial instruments disclosures and Ind AS 113. Fair Value Measurement! -

- The Company does not hold any equity instruments for trading.

- All other equity instruments are measured at fair value through other comprehensive income (FVTOCI). The classification is made on initial recognition and is irrevocable.

- The unquoted equity instruments held by the Company are long term investment and are disclosed using cost approach (Level 3).

xv) Fair Value Measurement find AS 113)-

- The accounting policies and disclosures require measurement of fair values for financial assets and financial liabilities. The Company has availed exemption from disclosure at fair value as per Ind AS 101 “First-time adoption of Ind AS”.

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

a. Level 11nput-

When quoted prices in active market for identical Assets and Liabilities are available, valuation should be done at quoted price only. It is also called observable input.

b. Level2lnput-

When quoted prices are not available but prices of similar Assets and Liabilities are available, valuation should be done at level 2 input price. It is also called observable input. This price needs to be adjusted to condition or location of Asset, comparability with similar Asset and volume of activity in the market.

c. Level 3 Input -

These are called unobservable input. Under this valuation is done by using valuation techniques like market approach, cost approach, income approach etc.

4. Other disclosures -

i) Cash Flow Statement(lndAS7)~

- Cash flow statement is prepared by the indirect method and presents cash flows from operating, investing and financing activities of the Company.

- Cash flow is not incurred for obtaining or losing control of subsidiaries.

- Amount of significant cash & cash equivalent balances held by the Company that are not available for use - Nil

- Amount of undrawn borrowing facilities available for future operating activities and to settle capital commitments -Nil

- Aggregate amount of cash flows that represent increase in operating capacity is disclosed in the cash flow statement in “Cash flows from investing activities”.

- Since there is only one reportable segment, no separate cash flow arising from operating, investing and financing activity for separate segments are given.

ii) Accounting policies. Changes in estimates and errors find AS 8) -

- The initial application of Ind AS or first-time adoption does not have any significant effect on the current period, prior period or future period.

- After the first-time adoption of Ind AS, there is no change in the accounting estimates that has an effect in the current period or expected to have an effect on the future period.

- After the first-time adoption of Ind AS, there are no prior period errors which require any correction in the current period.

iii) Events after reporting period find AS10)-

There are no events occurring after the reporting period which will require amendment to the financial statements after the issue.

iv) Income Taxflnd AS 12)-

- Current taxes and deferred taxes are presented in the statement of profit and loss and the relevant notes.

- There is no previously unrecognized tax loss or tax credit or temporary difference of prior period.

- There is no deferred tax expense arising from write down or reversal of write down.

- There is no tax expense relating to changes in accounting policies an prior period errors.

- There are no items of current or deferred tax that are charged or credited directly to equity.

- There is no OCI and hence no tax component related to OCI.

- During the current year the Company has deferred tax liability.

5. First-time adoption of Ind AS

- The accounting policies set out in Note 2A have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31,2017 and in the preparation of an opening Ind AS balance sheet as at April 01,2016 (the Company''s date of transition to Ind AS). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (as amended) and other relevant provisions of the Act (“Indian GAAP” or “previous GAAP”). The effects of the transition to Ind AS on equity and total comprehensive income are presented in this section and are further explained in the following notes.

- Ind AS101 allows first-time adopters certain exemptions/exceptions from the retrospective application of certain requirements under Ind AS. In preparing these financial statements, the Company has applied the following exemptions:

a. Deemed cost for property, plant and equipment and intangible assets - Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. Accordingly, the Company has elected to measure all of its property, plant and equipment at their previous GAAP carrying value and use that as its deemed cost as at the date of transition (April 01,2016).

b. Fair value measurement of financial assets and financial liabilities - Ind AS 101 permits a first-time adopter to apply the requirements of fair value determination prospectively to transactions entered into on or after the date of transition to Ind AS.

6. Reconciliation between previous GAAP & Ind AS:

The following reconciliations provide the effect of transition to Ind AS from previous GAAP in accordance with Ind

AS 101 -

Notes -

1. Property, Plant & Equipment given on lease - Nil

2. Assets retired from active use & held for disposal - Nil

3. Assets acquired through business combinations - Nil

4. Increases or decreases resulting from revaluations and from impairment losses recognized or reversed directly in revaluation surplus - Nil

5. Impairment loss recognized in the statement of Profit & Loss - Nil 6.Impairment loss reversed in the statement of Profit & Loss - Nil

7. Net exchange differences arising on the translation of the financial statements of a non-integral foreign operation in accordance with Ind AS 21 - Nil

8. The Term Loan from ICICI Bank Limited (Car Loan A/c No. 20956) has been obtained against Hypothecation of 1 Vehicle. The amount outstanding is Rs. 1,96,204/- as on 31/03/2018 ; Rs. 5,24,884/- as on 31/03/2017 and Rs. 8,35,227/- as on 01/04/2016.

9. The Term Loan form ICICI Bank Limited (Car Loan A/c No. 22954) has been obtained against Hypothecation of 1 vehicle. The amount outstanding is Rs. 11,52,054/- as on 31/03/2018; Rs. 18,70,530/- as on 31/03/2017 and Rs. 25,19,240/- as on 01/04/2016 .

10. The Term Loan from HDFC Bank Limited has been obtained against Hypothecation of 1 Vehicle. The amount outstanding is Rs. 9,77,520/- as on 31/03/2018; R s 14,09,540.58/- as on 31/03/2017; Rs. 18,32,797/- as on 01/04/2016.

11 .The amount of expenditure recognized in the carrying amount of an item of Property, Plant & Equipment in the course of its construction during the current financial year - Nil

12.The amount of contractual commitments for the acquisition of Property, Plant & Equipment - Nil

13. The amount of compensation from third parties for items of Property, Plant & Equipment that were impaired, lost or given up that is included in the statement of profit and loss - Nil

14. Spare Parts capitalized from Inventory of the company - Nil

Notes -

1. Impairment losses recognized in the statement of Profit & Loss during the period - Nil

2. Impairment losses reversed in the statement of Profit & Loss during the period - Nil

3. There are no significant restrictions on the right of ownership of any intangible assets.

4. Amount of commitment for acquiring intangible assets - Nil

5. Aggregate amount of R&D expenditure recognized as expenditure during the period - Nil

6. Life of asset -10 years

Guarantees

Contingent liabilities related to Guarantees amounting to Rs. 15,20,556/- are outstanding bank guarantees as on 31st March 2018. Bank Gurantees are given as per the tender terms to Karnataka Renewable Energy Development Limited(KREDL), National Aluminum Co. Ltd. (NALCO)and Ashoka Buildcon.

There is uncertainly of outflow because the Company has filed appeals with Sales Tax Tribunal against these orders and the said appeals are pending as on 31st March 2018.

Possibility of reimbursement - Nil Interest on Sales Tax payable

Contingent liabilities related to income tax demand amounting to Rs. 64,44,154/-as on 31st March 2018 is outstanding for AY 2004-05 against order of income Tax Department.

There is uncertainly of outflow because the Company has filed appeal with Mumbai High Court against this order and the said appeal is pending as on 31st March 2018.

Possibility of reimbursement - Nil

Income Tax Demand Payable

Contingent liabilities related to income tax demand amounting to Rs. 64,44,154/-as on 31st March 2018 is outstanding for AY 2004-05 against order of income Tax Department.

There is uncertainly of outflow because the Company has filed appeal with Mumbai High Court against this order and the said appeal is pending as on 31st March 2018.

Possibility of reimbursement - Nil

Non Receipt ofC-Form Liability

Contingent liabilities related to C forms amounting to Rs.31,84,835 is due to non-receipt of C forms from customers. This amount is the basic amount and is at the balance sheet date.

The above liability is uncertain relating to its outflow as it depends on receipt of C forms from customers till the date of assessment.

Also there is possibility of interest liability on non-receipt of C form which needs to be paid at the time of assessment.

---

Mar 31, 2016

1. Corporate Information: -

M/s. Starlite Components Limited is a public limited company domiciled in India and incorporated under the provisions of Companies Act, 1956. The company is in the manufacturing and selling of Electronic Ballast and LED Products with factory situated at Satpur as well as Vilholi , Dist- Nashik and office at Satpur, Dist - Nashik. The shares of the Company are listed on the Bombay Stock Exchange (Scrip Code -517548).

2. Basis of Preparation : -

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

The Company has reclassified previous year figures wherever necessary.

3. Significant Accounting Policies: -

a) Basis of Accounting - Financial statements are prepared under historical cost convention on accrual basis in accordance with the requirements of Companies Act 2013 except otherwise stated. Accounts are prepared on going concern basis.

b) Use of Estimates - The preparation of financial statements requires the management of the Company to make an estimate & assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of financial statements & reported amounts of Income & Expenses during the year. The estimates are based on management''s best knowledge of current events and actions. However, due to uncertainty of the assumptions and estimates the carrying amounts of the assets & liabilities may require material adjustment in future periods.

c) Revenue Recognition - Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Sale of goods and services are recognized net of duties & taxes. Expenditure & income are accounted on accrual basis including provisions/adjustments for committed obligations & amounts determined payable or receivable during the year.

d) Tangible Fixed assets - Tangible Fixed assets are stated at cost less depreciation less impairment losses. Cost comprises purchase price, capitalised borrowing cost and subsequent expenditure if it increases the future benefits from the existing asset. Cost has been adjusted to the extent of Cenvat & VAT credit available and exchange difference arising on translation / settlement of foreign currency monetary items pertaining to the acquisition of depreciable asset.

In case of dere cognition of Tangible Fixed Asset, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

e) Depreciation on Tangible Fixed Assets -The carrying amount of Tangible fixed assets as on 31st March 2014 is depreciated over remaining useful life of the asset after reassessing the useful life of the asset. The assets acquired on or after 1st April 2014 are depreciated according to the useful life of such asset as specified in Schedule II of Companies Act 2013. While accounting the fixed assets, the principle of Component accounting is followed in case of significant components of fixed assets & for depreciating the significant components, the useful life of each significant component is considered separately apart from the remaining parts of fixed asset.

f) Intangible Assets - Intangible Assets acquired separately are recognised at cost less accumulated amortisation and impairment. Internally generated Intangible Assets are not capitalised and the expenditure is reflected in the Statement of Profit & Loss in the year in which the expenditure is incurred. Amortisation is done on straight line basis over estimated useful economic life and the amortisation period and method are reviewed at the end of each financial year.

In case of dere cognition of Intangible Assets, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

g) Impairment of Tangible & Intangible Assets - Impairment losses recognized on the basis of WDV of the assets as stated in the Accounting Standard - 28, “Impairment of Assets”.

Impairment losses are recognised in the Statement of Profit & Loss and the depreciation is provided on the revised carrying amount of the asset after impairment.

If the previously recognised impairment losses do not exist or have decreased, the same are reversed and the reversible is limited so that carrying amount does not exceed the recoverable amount.

h) Government Grants & Subsidies -Grants and subsidies from the Government are recognised only when there is reasonable assurance that it will be received. When the grant or subsidy relates to the revenue, it is recognised as income in the Statement of Profit and Loss and where the Grant relates to an asset the same is reduced from the cost of the asset before charging depreciation.

i) Investments - Investments which are readily realisable and intended to be held for not more than 1 year from the date on which such investments are made are classified as current investments. All other investments are classified as Long-term Investments.

On initial recognition, all investments are measured at cost. The cost comprises Purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost or fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments. On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

j) Investment Property - Investment in Land or Building which is not intended to be occupied substantially for use in the operations of the company is classified as Investment Property. Investment properties are stated at cost less accumulated depreciation and impairment losses. Depreciation and impairment loss policy as stated above is followed for calculation. On disposal of the Investment Property, the difference between its carrying amount and the net disposal proceeds is charged / credited to Statement of Profit and Loss.

k) Inventories- Inventories are as verified, valued and certified by management and are valued at cost or market price whichever is less in the case of finished and semi finished goods and at cost in case of raw material. Cost comprises of cost of purchase, cost of conversion & other costs for bringing the inventory to present location & condition.

l) Current Assets, Loans & advances - Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

m) Retirement and other employee benefits - Employee benefits include provident fund, gratuity fund and leave encashment. Contributions made to approved scheme of provident fund is a defined contribution plan and is charged to Statement of Profit and Loss on accrual basis. Provision for Gratuity & leave encashment is done without Actuarial valuation as per AS15. Provident fund & ESIC is charged to Profit & Loss Account on accrual basis.

n) Foreign currency Transactions - The export sales are accounted with reference to the Bill of Lading at the exchange rates prevailing on the transaction date. Foreign exchange gains or losses on realisation are dealt with, as such, in the Profit and Loss account. At the close of the year, all foreign currency liabilities and current assets are stated at the relevant exchange rate prevailing at the close of the year. The exchange differences arising from foreign currency transactions are dealt with, as such, in the Profit & Loss Account. The exchange differences arising from foreign currency transactions on account of capital goods are dealt with, as such, in the value of respective capital asset.

o) Taxes on Income - Provision for current Income Tax is determined in accordance with the provisions of Income Tax Act 1961. Minimum Alternate Tax (MAT) paid / provided in the year is charged to the Statement of Profit and Loss as current Tax. Deferred Tax - subject to materiality - is recognized on timing differences, being the difference between the taxable income & the accounting income that originate in one period & are capable of reversal in one or more subsequent periods. Deferred tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset will be realized in future

p) Provisions, Contingent Liabilities & Commitments and Contingent assets - Provisions in respect of present obligations arising out of past events are made in accounts when reliable estimates can be made of the amounts of obligations. Provisions are not discounted to their present value and reviewed at each reporting date. Contingent liabilities & commitments are not accounted but disclosed separately. Contingent assets are neither accounted nor disclosed in the financial statements.

q) Earnings per share - The earnings considered in ascertaining the Company’s earnings per share are net profit after tax. The number of shares is considered on weighted average basis. There are no dilutive potential equity shares. Hence basic and diluted EPS is the same.

r) Borrowing cost - The Company has capitalized the cost of borrowing till the date the asset is put to use & for the balance period, the cost of borrowing is charged to revenue.

---

Mar 31, 2015

A) Basis of Accounting - Financial statements are prepared under historical cost convention on accrual basis in accordance with the requirements of Companies Act 2013 except otherwise stated. Accounts are prepared on going concern basis.

b) Use of Estimates - The preparation of financial statements requires the management of the Company to make an estimate & assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of financial statements & reported amounts of Income & Expenses during the year. The estimates are based on management's best knowledge of current events and actions. However, due to uncertainty of the assumptions and estimates the carrying amounts of the assets & liabilities may require material adjustment in future periods.

c) Revenue Recognition - Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Sale of goods and services are recognized net of duties & taxes. Expenditure & income are accounted on accrual basis including provisions/adjustments for committed obligations & amounts determined payable or receivable during the year.

d) Tangible Fixed assets - Tangible Fixed assets are stated at cost less depreciation less impairment losses. Cost comprises purchase price, capitalised borrowing cost and subsequent expenditure if it increases the future benefits from the existing asset. Cost has been adjusted to the extent of Cenvat & VAT credit available and exchange difference arising on translation / settlement of foreign currency monetary items pertaining to the acquisition of depreciable asset.

In case of derecognition of Tangible Fixed Asset, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

e) Depreciation on Tangible Fixed Assets The carrying amount of Tangible fixed assets as on 31st March 2015 is depreciated over remaining useful life of the asset after reassessing the useful life of the asset. The assets acquired on or after 1st April 2014 are depreciated according to the useful life of such asset as specified in Schedule II of Companies Act 2013. While accounting the fixed assets, the principle of Component accounting is followed in case of significant components of fixed assets & for depreciating the significant components, the useful life of each significant component is considered separately apart from the remaining parts of fixed asset.

f) Intangible Assets - Intangible Assets acquired separately are recognised at cost less accumulated amortisation and impairment. Internally generated Intangible Assets are not capitalised and the expenditure is reflected in the Statement of Profit & Loss in the year in which the expediture is incurred. Amortisation is done on straight line basis over estimated useful economic life and the amortisation period and method are reviewed at the end of each financial year.

In case of derecognition of Intangible Assets, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

g) Impairment of Tangible & Intangible Assets - Impairment losses recognized on the basis of WDV of the assets as stated in the Accounting Standard - 28, "Impairment of Assets".

Impairment losses are recognised in the Statement of Profit & Loss and the depreciation is provided on the revised carrying amount of the asset after impairment.

If the previously recognised impairment losses do not exist or have decreased, the same are reversed and the reversible is limited so that carrying amount does not exceed the recoverable amount.

h) Government Grants & Subsidies -Grants and subisidies from the Government are recognised only when there is reasonable assurance that it will be received. When the grant or subsidy relates to the revenue, it is recognised as income in the Statement of Profit and Loss and where the Grant relates to an asset the same is reduced from the cost of the asset before charging depreciation.

i) Investments - Investments which are readily realisable and intended to be held for not more than 1 year from the date on which such investments are made are classified as current investments. All other investments are classified as Long-term Investments.

On initial recognition, all investments are measured at cost. The cost comprises Purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost or fair value determined on an individual invesment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments. On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss. H owever, in respect of the value of investment in M/s. Paragon Plastics Limited provision for diminution in the value has been made considering the fair market value of the investment

j) Investment Property - Investment in Land or Building which is not intended to be occupied substantially for use in the operations of the company is classified as Investment Property. Investment properties are stated at cost less accumulated depreciation and impairment losses. Depreciation and impairment loss policy as stated above is followed for calculation. On disposal of the Investment Property, the difference between its carrying amount and the net disposal proceeds is charged / credited to Statement of Profit and Loss.

k) Inventories - Inventories are as verified, valued and certified by management and are valued at cost or market price whichever is less in the case of finished and semi finished goods and at cost in case of raw material. Cost comprises of cost of purchase, cost of conversion & other costs for bringing the inventory to present location & condition.

l) Current Assets, Loans & advances - Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

m) Retirement and other employee benefits - Employee benefits include provident fund, gratuity fund and leave encashment. Contributions made to approved scheme of provident fund is a defined contribution plan and is charged to Statement of Profit and Loss on accrual basis. Provision for Gratuity & leave encashment is done without Actuarial valuation as per AS15. Provident fund & ESI is charged to Profit & Loss Account on accrual basis.

n) Foreign currency Transactions - The export sales are accounted with reference to the Bill of Lading at the exchange rates prevailing on the transaction date. Foreign exchange gains or losses on realisation are dealt with, as such, in the Profit and Loss account. At the close of the year, all foreign currency liabilities and current assets are stated at the relevant exchange rate prevailing at the close of the year. The exchange differences arising from foreign currency transactions are dealt with, as such, in the Profit & Loss Account. The exchange differences arising from foreign currency transactions on account of capital goods are dealt with, as such, in the value of respective capital asset.

o) Taxes on Income - Provision for current Income Tax is determined in accordance with the provisions of Income Tax Act 1961. Minimum Alternate Tax (MAT) paid / provided in the year is charged to the Statement of Profit and Loss as current Tax. Deferred Tax - subject to materiality - is recognized on timing differences, being the difference between the taxable income & the accounting income that originate in one period & are capable of reversal in one or more subsequent periods. Deferred tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset will be realized in future

p) Provisions, Contingent Liabilities & Commitments and Contingent assets - Povisionsin respect of present obligations arising out of past events are made in accounts when reliable estimates can be made of the amounts of obligations. Provisions are not discounted to their present value and reviewed at each reporting date. Contingent liabilities & commitments are not accounted but disclosed separately. Contingent assets are neither accounted nor disclosed in the financial statements.

q) Earnings per share - The earnings considered in ascertaining the Companys earnings per share are net profit after tax. The number of shares is considered on weighted average basis. There are no dilutive potential equity shares. Hence basic and diluted EPS is the same.

r) Borrowing cost - The Company has capitalized the cost of borrowing till the date the asset is put to use & for the balance period, the cost of borrowing is charged to revenue.

---

Mar 31, 2014

A) Basis of Accounting - Financial statements are prepared under historical cost convention on accrual basis in accordance with the requirements of Companies Act 1956 except otherwise stated. Accounts are prepared on going concern basis.

b) Use of Estimates - The preparation of financial statements requires the management of the Company to make an estimate & assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of financial statements & reported amounts of Income & Expenses during the year. The estimates are based on management''s best knowledge of current events and actions. However, due to uncertainty of the assumptions and estimates the carrying amounts of the assets & liabilities may require material adjustment in future periods.

c) Revenue Recognition - Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Sale of goods and services are recognized net of duties & taxes. Expenditure & income are accounted on accrual basis including provisions/adjustments for committed obligations & amounts determined payable or receivable during the year.

d) Tangible Fixed assets - Tangible Fixed assets are stated at cost less depreciation less impairment losses. Cost comprises purchase price, capitalised borrowing cost and subsequent expenditure if it increases the future benefits from the existing asset. Cost has been adjusted to the extent of Cenvat & VAT credit available and exchange difference arising on translation / settlement of foreign currency monetary items pertaining to the acquisition of depreciable asset. In case of derecognition of Tangible Fixed Asset, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

e) Depreciation on Tangible Fixed Assets - Depreciation on Tangible Fixed Assets has been provided on SLM method at the rates & in the manner prescribed in Schedule XIV of Companies Act 1956.

f) Intangible Assets - Intangible Assets acquired separately are recognised at cost less accumulated amortisation and impairment. Internally generated Intangible Assets are not capitalised and the expenditure is reflected in the Statement of Profit & Loss in the year in which the expediture is incurred. Amortisation is done on straight line basis over estimated useful economic life and the amortisation period and method are reviewed at the end of each financial year. In case of derecognition of Intangible Assets, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

g) Impairment of Tangible & Intangible Assets - Impairment losses recognized on the basis of WDV of the assets as stated in the Accounting Standard - 28, "Impairment of Assets". Impairment losses are recognised in the Statement of Profit & Loss and the depreciation is provided on the revised carrying amount of the asset after impairment. If the previously recognised impairment losses do not exist or have decreased, the same are reversed and the reversible is limited so that carrying amount does not exceed the recoverable amount.

h) Government Grants & Subsidies - Grants and subisidies from the Government are recognised only when there is reasonable assurance that it will be received. When the grant or subsidy relates to the revenue, it is recognised as income in the Statement of Profit and Loss and where the Grant relates to an asset the same is reduced from the cost of the asset before charging depreciation.

i) Investments - Investments which are readily realisable and intended to be held for not more than 1 year from the date on which such investments are made are classified as current investments. All other investments are classified as Long-term Investments. On initial recognition, all investments are measured at cost. The cost comprises Purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Current investments are carried in the financial statements at lower of cost or fair value determined on an individual invesment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments. On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

j) Investment Property - Investment in Land or Building which is not intended to be occupied substantially for use in the operations of the company is classified as Investment Property. Investment properties are stated at cost less accumulated depreciation and impairment losses. Depreciation and impairment loss policy as stated above is followed for calculation. On disposal of the Investment Property, the difference between its carrying amount and the net disposal proceeds is charged credited to Statement of Profit and Loss.

k) Inventories - Inventories are as verified, valued and certified by management and are valued at cost or market price whichever is less in the case of finished and semi finished goods and at cost in case of raw material. Cost comprises of cost of purchase, cost of conversion & other costs for bringing the inventory to present location & condition.

l) Current Assets, Loans & advances - Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

m) Retirement and other employee benefits - Employee benefits include provident fund, gratuity fund and leave encashment. Contributions made to approved scheme of provident fund is a defined contribution plan and is charged to Statement of Profit and Loss on accrual basis. Provision for Gratuity & leave encashment is done without Actuarial valuation as per AS15. Provident fund & ESI is charged to Statement of Profit & Loss on accrual basis.

n) Foreign currency Transactions - The export sales are accounted with reference to the Bill of Lading at the exchange rates prevailing on the transaction date. Foreign exchange gains or losses on realisation are dealt with, as such, in the Statement of Profit & Loss. At the close of the year, all foreign currency liabilities and current assets are stated at the relevant exchange rate prevailing at the close of the year. The exchange differences arising from foreign currency transactions are dealt with, as such, in the Statement of Profit & Loss. The exchange differences arising from foreign currency transactions on account of capital goods are dealt with, as such, in the value of respective capital

o) Taxes on Income - Provision for current Income Tax is determined in accordance with the provisions of Income Tax Act 1961. Minimum Alternate Tax (MAT) paid / provided in the year is charged to the Statement of Profit and Loss as current Tax. Deferred Tax - subject to materiality - is recognized on timing differences, being the difference between the taxable income & the accounting income that originate in one period & are capable of reversal in one or more subsequent periods. Deferred tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

p) Provisions, Contingent Liabilities & Commitments and Contingent assets - Provisions in respect of present obligations arising out of past events are made in accounts when reliable estimates can be made of the amounts of obligations. Provisions are not discounted to their present value and reviewed at each reporting date. Contingent liabilities & commitments are not accounted but disclosed separately. Contingent assets are neither accounted nor disclosed in the financial statements.

q) Earnings per share - The earnings considered in ascertaining the Company''s earnings per share are net profit after tax. The number of shares is considered on weighted average basis. There are no dilutive potential equity shares. Hence basic and diluted EPS is the same.

r) Borrowing cost - The Company has capitalized the cost of borrowing till the date the asset is put to use & for the balance period, the cost of borrowing is charged to revenue.

Note:-

1 During the year, pursuantt o the BIFR order dated 10th October 2013, the paid up share capital oft he company is reduced by 60% viz. from 84,30,000 Equity shares of Rs.10/- each fully paid up aggregating Rs.8,43,00,000 to Rs.3,37,20,000 consisting of 33,72,000 Equity shares of Rs.10/- fully paid up. Pursuantt o the reduction, shareholders holding 100 shares of Rs.10/- each fully paid will be allotted 40 equity shares of Rs. 10/- each fully paid up.

---

Jun 30, 2013

1. Significant Accounting Policies: -

a) Basis of Accounting - Financial statements are prepared under historical cost convention on accrual basis in accordance with the requirements of Companies Act 1956 except otherwise stated. Accounts are prepared on going concern basis.

b) Use of Estimates - The preparation of financial statements requires the management of the Company to make an estimate & assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of financial statements & reported amounts of Income & Expenses during the year. The estimates are based on management''s best knowledge of current events and actions. However, due to uncertainty of the assumptions and estimates the carrying amounts of the assets & liabilities may require material adjustment in future periods.

c) Revenue Recognition - Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Sale of goods and services are recognized net of duties & taxes. Expenditure & income are accounted on accrual basis including provisions/adjustments for committed obligations & amounts determined payable or receivable during the year.

d) Tangible Fixed assets - Tangible Fixed assets are stated at cost less depreciation less impairment losses. Cost comprises purchase price, capitalised borrowing cost and subsequent expenditure if it increases the future benefits from the existing asset. Cost has been adjusted to the extent of Convert & VAT credit available and exchange difference arising on translation / settlement of foreign currency monetary items pertaining to the acquisition of depreciable asset.

In case of derecognition of Tangible Fixed Asset, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

e) Depreciation on Tangible Fixed Assets - Depreciation on Tangible Fixed Assets has been provided on SLM method at the rates & in the manner prescribed in Schedule XIV of Companies Act 1956.

f) Intangible Assets - Intangible Assets acquired separately are recognised at cost less accumulated amortisation and impairment. Internally generated Intangible Assets are not capitalised and the expenditure is reflected in the Statement of Profit & Loss in the year in which the expenditure is incurred. Amortisation is done on straight line basis over estimated useful economic life and the amortisation period and method are reviewed at the end of each financial year.

In case of derecognition of Intangible Assets, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

g) Impairment of Tangible & Intangible Assets - Impairment losses recognized on the basis of WDV of the assets as stated in the Accounting Standard - 28, "Impairment of Assets".

Impairment losses are recognised in the Statement of Profit & Loss and the depreciation is provided on the revised carrying amount of the asset after impairment.

If the previously recognised impairment losses do not exist or have decreased, the same are reversed and the reversible is limited so that carrying amount does not exceed the recoverable amount.

h) Government Grants & Subsidies - Grants and subisidies from the Government are recognised only when there is reasonable assurance that it will be received. When the grant or subsidy relates to the revenue, it is recognised as income in the Statement of Profit and Loss and where the Grant relates to an asset the same is reduced from the cost of the asset before charging depreciation.

I) Investments - Investments which are readily realisable and intended to be held for not more than 1 year from the date on which such investments are made are classified as current investments. All other investments are classified as Long-term Investments.

On initial recognition, all investments are measured at cost. The cost comprises Purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost or fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments.

On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

j) Investment Property - Investment in Land or Building which is not intended to be occupied substantially for use in the operations of the company is classified as Investment Property. Investment properties are stated at cost less accumulated depreciation and impairment losses. Depreciation and impairment loss policy as stated above is followed for calculation. On disposal of the Investment Property, the difference between its carrying amount and the net disposal proceeds is charged / credited to Statement of Profit and Loss.

k) Inventories - Inventories are as verified, valued and certified by management and are valued at cost or market price whichever is less in the case of finished and semi finished goods and at cost in case of raw material. Cost comprises of cost of purchase, cost of conversion & other costs for bringing the inventory to present location & condition.

l) Current Assets, Loans & advances - Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

m) Retirement and other employee benefits - Employee benefits include provident fund, gratuity fund and leave encashment.

Contributions made to approved scheme of provident fund is a defined contribution plan and is charged to Statement of Profit and Loss on accrual basis. Provision for Gratuity & leave encashment is done without Actuarial valuation as per AS15. Provident fund & ESI is charged to Statement of Profit & Loss on accrual basis.

n) Foreign currency Transactions - The export sales are accounted with reference to the Bill of Lading at the exchange rates prevailing on the transaction date. Foreign exchange gains or losses on realisation are dealt with, as such, in the Statement of Profit & Loss. At the close of the year, all foreign currency liabilities and current assets are stated at the relevant exchange rate prevailing at the close of the year. The exchange differences arising from foreign currency transactions are dealt with, as such, in the Statement of Profit & Loss. The exchange differences arising from foreign currency transactions on account of capital goods are dealt with, as such, in the value of respective capital asset.

o) Taxes on Income - Provision for current Income Tax is determined in accordance with the provisions of Income Tax Act 1961. Minimum Alternate Tax (MAT) paid / provided in the year is charged to the Statement of Profit and Loss as current Tax. Deferred Tax - subject to materiality - is recognized on timing differences, being the difference between the taxable income & the accounting income that originate in one period & are capable of reversal in one or more subsequent periods. Deferred tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

p) Provisions, Contingent Liabilities & Commitments and Contingent assets - Provisions in respect of present obligations arising out of past events are made in accounts when reliable estimates can be made of the amounts of obligations. Provisions are not discounted to their present value and reviewed at each reporting date. Contingent liabilities & commitments are not accounted but disclosed separately. Contingent assets are neither accounted nor disclosed in the financial statements.

q) Earnings per share - The earnings considered in ascertaining the Company''s earnings per share are net profit after tax. The number of shares is considered on weighted average basis. There are no dilutive potential equity shares. Hence basic and diluted EPS is the same.

r) Borrowing cost - The Company has capitalized the cost of borrowing till the date the asset is put to use & for the balance period, the cost of borrowing is charged to revenue.

b) Rights attached to Equity shares

(Disclosure pursuant to Note no. 6(A)(e) of Part I of Schedule VI to the Companies Act, 1956)

The company has only one class of equity shares having a par value of 10/- per share. Each Holder of equity shares is entitled to one vote per share. The dividend proposed by the board of directors is subject o the approval of the shareholders in the ensuing Annual General Meeting.

c) Shares held by Holding / ultimate Holding company and / or their subsidiaries / associates (Disclosure pursuant to Note no. 6(A)(f) of Part I of Schedule VI to the Companies Act, 1956)

Equity Shares issued by the company and held by Holding company, ultimate Holding company and their Subsidiaries / associates are NIL

g) Securities convertible into equity/preference shares issued - NIL

(Disclosure pursuant to Note no. 6(A)(j) of Part I of Schedule VI to the Companies Act, 1956)

h) Calls unpaid - NIL

(Disclosure pursuant to Note no. 6(A)(k) of Part I of Schedule VI to the Companies Act, 1956)

i) Forfeited shares - NIL

(Disclosure pursuant to Note no. 6(A)(l) of Part I of Schedule VI to the Companies Act, 1956)

Nature of security & Terms of Repayment

(Disclosure pursuant to Note no. 6(C) (ii) & (vi) of Part I of Schedule VI to the Companies Act, 1956)

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Jun 30, 2012

A) Basis of Accounting - Financial statements areprepared under historical cost convention on accrual basis in accordance with the requirements of Companies Act 1956 except otherwise stated. Accounts are prepared on going concern basis.

b) Use of Estimates -The preparation of financial statements requires the management of theCompany to make an estimate & assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of financial statements & reported amounts of Income & Expenses during the year. The estimates are based on management''s best knowledge of current events and actions. However, due to uncertainty of the assumptions and estimates the carrying a mounts of the assets & liabilities may require material adjustment in future periods.

c) Revenue Recognition - Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Sale of goods and services are recognized net of duties & taxes. Expenditure & income are accounted on accrual basis including provisions/adjustments for committed obligations & amounts determined payable or receivable during the year.

d) Tangible Fixed assets-TangibleFixed assets arestated at cost less depreciation less impairment losses. Cost comprises purchase price, capitalised borrowing cost and subsequent expenditure if it increases the future benefits from the existing asset. Cost has been adjusted to the extent of Cenv at & VAT credit available and exchange difference arising on translation/ settlementof foreign currency monetary items pertaining to the acquisition of depreciable asset.

In case of derecognition of Tangible Fixed Asset, the difference between the carrying amount and disposal proceeds is accounted as gain / loss in the Statement of Profit & Loss.

e) Depreciation on Tangible Fixed Assets - Depreciation on Tangible Fixed Assets has been provided on SLM method at the rates & in the manner prescribed in Schedule XIV of Companies Act 1956

f) Intangible Assets - Intangible Assets acquired separately are recognised at cost less accumulated amortisation and impairment. Internally generated Intangible Assets are not capitalised and the expenditure is reflected in the Statement of Profit& Loss in the yearin which the expediture is incurred. Amortisation is done on straight line basisoverestimated useful economic lifeand the amortisation period and method are reviewed at the end of each financial year.

In caseof derecognition of Intangible Assets, the difference between the carrying amount and disposal proceeds is accounted as gain /loss in the Statement of Profit & Loss.

g) Impairment of Tangible & Intangible Assets -Impairment losses recognized on the basis of WDV of the assets as stated in the Accounting Standard -28, "Impairment of Assets".

Impairment losses are recognised in the Statement of Profit & Loss and the depreciation is provided on the revised carrying amount of the asset after impairment.

If the previously recognised impairment losses do not exist or have decreased, the sameare reversed and the reversibleis limited so that carrying amount does not exceed the recoverable amount.

h) Government Grants & Subsidies -Grants and subisidies from the Government are recognised only when there is reasonable assurance that it will be received. When the grant or subsidy relates to the revenue, it is recognised as income in the Statement of Profit and Loss and where the Grant relates to an asset the same is reduced from the cost of the asset before charging depreciation.

i) Investments - Investments which are readily realisable and intended to be held for not more than 1 year from the date on which such investments are made are classified as current investments. All other investments are classified as Long-term Investments. '' On initial recognition, all investments are measured at cost. The cost comprises Purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost or fair value determined on an individual invesment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognise a decline otherthan temporary in the value of investments.

On disposal of investment, the difference between its carrying amou nt and net disposal proceeds is charged or credited to the Statement of Profit and Loss. However, in respect of the value of investment in M/s. Paragon Plastics Limited provision for diminution in the value has been made considering the fair market value of the investment

j) Investment Property - Investment in Land or Building which is not intended to be occupied substantially for use in the operations of the company is classified as Investment Property. Investment properties are stated at cost less accumulated depredation and impairment losses. Depreciation and impairment loss policy as stated above is followed for calculation. On disposal of the Investment Property, the difference between its carrying amount and the net disposal proceeds is charged / credited to Statement of Profit and Loss.

k) Inventories - Inventories are as verified, valued and certified by management and are valued at cost or market price whichever is less in the case of finished and semi finished goods and at cost in case of raw material. Cost comprises of cost of purchase, cost of conversion & other costs for bringing the inventory to present location & condition.

I) Current Assets. Loans & advances- Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

m) Retirement and other employee benefits - Employee benefits include provident fund, gratuity fund and leave encashment.

Contributions made to approved scheme of provident fund is a defined contribution plan and is charged to Statement of Profit and Loss on accrual basis. Provision for Gratuity & leave encashment is done without Actuarial valuation as per AS15.

Provident fond & ESI is charged to Statement of Profit & Loss on accrual basis.

n) Foreign currency Transactions - The export sales are accounted with reference to the Bill of Lading at the exchange rates prevailing on the transaction date. Foreign exchange gains or losses on realisation are dealt with, as such, in the Statement of Profit & Loss. At the dose of the year, all foreign cu rrency liabilities and current assets are stated at the relevant exchange rate prevailing atthe close of the year. The exchange differences arising from foreign currency transactions are dealtwith,as such, in the Statement of Profit & Loss. The exchange differences arising from foreign currency transactions on account of capital goods are dealt with, as such, in the value of respective capital asset.

o) Taxes on Income - Provision for current Income Tax is determined in accordance with the provisions of Income Tax Act 1961.

Minimum Alternate Tax (MAT) paid / provided in the year is charged to the Statement of Profit and Loss as current Tax.

Deferred Tax- subjectto materiality - is recognized on timing differences, being the difference between the taxable income & the accounting income that originate in one period & are capable of reversal in one or more subseq uent periods. Deferred tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset will be realized in future

p) Provisions. Contingent Liabilities & Commitments and Contingent assets - Provisions in respect of present obligations arisingout of past events are made in accounts when reliable estimates can be made of the amounts of obligations. Provisions are not discounted to their present value and reviewed at each reporting date. Contingent liabilities & commitments are not accounted but disclosed separately. Contingent assets are neither accounted nor disclosed in the financial statements.

q) Earnings per share-The earnings considered in ascertaining the Company''s earnings per share are net profit after tax. The number of shares is considered on weighted average basis. There are no dilutive potential equity shares. Hence basic and diluted EPS is the same.

r) Borrowing cost -The Company has capitalized the cost of borrowing till the date the asset is put to use & for the balance period, the cost of borrowing is charged to revenue.

Figures for the previous year have been regrouped and rearranged wherever necessary.

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Jun 30, 2010

A) Basis of Accounting:

The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956. Accounts are prepared on going concern basis.

b) Use of Estimates - The preparation of financial statements requires the management of the Company to make an estimate & assumptions that affect the reported balances of Assets & Liabilities and disclosure relating to Contingent liabilities as at the date of financial statements & reported amounts of Income & Expenses during the year.

c) Revenue Recognition - Sales are recognized including excise duty but net taxes. Expenditure & income are accounted on accrual basis including provisions/adjustments for committed obligations & amounts determined payable or receivable during the year except where expressly stated otherwise.

d) Fixed Assets -

All fixed assets are recorded at cost of acquisition or construction. They are stated at historical cost. Financial cost relating to borrowed funds attributable to construction or acquisition of fixed assets is included in the gross book value of fixed assets to which they relate.

e) Depreciation:

Depreciation on fixed assets is provided on "straight line method" at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

f) Investments -

Long term Investments are valued at cost. However, the value of investment in M/s. Paragon Plastics Limited is fully written off in the current year, provision for diminution in the value has been made considering the fair market value of the investment.

g) Inventories -

Inventories are as verified, valued and certified by management and are valued at cost or market price whichever is less in the case of finished and semi finished goods and at cost in case of raw material.

h) Current Assets, Loans & advances -

Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

i) Retirement benefits -

Provision for Gratuity & leave encashment is done without Actuarial valuation as per AS15. Provident fund is charged to Profit & Loss Account on accrual basis.

j) Foreign currency Transactions -

The export sales are accounted with reference to the Bill of Lading at the exchange rates prevailing on the transaction date. Foreign exchange gains or losses on realisation are dealt with, as such, in the Profit and Loss account. At the close of the year, all foreign currency liabilities and current assets are stated at the relevant exchange rate prevailing at the close of the year. The exchange differences arising from foreign currency transactions are dealt with, as such, in the Profit & Loss Account. The exchange differences arising from foreign currency transactions on account of capital goods are dealt with, as such, in the value of respective capital asset.

k) Taxes on Income -

Current tax is determined on the amount of tax payable in respect of taxable income, if any, for the year ended on 31st March 2010.

Deferred Tax - subject to materiality - is recognized on timing differences, being the difference between the taxable income & the accounting income that originate in one period & are capable of reversal in one or more subsequent periods. Deferred tax asset is recognized & carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

l) Provisions. Contingent Liabilities & Contingent assets - Provisions in respect of present obligations arising out of past events are made in accounts when reliable estimates can be made of the amounts of obligations. Contingent liabilities are not accounted but disclosed separately. Contingent assets are neither accounted nor disclosed in the financial statements.

m) Earnings per share - The earnings considered in ascertaining the Companys earnings per share are net profit after tax. The number of shares is considered on weighted average basis. There are no dilutive potential equity shares. Hence basic and diluted EPS is the same.

n) Borrowing cost - the Company has capitalized the cost of borrowing till the date the asset is put to use & for the balance period, the cost of borrowing is charged to revenue.

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Jun 30, 2009

A) Basis of Accounting: The financial statements are prepared under historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956.

b) Capital Expenditure:

i) Cost of major civil works required for plant and machinery supports is considered as Plant and Machinery.

ii) Capital Assets under erection/installation, if any, are reflected in the balance sheet as "capital work in progress".

iii) All fixed assets are recorded at cost of acquisition or construction. They are stated at historical cost. Financial cost relating to borrowed funds attributable to construction or acquisition of fixed assets is included in the gross book value of fixed assets to which they relate.

c) Depreciation: Depreciation on fixed assets is provided on "straight line method" at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

d) Investments: Investments are long term in nature and valued at cost as per AS 13. However, the value of investment in M/s. Starlite Lighting Limited has been reduced by 90% of the original cost.

e) Inventories: Inventories are as verified, valued and certified by management and are valued at cost or market price whichever is less in the case of finished and semi finished goods and at cost in case of raw material.

f) Contingent Liabilities: These are disclosed by way of Notes on Accounts. Provision is made in the accounts in respect of those liabilities that are likely to materialize after the year end till the finalization of accounts and have material effect on the position stated in the balance sheet.

g) Taxes on Income: Current tax is determined on the amount of tax payable in respect of taxable income, if any, for the year ended on 31st March 2009.

The Deferred Tax Asset provision for the previous year is continued during the current year without making any provision for the current year since there is no virtual certainty of the realisation of such asset. Had the provision been made the amount of provision would have been Rs. 38,34,255/- for the current year and the Total Amount of Deferred Tax Asset would have been Rs. 97,68,607/-.

h) Transactions in foreign currency: Sales/Purchases, if any, made in foreign currency are booked at the then prevailing exchange rates Gain/loss, if any, arising out of fluctuations in exchange rate is accounted for on realization/payment.