Suraj Industries Ltd. कंपली की लेखा नीति

Mar 31, 2025

2. MATERIAL ACCOUNTING POLICIES

a. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The company has adopted Indian Accounting Standards (Ind
AS) with effect from 1st April 2017, with transition date of
1st April 2016, pursuant to notification issued by Ministry
of Corporate Affairs dated 16th February 2015, notifying
the Companies (Indian Accounting Standards) Rules, 2015.
Accordingly, the standalone financial statements (hereinafter
referred as "Financial statements") comply with Ind AS
prescribed under section 133 of the Companies Act, 2013 (the
"Act"), read together with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015, relevant provisions of the
Act and other accounting principles generally accepted in India.

The financial statements upto and for the year ended on 31st
March 2017 were prepared in accordance with the accounting
standards notified under Companies (Accounting Standard)
Rules,2006 (as amended), as notified under section 133 of
the Act (Previous Indian GAAP) and other relevant provisions
of the Act.

The financial statements are prepared on the historical cost
convention, except for certain financial instruments which
are measured at fair value. Accounting policies have been
consistently applied except where:

i) A newly issued accounting standard is initially adopted
or a revision to an existing accounting standard requires
a change in the accounting policy hitherto in use.

ii) The Company presents an additional balance sheet at
the beginning of the earliest comparative period when:
it applies an accounting policy retrospectively; it makes
a retrospective restatement of items in its financial
statements; or, when it reclassifies items in its financial
statements, and the change has a material effect on the
financial statements.

All amounts are stated in Lakhs of Rupees, rounded off to two
decimal places, except when otherwise indicated.

The financial statements were authorised for issue by the
Board of Directors of the company on 27.05.2025.

b. CURRENT VERSUS NON-CURRENT CLASSIFICATION

All assets and liabilities are classified into current and non¬
current.

Assets

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

a) it is expected to be realised in, or intended for sale or
consumption in, the company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within twelve months after
the reporting period; or

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

All other assets are classified as non-current assets

Liabilities

A Liability is classified as current when it satisfies any of the
following criteria:

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

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within twelve months after the
reporting period; or

d) the company does not have an unconditional right to
defer settlement of the liability for at least 12 months
after the reporting period. Terms of liability that could,
at the option of the counterparty, result in its settlement
by the issue of equity instruments do not affect its
classification.

All other liabilities are classified as non-current liabilities.

c. USE OF ESTIMATES

The preparation of financial statements in conformity
with Ind AS requires management to make estimates and
assumptions that affect the reported amounts of Revenue,
Expenses, Assets and Liabilities and disclosure of contingent
liabilities at the end of the reporting period. Difference
between the actual results and estimates are recognized in
the period in which the results are known / materialized.

d. PROPERTY, PLANT AND EQUIPMENT

Initial recognition and measurement

The cost of an item of property, plant and equipment is
recognized as an asset if, and only if:

a) it is probable that future economic benefits associated
with the item will flow to the entity; and

b) the cost of the item can be measured reliably.

Property, Plant and Equipments (‘PPE’) are stated at cost
of acquisition or construction including 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 less accumulated depreciation and
cumulative impairment losses & net of recoverable taxes (net
of Cenvat and VAT credit wherever applicable).

Borrowing Cost attributable to acquisition, construction of
qualifying assets is capitalized until such time as the assets
are substantially ready for their intended use. Indirect
expenses during construction period, which are required to
bring the asset in the condition for its intended use by the
management and are directly attributable to bringing the
asset to its position, are also capitalised.

Subsequent Measurement

Subsequent expenditure related to an item of PPE is added
to its carrying amount or recognized as a separate asset, if
appropriate and carrying amount of replacement parts is
derecognized at its carrying value.

Spare parts or stores meeting the definition of PPE, either
procured along with equipment or subsequently, are
capitalized in the asset''s carrying amount or recognized
as separate asset, if appropriate. However, cost of day-to¬
day servicing are recognized in profit or loss as incurred.
Cost of day-to-day service primarily include costs of labour,
consumables, and cost of small spare parts.

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

Transition to Ind AS

For 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, 2015 measured as per
previous GAAP and use that carrying value as the deemed
cost of Property, Plant & Equipment.

Depreciation / amortization

a. Depreciation on items of PPE is provided on straight line
method in accordance with the useful life as specified in
Schedule II to the Companies Act, 2013.

b. Depreciation on additions to assets or on sale/discard
of assets is calculated pro-rata from the date of such
addition or up to the date of such sale / discard.

c. Assets residual values and useful lives are reviewed and
adjusted, at the end of each reporting period.

e. CAPITAL WORK-IN-PROGRESS

Capital Work in Progress comprises of Property, Plant and
Equipment that are not ready for their intended use at the
end of reporting period and are carried at cost. Cost includes
related acquisition expenses, construction cost, borrowing
cost capitalized and other direct expenditure. At the point
when an asset is capable of operating in the manner intended
by management, the cost of construction is transferred to
the appropriate category of Property, Plant and Equipment.
Costs are capitalised till the period of assets are substantially
ready for their intended use. Depreciation is not recorded on
capital work-in-progress until construction and installation is
complete and the asset is substantially ready for its intended
use.

f. RIGHT OF USE ASSETS
Company as a Lessee

Ind AS 116 requires lessees to determine the lease term as
the non-cancellable period of a lease adjusted with any option
to extend or terminate the lease, if the use of such option is
reasonably certain.

The company recognises a right-of-use asset and a lease
liability at the lease commencement date. The right-of-use
asset is initially measured at cost, which comprises the initial
amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial
direct costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the underlying
asset or the site on which it is located, less any lease incentives
received. The right-of-use asset is subsequently depreciated
using the straight-line method from the commencement date
to the earlier of the end of the useful life of the right-of-use
asset or the end of the lease term. The estimated useful lives
of right-of-use assets are determined on the same basis as
those of property and equipment. In addition, the right-of-use
asset is periodically reduced by impairment losses, if any, and
adjusted for certain re-measurements of the lease liability.

Finance lease

The Company has entered into land lease arrangement at
various locations for a period of 90 years. In case of lease
of land for 90 years and above, it is likely that such leases
meet the criteria that at the inception of the lease the
present value of the minimum lease payments amounts to
at least substantially all of the fair value of the leased asset.
Accordingly, the Company has classified leasehold land
as finance leases applying Ind AS 17. For such leases, the
carrying amount of the right of-use asset at the date of initial
application of Ind AS 116 is the carrying amount of the lease
asset on the transition date as measured applying Ind AS
17. Leasehold land is amortised on a straight-line basis over
the unexpired period of their respective lease. Leasehold
improvements are depreciated on straight line basis over
their initial agreement period.

g. INTANGIBLE ASSETS

Intangible assets with finite useful life are stated at cost of
acquisition, less accumulated depreciation/ amortisation
and impairment loss, if any. The cost of Intangible Assets

comprises its purchase price net of any trade discounts
and rebates, any import duties and other taxes (other than
those subsequently recoverable from the tax authorities).
Amortisation is recognised in Statement of Profit and Loss
account on straight-line basis over estimated useful lives of
respective intangible assets, but not exceeding useful lives
given hereunder:

An item of Intangible Asset or any significant part initially
recognised is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal.

Any gain or loss arising on de-recognition of the asset
(calculated as the difference between net disposal proceeds
and carrying amount of the asset) is included in Statement of
Profit and Loss Account when asset is derecognised.

h. FINANCIAL INSTRUMENTS

1. Financial Assets

Initial recognition and measurement

Financial Assets are recognised when the Company
becomes a party to contractual provisions of Financial
Instrument. Financial assets are initially measured
at Fair Value. Transaction costs that are directly
attributable to acquisition of financial assets (other than
financial assets at Fair Value through Profit or Loss)
are added to fair value of financial assets. Transaction
costs directly attributable to acquisition of financial
assets at Fair Value through profit or loss are recognised
immediately in statement of Profit and Loss.

Subsequent measurement

I. Debt Instruments at Amortised Cost

A ''debt instrument'' is measured at amortised cost if
both of the following conditions are met:

a. The asset is held within a business model whose
objective is to hold assets for collecting contractual
cash flows, and

b. Contractual terms of asset give rise on specified
dates to cash flows that are Solely Payments of
Principal and Interest (SPPI) on principal amount
outstanding.

After initial measurement, such Financial Assets
are subsequently measured at amortised cost using
Effective Interest Rate (EIR) method. All other debt
instruments are measured at Fair Value through Other
Comprehensive Income (FVOCI) or Fair Value through
Profit and Loss (FVTPL) based on the Company''s
business model.

II. Equity Investments

All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading are classified as at fair value
through Profit and Loss (FVTPL). For all other equity

instruments, the Company decides to classify the same
either as at Fair Value through Other Comprehensive
Income (FVOCI) or Fair Value through Profit and Loss
(FVTPL) on an instrument-to-instrument basis.

III. Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies
Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss on financial assets that
are debt instruments, and are measured at amortised
cost e.g., Loans, Debt Securities, Deposits and Trade
Receivables or any contractual right to receive cash or
another financial asset that result from transactions that
are within scope of Ind AS 115.

The Company follows ''Simplified Approach'' for
recognition of impairment loss allowance on trade
receivables. Application of simplified approach
recognises impairment loss allowance based on
lifetime ECL at each reporting date, right from its initial
recognition.

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines that
whether there has been a significant increase in the
credit risk since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used to provide
for impairment loss. However, if credit risk has increased
significantly, lifetime ECL is used. If, in a subsequent
period, credit quality of the instrument improves such
that there is no longer a significant increase in credit
risk since initial recognition, the Company reverts to
recognising impairment loss allowance based on 12
month ECL.

ECL impairment loss allowance (or reversal) recognized
during the period is recognized under the head ''Other
Expenses’ in the statement of Profit and Loss. The
Balance Sheet presentation for various financial
instruments is described below:

i. Financial assets measured as at amortised

cost: ECL is presented as an allowance, i.e., as an
integral part of the measurement of those assets in
the Balance Sheet. This allowance reduces the net
carrying amount.

ii. Debt instruments measured at FVTPL: Since
financial assets are already reflected at fair value,
impairment allowance is not further reduced
from its value. Change in fair value is taken to the
statement of Profit and Loss.

iii. Debt instruments measured at FVTOCI: Since
financial assets are already reflected at Fair Value,
impairment allowance is not further reduced
from its value. Rather, ECL amount is presented
as ''Accumulated Impairment Amount’ in the Other
Comprehensive Income (OCI). The Company does
not have any Purchased or Originated Credit
Impaired (POCI) financial assets, i.e., financial
assets which are credit impaired on purchase/
origination.

IV. Derecognition of Financial Assets

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised when:

i. The rights to receive cash flows from asset
has expired, or

ii. The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay
to a third party under a ''pass through''
arrangement and either

(a) The Company has transferred
substantially all risks and rewards of the
asset, or

(b) The Company has neither transferred
nor retained substantially all risks and
rewards of the asset but has transferred
control of the asset.

When the Company has transferred its rights to receive
cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates, if and to what extent
it has retained risks and rewards of ownership. When
it has neither transferred nor retained substantially all
of the risks and rewards of the asset, nor transferred
control of the asset, the Company continues to recognise
transferred asset to the extent of the Company''s
continuing involvement. In that case, the Company also
recognises an associated liability. The transferred asset
and the associated liability are measured on a basis that
reflects rights and obligations that the Company has
retained.

2. Financial liability

Initial recognition and measurement

Financial liabilities are classified at initial recognition as:

a. Financial liabilities at fair value through Profit or Loss

b. Loans and Borrowings

c. Payables

All financial liabilities are recognised initially at fair value
and in case of loans and borrowings and payables, they are
recognised net of directly attributable transaction costs.

Subsequent measurement

Measurement of financial liabilities depends on their
classification as below:

a. Financial liabilities at Fair Value Through Profit

or Loss (FVTPL): Gains or losses on liabilities are
recognised in the statement of profit and loss. Financial
liabilities designated upon initial recognition at fair value
through statement of profit and loss are designated as

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

b. Loans and Borrowings: After initial recognition,
interest-bearing loans and borrowings are subsequently
measured at amortised cost using the Effective Interest
Rate (hereinafter referred as EIR) method. Gains and
Losses are recognised in statement of profit and loss
when liabilities are derecognised as well as through
EIR amortisation process. Amortised cost is calculated
by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of
EIR. EIR amortisation is included as Finance Costs in the
statement of profit and loss.

c. Trade and Other Payables: These amounts represent
liabilities for goods and services provided to the
Company prior to the end of financial year which are
unpaid.

Derecognition of Financial liability

A Financial Liability is de-recognised when obligation under
the liability is discharged or cancelled or expires.

i. INVESTMENTS
Subsidiaries

As per Ind AS 27, Control exists when the Company has power
over the entity, is exposed, or has rights to variable returns
from its involvement with the entity and has the ability to
affect those returns by using its power over entity. Power is
demonstrated through existing rights that give the ability to
direct relevant activities, those which significantly affect the
entity''s returns.

Investments in subsidiaries are carried at cost as per Ind AS 27.
Associates and Joint Ventures

A joint venture is a type of joint arrangement whereby the
parties that have joint control of the arrangement have rights
to net assets of joint venture. Joint control is contractually
agreed sharing of control of an arrangement, which exists only
when decisions about relevant activities require unanimous
consent of parties sharing control.

An associate is an entity over which the Company has
significant influence. Significant influence is power to
participate in financial and operating policy decisions of
investee but is not control or joint control over those policies.

Investment in joint ventures and associates are carried at
cost as per Ind AS 27. Cost comprises price paid to acquire
investment and directly attributable cost.

In the above, cost is arrived at by FIFO cost method. In case
of Finished Goods and Stock in Process, it also includes
manufacturing & related establishment overheads,
depreciation etc.

All the spares, which are primarily meant to be used for
capitalization (except consumables and maintenance stores),
are considered as part of the plant & machinery and shown
accordingly.

k. CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents comprise Cash in Hand, Balances
in Bank Account, Remittance in Transit, Cheques in hand and
Demand Deposits, together with other short-term, highly
liquid investments (original maturity less than 3 months)
that are readily convertible into known amounts of cash and
which are subject to an insignificant risk of changes in value.

l. TAXES

Current Income Tax

Current Income tax assets and liabilities are measured at
amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted,
at the reporting date.

Current income tax relating to items recognised outside Profit
and Loss is recognised outside profit and loss (either in Other
Comprehensive Income or in Equity). Current tax items are
recognised in correlation to underlying transaction either in
OCI or directly in equity. Management periodically evaluates
positions taken in tax returns with respect to situations in
which applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.

Deferred Tax

Deferred Income Taxes are calculated using Balance Sheet
Approach, on temporary differences between tax bases of
assets and liabilities and their carrying amounts for financial
reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable
temporary differences, except when it is probable that
temporary differences will not reverse in foreseeable future.

Deferred tax assets are recognised for all deductible
temporary differences and carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are
recognised to extent that it is probable that taxable profit will
be available against which deductible temporary differences
and carry forward of unused tax credits and unused tax losses
can be utilized.

Carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the
deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the
reporting date.

Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are
recognised in correlation to the underlying transaction either
in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a
legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to
the same taxable entity and same taxation authority.

Tax expense for the year comprises of current tax and
deferred tax.

m. REVENUE RECOGNITION
Revenue from contracts

Revenue from contracts with customers is recognised
when control of the goods or services are transferred to the
customer at an amount that reflects the consideration to
which the Company expects to be entitled in exchange for
those goods or services. Revenue is measured based on the
transaction price, which is the consideration, adjusted for
discounts, incentive schemes, if any, as per contracts with
customers.

Interest Income

Interest income from debt instruments is recognised using
the effective interest rate method. The effective interest rate
is rate that exactly discounts estimated future cash receipts
through expected life of the financial asset to gross carrying
amount of a financial asset. When calculating effective
interest rate, the Company estimates expected cash flows by
considering all contractual terms of financial instrument but
does not consider expected credit losses.

Other Income

Other claims including interest on outstanding are accounted
for when there is virtual certainty of ultimate collection.

n. EMPLOYEE BENEFIT SCHEMES
Short-term employee benefits

Employee benefits payable wholly within twelve months
of receiving employee services are classified as short-term
employee benefits. These benefits include salaries and wages,
performance incentives and compensated absences which
are expected to occur in next twelve months.

Gratuity

Liabilities with regard to gratuity benefits payable in future
are determined by actuarial valuation at each Balance Sheet
date using the Projected Unit Credit method. Actuarial gains
and losses arising from changes in actuarial assumptions are
recognized in Other Comprehensive Income and shall not be
reclassified to the Statement of Profit and Loss in subsequent
period.

Provident Fund

Eligible employees of the Company receive benefits from
a Provident Fund, which is a defined benefit plan. Both
the eligible employee and the Company make monthly
contributions to provident fund plan equal to a specified
percentage of covered employee''s salary.

o. FOREIGN CURRENCY

Functional and presentation currency

The management has determined the currency of the primary
economic environment in which the company operates i.e..,
functional currency, to be Indian Rupee (INR). The financial
statements are presented in Indian Rupee in lakhs, which is
company’s functional and presentation currency.

Transactions and balances

Foreign Currency transactions during the year are recorded
at rates of exchange prevailing on the date of transaction in
the functional currency. Foreign currency monetary assets
and liabilities are translated at using the year-end exchange
rate. Exchange gains and losses are duly recognised in the
Statement of profit and loss. All monetary assets and liabilities
in foreign currency are restated at the end of the accounting
period.

p. EARNINGS PER SHARE

a. Basic EPS is calculated by dividing profit/ (loss)
attributable to equity shareholders of the Company by
weighted average number of equity shares outstanding
during the period.

b. Diluted EPS is computed using profit/ (loss) for
the year attributable to shareholder’ and weighted
average number of equity and potential equity shares
outstanding during the period, except where the result
would be anti-dilutive. Potential equity shares that are
converted during the year are included in the calculation
of diluted earnings per share, from the beginning of the
year or date of issuance of such potential equity shares,
to the date of conversion.

---

Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES

a. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The company has adopted Indian Accounting Standards (Ind AS) with effect from 1st April 2017, with transition date of 1st April 2016, pursuant to notification issued by Ministry of Corporate Affairs dated 16th February 2015, notifying the Companies (Indian Accounting Standards) Rules, 2015. Accordingly, the standalone financial statements (hereinafter referred as “Financial statements”) comply with Ind AS prescribed under section 133 of the Companies Act, 2013 (the "Act"), read together with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, relevant provisions of the Act and other accounting principles generally accepted in India.

The financial statements upto and for the year ended on 31st March 2017 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules,2006 (as amended), as notified under section 133 of the Act (Previous Indian GAAP) and other relevant provisions of the Act.

The financial statements are prepared on the historical cost convention, except for certain financial instruments which are measured at fair value. Accounting policies have been consistently applied except where:

i) A newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

ii) The Company presents an additional balance sheet at the beginning of the earliest comparative period when: it applies an accounting policy retrospectively; it makes a retrospective restatement of items in its financial statements; or, when it reclassifies items in its financial statements, and the change has a material effect on the financial statements.

All amounts are stated in Lakhs of Rupees, rounded off to two decimal places, except when otherwise indicated.

The financial statements were authorised for issue by the Board of Directors of the company on 28.05.2024.

b. CURRENT VERSUS NON-CURRENT CLASSIFICATION

All assets and liabilities are classified into current and non-current.

Assets

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

a) it is expected to be realised in, or intended for sale or consumption in, the company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within twelve months after the reporting period; or

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

All other assets are classified as non-current assets

Liabilities

A Liability is classified as current when it satisfies any of the following criteria:

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

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within twelve months after the reporting period; or

d) the company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Terms of liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current liabilities.

c. USE OF ESTIMATES

The preparation of financial statements in conformity with Ind AS requires management to make estimates and assumptions that affect the reported amounts of Revenue, Expenses, Assets and Liabilities and disclosure of contingent liabilities at the end of the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

d. PROPERTY, PLANT AND EQUIPMENT Initial recognition and measurement

The cost of an item of property, plant and equipment is recognized as an asset if, and only if:

a) it is probable that future economic benefits associated with the item will flow to the entity; and

b) the cost of the item can be measured reliably.

Property, Plant and Equipments (''PPE'') are stated at cost of acquisition or construction including 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 less accumulated depreciation and cumulative impairment losses & net of recoverable taxes (net of Cenvat and VAT credit wherever applicable).

Borrowing Cost attributable to acquisition, construction of qualifying assets is capitalized until such time as the assets are substantially ready for their intended use. Indirect expenses during construction period, which are required to bring the asset in the condition for its intended use by the management and are directly attributable to bringing the asset to its position, are also capitalised.

Subsequent Measurement

Subsequent expenditure related to an item of PPE is added to its carrying amount or recognized as a separate asset, if appropriate and carrying amount of replacement parts is derecognized at its carrying value.

Spare parts or stores meeting the definition of PPE, either procured along with equipment or subsequently, are capitalized in the asset’s carrying amount or recognized as separate asset, if appropriate. However, cost of day-to-day servicing are recognized in profit or loss as incurred. Cost of day-to-day service primarily include costs of labour, consumables, and cost of small spare parts.

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

Transition to Ind AS

For 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, 2015 measured as per previous GAAP and use that carrying value as the deemed cost of Property, Plant & Equipment.

Depreciation / amortization

a. Depreciation on items of PPE is provided on straight line method in accordance with the useful life as specified in Schedule II to the Companies Act, 2013.

b. Depreciation on additions to assets or on sale/discard of assets is calculated pro-rata from the date of such addition or up to the date of such sale / discard.

c. Assets residual values and useful lives are reviewed and adjusted, at the end of each reporting period.

Capital Work in Progress comprises of Property, Plant and Equipment that are not ready for their intended use at the end of reporting period and are carried at cost. Cost includes related acquisition expenses, construction cost, borrowing cost capitalized and other direct expenditure. At the point when an asset is capable of operating in the manner intended by management, the cost of construction is transferred to the appropriate category of Property, Plant and Equipment. Costs are capitalised till the period of assets are substantially ready for their intended use. Depreciation is not recorded on capital work-in-progress until construction and installation is complete and the asset is substantially ready for its intended use.

f. RIGHT OF USE ASSETS Company as a Lessee

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain.

The company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

Finance lease

The Company has entered into land lease arrangement at various locations for a period of 90 years. In case of lease of land for 90 years and above, it is likely that such leases meet the criteria that at the inception of the lease the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset. Accordingly, the Company has classified leasehold land as finance leases applying Ind AS 17. For such leases, the carrying amount of the right of-use asset at the date of initial application of Ind AS 116 is the carrying amount of the lease asset on the transition date as measured applying Ind AS 17. Leasehold land is amortised on a straight-line basis over the unexpired period of their respective lease. Leasehold improvements are depreciated on straight line basis over their initial agreement period.

g. INTANGIBLE ASSETS

Intangible assets with finite useful life are stated at cost of acquisition, less accumulated depreciation/ amortisation and impairment loss, if any. The cost of Intangible Assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities). Amortisation is recognised in Statement of Profit and Loss account on straight-line basis over estimated useful lives of respective intangible assets, but not exceeding useful lives given hereunder:

An item of Intangible Asset or any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal.

Any gain or loss arising on de-recognition of the asset (calculated as the difference between net disposal proceeds and carrying amount of the asset) is included in Statement of Profit and Loss Account when asset is derecognised.

h. FINANCIAL INSTRUMENTS

1. Financial Assets

Initial recognition and measurement

Financial Assets are recognised when the Company becomes a party to contractual provisions of Financial Instrument. Financial assets are initially measured at Fair Value. Transaction costs that are directly attributable to acquisition of financial assets (other than financial assets at Fair Value through Profit or Loss) are added to fair value of financial assets. Transaction costs directly attributable to acquisition of financial assets at Fair Value through profit or loss are recognised immediately in statement of Profit and Loss.

Subsequent measurement

I. Debt Instruments at Amortised Cost

A ‘debt instrument’ is measured at amortised cost if both of the following conditions are met:

a. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b. Contractual terms of asset give rise on specified dates to cash flows that are Solely Payments of Principal and Interest (SPPI) on principal amount outstanding.

After initial measurement, such Financial Assets are subsequently measured at amortised cost using Effective Interest Rate (EIR) method. All other debt instruments are measured at Fair Value through Other Comprehensive Income (FVOCI) or Fair Value through Profit and Loss (FVTPL) based on the Company’s business model.

II. Equity Investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at fair value through Profit and Loss (FVTPL). For all other equity instruments, the Company decides to classify the same either as at Fair Value through Other Comprehensive Income (FVOCI) or Fair Value through Profit and Loss (FVTPL) on an instrument-to-instrument basis.

III. Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on financial assets that are debt instruments, and are measured at amortised cost e.g., Loans, Debt Securities, Deposits and Trade Receivables or any contractual right to receive cash or another financial asset that result from transactions that are within scope of Ind AS 115.

The Company follows ‘Simplified Approach’ for recognition of impairment loss allowance on trade receivables. Application of simplified approach recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognising impairment loss allowance based on 12 month ECL.

ECL impairment loss allowance (or reversal) recognized during the period is recognized under the head ‘Other Expenses’ in the statement of Profit and Loss. The Balance Sheet presentation for various financial instruments is described below:

i. Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the Balance Sheet. This allowance reduces the net carrying amount.

ii. Debt instruments measured at FVTPL: Since financial assets are already reflected at fair value, impairment allowance is not further reduced from its value. Change in fair value is taken to the statement of Profit and Loss.

iii. Debt instruments measured at FVTOCI: Since financial assets are already reflected at Fair Value, impairment allowance is not further reduced from its value. Rather, ECL amount is presented as ‘Accumulated Impairment Amount’ in the Other Comprehensive Income (OCI). The Company does not have any Purchased or Originated Credit Impaired (POCI) financial assets,

i.e., financial assets which are credit impaired on purchase/origination.

IV. Derecognition of Financial Assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:

i. The rights to receive cash flows from asset has expired, or

ii. The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass through’ arrangement and either :-

(a) The Company has transferred substantially all risks and rewards of the asset, or

(b) The Company has neither transferred nor retained substantially all risks and rewards of the asset but has transferred control of the asset.

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

2. Financial liability

Initial recognition and measurement

Financial liabilities are classified at initial recognition as:

a. Financial liabilities at fair value through Profit or Loss

b. Loans and Borrowings

c. Payables

All financial liabilities are recognised initially at fair value and in case of loans and borrowings and payables, they are recognised net of directly attributable transaction costs.

Subsequent measurement

Measurement of financial liabilities depends on their classification as below:

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

b. Loans and Borrowings: After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (hereinafter referred as EIR) method. Gains and Losses are recognised in statement of profit and loss when liabilities are derecognised as well as through EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of EIR. EIR amortisation is included as Finance Costs in the statement of profit and loss.

c. Trade and Other Payables: These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid.

Derecognition of Financial liability

A Financial Liability is de-recognised when obligation under the liability is discharged or cancelled or expires.

i. INVESTMENTS Subsidiaries

As per Ind AS 27, Control exists when the Company has power over the entity, is exposed, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affect the entity’s returns.

Investments in subsidiaries are carried at cost as per Ind AS 27.

Associates and Joint Ventures

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to net assets of joint venture. Joint control is contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require unanimous consent of parties sharing control.

An associate is an entity over which the Company has significant influence. Significant influence is power to participate in financial and operating policy decisions of investee but is not control or joint control over those policies.

Investment in joint ventures and associates are carried at cost as per Ind AS 27. Cost comprises price paid to acquire investment and directly attributable cost.

In the above, cost is arrived at by FIFO cost method. In case of Finished Goods and Stock in Process, it also includes manufacturing & related establishment overheads, depreciation etc.

All the spares, which are primarily meant to be used for capitalization (except consumables and maintnance stores), are considered as part of the plant & machinery and shown accordingly.

k. CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents comprise Cash in Hand, Balances in Bank Account, Remittance in Transit, Cheques in hand and Demand Deposits, together with other short-term, highly liquid investments (original maturity less than 3 months) that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

l. TAXES

Current Income Tax

Current Income tax assets and liabilities are measured at amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside Profit and Loss is recognised outside profit and loss (either in Other Comprehensive Income or in Equity). Current tax items are recognised in correlation to underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred Tax

Deferred Income Taxes are calculated using Balance Sheet Approach, on temporary differences between tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except when it is probable that temporary differences will not reverse in foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences and carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to extent that it is probable that taxable profit will be available against which deductible temporary differences and carry forward of unused tax credits and unused tax losses can be utilized.

Carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and same taxation authority.

Tax expense for the year comprises of current tax and deferred tax.

m. REVENUE RECOGNITION Revenue from contracts

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts, incentive schemes, if any, as per contracts with customers. Taxes collected from customers on behalf of Government are not treated as Revenue.

Interest Income

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is rate that exactly discounts estimated future cash receipts through expected life of the financial asset to gross carrying amount of a financial asset. When calculating effective interest rate, the Company estimates expected cash flows by considering all contractual terms of financial instrument but does not consider expected credit losses.

Other Income

Other claims including interest on outstanding are accounted for when there is virtual certainty of ultimate collection.

n. EMPLOYEE BENEFIT SCHEMES Short-term employee benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, performance incentives and compensated absences which are expected to occur in next twelve months.

Gratuity

Liabilities with regard to gratuity benefits payable in future are determined by actuarial valuation at each Balance Sheet date using the Projected Unit Credit method. Actuarial gains and losses arising from changes in actuarial assumptions are recognized in Other Comprehensive Income and shall not be reclassified to the Statement of Profit and Loss in subsequent period.

Provident Fund

Eligible employees of the Company receive benefits from a Provident Fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to provident fund plan equal to a specified percentage of covered employee’s salary.

o. FOREIGN CURRENCY

Functional and presentation currency

The management has determined the currency of the primary economic environment in which the company operates i.e.., functional currency, to be Indian Rupee (INR). The financial statements are presented in Indian Rupee in lakhs, which is company''s functional and presentation currency.

Transactions and balances

Foreign Currency transactions during the year are recorded at rates of exchange prevailing on the date of transaction in the functional currency. Foreign currency monetary assets and liabilities are translated at using the year-end exchange rate. Exchange gains and losses are duly recognised in the Statement of profit and loss. All monetary assets and liabilities in foreign currency are restated at the end of the accounting period.

p. EARNINGS PER SHARE

a. Basic EPS is calculated by dividing profit/ (loss) attributable to equity shareholders of the Company by weighted average number of equity shares outstanding during the period.

b. Diluted EPS is computed using profit/ (loss) for the year attributable to shareholder’ and weighted average number of equity and potential equity shares outstanding during the period, except where the result would be anti-dilutive. Potential equity shares that are converted during the year are included in the calculation of diluted earnings per share, from the beginning of the year or date of issuance of such potential equity shares, to the date of conversion.

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Mar 31, 2015

A) ACCOUNTING CONVENTION

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India under the historical cost convention on accrual basis. Pursuant to Section 133 of the Companies Act, 2013 ("the Act"), read with Rule 7 of the Companies(Accounts) Rules 2014, till the standards of accounting or any addendum therto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) of the Companies Act, 1956 (Companies (Accounting Standards) Rules, 2006, as amended) and other relevant provisions of the Companies Act, 2013.

b) RECOGNITION OF INCOME AND EXPENDITURE

Revenues/Incomes and Cost/Expenditures are accounted on accrual as they are earned or incurred in accordance with the generally accepted accounting principles, Accounting Standard and provisions of the Companies Act, 1956. The service charges are recognised at gross amount received / receivable on completion of performance or receipt, whichever is earlier.

c) RETIREMENT AND PENSION BENEFITS

i) Retirement benefits in the form of Provident fund and Family Pension fund is a defined contribution scheme and the contributions are charged to the profit and loss account of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

ii) Gratuity is a defined benefit obligation. Gratuity liability is accrued and provided for on the basis of an actuarial valuation on the projected unit credit method made at the end of the financial year.

iii) Long term compensated balances in the form of leave encashment are provided for based on actuarial valuation at the end of the financial year. The actuarial valuation is done as per projected unit credit method.

iv) Actuarial gains/losses are debited to profit and loss account and are not deferred.

d) FIXED ASSETS

i) Fixed Assets are stated at cost, less accumulated depreciation other than 'Leasehold Land', where no amortization is made. The cost includes taxes, duties, freight and other incidental expenses related to acquisition, installation and commissioning.

ii) Capital subsidies, if any, on acquisition of specified fixed assets are reduced from the original cost and the net amount are adopted as the historical cost of gross block and depreciated accordingly.

iii) Capital work in progress is capitalized as fixed assets on the date of commissioning of the asset.

e) METHOD OF DEPRECIATION AND AMORTISATION:

i) Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method (SLM).Depreciation is provided based on useful life of the assets as prescribed in the Schedule II of the Companies Act,2013.

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

f) VALUATION OF INVENTORIES :

i) Raw Material, Packing Material- At cost

ii) Finished Goods (Including Goods in Transit)- At cost or net realisable value

iii) Stock in Process- At cost

iv) By Products- At net realisable value

v) Loose Tools- At cost and charged off when discarded

In the above, cost is arrived at by weighted average cost method and in case of Finished Goods and Stock in Process it also includes manufacturing & related establishment overheads, interest and depreciation.

g) INCOME TAX

Provision for current Income Tax is made on the basis of estimated taxable income after taking into consideration, estimates of benefits admissible under the provisions of Income Tax, 1961. The company provides for deferred tax liability (after netting off deferred tax assets), based on the tax effect of timing difference resulting from the recognition of items in the financial statements. Deferred tax assets (after, netting of deferred tax liabilities), are generally not recognized unless there is strong circumstances exists for its adjustment/realization in near future.

h) SEGMENT REPORTING:

The segment reporting, if any & to the extent identified, is made in accordance with the company's accounting policies as enumerated above unless otherwise separately stated along with the segment results.

I) PROVISIONS AND CONTINGENT LIABILITIES:

i) A provision is recognized when the company has a present obliation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

ii) The disclosure is made for all possible or present obligations that may but probably will not required outflow of resources, as contingent liability in the financial statements.

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Mar 31, 2010

1. ACCOUNTING CONVENTION

The financial statements are prepared under the historic cost convention, without following the on going concern assumption in view of the discontinued operations & cessation of business activities, in accordance with the applicable accounting standards as specified under Companies (Accounting Standards) Rules 2006.

2. RECOGNITION OF INCOME AND EXPENDITURE:

Revenues/Incomes and Cost/Expenditures are accounted on accrual as they are earned or incurred in accordance with the generally accepted accounting principles, Accounting Standard and provisions of the Companies Act, 1956. The service charges are recognised at gross amount received / receivable on completion of performance or receipt, whichever is earlier.

3. RETIREMENT AND PENSION BENEFITS

i) Retirement benefits in the form of Provident fund and Family Pension fund is a defined contribution scheme and the contributions are charged to the profit and loss account of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

ii) Gratuity is a defined benefit obligation. Gratuity liability is accrued and provided for on the basis of an actuarial valuation on the projected unit credit method made at the end of the financial year.

iii) Long term compensated balances in the form of leave encashment are provided for based on actuarial valuation at the end of the financial year. The actuarial valuation is done as per projected unit credit method.

iv) Actuarial gains/losses are debited to profit and loss account and are not deferred.

4. FIXED ASSETS

i) Fixed Assets are stated at cost, less accumulated depreciation other than ‘Leasehold Land, where no amortization is made. The cost includes taxes, duties, freight and other incidental expenses related to acquisition, installation and commissioning.

ii) Capital subsidies, if any, on acquisition of specified fixed assets are reduced from the original cost and the net amount are adopted as the historical cost of gross block and depreciated accordingly.

iii) Capital work in progress is capitalized as fixed assets on the date of commissioning of the asset.

5. METHOD OF DEPRECIATION AND AMORTISATION:

i) a) Depreciation on Fixed Assets is provided at the relevant rates of depreciation in respect of Straight Line Method as specified in Schedule XIV to the Companies Act, 1956;

b) The depreciation on assets costing up to Rs.5,000 are depreciated at the rate of hundred percent on pro-rata basis. However where the aggregate cost of individual items of plant and machinery, costing up to Rs.5,000, constitutes more than 10% of the total actual cost of Plant & Machinery, rates of depreciation on such items have been charged as specified in the schedule.

ii) Depreciation on additions to assets or on sale/ discardment of assets is calculated pro-rata from the date of such addition or up to the date of such sale/ discardment, as the case may be.

iii) No amounts are written off against Leasehold Land by way of amortization.

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

6. VALUATION OF INVENTORIES : Method of Valuation

Raw Material, Packing Material & Consumables: At Cost

Finished Goods (Including Goods in Transit) : At Cost or net realisable value whichever is lower.

Stock in Process : At Cost

By Products : At net realisable value

Loose Tools : At cost and charged off when discarded

In the above, cost is arrived at by weighted average cost method and in case of Finished Goods and Stock in Process it also includes manufacturing & related establishment overheads, interest and depreciation.

7. INCOME TAX:

Provision for current Income Tax is made on the basis of estimated taxable income after taking into consideration, estimates of benefits admissible under the provisions of Income Tax, 1961. The company provides for deferred tax liability (after netting off deferred tax assets), based on the tax effect of timing difference resulting from the recognition of items in the financial statements. Deferred tax assets (after, netting of deferred tax liabilities), are generally not recognized unless there is strong circumstances exists for its adjustment/realization in near future.

8. SEGMENT REPORTING:

The segment reporting, if any & to the extent identified, is made in accordance with the companys accounting policies as enumerated above unless otherwise separately stated along with the segment results.

9. PROVISIONS AND CONTINGENT LIABILITIES:

A provision is recognized when the company has a present obliation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. The disclosure is made for all possible or present obligations that may but probably will not required outflow of resources, as contingent liability in the financial statements.