SVC Industries Ltd. कंपली की लेखा नीति

Mar 31, 2025

Note No. 2-Material Accounting Policies:

2.1 Basis of Preparation and presentation of the Financial Statements:

These financial statements have been prepared in accordance with Indian Accounting Standards find AS") as notified under section
133 of the CompaniesAct, 2013 read with the Companies (Indian Accounting Standard) Rules, 2015 and the relevant provisions of the
Companies Act, 2013 ("the Act"). The financial statements are prepared in accordance with the historical cost convention, except for
certain items that are measured atfair value.

Company’s Financial Statements are presented in Indian Rupee, which is also its functional currency and all values are rounded to lakh,
except wherever otherwise indicated.

2.2 Use of Estimates

The preparation of financial statements in conformity with Ind AS requires that the management of the company make estimates and
assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and
the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates include useful lives of property, plant and equipment, intangible
assets, allowance for doubtful debts/advances, future obligations in respect of retirement benefit plans and fair value measurement etc.
Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.

"All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria
set out in the Schedule III to the Companies Act, 2013 and Ind AS 1 - Presentation of Financial Statements based on the nature of
products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company
has considered an operating cycle of 12 months.”

The financial statements for the year ended 31 st March, 2025 were approved by the Board of Directors and authorised for issue on 27th
May, 2025.

2.3 Property, Plantand Equipments:

Property, Plant and Equipments are stated at cost less accumulated depreciation and impairment tosses, if any. All expenditure
pertaining to project under construction and other preoperative expenses and losses including trial run expenses and interest cost (net of
income accrued) incurred during the construction period, unless otherwise stated, are capitalized till the commencement of commercial
production / till the date assets are putto use.

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

2.4 Depreciation:

Depreciation on Property, Plant and Equipment has been provided on Straight Line method by considering revised useful life as
specified in Part ''C'' of Schedule II to the CompaniesAct 2013.

2.5 Impairment of Non-financial Assets -Property, Plantand Equipment:

An asset is impaired when the carrying cost of the asset exceeds its recoverable value. An Impairment Loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired. The Impairment Loss recognized in earlier accounting periods is
reversed if there has been a change in the estimate of recoverable amount as specified in Ind AS 36 on ''Impairment of Assets''.

The carrying amount of assets is reviewed periodically at each balance sheet date if there is any indication of impairment based on
internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.
After impairment, depreciation is provided on the revised carrying amount ofthe asset over its remaining useful life.

2.6 Financial Instruments:

I. FinancialAssets

a. Initial Recognition and Measurement

All financial assets are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of
financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial
recognition. Purchase and sale of financial assets are recognised using trade date accounting. However trade receivables that do
not contain significant financing component are measured at transaction price.

b. Subsequent Measurement

I) Financialassetscarriedatamortized cost

Afinancial assets is measured at amortized cost if it is held within business model whose objective is to hold the asset in orderto
collect contractual cash flows and the contractual terms ofthe financial assets give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

ii) Financial assets at fair value through other comprehensive income (FVTOCI)

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

iii) Financial assets at fair value through profit or loss (FVTPL)

Afinancial asset which is not classifying in any ofthe above categories are measured at FVTPL.

c. Impairment of FinancialAssets

For evaluating impairment of financial assets the management ofthe company assesses if there is any significant increase in the
credit risks pertaining to respective financial assets and accordingly recognises necessary provisions whenever required based of
the company''s past history of recovery, creditworthiness of the counter party and the existing market conditionsat thattime.

II. Financial Liabilities

a. Initial recognition and measurement

All financial liabilities are recognized affair value and in case of loans, net of directly attributable cost Fees of recurring nature are
directly recognised in the Statement of Profit and Loss as finance cosl

b. Subsequent measurement

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

c. Derecognition of Financial Instruments

Financial asset is derecognised on expiry of the contractual right to the cash flows from financial asset or transfer of the financial
asset where the transfer qualifies for derecognitbn under IND AS 109. A financial liability (or part of a financial liability) is
derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires
or completes its life or if determined by the management that liability is no longer required to be paid.

2.7 Deferred Tax:

No provision for the deferred tax liability/ asset arising out of time difference has been made in the absence of reasonable certainty
that the taxable income will be generated by the company in nearfuture to offsetthe losses.

2.8 Revenue Recognition

I) Income from lease transactions is accounted on accrual basis, pro-rata for the period, at the rates implicit in the transaction.

ii) Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic
benefits will flow to the group and the amount of income can be measured reliably.

2.9 Inventories:

Inventories are valued at the lower of cost and net realisable value. Cost of raw materials, components and consumables are
ascertained on a moving weighted average basis. Cost of in ventories also include all other costs incurred in bringing the inventories
to their present location and condition.

2.10 Tax Credits:

Goods & Service Tax credits is accounted by recording the capital assets/raw material, stores and spares acquired during the year
net of Input Tax Credit. GST credit has been recognised as non current assets and the same will be utilised for payments of future tax
liabilities.

2.11 Employee Benefits:

i) Defined Contribution Plans:

Retirement benefit in the form of Provident Fund and Pension Fund are defined contribution scheme and the contributions are
charged to the respective accounts ofthe yearwhen the contributions to the respective funds are due. There are no other short term
obligations other than the contribution payable against the funds.

ii) Defined Benefit Plans

Provision for Gratuity and Leave Encashment payable on retirement to the employees are made on the basis of actual period of their
service and at prescribed rates irrespective of their ineligibility due to short tenure of their service. The present value ofthe defined
benefit obligation is recognized in the balance sheet as a non-current liability, net of any plan assets. As at the reporting date, the
Company has recognized the entire defined benefit obligation in its financial statements; however, no separate fund or investment
has been set aside to meet these obligations.

2.12 Related Party Transaction:

Related party transaction as identified by the management within the meaning of IND AS-24 regarding “Related Party Disclosure”
are provided as per Note No. 36.

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Mar 31, 2024

Note No. 1 - Corporate Information

SVC Industries Limited ''the Company''is a listed public limited company incorporated in India having registered office at 301, Shubham Centre -1, Near Holy Family Church, 491, Cardinal Gracious Road, Andheri (East), Mumbai - 400 099. The Company is listed on the BSE Limited. The company has warehousing facilities at Village Bhadawal, Chhatta, Chatta-Barsana Road, District Mathura, Uttar Pradesh and was engaged in the business of leasing of warehouses. The project of for setting up a Mega Food Park was abandoned due to changed policies of the Government, accordingly the lease agreement with Nandvan Mega Food Park Pvt. Ltd. was cancelled vide deed of cancellation agreement dated 20th March, 2024. Subsequent to the year company has decided to diversify its operations in the Agri-Business division &Setting upof Farmer Helping Center in Chhatta, District Mathura, Uttar Pradesh.

Note No.2-Material Accounting Policies:

2.1 Basis of Preparation and presentation of the Financial Statements:

These financial statements have been prepared in accordance with Indian Accounting Standards ("Ind AS") as notified under section 133 of the Companies Act 2013 read with the Companies (Indian Accounting Standard) Rules, 2015 and the relevant provisions of the Companies Act 2013 ("the Act"). The financial statements are prepared in accordance with the historical cost convention, except forcertain items that are measured atfair value.

Company’s Financial Statements are presented in Indian Rupees, which is also its functional currency and all values are rounded to lakh, except wherever otherwise indicated.

2.2 Use of Estimates

The preparation of financial statements in conformity with Ind AS requires thatthe management of the company make estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates include useful lives of property, plant and equipment, intangible assets, allowance for doubtful debts/advances, future obligations in respect of retirement benefit plans and fair value measurement etc. Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1 - Presentation of Financial Statements based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents.

2.3 Property, Plant and Equipments:

Property, Plant and Equipments are stated at cost less accumulated depreciation and impairment losses, if any. All expenditure pertaining to project under construction and other preoperative expenses and losses including trial run expenses and interest cost (net of income accrued) incurred during the construction period, unless otherwise stated, are capitalized till the commencement of commercial production / till the date assets are putto use.

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

2.4 Investment property

"Properties held to earn rentals and/or capital appreciation are classified as investment property and are measured and reported at fair value.”

Depreciation is recognised using straight line method so as to writeoff the cost of the investment property less their residual values over their useful lives specified in Schedule II to the Companies Act, 2013, or in the case of assets where the useful life was determined by technical evaluation, overthe useful life so determined. Depreciation method is reviewed at each financial year end to reflect the expected pattern of consumption of the future benefits embodied in the investment property. The estimated useful life and residual values are also reviewed at each financial year end and the effect of any change in the estimates of useful life/residual value is accounted on prospective basis.

"An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of property is recognised in the Statement of Profit and Loss in the same period. The transfer of assets to, or from, investment property when, there is a change in use Achange in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use."

2.5 Depreciation:

Depreciation on Fixed Assets has been provided on Straight Line method by considering revised useful life as specified in Part ''C'' of Schedule 11 to the Companies Act 2013.

2.6 Impairment of Non-financial Assets-Property, Plant and Equipment:

An asset is impaired when the carrying cost of the asset exceeds its recoverable value. An Impairment Loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The Impairment Loss recognized in earlier accounting periods is reversed if there has been a change in the estimate of recoverable amount as specified in Ind AS 36 on ''Impairment of Assets''.

The carrying amount of assets is reviewed periodically at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. After impairment depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

2.7 Financial Instruments:

I. Financial Assets

a. Initial Recognition and Measurement

All financial assets are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting. However trade receivables that do not contain significant financing component are measured at transaction price.

b. Subsequent Measurement

i) Financial assets carried at amortized cost

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

ii) Financial assets at fair value through other comprehensive income (FVTOCI)

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

iii) Financial assets affair value through profit or loss (FVTPL)

Afinancial asset which is not classifying in any of the above categories are measured at FVTPL.

c. Impairmentof Financial Assets

For evaluating impairment of financial assets the management of the company assesses if there is any significant increase in the credit risks pertaining to respective financial assets and accordingly recognises necessary provisions whenever required based of the company''s past history of recovery, creditworthiness ofthe counter party and the existing market conditions at thattime.

II. Financial Liabilities

a. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost

b. Subsequent measurement

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

c. Derecognition of Financial Instruments

Financial asset is derecognised on expiry of the contractual right to the cash flows from financial asset or transfer of the financial asset where the transfer qualifies for derecognition under IND AS 109. A financial liability (or part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires or completes its life or if determined by the management that liability is no longer required to be paid.

2.8 Deferred Tax:

No provision for the deferred tax liability/ asset arising out of time difference has been made in the absence of reasonable certainty that the taxable income will be generated by the company in near future to offset the tosses.

2.9 Revenue Recognition

Income from lease transactions is accounted on accrual basis, pro-rata for the period, at the rates implicit in the transaction.

Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic benefits willflowto the group and the amount of income can be measured reliably.

2.10 Inventories:

Inventories are valued at the lower of cost and net realisable value. Cost of raw materials, components and consumables are ascertained on a moving weighted average basis. Cost of inventories also include all othercosts incurred in bringing the inventories to their present location a nd condition.

2.11 Tax Credits:

Goods & Service Tax credits is accounted by recording the capital assets/raw material, stores and spares acquired during the year net of Input Tax Credit. GST credit has been recognised as non current assets and the same will be utilised for payments of future tax liabilities.

2.12 Employee Benefits:

i) Defined Contribution Plans:

Retirement benefit in the form of Provident Fund and Pension Fund are defined contribution scheme and the contributions are charged to the respective accounts of the year when the contributions to the respective funds are due. There are no othershort term obligations other than the contribution payable against the funds.

ii) Defined Benefit Plans

Provision for Gratuity and Leave Encashment payable on retirement to the employees are made on the basis of actual period of their service and at prescribed rates irrespective of their ineligibility due to short tenure of their service. Company has not made provision or Investment as per IND AS-19 due to closure of plant activity but has made provisions as stated above.

2.13 Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets in terms of IND AS-23 on "Borrowing cost”. Aqualifying asset is one that necessarily takes a substantial period of time to get ready for intended use.

2.14 Related Party Tran sacti on:

Related party transaction as identified by the management within the meaning of IND AS-24 regarding “Related Party Disclosure" are provided as per Note No. 36.

2.15 Provisions, Contingent liabilities & Contingent Assets:

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

2.16 Segment Reporting

Based on “Management Approach" as defined by Ind AS 108, The Chief Operating Decision Maker (CODM) evaluates the "Operating Segments". Operating segments are reported in a manner consistent with the internal reporting provided to the CODM. The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the Company. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. The company has only one segment about leasing of warehouses as of now.

2.17 Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended 31st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

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Mar 31, 2023

Note No. 2 - Significant Accounting Policies:

2.1 Basis of Preparation and presentation of the Financial Statements:

These financial statements have been prepared in accordance with Indian Accounting Standards ("Ind AS") as notified, under historical costs convention (except for certain financial instruments which have been measured at fair value) and the relevant provisions of the Companies Act, 2013 (''the Act'') (to the extent notified). The Ind AS are prescribed under section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standard) Rules, 2015 and relevant amendment rules issued thereafter.

Company''s Financial Statements are presented in Indian Rupees, which is also its functional currency and all values are rounded to lakh, except wherever otherwise indicated.

2.2 Use of Estimates

The preparation of financial statements in conformity with Ind AS requires that the management of the company make estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates include useful lives of property, plant and equipment, intangible assets, allowance for doubtful debts/advances, future obligations in respect of retirement benefit plans and fair value measurement etc. Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.

2.3 Property, Plant and Equipments:

Property, Plant and Equipments are stated at cost net of input tax credits (wherever applicable) less accumulated depreciation and impairment losses, if any. All expenditure pertaining to project under construction and other preoperative expenses and losses including trial run expenses and interest cost (net of income accrued) incurred during the construction period, unless otherwise stated, are capitalized till the commencement of commercial production / till the date assets are put to use.

2.4 Investment property

Properties held to earn rentals and/or capital appreciation are classified as investment property and are measured and reported at fair value .

Depreciation is recognised using straight line method so as to write off the cost of the investment property less their residual values over their useful lives specified in Schedule II to the Companies Act, 2013, or in the case of assets where the useful life was determined by technical evaluation, over the useful life so determined. Depreciation method is reviewed at each financial year end to reflect the expected pattern of consumption of the future benefits embodied in the investment property. The estimated useful life and residual values are also reviewed at each financial year end and the effect of any change in the estimates of useful life/residual value is accounted on prospective basis.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of property is recognised in the Statement of Profit and Loss in the same period.

2.5 Depreciation and Amortizations:

Depreciation on Fixed Assets has been provided on Straight Line method by considering revised useful life as specified in Part ''C'' of Schedule II to the Companies Act 2013.

2.6 Impairment of Non-financial Assets - Property, Plant and Equipment :

An asset is impaired when the carrying cost of the asset exceeds its recoverable value. An Impairment Loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The Impairment Loss recognized in earlier accounting periods is reversed if there has been a change in the estimate of recoverable amount as specified in Ind AS 36 on ‘Impairment of Assets''.

The carrying amount of assets is reviewed periodically at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

2.7 Financial Instruments:

I. Financial Assets

a. Initial Recognition and Measurement

All financial assets are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting. However trade receivables that do not contain significant financing component are measured at transaction price.

b. Subsequent Measurement

i) Financial assets carried at amortized cost

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

ii) Financial assets at fair value through other comprehensive income (FVTOCI)

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

iii) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classifying in any of the above categories are measured at FVTPL.

c. Investment in Group Entities

The company accounts for its investment in group entities at cost less impairment loss, if any.

d. Impairment of Financial Assets

In accordance with IND AS 109, the Company uses Expected Credit Loss (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

The company applies simplified approach for trade receivables. Simplified approach recognizes impairment loss allowance based on lifetime expected credit loss at each reporting date, right from its initial recognition.

For other assets, the company uses 12 month expected credit loss (ECL) to provide for impairment loss where there is no significant increase in significant risk. If there is significant increase in credit risk full lifetime ECL is used.

II. Financial Liabilities

a. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

b. Subsequent measurement

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

c. Derecognition of Financial Instruments

Financial asset is derecognised on expiry of the contractual right to the cash flows from financial asset or transfer of the financial asset where the transfer qualifies for derecognition under IND AS 109. A financial liability (or part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires or completes its life.

28. Income-Tax :

No provision for the deferred tax liability/ asset arising out of time difference has been made, since the deferred tax liability/ asset arise from transactions which affect neither accounting profit nor taxable profit/ loss.

2.9 Revenue Recognition

i) Income from lease transactions is accounted on accrual basis, pro-rata for the period, at the rates implicit in the transaction.

ii) Interest income on investments and loans is accrued on a time basis by reference to the principal outstanding.

iii) Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic benefits will flow to the group and the amount of income can be measured reliably.

2.10 Foreign Exchange Transaction:

i) Transactions in foreign currencies are recorded at the exchange rates prevailing at the time of the transactions.

ii) Foreign Currency transactions remaining unsettled at the end of the year are re-stated in rupee value at the year end rates.

iii) Changes in liability arising out of such re-statement pertaining to acquisition of fixed assets is treated as an adjustment to the carrying cost of such fixed assets.

2.11 Inventories:

Inventories are valued on first-in-first-out basis, at cost.

2.12 Tax Credits:

Goods & Service Tax credits is accounted by recording the capital assets/raw material, stores and spares acquired during the year net of Input Tax Credit. GST credit has been recognised as non current assets and the same will be utilised for payments of future tax liabilities.

2.13 Employee Benefits :

i) Defined Contribution Plans:

Retirement benefit in the form of Provident Fund and Pension Fund are defined contribution scheme and the contributions are charged to the respective accounts of the year when the contributions to the respective funds are due. There are no other short term obligations other than the contribution payable against the funds.

ii) Defined Benefit Plans

Provision for Gratuity and Leave Encashment payable on retirement to the employees are made on the basis of actual period of their service and at prescribed rates irrespective of their ineligibility due to short tenure of their service. Company has not made provision or Investment as per IND AS-19 due to closure of plant activity but has made provisions as stated above.

2.14 Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets in terms of IND AS-23 on “Borrowing cost”. A qualifying asset is one that necessarily takes a substantial period of time to get ready for intended use.

2.15 Related Party Transaction:

Related party transaction as identified by the management within the meaning of IND AS-24 regarding “Related Party Disclosure” are provided as per Note No. 36.

2.16 Lease Transactions :

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the noncancellable period of a lease.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.

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Mar 31, 2018

Notes forming part of the financial statement for the year ended

31st March, 2018 1 CORPORATE INFORMATION

SVC Industries Limited (Formerly known as SVC Superchem Ltd) ''the Company'' was incorporated in India on 29th August''1989. It had set up a PTA plant at village Chhata in district Mathura in the State of UP. The plant, after successful trial run, had been put under shut down since September 2000 due to various reasons beyond control of the Company. Company has now abandoned its PTA project and is in process of utilizing its infrastructure for new industrial activities.

2 SIGNIFICANT ACCOUNTING POLICIES:

2.1 Basis of Preparation of Financial Statement :

These financial statements have been prepared in accordance with IND AS as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 (" Indian GAAP"). In accordance with the notification issued by the Ministry of corporate affairs, the company has adopted Indian Accounting Standards (referred to as IND As) notified under the Companies (Indian Accounting Standard) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 with effect from April 1, 2016. The adoption was carried out in accordance with IND AS 101, First time adoption of Indian Accounting Standards. Accordingly, previous year''s figures have been restated according to IND AS and the company has presented a reconciliation of impact of transition from the presentation of financial statements under Accounting Standards notified under the Companies ( Accounting Standards) Rules, 2006 ("Previous GAAP") to IND As of Shareholders'' equity as at March 31, 2017 and April 1, 2016 and of the Comprehensive net income for the year ended March 31, 2017.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard require a change in the accounting policy hitherto in use. The financial statements have been prepared on accrual basis under historical cost convention except for certain assets and liabilities which have been measured at fair value amount.

2.2 Use of Estimates

The preparation of financial statements in conformity with Ind AS requires that the management of the company make estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates include useful lives of property, plant and equipment, Intangible assets, allowance for doubtful debts/advances, future obligations in respect of retirement benefit plans and fair value measurement etc. Difference, if any, between the actual results and estimates is recognized in the period in which the results are known.

2.3 Property, Plant and Equipment’s:

Property, Plant and Equipment’s are stated at cost net of input tax credits. All expenditure pertaining to project under construction and other preoperative expenses and losses including trial run expenses and interest cost (net of income accrued) incurred during the construction period, unless otherwise stated, are capitalized till the commencement of commercial production / till the date assets are put to use.

2.4 Depreciation and Amortizations:

Depreciation on Fixed Assets except Capital work-in-progress has been provided on Straight Line method by considering revised useful life as specified in part ''C'' of schedule II to the companies Act 2013.

2.5 Impairment of Non-financial Assets - property, plant and equipment:

An asset is impaired when the carrying cost of the asset exceeds its recoverable value. An Impairment Loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The Impairment Loss recognized in earlier accounting periods is reversed if there has been a change in the estimate of recoverable amount as specified in Ind AS 36 on ''Impairment of Assets''.

The carrying amount of assets is reviewed periodically at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

2.6 Financial Instruments:

i) Financial Assets

a. Initial Recognition and Measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognized using trade date accounting.

b. Subsequent Measurement

i) Financial assets carried at amortized cost

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

ii) Financial assets at fair value through other comprehensive income (FVTOCI)

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

iii) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classifying in any of the above categories are measured at FVTPL.

c) Impairment of Financial Assets

In accordance with IND AS 109, the Company uses '' Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

The company applies simplified approach for trade receivables. Simplified approach recognizes impairment loss allowance based on lifetime expected credit loss at each reporting date, right from its initial recognition.

For other assets, the company uses 12 month expected credit loss (ECL) to provide for impairment loss where there is no significant increase in significant risk. If there is significant increase in credit risk full lifetime ECL is used.

ii) Financial Liabilities

A) Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognized in the Statement of Profit and Loss as finance cost.

B) Subsequent measurement

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

iii) Derecognition of Financial Instruments

Financial assets is derecognised on expiry of the contractual rights to the cash flows from financial assets expires or transfer of the financial asset and the transfer qualifies for derecognition under IND AS 109. A financial liability ( or a part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expired or completes its life.

2.7 Income-Tax :

No provision for the deferred tax liability/ asset arising out of time difference has been made, since the deferred tax liability/ asset arise from transactions which affect neither accounting profit nor taxable profit/ loss.

2.8 Foreign Exchange Transaction:

i) Transactions in foreign currencies are recorded at the exchange rates prevailing at the time of the transactions.

ii) Foreign Currency transactions remaining unsettled at the end of the year are re-stated in rupee value at the year end rates.

iii) Changes in liability arising out of such re-statement pertaining to acquisition of fixed assets is treated as an adjustment to the carrying cost of such fixed assets.

2.9 Inventories:

Inventories are valued on first-in-first-out basis, at cost.

2.10 GST Credit:

GST credit is accounted by recording the capital assets/raw material, stores and spares acquired during the year net of Input Tax Credit. GST credit is adjusted against sale of scrap. Unutilized portion of cenvat credit is transferred to Input Tax Credit of GST.

2.11 Employee Benefits :

i) Defined Contribution Plans:

Retirement benefit in the form of Provident Fund and Pension Fund are defined contribution scheme and the contributions are charged to the the respective accounts of the year when the contributions to the respective funds are due. There are no other short term obligations other than the contribution payable against the funds.

ii) Defined Benefit Plans

Provision for Gratuity and Leave Encashment payable on retirement to the employees are made on the basis of actual period of their services and at prescribed rates irrespective of their illegibility due to short tenure of their services. Company has not made any provisions or Investment as per IND AS-19 due to closure of plant activity but has made provisions as state above.

2.12 Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets in terms of IND AS-23 on “Borrowing cost”. A qualifying asset is one that necessarily takes a substantial period of time to get ready for intended use.

2.13 Related Party Transaction:

Related party transaction as identified by the management within the meaning of IND AS-24 regarding “Related Party Disclosure” are provided as per Note No. 33.

2.14 Lease Transactions :

The lease rent payable during the project construction period, in terms of the lease agreement entered into by the Company and the “Lessor”, is charged to “Capital Work in progress” under the head pre-operative expenses.

2.15 Provisions, Contingent liabilities & Contingent Assets :

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be a outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes, Contingent Assets are neither recognized nor disclosed in the financial statement.

2.16 Segment Reporting

The company has not commenced commercial activities hence segment reporting is not applicable to the company.

2.17 First Time Adoption of IND AS

The standalone financial statements of SVC Inustries Limited (Formerly known as SVC Superchem Limited) for the year ended March 31, 2018 have been prepared in accordance with IND AS. For the purposes of transition to IND AS, the Company has followed the guidance prescribed in IND-AS 101 " First Time Adoption of Indian Accounting Standards" with April 1, 2016 as the transition date and IGAAP as the previous GAAP.

The transition to IND-AS has resulted in changes in the presentation of financial statements, disclosures in notes thereto and accounting policies and principals. All applicable IND AS have been applied consistently and retrospectively wherever required. The figures for the previous period have been restated, regrouped and reclassified where ever required to comply with the requirement of IND AS and Schedule III. The impact of transition has been credited to Ind. AS Transition Reserve as at April 1st, 2016.

In preparing these financial statements, the company has availed certain exemptions and exceptions in accordance with IND AS 101 as explained below:

i) Property, Plant and Equipment exemption:

The Company has elected to measure items of plant and equipment (part of capital work in progress) and intangible assets at fair value on transition date.

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Mar 31, 2017

SVC Superchem Limited Notes forming part of the financial statement for the year ended 31st March, 2017 1. CORPORATE INFORMATION

SVC Superchem Ltd ''the Company'' was incorporated in India on 29th August''1989 and was implementing pTa project at its plant site at chhata Barsana road ,chhata, Mathura(UP).Company''s plant under construction has been under shut down condition since September, 2000 due to various reasons beyond its control, after successful trial run. Company has its registered office at Mumbai .

2. SIGNIFICANT ACCOUNTING POLICIES:

2.1 Basis of accounting and preparation of financial statements :

I) The financial statements have been prepared under the historical cost convention on an accrual basis to comply in all material aspects with applicable accounting principles in India including accounting standards notified u/s 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules,2014.

ii) The Company generally follows mercantile system of accounting and unless otherwise stated recognizes significant item of income and expenditure on accrual basis.

2.2 Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of incomes and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

2.3 Fixed Assets(Tangible):

Fixed assets are stated at cost net of cenvat. All expenditure pertaining to project under construction and other preoperative expenses and losses including trial run expenses and interest cost (net of income accrued) incurred during the construction period, unless otherwise stated, are capitalized till the commencement of commercial production / till the date assets are put to use.

2.4 Depreciation and Amortizations:

Depreciation on Fixed Assets except Capital work-in-progress has been provided on Straight Line method by considering revised useful life as specified in part ''C'' of schedule II to the companies Act 2013.

2.5 Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value on technical evaluation. Company has not made any evaluation about the recoverable value of its assets, hence the impairment loss, if any, are not identified and will be written off in the accounts in the Year in which such losses are identified as impaired, as specified in Accounting Standard (AS-28) on impairment of assets.(Refer note no. 16).

2.6 Income-Tax :

No provision for the deferred tax arising out of time difference has been made, as the company has not prepared any Profit & Loss Account as commercial production has not started till the date of Balance Sheet and no trading or service activities were carried out during financial year ended on that date.

2.7 Foreign Exchange Transaction:

I) Transactions in foreign currencies are recorded at the exchange rates prevailing at the time of the transactions.

ii) Foreign Currency transactions remaining unsettled at the end of the year are re-stated in rupee value at the yearend rates.

iii) Changes in liability arising out of such re-statement pertaining to acquisition of fixed assets is treated as an adjustment to the carrying cost of such fixed assets.

2.8 Inventories:

Inventories are valued on first-in-first-out basis, at cost.

2.9 Cenvat Credit:

Cenvat credit is accounted by recording the capital assets/raw material, stores and spares acquired during the year net of Cenvat Credit. Cenvat Credit receivable is shown under Other Non Current Assets.

2.10 Excise duty:

Excise duty is accounted on clearance of goods and provision, as applicable, is made in respect of finished goods lying unsold.

2.11 Sales:

Sales are accounted net of excise duty, VAT and discounts

2.12 Retirement Benefits(Employees):

Provision for Gratuity and Leave Encashment payable on retirement to the employees are made on the basis of actual period of their services and at prescribed rates irrespective of their illegibility due to short tenure of their services. Company has not made any provisions or Investment as per AS-15 due to closure of plant activity since 2000 but has made provisions as state above.

2.13 Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are to be capitalized as part of the cost of such assets when accounts are settled with lender and interest liability crystallized subject to note no.16 hereinafter, in terms of Accounting Standard (AS-16) on “Borrowing cost” issued by the Institute of Chartered Accountants of India, a qualifying asset is one that necessarily takes a substantial period of time to get ready for intended use.

2.14 Related Party Transaction:

Related party transaction as identified by the management within the meaning of Accounting Standard (AS-18) regarding “Related Party Disclosure” are provided as per Note No.27.

2.15 Lease Transactions :

The lease rent payable during the project construction period, in terms of the lease agreement entered into by the Company and the “Less or”, is charged to “Capital Work in progress” under the head pre-operative expenses.

2.16 Provisions, Contingent liabilities & Contingent Assets :

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be a outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes, Contingent Assets are neither recognized nor disclosed in the financial statement.

(d) Call in arrear is due on 2,73,713 Equity shares which are partly paid and held by others read with Note No. 19 hereinafter

(e) Details of shareholders holding more than five percent equity shares in the Company are as under:

Note: The Company has entered into an agreement with a Stategic Investors to take over the loans from its all existing lenders directly or indirectly through other agencies and has agreed to pay as per Strategic Investment Agreement within 24 months from the date when 100% loans are taken over by strategic Investors directly or indirectly. The modification of charge in favour of strategic investor for the loans acquired/settled/repaid by Strategic investor has been completed in certain cases while for some of loans are in progress.

The above borrowings include

(a) Non-Convertible Debentures of Rs.2972.21 lacs (Rs. 2972.21 lacs) which were redeemable at par in one or more installments on various dates with redemptions commencing from February, 1999 being the earliest redemption and October, 2007 being the last redemption date. All the above Non-Convertible Debentures have become overdue. The above Non Convertible Debentures are secured / to be secured by way of first charge (i) by Legal Mortgage on immovable property situated at Palas, District Roha, in the state of Maharashtra (ii) extension of first charge by equitable mortgage ranking pari-pasu on immovable properties situated at Chhata, District. Mathura in the state of Uttar Pradesh. They are further secured on all the movable asssets of the Company both present and future (excluding current assets and specific assets charged to others) ranking on a pari-pasu first charge basis with others and are also further secured by personal guarantee of a Promoter Director.

(b) Secured Loan from other includes loan including part of interest due on them which are accounted by the company in the past was acquired by the strategic investor from banks and Financial Institution including amount represented by the loan repaid in full and final satisfaction by the company through strategic investors for which charges in favour of original lenders have been satisfied while charges in favour of strategic investor for the amount settled/repaid/satisfied has been done for Rs. 8932 lacs. These loans are secured / to be secured by way of hypothecation of charge on the immovable properties of the company excluding assets specifically charged to others and is further secured by personal guarantee of Promoter Director. The modification of charges in favour of strategic investor on part of the loan acquired/settled/repaid by them shown as unsecured loan is in progress.

c) Loan from financial institution to Rs.2638.99 Lakhs (Rs.2638.99 Lakhs) read with note no.5 (d) hearing below along with loans acquired / settled / repaired by strategic investor are secured / to be secured by way of Equitable Mortgage created on immovable properties situated at chhata, Dist. Mathura in the State of Uttar Pradesh and are further secured by way of hypothecation of movable properties of the company both present and future (other than current assets and specific assets charged to others) ranking on a pari-pasu basis which is further secured by personal guarantee of a Promoter Director. The modification of charges in favor of strategic investor on part of the loan acquired / settle / repaid by them is in process.

(d) Advance given by a State Financial Institutions of Rs. 407.90 lacs(Rs. 407.90 lacs) to Equipment Vendor for the supply of specific Plants at Company''s site and to be leased on commissioning along with arrear of lease rental on other lease assets up to March 2001 provided by Company amounting to Rs.122.69 (Rs. 122.69 lacs) are included in the capital work in progress. The above outstanding is included in the Term Loan in view of earlier CDR proposal and based on in principle confirmation from the said Financial Institution received earlier for converting the above lease finance into term loan as per the then restructuring scheme.

e) Loan from others includes NCD acquired by strategic investor amounting to Rs. 7153.43 (7153.43) on account of NCD redemption. Non-Convertible Debentures of which were redeemable at par in one or more installments on various dates with redemptions commencing from February, 1999 being the earliest redemption and October, 2007 being the las redemption date. All the above Non-Convertible Debentures have become overdue. Modification of charges mentioned in (d) are in favour of strategic investor is in progress.

(f) The Promoter Director of the Company, his family members and investment companies, have also pledged 20.88 lacs (20.88 lacs) shares owned by them to Banks and Financial Institutions as collateral security.

commercial operation of the unit for more than a decade causing non-servicing of its debt to the lenders and its present financial position , company has not provided any interest on the outstanding amount due to banks and financial institution who has not yet settled their dues since September'' 1999, aggregating to Rs. 1364.30 crores (1128.33 crores) as on 31st March 2017 on this basis of original documented rate. Neither interest is provided nor ascertained on the unpaid amounts payable to creditors due to delay in project commissioning and disputes with such parties. The interest at the documented rates not provided by the company amounted to Rs 235.97 crores(Rs. 196.35 crores) for the year ended on 31st March 2017.

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Mar 31, 2015

1 CORPORATE INFORMATION

SVC Superchem Ltd 'the Company' was incorporated in India on 29th August'1989 and is implementing PTA project at its plant site at chhata Barsana Road, Chhata, Mathura(UP). Company's plant under construction has been under shut down condition since September, 2000 due to various reasons beyond its control, after successful trial run. Company has its Registered Office at Mumbai.

2.1 Basis of accounting and preparation financial statements:

I) The financial statements have been prepared under the historical cost convention on an accrual basis to comply in alt material aspects with applicable accounting principles in India including accounting standards notified u/s 133 of the Companies Act. 2013 read with Rule7of Companies (Accounts )Rules,2014.

ii) The Company generally follows mercantile system of accounting and unless otherwise stated recognizes significant item of income and expenditure on accrual basis.

2.2 Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of incomes and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialised.

2.3 Fixed Assets(Tangible):

Fixed assets are stated a1 cost net of cenvat All expenditure pertaining to project under construction and other preoperative expenses and losses including trial run expenses and interest cost (net of income accrued) incurred during the construction period, unless otherwise stated, are capitalized till the commencement of commercial prod uction/ till the date assets are put to use.

2.4 Depreciation and Amortizations:

Depreciation on Fixed Assets except Capital work-in-progress has been provided on Straight Line Method by considering revised useful life as specified in part'c' of Schedule II to the Companies Act 2013.

2.5 Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value an technical evaluation. Company has not made any evaluation about the recoverable value of its assets, hence the impairment loss, if any, are not identified and will be written off in the accounts in the Year in which such losses are identified as impaired, as specified in Accounting Standard (AS-28) on impairment of assets.

2.6 Income-Tax:

No provision for the deferred tax arising out of time difference has been made, as the company has not prepared any Profit & Loss Account as commercial production has not started till the date of Balance Sheet and no trading or service activities were carried out during financial year ended on that date.

2.7 Foreign Exchange Transaction:

I) Transactions in foreign currencies are recorded at the exchange rates prevailing at the time of the transactions.

ii) Foreign Currency transactions remaining unsettled at the end of the year a re re-stated in rupee value at the year end rates

iii) Changes in liability arising out of such re-statement pertaining to acquisition of fixed assets is treated as an adjustment to the carrying cost of such fixed assets.

2.8 Inventories:

Inventories are valued on first-in-first-out basis, at cost.

2.9 CenvatCredit:

Cenvat Credit is accounted by recording the capital assets/raw material, stores and spares acquired during the year net of Cenvat Credit. Cenvat Credit receivable is shown under Other Non Current Assets.

2.10 Excise duty;

Excise duty is accounted on clearance of goods and provision, as applicable, is made in respect of finished goods lying unsold.

2.11 Sales:

Sales are accounted net of excise duty and discounts.

2.12 Retirement Benefits(Employees):

Provision for Gratuity a nd Leave Encashment payable on retirement to the employees are made on the basis of actual period of their services and at prescribed rates irrespective of their illegibility due to short tenure of their services. Company has not made any provisions or Investment as pe r AS-15 due to closure of plant activity since 2000

2.13 Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are to be capitalized as part of the cost of such assets when accounts are settled with lender and interest liability crystaiised subject to note no,15 hereinafter, in terms of Accounting Standard (AS-16) on "Borrowing Cost" issued by the Institute of Chartered Accountants of India, a qualifying asset is one that necessarily takes a substantial period of time to get ready for intended use.

2.14Related Party Transaction:

Related party transaction as identified by th e management with in the meaning of Accounting Standard (AS-18) regarding "Related Party Disclosure" are provided as per Note No.27.

2.15 Lease Transactions:

The lease rent payable during the project construction period, in terms of the lease agreement entered into by the Company and the "Lessor", is charged to "Capital Work in progress" under the head pre-operative expenses.

2.16 Provisions, Contingent Liabilities & Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be a outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes, Contingent Assets are neither recognised nor disclosed in the financial statement.

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Mar 31, 2014

1.1 Basis of accounting and preparation of financial statements :

i) The financial statements have been prepared under the historical cost convention on an accrual basis to comply in all material aspects with applicable accounting principles in India including accounting standards notified u/s 211(3C) of the Companies Act, 1956 read with General Circular 15/2013 dated 13 September 2013, issued by the Ministry of Corporate Affairs, in respect Section 133 of the Companies Act, 2013.

ii) The Company generally follows mercantile system of accounting and unless otherwise stated recognizes significant item of income and expenditure on accrual basis.

2.2 Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of incomes and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialised.

2.3 Fixed Assets (Tangible):

Fixed assets are stated at cost net of cenvat. All expenditure pertaining to project under construction and other preoperative expenses and losses including trial run expenses and interest cost (net of income accrued) incurred during the construction period, unless otherwise stated, are capitalized till the commencement of commercial production / till the date assets are put to use.

2.4 Depreciation and Amortizations:

Depreciation on fixed assets except Capital work-in progress has been provided on Straight Line method, unless otherwise stated, as per the rates and in the manner prescribed under Schedule XIV to the Companies Act,1956.

2.5 Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. Company has not made any evaluation about the recoverable value of its assets, hence the impairment loss, if any, will be written off in the accounts in the Year in which an asset is identified as impaired, as specified in Accounting Standard (AS-28) on impairment of assets.

2.6 Income-Tax :

No provision for the deferred tax arising out of time difference has been made, as the company has not prepared any Profit & Loss Account as commercial production has not started till the date of Balance Sheet and no trading or service activities were carried out during financial year ended on that date.

2.7 Foreign Exchange Transaction:

i) Transactions in foreign currencies are recorded at the exchange rates prevailing at the time of the transactions.

ii) Foreign Currency transactions remaining unsettled at the end of the year are re-stated in rupee value at the year end rates.

iii) Changes in liability arising out of such re-statement pertaining to acquisition of fixed assets is treated as an adjustment to the carrying cost of such fixed assets.

2.8 Inventories:

Inventories are valued on first-in-first-out basis, at cost.

2.9 Cenvat Credit:

Cenvat credit is accounted by recording the capital assets/raw material, stores and spares acquired during the year net of Cenvat Credit. Cenvat Credit receivable is shown under Other Non Current Assets.

2.10 Excise duty:

Excise duty is accounted on clearance of goods and provision, as applicable, is made in respect of finished goods lying unsold.

2.11 Sales:

Sales are accounted net of excise duty and discounts.

2.12 Retirement Benefits(Employees):

Provision for Gratuity and Leave Encashment payable on retirement to the employees are made on the basis of actual period of their services and at prescribed rates irrespective of their illegibility due to short tenure of their services. Company has not made any provisions or Investment as per AS-15 due to closure of plant activity since 2000.

2.13 Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets read with note no.15 hereinafter, unless otherwise stated in terms of Accounting Standard (AS-16) on "Borrowing cost" issued by the Institute of Chartered Accountants of India, a qualifying asset is one that necessarily takes a substantial period of time to get ready for intended use.

2.14 Related Party Transaction:

Related party transaction as identified by the management within the meaning of Accounting Standard (AS-18) regarding "Related Party Disclosure" are provided as per Note No.27.

2.15 Lease Transactions :

The lease rent payable during the project construction period, in terms of the lease agreement entered into by the Company and the "Lessor", is charged to "Capital Work in progress" under the head pre-operative expenses.

2.16 Provisions, Contingent liabilities & Contingent Assets :

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be a outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes, Contingent Assets are neither recognised nor disclosed in the financial statement.

(a) Non-Convertible Debentures of Rs.10185.63 lacs which were redeemable at par in one or more installments on various dates with redemptions commencing from February, 1999 being the earliest redemption and October, 2007 being the last redemption date. All the above Non-Convertible Debentures have become overdue.

(b) The Working Capital loan from banks including amount of Letter of Credits devolved (net of margin money provided against such devolved Letter of Credit) amounting to Rs.7,147.63 lacs (Rs.7,157.65 lacs) are secured / to be secured by way of hypothecation of present and future inventories, books debts and other movable assets of the company and second and subsequent charges on the immovable properties of the Company excluding assets specifically charged to others and is further secured by way of personal guarantee of Promoter Director. Demand Loan against Modvat receivables amounting to Rs. 1,935.72 lacs ( Rs.1,935.72 lacs) are secured / to be secured by way of hypothecation of Modvat receivables of the company and second and subsequent charge on the immovable properties of the company excluding assets specifically charged to others and is further secured by personal guarantee of Promoter Director.

(c) Term Loan from Financial Institutions to the extent of Rs. 12,329.65 lacs (Rs.12,329.65 lacs) are secured / to be secured by way of Equitable Mortgage created on immovable properties situated at Chhata, District. Mathura in the State of Uttar Pradesh and are further secured by way of hypothecation of movable properties of the Company both present and future (other than current assets and specific assets charged to others) ranking on a pari-pasu basis which is further secured by personal guarantee of a Promoter Director and (ii) Rs 2,512.92 lacs (Rs.2,512.92 lacs) from a Financial Institution under its Bill Discounting Scheme are secured by exclusive charge by way of hypothecation of specific items of machinery purchased under this scheme and guarantee of two corporate bodies.

(d) Non-Convertible Debentures amounting to Rs. 10,185.63 lacs (Rs.10,185.63 lacs) are secured / to be secured by way of first charge (i) by Legal Mortgage on immovable property situated at Palas, District Roha, in the state of Maharashtra (ii) extension of first charge by equitable mortgage ranking pari-pasu on immovable properties situated at Chhata, District. Mathura in the state of Uttar Pradesh. They are further secured on all the movable asssets of the Company both present and future (excluding current assets and specific assets charged to others) ranking on a pari-pasu first charge basis with others and are also further secured by personal guarantee of a Promoter Director.


(f) Advance given by a Financial Institutions of Rs. 407.90 lacs (Rs. 407.90 lacs) to Equipment Vendor for the supply of specific Plants at Company''s site and to be leased on commissioning along with arrear of lease rental up to March 2001 provided by Company amounting to Rs.122.69 lacs (Rs. 122.69 lacs) are included in the capital work in progress. The above outstanding is included in the Term Loan in view of earlier CDR proposal and based on inprinciple confirmation from the said Financial Institution received earlier for converting the above lease finance into term loan as per the then restructuring scheme.

(g) In view of disputes with Bankers and Lenders and also due to non-commencement of commercial Production, Company has defaulted on all the above mentioned borrowings which were recalled and become subject matter of recovery at various Debt Recovery Tribunals and no payment has been made against the above over dues. Interest accrued and due company amounting to Rs. 5,971.53 lacs (Rs.5,971.53 lacs) on the above mentioned borrowings provided in the Books of accounts by the Company upto September,1999 together with further interest thereon and not provided by the Company since then where company has defaulted and which remain unpaid is treated as Long Term liabilities pending final settlement with lenders including certain assets reconstruction company and strategic investors who have acquired the part of the debt covered under the above NCD & Term Loans, read with Note No. 15 is secured ranking on a pari-pasu basis with respective Secured loans.

(h) The Promoter Director of the Company, his family members and investment companies, have also pledged Rs. 228.32 lac (228.32 lacs) shares owned by them to Banks and Financial Institutions as collateral security.

14 Most of lenders have approached DRT for recovery. However, certain bankers and Financial Institutions have assigned their claims to certain Asset reconstruction Company, Foreign bank and other Investment Companies including certain strategic investor. Company has not replaced those lenders in its books of accounts due to ongoing disputes. PICUP being one of the Secured Creditors has issued notice for taking possession of assets of company, however company has already got stay order from honourable Allahabad High court against the PICUP notice of possession, till further order.

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Mar 31, 2013

1.1 Basis of accounting and preparation of financial statements :

i) The financial statements, unless otherwise stated, have been prepared under the historical cost convention and are in accordance with the generally accepted accounting principles (GAAP) and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

ii) The financial statement for the year ended 31st March, 2013 has been drawn and presented as per the revised requirement of modified schedule VI of the Companies Act 1956 along with previous year figures.

iii) The Company generally follows mercantile system of accounting and unless otherwise stated recognizes significant item of receipt and expenditure on accrual basis.

1.2 Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of incomes and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialised.

1.3 Fixed Assets(Tangible):

Fixed assets are stated at cost net of cenvat. All expenditure pertaining to project under construction and other preoperative expenses and losses including trial run expenses and interest cost (net of income accrued) incurred during the construction period, unless otherwise stated, are capitalized till the commencement of commercial production / till the date assets are put to use.

1.4 Depreciation and Amortizations:

Depreciation on fixed assets except Capital work-in- progress has been provided on Straight Line method, unless otherwise stated, as per the rates and in the manner prescribed under Schedule XIV to the Companies Act,1956.

1.5 Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. Company has not made any evaluation about the recoverable value of its assets, hence the impairment loss, if any, will be written off in the accounts in the Year in which an asset is identified as impaired, as specified in Accounting Standard (AS-28) on impairment of assets.

1.6 Income-Tax :

No provision for the deferred tax arising out of time difference has been made, as the company has not prepared any Profit & Loss Account as commercial production has not started till the date of Balance Sheet and no trading or service activities were carried out during financial year ended on that date.

1.7 Foreign Exchange Transaction:

i) Transactions in foreign currencies are recorded at the exchange rates prevailing at the time of the transactions.

ii) Foreign Currency transactions remaining unsettled at the end of the year are re-stated in rupee value at the year end rates. iii) Changes in liability arising out of such re-statement pertaining to acquisition of fixed assets is treated as an adjustment to the carrying cost of such fixed assets.

1.8 Inventories:

Inventories are valued on first-in-first-out basis, at cost.

1.9 Cenvat Credit:

Cenvat credit is accounted by recording the capital assets/raw material, stores and spares acquired during the year net of Cenvat Credit. Cenvat Credit receivable is shown under ''Other Non Current Assets''.

1.10 Excise duty:

Excise duty is accounted on clearance of goods and provision, as applicable, is made in respect of finished goods lying unsold.

1.11 Sales:

Sales are accounted net of excise duty and discounts.

1.12 Retirement Benefits(Employees):

Provision for Gratuity and Leave Encashment payable on retirement to the employees are made on the basis of actual period of their services and at prescribed rates irrespective of their eligibility due to short tenure of their services. Company has not made any provisions or Investment as per AS-15 due to closure of plant activity since 2000.

1.13 Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets read with note no.15 hereinafter , unless otherwise stated in terms of Accounting Standard (AS-16) on "Borrowing cost" issued by the Institute of Chartered Accountants of India a qualifying asset is one that necessarily takes a substantial period of time to get ready for intended use.

1.14 Related Party Transaction:

Related party transaction as identified by the management within the meaning of Accounting Standard (AS-18) regarding "Related Party Disclosure" are provided as per Note No.27.

1.15 Lease Transactions :

The lease rent payable during the project construction period, in terms of the lease agreement entered into by the Company and the "Lessor", is charged to "Capital Work in progress" under the head pre-operative expenses.

1.16 Provisions, Contingent liabilities & Contingent Assets :

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be a outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes, Contingent Assets are neither recognised nor disclosed in the financial statement.

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Mar 31, 2012

1.1 Basis of accounting and preparation of financial statements :

i) The financial statements, unless otherwise stated, have been prepared under the historical cost convention and are in accordance with the generally accepted accounting principles (GAAP) and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

ii) During the year Ministry of Corporate Affairs has modified schedule VI of the Companies Act 1956 which has significant impact on the disclosure made in the financial statement for the year ended 31st March’2012, has been drawn and presented as per the revised requirement. The previous year figures has also been accordingly regrouped, reclassified and detailed.

iii) The Company generally follows mercantile system of accounting and unless otherwise stated recognizes significant item of receipt and expenditure on accrual basis.

1.2 Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialised.

1.3 Fixed Assets(Tangible):

Fixed assets are stated at cost net of cenvat. All expenditure pertaining to project under construction and other preoperative expenses and losses including trial run expenses and interest cost (net of income accrued) incurred during the construction period, unless otherwise stated, are capitalized till the commencement of commercial production / till the date assets are put to use.

1.4 Depreciation and Amortizations:

Depreciation on fixed assets except Capital work-in- progress has been provided on Straight Line method, unless otherwise stated, as per the rates and in the manner prescribed under Schedule XIV to the Companies Act,1956.

1.5 Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. Company has not made any evaluation about the recoverable value of its assets, hence the impairment loss, if any, will be written off in the accounts in the Year in which an asset is identified as impaired, as specified in Accounting Standard (AS-28) on impairment of assets.

1.6 Income-Tax :

No provision for the deferred tax arising out of time difference has been made, as the company has not prepared any Profit & Loss Account as commercial production has not started till the date of Balance Sheet and no trading or service activities were carried out during financial period ended on that date.

1.7 Foreign Exchange Transaction:

i) Transactions in foreign currencies are recorded at the exchange rates prevailing at the time of the transactions.

ii) Foreign Currency transactions remaining unsettled at the end of the year are re-stated in rupee value at the year end rates.

iii) Changes in liability arising out of such re-statement pertaining to acquisition of fixed assets is treated as an adjustment to the carrying cost of such fixed assets.

1.8 Inventories:

Inventories are valued on first-in-first-out basis, at cost.

1.9 Cenvat Credit:

Cenvat credit is accounted by recording the capital assets/raw material, stores and spares acquired during the year net of Cenvat Credit. Cenvat Credit receivable is shown under “Loans & Advances”.

1.10 Excise duty:

Excise duty is accounted on clearance of goods and provision, as applicable, is made in respect of finished goods lying unsold.

1.11 Sales:

Sales are accounted net of excise duty and discounts.

1.12 Retirement Benefits(Employees):

Provision for Gratuity and Leave Encashment payable on retirement to the employees are made on the basis of actual period of their services and at prescribed rates irrespective of their illegibility due to short tenure of their services. Company has not made any provisions or Investment as per AS-15 due to closure of plant activity since 2000.

1.13 Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets read with note no.15 hereinafter, unless otherwise stated in terms of Accounting Standard (AS-16) on “Borrowing cost” issued by the Institute of Chartered Accountants of India a qualifying asset is one that necessarily takes a substantial period of time to get ready for intended use.

1.14 Related Party Transaction:

Related party transaction as identified by the management within the meaning of Accounting Standard (AS-18) regarding “Related Party Disclosure” are provided as per Note No.27.

1.15 Lease Transactions :

The lease rent payable during the project construction period, in terms of the lease agreement entered into by the Company and the “Lessor”, is charged to “Capital Work in progress” under the head pre-operative expenses.

1.16 Contingent liabilities (AS-29)

Contingent liabilities are disclosed in the accounts by way of notes.

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Mar 31, 2010

1. Basis of preparation of financial statements:

a) The financial statements, unless otherwise stated, have been prepared under the historical cost convention and are in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

b) The Company generally follows mercantile system of accounting and unless otherwise stated recognizes significant item of income and expenditure on accrual basis.

2. Use of Estimates

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialised.

3. Fixed Assets:

Fixed assets are stated at cost net of cenvat. All expenditure pertaining to project under construction and other preoperative expenses and losses including trial run expenses and interest cost (net of income accrued) incurred during the construction period, unless otherwise stated, are capitalized till the commencement of commercial production / till the date assets are put to use.

4. Depreciation:

Depreciation on fixed assets except Capital work-in- progress has been provided on Straight Line method, unless otherwise stated, as per the rates and in the manner prescribed under Schedule XIV to the Companies Act,1956.

5. Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. Company has not made any evaluation about the recoverable value of its assets, hence the impairment loss, if any, will be written off in the accounts in the Year in which an asset is identified as impaired, as specified in Accounting Standard (AS-28) on impairment of assets.

6. Income-Tax :

No provision for the deferred tax arising out of time difference has »been made, as the company has not prepared any Profit & Loss Account as commercial production has not started till the date of Balance Sheet and no trading or service activities were carried out during financial period ended on that date.

7. Foreign Exchange Transaction:

a) Transactions in foreign currencies are recorded at the exchange rates prevailing at the time of the transactions.

b) Foreign Currency transactions remaining unsettled at the end of the year are re-stated in rupee value at the year end rates.

c) Changes in liability arising out of such re-statement pertaining to acquisition of fixed assets is treated as an adjustment to the carrying cost of such fixed assets.

8. Inventories :

Inventories are valued on first-in-first-out basis, at cost.

9. Cenvat Credit:

Cenvat credit is accounted by recording the capital assets/raw material, stores and spares acquired during the year net of Cenvat Credit. Cenvat Credit receivable is shown under "Loans & Advances".

10. Excise duty:

Excise duty is accounted on clearance of goods and provision, as applicable, is made in respect of finished goods lying unsold.

11. Sales:

Sales are accounted net of excise duty and discounts.

12. Retirement Benefits:

Provision for Gratuity and Leave Encashment payable on retirement to the employees are made on the basis of actual period of their services and at prescribed rates irrespective of their eligibility due to short tenure of their services. Company has not made any provisions or Investment as per AS-15

13. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets, unless otherwise stated in terms of Accounting Standard (AS-16) on "Borrowing cost" issued by the Institute of Chartered Accountants of India. A qualifying asset is one that necessarily takes a substantial period of time to get ready for intended use.

14. Related Party Transaction:

Related party transaction as identified by the management within the meaning of Accounting Standard (AS-18) regarding "Related Party Disclosure" are provided as per NoteNo.B-17.

15. Lease Transactions :

The lease rent payable during the project construction period, in terms of the lease agreement entered into by the Company and the "Lessor", is charged to "Capital Work in progress" under the head.preoperative expenses.

16. Contingent liabilities (AS-29)

Contingent liabilities are disclosed in the accounts by way of notes.