UFM Industries Ltd. कंपली की लेखा नीति

Mar 31, 2025

2. Significant accounting policies

2.1 Basis of preparation of Financial Statement :

The standalone financial statements of the Company have been prepared in accordance with
Indian Accounting Standards (Ind AS) notified under the section 133 of the Companies Act 2013
(to the extent notified) read with Rule 3 of the Companies (Indian Accounting Standards) Rules,
2015 and relevant amendment rules issued thereafter (Indian GAAP).Accordingly, the Company
has prepared these financial statements which comprise the Balance Sheet as at 31 March 2025,
the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in
Equity for the year ended 31 March 2025, and a summary of significant accounting policies and
other explanatory information, on accrual and going concern basis.

The accounting policies adopted in the preparation of the financial statements are consistent
with those followed in the previous year.

2.2 Summary of significant accounting policies :

a. Use of estimates

The preparation of financial statements in conformity with Indian Accounting Standards (Ind
AS) requires management to make judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent
liabilities at the end of the reporting period. Although these estimates are based upon
management''s best knowledge of current events and actions, uncertainty about these
assumptions and estimates could result in the outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities in future periods. Changes in estimates are reflected
inthe financial statements in the period in which changes are made and if material, their effects
are disclosed in the notes to the financial statements.

Critical accounting estimates and judgments:

The areas involving critical estimates and judgments are:

I. Useful lives and residual value of property, plant and equipment and intangible assets:

Useful life and residual value are determined by the management based on a technical
evaluation considering nature of asset, past experience, estimated usage of the asset, vendor''s

advice etc. and same is reviewed periodically, including at each financial year end. Management
reviews the useful economic lives atleast once a year and any changes could affect the
depreciation rates prospectively and hence the asset carrying values. The Company also reviews
its property, plant and equipment and intangible assets, for possible impairment if there are
events or changes in circumstances that indicate that carrying amount of assets may not be
recoverable. In assessing the property, plant and equipment and intangible assets for
impairment, factors leading to significant reduction in profits, the Company''s business plans and
changes in regulatory/ economic environment are taken into consideration.

II. Impairment of investments and property, plant and equipment

The company has reviewed its carrying value of long term investments in equity shares as
disclosed in Note No.6 of standalone financial statements at the end of each reporting period, for
possible impairment, if there are events or changes in circumstances that indicate that carrying
amount of assets may not be recoverable. If the recoverable value, which is based upon economic
circumstances and future plan is less than its carrying amount, the impairment loss is accounted.

III. Claims and Litigations

The Company is the subject of law suits and claims arising in the ordinary course of business
from time to time. The Company reviews any such legal proceedings and claims on an on-going
basis and follow appropriate accounting guidance when making accrual and disclosure
decisions. The company establishes accruals for those contingencies where the incurrence of a
loss is probable and can be reasonably estimated and it discloses the amount accrued and the
amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is
necessary for the Company''s financial statements to not be misleading. To estimate whether a
loss contingency should be accrued by a charge to income, the Company evaluates, among other
factors, the degree of probability of an unfavourable outcome and the ability to make a
reasonable estimate of the amount of the loss. The Company does not record liabilities when the
likelihood that the liability has been incurred is probable, but the amount cannot be reasonably
estimated.

b. Revenue recognition

Revenue from contracts with customer

Revenue from contract with customers is recognised when the Company satisfies performance
obligation by transferring promised goods and services to the customer. Performance obligations
maybe satisfied at a point of time or over a period of time. Performance obligations satisfied over
a period of time are recognised as per the terms of relevant contractual
agreements/arrangements. Performance obligations are said to be satisfied at a point of time
when the customer obtains controls of the asset or when services are rendered.

Revenue is measured based on transaction price, which is the fair value of the consideration
received or receivable, stated net of discounts, returns and value added tax. Transaction price is
recognised based on the price specified in the contract, net of the estimated sales
incentives/discounts. Accumulated experience is used to estimate and provide for the
discounts/ right of return, using the expected value method.

A refund liability is recognised for expected returns in relation to sales made and corresponding
assets are recognised for the products expected to be returned.

The Company recognises as an asset, the incremental costs of obtaining a contract with a
customer, if the Company expects to recover those costs. The said asset is amortised on a
systematic basis consistent with the transfer to goods or services to the customer.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding
and the rate applicable.

Dividends

Revenue is recognized when the right to receive the payment is established by the balance sheet
date.

c. Foreign currencies

Foreign currency transactions

(i) Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign
currency amount the exchange rate between the reporting currency and the foreign currency on
the date of the transaction.

(ii) Conversion

Foreign currency monetary items are reported using the closing rate. Non-monetary items which
are carried in terms of historical cost denominated in a foreign currency are reported using the
exchange rate at the date of the transaction.

(iii) Exchange Differences

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

(iv) Functional and presentation currency :

Items included in the financial statements of the Company are measured using the currency of
the primary economic environment in which the Company operates (i.e. the "functional
currency"). The functional currency of the Company in the Indian rupee. These financial
statements are presented in Indian rupees.

d. Taxes

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current income tax

The income tax expense or credit for the period is the tax payable on the current period''s taxable
income based on the applicable income tax rate for each jurisdiction adjusted by unused tax
losses/credits.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted at the end of reporting period in the countries where the Company operates and
generate taxable income.

Provision is made for uncertain tax positions when it is considered probable that there will be a
future outflow of funds to a tax authority. The provision is calculated using the best estimate
where that outcome is more likely than not and a weighted average probability in other
circumstances. The position is reviewed on an ongoing basis, to ensure appropriate provision is
made for each known tax risk.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the standalone financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax is provided using the liability method on temporary
differences arising between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date in the standalone financial statements.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

• When the deferred tax liability arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss.

• In respect of taxable temporary differences associated with investments in subsidiaries, when
the timing of the reversal of the temporary differences can be controlled and it is probable
that the temporary differences will not reverse in the foreseeable future.

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

• When the deferred tax asset relating to the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction that is not a business combination
and, at the time of the transaction, affects neither the accounting profit nor taxable profit or
loss.

• In respect of deductible temporary differences associated with investments in subsidiaries,
deferred tax assets are recognised only to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and taxable profit will be available against
which the temporary differences can be utilised.

The 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.

Minimum Alternate Tax:

According to section 115JAA of the Income Tax Act, 1961, Minimum Alternative Tax (''MAT'')
paid over and above the normal income tax in a subject year is eligible for carry forward for
fifteen succeeding assessment years for set-off against normal income tax liability. The MAT
credit asset is assessed against the relevant entities'' normal income tax during the specified
period. However, as the Company has availed the exemption under Section 115BAA of the
Income Tax Act, the said provisions are no more applicable for the Company.

Goods and Service Tax - GST

Expenses and assets are recognised net of the amount of Goods and Service Tax paid, except:

(i) When the tax incurred on a purchase of assets or services is not recoverable from the taxation
authority, in which case, the tax paid is recognised as part of the cost of acquisition of the asset
or as part of the expense item, as applicable.

(ii) When receivables and payables are stated with the amount of tax included.

The net amount of tax recoverable from, or payable to, the taxation authority is included as part
of receivables or payables in the balance sheet.

Normally the company does not avail any credit unless the same is utilizable under with output
tax liability. Since the company is engaged majorly in sale of exempted products, it does not
avail any credit and records all revenue and capital expenditure inclusive of GST.

In case if any taxable item is purchased which will be used for sale of taxable goods only, then
the company does avail ITC and the expenses are recorded exclusive of GST.

e. Property, Plant and Equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. Cost includes its purchase price, including import duties
and non- refundable purchase taxes, after deducting trade discounts and rebates. It includes
other 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.

Depreciation on fixed assets is calculated on straight line basis using the rates arrived at based
on the useful lives estimated by the management.

When significant parts of plant and equipment are required to be replaced at intervals, the
Company depreciates them separately based on their specific useful lives. Likewise, when a
major inspection is performed, its cost is recognised in the carrying amount of the plant and
equipment as a replacement if the recognition criteria are satisfied. The present value of the
expected cost for the decommissioning of an asset after its use is included in the cost of the
respective asset if the recognition criteria for a provision are met.

Subsequent expenditures relating to property, plant and equipment is capitalized only when it
is probable that future economic benefits associated with these will flow to the company and the
costs of the item can be measured reliably. All other repair and maintenance costs are recognised
in profit or loss as incurred.

The management has accepted the useful lives of the Property, Plant and Equipment and has
used the rates for providing depreciation on its fixed assets as indicated in Schedule II. The
management believe that the above assessment truly represents the useful life of assets in the
absence of any evidence to the contrary.

An item of property, plant and equipment and 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 derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the
income statement when the asset is derecognised.

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

e. Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation.
Investment properties are measured initially at cost, including transaction costs. Subsequent to
initial recognition, investment properties are measured in accordance with Ind AS requirements
for cost model.

f. Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less accumulated amortization and accumulated
impairment losses, if any, on the same basis as intangible assets that are acquired separately.

Internally-generated intangible assets

Expenditure on research activities is recognised as an expense in the period in which it is
incurred. An internally-generated intangible asset arising from development (or from the
development phase of an internal project) is recognised if, and only if, all of the following have
been demonstrated:

• the technical feasibility of completing the intangible asset so that it will be available for
use or sale;

• the intention to complete the intangible asset and use or sell it;

• the ability to use or sell the intangible asset;

• how the intangible asset will generate probable future economic benefits;

• the availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset; and

• the ability to measure reliably the expenditure attributable to the intangible asset during
its development.

The amount initially recognised for internally generated intangible assets is the sum of the
expenditure incurred from the date when the intangible asset first meets the recognition criteria
listed above. Where no internally- generated intangible asset can be recognised, development
expenditure is recognised in profit or loss in the period in which it is incurred.

Intangible assets are amortized on a straight line basis over the estimated useful economic life. If
the persuasive evidence exists to the affect that useful life of an intangible asset exceeds ten
years, the Company amortizes the intangible asset over the best estimate of its useful life. Such
intangible assets are tested for impairment annually, either individually or at the cash¬
generating unit level. All other intangible assets are assessed for impairment whenever there is
an indication that the intangible asset may be impaired.

Gains or losses arising from de-recognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognized in
the statement of profit and loss when the asset is derecognized.

Subsequent to initial recognition, internally generated intangible assets are reported at cost less
accumulated amortisation and accumulated impairment losses, on the same basis as intangible
assets that are acquired separately.

g. Capital Work in Progress

Cost of property, plant and equipment not ready for use as at the reporting date are disclosed as
capital work-in-progress.

h. Expenditure during Construction Period

Expenditure directly relating to construction activity are capitalized. Other expenditure incurred
during the construction period which are not related to the construction activity nor are
incidental thereto, are charged to the statement of profit and loss.

i. Impairment of tangible and intangible assets

The Company assesses at each reporting date whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required,
the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the
higher of an asset''s or cash-generating unit''s (CGU) net selling price and its value in use. The
recoverable amount is determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other assets or groups of assets. Where
the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. In
determining net selling price, recent market transactions are taken into account, if available. If no
such transactions can be identified, an appropriate valuation model is used.

The Company bases its impairment calculation on detailed budgets and forecast calculations
which are prepared separately for each of the Company cash-generating units to which the
individual assets are allocated. These budgets and forecast calculations are generally covering a

period of five years. For longer periods, a long term growth rate is calculated and applied to
project future cash flows after the fifth year.

After impairment, depreciation is provided on the revised carrying amount of the asset over its
remaining useful life.

An assessment is made at each reporting date as to whether there is any indication that
previously recognized impairment losses may no longer exist or may have decreased. If such
indication exists, the Company estimates the asset''s or cash-generating unit''s recoverable
amount. A previously recognized impairment loss is reversed only if there has been a change in
the assumptions used to determine the asset''s recoverable amount since the last impairment loss
was recognized. The reversal is limited so that the carrying amount of the asset does not exceed
its recoverable amount, nor exceed the carrying amount that would have been determined, net
of depreciation, had no impairment loss been recognized for the asset in prior years. Such
reversal is recognized in the statement of profit and loss.

j. Investment in Subsidiaries

The investment in subsidiary is carried at cost as per Ind AS 27. Investment accounted for at cost
is accounted for in accordance with Ind AS 105 when they are classified as held for sale and
Investment carried at cost is tested for impairment as per Ind AS 36 . An investor, regardless of
the nature of its involvement with an entity (the investee), shall determine whether it is a parent
by assessing whether it controls the investee. An investor controls an investee when it is
exposed, or has rights, to variable returns from its involvement with the investee and has the
ability to affect those returns through its power over the investee. Thus, an investor controls an
investee if and only if the investor has all the following:

(a) power over the investee;

(b) exposure, or rights, to variable returns from its involvement with the investee and

(c) the ability to use its power over the investee to affect the amount of the investor''s returns

On disposal of investment, the difference between its carrying amount and net disposal proceeds
is charged or credited to the statement of profit and loss.

k. Investment in associate

The investment in associate are carried at cost. The Company assesses existence of significant
influence in order to determine if an investee is an associate. Below criteria usually evidence
existence of significant influence:

(a) holding of 20 percent or more of voting power of investee

(b) representation on the board of directors or equivalent governing body of the investee

(c) participation in policy-making processes, including participation in decisions about
dividends or other distributions;

(d) material transactions between the entity and its investee;

(e) inter change of managerial personnel; or

(f) provision of essential technical information.

l. Leases

As a lessee

At inception of a contract, the Company assesses whether a contract is or contains a lease. A
contract is, or contains, a lease if a contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. To assess whether a contract conveys the
right to control the use of an identified asset, the Company assesses whether:

- the contract conveys the right to use an identified asset;

- the Company has the right to obtain substantially all the economic benefits from use of the
asset throughout the period of use; and

- the Company has the right to direct the use of the identified asset.

At the date of commencement of a lease, the Company recognises a right-of-use asset ("ROU
assets") and a corresponding lease liability for all leases, except for leases with a term of
twelvemonths or less (short-term leases) and low value leases. For short-term and low value
leases, the Company recognises the lease payments as an operating expense on a straight-line
basis over the term of the lease. Company has considered all leases where the value of an
underlying asset does not individually exceed Rs.0.05 Crores, or equivalent as a lease of low
value assets.

Certain lease arrangements includes the options to extend or terminate the lease before the end
of the lease term. Lease payments to be made under such reasonably certain extension options
are included in the measurement of ROU assets and lease liabilities.

Lease liability is measured by discounting the lease payments using the interest rate implicit in
the lease or, if not readily determinable, using the incremental borrowing rates in the country of
domicile of the leases. Lease liabilities are re-measured with a corresponding adjustment to the
related right of use asset if the Company changes its assessment of whether it will exercise an
extension or a termination option.

Lease payments are allocated between principal and finance cost. The finance cost is charged to
statement of profit and loss over the lease period so as to produce a constant periodic rate of
interest on the remaining balance of the liability for each period.

The ROU assets are initially recognised at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or prior to the commencement dateof the lease
plus any initial direct costs less any lease incentives and restoration costs.

They are subsequently measured at cost less accumulated depreciation and impairment losses, if
any. ROU assets are depreciated on a straight-line basis over the asset''s useful life or the lease
whichever is shorter.

Impairment of ROU assets is in accordance with the Company''s accounting policy for
impairment of tangible and intangible assets.

As a lessor

Lease income from operating leases where the Company is a lessor is recognised in the

statement of profit and loss on a straight-line basis over the lease term.

m. Inventories

Basis of valuation:

Inventories other than scrap materials are valued at lower of cost and net realizable value, if any.

The comparison of cost and net realizable value is made on an item-by-item basis.

Method of Valuation:

• Cost of raw materials are determined by using FIFO method and comprises all costs of
purchase, duties, taxes (other than those subsequently recoverable from tax authorities) and
all other costs incurred in bringing the inventories to their present location and condition.

• Cost of traded goods are determined by using FIFO method and comprises all costs of
purchase, duties, taxes (other than those subsequently recoverable from tax authorities) and
all other costs incurred in bringing the inventories to their present location and condition.

• Cost of finished goods are determined by using Weighted Average Cost method and
comprises all costs of purchase of raw materials and duties & taxes thereto (other than those
subsequently recoverable from tax authorities), direct overheads and all other costs incurred
in converting the raw materials into finished products.

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

• Stores and spares are carried at cost.

Provision is made for obsolescence and other anticipated losses wherever considered necessary.

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Mar 31, 2013

1.1 Conventions & Basis of Accounting:

The Financial Statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules,2006 (as Amended) and the relevant provisions of the Companies Act 1956. These Financial Statements have been prepared on accrual basis under the historical cost convention. The Accounting policies adopted in preparation of Financial Statements are consistent with those followed in the previous year.

1.2 Use of Estimates:

The presentation of financial statements requires estimates and assumptions to be made that effect the reported amount of Assets & Liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognised in the period in which the results are known/materialized.

1.3 Tangible Assets:

Tangible Assets are stated at acquisition cost, net of accumulated depreciation. Profits arising from the sale of fixed assets which are carried at cost are recognised in the Statement of Profit and Loss. Depreciation:

Depreciation is calculated as per straight line method on single shift basis at rates Specified in Schedule XIV of the Companies Act,1956 and on full year basis if asset is put to use.

1.4 Investments:

Current Investments are carried at lower of Cost or Realisable Value.

Long Term investments are carried at cost. Only in case there is Permanent diminution in value of Long Term Investments it is provided for.

1.5 Inventories:

Inventories are valued at lower of cost or Net Realisable Value. Cost is determined using Weighted Average Method for Raw Materials & Finished Goods and FIFO method for consumable spares and Packing Materials. The cost of finished goods and Work in progress comprises raw materials, direct labour, other direct costs and related production overheads.Net Realisable Value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale.

1.6 Revenue recognition:

Sale of Goods: Sales are recognised when the substantial risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract and are recognised net of sale returns and trade discounts.

Sale of Services: Services are recognised when services are rendered and related costs are incurred.

Other Income:

Interest: Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend : Dividend Income is recognised when the right to receive dividend is established.

Rent: Rent is recognised on time proportionate basis.

1.7 Employee Benefit:

Employee benefits include Provident Fund , Gratuity Fund and Compensated Expenses.

Provident Fund : Contribution towards provident fund for employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis. They are Charged as an expense when they fall due based on amount of contribution required to be made.

Gratuity : The Company provides for gratuity which is in the form of a defined benefit plan on the basis of actuarial valuation done by LIC carried out at each Balance Sheet date.

Compensated Absences : The Company has the policy of non accumulating absences and is accounted for on cash basis.

1.8 Segment Reporting:

There are no ''Geographical Segments'' and ''Business Segments'' reportable under AS- 17.

1.9 Earning Per Share:

Basic Earning Per Share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity share outstanding during the period.

Diluted Earning Per Share: Diluted EPS is computed by dividing the profit/(loss) after tax(including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earning per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

1.10 Taxes on Income:

Current Tax: Provision for Current Tax is made taking into consideration the provisions under the Income Tax Act,1961.

Deferred Tax: Deferred Tax resulting from "Timing Difference" between Taxable and Accounting Income is accounted for using the tax rates and laws that are enacted or substantially enacted as on Balance Sheet date. Deferred Tax is recognised and carried forward only to the extent that there is visual certainty that the asset will be recognised in future.

1.11 Impairment of Assets:

Carrying Amount of asset is reviewed at the Balance Sheet date if there is any indication of impairment based on the internal and external factors. The assets are treated as impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss if any is charged to the Statement of Profit and Loss as and when it arises. Impairment Loss recognised in prior years is reversed when there is an indication that impairment loss recognised for the asset no longer exists or may have decreased.

1.12 Provisions & Contingent Liabilities:

Provisions: A provision is required when the Company has a present obligation as a result of past events 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 the Present Value and are determined based on the best 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 best estimates.

Contingent Liabilities: Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

1.13 Insurance Claims:

Insurance claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent there is no uncertainty in receiving the claims.

1.14 Cash Flow Statement:

Cash Flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating ,investing and financing activities of the Company are segregated based on the available information.

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Mar 31, 2012

1.1 Conventions & Basis of Accounting:

The Financial Statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules,2006 (as Amended) and the relevant provisions of the Companies Act 1956. These Financial Statements have been prepared on accrual basis under the historical cost convention. The Accounting policies adopted in preparation of Financial Statements are consistent with those followed in the previous year.

1.2 Use of Estimates:

The presentation of financial statements requires estimates and assumptions to be made that effect the reported amount of Assets & Liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recohnised in the period in which the results are known/materialized.

1.3 Tangible Assets:

Tangible Assets are stated at acquisition cost, net of accumulated depreciation.

Profits arising from the sale of fixed assets which are carried at cost are recognised in the Statement of Profit and Loss.

Depreciation:

Depreciation is calculated as per straight line method on single shift basis at rates Specified in Schedule XIV of the Companies Act, 1956 and on full year basis if asset is put to use for more than 180 days otherwise at half the rate.

1.4 Investments:

Current Investments are carried at lower of Cost or Realisable Value.

Long Term investments are carried at cost. Only in case there is Permanent diminution in value of Long Term Investments it is provided for.

1.5 Inventories:

Inventories are valued at lower of cost or Net Realisable Value. Cost is determined using Weighted Average Method for Raw Materials & Finished Goods and FIFO method for consumable spares and Packing Materials. The cost of finished goods and Work in progress comprises raw materials, direct labour, other direct costs and related production overheads.Net Realisable Value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale.

1.6 Revenue recognition:

Sale of Goods: Sales are recognised when the substantial risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract and are recognised net of sale returns and trade discounts.

Sale of Services: Services are recognised when services are rendered and related costs are incurred. Other Income:

Interest: Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend: Dividend Income is recognised when the right to receive dividend is established.

Rent: Rent is recognised on time proportionate basis.

1.7 Employee Benefit:

Employee benefits include Provident Fund, Gratuity Fund and Compensated Expenses.

Provident Fund: Contribution towards provident fund for employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company doesnot carry any further obligations, apart from the contributions made on a monthly basis.They are charged as an expense when they fall due based on amount of contribution required to be made.

Gratuity: The Company provides for gratuity which is in the form of a defined benefit plan on the basis of actuarial valuation done by LIC carried out at each Balance Sheet date.

Compensated Abscences: The Company has the policy of non accumulating absences and is accounted for on cash basis.

1.8 Segment Reporting:

There are no ''Geographical Segments'' and ''Business Segments'' reportable under AS-17.

1.9 Earning Per Share:

Basic Earning Per Share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity share outstanding during the period.

Diluted Earning Per Share: Diluted EPS is computed by dividing the profit/(loss) after tax(including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other chaiges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earning per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

1.10 Taxes on Income:

Current Tax: Provision for Current Tax is made taking into consideration the provisions under the Income Tax Act, 1961.

Deferred Tax: Deferred Tax resulting from "Timing Difference" between Taxable and Accounting Income is accounted for using the tax rates and laws that are enacted or substantially enacted as on Balance Sheet date. Deferred Tax is recognised and carried forward only to the extent that there is visual certainity that the asset will be recognised in future.

1.11 Impairment of Assets:

Carrying Amount of asset is reviewed at the Balance Sheet date if there is any indication of impairment based on the internal and external factors.

The assets are treated as impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss if any is charged to the Statement of Profit and Loss as and when it arises. Impairment Loss recognised in prior years is reversed when there is an indication that impairment loss recognised for the asset no longer exists or may have decreased.

1.12 Provisions & Contingent Liabilities:

Provisions: A provision is required when the Company has a present obligation as a result of past events 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 the Present Value and are determined based on the best 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 best estimates.

Contingent Liabilities: Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

1.13 Insurance Claims:

Insurance claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent there is no uncertainity in receiving the claims.

1.14 Cash Flow Statement:

Cash Flows are reported using the indirect method,whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating investing and financing activities of the Company are segregated based on the available information.

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Mar 31, 2010

ACCOUNTING METHODOLOGY

The accounts have been prepared on historical cost convention and on accrual basis of accounting. All expenses and income to the extent considered payable and receivable respectively, unless stated otherwise, are accounted for on accrual basis.

FIXED ASSETS

Fixed Assets are stated at original cost less depreciation thereon. The cost of fixed assets includes acquisition, attributable expenses, and pre-operational expenses including finance charges, wherever applicable.

DEPRECIATION

Depreciation is calculated as per straight line method on single shift basis at rates Specified in Schedule XIV of the Companies Act, 1956 and on full year basis.

INVESTMENTS

Investments are stated at cost of acquisition and other related expenses. Provision is made for any diminution in such value, which is not temporary in nature.

INVENTORIES

Inventories are valued at lower of cost or net realisable value. Cost for manufactured goods/process stock comprises of materials, labour and other appropriate overheads. Cost for stores and packing materials is determined on weighted average basis..

RESEARCH AND DEVELOPMENT

Revenue Expenditure is charged to the Profit & Loss Account in the year in which it is incurred. Capital expenditure on Research and development is considered as addition to fixed assets in the year of incurrence.

FOREIGN CURRENCY TRANSACTIONS

Income / Expenses in foreign currency are accounted at equivalent rupee value incurred.

GRATUITY

Gratuity is accounted for on the basis of payments to LIC as actuarially determined.