ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Axtel Industries Ltd.

Mar 31, 2026

A Basis of preparation

(i) Statement of Compliance

The Company''s financial statements have been prepared in accordance with the provisions of the Companies Act, 2013
and the Indian Accounting Standards ("Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015
and amendments thereto issued by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013. In addition,
the guidance notes / announcements issued by the Institute of Chartered Accountants of India (ICAI) are also applied
except where compliance with other statutory promulgations require a different treatment.

(ii) Basis of Accounting & Measurement

The Company maintains its accounts on accrual basis following historical cost convention, except for certain assets and
liabilities that are measured at fair value in accordance with Ind AS:

1) Certain financial assets and liabilities that are measured at fair value;

2) Assets held for sale - measured at lower of carrying amount or fair value less cost to sell;

3) Defined benefit plans - plan assets measured at fair value;

(iii) Operating Cycle for Current non-current classification

Operating cycle for the business activities of the company covers the duration of the specific project / contract / service
including the defect liability period, wherever applicable and extends up to the realization of receivables (including retention
monies) within the agreed credit period normally applicable to the respective lines of business.

(iv) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest rupees in Lakhs as per
the requirement of Schedule III, unless otherwise stated.

B. Key source of estimation

The preparation of financial statements in conformity with Ind AS requires that the management of the Company makes 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 made by management are explained under respective policies. Revisions to accounting
estimates include useful lives of property, plant and equipment & intangible assets, allowance for expected credit loss, future
obligations in respect of retirement benefit plans, ex-pected cost of completion of contracts, provision for rectification costs, fair
value measurement, etc. Difference, if any, between the actual results and estimates is recognized in the period in which the
results are known.

C. Property, plant and equipment (PPE)

The Company has applied for the one-time transition exemption of considering the carrying cost on the transition date i.e. April
1,2016 as the deemed cost under IND AS. Hence, regarded thereafter as historical cost.

Freehold land is carried at cost. All other items of PPE are recognised when it is probable that future economic benefits associated
with the item will flow to the Company and the cost of the item can be measured reliably. PPE is stated at original cost net of tax/
duty credits availed, if any, less accumulated depreciation and cumulative impairment, if any.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably.

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

All other items of repairs and maintenance are charged to Statement of Profit and Loss during the report-ing period in which they
are incurred.

PPE not ready for the intended use on the date of the Balance Sheet are disclosed as "capital work-in-progress".

Depreciation:

Depreciation is provided on Property, Plant and Equipment using the Written Down Value (WDV) method at the rates prescribed
in Schedule II to the Companies Act, 2013.

No depreciation is provided on freehold land and capital work-in-progress.

Intangible Assets:

Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow
to the Company and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty
credits availed, if any, less accumulated amortisation and cumulative impairment. All directly attributable costs and other
administrative and other general overhead expenses that are specifically attributable to acquisition of intangible assets are
allocated and capitalised as a part of the cost of the intangible assets.

Intangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as "intangible assets under
development".

Intangible assets are amortised using Written down value method at the rates prescribed in Schedule II to the Companies Act,
2013.

Asset Impairment:

As at the end of each financial year, the carrying amounts of PPE and intangible assets are reviewed to determine whether there
is any indication that those assets have suffered an impairment loss. If such in-dication exists, PPE and intangible assets are
tested for impairment so as to determine the impairment loss, if any.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount,
in respect of an individual asset, is determined, as the higher of the fair value less costs of disposal and the value-in-use.

If recoverable amount of an asset is estimated to be less than it carrying amount, such deficit is recognised immediately in the
Statement of Profit and Loss as impairment loss and the carrying amount of the asset is reduced to its recoverable amount.

D. Investments and other financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

1) those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement

of Profit and Loss), and

2) those measured at amortized cost.

The classification depends on the Company''s business model for managing the financial assets and the contractual terms
of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial assets carried
at fair value through the Profit & Loss are expensed in the Statement of Profit and Loss.

E Valuation of Inventories

Inventories are valued as under:

The cost of the Manufacturing Work-in-progress and finished goods Inventories has been computed to include all costs of
purchase, cost of conversion and other related costs incurred in bringing the inventories to their respective present location and
condition. Due allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past
experience of the Company.

F. Revenue recognition

The Company derives revenue primarily from sale of Machinery i.e. manufactured goods and the related services.

Revenue is measured at the value of the consideration received or receivable. Amounts disclosed as revenue are net of returns,
trade allowances, rebates, discounts, loyalty discount, value added taxes/Goods and Service Tax (GST). Since, the GST is
collected by the seller on behalf of the Government, accordingly it is excluded from revenue.

The Company recognizes revenue when the amount of revenue can be reliably measured upon performance of obligation(s), it
is probable that future economic benefits will flow to the Company and specific criteria have been met for each of the Company''s
activities as described below.

Sale of goods

Revenue from Sales is recognized when substantial risk and rewards of ownership are transferred to customer. In case of
domestic customer, generally sales take place when goods are dispatched or delivery is handed over to transporter. And in case
of export customers, generally sales take place when goods are shipped on-board based on bill of lading.

The Performance Obligation in our contract are fulfilled at the time of dispatch, delivery or upon formal customer acceptance
depending on customer terms
Sales Return

The Company recognizes provision for sales return, based on the historical results, measured on net basis of the margin of the
sale.

Revenue from services

Revenue from rendering of services is recognised over time as the customer receives the benefit of the Company''s performance
and the Company has an enforceable right to payment for services transferred.

Other operating revenue

Other operational revenue represents income earned from the activities incidental to the business and is recognised when the
performance obligation is satisfied and right to receive the income is established as per the terms of the contract.

Government grant receivable in the form of duty credit scrips is recognised as other income in the Statement of Profit and Loss
in the period in which the export is done or the application is made to the government authorities and to the extent there is no
uncertainty towards its receipt. However, export incentive accruing under MEIS/RODTep Scheme are accounted when licenses
are generated or sold.

G. Foreign Exchange Transaction:

i) The functional currency and presentation currency of the Company is Indian Rupee.

ii) Transactions in currencies other than the Company''s functional currency are recorded on initial recognition using actual
exchange rate or a rate that approximates with it at the transaction date. At each Balance Sheet date, foreign currency
monetary items are reported at the closing spot rate. Non-monetary items that are measured in terms of historical cost in
foreign currency are not translated.

Exchange differences that arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet
date at the closing spot rate are recognised in the Statement of Profit and Loss in the period in which they arise.

iii) exchange rate as of the date on which the non-monetary asset or non-monetary liability is recognised on payment or
receipt of advance consideration is used for initial recognition of related asset, expense or income

H. Cash & Bank Balances

Cash and bank balances include fixed deposits, margin money deposits, earmarked balances with banks and other bank balances
which have restrictions on repatriation.

Short-term and liquid investments, being subject to more than insignificant risk of change in value, are not included as part of
Cash and cash equivalents.

I. Borrowing Costs:

The borrowings are initially recognized at net of transaction costs incurred and measured at amortised cost. Any difference
between the proceeds (net of transaction costs) and the redemption amount is recognized in the Statement of Profit and Loss
over the period of the borrowings using the effective interest method

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised/inventoried
as part of cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that
necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognised
in profit or loss in the period in which they are incurred.

J. Taxes on Income :

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with
the provisions of the Income Tax Act,1961 and using estimates and judgments based on the expected outcome of assessments/
appeals and the relevant rulings in the areas of allow-ances and disallowances.

The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and Loss, except to
the extent that it relates to items recognized in the comprehensive income or in equity. In which case, the tax is also recognized
in other comprehensive income or equity.

Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities,
based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Company''s
financial statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates as
per laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax liabilities are generally recognised for all taxable temporary differences except where the Company is able to
control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable
future.

Deferred tax assets are generally recognised for all taxable temporary differences to the extent that is probable that taxable
profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred
tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be recovered.

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Mar 31, 2025

(I) SIGNIFICANT ACCOUNTING POLICIES
A Basis of preparation

(i) Compliance with Ind AS

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred
to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (‘Act’)
read with of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the
Act.

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

1) Certain financial assets and liabilities that are measured at fair value;

2) assets held for sale - measured at lower of carrying amount or fair value less cost to sell;

3) defined benefit plans - plan assets measured at fair value;

(iii) Current non-current classification

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle
(Twelve months) and other criteria set out in the Schedule III to the Act.

(iv) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest rupees in Lacs as per
the requirement of Schedule III, unless otherwise stated

B Use of estimates and judgments

The preparation 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/materialized.

C Property, plant and equipment

The Company has applied for the one time transition exemption of considering the carrying cost on the transition date i.e. April
1,2016 as the deemed cost under IND AS. Hence, regarded thereafter as historical cost.

Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost less depreciation and
impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it
is possible that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced.
All other items of repairs and maintenance are charged to Statement of Profit and Loss during the reporting period in which they
are incurred

Depreciation:

- Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. The
Company has adopted Written Down Value method rates prescribed in Schedule II of the Act for providing depreciation.

Intangible Assets:

Intangible Assets representing

- Computer Software are amortised using Written down value method as per rates and life cycle of Computer stated as per
schedule II of the Act

Asset Impairment:

The Company reviews the carrying values of tangible assets for any possible impairment at each balance sheet date. Impairment
loss, if any, is recognized in the year in which impairment takes place.

D Investments and other financial assets
(i) Classification

The Company classifies its financial assets in the following measurement categories:

1) those to be measured subsequently at fair value (either through other comprehensive income, or through the
Statement of Profit and Loss), and

2) those measured at amortized cost.

The classification depends on the Company’s business model for managing the financial assets and the contractual
terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial assets carried
at fair value through the Profit & Loss are expensed in the Statement of Profit and Loss.

E Valuation of Inventories

Inventories are valued as under:

The cost of the Manufacturing work-in-progress and finished goods inventories has been computed to include all costs of
purchase, cost of conversion and other related costs incurred in bringing the inventories to their present location and condition.
Due allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past experience of
the Company.

F Revenue recognition

The Company derives revenue primarily from sale of Machinery i.e. manufactured goods and the related services.

Revenue is measured at the value of the consideration received or receivable. Amounts disclosed as revenue are net of
returns, trade allowances, rebates, discounts, loyalty discount, value added taxes/Goods and Service Tax (GST). Since, the
GST is collected by the seller on behalf of the Government, accordingly it is excluded from revenue.

The Company recognizes revenue when the amount of revenue can be reliably measured upon performance of obligation(s),
it is probable that future economic benefits will flow to the Company and specific criteria have been met for each of the
Company’s activities as described below.

Sale of goods

Revenue from Sales are recognized when substantial risk and rewards of ownership are transferred to customer, in case of
domestic customer, generally sales take place when goods are dispatched or delivery is handed over to transporter.

In case of export customers, generally sales take place when goods are shipped on-board based on bill of lading.

The Performance Obligation in our contract are fulfilled at the time of dispatch, delivery or upon formal customer acceptance
depending on customer terms

Sales Return-

The Company recognizes provision for sales return, based on the historical results, measured on net basis of the margin of the
sale.

Revenue from services

Revenue from services is recognized in the accounting period in which the services are rendered.

Other operating revenue - Export incentives

Rent and other incomes are recognised on accrual basis and Export Incentives are generally accounted in the year of export.
However, Export incentive accruing under MEIS Scheme are accounted when sold.

G Foreign Exchange Transaction:

i) T ransactions in foreign currencies are accounted for at prevailing exchange rates, Gains and losses arising out of subsequent
fluctuations are accounted for on actual payment / realizations in the statement of profit and loss. The Current Assets and
Current Liabilities related to foreign currency transactions, other than those covered by forward contracts, remaining
unsettled at the end of the year are adjusted at the rates prevailing at the year end.

ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates. Any income or expense
on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and loss.

H Borrowings

The borrowings are initially recognized at net of transaction costs incurred and measured at amortised cost. Any difference

between the proceeds (net of transaction costs) and the redemption amount is recognized in the Statement of Profit and Loss
over the period of the borrowings using the effective interest method.

I 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. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.

J Tax Expense:

The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and Loss, except
to the extent that it relates to items recognized in the comprehensive income or in equity. In which case, the tax is also
recognized in other comprehensive income or equity.

- Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.

- Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of
each reporting period.

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Mar 31, 2024

(I) SIGNIFICANT ACCOUNTING POLICIES A Basis of preparation

(i) Compliance with Ind AS

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (''Act'') read with of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

1) Certain financial assets and liabilities that are measured at fair value;

2) assets held for sale - measured at lower of carrying amount or fair value less cost to sell;

3) defined benefit plans - plan assets measured at fair value;

(iii) Current non-current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (Twelve months) and other criteria set out in the Schedule III to the Act.

(iv) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest rupees in Lacs as per the requirement of Schedule III, unless otherwise stated

B Use of estimates and judgments

The preparation 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/materialized.

C Property, plant and equipment

The Company has applied for the one time transition exemption of considering the carrying cost on the transition date i.e. April 1, 201 6 as the deemed cost under IND AS. Hence, regarded thereafter as historical cost.

Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is possible that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other items of repairs and maintenance are charged to Statement of Profit and Loss during the reporting period in which they are incurred

Depreciation:

- Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 201 3. The Company has adopted Written Down Value method rates prescribed in Schedule II of the Act for providing depreciation.

Intangible Assets:

Intangible Assets representing

- Computer Software are amortised using Written down value method as per rates and life cycle of Computer stated as per schedule II of the Act

Asset Impairment:

The Company reviews the carrying values of tangible assets for any possible impairment at each balance sheet date. Impairment loss, if any, is recognized in the year in which impairment takes place.

D Investments and other financial assets (i) Classification

The Company classifies its financial assets in the following measurement categories:

1) those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

2) those measured at amortized cost.

The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial assets carried at fair value through the Profit & Loss are expensed in the Statement of Profit and Loss.

E Valuation of Inventories

Inventories are valued at lower of the cost and net realizable value. The cost is arrived at moving weighted average method, and includes related overhead. Due allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past experience of the Company.

Cost of WIP, inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes incurred in bringing them to their respective present location and condition.

F Revenue recognition

The Company derives revenue primarily from sale of Machinery i.e. manufactured goods and the related services.

Revenue is measured at the value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates, discounts, loyalty discount, value added taxes/Goods and Service Tax (GST). Since, the GST is collected by the seller on behalf of the Government, accordingly it is excluded from revenue.

The Company recognizes revenue when the amount of revenue can be reliably measured upon performance of obligation(s), it is probable that future economic benefits will flow to the Company and specific criteria have been met for each of the Company''s activities as described below.

Sale of goods

Revenue from Sales are recognized when substantial risk and rewards of ownership are transferred to customer, in case of domestic customer, generally sales take place when goods are dispatched or delivery is handed over to transporter.

In case of export customers, generally sales take place when goods are shipped on-board based on bill of lading.

The Performance Obligation in our contract are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms

Sales Return-

The Company recognizes provision for sales return, based on the historical results, measured on net basis of the margin of the sale.

Revenue from services

Revenue from services is recognized in the accounting period in which the services are rendered.

Other operating revenue - Export incentives

Rent and other incomes are recognised on accrual basis and Export Incentives are generally accounted in the year of export. However, Export incentive accruing under MEIS Scheme are accounted when sold.

G Foreign Exchange Transaction:

i) Transactions in foreign currencies are accounted for at prevailing exchange rates, Gains and losses arising out of subsequent fluctuations are accounted for on actual payment / realizations in the statement of profit and loss. The Current Assets and Current Liabilities related to foreign currency transactions, other than those covered by forward contracts, remaining unsettled at the end of the year are adjusted at the rates prevailing at the year end.

ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and loss.

H Borrowings

The borrowings are initially recognized at net of transaction costs incurred and measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in the Statement of Profit and Loss over the period of the borrowings using the effective interest method.

I 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. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other

borrowing costs are charged to revenue.

J Tax Expense:

The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and Loss, except to the extent that it relates to items recognized in the comprehensive income or in equity. In which case, the tax is also recognized in other comprehensive income or equity.

- Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.

- Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of each reporting period.

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Mar 31, 2023

(I) SIGNIFICANT ACCOUNTING POLICIES A Basis of preparation

(i) Compliance with Ind AS

These financial statements have been prepared in accordance with the Indian Accounting Stand-ards (hereinafter referred to as the ''Ind AS'') as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (''Act'') read with of the Companies (Indian Account-ing Standards) Rules, 2015 as amended and other relevant provisions of the Act.

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

1) Certain financial assets and liabilities that are measured at fair value;

2) assets held for sale - measured at lower of carrying amount or fair value less cost to sell;

3) defined benefit plans - plan assets measured at fair value;

(iii) Current non-current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (Twelve months) and other criteria set out in the Schedule III to the Act.

(iv) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest rupees in Lacs as per the requirement of Schedule III, unless otherwise stated

B Use of estimates and judgments

The preparation 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/materialized.

C Property, plant and equipment

The Company has applied for the one time transition exemption of considering the carrying cost on the transition date i.e. April 1, 2016 as the deemed cost under IND AS. Hence, regarded thereafter as his-torical cost.

Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is possible that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other items of repairs and maintenance are charged to Statement of Profit and Loss during the reporting period in which they are incurred

Depreciation:

- Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Compa-nies Act, 2013. The Company has adopted Written Down Value method rates prescribed in Schedule II of the Act for providing depreciation.

Intangible Assets:

Intangible Assets representing

- Computer Software are amortised using Written down value method as per rates and life cycle of Computer stated as per schedule II of the Act

Asset Impairment:

The Company reviews the carrying values of tangible assets for any possible impairment at each bal-ance sheet date. Impairment loss, if any, is recognized in the year in which impairment takes place.

D Investments and other financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

1) those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

2) those measured at amortized cost.

The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial assets carried at fair value through the Profit & Loss are expensed in the Statement of Profit and Loss.

E Valuation of Inventories

Inventories are valued at lower of the cost and net realizable value. The cost is arrived at moving weighted average method, and includes related overhead. Due allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past experience of the Company.

Cost of WIP, inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes incurred in bringing them to their respective present location and condition.

F Revenue recognition

The Company derives revenue primarily from sale of Machinery i.e. manufactured goods and the related services.

Revenue is measured at the value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates, discounts, loyalty discount, value added tax-es/Goods and Service Tax (GST). Since, the GST is collected by the seller on behalf of the Government, accordingly it is excluded from revenue.

The Company recognizes revenue when the amount of revenue can be reliably measured upon per-formance of obligation(s), it is probable that future economic benefits will flow to the Company and specific criteria have been met for each of the Company''s activities as described below.

Sale of goods

Revenue from Sales are recognized when substantial risk and rewards of ownership are transferred to customer, in case of domestic customer, generally sales take place when goods are dispatched or de-livery is handed over to transporter.

In case of export customers, generally sales take place when goods are shipped on-board based on bill of lading.

The Performance Obligation in our contract are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms

Sales Return-

The Company recognizes provision for sales return, based on the historical results, measured on net ba-sis of the margin of the sale.

Revenue from services

Revenue from services is recognized in the accounting period in which the services are rendered.

Other operating revenue - Export incentives

Rent and other incomes are recognised on accrual basis and Export Incentives are generally accounted in the year of export. However, Export incentive accruing under MEIS Scheme are accounted when sold.

G Foreign Exchange Transaction:

i) Transactions in foreign currencies are accounted for at prevailing exchange rates, Gains and losses arising out of subsequent fluctuations are accounted for on actual payment / realizations in the statement of profit and loss. The Current Assets and Current Liabilities related to foreign currency transactions, other than those covered by forward contracts, remaining unsettled at the end of the year are adjusted at the rates prevailing at the year end.

ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and loss.

H Borrowings

The borrowings are initially recognized at net of transaction costs incurred and measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in the Statement

of Profit and Loss over the period of the borrowings using the effective interest method.

I Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capital-ized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

J Tax Expense:

The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and Loss, except to the extent that it relates to items recognized in the comprehensive income or in equity. In which case, the tax is also recognized in other comprehensive income or equity.

- Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively en-acted at the Balance sheet date.

- Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been en-acted or substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of each reporting period.

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Mar 31, 2018

A Basis of preparation

(i) Compliance with Ind AS

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (‘Act’) read with of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.

These financial statements for the year ended 31st March, 2018 are the first financials with comparatives, prepared under Ind AS. For all previous periods including the year ended 31st March, 2017, the Company had prepared its financial statements in accordance with the accounting standards notified under companies (Accounting Standard) Rule, 2006 (as amended) and other relevant provisions of the Act (hereinafter referred to as ‘Previous GAAP’) used for its statutory reporting requirement in India.

The accounting policies are applied consistently to all the period presented in the financial statements, including The preparation of the opening Ind AS Balance Sheet as at 1st April, 2016 being the date of transition to Ind AS.

(ii) Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:

1) Certain financial assets and liabilities that are measured at fair value;

2) assets held for sale - measured at lower of carrying amount or fair value less cost to sell;

3) defined benefit plans - plan assets measured at fair value;

(iii) Current non-current classification

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle (Twelve months) and other criteria set out in the Schedule III to the Act.

(iv) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off rupees in Lacs.

B Use of estimates and judgments

The preparation 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/materialized.

C Property, plant and equipment

The Company has applied for the one time transition exemption of considering the carrying cost on the transition date i.e. April 1, 2016 as the deemed cost under IND AS. Hence, regarded thereafter as historical cost.

Ind AS 101 Exemption: The Company has availed the exemption available under Ind AS 101, whereas the carrying value of property plant and equipment has been carried forward at the amount as determined under the previous GAAP netting off IND AS adjustment such as government grants. Considering the FAQ issued by the ICAI, regarding application of deemed cost, the Company has disclosed the cost as at 1 April, 2016 net of accumulated depreciation.

Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation:

Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. The Company has adopted Written Down Value method rates prescribed in Schedule II of the Act for providing depreciation.

Intangible Assets:

Intangible Assets representing

Computer Software are amortised using Written down value method as per rates and life cycle of Computer stated as per schedule II of the Act

Asset Impairment:

The Company reviews the carrying values of tangible assets for any possible impairment at each balance sheet date. Impairment loss, if any, is recognized in the year in which impairment takes place.

D Investments and other financial assets

(i) Classification

The Company classifies its financial assets in the following measurement categories:

1) those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

2) those measured at amortized cost.

The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial assets carried at fair value through the Profit & Loss are expensed in the Statement of Profit and Loss.

E Valuation of Inventories

Inventories are valued at lower of the cost and net realizable value. The cost is arrived at moving weighted average method, where till 31st March, 2016 FIFO method was followed and includes related overhead. Due allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past experience of the Company. Change in arriving at cost has no material effect on valuation of this stock.

Cost of WIP, inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes incurred in bringing them to their respective present location and condition.

F Revenue recognition

Revenue is measured at the value of the consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty till 30.06.2017 and net of returns, trade allowances, rebates, discounts, loyalty discount, value added taxes/GST.

The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company and specific criteria have been met for each of the Company’s activities as described below.

Sale of goods

Sales are recognized when substantial risk and rewards of ownership are transferred to customer, in case of domestic customer, generally sales take place when goods are dispatched or delivery is handed over to transporter, in case of export customers, generally sales take place when goods are shipped on-board based on bill of lading.

Sales Return-

The Company recognizes provision for sales return, based on the historical results, measured on net basis of the margin of the sale.

Revenue from services

Revenue from services is recognized in the accounting period in which the services are rendered.

Other operating revenue — Export incentives

Rent and other incomes are recognised on accrual basis and Export Incentives are accounted in the year of export.

G Foreign Exchange Transaction:

i) Transactions in foreign currencies are accounted for at prevailing exchange rates, Gains and losses arising out of subsequent fluctuations are accounted for on actual payment / realizations in the statement of profit and loss. The Current Assets and Current Liabilities related to foreign currency transactions, other than those covered by forward contracts, remaining unsettled at the end of the year are adjusted at the rates prevailing at the year end.

ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and loss under OCI

H Borrowings

Borrowings are initially recognized at net of transaction costs incurred and measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in the Statement of Profit and Loss over the period of the borrowings using the effective interest method.

I 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. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

J Tax Expense:

The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and Loss, except to the extent that it relates to items recognized in the comprehensive income or in equity. In which case, the tax is also recognized in other comprehensive income or equity.

Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.

Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

K Provision, Contingent Liabilities and Contingent Assets:

A Provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

L Gratuity and other post-employment benefits

Retirement benefit in the form of provident fund and pension fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund and pension fund maintained by Government’s Employee Provident Fund Organisation. The Company recognizes contribution payable to the provident fund and pension fund scheme as an expense, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.

Gratuity and Leave Encashment which are defined benefits are accrued based on actuarial valuation as at the Balance Sheet date. The Company operates a defined benefit gratuity plan in India, which requires contributions to be made to a separately administered fund. The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognized in profit or loss on the earlier of:

- The date of the plan amendment or curtailment, and

- The date that the Company recognizes related restructuring costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.

The Company recognizes the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:

- Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and

- Net interest expense or income.

M Earnings Per Share

Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company

- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

Diluted earnings per Share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

N Recent Accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) has notified Companies (Indian Accounting Standards) Amendment Rules, 2018 containing the following new amendments to Ind AS which the Company has not applied as they are effective for Annual Periods beginning on or after April 1st 2018

Ind AS 115 - Revenue from contracts with customers.

Ind AS 21 - The Effect of Changes in Foreign Exchange Rates

Ind AS 115 — “Revenue from Contracts with customers”

Ind AS 115 establishes a single model for entities to use in accounting for revenue arising from contracts with customers. Ind AS 115 will supersede the current revenue recognition standard, Ind AS 18 “Revenue” and Ind AS 11 “Construction Contracts” when it becomes effective.

The core principle of Ind AS 115 is that, an entity should recognize revenue to depict the transfer of promised goods and services to customers in an account that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. The new standard also requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue.

The Company is in the process of evaluating the impact of adoption of Ind AS 115 on its financial statements.

Ind AS 21 - The Effect of Changes in Foreign Exchange Rates

The amendment clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

The Company is in the process of evaluating the impact of adoption of amendment to Ind AS 21 on its financial statements.

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Mar 31, 2016

a) Accounting Convention:

The financial statements are prepared under historical cost convention on an accrual basis, in accordance with the applicable accounting standards.

b) Fixed Assets:

Fixed Assets are stated at cost inclusive of freight, duties, taxes and installation expenses.

c) Depreciation:

Depreciation has been provided on all assets except land on written down value method as per the rates derived from the expected life of assets as stated in Schedule II of the Companies Act, 2013, pro-rata depreciation is calculated for all additions made during the year.

Effective from 01.04.2015 the company depreciates its fixed assets over the useful life in the manner prescribed in Schedule II of the Act as against earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act 1956. Accordingly unamortized value is being depreciated/amortized over the revised/remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 01.04.2015 have been adjusted net of tax in the opening balance of Profit & Loss Account amounting to Rs 28,87,596/d) Valuation of Stock:

Valued at lower of the cost or net realizable value.

e) Recognition of Income and Expenditure:

Income and Expenditure are generally recognized on accrual basis.

f) Excise Duty:

The Company has followed a system whereby the Excise Duty is included in the Sales Value and the Value of Closing Stock as required by the Guidance Note of the Institute of Chartered Accountants of India. The actual excise duty paid is shown as expenditure as deduction from Sales and the excise duty if it is unpaid and included in finished goods is shown as liability payable under the head other current liabilities.

g) Foreign Exchange Transaction:

The Company has followed a system whereby the transactions involving Foreign Exchange on revenue account i.e. for foreign travel, import of materials and for export of goods, are accounted at the rate of exchange, which is prevailing on the date of transaction. Gains and/or losses arising out of fluctuations in the exchange rates are accounted for on actual realization into Indian Rupees.

h) Gratuity and Leave Encashment:

The Company has provided for Gratuity, Leave Encashment and other retirement benefits, on accrual basis, as per the requirements of AS-15 of the Institute of Chartered Accountants of India The Company has subscribed to an Insurance policy of L.I.C. of India under their approved scheme in respect of Gratuity and Leave Encashment liability and the premiums paid are charged to expenses as per payment made to L.I.C. of India

i) Miscellaneous Expenditure:

Share Issue Expenses along with the preliminary expenses are being amortized by the Company in ten equal installments. j) Taxes on Income:

Tax expense comprises of current, deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantially enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Unrecognized deferred tax assets of earlier years are reassessed and recognized to the extent it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

k) Earnings Per Share

In determining earnings per share, the Company considers the net profit after tax and includes the post-tax effect of any extra ordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

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Mar 31, 2014

A) Accounting Convention:

The financial statements are prepared under historical cost convention on an accrual basis, in accordance with the app cable accounting standards,

b) Fixed Assets:

Fixed Assets are slated at cost inclusive of freight, duties, taxes and installation expenses.

c) Depreciation:

Depreciation has been provided on ail assets except Land on written down value method at the rates specified In Schedule XIV inserted by the Companies (Amendment) Act,1988. pro-rata depreciation Is calculated for all additions made during the year.

d) Valuation of Stock:

Valued at lower of the cost or net reafisab e value.

e) R ecognrtion of Income and Expen diture:

Income and Expenditure are generally recognized on accrual basis.

f) Excise Duty:

The Company nas followed a system whereby the Excise Duty is included in the Sales Value and the Value of Closing Stock as required by the Guidance Note of the Institute of Chartered Accountants of India, The actual excise duty paid is shown as expenditure as deduction from Sales and the excise duty if il is unpaid and included in finished goods is shown as liability payable under the head other current liabilities.

g) Foreign Exchange Transaction:

The Company has followed a system whereby the transactions involving Foreign Exchange on revenue account i.e. for foreign travel, import of materials and for export ol goods, are accounted at the rate of exchange, which is prevailing on the date of transaction. Gains and/or losses arising out of fluctuations in the exchange rates are accounted for on actual realisation into Indian Rupees.

h) Gratuity and Leave Encashment:

The Company has provided lor Gratuity, Leave Encashment and other retirement benefits, on accrual basis, as par the requirements of AS-15 of the Institute of Chartered Accountants of India The Company has subscribed to an Insurance policy of L I C. of India under Iheir approved scheme in respect of Gratuity and Leave Encashment liability and the premiums paid are charged to expenses as per payment made to L.I.C. of India

I) Miscellaneous Expenditure:

Share issue Expenses along with the preliminary expenses are being amortized by the Company in ten equal

installments,

J) Technical Knowhow fees:

Technical Knowhow -fees are being amortized by the company in five equal Installments.

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Mar 31, 2013

A) Accounting Convention:

The financial statements are prepared under historical cost convention on an accrual basis, in accordance with the applicable accounting standards.

b) Fixed Assets:

Fixed Assets are stated at cost inclusive of freight, duties, taxes and installation expenses.

c) Depreciation:

Depreciation has been provided on all assets except Land on written down value method at the rates specified in Schedule XIV inserted by the Companies (Amendment) Act,1988, pro-rata depreciation is calculated for all additions made during the year.

d) Valuation of Stock :

Valued at lower of the cost or net realisable value.

e) Recognition of Income and Expenditure :

Income and Expenditure are generally recognised on accrual basis.

f) Excise Duty :

The Company has followed a system whereby the Excise Duty is included in the Sales Value and the Value of Closing Stock as required by the Guidance Note of the Institute of Chartered Accountants of India. The actual excise duty paid is shown as expenditure as deduction from Sales and the excise duty if it is unpaid and included in finished goods is shown as liability payable under the head other current liabilities.

g) Foreign Exchange Transaction :

The Company has followed a system whereby the transactions involving Foreign Exchange on revenue account i.e. for foreign travel, import of materials and for export of goods, are ac- counted at the rate of exchange, which is prevailing on the date of transaction. Gains and/or losses arising out of fluctuations in the exchange rates are accounted for on actual realisation into Indian Rupees.

h) Gratuity and Leave Encashment :

The Company has provided for Gratuity, Leave Encashment and other retirement benefits, on accrual basis, as per the requirements of AS-15 of the Institute of Chartered Accountants of India The Company has subscribed to an Insurance policy of L.I.C. of India under their approved scheme in respect of Gratuity and Leave Encashment liability and the premiums paid are charged to expenses as per payment made to L.I.C. of India

i) Miscellaneous Expenditure :

Share Issue Expenses along with the preliminary expenses are being amortised by the Company in ten equal installments..

j) Technical Knowhow fees :

Technical Knowhow fees are being amortised by the company in five equal installments.

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Mar 31, 2012

A) Accounting Convention:

The financial statements are prepared under historical cost convention on an accrual basis, in accordance with the applicable accounting standards.

b) Fixed Assets:

Fixed Assets are stated at cost inclusive of freight, duties, taxes and installation expenses.

c) Depreciation:

Depreciation has been provided on all assets except Land on written down value method at the rates specified in Schedule XIV inserted by the Companies (Amendment) Act, 1988, pro-rata depreciation is calculated for all additions made during the year.

d) Valuation of Stock :

Valued at lower of the cost or net realizable value.

e) Recognition of Income and Expenditure :

Income and Expenditure are generally recognized on accrual basis.

f) Excise Duty :

The Company has followed a system whereby the Excise Duty is included in the Sales Value and the Value of Closing Stock as required by the Guidance Note of the Institute of Chartered Accountants of India. The actual excise duty paid is shown as expenditure as deduction from Sales and the excise duty if it is unpaid and included in finished goods is shown as liability payable under the head other current liabilities.

g) Foreign Exchange Transaction :

The Company has followed a system whereby the transactions involving Foreign Exchange on revenue account i.e. for foreign travel, import of materials and for export of goods, are ac- counted at the rate of exchange, which is prevailing on the date of transaction. Gains and/or losses arising out of fluctuations in the exchange rates are accounted for on actual realization into Indian Rupees.

h) Gratuity and Leave Encashment :

The Company has provided for Gratuity, Leave Encashment and other retirement benefits, on accrual basis, as per the requirements of AS-15 of the Institute of Chartered Accountants of India The Company has subscribed to an Insurance policy of L.I.C. of India under their approved scheme in respect of Gratuity and Leave Encashment liability and the premiums paid are charged to expenses as per payment made to L.I.C. of India

i) Miscellaneous Expenditure :

Share Issue Expenses along with the preliminary expenses are being amortized by the Company in ten equal installments..

j) Technical Know how fees :

Technical Know how fees are being amortized by the company in five equal installments.

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Mar 31, 2010

A) Accounting Convention:

The financial statements are prepared under historical cost convention on an accrual basis, in accor- dance with the applicable accounting standards.

b) Fixed Assets:

Fixed Assets are stated at cost inclusive of freight, duties, taxes and installation expenses.

c) Depreciation:

Depreciation has been provided on all assets except Land on written down value method at the rates specified in Schedule XIV inserted by the Companies (Amendment) Act,1988, pro-rata depreciation is calculated for all additions made during the year.

d) Valuation of Stock:

Valued at lower of the cost or net realisable value.

e) Recognition of Income and Expenditure:

Income and Expenditure are generally recognised on accrual basis.

f) Excise Duty:

The Company has followed a system whereby the Excise Duty is included in the Sales Value and the

Value of Closing Stock as required by the Guidance Note of the Institute of Chartered Accountants of India. The actual excise duty paid is shown as expenditure as deduction from Sates and the excise duty if it is unpaid and included in finished goods is shown as liability payable under the head other current liabilities.

g) Foreign Exchange Transaction:

The Company has followed a system whereby the transactions involving Foreign Exchange on revenue account i.e. for foreign travel, import of materials and for export of goods, are accounted at the rate of exchange, which is prevailing on the date of transaction. Gains and/or losses arising out of fluctuations in the exchange rates are accounted for on actual realisation into Indian Rupees.

h) Gratuity and Leave Encashment:

The Company has provided for Gratuity, Leave Encashment and other retirement benefits, on accrual basis, as per the requirements of AS-15 of the Institute of Chartered Accountants of India.

i) Miscellaneous Expenditure:

Share Issue Expenses along with the preliminary expenses are being amortised by the Company in ten equal installments. Tecnical knowhow fee is being amortised by the Company in five equal installments.