Note 2: Material Accounting Policies

2.1 Basis of Preparation and Presentation of Financial Statements

This note provides a list of the Material accounting policies adopted in the preparation of these standalone
financial statements. These policies have been consistently applied to all the years presented, unless otherwise
stated.

(a) Statement of Compliance with Ind AS

These standalone financial statements comply in all material aspects with Indian Accounting Standards
(Ind AS) notified under Section 133 of the Companies Act, 2013 (the ''Act'') and read with [Companies (Indian
Accounting Standards) Rules, 2015] (as amended from time to time) and other relevant provisions of the Act.
These standalone financial statements has also been prepared in compliance with presentation requirement
of Division II of Schedule III to the Companies Act, 2013 ("IND AS Compliant Schedule III"), as applicable to the
standalone financial statements.

(b) Basis of Measurement

The standalone financial statements have been prepared on an accrual basis and under the historical cost
convention, except for certain financial instruments that are measured at fair value as required by the relevant
Ind AS.

(c) Presentation Currency and Rounding Off

The Company''s Standalone Financial Statements are reported in Indian Rupees (''), which is also the Company''s
functional currency, and all values are prepared and presented Rupees in Lakhs ('' 00,000 ) upto two decimals
except when otherwise indicated.

(d) Going Concern

The Company has prepared the standalone financial statements on the basis that it will continue to operate as a
going concern.

(e) Current and Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/non current classification.
An asset is classified as current when it satisfies any of the following criteria:

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

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

c) it is expected to be realised within 12 months after the reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at
least 12 months after the reporting date.

All other assets are classified as non-current.

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

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

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

c) it is due to be settled within 12 months after the reporting date;

d) it does not have the right at the end of the reporting period to defer settlement of the liability for at least
twelve months after the reporting period.;

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and
cash equivalents. The Company has identified its operating cycle as 12 months.

(f) Critical Accounting Judgements, Estimates and Assumptions

The preparation of standalone financial statements in conformity with Ind AS requires the Management to make
judgements, estimates and assumptions regarding the future that affect the reported amounts and disclosures.
The Company based its assumptions and estimates on parameters available when the standalone financial
statements were prepared and reviewed at each Balance Sheet date. Uncertainty about these assumptions
and estimates could result in outcomes that may require a material adjustment to the reported amounts and
disclosures are discussed below.

(i) Employee Benefit Plans

Post-employment benefits represents obligation that will be settled in the future and require assumptions to
project benefit obligations. The cost of post-employment benefit is determined using actuarial valuations.
An actuarial valuation involves making various assumptions that may differ from actual developments in the
future. These include the determination of the discount rate; future salary increases and mortality rates.
Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

(ii) Useful Lives and Residual Values of Property, Plants and Equipment

Property, plant and equipment are depreciated at historical cost using straight-line method based on the
estimated useful life, taking into account their residual value. The asset''s residual value and useful life are
based on the Company''s best estimates and reviewed, and adjusted if required, at each Balance Sheet
date taking into consideration the estimated usage of the assets, operating condition of the assets and
anticipated technological changes etc.

(iii) Fair Value Measurements

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot
be measured based on quoted prices in active markets, their fair values are measured using valuation
techniques which involve various judgements and assumptions. Judgements include consideration of
inputs such as liquidity risk, credit risk and volatility. Changes in the assumption about these factors could
affect the reported fair value of financial instruments.

(iv) Contingent Liabilities

The Company has contingent liabilities arising from various matters that are currently pending.Due to the
uncertainty inherent in such matters, it is often difficult to predict the final outcomes. The cases and claims
against the Company often raise difficult and complex factual and legal issues that are subject to many
uncertainties and complexities, including but not limited to the facts and circumstances of each particular
case and claim, the jurisdiction and the differences in applicable law, in the normal course of business, the
Company consults with experts on matters related to litigations. The Company accrues a liability when it is
determined that an adverse outcome is probable and the amount of the loss can be reasonably estimated.
In the event an adverse outcome is possible or an estimate is not determinable, the matter is disclosed.

(v) Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind As 116
"Leases". Identification of a lease requires significant judgement in assessing the terms and conditions
of the arragement including lease term, anticipated renewals and the applicable discount rate.
The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.

(g) Rounding off Amounts

All amounts disclosed in Standalone Financial Statements and notes have been prepared and presented in ''
Lakhs as per requirement of Schedule III of the Act, unless otherwise stated. Any amount appearing as '' 0.00
represents amount less than '' 5,000.

2.2 Property, Plant and Equipment

Property, Plant and Equipment are initially recognised at cost. The cost includes the purchase price, directly
attributable costs and the estimated present value of any future unavoidable costs of dismantling and removing
items. Subsequent costs are included in the asset''s carrying amount or recognized 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. The carrying amount of any component accounted
for as a separate asset is derecognized when replaced. All other repairs and maintenance is recognised in profit
or loss during the year in which they are incurred.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date
is classified as capital advances under other non-current assets and the cost of assets not put to use before
such date are disclosed under ''Capital Work-in-Progress''(CWIP) . CWIP is stated at cost, net of accumulated
impairment loss, if any.

Depreciation Methods, Estimated Useful Lives

Freehold land is not depreciated. Depreciation on assets under construction does not commence until they are
complete and available for use. Depreciation is provided on all other items of property, plant and equipment so
as to write off their carrying value over their expected useful economic lives as follows.

The Company reviews the estimated residual values and expected useful lives of assets at least annually. In
case of change in estimated life, depreciation is provided prospectively over the remaining useful life of such
assets.

An item of property, plant and equipment 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 statement
of profit and loss when the asset is derecognised.

The carrying amounts of assets are reviewed at each Balance Sheet date to determine if there is any indication
of impairment based on external or internal factors. An impairment loss is recognised wherever the carrying
amount of an asset exceeds its recoverable amount which represents the greater of the net selling price of
assets and their ''value in use''. The estimated future cash flow are discounted to their present value using pre-tax
discount rates and risks specific to the asset.

2.3 Intangible Assets

Intangible assets are recognised when it is probable that the future economic benefits that are
attributable to the assets will flow to the Company and the cost of the asset can be measured reliably.
Externally Acquired intangible assets are initially recognised at cost and subsequently amortised on a straight¬
line basis over their useful economic lives.

Amortization of Intangible assets

The useful lives of intangible assets is based on the management estimates. The useful lives so determined are
as follow

Intangible Assets Useful life

Computer Software 5 years

Useful life and methods of amortisation of Intangible assets are reviewed periodically, with the effect of any
changes in estimate being accounted for on a prospective basis.

2.4 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset
are capitalized as part of the cost of asset till such time the asset is ready for its intended use. A qualifying asset
is an asset that necessarily requires a substantial period of time (generally over twelve months) to get ready for
its intended use.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are
expensed in the period in which they are incurred.

Borrowing costs consist of interest and other costs that a Company incurs in connection with the borrowing of
fund.

2.5 Revenue Recognition

Sale of Goods and Rendering of Services

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the
customer at an amount that reflects the consideration to which the company expects to be entitled in exchange
for those goods or services. The Company has concluded that it is the principal in its revenue arrangements with
the customer because the Company typically controls the goods or services before transferring them to the
customer.

Revenue is generally adjusted for variable consideration such as discounts, rebates, refunds, credits, price
concessions, incentives, liquidated damages or other similar deductions in a contract except when it is highly
probable it will not be provided. The amount of revenue excludes any amount collected on behalf of third parties.

Revenuefrom sales of goods is recognised at the point in timewhen control of the asset is transferredto the customer.
Revenue from installation and commissioning contracts are recognised as per the terms of contract.

Other Income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to
the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by
reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net
carrying amount on initial recognition.

2.6 Taxes

Tax expense for the year, comprising current tax and deferred tax, are included in the determination of the net
profit or loss for the year.

(a) 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 changes in deferred tax assets and liabilities
attributable to temporary differences.

Current income tax assets and liabilities are measured at the amount expected to be recovered or paid to the
taxation authorities, based on the rates and tax laws enacted or substantively enacted, at the reporting date in
the country where the entity operates and generates taxable income. Current tax assets and tax liabilities are
offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to
realize the asset and settle the liability simultaneously.

Current income tax relating to items recognised directly in equity is recognised in equity and not in the Statement
of Profit and Loss.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable
tax regulations are subject to interpretation and establishes provisions where appropriate.

(b) Deferred Tax

Deferred tax is provided using the balance sheet approach on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts for the financial reporting purposes at the reporting
date. 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 liabilities are recognised for all taxable temporary differences, except:

(i) 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 and does not give rise to equal taxable and deductible temporary
difference.

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:

(a) 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 and does not give rise to
equal taxable and deductible temporary differences.

(b) In respect of deductible temporary differences associated with investments in subsidiaries, associates
and interests in joint ventures, 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 offset when there is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate to the same taxation authority.

Deferred tax is recognized in Statement of Profit and Loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, respectively.

2.7 Leases

The Company assesses whether a contract is, or contains, a lease at contract inception or upon the modification
of a contract whether a contract. A contract is, or contains, a lease if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for consideration.

As a Lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term
leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and
right-of-use assets representing the right to use the underlying assets.

(i) Right-of-Use Assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of
right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and
lease payments made at or before the commencement date less any lease incentives received. Right-of-
use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated
useful lives of the assets.

The Company applies a single recognition and measurement approach for all leases, except for short-term
leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and
right-of-use assets representing the right to use the underlying assets.

If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated
over the underlying asset''s useful life. Lease liability and ROU asset have been separately presented
in the Balance Sheet and lease payments have been classified as financing cash flow.

Right of use assets are assessed for impairment whenever there is an indication that the balance sheet
carrying amount may not be recoverable using cash flow projections for the useful life.

(ii) Lease Liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the
present value of lease payments to be made over the lease term. The lease payments include fixed
payments (including in substance fixed payments) less any lease incentives receivable, variable lease
payments that depend on an index or a rate, and amounts expected to be paid under residual value
guarantees. The lease payments are discounted using the interest rate implicit in the lease or, if not readily
determinable, the Company incremental borrowing rate . Subsequently, the Company measures the lease
liability by adjusting carrying amount to reflect interest on the lease liability and lease payments made.
The carrying amount of lease liabilities is remeasured along with a corresponding adjustment to the related
right of use asset if there is a modification, a change in the lease term, a change in the lease payments
(e.g., changes to future payments resulting from a change in an index or rate used to determine such lease
payments) or a change in the assessment of an option to purchase the underlying asset.

Short-Term Lease and Lease of low-Value Assets

The Company applies the short-term lease recognition exemption to its short-term leases of machinery and
equipment (i.e., those leases that have a lease term of twelve months or less from the commencement date and
do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases
of offices, godowns, equipment, etc. that are of low value. Lease payments on short-term leases and leases of
low-value assets are recognised as expense on a straight-line basis over the lease term.

2.8 Inventories

Inventories are valued at the lower of cost or Net Realisable Value (NRV). Net realizable 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.

Raw Materials: Cost includes cost of purchase and other costs incurred in bringing the inventories to their
present location and condition. However, these items are considered to be realisable at cost, if the finished
products, in which they will be used, are expected to be sold at or above cost. Cost is determined on weighted
average basis.

Finished Goods and Work in Progress: Cost includes cost of direct materials and labour and a proportion of
manufacturing overheads based on the actual level of production which approximates normal operating
capacity.

Stores, Spares and other Supplies: Cost includes cost of purchase and other costs incurred in bringing the
inventories to their present location and condition. Cost is determined on weighted average basis.

Note 2: Significant Accounting Policies

I. BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory Accounting Standards as prescribed under section 133 of the Companies Act 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified). Accounting Policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the economic policy hitherto in use.

II. USE OF ESTIMATES :

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known and materialized.

III. PROPERTY, PLANT & EQUIPMENT:

Property, Plant & Equipments are stated at historical cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

The residual values, useful lives and methods of depreciation of tangible assets are reviewed each year and adjusted prospectively, if appropriate. Depreciation is charged based on a review by the management during the year and at the rates derived based on the useful lives of the assets as specified in Schedule II of the Companies Act, 2013 on Straight Line Method. All fixed assets costing individually up to Rs. 5,000/-are fully depreciated by the Company in the year of its capitalization.

IV. INTANGIBLE ASSETS:

Intangible Assets are stated at cost of acquisition, comprising of purchase price exclusive of taxes and duties (net of credit availed) and net of accumulated depreciation and accumulated impairment losses, if any. Accordingly, cost of computer software is amortized over the useful life using written down method over the period of 5 years.

V. VALUATION OF INVENTORIES:

Inventories are valued at Cost or Net Realisable Value whichever is lower.

a) In case of Raw Material, Stores and spares, consumables, the cost includes transportation, duties and taxes (net of GST wherever applicable) and is arrived on FIFO basis.

b) Cost of Finished Goods and Work In Process (WIP ) include the cost of raw material, cost of conversion and other manufacturing costs incurred in bringing the inventories to their present location and condition.

c) Scrap arising in course of production are valued at Net realizable value based on best available estimates available to the management.

VI. EMPLOYEE BENEFITS:

(i) Short Term

Short term employee benefits are recognized as an expense at the undiscounted amount expected to be paid over the period of services rendered by the employees to the company.

(ii) Retirement & other employee benefits

Contribution to Provident Fund, Employee State Insurance and other funds are determined under the relevant statute and charged to revenue account.

No provision for gratuity has been made as none of the employees have completed the stipulated period of service.

Earned leaves are carried forward to future periods are "short term" benefit only if the employees are entitled to either encash or utilize the benefits during the period of twelve months following the end of the accounting period (when they became entitled to the leave). In other cases the benefit is required to be treated as "long term".

VII. REVENUE RECOGNITION:

Revenue is recognized when it is earned, and no significant uncertainty exists as to its realization or collection.

Sale of Goods

Revenue from sale of goods is recognized on delivery of the products, when all significant contractual obligations have been satisfied, the property in the goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained by the company. Revenue from sale of goods is recognized net of rebates and discounts.

Expenses are accounted for on accrual basis and provision is made for all expenses.

Sale of Services

Revenues from services priced on a time and material basis are recognised when services are rendered and related costs are incurred.

Interest income on deposits are recognized on time proportionate basis.

Dividends from investment in shares are recognised when a right to receive payment is established.

VIII. INVESTMENTS:

Investments intended to be held for not more than one year are classified as current investments. All other investments are classified as non-current investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Non-Current investments are carried at cost. However, provision for diminution in value is made to recognise a decline, other than temporary, in the value of the Non-Current investments.

IX. EARNINGS PER SHARE:

The earnings considered in ascertaining the Company''s Earnings Per Share comprise net profit after tax. The number of shares (nominal value of '' 10/-) used in computing Basic Earnings Per Share is weighted average number of shares outstanding during the year.

X. ACCOUNTING FOR TAXES ON INCOME:

a. Current Tax is determined as amount of tax payable in respect of taxable income for the year based on applicable tax rates and law.

b. Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being difference between taxable and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent period(s). Deferred tax assets are not recognized unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets will be realized.

XI. BORROWING COSTS:

Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction/ development of the qualifying asset up to the date of capitalisation of such asset is added to the cost of the assets.

XII. IMPAIRMENT OF ASSETS:

The carrying amounts of assets are reviewed at each balance sheet date to ascertain impairment based on internal / external factors. An impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of the net selling price of the assets or their value in use. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognised impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

XIII. CASH AND CASH EQUIVALENTS:

Cash and cash equivalents comprise of cash at bank, cash in hand and bank deposits having maturity of 3 months or less.

Note 1:    Corporate Information

The Company was incorporated on 21st day of December, 2021 vide Registration No. U27100WB2021PLC250447 with the office of Registrar of Companies, West Bengal, Kolkata. The company having corporate and registered office at Kolkata. The Company is engaged in manufacturing of Railway Components , Sheet Piles and Structures from its Cold Rolled Forming (CRF) Unit located at Singur , Dist :Hooghly , West Bengal.

The financial statements for the year ended 31st March 2023 were approved by the Board of Directors and authorized for issue on 17th April, 2023.

Note 2:    Significant Accounting PoliciesI.    BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory Accounting Standards as prescribed under section 133 of the Companies Act 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified). Accounting Policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the economic policy hitherto in use.

II.    USE OF ESTIMATES :

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known and materialized.

III.    PROPERTY, PLANT & EQUIPMENT:

Property, Plant & Equipments are stated at historical cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

The residual values, useful lives and methods of depreciation of tangible assets are reviewed each year and adjusted prospectively, if appropriate. Depreciation is charged based on a review by the management during the year and at the rates derived based on the useful lives of the assets as specified in Schedule II of the Companies Act, 2013 on Straight Line Method. All fixed assets costing individually up to Rs. 5,000/- are fully depreciated by the Company in the year of its capitalization.

IV.    INTANGIBLE ASSETS:

Intangible Assets are stated at cost of acquisition, comprising of purchase price exclusive of taxes and duties (net of credit availed) and net of accumulated depreciation and accumulated impairment losses, if any. Accordingly, cost of computer software is amortized over the useful life using written down method over the period of 5 years.

V.    VALUATION OF INVENTORIES:

Inventories are valued at Cost or Net Realisable Value whichever is lower.

a)    In case of Raw Material, Stores and spares, consumables, the cost includes transportation, duties and taxes (net of GST wherever applicable) and is arrived on FIFO basis.

b)    Cost of Finished Goods and Work In Process (WIP ) include the cost of raw material, cost of conversion and other manufacturing costs incurred in bringing the inventories to their present location and condition.

c)    Scrap arising in course of production are valued at Net realizable value based on best available estimates available to the management.

VI.    EMPLOYEE BENEFITS:

(i)    Short Term

Short term employee benefits are recognized as an expense at the undiscounted amount expected to be paid over the period of services rendered by the employees to the company.

(ii)    Retirement & other employee benefits

Contribution to Provident Fund, Employee State Insurance and other funds are determined under the relevant statute and charged to revenue account.

No provision for gratuity has been made as none of the employees have completed the stipulated period of service.

Earned leaves are carried forward to future periods are "short term" benefit only if the employees are entitled to either encash or utilize the benefits during the period of twelve months following the end of the accounting period (when they became entitled to the leave). In other cases the benefit is required to be treated as "long term".

VII.    REVENUE RECOGNITION:

Revenue is recognized when it is earned, and no significant uncertainty exists as to its realization or collection. Sale of Goods

Revenue from sale of goods is recognized on delivery of the products, when all significant contractual obligations have been satisfied, the property in the goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained by the company. Revenue from sale of goods is recognized net of rebates and discounts.

Expenses are accounted for on accrual basis and provision is made for all expenses.

Sale of Services

Revenues from services priced on a time and material basis are recognised when services are rendered and related costs are incurred.

Interest income on deposits are recognized on time proportionate basis.

Dividends from investment in shares are recognised when a right to receive payment is established.

VIII.    INVESTMENTS:

Investments intended to be held for not more than one year are classified as current investments. All other investments are classified as non-current investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Non-Current investments are carried at cost. However, provision for diminution in value is made to recognise a decline, other than temporary, in the value of the Non-Current investments.

IX.    EARNINGS PER SHARE:

The earnings considered in ascertaining the Company's Earnings Per Share comprise net profit after tax. The number of shares (nominal value of Rs.10/-) used in computing Basic Earnings Per Share is weighted average number of shares outstanding during the year.

X.    ACCOUNTING FOR TAXES ON INCOME:

a.    Current Tax is determined as amount of tax payable in respect of taxable income for the year based on applicable tax rates and law.

b.    Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being difference between taxable and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent period(s). Deferred tax assets are not recognized unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets will be realized.

XI.    BORROWING COSTS:

Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction/ development of the qualifying asset up to the date of capitalisation of such asset is added to the cost of the assets.

XII.    IMPAIRMENT OF ASSETS:

The carrying amounts of assets are reviewed at each balance sheet date to ascertain impairment based on internal / external factors. An impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of the net selling price of the assets or their value in use. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognised impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

XIII.    CASH AND CASH EQUIVALENTS:

Cash and cash equivalents comprise of cash at bank, cash in hand and bank deposits having maturity of 3 months or less.

XIV.    PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS:

Provisions are recognised only when the Company has present, legal or constructive obligations as a result of past events, for which it is probable that an outflow of economic benefit will be required to settle the transaction and a reliable estimate can be made for the amount of the obligation.

Contingent liability is disclosed for

(i)    possible obligations which will be confirmed only by future events not wholly within the control of the Company, or

(ii)    present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

XV.    CURRENT/ NON CURRENT CLASSIFICATION OF ASSETS/ LIABILITIES:

The Company has classified all its assets / liabilities into current / non-current portion based on the time frame of 12 months from the date of financial statements. Accordingly, assets/ liabilities expected to be realised/ settled within 12 months from the date of financial statements are classified as current and other assets/ liabilities are classified as non-current.

XVI.    ROUNDING OFF AMOUNTS:

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