ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Shricon Industries Ltd.

Mar 31, 2026

1 The Company overview

Shricon Industries Limited is engaged in the business of real estate.

Shricon Industries Limited (The Company), is a public limited Company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. The registered office of the Company is situated at 112B, First Floor, Shakti Nagar, Kota, Rajasthan-324009, INDIA. These financial statements were authorized for issue by the Board of Directors on 30.05.2026

2 Basis of preparation of financial statements

(i) Statement of compliance and basis of preparation

In accordance with the notification issued by the ministry of corporate affairs, the companies required to prepare its financial statements as per the Indian accounting standards (IND AS) prescribed under section 133 of Companies Act 2013 read with rule 3 of the companies (Indian Accounting Standards) rules, 2015 as amended from time to time.

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 accounting policy hitherto in use.

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 accounting policy hitherto in use.

Accordingly the company has prepared these financial statements which comprises the balance sheet as at 31.03.2026, the statement of profit & loss, the statement of cash flows & the statement of changes in equity for the Year ended 31.03.2026 and a summary of the significant accounting policies and other explanatory information (together herein after referred to as "financial statements").

(ii) Basis of Measurement

The Company maintains its accounts on accrual basis following the historical cost convention, except for certain items that have been measured at fair value as required by the relavant IND AS and explained in the ensuing policies below.

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(iii) Use of Estimates & Judgements

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 Year, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as at the date of the financial statements. Actual results could differ from these estimates (Refer note No. 3.2 on critical accounting estimates, assumptions & judgments).

These estimates could change from Year to Year and also the actua! results could vary from the estimates. Appropriate changes are made to the estimates as the management becomes aware of changes in circumstances surrounding these estimates. The changes in estimates are reflected in the financial statements in the Year in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

3.1 Material Accounting policies

(i) Functional and presentation currency

These financial statements are presented in Indian rupees, the national currency of India, which is the functional currency of the company.

(ii) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. A financial assets or a liability is recognised when the Company becomes a Party to the contractual provision of the instrument.

Financial Assets are measured at amortised cost or fair value through Other Comprehensive Income or fair value through Profit or Loss, depending on its business model for managing those financial assets and the assets contractual cash flow characteristics.

Subsequent measurements of financial assets are dependent on initial categorisation, For impairment purposes significant financial assets are tested on an individual basis, other financial assets are assessed collectively in groups that share similar credit risk characteristics.

The company derecognizes a financial assets when the contractual rights to the cash flows from the financial assets expire or it transfers the financial assets and the transfer qualifies for the derecognisition under Ind AS 109.

Investment in subsidiaries, associate and Joint venture

Investments in shares of Subsidiaries, Joint Venture & Associates are measured at cost subject to impairment losses, if any. Investment in Mutual Funds

Investments in Mutual Funds (Other Than Investment in Subsidiaries & Joint Venture) are initially measured at fair value. Any subsequent fair value gain or toss is recognized through Profit or Loss.

Investment in Equity Instruments (other than Investment in Subsidiaries, Associates & Joint Venture)

lnvestmentsinEquitylnstruments(OtherThanlnvestment in Subsidiaries & Joint Venture) are initially measured at fair value. Any subsequent fair value gain or loss is recognized through Other Comprehensive Income.

The company assesses impairment based on expected credit loss (ECL) model to all its financial assets measured at amortised cost.

Cash and Cash Equivalents

"Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above"

(iii) Equity

(a) Share Capital and security premium

The authorized share capital of the Company as of 31.03.2026 Rs. 125 Lacs divided into 12.50 Lacs equity shares of Rs. 10 each. Par value of equity shares is recorded as share capital and amount received in excess of par value is classified as share premium.

(b) Retained Earnings

Retained earnings comprises of the Company''s undistributed earnings after taxes.

(iv) Property, Plant and Equipment

(a) Recognition and measurement

Assets reduced to zero after depreciation but are in use are kept at nominal value. No further depreciation is charged on such assets. Assets discarded, damaged or abondoned are measured at net realisable value.

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

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.

B. The cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, including relevant borrowing costs for qualifying assets and any expected costs of decommissioning. Expenditure incurred after the property, plant and equipment have been put into operation, such as repairs and maintenance, are charged to Statement of Profit and Loss in the Year in which the costs are incurred.

C. An item of property, plant and equipment is derecognised upon disposal. Any gain or loss arising on the disposals determined as the difference between the sale proceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss.

D. Assets in the course of construction are capitalised in the assets under capital work in progress account (CWIP). At the point when an asset is operating at management''s intended use, the cost of construction is transferred to the appropriate category of property, plant and equipment and depreciation commences.

E. Property, piant and equipment except freehold land held for use in the supply or administrative purposes, are stated in the balance sheet at cost less accumulated depreciation and accumulated impairment losses, if any. Freehold land is stated at historical cost.

(b) Depreciation/Amortisation

A. Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight-ine method.

B. Depreciation on tangible assets is provided as per the provisions of Part C of schedule II of the Companies Act,2013 based on useful life and residual value.

Useful life is the Year over which an asset is expected to be used by an enterprise. The estimated total useful life of the assets are as follows-

Class of property, plant and Useful Life euipment

Building 60 Years

Plant & Machinery 8 Years

Furniture & Fixtures 8 Years

Computer 3 Years

Vehicle 8-10 Years

(v) Investment properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the group, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalised to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. Freehold land is stated at historical cost and Leasehold land is stated at historical cost less amortisation. Leasehold land is amortised over the Year of lease as per lease agreement.

(vi) Intangible Assets

(a) Leasehold land is stated at historical cost less amortisation. Amortisation is recognised on a straight-line basis over their estimated useful lives. Leasehold land is amortised over the Year of lease as per lease agreement.

(b) Certain computer software costs are capitalized and recognised as inangible assets based on materiality, accounting prudence and significant benefits expected to flow therefrom for a Year longer than one Year.

(c) Intangible assets with finite useful lives that are acquired seperately are carried at cost less accumulated amortization and

acumulated impairement losses. Intangible assets with indefinite useful lives are carried at cost less accumulated impairement losses.

(d) Software is amortised over an estimated useful life of 3 Years.

(vii) Inventories

Inventories are valued at lower of cost or net estimated realizable value, mainly comprises of publication and printed material. The cost of publication and printed materials have been computed on the basis of cost of materials, labour, cost of conversion

and other costs incurred for bringing the inventories to their present location and condition. Cost is determined using the FIFO method.

(vii) Impairment of Assets

At each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine:

^ The provision for impairment loss required, if any, or ^ The reversal required of impairment loss recognized in previous Years, if any.

An impairment loss is recognized whenever the carrying amount of an asset or its cash generating units exceed its recoverable amount.

Recoverable amount is determined:

In the case of an individual asset, at higher of the net selling price or value in use.

In the case of cash generating unit, at higher of the cash generating unit''s net selling price or value in use.

(viii) Provisions, Contingent Liabilities and Contingent Assets

(a) Provisions are recognised, when

The company has a present obligation as a result of past event;

A probable outflow of resources is expected to settle the obligation;

^ The amount of the obligation can be reliably estimated.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting Year, taking into account the risk and uncertainties surrounding the obligation.

(b) Contingent liability :

A contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event. A contingent liability is recorded in the accounting records if the contingency is probable and the amount of the liability can be reasonably estimated.

Contingent liability is disclosed in the case of:

^A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation;

^ A present obligation when no reliable estimate is possible; and

^ A possible obligation arising from past events where the probability of outflow of resources is not remote.

(c) Contingent Asset :

A Contingent Asset is 3 possible asset that arise from past events and whose existense will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the entity.

(d) Provisions, Contingent liabilies and Contingent assets are reviewed at each reporting date and adjusted accordingly.

(e) The company recognises 100% provision on external debtors (Other then related parties) outstanding for more than 12 months. Debtors older than 3 Years on whom no legal case is pending are written off against provision.

(ix) Revenue Recognition

Income considered receivable is accounted for on accrual basis except those, which cannot be, ascertain with certainty in the respective accounting Year.

(x) Finance Cost

Finance cost comprises interest cost on borrowings. Borrowing cost that are not directly attributable to a qualifying asset are recognized in the statement of profit & loss account using effective interest rate.

Processing fees charged on term loan is recognized in the statement of profit & loss over the tenure of the loan and balance of the processing fee is reduced from loan amount of current Year.

(xi) Other Income (a) Dividend

Dividend income on Equity Shares is recognised when the right to receive the dividend is unconditional as at the Balance Sheet date.

b) The net gain/loss on account of Investments in Debentures/Bonds/Certificate of Deposit/ Commercial papers and Government Securities is recognised on trade date basis.

(xii) Income tax

Income tax comprises current and deferred tax. Income tax expense is recognized in the statement of profit and loss.

(a) Current income tax

Current tax is the amount of tax payable based on the taxable profit for the Year. Taxable profit differs from profit before tax as reported in the statement of profit & loss account because of items of income or expenses that are taxable or deductible in other Years and items that are never taxable or deductible. The companies current tax is calculated using tax rates enacted by the end of the reporting Year related to current Year subject to provisions of MAT as per IT Act.

(b) Deferred income tax

Deferred Tax is recognized on temperary timing differences between the tax bases of assets & liabilities & their carrying amounts, at the rates that have been enacted at the reporting date. The ultimate realisation of deferred tax assets depends upon the generation of future taxable profits during the Year in which those temporary differences & tax loss carry forward become deductible. The company considers the expected reversal of deferred tax liabilities & projected future taxable income in making this assessement. The amount of deferred tax assets considered realizable, however could be reduced in the next term if estimates of future taxable income during the carry forward Year are reduced.

(xiii) Earning per share

Earnings considered in ascertaining the company''s earning per share comprises the net profit after tax attributable to equity shareholders.

Basic earnings per share is computed using the weighted average number of equity shares outstanding during the Year. Diluted earnings per share is computed using the weighted average number of equity and dilutive equivalent shares outstanding during the Year.

3.2 Critical accounting estimates, assumptions and judgements;-

In the process of applying the Company''s accounting policies, management has made the following estimates, assumptions and judgements, which have significant effect on the amounts recognised in the financial statement. Uncertainty about these assumptions and estimates could result in outcome that require a material adjustment to assets or liabilities affected in future Years.

i) Income taxes

The Company''s tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions

ii) Contingencies

Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/iitigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

iii) Allowance for uncollected accounts receivable and advances

Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate allowances for estimated irrecoverable amounts. Individual trade receivables and advances are written off when management deems them not to be collectible. Impairment is made on the expected credit losses, which are the present value of the cash shortfall over the expected life of the financial assets.

iv) Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the assets''s recoverable amount. An assets''s recoverable amount is the higher of an assets’s or CGU''s fair value less costs of disposal and its value in use. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

v) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s past history, existing market conditions as well as forward looking estimates at the end of each reporting Year.

vi) Fair value measurement of financial instruments

When the fair values of financials assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow model, which involve various judgements and assumptions.

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Mar 31, 2025

2.4 Summary of Material Accounting Policies:

(a). Property, Plant and Equipment

Property, Plant and Equipment are stated at cost or as revalued, less accumulated depreciation and
impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing
the asset to its working condition for its intended use. Borrowing costs relating to acquisition of
fixed assets, if material, are also included in cost to the extent they relate to the period till such
assets are ready to be put to use.

Depreciation on Property, Plant and Equipment is provided on useful life of the assets on Written
down Value method as specified in Schedule II to the Companies Act, 2013.

Impairment of Assets

A Property, Plant and Equipment is treated as impaired when the carrying cost of assets exceeds its
recoverable value. An impairment loss is charged to the profit & loss account in the year in which an
asset is identified as impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable amount. After impairment,
depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

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(b) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated
amortization/depletion and impairment loss, if any. The cost comprises purchase/acquisition price,
borrowing costs, and any cost directly attributable to bringing the asset to its working condition for
the intended use and net charges on foreign exchange contracts and adjustments arising from
exchange rate variations attributable to the intangible assets.

Technology Asset acquired on amalgamation is amortized over useful life of the underlying Asset.
Computer Software is amortized over a period of life as specified in schedule II of the companies act
and on Written down Value method as specified in Schedule II to the Companies Act, 2013.

(c) Revenue Recognition

Revenue is recognized to the extent it is probable that the economic benefits will flow
to the company and the revenue can be reliably measured.

(!) Sale of Goods

Revenue from sale of goods is recognized when the Material risks and rewards of
ownership of the goods have passed to the buyer and is stated net of trade discount,
returns and Sales Tax / VAT/GST or other taxes collected on behalf of the government.
Given the nature of business of the company, the company require to issue Tax Invoice
when finished goods are ready for dispatch, but after issue of Tax Invoice to buyer,
buyer need to submit Essential Certificate, (EC) to the company from DGH, which takes
normally two weeks'' time before dispatch, till such time FG can''t be dispatched, but the
same is accounted for in sales as per Tax Invoice issued.

(ii) Sale of Services

Revenue from rendering services is recognized when the performance of agreed
contractual task has been completed.

(iii) Other Operating Revenue

Interest from foreign exchange fluctuation, which is mostly related to sale and is
recognised as other operating income, being related to direct operational income.
Incentives on exports and other Government Grants related to operations are
recognised in books after due consideration of certainty of utilization/receipt of such
incentives.

(iv) Interest * Revenue is recognized on a time proportion basis taking into account the
amount outstanding and the rate applicable.

(v) Export Benefits / Incentives - Export entitlement under Duty Entitlement Pass Book
(''DEPB'') Scheme are recognised in the Profit & Loss Account when the right to receive
credit as per terms of the scheme is established in respect of export made and where
there is no Material uncertainty regarding the ultimate collection of the relevant export
proceeds.

(d) Expenditures

Rebate, claims & settlement on goods sold are accounted for as and wbeft4iiese are
ascertained with reasonable accuracy.

(e) Inventories

(i) Inventories of Finished Goods, Work in progress, Raw materials, Packing materials and
Stores & Spares are stated at lower of cost and net realizable value.

(ii) Cost of Raw Materials, Packing Materials, Stores and Spares, Trading and other products
are determined on weighted average basis and are net of GST/Cenvat credit.

(iii) Cost of Work in progress and Finished Goods is determined considering direct material
cost and appropriate portion of manufacturing overheads based on normal operating
capacity.

(iv) Obsolete, slow moving and defective inventories are identified at the time of physical
verification of inventories and where necessary, either written off or provision is made
for such inventories.

(iv) Cost of 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) Employee Benefit

(i) Short Term Employee Benefit:

The undiscounted amount of short term employee benefits expected to be paid in
exchange for the services rendered by employees are recognised as an expense during
the period when the employees render the services this excludes leave encashment
entitlement annually, which is accounted for on the basis of actuarial basis.

(ii) Post Employment Benefits :

Defined Contribution Plan;

Employees benefits in the form of the Company''s contribution to Provident Fund,
Pension scheme, Superannuation Fund and Employees State Insurance is a defined
contribution scheme and contributions are charged to the Profit & Loss Account of the
year when the contribution to the respective fund is due.

Defined Benefit Plan:

Retirement benefits in the form of gratuity are considered as defined benefit
obligations and are provided for on the basis of actuarial valuation as at the date of
Balance Sheet which is not funded.

(g) Foreign Currency Transactions

(i) Initial Recognition

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

(ii) Foreign currency monetary items are reported using the closing rate.

(iii) Any gain or loss on account of exchange difference arising either on the settlement or
on reinstatement of foreign currency monetary items is recognised in the Profits Loss

account. _______ ^

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(h) Research and Development

Equipment''s purchased for research and development is capitalized when
commissioned and included in the gross block of Property, Plant and Equipment.
Revenue expenditure on research and development related to development of
intangible asset is charged to intangible assets under development and taken to
intangible assets, till research is complete and the same is recognized as intangible
assets ready for use. The other expenditure on R&D is charged to profit & loss account
in the period in which it is incurred.

(i) Prior period adjustments

Earlier year items, adjustment/Claims, arisen / settled / noted during the year are, if
material in nature, are debited / credited to the prior period Expenses/lncome or
respective heads of account if not material in the nature, if material charged to other
equity and carried to Balance Sheet.

(j) Investments

Investments that are readily realizable and intended to be held for not more than a year
classified as current investments. All other investments are classified as long-term
investments. Current investments are carried at lower of cost and fair value. Long -term
investments are stated at cost. Provision for diminution in the value of investments is
made, if it is other than temporary.

(k) Finance Cost

Borrowing costs that are attributable to the acquisition or construction of a qualifying
asset are capitalized as part of the cost of such asset. A qualifying asset is one that
necessarily takes a substantial period of time to get ready for intended use. All other
borrowing costs are recognized as an expense in the period in which they are incurred.

(l) Tax Expenses

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

(i) Current Tax

Provision for Current Tax is made after considering benefits, exemptions and deductions
available under the Income Tax Act,1961.

(ii) Deferred tax

Deferred Tax is recognized subject to consideration of prudence, on timing differences,
representing the difference between the taxable income/(loss) and accounting
income/(loss) that originated in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured using the tax rates
and tax laws that have been enacted or substantively enacted by the Balance Sheet
date.

The Company reviews the "MAT credit entitlement" asset at each reporting date and
writes down the asset to the extent the Company does not have convirtg^Mtlspce
that it will pay normal tax during the specified period. /

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(m) Leases

Leases are classified as finance leases whenever the terms of the lease, transfers
substantially all the risks and rewards of ownership to the lessee. All other leases are
classified as operating leases.

Leased assets: Assets held under finance leases are initially recognized as assets of the
Company at their fair value at the inception of the lease or, if lower, at the present
value of the minimum lease payments. The corresponding liability to the lessor is
included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance expenses and reduction of the lease
obligation so as to achieve a constant rate of interest on the remaining balance of the
liability. Finance expenses are recognised immediately in Statement of Profit and Loss,
unless they are directly attributable to qualifying assets, in which case they are
capitalized. Contingent rentals are recognised as expenses in the periods in which they
are incurred.

A leased asset is depreciated over the useful life of the asset. However, if there is no
reasonable certainty that the Company will obtain ownership by the end of the lease
term, the asset is depreciated over the shorter of the estimated useful life of the asset
and the lease term.

Operating lease payments are recognized as an expense in the Statement of Profit and
Loss on a straight-line basis over the lease term except where another systematic basis
is more representative of time pattern in which economic benefits from the leased
assets are consumed.

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Mar 31, 2024

MATERIAL ACCOUNTING POLICIES AND OTHER DISCLOSURES ON FINANCIAL STATEMENTS

These are hereunder given summary of Material accounting policies and other disclosures on the consolidated financial statements

1. CORPORATE INFORMATION

Shricon Industries Limited (The Company), is a public limited Company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India The registered office of the Company is situated at 112B, First Floor, Shakti Nagar. Kota, Rajasthan-324009, INDIA.

2. MATERIAL ACCOUNTING POLICIES

This note provides a list of the Material accounting policies adopted in the preparation of these standalone financial statements.

2.1 Basis of preparation and presentation

(i) These standalone financial statements have been prepared under the historical cost convention

and on an accrual basis except in case of assets for which provision for impairment is made and revaluation is carried out The accounting policies have been consistently applied The financial statements are presented in Indian rupees rounded off to the nearest rupees.

(ii) Compliance with Ind AS

The 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) (Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

Recent accounting pronouncements New and amended standards adopted by the Company

The Ministry of Corporate Affairs had vide notification dated 23 March 2022 notified Companies (Indian Accounting Standards) Amendment Rules, 2022 which amended certain accounting standards, and are effective 1 April 2022 These amendments did not have any impact on the amounts recognised in prior periods and are not expected to materially affect the current or future periods.

New and amended standards issued but not effective

The Ministry of Corporate Affairs has vide notification dated 31 March 2023 notified Companies (Indian Accounting Standards) Amendment Rules, 2023 (the ''Rules'') which amends certain accounting standards, and are effective 1 April 2024 The Rules predominantly amend Ind AS 12, Income taxes, and Ind AS 1, Presentation of financial statements. The other amendments to Ind AS notified by these rules are primarily in the nature of clarifications. These amendments are not expected to have a material impact on the company in the current or future reporting periods and on foreseeable future transactions. Specifically, no changes would be necessary as a consequence of amendments made to Ind AS 12 as the company''s accounting policy already complies with the now mandatory treatment.

2.2 Basis of Measurement

The standalone financial statements have been prepared on accrual basis and under the historical cost convention except following which have been measured at fair value: • certain financial assets and liabilities, • defined benefit plans - plan assets measured at fair value

The standalone financial statements are presented in Indian Rupees ( ), which is the Company’s functional and presentation currency and all amounts are rounded to the nearest lakhs ( 00,000) and two decimals thereof, except as stated otherwise

2.3 Use of Estimates

The preparation of the financial statements requires management to make estimates and assumptions. Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision effects only that period or in the period of the revision and future periods if the revision affects both current and future years.

2.4 Summary of Material Accounting Policies:

(a) . Property, Plant and Equipment

Property, Plant and Equipment are stated at cost or as revalued, less accumulated depreciation and impairment fosses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets, if material, are also included in cost to the extent they relate to the period till such assets are ready to be put to use.

Depreciation on Property, Plant and Equipment is provided on useful life of the assets on Written down Value method as specified in Schedule II to the Companies Act, 2013.

Impairment of Assets

A Property, Plant and Equipment is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life

(b) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion and impairment loss, if any. The cost comprises purchase/acquisition price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.

Technology Asset acquired on amalgamation is amortized over useful life of the underlying Asset. Computer Software is amortized over a period of life as specified in schedule II of the companies act and on Written down Value method as specified in Schedule II to the Companies Act, 2013

(c) Revenue Recognition

Revenue is recognized to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

(i) Sale of Goods

Revenue from sale of goods is recognized when the Material risks and rewards of ownership of the goods have passed to the buyer and is stated net of trade discount, returns and Sales Tax / VAT/GST or other taxes collected on behalf of the government. Given the nature of business of the company, the company require to issue Tax Invoice when finished goods are ready for dispatch, but after issue of Tax Invoice to buyer, buyer need to submit Essential Certificate, (EC) to the company from OGH , which takes normally two weeks'' time before dispatch, till such time FG can''t be dispatched, but the same is accounted for in sales as per Tax Invoice issued.

(ii) Sale of Services

Revenue from rendering services is recognized when the performance of agreed contractual task has been completed.

(iii) Other Operating Revenue

Interest from foreign exchange fluctuation, which is mostly related to sale and is recognised as other operating income, being related to direct operational income. Incentives on exports and other Government Grants related to operations are recognised in books after due consideration of certainty of utilization/receipt of such incentives.

(iv) Interest - Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

(v) Export Benefits / Incentives - Export entitlement under Duty Entitlement Pass Book (''DEPB’) Scheme are recognised in the Profit & Loss Account when the right to receive credit as per terms of the scheme is established in respect of export made and where there is no Material uncertainty regarding the ultimate collection of the relevant export proceeds.

(d) Expenditures

Rebate, claims & settlement on goods sold are accounted for as and when these are ascertained with reasonable accuracy.

(e) Inventories

(i) Inventories of Finished Goods, Work in progress. Raw materials, Packing materials and Stores & Spares are stated at lower of cost and net realizable value.

(ii) Cost of Raw Materials, Packing Materials, Stores and Spares, Trading and other products are determined on weighted average basis and are net of GST/Cenvat credit.

(iii) Cost of Work in progress and Finished Goods is determined considering direct material cost and appropriate portion of manufacturing overheads based on normal operating capacity.

(iv) Obsolete, slow moving and defective inventories are identified at the time of physical verification of inventories and where necessary, either written off or provision is made for such inventories.

(iv) Cost of 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) Employee Benefit

(i) Short Term Employee Benefit:

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services this excludes leave encashment entitlement annually, which is accounted for on the basis of actuarial basis.

(ii) Post Employment Benefits :

Defined Contribution Plan :

Employees benefits in the form of the Company''s contribution to Provident Fund, Pension scheme, Superannuation Fund and Employees State Insurance is a defined contribution scheme and contributions are charged to the Profit & Loss Account of the year when the contribution to the respective fund is due.

Defined Benefit Plan:

Retirement benefits in the form of gratuity are considered as defined benefit obligations and are provided for on the basis of actuarial valuation as at the date of Balance Sheet which is not funded.

(g) Foreign Currency Transactions

(i) Initial Recognition

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

(ii) Foreign currency monetary items are reported using the closing rate.

(iii) Any gain or loss on account of exchange difference arising either on the settlement or on reinstatement of foreign currency monetary items is recognised in the Profit & Loss account.

(h) Research and Development

Equipment''s purchased for research and development is capitalized when commissioned and included in the gross block of Property, Plant and Equipment Revenue expenditure on research and development related to development of intangible asset is charged to intangible assets under development and taken to intangible assets, till research is complete and the same is recognized as intangible

assets ready for use The other expenditure on R&D is charged to profit & loss account in the period in which it is incurred.

(i) Prior period adjustments

Earlier year items, adjustment/Claims, arisen / settled / noted during the year are, if material in nature, are debited / credited to the prior period Expenses/lncome or respective heads of account if not material in the nature, if material charged to other equity and carried to Balance Sheet

(j) Investments •

Investments that are readily realizable and intended to be held for not more than a year classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value Long -term investments are stated at cost. Provision for diminution in the value of investments is made, if it is other than temporary.

(k) Finance Cost

Borrowing costs that are attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost of such asset. A qualifying asset is one that necessarily takes a substantial period of time to get ready for intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

(l) Tax Expenses

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

(i) Current Tax

Provision for Current Tax is made after considering benefits, exemptions and deductions available under the Income Tax Act,1961.

(ii) Deferred tax

Deferred Tax is recognized subject to consideration of prudence, on timing differences, representing the difference between the taxable income/(loss) and accounting income/(loss) that originated in one period and are capable of reversal in one or more subsequent periods Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

The Company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.

(m) Leases

Leases are classified as finance leases whenever the terms of the lease, transfers substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Leased assets: Assets held under finance leases are initially recognized as assets of the Company at their fair value at the inception of the lease or, if lower, at the present

value of the minimum lease payments The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation

Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in Statement of Profit and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalized. Contingent rentals are recognised as expenses in the periods in which they are incurred.

A leased asset is depreciated over the useful life of the asset However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term except where another systematic basis is more representative of time pattern in which economic benefits from the leased assets are consumed

(n) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These estimates are reviewed at each reporting date.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost

Contingent liabilities are not recognized but are disclosed in notes.

Contingent assets are neither recognised nor disclosed in the financial statements.

(o) Segment Reporting

The accounting policies adopted by the company for segment reporting are in line with the Ind AS 108.

Business Segment: The Company''s operating business is engineering goods only and accordingly there is only one business segment.

Currency Segment: The analysis of currency segment is based on the basis of currency. The currency segments considered for disclosure are as follows

(a) Sales in Indian Currency

(b) Sales in foreign currency

Segment Assets denotes for assets in Local Currency and in foreign currency

(p) Earning Per Share

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

For the purpose of calculating diluted Earning per Share, the net profit or loss for the period attributable to Equity Shareholders and the weighted average number of Shares

outstanding during the period are adjusted for the effects of all dilutive potential Equity Shares.

(q) Financial Instruments

(i) Financial Assets

A. Initial recognition and measurement

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

B. Subsequent measurement

(i) Financial assets carried at amortised cost (AC)

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

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

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

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

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

C. Investment in subsidiaries, Associates and Joint Ventures

The Company has accounted for its investments in subsidiaries, associates and joint venture at cost, if any.

D. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in ''Other Comprehensive Income''.

E. Impairment of financial assets

In accordance with Ind AS 109, the Company evaluate impairment of financial assets at fair value through profit and loss (FVTPL)

(ii) Financial liabilities ,

A. Initial recognition and measurement

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

B. Subsequent measurement

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

(iii) Derivative and Financial Instrument and Hedge Accounting

The Company uses derivative financial instruments such as currency swaps and forwards contracts to mitigate the risk of changes in exchange rates. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are also subsequently measured at fair value Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss, except for the effective portion of cash flow hedges which is recognised in Other Comprehensive Income and later to Statement of Profit and Loss when the hedged item affects profit or loss or treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financial assets or non-financial liability.

Hedges that meet the criteria for hedge accounting are accounted for as follows:

a) Cash flow hedge

The Company designates derivative contracts or non derivative financial assets / liabilities as hedging instruments to mitigate the risk of movement in foreign exchange rates for foreign exchange exposure on highly probable future cash flows attributable to a recognised asset or liability or forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in the cash flow hedging reserve being part of other comprehensive income. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the underlying transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the Statement of Profit and Loss upon the occurrence of the underlying transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified in the Statement of Profit and Loss.

b) Fair Value Hedge

The Company designates derivative contracts or non derivative financial assets / liabilities as hedging instruments to mitigate the risk of change in fair value of hedged item due to movement in foreign exchange rates.

Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value hedges are recorded in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used and is amortised to Statement of Profit and Loss over the period of maturity.

(r) Government Grants:

Government grants with a condition to purchase, construct or otherwise acquire longterm assets are initially measured based on grant receivable under the scheme. Such grants are recognised in the Statement of Profit and Loss on a systematic basis over the useful life of the asset. Amount of benefits receivable in excess of grant income accrued based on usage of the assets is accounted as Government grant received in advance. Changes in estimates are recognised prospectively over the remaining life of the assets The company has option to present the government grant related to fixed assets by deducting the grant from the carrying value of the asset and to present the nonmonetary grant at a nominal amount The company has not availed this option in current financial year. Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the company will comply with all attached condition.

(s) Current versus non-current classification

The Company presents assets and liabilities in balance sheet based on current/non-current classification.

The Company has presented non-current assets and current assets before equity, noncurrent liabilities and current liabilities in accordance with Schedule III, Division II of Companies Act, 2013 notified by MCA.

(i) An asset is classified as current when it is:

a) Expected to be realised or intended to be sold or consumed in normal operating cycle,

b) Held primarily for the purpose of trading,

c) Expected to be realised within twelve months after the reporting period, or

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

All other assets are classified as non-current.

(ii) A liability is classified

as current when it is:

a) Expected to be settled in normal operating cycle

b) Held primarily for the purpose of trading,

c) Due to be settled within twelve months after the reporting period, or

d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current. The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents

3. CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS, JUDGEMENT AND KEY SOURCES OF ESTIMATION UNCERTAINTY_______ _____

The preparation of company''s financial statements in conformity with Ind AS require management to make judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Uncertainty about these assumptions and estimates could result in outcomes that require material adjustments to the carrying value of the assets or liabilities affected in future period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized. The management believes that the estimates used in the preparation of the financial statements are prudent and reasonable.

3.1 Depreciation / Amortisation and useful lives of Property, Plant and Equipment / Intangible Assets

Tangible Assets

Depreciation on Property, Plant and Equipment is provided on useful life of the assets which is taken as specified in Schedule II to the Companies Act, 2013 and depreciation is charged on Written Down Value method after taking into residual value of the assets in order to determine the amount of depreciation / amortization to be recorded during reporting period.

Intangible Assets

The intangible asset is amortized over a period of estimated useful life of asset, taking into account of anticipated technological changes. The depreciation / amortization for the future period is revised if there are Material changes from previous estimates

3.2 Recoverability of trade receivable and advances

Judgements are required in assessing the recoverability of overdue trade receivables and advances and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

3.3 Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and

quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances

3.4 Income taxes

Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ from actual outcome which could lead to Material adjustment to the amounts reported in the standalone financial statements.

3.5 Contingencies

Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/ claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy

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Mar 31, 2014

Significant Accounting Policies and Notes to Accounts annexed to and forming part of the Balance Sheet as at 318t March 2014 and Profit and Loss Statement for the year ending on that date.

1. Statement on Significant Accounting Policies

These financial statements are prepared on an accrual basis, under historical cost convention and in compliance in all material aspects with the applicable accounting principles in India, the applicable accounting standards notified under section 211(3C) of the Companies Act 1956 and the relevant provision of the Companies Act 1956 and provision of companies act, 2013 to the extent applicable. Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principals. The significant accounting policies adopted by the company are detailed below.

A. Revenue Recognition

Expenses and income considered payable and receivable respectively are accounted for on accrual basis except those, which can''t be ascertained with certainly in the respective accounting year.

B. Fixed Assets

Fixed assets other than plots are stated at cost of acquisition less depreciation.

C. Depreciation:

Depreciation has been provided on written down value method at the rates and the manner prescribed in the schedule XIV of the Companies Act 1956. However incase of lease hold land no depreciation has been provided for in the books of accounts.

D. Investments

Investments are valued at cost.

E. Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act 1961

F. Impairment of Assets:

As stipulated in AS 28, the Company assessed potential generation of economic benefits from its business units and is of the view that the assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts.

G. Regrouping/Reclassification

Figures for the previous period have been regrouped / reclassified in line with revised Schedule VI as directed by MCA through Notification No. S.O. 447(E).

A. Statutory Auditors remuneration is Rs. 18,000/- (including out of pocket expenses) Previous year Rs. 18,000/-

B. Directors Remuneration Rs. Nil

C. Segmental Reporting: Not Applicable

D. Disclosure of related parties/ related party transactions:

During the year the company has obtained loan from its director Mr. Om Prakash Maheshwari. Company is paying 9% interest on the said loan obtained from directors. Loan taken during the year is Rs. 9,37,836/-, Repaid Rs. 16,107/- (including interest of Rs. 6,37,376/-), maximum outstanding during the year is Rs. 78,43,195/- Closing Balance is Rs. 78,43,195/-, (Previous year, Loan taken is Rs. 18,36,088/-, Repaid Rs. 1,10,696/-, Maximum outstanding Rs. 69,21,466/- Closing Balance is 7 69,21,466/- )-

E. Disclosure under section 22 of the Micro, Small and Medium Enterprises Development Act 2006: Amount due to Micro, Small and Medium Enterprises: Rs. Nil

F. The Management of the company has review the existing assets working conditions and utility as at the balance sheet date and are of the opinion that there exists no indication that an asset has been impaired and hence no impairment has been carried out.

H. Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

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Mar 31, 2013

These financial statements are prepared on an accrual bails, under historical cost convention and in compliance in all material aspects with the applicable accounting principles in India, the applicable accounting standards notified under section 211 (3C) of the Companies Act 1956 and the relevant provision of the Companies Act 1956 Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principals. The significant accounting policies adapted by the company are detailed below.

A. Revenue Recognition

Expenses and income considered payable and receivable respectively are accounted for on accrual basis except those, which can''t be ascertained with certainly in the respective accounting year.

B. Fixed Assets

Fixed assets other than plots are stated at cost of acquisition less depreciation.

C. Depreciation:

Depreciation has been orovided on written down value method at the rates and the manner prescribed in the schedule XIV of the Companies Act 1956. However incase of lease hold land no depreciation has been provided for in the books of account

D. Investments Investments are valued at cost.

E. Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the. Income Tax Act 1961

F. Impairment of Assets:

As stipulated in AS 28, the Company assessed potential generation of economic benefits from its business units and is of the view that the assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is at the view that no impairment provision is called for in these accounts.

G. Kegrouping/Reclassification

Figures for the pievious period have been regrouped / reclassified in line with revised Schedule VI as directed by MCA through Notification No. 5.O. 447(E).

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Mar 31, 2012

These financial statements are prepared on an accrual basis, under historical cost convention and in compliance in all material aspects with the applicable accounting principles in India, the applicable accounting standards notified under section 211(3C) of the Companies Act 1956 and the relevant provision of the Companies Act 1956 Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principals. The significant accounting policies adopted by the company are detailed below.

1. Revenue Recognition

Expenses and income considered payable and receivable respectively are accounted for on accrual basis except those, which can't be ascertained with certainly in the respective accounting year.

2. Fixed Assets

Fixed assets other than plots are stated at cost of acquisition less depreciation.

3. Depreciation:

Depreciation has been provided on written down value method at the rates and the manner prescribed in the schedule XIV of the Companies Act 1956. However incase of lease hold land no depreciation has been provided for in the books of accounts.

4 Investments

Investments are valued at cost.

5. Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act 1961

6. Impairment of Assets:

As stipulated in AS 28, the Company assessed potential generation of economic benefits from its business units and is of the view that the assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts.

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Mar 31, 2010

These financial statements are prepared on an accrual basis, under historical cost convention and in compliance in all material aspects with the applicable accounting principles in India, the applicable accounting standards notified under section 211(3C) of the Companies Act 1956 and the relevant provision of the Companies Act 1956 Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principals. The significant accounting policies adopted by the company are detailed below.

1. Revenue Recognition

Expenses and income considered payable and receivable respectively are accounted for on accrual basis except those, which can’t be ascertained with certainly in the respective accounting year.

2. Fixed Assets

Fixed assets other than plots are stated at cost of acquisition less depreciation.

3. Depreciation:

Depreciation has been provided on written down value method at the rates and the manner prescribed in the schedule XIV of the Companies Act 1956. However incase of lease hold land no depreciation has been provided for in the books of accounts.

4 Investments

Investments are valued at cost.

5. Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act 1961

6. Impairment of Assets:

As stipulated in AS 28, the Company assessed potential generation of economic benefits from its business units and is of the view that the assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts.

7. Previous year figures have been regrouped/ rearranged wherever necessary.

8. Confirmation from the sundry debtors, creditors are still awaited.