Accounting Policies of B&A Packaging India Ltd. Company

Mar 31, 2026

2 Basis of preparation and compliance with
Ind AS

The financial statements comply in all
material aspects with the 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.

These financial statements have been prepared
on accrual and going concern basis. The
accounting policies are applied consistently
to the periods presented in the financial
statements.

The financial statements have been prepared
in accordance with the generally accepted
accounting principles in India under the historical
cost convention, except defined employee
retirement benefit obligations which have been
measured at fair value.

2.1 Classification of Assets and Liabilities as
Current and Non-Current

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

The Company has ascertained the operating
cycle as 12 months for the purpose of current
and non-current classification of assets and
liabilities.

An asset Is treated as Current when It is :

- Expected to be realised or intended to be
sold or consumed within normal operating
cycle.

- Held primarily for the purpose of
trading

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

- Cash and cash equivalent unless restricted
from being exchanged or expected to be
settled within twelve months after the
reporting period.

A liability is treated as current when it is:

- Expected to be settled within normal
operating cycle.

- Held primarily for the purpose of
trading.

- Expected to be settled within twelve months
after the reporting period, or

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

All other assets/liabilities are classified as
non-current.

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

The operating cycle is the time between
the acquisition of the assets for processing
and their realisation in cash and cash
equivalents.

Non-current assets (or disposal groups)
held for sale

Non-current assets, or disposal groups
comprising assets and liabilities, are classified
as held-for sale if it is highly probable that they
will be recovered primarily through sale rather
than through continuing use. Such assets, or
disposal groups, are generally measured at the
lower of their carrying amount and fair value
less costs to sell. Once classified as held-for-
sale, intangible assets and property, plant
and equipment are no longer amortised or
depreciated.

2.3 Measurement of fair value

a. Fair value measurement

The Company measures financial instruments,
such as, derivatives at fair value at each balance
sheet date.

Fair value is the price that would be received
to sell an asset or paid to transfer a liability in
an orderly transaction between market
participants at the measurement date. The
fair value measurement is based on the
presumption that the transaction to sell the
asset or transfer the liability takes place either:

- In the principal market for the asset or
liability, or

- In the absence of a principal market, in the
most advantageous market for the asset
or liability

The principal or the most advantageous
market must be accessible by the Company.

The fair value of an asset or a liability is
measured using the assumptions that market
participants would use when pricing the asset
or liability, assuming that market participants
act in their economic best interest.

A fair value measurement of a non-financial
asset takes into account a market participant’s
ability to generate economic benefits by using
the asset in its highest and best use or by
selling it to another market participant that
would use the asset in its highest and best use.

The Company uses valuation techniques that
are appropriate in the circumstances and for
which sufficient data are available to measure
fair value, maximising the use of relevant
observable inputs and minimising the use of
unobservable inputs.

Hierarchy, described as follows, based on
the lowest level input that is significant to
the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices
in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is directly or indirectly
observable

Level 3 — Valuation techniques for which
the lowest level input that is significant to the
fair value measurement is unobservable

For assets and liabilities that are recognised in
the financial statements on a recurring basis,
the Company determines whether transfers
have occurred between levels in the hierarchy
by re-assessing categorisation (based on the
lowest level input that is significant to the fair
value measurement as a whole) at the end of
each reporting period.

For the purpose of fair value disclosures, the
Company has determined classes of assets
and liabilities on the basis of the nature,
characteristics and risks of the asset or liability
and the level of the fair value hierarchy as
explained above.

b. Financial instruments

The estimated fair value of the Company’s
financial instruments is based on market prices
and valuation techniques. Valuations are made
with the objective to include relevant factors
that market participants would consider in setting
a price, and to apply accepted economic and
financial methodologies for the pricing of
financial instruments. References for less active
markets are carefully reviewed to establish
relevant and comparable data.

c. Derivatives

The Company uses derivative financial
instruments, such as forward currency contracts
to hedge its foreign currency risks. Such
derivative financial instruments are initially
recognised at fair value on the date on which
a derivative contract is entered into and are
subsequently re-measured at fair value provided
by the respective banks. 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.

2.4 Financial Assets

a. Classification

The Company classifies its financial assets in
the following measurement categories:
- those to be measured subsequently at fair

value (either through other comprehensive
income or through profit or loss), and
- those to be measured at amortised cost.
The classification depends on the Company’s
business model for managing the financial
assets and the contractual terms of the cash
flows.

For assets measured at fair value, gains and
losses will either be recorded in profit or loss
or other comprehensive income. For investments
in debt instruments, this will depend on the
business model in which the investment is held.
For investments in equity instruments, this will
depend on whether the Company has made
an irrevocable election at the time of initial
recognition to account for the equity investment
at fair value through other comprehensive
income. The Company reclassifies debt
investments when and only when its business
model for managing those assets changes.

b. Measurement

At initial recognition, the Company measures
a financial asset at its fair value plus, in the
case of a financial asset not at fair value through
profit or loss, transaction costs that are directly
attributable to the acquisition of the financial
asset. Transaction costs of financial assets
carried at fair value through profit or loss are
expensed in profit or loss.

Equity Instruments

The Company subsequently measures all
equity investments (other than investments in
subsidiaries, associate and joint ventures) at
fair value. Where the Company''s management
has elected to present fair value gains and
losses on equity investments in other
comprehensive income, there is no subsequent
reclassification of fair value gains and
losses to profit or loss. Changes in the fair
value of financial assets at fair value through
profit or loss are recognised in ‘Other Gain /
(Losses)’ in the Statement of Profit and Loss.

c. Impairment of Financial Assets

The Company assesses on a forward looking
basis the expected credit losses associated
with its assets carried at amortised cost and
FVOCI debt instruments, if any. The impairment
methodology applied depends on whether there
has been a significant increase in credit risk.
Details how the Company determines whether
there has been a significant increase in credit
risk. Loss on impairment is recognised in the
year in which the impairment becomes certain
beyond reasonable doubt.

For trade receivables, the Company applies a
simplified approach in calculating ECLs.
Therefore, the Company does not track changes
in credit risk, but instead recognises a loss
allowance based on lifetime ECLs at each
reporting date. The Company has established
a provision matrix that is based on its historical
credit loss experience, adjusted for forward
looking factors specific to the debtors and the
economic environment.

d. Modification of Financial Instruments

The Company if renegotiates or otherwise
modifies the contractual cash flows of financial
instrument, the Company assesses whether or
not the new terms are substantially different to
the original terms.

If the terms are substantially different, the
original financial instrument is derecognised
and recognises a ‘new’ instrument at fair value
and recalculates a new effective interest rate
for the instrument. Differences in the carrying
amount are also recognised in profit or loss as
a gain or loss on derecognition.

If the terms are not substantially different,
the renegotiation or modification does not result
in derecognition, and the management
recalculates the gross carrying amount based
on the revised cash flows of the financial asset
and recognises a modification gain or loss in
profit or loss. The new gross carrying amount
is recalculated by discounting the modified
cash flows at the original effective interest rate.

e. Derecognition of Financial Assets

A financial asset is derecognised only when

- the Company has transferred the rights to
receive cash flows from the financial asset or

- retains the contractual rights to receive the
cash flows of the financial asset, but assumes
a contractual obligation to pay the cash flows
to one or more recipients.

Where the entity has transferred an asset, the
Company evaluates whether it has transferred
substantially all risks and rewards of ownership
of the financial asset. In such cases, the financial
asset is derecognised. Where the entity has
not transferred substantially all risks and rewards
of ownership of the financial asset, the financial
asset is not derecognised.

Where the entity has neither transferred a
financial asset nor retains substantially all risks
and rewards of ownership of the financial asset,
the financial asset is derecognised if the
Company has not retained control of the
financial asset. Where the Company retains
control of the financial asset, the asset is
continued to be recognised to the extent of
continuing involvement in the financial asset.

2.5 Financial Liabilities

Initial recognition and measurement

Borrowings, trade payables and other financial
liabilities are initially recognised at the value
of the respective contractual obligations.

Subsequent Measurement

After initial recognition, These are subsequently
measured at amortised cost. Any discount
or premium on redemption/ settlement is
recognised in the Statement of Profit and Loss
as finance cost over the life of the financial
liability using effective interest method and
adjusted to the liability figure disclosed in the
Balance Sheet.

De-recognition of Financial liabilities

Financial liabilities are derecognised when the
liability is extinguished i.e. when the contractual
obligation is discharged, cancelled and on
expiry.

2.6 Offsetting Financial Instruments

Financial assets and liabilities are offset and
the net amount is included in the Balance Sheet
where there is a legally enforceable right to
offset the recognised amounts and there is an
intention to settle on a net basis or realise the
asset and settle the liability simultaneously.

2.7 Impairment of Non-Financial Assets

Assets are tested for impairment whenever
events or changes in circumstances indicate
that the carrying amount may not be
recoverable. Impairment loss, if any, is provided

to the extent, the carrying amount of the asset
or cash generating unit exceed their recoverable
amount. Recoverable amount is the higher of
an asset’s net selling price and the present
value of estimated future cash flows expected
to arise from the continuing use of an asset or
cash generating unit and from its disposal at
the end of its useful life.

Impairment losses recognised in prior years
are reversed when there is an indication that
the impairment losses recognised no longer
exists or have decreased. Such reversals are
recognised as an increase in the carrying
amount of the assets to the extent it does not
exceed the carrying amount that would have
been determined (net of depreciation or
amortization) had no impairment loss been
recognised in previous years.

2.8 Provisions

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, and 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. Provisions are
measured at the best estimate of the
expenditure required to settle the present
obligation at the Balance Sheet date.

If the effect of time value of money is material,
provisions are discounted to reflect its present
value using a current pre-tax rate that reflects
the current market assessments of time value
of money and the risks specific to the obligation.
When discounting is used, the increase in the
provision due to passage of time is recognised
as finance cost.

2.9 Contingent Liabilities

Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only
by the occurrence or non-occurrence of one or
more uncertain future events not wholly within
the control of the Company, or when a present
obligation arises from past events where it is
either not probable that an outflow of resources
embodying economic benefits will be required
to settle the obligation or a reliable estimate of
the amount cannot be made.

2.10 Contingent Assets

Contingent assets are not recognised but
disclosed when an inflow of economic benefits
is probable.

2.11 Claims not acknowledged as Debts

Claims against the Company not acknowledged
as debts are disclosed after a careful evaluation
of the facts and legal aspects of the matter
involved.

2.12 Dividends

Interim dividend is recognised in the period in
which it is approved by the Board of Directors
and final dividend in the period in which it is
approved by the Shareholders.

2.13 Employee Benefits

Short Term Employee Benefits

These are recognised at the undiscounted
amount as expense for the Short-term employee
benefits are expensed as the related service
is provided. A liability is recognised for the
amount expected to be paid if the Company
has a present legal or constructive obligation
to pay this amount as a result of past service
provided by the employee and the obligation
can be estimated reliable year in which the
related service is rendered.

Post-Employment Benefit Plans

The Company makes defined contributions to
a Provident Fund scheme, which is recognised
as expenses.

The estimated cost of providing defined benefits
under the Payment of Gratuity Act, 1972 is
calculated by independent actuary using the
projected unit credit method. Service costs and
interest expense are reflected in the Statement
of Profit and Loss. Actuarial gains or losses are
recognised in full under Other Comprehensive
Income.

2.14 Foreign Currencies

The financial statements are presented in Indian
Rupees (INR), the functional currency of the
Company (i.e. the currency of the primary

economic environment in which the entity
operates).

Foreign currency non-monetary items carried
in terms of historical cost are reported using
the exchange rate at the date of the transactions.

2.15 Rounding Off

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
lakhs or decimals thereof as per the requirement
of Division II of Schedule III to the Companies
Act, 2013, unless otherwise stated.

2.16 Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision-maker. Revenue
and expenses are identified to segments on
the basis of their relationship to the operating
activities of the segment. Revenue, expenses,
assets and liabilities which are not allocable to
segments on a reasonable basis, are included
under “Unallocated revenue/ expenses/ assets/
liabilities”.

Segment accounting policies are in line
with the accounting policies of the Company.
In addition, the following specific policies
have been followed for segment reporting:

i) Segment revenue includes sales and other
operational revenue directly identifiable
with/allocable to the segment including
inter segment revenue.

ii) Expenses that are directly identifiable
with/allocable to segments are considered
for determining the segment result.

iii) Most of the centrally incurred costs are
allocated to segments mainly on the basis
of their respective segment revenue
estimated for the reporting period.

iv) Income which relates to the Company as
a whole and not allocable to segments is
included in “unallocable corporate income/
(expenditure)(net)”.

v) Segment resu lts/Segment assets/ Segment
liabilities have not been adjusted for the

exceptional item/s which is/are attributable
to the corresponding segment. The
said exceptional item has been included
in “unallocable corporate income/
(expenditure)(net)”. The corresponding
segment assets have been carried under
the respective segments without adjusting
the exceptional item, if any.

vi) Segment revenue resulting from
transactions with other business segments
is accounted on the basis of transfer price
which are either determined to yield a
desired margin or agreed on a negotiated
basis.

vii) Segment assets and liabilities include those
directly identifiable with the respective
segments. Unallocable corporate assets
and liabilities represent the assets and
liabilities that relate to the Company as a
whole.

2.17 Government Grants and Subsidies

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
conditions. Government grants that compensate
the Company for expenses incurred are
recognised in the statement of profit and loss,
as income or deduction from the relevant
expense, on a systematic basis in the
periods in which the expense is recognised.

2.18 Critical Estimates and Judgements

Information about the judgements made in
applying accounting policies that have the most
significant effects on the amounts recognised
in the financial statements have been given
below:

Classification of financial assets: assessment
of business model within which the assets are
held and assessment of whether the contractual
terms of the financial asset are solely payments
of principal and interest on the principal amount
outstanding.

The areas involving critical estimates and

judgements are: -

a. Taxation

The Company is subject to tax liability under
the provisions of the Income Tax Act, 1961.
Significant judgement is involved in determining
the tax liability for the Company. Further, there
are many transactions and calculations during
the ordinary course of business for which the
ultimate tax determination is uncertain. Further
judgement is involved in determining the
deferred tax position on the balance sheet.

b. Depreciation and amortisation

Depreciation and amortisation is based on
management estimates of the future useful lives
of the property, plant and equipment and
intangible assets. Estimates may change due
to technological developments and other factors
which may result in changes in the estimated
useful life and in the depreciation and
amortisation charges.

c. Actuarial Valuation for Employee Benefits

The determination of Company’s liability towards
defined benefit obligation to employees is made
through independent actuarial valuation
including determination of amounts to be
recognised in the Statement of Profit and Loss
and in Other Comprehensive Income. Such
valuation depends upon assumptions
determined after taking into account inflation,
seniority, promotion and other relevant factors.
Information about such valuation is provided in
notes to the financial statements.

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Mar 31, 2025

BACKGROUND OF THE COMPANY

B & A Packaging India Limited a public limited company established in the year 1986, is mainly engaged in manufacturing and selling activities of quality Paper-sack and Flexi-pack. The Company is an ongoing company having its manufacturing unit at Balasore (Odisha) and two branches at Jorhat (Assam) and Mettupalayam (Tamilnadu). The Company’s immediate holding company is B&A Ltd.

Note 1 - Material Accounting Policies

1.1. Statement of Compliance

These financial statements comply, in all material aspects, with Indian Accounting Standards (Ind ASs) notified under Section 133 of the Companies Act, 2013 (the “Act”). The financial statements have been prepared in accordance with the relevant presentational requirements of the Companies Act, 2013.

Basis of Preparation

These financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to the periods presented in the financial statements.

The financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention, except defined employee retirement benefit obligations which have been measured at fair value.

All assets and liabilities have been classified as current and non-current as per the Company’s normal operating cycle and other criteria as set out in Division II of Schedule III to the Companies Act, 2013. For the purpose of this classification, the Company has ascertained that the time between acquisition of assets for processing and their realisation in cash and cash equivalents does not exceed 12 months.

Ministry of Corporate Affairs (‘‘MCA’’) through a notification dated March 24, 2021, amended Division II of Schedule III of the Companies Act, 2013 andapplicable for the reporting period beginning on or after April 1,2021. The amendment encompasses certain additional disclosure requirements. The Company has

applied and incorporated the requirements of amended Division II of Schedule III of the Companies Act, 2013, to the extent applicable on it while preparing these financial statements.

1.2. Property, Plant and Equipment

Property, plant and equipment is stated at historical cost net of accumulated depreciation and accumulated impairment loss, if any. Historical cost includes expenditure that are directly attributable to the acquisition of the items, including borrowing costs in case of qualifying assets. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other expenses for repairs and maintenance are charged to the Statement of Profit and Loss during the period in which these are incurred.

Gains or losses arising on retirement or disposal of property, plant and equipment are recognised in the Statement of Profit and Loss.

Property, plant and equipment which are not ready for their intended use as on the date of Balance Sheet are disclosed as “Capital Work-in-Progress”.

Depreciation is provided under straight line method based on estimated useful life prescribed under Schedule II to the Companies Act, 2013 except for certain assets where the useful life is determined by the management based on the technical evaluation carried out by the Registered Valuer.

Leasehold land is amortisedover the useful life of the right-to-use asset as per Ind AS 116.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

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

1.3. Intangible Assets

Cost of purchased software is recorded as intangible assets and is amortised from the point at which the software is put to use. Subsequent improvements costs are included in the asset’s carrying amount, only when the future economic benefits associated with the asset will flow to the company and the cost can be measured reliably. The amortization is made on a straight-line basis over an estimated useful life of 5 years.

Patent is recognised at cost together with incidental expenses. The amortisation is made on straight line method every year based on the estimated useful life as per Patent Certificate.

1.4. Inventories

Inventories comprising of Raw Materials, Work-in-Process, Finished Goods and Store and Spares are stated at cost (weighted average basis) or net realisable value whichever is lower. Cost of Work-in-Process and Finished Goods comprises of cost of direct material, direct labour and appropriate portions of variable and fixed overhead expenditure. Cost of inventories also includes other costs incurred in bringing the same to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and estimated cost necessary to make the sell.

1.5. Cash and Cash Equivalents

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents include cash on hand; balance with banks in current accounts and any remittance in transit.

1.6. Financial Assets

Initial Recognition and Measurement

Financial assets are recognised when the Company becomes a party to the contractual provisions of a financial instrument. On initial recognition, a financial asset is recognised at fair value along with related transaction costs where such financial assets are not measured at Fair Value Through Profit or Loss (FVTPL). However, where a financial asset is measured at FVTPL on initial recognition, related

transaction costs are recognised in the Statement of Profit and Loss.

Subsequent Measurement

For subsequent measurement the Company classifies its financial assets into the following categories, based on facts and circumstances:

a. Amortised Cost

b. Fair Value Through Other Comprehensive Income (FVTOCI)

c. Fair Value Through Profit or Loss (FVTPL) Reclassification

Financial assets are not reclassified subsequent to their recognition unless the Company changes its business model for managing financial assets in the reporting period.

Impairment

The Company measures the expected credit loss associated with its financial assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Loss on impairment is recognised in the year in which the impairment becomes certain beyond reasonable doubt.

De-recognition

Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire, or it transfers the contractual rights to receive cash flows from the asset, or the Company has not retained control over the financial asset. Therefore, if the asset is one which is measured at: -

a. amortised cost, the gain or loss is recognised in the Statement of Profit and Loss;

b. fair value through other comprehensive income, the cumulative fair value adjustments previously taken to reserves are classified to the Statement of Profit and Loss unless the asset represents an equity investment in which case the cumulative fair value adjustments previously taken to reserves is reclassified within equity.

Income Recognition

Interest income is recognised in the Statement of Profit and Loss using the effective interest rate method. Dividend income is recognised in the Statement of Profit and Loss when the right to receive dividend is established.

Trade Receivables and Loans

Trade receivables and loans are initially recognised at fair value. Subsequently, these assets are held at amortised cost, using the effective interest rate method net of any expected credit losses. The effective interest rate is the rate that discounts estimated future cash income through the expected life of a financial instrument.

1.7. Financial Liabilities

Borrowings, trade payables and other financial liabilities are initially recognised at the value of the respective contractual obligations. These are subsequently measured at amortised cost. Any discount or premium on redemption/ settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the financial liability using effective interest method and adjusted to the liability figure disclosed in the Balance Sheet.Financial liabilities are derecognised when the liability is extinguished i.e. when the contractual obligation is discharged, cancelled and on expiry.

1.8. Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is included in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

1.9. Impairment of Non-Financial Assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment loss, if any, is provided to the extent, the carrying amount of the asset or cash generating unit exceed their recoverable amount.

Recoverable amount is the higher of an asset’s net selling price and the present value of

estimated future cash flows expected to arise from the continuing use of an asset or cash generating unit and from its disposal at the end of its useful life.

Impairment losses recognised in prior years are reversed when there is an indication that the impairment losses recognised no longer exists or have decreased. Such reversals are recognised as an increase in the carrying amount of the assets to the extent it does not exceed the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognised in previous years.

1.10.Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, and 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. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.

If the effect of time value of money is material, provisions are discounted to reflect its present value using a current pre-tax rate that reflects the current market assessments of time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognised as finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company, or when a present obligation arises from past events where it is either not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent assets are not recognised but disclosed when an inflow of economic benefits is probable.

1.11. Claims not acknowledged as Debts

Claims against the Company not acknowledged as debts are disclosed after a careful evaluation of the facts and legal aspects of the matter involved.

1.12. Dividends

Interim dividend is recognised in the period in which it is approved by the Board of Directors and final dividend in the period in which it is approved by the Shareholders.

1.13. Income Taxes

Income tax expenses for the year comprise of current tax and deferred tax. Current tax is the expected tax payable on the taxable income for the year using the applicable tax rates. Any adjustment to taxes in respect of previous years is recognised and disclosed separately under Tax expenses. Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes.

A deferred tax liability is recognised based on the expected manner of realisation or settlement of the carrying amount of assets or liabilities, using tax rates enacted, or substantively enacted, by the end of the reporting period. Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the assets and liabilities on a net basis. Deferred tax assets and liabilities are set off when there is a legally enforceable right to set off current tax assets against current tax liabilities; and deferred tax assets and the deferred tax liabilities relate to taxes levied by the same taxation authority.

The company has adopted new Income Tax regime with effect from 1st April 2024.

Employee Benefits

Short Term Employee Benefits

These are recognised at the undiscounted amount as expense for the year in which the related service is rendered.

Post-Employment Benefit Plans

The Company makes defined contributions to a Provident Fund scheme, which is recognised as expenses.

The estimated cost of providing defined benefits under the Payment of Gratuity Act, 1972 is calculated by independent actuary using the projected unit credit method. Service costs and interest expense are reflected in the Statement of Profit and Loss. Actuarial gains or losses are recognised in full under Other Comprehensive Income.

1.14. Revenue Recognition

Revenue from sale of goods is recognised when

- all the significant risks and rewards of ownership in the goods are transferred to the buyer,

- there is no continuing managerial involvement with the goods,

- the amount of revenue can be measured reliably and

- it is probable that future economic benefits will flow to the Company.

Revenue is measured at the fair value of the consideration received or receivable including freight recovery. Amounts disclosed as revenue are net of goods and service tax and sales returns.

Revenue from financial assets has been dealt with in Note 1.6.

1.15. Foreign Currencies

The financial statements are presented in Indian Rupees (INR), the functional currency of the Company (i.e. the currency of the primary

economic environment in which the entity operates).

Foreign currency transactions are translated into the functional currency using exchange rates at the date of the transaction. Foreign exchange gains and losses from settlement of these transactions and from translation of monetary assets and liabilities at the reporting date exchange rates are recognised in the Statement of Profit and Loss.

Foreign currency non-monetary items carried in terms of historical cost are reported using the exchange rate at the date of the transactions.

1.16. Borrowing Costs

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to the Statement of Profit and Loss.

1.17. Earnings per Share

Basic earnings per share is computed by dividing: -

- the profit / loss attributable to owners of the Company

- by the weighted average number of equity shares outstanding during the financial year.

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

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

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

1.18. Rounding Off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs or decimals thereof as per the requirement of Division II of Schedule

III to the Companies Act, 2013, unless otherwise stated.

Note 2 - Critical Estimates and Judgements

The areas involving critical estimates and judgements

are: -

• Taxation

The Company is subject to tax liability under Minimum Alternate Tax (MAT) provisions of the Income Tax Act, 1961. Significant judgement is involved in determining the tax liability for the Company. Further, there are many transactions and calculations during the ordinary course of business for which the ultimate tax determination is uncertain. Further judgement is involved in determining the deferred tax position on the balance sheet.

• Depreciation and amortisation

Depreciation and amortisation is based on management estimates of the future useful lives of the property, plant and equipment and intangible assets. Estimates may change due to technological developments, competition, changes in market conditions and other factors and may result in changes in the estimated useful life and in the depreciation and amortisation charges.

• Actuarial Valuation for Employee Benefits

The determination of Company’s liability towards defined benefit obligation to employees is made through independent actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in Other Comprehensive Income. Such valuation depends upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors. Information about such valuation is provided in notes to the financial statements.

• Provisions and Contingencies

Provisions and contingencies are based on the Management’s best estimate of the liabilities based on the facts known at the balance sheet date.

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Mar 31, 2024

BACKGROUND OF THE COMPANY

B & A Packaging India Limited a public limited company established in the year 1986, is mainly engaged in manufacturing and selling activities of quality Paper-sack and Flexi-pack. The Company is an on going company having its manufacturing unit at Balasore (Odisha) and two branches at Jorhat (Assam) and Mettupalayam (Tamilnadu). The Company''s immediate holding company is B&A Ltd.

Note 1 - Material Accounting Policies

1.1. Statement of Compliance

These financial statements comply, in all material aspects, with Indian Accounting Standards (Ind ASs) notified under Section 133 of the Companies Act, 2013 (the “Act”). The financial statements have been prepared in accordance with the relevant presentational requirements of the Companies Act, 2013.

Basis of Preparation

These financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to the periods presented in the financial statements.

The financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention, except defined employee retirement benefit obligations which have been measured at fair value.

All assets and liabilities have been classified as current and non-current as per the Company''s normal operating cycle and other criteria as set out in Division II of Schedule III to the Companies Act, 2013. For the purpose of this classification, the Company has ascertained that the time between acquisition of assets for processing and their realisation in cash and cash equivalents does not exceed 12 months.

Ministry of Corporate Affairs (“MCA”) through a notification dated March 24, 2021, amended Division II of Schedule III of the Companies Act, 2013 and applicable for the reporting period beginning on or after April 1, 2021. The amendment encompasses certain additional disclosure requirements. The Company has

applied and incorporated the requirements of amended Division II of Schedule III of the Companies Act, 2013, to the extent applicable on it while preparing these financial statements.

1.2. Property, Plant and Equipment

Property, plant and equipment is stated at historical cost net of accumulated depreciation and accumulated impairment loss, if any. Historical cost includes expenditure that are directly attributable to the acquisition of the items, including borrowing costs in case of qualifying assets. Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other expenses for repairs and maintenance are charged to the Statement of Profit and Loss during the period in which these are incurred.

Gains or losses arising on retirement or disposal of property, plant and equipment are recognised in the Statement of Profit and Loss.

Property, plant and equipment which are not ready for their intended use as on the date of Balance Sheet are disclosed as “Capital work-in-progress”.

Depreciation is provided under straight line method based on estimated useful life prescribed under Schedule II to the Companies Act, 2013 except for certain assets where the useful life is determined by the management based on the technical evaluation carried out by the Registered Valuer.

Leasehold land is amortised over the useful life of the right-to-use asset as per Ind AS 116.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount.

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

1.3. Intangible Assets

Intangible assets comprise of computer software and Patent.

Costs associated with maintaining software programmes are recognised as an expense in the period in which these are incurred. Cost of purchased software is recorded as intangible assets and is amortised from the point at which the software is put to use. The amortisation is made on a straight line basis over an estimated useful life of 5 years.

Patent is recognised at cost together with incidental expenses. The amortisation is made on straight line method every year based on the estimated useful life as per Patent Certificate.

1.4. Inventories

Inventories comprising of Raw Material, Work-in-Process, Finished Goods and Store and Spares are stated at cost or net realisable value whichever is lower. Cost of Work-in-Process and Finished Goods comprises of cost of direct material, direct labour and appropriate portions of variable and fixed overhead expenditure. Cost of inventories also includes other costs incurred in bringing the same to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business as reduced by estimated cost to sell.

1.5. Cash and Cash Equivalents

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents include cash on hand; balance with banks in current accounts and any remittance in transit.

1.6. Financial Assets

Initial Recognition and Measurement

Financial assets are recognised when the Company becomes a party to the contractual provisions of a financial instrument. On initial recognition, a financial asset is recognised at fair value along with related transaction costs where such financial assets are not measured at Fair Value Through Profit or Loss (FVTPL). However, where a financial asset is measured at FVTPL on initial recognition, related

transaction costs are recognised in the Statement of Profit and Loss.

Subsequent Measurement

For subsequent measurement the Company classifies its financial assets into the following categories, based on facts and circumstances:-

a. Amortised Cost

b. Fair Value Through Other Comprehensive Income (FVTOCI)

c. Fair Value Through Profit or Loss (FVTPL) Reclassification

Financial assets are not reclassified subsequent to their recognition unless the Company changes its business model for managing financial assets in the reporting period.

Impairment

The Company measures the expected credit loss associated with its financial assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Loss on impairment is recognised in the year in which the impairment becomes certain beyond reasonable doubt.

De-recognition

Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire, or it transfers the contractual rights to receive cash flows from the asset, or the Company has not retained control over the financial asset. Therefore, if the asset is one which is measured at :-

a. amortised cost, the gain or loss is recognised in the Statement of Profit and Loss;

b. fair value through other comprehensive income, the cumulative fair value adjustments previously taken to reserves are classified to the Statement of Profit and Loss unless the asset represents an equity investment in which case the cumulative fair value adjustments previously taken to reserves is reclassified within equity.

Income Recognition

Interest income is recognised in the Statement of Profit and Loss using the effective interest rate method. Dividend income is recognised in the Statement of Profit and Loss when the right to receive dividend is established.

Trade Receivables and Loans

Trade receivables and loans are initially recognised at fair value. Subsequently, these assets are held at amortised cost, using the effective interest rate method net of any expected credit losses. The effective interest rate is the rate that discounts estimated future cash income through the expected life of a financial instrument.

1.7. Financial Liabilities

Borrowings, trade payables and other financial liabilities are initially recognised at the value of the respective contractual obligations. These are subsequently measured at amortised cost. Any discount or premium on redemption/ settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the financial liability using effective interest method and adjusted to the liability figure disclosed in the Balance Sheet. Financial liabilities are derecognised when the liability is extinguished i.e. when the contractual obligation is discharged, cancelled and on expiry.

1.8. Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is included in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

1.9. Impairment of Non-Financial Assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment loss, if any, is provided to the extent, the carrying amount of the asset or cash generating unit exceed their recoverable amount.

Recoverable amount is the higher of an asset''s net selling price and the present value of

estimated future cash flows expected to arise from the continuing use of an asset or cash generating unit and from its disposal at the end of its useful life.

Impairment losses recognised in prior years are reversed when there is an indication that the impairment losses recognised no longer exists or have decreased. Such reversals are recognised as an increase in the carrying amount of the assets to the extent it does not exceed the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognised in previous years.

1.10. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, and 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. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.

If the effect of time value of money is material, provisions are discounted to reflect its present value using a current pre-tax rate that reflects the current market assessments of time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognised as finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company, or when a present obligation arises from past events where it is either not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent assets are not recognised but disclosed when an inflow of economic benefits is probable.

1.11. Claims not acknowledged as Debts

Claims against the Company not acknowledged as debts are disclosed after a careful evaluation of the facts and legal aspects of the matter involved.

1.12. Dividends

Interim dividend is recognised in the period in which it is approved by the Board of Directors and final dividend in the period in which it is approved by the Shareholders.

1.13. Income Taxes

Income tax expenses for the year comprise of current tax and deferred tax. Current tax is the expected tax payable on the taxable income for the year using the applicable tax rates. Any adjustment to taxes in respect of previous years is recognised and disclosed separately under Tax expenses. Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes.

A deferred tax liability is recognised based on the expected manner of realisation or settlement of the carrying amount of assets or liabilities, using tax rates enacted, or substantively enacted, by the end of the reporting period. Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the assets and liabilities on a net basis. Deferred tax assets and liabilities are set off when there is a legally enforceable right to set off current tax assets against current tax liabilities; and deferred tax assets and the deferred tax liabilities relate to taxes levied by the same taxation authority.

1.14. Employee Benefits

Short Term Employee Benefits

These are recognised at the undiscounted amount as expense for the year in which the related service is rendered.

Post-Employment Benefit Plans

The Company makes defined contributions to a Provident Fund scheme, which isrecognised as expenses.

The estimated cost of providing defined benefits under the Payment of Gratuity Act, 1972 is calculated by independent actuary using the projected unit credit method. Service costs and interest expense are reflected in the Statement of Profit and Loss. Actuarial gains or losses are recognised in full under Other Comprehensive Income.

1.15. Revenue Recognition

Revenue from sale of goods is recognised when

- all the significant risks and rewards of ownership in the goods are transferred to the buyer,

- there is no continuing managerial involvement with the goods,

- the amount of revenue can be measured reliably and

- it is probable that future economic benefits will flow to the Company.

Revenue is measured at the fair value of the consideration received or receivable including freight recovery. Amounts disclosed as revenue are net of goods and service tax and sales returns.

Revenue from financial assets has been dealt with in Note 1.6.

1.16. Foreign Currencies

The financial statements are presented in Indian Rupees (INR), the functional currency of the Company (i.e. the currency of the primary economic environment in which the entity operates).

Foreign currency transactions are translated into the functional currency using exchange rates at the date of the transaction. Foreign exchange gains and losses from settlement of these transactions and from translation of monetary assets and liabilities at the reporting date exchange rates are recognised in the Statement of Profit and Loss.

Foreign currency non-monetary items carried in terms of historical cost are reported using the exchange rate at the date of the transactions.

1.17. Borrowing Costs

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to the Statement of Profit and Loss.

1.18. Earnings per Share

Basic earnings per share is computed by dividing: -

- the profit / loss attributable to owners of the Company

- by the weighted average number of equity shares outstanding during the financial year.

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

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

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

1.19. Rounding Off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs or decimals thereof as per the requirement of Division II of Schedule III to the Companies Act, 2013, unless otherwise stated.

Note 2 - Critical Estimates and Judgements

The areas involving critical estimates and judgements

are: -

• Taxation

The Company is subject to tax liability under Minimum Alternate Tax (MAT) provisions of the Income Tax Act, 1961. Significant judgement is involved in determining the tax liability for the Company. Further, there are many transactions and calculations during the ordinary course of business for which the ultimate tax determination is uncertain. Further judgement is involved in determining the deferred tax position on the balance sheet.

• Depreciation and amortisation

Depreciation and amortisation is based on management estimates of the future useful lives of the property, plant and equipment and intangible assets. Estimates may change due to technological developments, competition, changes in market conditions and other factors and may result in changes in the estimated useful life and in the depreciation and amortisation charges.

• Actuarial Valuation for Employee Benefits

The determination of Company''s liability towards defined benefit obligation to employees is made through independent actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in Other Comprehensive Income. Such valuation depends upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors. Information about such valuation is provided in notes to the financial statements.

• Provisions and Contingencies

Provisions and contingencies are based on the Management''s best estimate of the liabilities based on the facts known at the balance sheet date.

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Mar 31, 2014

1.1 Accounting System

These financial statements have been prepared on going concern assumptions under the historical cost convention on an accrual basis and in conformity with the relevant accounting standards as notified under the Companies (Accounting Standards) Rules , 2006 and the Companies Act, 1956.

1.2 Fixed Assets

Fixed Assets are stated at cost ( or revalued amounts, as the case may be), less accumulated depreciation and impairment, if any. The cost of acquisition comprises purchase price inclusive of duties (net of Cenvat), taxes, incidental expenses, erection/commissioning/trial run expenses and interest etc, up to the date the assets are ready for intended use. Capital Work-in-Progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date.

1.3 Inventories

Raw Materials and Stores and Spares - Valued at cost.

Finished Goods - Valued at cost or realisable price whichever is lower.

Materials-in-process - Valued at a percentage of cost or realisable price whichever is lower.

1.4 Depreciation and Amortization

Depreciation is provided on Straight Line Method in accordance with the provision of Schedule XIV to the Companies Act,1956 effecting writing off upto ninety-five percent of original cost of individual Fixed Assets.

1.5 Sales

Gross Sales include Excise Duty and Central Sales Tax but does not include Value Added Tax.

Export sales are accounted for on the basis of actual Rupee realisation.

1.6 Import of Raw Materials

Import of Raw Materials are accounted for on the basis of actual rupee payments.

1.7 Borrowing Cost

Borrowing costs attributable to acquisition of fixed assets and capital work in progress, are treated as part of cost of such assets and capitalised upto the stage of commercial production. All other borrowing costs are charged to revenue.

1.8 Employees'' benefits

a) Short term benefits like Salaries, Wages , Contribution to Provident Fund and Pension Scheme and other non- monetary benefits are recognised on actual basis; pending final calculation of Allocable Surplus for the current year as required under the Payment of Bonus Act,1965, provision for bonus is calculated on the basis of last year.

b) The Company''s Rules do not provide for either accumulation or compensation for leave of its employees.

c) Long-term employee benefits are recognised as an expense in the Profit & Loss Account for the year in which the employee has rendered services.The expense is recognised at the present value of the amount payable as per Actuarial valuation. Actuarial gains and losses in respect of such benefits are recognised in the Profit and Loss A/c.

1.9 Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.

(b) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the profit and loss account; exchange difference relating to acquisition of fixed assets are adjusted to the carrying cost of such assets.

1.10 Tax

(a) Current Tax payable for the year is computed as per provisions of Income Tax Act,1961.

(b) Deferred Tax, being tax on difference between profit considered for income tax purpose and profit as per the financial Statement , is recognised as per requirement of Accounting Standard 22.

1.11 Proposed Dividend

Dividend proposed by the Board of Directors is provided for in the books of account pending approval at the Annual General Meeting.

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Mar 31, 2013

1.1 Accounting System

These financial statements have been prepared on going concern assumptions under the historical cost convention on an accrual basis and in conformity with the relevant accounting standards as notified under the Companies (Accounting Standards) Rules , 2006 and the Companies Act, 1956.

1.2 Fixed assets

Fixed Assets are stated at cost ( or revalued amounts, as the case may be), less accumulated depreciation and impairment , if any. The cost of acquisition comprises purchase price inclusive of duties (net of Cenvat ), taxes, incidental ''expenses, erection/commissioning/trial run expenses and interest etc, up to the date the assets are ready for intended use. Capital Work-in-Progress comprises of the Cost of fixed assets that are not yet ready for their intended use at the reporting date.

1.3 Inventories

Raw Materials and Stores and Spares - Valued at cost.

Finished Goods - Valued at cost or realisable price whichever is lower.

Materials-in-process - Valued at a percentage of cost or realisable price whichever is lower.

1.4 Depreciation and Amortization

Depreciation is provided on Straight Line Method in accordance with the provision of Schedule XIV to the Companies Act,1956 effecting writing off upto ninety-five percent of original cost of individual Fixed Assets.

1.5 Sales

Gross Sales include Excise Duty and Central Sales Tax but does not include Value Added Tax. Export sales are accounted for on the basis of actual Rupee realisation.

1.6 Import of Raw Materials

Import of Raw Materials are accounted for on the basis of actual rupee payments.

1.7 Borrowing Cost

Borrowing costs attributable to acquisition of fixed assets and capital work in progress, are treated as part of cost of such assets and Capitalised upto the stage of commercial production. All other borrowing costs are charged to revenue.

1.8 Employees'' benefits

a) Short term benefits like Salaries, Wages , Contribution to Provident Fund and Pension Scheme and other non- monetary benefits are recognised on actual basis; pending final calculation of Allocable Surplus for the current year as required under the Payment of Bonus Act,1965, provision for bonus is calculated on the basis of last year.

b) The Company''s Rules do not provide for either accumulation or compensation for leave of its employees.

c) Long-term employee benefits are recognised as an expense in the Profit & Loss Account for the year in which the employee has rendered services.The expense is recognised at the present value of the amount payable as per Actuarial valuations. Actuarial gains and losses in respect of such benefits are recognised in the Profit and Loss A/c.

1.9 Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.

(b) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the profit and loss account; exchange difference relating to acquisition of fixed assets are adjusted to the carrying cost of such assets.

1.10 Tax

(a) Current Tax payable for the year is computed as per provision of I.T.Act.

(b) Deferred Tax, being tax on difference between profit considered for income tax purpose and profit as per the financial Statement , is recognised as per requirement of Accounting Standard 22.

1.11 Proposed Dividend

Dividend proposed by the Board of Directors is provided for in the books of account pending approval at the Annual General Meeting.

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Mar 31, 2012

1.1 Accounting System

These financial statements have been prepared on going concern assumptions under the historical cost convention on an accrual basis and in conformity with the relevant accounting standards as notified under the Companies (Accounting Standards) Rules , 2006 and the Companies Act, 1956.

1.2 Fixed assets

Fixed Assets are stated at cost ( or revalued amounts, as the case may be), less accumulated depreciation and impairment , if any. The cost of acquisition comprises purchase price inclusive of duties (net of Cenvat ), taxes, incidental expenses, erection / commissioning / trial run expenses and interest etc, up to the date the assets are ready for intended use. Capital Work-in-Progress comprises of the Cost of fixed assets that are not yet ready for their intended use at the reporting date.

1.3 Inventories

Raw Materials and Stores and Spares - Valued at cost.

Finished Goods - Valued at cost or realisable price whichever is lower.

Materials-in-process - Valued at a percentage of cost or realisable price whichever is lower.

1.4 Depreciation and Amortization

Depreciation is provided on Straight Line Method in accordance with the provision of Schedule XIV to the Companies Act,1956 effecting writing off upto ninety-five percent of original cost of individual Fixed Assets.

1.5 Sales

Gross Sales include Excise Duty and Central Sales Tax but does not include Value Added Tax.

Export sales are accounted for on the basis of actual Rupee realisation.

1.6 Import of Raw Materials

Import of Raw Materials are accounted for on the basis of actual rupee payments.

1.7 Borrowing Cost

Borrowing costs attributable to acquisition of fixed assets and capital work in progress, are treated as part of cost of such assets and Capitalised upto the stage of commercial production. All other borrowing costs are charged to revenue.

1.8 Employees' benefits

a) Short term benefits like Salaries, Wages , Contribution to Provident Fund and Pension Scheme and other non- monetary benefits are recognised on actual basis; pending final calculation of Allocable Surplus for the current year as required under the Payment of Bonus Act,1965 , provision for bonus is calculated on the basis of last year.

b) The Company's Rules do not provide for either accumulation or compensation for leave of its employees.

c) Long-term employee benefits are recognised as an expense in the Profit & Loss Account for the year in which the employee has rendered services.The expense is recognised at the present value of the amount payable as per Actuarial valuations. Actuarial gains and losses in respect of such benefits are recognised in the Profit and Loss A/c.

1.9 Foreign Currency Transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.

(b) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the profit and loss account; exchange difference relating to acquisition of fixed assets are adjusted to the carrying cost of such assets.

1.10 Tax

(a) Current Tax payable for the year is computed as per provision of I.T. Act.

(b) Deferred Tax, being tax on difference between profit considered for income tax purpose and profit as per the financial Statement , is recognised as per requirement of Accounting Standard 22.

1.11 Proposed Dividend

Dividend proposed by the Board of Directors is provided for in the books of account pending approval at the Annual General Meeting.

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Mar 31, 2011

1) Accounting System

These financial statements have been prepared on going concern assumptions under the historical cost convention on an accrual basis and in conformity with the relevant accounting standards as notified under the Companies (Accounting Standards) Rules, 2006 and the Companies Act, 1956.

2) Fixed Assets

Fixed Assets are stated at cost (or revalued amounts, as the case may be), less accumulated depreciation and impairment, if any. The cost of acquisition comprises purchase price inclusive of duties (net of Cenvat), taxes, incidental expenses, erection/ commissioning/trial run expenses and interest etc. up to the date the assets are ready for intended use.

3) Inventories

Raw Materials and Stores and Spares - Valued at cost. Finished Goods - Valued at cost or Realisable price whichever is lower. Materials-in-process - Valued at a percentage of cost or realisable price whichever is lower.

4) Depreciation

Depreciation is provided on Straight Line Method in accordance with the provision of Schedule XIV to the Companies Act, 1956 effecting writing off upto ninety-five percent of original cost of individual Fixed Assets.

5) Sales

Gross Sales include Excise Duty and Central Sales Tax but does not include Value Added Tax. Export sales are accounted for on the basis of actual rupee realisation.

6) Import of Raw Materials

Import of Raw Materials are accounted for on the basis of actual rupee payments.

7) Borrowing Cost

Borrowing cost attributable to acquisition of fixed assets and capital work in progress, are treated as part of cost of such assets and Capitalised upto the stage of commercial production. All other borrowing costs are charged to revenue.

8) Employees' benefits

a) Short term benefits like Salaries, Wages, Contribution to Provident Fund and Pension Scheme and other nonmonetary benefits are recognised on actual basis; pending final calculation of Allocable Surplus for the current year as required under the Payment of Bonus Act 1965, provision for bonus is calculated on the basis of last year.

b) The Company's rules do not provide for either accumulation or compensation for leave of its employees.

c) Long-term employee benefits are recognised as an expense in the Profit & Loss Acount for the year in which the employee has rendered services. The expense is recognised at the present value of the amount payable as per Actuarial valuations. Actuarial gains and losses in respect of such benefits are recognised in the Profit and Loss A/c.

9) Foreign Currency Transactions

a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.

b) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the profit and loss account except in cases where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

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Dec 31, 2009

1) Accounting System

The Company follows the concept of mercantile system of accounting in preparation of the accounts.

2) Fixed Assets

All Fixed Assets are stated at cost.

3) Inventories

Raw Materials and Stores and Spares - Valued at cost.

Finished Goods - Valued at cost or Realisable price whichever is lower.

Materials-in-process - Valued at a percentage of cost or realisable price whichever is lower.

4) Depreciation

Depreciation is provided on Straight Line Method in accordance with the provision of Schedule XIV to the Companies Act, 1956 as amended.

5) Sales

Gross Sales include Excise Duty and Central Sales Tax but does not include Value Added Tax. Export sales are accounted for on the basis of actual Rupee realisation.

6) Import of Raw Materials

Import of Raw Materials are accounted for on the basis of actual rupee payments.

7) Borrowing Cost

Borrowing cost attributable to acquisition of fixed assets and capital work in progress, are treated as part of cost of such assets and Capitalised upto the stage of commercial production. All other borrowing costs are charged to revenue.

8) AS-15 (Employees benefits)

The Company has recognised AS-15 (Employees benefits) as revised and accordingly:

a) Paid/Provided for short term benefits like Salaries, Wages and Contribution to Provident Fund and Pension Scheme (as per the Employees Provident Funds and Miscellaneous Provision Act, 1952 as amended); pending final calculation of Allocable Surplus for the current year as required under the payment of Bonus Act, 1965, provision for bonus has been calculated on the basis of last year; other non-monetary benefits have been provided for on actual basis

b) The Companys Rules do not provide for either accumulation or compensation for leave of its employees.

c) Long-term employee benefits are recognised as an expense in the Profit & Loss Acount for the year in which the employee has rendered services. The expense is recognised at the present value of the amount payable as per Actuarial valuations. Actuarial gains and losses in respect of such benefits are recognised in the Profit and Loss A/c. 9) Foreign Currency Transactions

a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.

b) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the profit and loss account except in cases where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets