Significant Accounting Policies

1.1 Statrimnnt of compliance and basis of preparation of financial statements

The Company seeks to build on its legacy in the steel industry by put suing two key strategic objectives: transforming steel from a commodity Into a value-added service offering and leveraging the Company''s expertise in the production of high-quality ''<>ng sred products In addition, the Company intends to diversify ts business portfofco by establishing a venture studio model focusodon creating incubating and scing businesses from the giound up, while making strategic investments in high potential stmt-ups

Pursuant to the order -xed 23 October 202*. the Hon tte National Company Law Tribunal {NCLT), Hyderabad Bench, approved dir- Resolution Plan For implementation of the approved Resnkiron Plan, the Resolution Applicant incorporated a Special Purpose Vehicle (SPV). Pieca Structures Private limited, presently known as Neueon Consol Private limited

Foftowwg implementation ol the Resolution Plan, the Board of Directors was reconstituted in compliance with the provisions of the Companies Act. 2013. me SEBI (Listing Obligations arid Disclosure Roqu rements) Regulations. 2015 and the approved Resolution Plan, ensuring nn appropoate mix Df Executive Non-Executive Women and Independent Directors.

in accordance with me approved Resolution Plan, the Board, at its meeting held on 9 December 2024. approved the reduction of die lace value of the Company''s equity shams from flO each to Re 1 each, faulting m n corresponding reduction nf me paid-up equity share capital from f 56,5-1.45,520 to f 5.65,44.552

Subsequently on 7 November 2025, the Board slotted 50.80 00.968 equity shares of Re. 1 each to Neueon Consol Prorate United the Resolution Appkcnnl and new Ptomoler. m occoidancc willi the approved Resolution Plan and applicable SEBI regulations

Tfie Company received approvals trom BSE Limited and the National Stock Exchange of India Limited for recommencement >1 trading in Its equity sham wlih effect trom 23 December 2025 under ihe trading symbol "NEUEON"

1.2 Basis of preparation of financial statements

The linancial statements have been prepared m accordance with Indian Accounting Standards (Ind AS) as notified by Ministry of Corporate Anars. Government of India vide Notification dated February 16, 2015 Accounting policies have been •ijjpfced consistently to all periods presented in ih-se financial statements Tlie Financial Statements are prepared under ''vstO''ical cost convention from me bocks o'' accounts maintained undei accrual basis except for certain financial instruments, which are measured at fair value anil m accordance v/.ih the Indian Accounting Standards presenbed under the Companies Act, 2013.

These flnanca) statements ore presort too «n Indian rupees, me nanonni currency of India, which « the functional currency of the Company. All amounts included »n the financial statements are reported tn Indian rupees (m Rupees) except number of equity shares and per share data unless olherv/ise stated

1.3 Use of estimates and judgement

The prcparatqn of financial statements requires judgements, estimates and assumptions to bo mode that affect tfie reported amount of assets and kafcfities. cksclosure ol contingent iiabiHies on tfie date of financial statements and the repeated amount of revenues anil e»ponses duing the reporting period Difference between the actual result-, and estimates are recognised in the period in which the results are knowivVnntcr.a''-sed

1.4 Borrowing costs

The Company captahses borrowing costs that arc directly annb viable to mo acquisition construction or prooua-on of qualify, ng asset as a parr of the exist of the asset

The Company recognises other borrowing costs as an expense in the period m which it incurs them A qualifying asset is an asset that necessanfy takes a substantial penod of time to get ready lor its intended use or safe

1.5 Inventories

inventories are stated at the lower of cost and net reMsahle value Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make d«e sale The method of determination of cost and valuation is as under:

Com of Inventories comprises - of Cost of Purchase, cost of conversion and othet costs incurred in bringing them to tlieir present location and condition

Raw Materials and Work-in-Pi ogress are valued at cost usxkj the Weighted Average cost method.

Goods- produced and purefutsed are valued at Cost or N« Realizable value whichever Is low-i

Stores and Soares. Packing material are enrr-oo ai cost, aacnamncn on weighted average bass Necessary provision Is mode m the case of obsolete and non-moving items

1.6 Provisions

Provision# are recognized when the Company has a present obligation (legal or constructive) as a lesiiX of a pant even! it re probable mat an outflow of economic bonetits will be required to settle mo obliqatfon and a reliable estimate can be made of the amount of the obligator)

1.7 Contingent liabilities and contingent assets Contmgont Liabilities

Continuum LatxK»e* a*u not rvcognuud but disclosed in Notes to thu Account* wbvn the Company tws paswhlv obligation duu to past events and existence of the ooigaoon depends upon occurrence or non occurrence of future events nor wholy maun the control ctf the company

Contingent Lacmt.cD ore assessed continuously to dotormino another outflow of ocenomrc rosourcos have become prebobie If tbr outflow becomes prohahle then rcftnirvr prnvblnn n recognued m the financial statement*

Where an entity is Jointly and severally uabto for an Ob#g*0on. the pan of the obligation that ts expected ro bo met by other portm is treafrd an n contingent hnbil«tv The entity rccogmncn a provision for thr part of the obligation 1or which an outflow of resources embodying economic benefits is probable, except in tf e extremely rare circumstances where no notable estimate can be made

Coniinuem Llobbies ai* disclosed m tfv? GenetaJ Notes fornwig part of llte accounts Contingent Assets

Contingent Assets me not recognivd in rlv fuvtncUsI sl/Wrmeni-* Such contingent assess are assessed contmunusty and rur disclosed in Notes wsen me inflow of economic benefits becomes probaWe it a''s wtuaily certain mar intv?w of ecoocmo beneMs wMl arise then soclr assets and me »etoti/e income w I be recogrvsed in Uie financial statements

1.8 Income taxes

incorr** tvu expense repiesenix me tuim of itie tax cumwdy payable and deferred tax Current tax

The uu currently piiyabto r; fused on taxablit profit lor the year. Taxable profit differs from profit lx.*tafa lax as tepexiod in tfw unfement of profit or loss and other compfchenwe incomef5tmenwnt of profit or toss because of items of income or expense that are taxable or deductible in other years and Item* that me never UvoN* or deduabe The Company** current Uu re cateulatod using tax rates that have been enacted or tmtosUnt/voly enacted by the end of the reporting penod Deferred tax

Deferred tax is recognized on tempotary differences between the carrying amounts of assets and talatmes In the ftnantsoJ statements and the conespord-ng tax bases used w lf»e computation ol ta«abi* profit Deferred tax HabiWes are generaty rccogrv/od kx all taxable temporary differences- Deferred tax asserts aro Qcnomlly recognized lor all deduct)bio temporary differences to tim extent ttiiif It is (trobahk* that i.ixihv profits wlf lx? available /igninM which those ifeductililt* temporary differences can be utflred. Such deferred tax assets and ItoMties are not recognizee if the temporary difference arises from me inltws'' recognition (other than In a business combination) of assets and tabrlibes in a transaction that affects nether the taxable pruM nor tfto accourtUig profit, in addition. dlefer ud tax liabMte* aro not loeogntzed if tho temporary d iff or one o ariftK from Phi mma* recognition of goodwill.

Deferred tax liabilities aro rtcognucad for ukjI*v temporary dilferonctf associated with irwtatmonts m subsedfeno# and associates, and interests m joint ventures, except where me company is Me to control the reversal of the temporary orffcrcnce and if is probable that the temporary drf«e''*nce w\li rxy, reverse m rhe foreseeable future Deferred tax assets ansng from deductible temporary differences associated with such investments and interests am only recogmred to the extent that a re probable that there *W be sufficient taxable profits against Winch to utilize Itn? benefit# of lire temporary differences and tf >e?y aie expected to reverse in the forosoaobto teturo

The carrying amount of deterred tax assets re renewed at the end of each reporting penod and reduced to the extent that it is no longer potable iltat sufficient taxable p-ofiN will be available i<> allow it* or p%tn of rite a«er in be recovered

Delorrod tax iU».toos ana assets aro measured at the tax rates mat are expected to apply .n the ported in which the *iMXy re rHrtrk?d or ttw nsv?t reafoed. based on tax rates (and tax. lawn) that lutvr been enacted or substantively enacted by tfv? end of the report mg penod

Current and deferred tax for the year

Current and doferrod tax are recognized m profit or teas, except whon thoy relate to Hems that are recogntzod m other comprehensive income or duccity in eqtxty. In which case Ihc ament and deferred tnx are obo recognized in other comprehfrfwjve income or directly in equity respectively Where current tax or deferred ta« arises from the initvii accounting for a buanvesa combmohon. the tax effect is included in the accounting for live business combmobon.

However the Comvwiy rs In losses So there k no current tax for the current Hnancml Year

1.9 Investment property

tnvtrntment propert r»s are properties r*yd to mm ronttil*; and/or for capital appri''natmn (Including property under consirumon for such purposes) Invrvmenl propones are tnoasieed initially nl cost, induing transaefitea costs AD of the Comporry n property interests he''d under operating leases to earn rentals or lor capaal appi«eciabor purposes are accounted te» as investment Dropcrbos.

Atar entiol reoognaion, the company measures investment property at cost

An investment property 15 derecognized upon disposal or when the investment property is pernionr miy withdrawn from use and no future economc benefits are expected from the disposal Any gam of toss arising on de recognition of Ibe property (cateutoted os the difference between the net disposal proceeds and the cauyrg amount of the asset) ts included n prof): or toss m the period m which me property is derecognized

Investment properties to be depreciated m accordance to the class of asset that it belongs and the Irfe of the asset shall be as

conceived for the samo doss of asset at tlto Company

1.10 Impairment of non-fmanc»al and financiaJ assets

If the recoverable amount of an asset (or cash-generauig unit) e estimated to be less than its carrying amount the carrying amount of the asset {or cash generatng unfl) is roduced to cs recover abto umount An impairment loss is recognized Immediately In profit or loss, unless die relevant asset is carried at a revalue amount, in v.tik:h case dm impairment toss is treated as a revaluation decrease.

Recoverable amount is the higher of fan value less costs of disposal and value in use in assessing vatoe «i use the estimate d future cash flows are discounted to their present value usng a pre tax discount rote Thai reflects current market assessments of time value of money and the risks specific to die asset for which the estimates of future cash flows nave not been adjusted

VAien an impairment toss subsequently reverses tne carrying amount of the asset (or a cosh-gcneratnq unit) is increased to tfn» revised estimate of Its recover «bto amount. tx* so that me trvcreasmJ carrying amount does not exr eed the carrying amount that would have been determined hod no impairment toss been recogrwed for the asset (or cash-generating unit) in prior years. A urvursal of an enpaiiment loss is recognised imroodiatety in profit or toss, unless ttw* relevant asset Is carried at a revalued amount. In winch cose the reversal of the •ropniiirent loss is treated m <1 revaluation increase Al the end of each reporting period, the company reviews the carrying amounts of its tangible, mtarg bfc assets to dotsvmine whether mero is any indication rtvii those assets have suffered an impairment toss If any such mrlicaton exists rhe recoverable amount nf the asset is estimated in order to determine the extent of the impairment loss (rt any) When it is not possible to estimate the recoverable amount of an Indwdual asset The Company estimates ttw tecovwahfe amount of the casti-generating unit If) which the asset belongs Wfien a reasonable and consistent basxs of altocatwn can be identified. Intangible assets with indefinite useful tons and mungWe assets not yat available for use ant tested for Impairment at toast annually, and whenever tfier* is an indication thal the asset may be mpmred Impairment of financial assets

Rranoal assets, other than those at Fa? value through Profit and Loss (FVTPL). are assessed for mocatovs of impairment at dw cod of each reporting penod. Financial assets ore considered to be impaired when there is objective evidence that, as a resort of one or more events thai occurred after me initial recognition of me financial asset, the estimated future cash flows of me investment hove been affected Fo# Available lo« Sato (APS) equity investments, a significant or protonged decline in tins fair value of the security be tow its cost« considered to be oajearve evidence of impairment

For all other financial assets, objective evidence of impairment could include:

Significant financial difficulty of tfw issuer or counterparty.

8roach of contract such as a default or dounqinmcy in interest or principal payments

it becoming probable lliat irw borrower wHi enter bankruptcy or financial re-organisation, 01 the disappearance of an active market for that financial asset because of financial difflcunies

For certain categories of financial assets such as trade recewahtos. assets are assessed rot impairment on individual t>asis Objective ovdcnce of impairment for a po''tloito of rocovab''cscould include companies past experience of collecting payments an increase In the number of delayed payments m ih* portfolio past ttw awing* credit period of zero days, as wefl as observabto changes in latonaJ or local economic conditions that correlate wih deiauft on receivables

Fcy flfwinoaf assets tt\«t are earned at cost, ihe amount of impairment loss to measufad as the difference between the assets carrying amour* and the present value ol the estimated future cash flows discounted nt the currenr market rain of return for a similar financial asset Such imuairrmatt loss will not bo ravarsod m sub$€*juv''it periods

The carrying amount ol the financial asset is reduced by the impairment loss diroedy for al financial assets wtb me exception of trade receivables; such impairment mss is reduced through the use of an alowarvce account for respective financial asset VAien a trade receivable is considered uncollectible, it is wntton off against the allowance account. Subsequent recover** of omounts previously wntton off are credited agoing the allowance account Changes w the carrying amount of the attowanco account are recognized in profit or loss

Fo^r tinanaa. assets measured at amortised cost, if, in a subsequent penod. the amount of the impairment loss decreases and tfw decrease can be related objectively 10 an event occurring after die impairment was recognized, tfw previously recogrx/ed impairment loss is reversed through profit or toss to the extent that the carrying amount of the investment at the date the fcnpafrvn&nf »s reversed does not exceed dm anvjrt.wd coil wixAJ have been fuid if''** impairment rxit been lecognurxf

Do recognition of financial assets:

The Company do recognises a fvvsncial asset when the contractual rights to the cash flows from tho asset oxptro or when it transfers the financial asset and substantially all the risks and rewards of ownership of :he asset to another party If the Company neither transfers nor retains substantially atf the nsks and rewards of ownership and continues to control the transferred a«et. The Company recognises its retained interest in the asset and an associated liability for amounts 4 may have to pay. If the Company retains substantwiv all the risks and rewards of ownership of a transferred financial assert the Company continues to recognise the financial asset and also recognises a oolataraBttd borrowing for the proceeds receiv''d

On de-recognroon of a financial asset n ns entirety ttie difference between the asset''s carrying amount and Uio sun of the consideration receded and receivable and the cumulative gam or toss that hod been recognized m other cumpiehensiva income and accumulated m eouity ts recognized *n proto or toss

Lll Earnings per share

Basic eammgs per equity are computed by drviong the net profit attnhuuibie to the equity holders of the company by the weighted nvwiog* number of equity shares oufciandng during tfm penal Wilted oamngs per equity share is computed by dividing the net profit anjibutable to the equity holders or the company by the weighted average number of equity shares considered tor deriving basic earnings per equity vlwie and aKu die weighted average number of equity slimes tliat could have boon issued upon convcrwn of all dilutive potential equity sftaves The (Motive potential equity shores ore adjusted for the proceeds rece''vnbto had the equity shales been actually issued at bur vaue {»v 0*r avirrage moikri value of tie* outMandvig equity shored) Dilutive potential equity shores are doemod converted os of the beginning the percd unless issued at a later date Otlut/ve potential equ«ry shares ate detemvned independently lor each period presented

The number of equity shares ana potentially dilutive equity shares are adjusted retjospeawefy fee ail periods presentee tor any sit ares splits and bonus shares issues Inducting for efianges effected pt jr to tfie approval of tin* fiiviitoal statements try the Board of DircctonL

1.12 Discontinued operations

A discontinued epefanon is a component o? tr.e Company''s bustnets that represents a separate line of business that nas been disposed oft or is hdd fot sale, or * a subvdwfy acquired cuctowcty with a vcw to resale Ckirafiuitxxi as a de-contmticd operation occura upon the earlier of disposal or Mien mo operation meets the outdo to be classified as held for Mb

L13 Financial instruments Non-der ivativo financial instruments Non-derivative financial instruments consist of:

• financial assets which include cash and cash equivalents trade receivables, unbred revenues finance ''ease rece-vables

employee nnd otfw?i aitoanccs. investments in equity and (toot securities and eligible current and non-curmnt assets.

• Financial HabUHec M>ch mdude long and short-term loons and borrowings, bonk overdrafts, trade payables ei»Qtf)lo current

and non-current labilities

Mon derivative financial instruments ore recognized umty at fair vatoo mcludnc) any directly aflnbutatte transaction costs. Rnancwtl assets are detccogrvrd wfien substantial tlsK-s and rewords of ownership of ttwr financial asset twive been transferred in coses where substantial rtsfcs and rewards of ownership of the financial assets ate noiher traniferrod nor retained, financial assets an? derecognized only when the Company has not retained control over ttv? financial asset Subsequent to fiitoi recognition. non-derivative financial nstrumems are measured as described below

a) Casti and cash equivalents

Rv the purposes of the cash flow Statement, cash nnd cash equhmtools include cash m hand, .*u banks and demand deposts with banks, not of outstaranq bank overdrafts that are ropayaote on demand and ore considered pan of tho Company s cash management system in the siaiemere of financial position, bank over drafts a*e presented under borrowings wUbfi ament tables

b) investments «n Iqutd mutual hinds, equity securffes (other tnan Sitosafartes Joint Venture ana Associates) are valued at then law value. These mvessmonts are moasmod at fan value and changes therein, «bc* than impairment losses, aro recogni/^i in ocher comprehensive income and presented within equip, net of tnwe. Tf*- irTfutefnefit losses if any, are redas5 fted from equty no statement of income. When an available for sate financial asset is derecognized. the related cumulative gain or loss recogrned «l equity »transferred to die statement d income

C) Loanc and receivables

loans nnd receive tecs arc non-derivative financial assets with fixed or detcrminndk? payments that are not quoted m an octive market They are pfesented as current assets, except to'' those maturing late* than 12 months after the reporting date Much are presented ns non current assets. Loans and receivables arc inma ty recognized at fair value plus directly .it?r irxirabie tmnsacoon costs and subsequendy measured at amcrtiTed cost ust>g the ettoarve interest method less any impairment tosses loans and recevabtes comprise bade receivable:. totalled tevenuoa and other assets

Thu Company the un-colkt:uibi:«ty d accounts rec matte by analysing historical payment patterns. customer

concmrationy ontomef cred* worthiness and current economic bends if the fcnnndal condition of a customs oetrnorntc*. additional atiowances may be teqoired d) Trade and odter payables

Trade and ocher payables ate iniiafiy recognized at fair value, and subsequently earned ai omorb/cd cost using tie effective nttxett method For these financial msbuments the carrying amounts approximate far value due to the shod term matunty of llte*.r insbuments

o) Investments in Subsidiary, Associates and Joint Venture

The Company'' accounts mvcstmwu m substomry. Joint ventures and associates at cost An entity concroffed by the company is considered as a subsidiary of the company

investments m sutni&ary company outside indm me translated at the rate of exchange prcvmiing on the dote of acqjisoor

Investments whore the Company has significant influence are class-lied as associates Significant influence is the power to pantdpaie «the financial and operating policy decisions of the Investee but Is not control or |o

a joint arrangement whereby the potties tfwit Iwve Joint control ol the annngement how nghts to the net assets of the joint arrangement is classified as a joint venture, joint centra t$ the contractually agreed shannq ol control ot an arrangement, which exists only when decisions ahout the relevant acidities require unanimous consent ot the parties sharing control

1.14 Segment information

The Company « principally engaged in s-ogle nusmess segment vw , ’Power and Telecom Tower, nru operates In one geographical segment as per on Segment Reporting''. AccouSngty. no segment lepomng has been made by the company.

1. Significant Accounting Policies

1.1 Statement of Compliance and basis of preparation of Financial Statements

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind-
AS) as notified by Ministry of Corporate Affairs, Government of India vide Notification dated
February 16, 2015. Accounting policies have been applied consistently to all periods presented in
these financial statements. The Financial Statements are prepared under historical cost convention
from the books of accounts maintained under accrual basis except for certain financial instruments
which are measured at fair value and in accordance with the Indian Accounting Standards
prescribed under the Companies Act, 2013.

1.2 Application of Indian Accounting Standards (Ind-AS)

All companies (listed or unlisted) having net worth of Rs 5,000 Million or more are required to adopt
Ind AS

All amounts included in the financial statements are reported in of Indian rupees (Rupees in) except
number of equity shares and per share data, unless otherwise stated.

1.3 Use of estimates and judgment

The preparation of financial statements requires judgements, estimates and assumptions to be
made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on
the date of financial statements and the reported amount of revenues and expenses during the
reporting period. Difference between the actual results and estimates are recognised in the period
in which the results are known/materialised

1.4 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.

1.5 Revenue Recognition

Revenue from sale of goods is recognised when the significant risks and rewards of ownership have
been transferred to the buyer, recovery of the consideration is probable, the associated cost can be
estimated reliably, there is no continuing effective control or managerial involvement with the goods,
and the amount of revenue can be measured reliably.

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

Revenue from sale of goods is measured at the fair value of the consideration received or
receivable, taking into account contractually defined terms of payment and excluding taxes or duties
collected on behalf of government

1.6 Property, Plant and Equipment''s

All Property, Plant and Equipment''s (PPE) are stated at carrying value in accordance with previous
GAAP, which is used as deemed cost on the date of transition to Ind AS using the exemption
granted under Ind AS 101.

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. The cost of an item of PPE is the cash price equivalent at the
recognition date. The cost of an item of PPE comprises:

i) Purchase price, including import duties and non-refundable purchase taxes, after deducting
trade discounts and rebates.

ii) Costs directly attributable to bringing the PPE to the location and condition necessary for it to
be capable of operating in the manner intended by management.

iii) The initial estimate of the costs of dismantling and removing the item and restoring the site on
which it is located, the obligation for which the company incurs either when the PPE is acquired
or as a consequence of having used the PPE during a particular period for purposes other than
to produce inventories during that period.

The company has chosen the cost model of recognition and this model is applied to an entire class
of PPE. After recognition as an asset, an item of PPE is carried at its cost less any accumulated
depreciation and any accumulated impairment losses.

1.7 Intangible Assets

All Intangible Assets are stated at carrying value in accordance with previous GAAP, which is used
as deemed cost on the date of transition to Ind AS using the exemption granted under Ind AS 101.
Identifiable intangible assets are recognized when the company controls the asset; it is probable that
future economic benefits expected with the respective assets will flow to the company for more than
one economic period; and the cost of the asset can be measured reliably. At initial recognition,
intangible assets are recognized at cost. Intangible assets are amortized on straight line basis over
estimated useful lives from the date on which they are available for use. Software''s are amortized
over its useful life subject to a maximum period of 5 years or over the license period as applicable.

1.8 Non-Current Assets Held for Sale

The company classifies a non-current asset (or disposal group of assets) as held for sale if its
carrying amount will be recovered principally through a sale transaction rather than through
continuing use. The non-current asset (or disposal group) classified as held for sale is measured at
the lower of its carrying amount and the fair value less costs to sell.

1.9 Depreciation

Depreciation is provided on straight line method as per the useful lives approved by the Board of
Directors, which are equal to those provided under schedule II of the Companies Act, 2013. The
useful life of an asset is reviewed at each financial year-end. Each part of an item of PPE with a cost
that is significant in relation to the total cost of the asset and if the useful life of that part is different
from remaining part of the asset; such significant part is depreciated separately. Depreciation on all
such items have been provided from the date they are ''Available for Use'' till the date of sale /
disposal and includes amortization of intangible assets and lease hold assets. Freehold land is not

depreciated. An item of PPE is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset.

Certain items of small value like calculators, wall clock, kitchen utensils etc. whose useful life is very
limited are directly charged to revenue in the year of purchase. Cost of mobile handsets is also
charged against revenue. The residual value of all the assets is taken as Re 1/-. The useful lives of
the assets are taken as under:-

1.10 Borrowing Costs

The Company capitalises borrowing costs that are directly attributable to the acquisition, construction
or production of qualifying asset as a part of the cost of the asset.

The Company recognises other borrowing costs as an expense in the period in which it incurs them.
A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its
intended use or sale.

1.11 Inventory

Inventories are stated at the lower of cost and net realisable value. Net realisable value represents
the estimated selling price for inventories less all estimated costs of completion and costs necessary
to make the sale. The method of determination of cost and valuation is as under:

Cost of Inventories comprises - of Cost of Purchase, cost of conversion and other costs incurred in
bringing them to their present location and condition.

Raw Materials and Work-in-Progress are valued at cost using the Weighted Average cost method.
Goods- produced and purchased are valued at Cost or Net Realizable value whichever is lower.

Excise duty in respect of finished goods awaiting dispatch is included in the valuation of inventory.

Stores and Spares, Packing material are carried at cost, ascertained on weighted average basis.
Necessary provision is made in the case of obsolete and non-moving items.

1. Significant Accounting Policies

1.1 Statement of Compliance and basis of preparation of Financial Statements

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind-AS) as notified by Ministry of Corporate Affairs, Government of India vide Notification dated February 16, 2015. Accounting policies have been applied consistently to all periods presented in these financial statements. The Financial Statements are prepared under historical cost convention from the books of accounts maintained under accrual basis except for certain financial instruments, which are measured at fair value and in accordance with the Indian Accounting Standards prescribed under the Companies Act, 2013

1.2 Application of Indian Accounting Standards (Ind-AS)

All companies (listed or unlisted) having net worth of Rs 5,000 Million or more are required to adopt Ind AS.

All amounts included in the financial statements are reported in of Indian rupees (Rupees in) except number of equity shares and per share data, unless otherwise stated.

1.3 Use of estimates and judgment

The preparation of financial statements requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised

1.4 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.

1.5 Revenue Recognition

Revenue from sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated cost can be estimated reliably, there is no continuing effective control or managerial involvement with the goods, and the amount of revenue can be measured reliably.

Revenue from sale of goods is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of government

1.6 Property, Plant and Equipment’s

All Property, Plant and Equipment''s (PPE) are stated at carrying value in accordance with previous GAAP, which is used as deemed cost on the date of transition to Ind AS using the exemption granted under Ind AS 101.

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. The cost of an item of PPE is the cash price equivalent at the recognition date. The cost of an item of PPE comprises:

i. Purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.

ii. Costs directly attributable to bringing the PPE to the location and condition necessary for it to be capable of operating in the manner intended by management.

iii. The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which the company incurs either when the PPE is acquired or as a consequence of having used the PPE during a particular period for purposes other than to produce inventories during that period.

The company has chosen the cost model of recognition and this model is applied to an entire class of PPE. After recognition as an asset, an item of PPE is carried at its cost less any accumulated depreciation and any accumulated impairment losses.

1.7 Intangible Assets

All Intangible Assets are stated at carrying value in accordance with previous GAAP, which is used as deemed cost on the date of transition to Ind AS using the exemption granted under Ind AS 101

Identifiable intangible assets are recognized when the company controls the asset; it is probable that future economic benefits expected with the respective assets will flow to the company for more than one economic period; and the cost of the asset can be measured reliably. At initial recognition, intangible assets are recognized at cost. Intangible assets are amortized on straight line basis over estimated useful lives from the date on which they are available for use. Softwares are amortized over its useful life subject to a maximum period of 5 years or over the license period as applicable.

1.8 Non-Current Assets Held for Sale

The company classifies a non-current asset (or disposal group of assets) as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. The non-current asset (or disposal group) classified as held for sale is measured at the lower of its carrying amount and the fair value less costs to sell.

1.9 Depreciation

Depreciation is provided on straight-line method as per the useful lives approved by the Board of Directors, which are equal to those provided under schedule II of the Companies Act, 2013. The useful life of an asset is reviewed at each financial year-end. Each part of an item of PPE with a cost that is significant in relation to the total cost of the asset and if the useful life of that part is different from remaining part of the asset; such significant part is depreciated separately. Depreciation on all such items have been provided from the date they are ‘Available for Use’ till the date of sale / disposal and includes amortization of intangible assets and lease hold assets. Freehold land is not depreciated. An item of PPE is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset.

Certain items of small value like calculators, wall clock, kitchen utensils etc. whose useful life is very limited are directly charged to revenue in the year of purchase. Cost of mobile handsets is also charged against revenue. The residual value of all the assets is taken as Rs 1/-. The useful lives of the assets are taken as under:-

1.10 Borrowing Costs

The Company capitalises borrowing costs that are directly attributable to the acquisition, construction or production of qualifying asset as a part of the cost of the asset.

The Company recognises other borrowing costs as an expense in the period in which it incurs them.

A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.

1.11 Inventory

Inventories are stated at the lower of cost and net realisable value. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. The method of determination of cost and valuation is as under:

Cost of Inventories comprises - of Cost of Purchase, cost of conversion and other costs incurred in bringing them to their present location and condition.

Raw Materials and Work-in-Progress are valued at cost using the Weighted Average cost method.

Goods- produced and purchased are valued at Cost or Net Realizable value whichever is lower.

Excise duty in respect of finished goods awaiting dispatch is included in the valuation of inventory.

Stores and Spares, Packing material are carried at cost, ascertained on weighted average basis. Necessary provision is made in the case of obsolete and non-moving items.

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Preparation of Financial Statements

Financial statements are prepared on Accrual basis under the historical cost convention in accordance with the Accounting Standards as notified by the Companies (Accounting Standards) Rules 2006 and the relevant provisions of the Companies Act 1956.

2. Use of Estimates

The Preparation of financial statements, in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amount of revenue and expenses for the period.

Estimates are based on historical experience where applicable and other assumptions that management believes are reasonable under the circumstances. Actual results could vary from these estimates and any such differences are dealt with in the period in which the results are known/ materialize.

3. Fixed Assets

Fixed Assets are carried at cost less accumulated depreciation and impairment loss if any. Cost comprises the purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets which take substantial period of time to get ready for their intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

4. Depreciation

Depreciation on fixed assets is provided on Straight Line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 2013.

5. Revenue Recognition

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

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

Revenue from traded goods is recognized on symbolic delivery. Significant risks and rewards incidental to ownership are transferred upon issuance of tax invoice and acknowledged by the customers.

Sales are net of sales returns and trade discounts. Export turnover includes related export benefits. Excise duty recovered is presented as a reduction from gross turnover.

6. Inventories

Cost of Inventories comprises - of Cost of Purchase, cost of conversion and other costs incurred in bringing them to their present location and condition.

Raw Materials and Work-in-Progress are valued at cost using the Weighted Average cost method.

Finished Goods- produced and purchased are valued at Cost or Net Realizable value whichever is lower.

Excise duty in respect of finished goods awaiting dispatch is included in the valuation of inventory.

Stores and Spares, Packing material are carried at cost, ascertained on weighted average basis. Necessary provision is made in the case of obsolete and non moving items.

7. Investments

Long-term investments are carried at cost less provision for other than temporary diminution in the carrying value of each investment. Current investments are stated at the lower of cost or quoted /fair value.

8. Leases

Lease arrangements where the risks and rewards incident to the ownership of an asset substantially vest with the lessor, are recognized as Operating leases. Lease rentals under operating leases are recognized in the Profit and Loss account on a straight-line basis over the lease term.

9. Employee Benefits

Short term employee benefits (benefits which are repayable within twelve months after the end of the period in which the employees render service) are measured at cost and are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services are rendered.

Contributions to Provident Fund, a defined contribution plan, are made in accordance with the statute and are recognized as an expense when employees have rendered service entitling them to the contributions.

Other long term employee benefits (benefits which are payable after the end of twelve months from the end of the year in which the employees render service) are measured on a discounted basis by the Projected Unit Credit Method on the basis of actuarial valuation. Actuarial gains and losses are recognized in the profit and loss account.

10. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when there is a present obligation 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 in respect of which a reliable estimate can be made.

Contingent liabilities are not provided for and are disclosed by way of notes.

Contingent assets are neither recognized, nor disclosed in the financial statements.

11. Foreign Currency Transactions

Transactions in foreign currencies are recorded at the exchange rates prevailing on the dates of transactions and in the case of purchase of material and sale of goods, the exchange gains/losses on the settlements during the year are changed to profit and loss account.

Monetary assets and liabilities denominated in foreign currencies are translated at the rates prevailing as on the date of Balance Sheet.

12. Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of such assets till such time as the asset is ready for its intended use or sale.

13. Taxation

Current tax is determined as the amount of tax payable in respect of taxable income of the year. Deferred tax for timing differences between the income as per the financial statement and income as per the Income tax Act, 1961 is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date.

Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be created.

14. Impairment of Assets

Assets that are subject to impairment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount.

15. Earnings per Share

The earnings considered in ascertaining EPS comprises the Net Profit after tax. The numbers of shares used in computing the Basic EPS are the weighted average number of shares outstanding during the period.

For the purpose of calculating the diluted earnings 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 effect of all dilutive potential equity shares.

16. Cash flow statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payment. The cash flows from regular revenue generating investment and financing activities of the Company are segregated.

1. Basis of Preparation of Financial Statements

Financial statements are prepared on Accrual basis under the historical cost convention in accordance with the Accounting Standards as notified by the Companies (Accounting Standards) Rules 2006 and the relevant provisions of the Companies Act 1956.

2. Use of Estimates

The Preparation of financial statements, in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amount of revenue and expenses for the period.

Estimates are based on historical experience where applicable and other assumptions that management believes are reasonable under the circumstances. Actual results could vary from these estimates and any such differences are dealt with in the period in which the results are known/ materialize.

3. Fixed Assets

Fixed Assets are carried at cost less accumulated depreciation and impairment loss if any. Cost comprises the purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets which take substantial period of time to get ready for their intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

4. Depreciation

Depreciation on fixed assets is provided on Straight Line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act 1956.

5. Revenue Recognition

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

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

Revenue from traded goods is recognized on symbolic delivery. Significant risks and rewards incidental to ownership are transferred upon issuance of tax invoice and acknowledged by the customers.

Sales are net of sales returns and trade discounts. Export turnover includes related export benefits. Excise duty recovered is presented as a reduction from gross turnover.

6. Inventories

Cost of Inventories comprises - of Cost of Purchase, cost of conversion and other costs incurred in bringing them to their present location and condition.

Raw Materials and Work-in-Progress are valued at cost using the Weighted Average cost method.

Finished Goods- produced and purchased are valued at Cost or Net Realizable value whichever is lower.

Excise duty in respect of finished goods awaiting dispatch is included in the valuation of inventory.

Stores and Spares, Packing material are carried at cost, ascertained on weighted average basis. Necessary provision is made in the case of obsolete and non moving items.

7. Investments

Long-term investments are carried at cost less provision for other than temporary diminution in the carrying value of each investment. Current investments are stated at the lower of cost or quoted /fair value.

8. Leases

Lease arrangements where the risks and rewards incident to the ownership of an asset substantially vest with the lessor, are recognized as Operating leases. Lease rentals under operating leases are recognized in the Profit and Loss account on a straight-line basis over the lease term.

9. Employee Benefits

Short term employee benefits (benefits which are repayable within twelve months after the end of the period in which the employees render service) are measured at cost and are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services are rendered.

Contributions to Provident Fund, a defined contribution plan, are made in accordance with the statute and are recognized as an expense when employees have rendered service entitling them to the contributions.

Other long term employee benefits (benefits which are payable after the end of twelve months from the end of the year in which the employees render service) are measured on a discounted basis by the Projected Unit Credit Method on the basis of actuarial valuation. Actuarial gains and losses are recognized in the profit and loss account.

10. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when there is a present obligation 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 in respect of which a reliable estimate can be made.

Contingent liabilities are not provided for and are disclosed by way of notes.

Contingent assets are neither recognized, nor disclosed in the financial statements.

11. Foreign Currency Transactions

Transactions in foreign currencies are recorded at the exchange rates prevailing on the dates of transactions and in the case of purchase of material and sale of goods, the exchange gains/losses on the settlements during the year are changed to profit and loss account.

Monetary assets and liabilities denominated in foreign currencies are translated at the rates prevailing as on the date of Balance Sheet.

12. Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of such assets till such time as the asset is ready for its intended use or sale.

13. Taxation

Current tax is determined as the amount of tax payable in respect of taxable income of the year. Deferred tax for timing differences between the income as per the financial statement and income as per the Income tax Act 1961 is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date.

Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be created.

14. Impairment of Assets

Assets that are subject to impairment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset''s carrying amount exceeds its recoverable amount.

15. Earnings per Share

The earnings considered in ascertaining EPS comprises the Net Profit after tax. The numbers of shares used in computing the Basic EPS are the weighted average number of shares outstanding during the period.

For the purpose of calculating the diluted earnings 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 effect of all dilutive potential equity shares.

16. Cash flow statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payment. The cash flows from regular revenue generating investment and financing activities of the Company are segregated.

1. Basis of Preparation of Financial Statements

Financial statements are prepared on accrual basis under the historical cost convention in accordance with the Accounting Standards as notified by the Companies (Accounting Standards) Rules 2006 and the relevant provisions of the Companies Act, 1956.

2. Use of Estimates

The Preparation of financial statements, in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amount of revenue and expenses for the period.

Estimates are based on historical experience, where applicable and other assumptions that management believes are reasonable under the circumstances. Actual results could vary from these estimates and any such differences are dealt with in the period in which the results are known/materialize.

3. Fixed Assets

Fixed Assets are carried at cost less accumulated depreciation and impairment loss 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 which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

4. Depreciation

Depreciation on fixed assets is provided on Straight Line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act 1956.

5. Revenue Recognition

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

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

Revenue from traded goods is recognized on symbolic delivery. Significant risks and rewards incidental to ownership are transferred upon issuance of tax invoice and acknowledged by the customers.

Sales are net of sales returns and trade discounts. Export turnover includes related export benefits. Excise duty recovered is presented as a reduction from gross turnover.

6. Inventories

Cost of inventories, comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective location and condition.

Raw materials and work-in-progress are valued at cost using the weighted average cost method.

Finished goods produced and purchased are valued at cost or net realizable value whichever is lower. Excise duty in respect of finished goods awaiting dispatch is included in valuation of inventory.

Stores and spares and packing material are carried at cost, ascertained on weighted average basis. Necessary provision is made in the case of obsolete and non moving items.

7. Investments

Long-term investments are carried at cost less provision for other than temporary diminution in the carrying value of each investment. Current investments are stated at the lower of cost or quoted /fair value.

8. Leases

Lease arrangements where the risks and rewards incident to the ownership of an asset substantially vest with the lessor, are recognized as operating leases. Lease rentals under operating leases are recognized in the Statement of Profit and Loss on a straight-line basis over the lease term.

9. Employee Benefits

Short term employee benefits (benefits which are repayable within twelve months after the end of the period in which the employees render service) are measured at cost and are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

Contributions to Provident Fund, a defined contribution plan are made in accordance with the statute and are recognized as an expense when employees have rendered service entitling them to the contributions.

Other long term employee benefits (benefits which are payable after the end of twelve months from the end of the year in which the employees render service) are measured on a discounted basis by the Projected Unit Credit Method on the basis of actuarial valuation. Actuarial gains and losses are recognized in the profit and loss account.

10. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when there is a present obligation 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 in respect of which a reliable estimate can be made.

Contingent liabilities are not provided for and are disclosed by way of notes.

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

11. Foreign Currency Transactions

Transactions in foreign currencies are recorded at the exchange rates prevailing on the dates of transactions and in the case of purchase of material and sale of goods, the exchange gains/losses on the settlements during the year are changed to profit and loss account.

Monetary assets and liabilities denominated in foreign currencies are translated at the rates prevailing as on the date of Balance Sheet.

12. Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of such assets till such time as the asset is ready for its intended use or sale.

13. Taxation

Current tax is determined as the amount of tax payable in respect of taxable income of the year. Deferred tax for timing differences between the income as per the financial statement and income as per the Income tax Act 1961 is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date.

Deferred tax assets arising from the timing differences are recognized to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be created.

14. Impairment of Assets

Assets that are subject to impairment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets carrying amount exceeds the recoverable amount.

15. Earnings per share

The earnings considered in ascertaining EPS comprise the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the Period.

For the Purpose of calculating the diluted earnings 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 effect of all dilutive potential equity shares.

16. Cash flow statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payment. The cash flows from regular revenue generating investment and financing activities of the Company are segregated.

1. Basis of Preparation of Financial Statements

Financial statements are prepared on accrual basis under the historical cost convention in accordance with the Accounting Standards as notified by the Companies (Accounting Standards) Rules 2006 and the relevant provisions of the Companies Act, 1956.

2. Use of Estimates

The Preparation of financial statements, in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amount of revenue and expenses for the period.

Estimates are based on historical experience, where applicable and other assumptions that management believes are reasonable under the circumstances. Actual results could vary from these estimates and any such differences are dealt with in the period in which the results are known/materialize.

3. Fixed Assets

Fixed Assets are carried at cost less accumulated depreciation and impairment loss 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 which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

4. Depreciation

Depreciation on fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

5. Revenue Recognition

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

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

Revenue from traded goods is recognised on symbolic delivery. Significant risks and rewards incidental to ownership are transferred upon issuance of tax invoice and acknowledged by the customers.

Sales are net of sales returns and trade discounts. Export turnover includes related export benefits. Excise duty recovered is presented as a reduction from gross turnover.

6. Inventories

Cost of inventories, comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition.

Raw materials and work-in-progress are valued at cost using the weighted average cost method. Finished goods produced and purchased are valued at cost or net realizable value whichever is lower.

Excise duty in respect of finished goods awaiting dispatch is included in valuation of inventory.

Stores and spares and packing material are carried at cost, ascertained on weighted average basis. Necessary provision is made in the case of obsolete and non moving items.

7. Investments

Long-term investments are carried at cost less provision for other than temporary diminution in the carrying value of each investment. Current investments are stated at the lower of cost or quoted/fair value.

8. Leases

Lease arrangements where the risks and rewards incident to the ownership of an asset substantially vest with the lessor, are recognized as operating leases. Lease rentals under operating leases are recognized in the Profit and Loss account on a straight-line basis over the lease term.

9. Employee Benefits

Short term employee benefits (benefits which are repayable within twelve months after the end of the period in which the employees render service) are measured at cost and are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

Contributions to Provident Fund, a defined contribution plan are made in accordance with the statue and are recognized as an expense when employees have rendered service entitling them to the contributions.

Other long term employee benefits (benefits which are payable after the end of twelve months from the end of the year in which the employees render service) are measured on a discounted basis by the Projected Unit Credit Method on the basis of actuarial valuation. Actuarial gains and losses are recognized in the profit and loss account.

10. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made.

Contingent liabilities are not provided for and are disclosed by way of notes.

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

11. Foreign Currency Transactions

Transactions in foreign currencies are recorded at the exchange rates prevailing on the dates of transactions and in the case of purchase of material and sale of goods, the exchange gains/ losses on the settlements during the year are changed to profit and loss account.

Monetary assets and liabilities denominated in foreign currencies are translated at the rates prevailing on the date of Balance Sheet.

12. Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of such assets till such time as the asset is ready for its intended use or sale.

13. Taxation

Current tax is determined as the amount of tax payable in respect of taxable income of the year. Deferred tax for timing differences between the income as per the financial statement and income as per the Income Tax Act, 1961 is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date.

Deferred tax assets arising from the timing differences are recognized to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be created.

14. Impairment of Assets

Assets that are subject to impairment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets carrying amount exceeds the recoverable amount.

15. Earnings Per Share

The earnings considered in ascertaining EPS comprise the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the Period.

For the purpose of calculating diluted earnings 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 effect of all dilutive potential equity shares.

16. Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payment. The cash flows from regular revenue generating investment and financing activities of the Company are segregated.

1. Basis of Preparation of Financial Statements

Financial statements are prepared on accrual basis under the historical cost convention in accordance with the Accounting Standards as notified by the Companies (Accounting Standards) Rules 2006 and the relevant provisions of the Companies Act 1956..

2. Use of Estimates

The Preparation of financial statements, in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amount of revenue and expenses for the period.

Estimates are based on historical experience, where applicable and other assumptions that management believes are reasonable under the circumstances. Actual results could vary from these estimates and any such differences are dealt with in the period in which the results are known/materialize.

3. Fixed Assets

Fixed Assets are carried at cost less accumulated depreciation and impairment loss 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 which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

4. Depreciation

Depreciation on fixed assets is provided on Straight Line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act 1956.

5. Revenue Recognition

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

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

6. Inventories

Cost of Inventories, comprises of Cost of Purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition.

Raw Materials and Work-in-Progress are valued at cost using the weighted average cost method.

Finished Goods produced and purchased are valued at cost or net realizable value whichever is lower.

Excise duty in respect of finished goods awaiting despach is included in valuation of inventory.

Stores and Spares and packing material are carried at cost, ascertained on weighted average basis. Necessary provision is made in the case of obsolete and non moving items.

7. Investments

Long-term investments are carried at cost less provision for other than temporary diminution in the carrying value of each investment. Current investments are stated at the lower of cost or quoted /fair value.

8. Leases

Lease arrangements where the risks and rewards incident to the ownership of an asset substantially vest with the lessor, are recognized as operating leases. Lease rentals under operating leases are recognized in the Profit and Loss account on a straight-line basis over the lease term.

9. Employee Benefits

Short term employee benefits (benefits which are repayable within twelve months after the end of the period in which the employees render service) are measured at cost and are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

Contributions to Provident Fund, a defined contribution plan are made in accordance with the statue and are recognized as an expense when employees have rendered service entitiling them to the contributions.

Other long term employee benefits (benefits which are payable after the end of twelve months from the end of the year in which the employees render service) are measured on a discounted basis by the Projected Unit Credit Method on the basis of actuarial valuation.

Acturial gains and losses are recognized in the profit and loss account.

10. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made.

Contingent liabilities are not provided for and are disclosed by way of notes.

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

11. Foreign Currency Transactions

Transactins in foreign currencies are recorded at the exchange rates prevailing on the dates of transactions and in the case of purchase of material and sale of goods, the exchange gains/losses on the settlements during the year are changed to profit and loss account.

Monetary assets and liabilities denominated in foreign currencies are translated at the rates prevailing on the date of Balance Sheet.

12. Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of such assets till such time as the asset is ready for its intended use or sale.

13. Taxation

Current tax is determined as the amount of tax payable in respect of taxable income of the year. Deferred tax for timing differences between the income as per the financial statement and income as

per the Income tax Act 1961, is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date.

Deferred tax assets arising from the timing differences are recognized to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be created.

14. Impairment of Assets

Assets that are subject to impairment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets carrying amount exceeds the recoverable amount.

15. Earnings per share

The earnings considered in ascertaining EPS comprise the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the Period.

For the Purpose of calculating diluted earnings 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 effect of all dilutive potential equity shares.

16. Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payment. The cash flows from regular revenue generating investment and financing activities of the Company are segregated.

1. Basis of Preparation OF Financial Statements

Financial statements are prepared under the historical cost convention on accrual basis of accounting and in accordance with the generally accepted accounting principles in India.

2. Use of Estimates

The Preparation of financial statements, in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and tne reported amount of revenue and expenses for the period.

Estimates are based on historical experience, where applicable and other assumptions that management believes are reasonable under the circumstances. Actual results could vary from these estimates and any such differences are dealt with in the period in which the results are known/materialize.

3. Fixed Assets

Fixed Assets are carried at cost less accumulated depreciation and impairment loss 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 which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

4. Intangible Assets

Intangible assets are stated at cost of acquisition less accumulated amortization.

5. Depreciation and Amortization

Depreciation on fixed assets is provided on Straight Line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act 1956.

6. Revenue Recognition

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

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

7. Inventories

Items of Inventories are measured at lower of Cost or net realizable value after providing for obsolescence, if any. Cost of Inventories, comprises of Cost of Purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition. Cost of Raw materials, Stores and spares, Packing Materials, trading and other Products are determined on Weighted average basis. Work in process includes material cost and applicable direct overheads. Finished goods are valued at the aggregate of material cost and applicable direct and indirect overheads or market value whichever is lower.

8. Investments

Long-term investments are carried at cost less provision for other than temporary diminution in the carrying value of each investment. Current investments are stated at the lower of cost or quoted /fair value.

9. Leases

Lease arrangements where the risks and rewards incident to the ownership of an asset substantially vest with the lessor, are recognized as operating leases. Lease rentals under operating leases are recognized in the Profit and Loss account on a straight-line basis over the lease term.

10. Employee Benefits

a. Short term employee benefits are charged off at the undiscounted amount in the year in which related service is rendered.

b. i. The companys contribution to provident fund is recognized on accrual basis.

ii. Gratuity and Leave Encashment liability is provided on the basis of an actuarial valuation carried out at the end of each financial year.

11. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made.

Contingent liabilities are not provided for and are disclosed by way of notes.

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

12. Foreign Currency Transactions

Foreign Currency transactions are recorded at the rates prevailing on the date of transaction. Monetary assets and liabilities in foreign currency are translated at the period end rates. Exchange differences arising on settlement of transactions and translation of monetary items are recognized as income or expense.

Investments in the equity capital of companies registered outside India are carried in he Balance Sheet at the rates prevailing on the date of transaction.

13. Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of such assets till such time as the asset is ready for its intended use or sale.

14. Taxation

Current tax is determined as the amount of tax payable in respect of taxable income of the year. Deferred tax for timing differences between the income as per the financial statement and income as per the Income tax Act 1961, is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date.

Deferred tax assets arising from the timing differences are recognized to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be created.

15. Impairment of Assets

Assets that are subject to impairment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets carrying amount exceeds the recoverable amount.

16. Earnings per share

The earnings considered in ascertaining EPS comprise the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the Period.

For the Purpose of calculating diluted earnings 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 effect of all dilutive potential equity shares.

17. Cash flow statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payment. The cash flows from regular revenue generating investment and financing activities of the Company are segregated.