Accounting Policies of Siddheswari Garments Ltd. Company

Mar 31, 2024

II. Significant Accounting Policies

(a) Basis of preparation :

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under
the historical cost convention on the accrual basis except for certain financial instruments which are measured
at fair values, the provisions of the Companies Act , 2013 (''Act'') (to the extent notified) and guidelines issued by
the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read
with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting
Standards) Amendment Rules, 2016.

Accounting policies have been consistently applied except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting standard requires a change in the accounting policy
hitherto in use.

(b) Use of estimate :

The preparation of the financial statements in conformity with IndAS requires management to make estimates,
judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting
policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at
the date of the financial statements and reported amounts of revenues and expenses during the period.

(c) Revenue Recognition

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

a. In respect of Sales : When the significant risks and rewards of ownership of goods have been passed on
to the buyer, which generally coincides with delivery/shipment of goods to customers.

b. In respect of Interest Income : On time proportion basis taking into account the amount outstanding and
the rate applicable.

c. In respect of Service Income : When the services are performed as per contract.

d. In respect of Dividend Income : When right to receive payment is established.

Under IndAS 18, Excise duty will not be netted from revenue and shown as a part of expenses. Revenue from
product sales is recognized exclusive of Excise Duty, GST, Sales Tax/Value added Tax (VAT) and net of returns,
Sales Discount etc. Sales Returns are accounted for when goods are returned.

(d) Property, plant and Equipment’s

Capital Work in Progress, Plant and Equipment is stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. Such Cost includes the cost of replacing part of the plant and equipment
and borrowing costs for long term construction projects if the recognition criteria are met. When significant parts
of plant and equipment are required to be replaced at intervals, the company depreciates them separately based
on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the
carrying amount of the plant and equipment as a replacement if the recognition criteria is satisfied. All other
repair and maintenance costs are recognized in profit or loss as incurred. No decommissioning liabilities are
expected to be incurred on the assets of plant and equipment.

An item of Property, plant and equipment and any significant part initially recognized is derecognized upon
disposal or when no future economic benefits are expected from its use or disposal. Any Gain or Loss arising on
derecognition of the asset (calculated as the difference between the net disposal proceeds and carrying amount
of the asset) is included in the income statement when the asset is derecognized

(e) Inventories

Inventories are valued as under:

a. Raw Materials: At Cost or Net Realizable Value whichever is lower

b. Scrap are valued at estimated realizable value.

Cost includes all direct cost and applicable manufacturing and administrative overheads. Inventories are
valued on FIFO basis. Variation, if any, between books and physical stocks detected on physical verification,
obsolete & slow moving stocks are adjusted in accounts as found appropriate.

(f) Financial instruments

1. Initial recognition :

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual
provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition,
except for trade receivables which are initially measured at transaction price. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through
profit or loss are added to the fair value on initial recognition. Regular way purchase and sale of financial assets
are accounted for at trade date

2.Subsequent measurement :

(a) Non-derivative financial instruments

(i) Financial assets carried at amortized cost :

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

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

A financial asset is subsequently measured at fair value through other comprehensive income if it is held
within a business model whose objective is achieved by both collecting contractual cash flows and selling financial
assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding. The Company has made an irrevocable
election for its investments which are classified as equity instruments to present the subsequent changes in fair
value in other comprehensive income based on its business model. Further, in cases where the Company has
made an irrevocable election based on its business model, for its investments which are classified as equity
instruments, the subsequent changes in fair value are recognized in other comprehensive income

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

A financial asset which is not classified in any of the above categories are subsequently fair valued through
profit or loss.

(iv) Financial liabilities :

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except
for contingent consideration recognized in a business combination which is subsequently measured at fair value
through profit and loss. For trade and other payables maturing within one year from the Balance Sheet date, the
carrying amounts approximate fair value due to the short maturity of these instruments.

3. Derecognition of financial instruments :

The company derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and the transfer qualifies for derecognition under IndAS 109. A
financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when the
obligation specified in the contract is discharged or cancelled or expires.

(g) Impairment of Assets :

(a) Financial assets :

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant
financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected
credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant
increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of
expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the
amount that is required to be recognised is recognized as an impairment gain or loss in profit or loss.

(b) Non-financial assets

(i) Property, plant and equipment : Property, plant and equipment are evaluated for recoverability whenever
events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose
of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in¬
use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to
which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and
Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable
amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a
change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased
to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would
have been determined (net of any accumulated amortization or depreciation) had no impairment loss been
recognized for the asset in prior years

(h) Income Taxes :

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net
profit in the statement of profit and loss except to the extent that it relates to items recognized directly in equity,
in which case it is recognized in other comprehensive income.

Current income tax for current and prior periods is recognized at the amount expected to be paid to or
recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively
enacted by the balance sheet date. Deferred income tax assets and liabilities are recognized for all temporary
differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial
statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted
or substantively enacted by the balance sheet date and are expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on
deferred income tax assets and liabilities is recognized as income or expense in the period that includes the
enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is
probable that future taxable profit will be available against which the deductible temporary differences and tax
losses can be utilized. Deferred income taxes are not provided on the undistributed earnings of subsidiaries and
branches where it is expected that the earnings of the subsidiary or branch will not be distributed in the foreseeable
future. The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right
to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and
settle the liability simultaneously. The income tax provision for the interim period is made based on the best
estimate of the annual average tax rate expected to be applicable for the full financial year. Tax benefits of
deductions earned on exercise of employee share options in excess of compensation charged to income are
credited to share premium.

(i) Earnings per equity share :

The basic earnings per share ("EPS”) is computed by dividing the net profit after tax for the Year by the
weighted average number of equity shares outstanding during the Year. For the purpose of calculating diluted
earnings per share, net profit after tax for the Year and the weighted average number of shares outstanding
during the Year are adjusted with the effects of all dilutive potential equity shares. The dilutive potential equity
shares are deemed converted as of the beginning of the Year, unless they have been issued at a later date.

(j) Cash & cash Equivalents :

Cash and cash equivalents in the Balance sheet comprise cash on hand, cheques on hand, balance with
banks on current accounts and short term, highly liquid investments with an original maturity of three months or
less and which carry insignificant risk of changes in value.

(k) Cash Flow Statements :

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the Company are segregated.

(l) Employee benefits :

(a) Short Term &Post-Employment Benefits :

Employee benefits of short-term nature are recognized as expense as and when those accrue. Post
employments benefits are recognized as expenses based on actuarial valuation at Year end which takes into
account actuarial gains and losses.

The Company recognizes compensation expense relating to share-based payments in net profit using fair-
value in accordance with Ind AS 102, Share-Based Payment. The estimated fair value of awards is charged to
income on a straight-line basis over the requisite service period for each separately vesting portion of the award
as if the award was in-substance, multiple awards with a corresponding increase to share options outstanding
account.

---

Mar 31, 2014

A. Basis of Preparation

The Financial Statements have been prepared to comply in all material aspects with the Accounting Standards Notified by the Companies Accounting Standards Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies applied by the company are consistent with those used in the previous year, except for the change in accounting policy explained below.

B. Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon the management''s best knowledge of current events and actions, actual results could differ from these estimates.

C. Revenue Recognition

All Revenues / Incomes are recognized on accrual basis. Dividend Income on Investments is accounted for when the right to receive the payment is established.

D. Fixed Assets

Fixed Assets are stated at cost, less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

E. Depreciation

Depreciation is charged under Straight Line method in accordance with the rates and manner specified in schedule XIV of the companies Act, 1956.

No Depreciation has been provided for on plant & machinery during the year under audit as plant & Machinery are lying, idle in the company.

F. Expenses

All expenses are recognized on accrual basis.

G. Investments

Long Term Investments are stated at cost less provision for other than temporary dimunition in value.

H. Inventories:

a) Inventories of raw materials stores and spares are valued at or under cost.

b) Finished Goods Stock are valued at lower of standard cost or estimated realizable value.

c) Scraps are valued at estimated realizable value.

I. Gratuity

None of the employees was eligible to get the benefit under payment of Gratuity Act, 1972. None of the employees is entitled to leave encashment as they have availed the leave due to them.

J. Income taxes:

Tax expense comprises of current and deferred tax. Current income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. Deferred tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

The deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and laws that have been substantially enacted as of the balance Sheet date. Deferred tax asset is recognised only to the extent that there is reasonable certinity that sufficient future taxable income will be available against which such deferred tax asset can be realised. In situations where the company has unabsorbed depreciation or carry forard tax losses, all deferred tax assets are recognised only if there is virtual certinity supported by convincing evidence that they can be realised against future taxable profits.

At each Balance Sheet date the company re-assesses unrecognised deferred tax assets. It recognizes unrecognised deferred tax assets to the extent it has become reasonably certain or virtual certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realised.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a deffered tax asset to the extent that it no longer reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realised. Any such write -down is reversed to the that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

a) Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. In the event of Liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

b) Reconciliation of shares outstanding at the beginning and at the end of the reporting period

---

Mar 31, 2013

A. Basis of Preparation

The Financial Statements have been prepared to comply in all material aspects with the Accounting Standards Notified by the Companies Accounting Standards Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies applied by the company are consistent with those used in the previous year, except for the change in accounting policy explained below.

B. Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon the management''s best knowledge of current events and actions, actual results could differ from these estimates.

C. Revenue Recognition

All Revenues / Incomes are recognized on accrual basis. Dividend Income on Investments is accounted for when the right to receive the payment is established.

D. Fixed Assets

Fixed Assets are stated at cost, less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

E. Depreciation

Depreciation is charged under Straight Line method in accordance with the rates and manner specified in schedule XIV of the companies Act, 1956.

No Depreciation has been provided for on plant & machinery during the year under audit as plant & Machinery are lying idle in the company.

F. Expenses

All expenses are recognized on accrual basis.

G. Investments

Long Term investments are stated at cost less provision for other than temporary diminution in value.

---

Mar 31, 2012

A. Basis of Preparation

The financial statement have been prepared to company in all material aspects with the Accounting standards notified by the companies Accounting standards Rules 2006 (as amended) and the relevant provisions of the companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies applied by the company are consistent with those used in the previous year, except for the change in accounting policy explained below.

B. Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principle requires management to make estimates and assumptions to be made that effect the reported amount of assets and liabilities and disclosure of contingent liability at the date of the financial statements and the results of operations during the reporting period end Although these estimate are based upon the management best knowledge of current events and actions actual results could differ from these estimates.

C. Revenue Recognition

All Revenues/Income are recognized on accrual basis Dividend income on Investments is. accounted for when the right to receive the payment is established

D. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation and ration and impairment losses if any. comprises the purchase price and any a condition for its intended use.

E. Depreciation .

Depreciation is changed under straight Line method in accordance with the rates and manner specified in schedule XIV of the companies Act, 1956.

No Depreciation has been provided for on plant & Machinery are lying idle in the company.

F. Expenses

All expenses are recognized on accrual basis.

G. investments

Long Term Investments are stated at cost less provision for other than temporary diminution in value.

H. Inventories :

a) Inventories of raw material and spares are valued at or under cost.

b) Finished Goods Stock are valued at lower of standard cost or estimated realizable value.

c) Scups are valued at estimated realizable value.

I. Gratuity

None of the employees was eligible to get the benefit under payment of Gratuity Act, 1972. None of the employees is entitled to leave encashment as they have availed the leave due to them.

J. income taxes:

Tax expense comprises of current and deferred tax. Current income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. Deferred tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

The deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and laws that have been substantially enacted as of the balance Sheet date. Deferred tax asset is recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each Balance Sheet date the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent it has become reasonably certain or virtual certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The ''carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a differed tax asset to the extent that it no longer reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized. Any such write -down is reversed to the that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

(a) Terms/rights attached to equity shares

The company has only one class of equity shares having a per value of Rs.10/- per share Each holder of equity shares is entitled to one vote per share The company declared and pays dividends in India rupees. In the event of Liquidation of the company the holders of equity share will be entitled to receive remaining assets of the company after distribution of all preferential amount the distribution will be in proportion to the number of equity shares by the shareholders.

---

Mar 31, 2011

1. Basis of Accounting : The Company prepares its financial statements on accrual basis in accordance with the generally accepted accounting principles. However insurance claims are being accounted for as and when receive.

2. Investments

Investments are valued at their cost of acquisition.

3. Fixed Assists

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc.

4. Depreciation

a) Depreciation on Fixed Assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act. 1956 (as amended).

b) Depreciation on Fixed Assets added/disposed off during the year is provided on pro-rata basis

5. Inventories

a) Inventories of raw materials stores and spares are valued at our under cost.

b) Finished Goods Stock are valued at lower of standard cost or estimated realisable value.

c) Scraps are valued at estimated realizable value.

6. Miscellaneous Expenditure

The Preliminary and Share Issue expenses is being written off equally over a period of 10 years.

7. Retirement Benefits

The liability for Gratuity has not been provided since none of the employees has completed the continuous period of 5 years as stipulated under the payment of Gratuity Act. 1972.

8. Provision for Taxation

Provision for current income tax is made on the basis of the assessable income under the applicable Income Tax Act. The deferred income tax on account of timing differences between taxable income and accounting income for the year is accounted for by applying the tax rates and laws, enacted and substantially enacted as of the balance sheet date. Deferred tax assets are recognised and carried forwards to the extent that there is a reasonable certainty that sufficient denture taxable income will be available against which such deferred tax assets can be realised.

9. Information required by part IV to Schedule to the Companies Act. 1956 is enclosed as an annexure.

---

Mar 31, 2010

1. Basis of Accounting :

The Company prepares its financial statements on accrual basis in accordance with the generally accepted accounting principles. However insurance claims are being accounted for as and when receive.

2. Investments

Investments are valued at their cost of acquisition.

3. Fixed Assests

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc.

4. Depreciation

a) Depreciation on Fixed Assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act. 1956 (as amended).

b) Depreciation on Fixed Assets added/disposed off during the year is provided on pro-rata basis

5. Inventories

a) Inventories of raw materials stores and spares are valued at our under cost.

b) Finished Goods Stock are valued at lower of standard cost or extimated realisable value.

c) Scraps are valued at estimated realizable value.

6. Miscellaneous Expenditure

The Preliminary and Share Issue expenses is being written off equally over a period of 10 years.

7. Retirement Benefits

The liability for Gratuity has not been provided since none of the employees has completed the continuous period of 5 years as stipulated under the payment of Gratuity Act. 1972.

8. Provision for Taxation

Provision for current income tax is made on the basis of the assessable income under the applicable Income Tax Act. The deferred income tax on account of timing differences between taxable income and accounting income for the year is accountyed for by applying the tax rates and laws, enacted and substantially enacted as of the balance sheet date. Deferred tax assets are recognised and carried forwards to the extent that there is a reasonable certainty that sufficient duture taxable income will be available against which such deferred tax assets can be realised.

9. Information required by part IV to Schedule to the Companies Act. 1956 is enclosed as an annxure.

---

Mar 31, 2009

1. Basis of Accounting :

The Company prepares its financial statements on accrual basis in accordance with the generally accepted accounting principles. However insurance claims are being accounted for as and when receive.

2. Investments

Investments are valued at their cost of acquisition.

3. Fixed Assests

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc.

4. Depreciation

a) Depreciation on Fexed Assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act. 1956 (as amended).

b) Depreciation on Fixed Assets added/disposed off during the year is provided on pro-rata basis

5. Inventories

a) Inventories of raw materials stores and spares are valued at our under cost.

b) Finished Goods Stock are valued at lower of standard cost or extimated realisable value.

c) Scraps are valued at estimated realizable value.

6. Miscellaneous Expenditure

The Preliminary and Share Issue expenses is being written off equally over a period of 10 years.

7. Retirement Benefits

The liability for Gratuity has not been provided since none of the employees has completed the continuous period of 5 years as stipulated under the payment of Gratuity Act. 1972.

8. Provision for Taxation

Provision for current income tax is made on the basis of the assessable income under the applicable Income Tax Act. The deferred income tax on account of timing differences between taxable income and accounting income for the year is accountyed for by applying the tax rates and laws, enacted and substantially enacted as of the balance sheet date. Deferred tax assets are recognised and carried forwards to the extent that there is a reasonable certainty that sufficient duture taxable income will be available against which such deferred tax assets can be realised.

9. Information required by part IV to Schedule to the Companies Act. 1956 is enclosed as an Annexure.

---

Mar 31, 2008

1. Basis of Accounting :

The Company prepares its financial statements on accrual basis in accordance with the generally accepted accounting principles. However insurance claims are being accounted for as and when receive.

2. Investments

Investments are valued at their cost of acquisition.

3. Fixed Assests

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc.

4. Depreciation

a) Depreciation on Fexed Assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act. 1956 (as amended).

b) Depreciation on Fixed Assets added/disposed off during the year is provided on pro-rata basis

5. Inventories

a) Inventories of raw materials stores and spares are valued at our under cost.

b) Finished Goods Stock are valued at lower of standard cost or extimated realisable value.

c) Scraps are valued at estimated realizable value.

6. Miscellaneous Expenditure

The Preliminary and Share Issue expenses is being written off equally over a period of 10 years.

7. Retirement Benefits

The liability for Gratuity has not been provided since none of the employees has completed the continuous period of 5 years as stipulated under the payment of Gratuity Act. 1972.

8. Provision for Taxation

Provision for current income tax is made on the basis of the assessable income under the applicable Income Tax Act. The deferred income tax on account of timing differences between taxable income and accounting income for the year is accounted for by applying the tax rates and laws, enacted and substantially enacted as of the balance sheet date. Deferred tax assets are recognised and carried forwards to the extent that there is a reasonable certainty that sufficient duture taxable income will be available against which such deferred tax assets can be realised.

9. Information required by part IV to Schedule to the Companies Act. 1956 is enclosed as an Annexure.

---

Mar 31, 2007

1. Basis of Accounting :

The Company prepares its financial statements on accrual basis in accordance with the generally accepted accounting principles. However insurance claims are being accounted for as and when receive.

2. Investments

Investments are valued at their cost of acquisition.

3. Fixed Assests

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc.

4. Depreciation

a) Depreciation on Fexed Assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act. 1956 (as amended).

b) Depreciation on Fixed Assets added/disposed off during the year is provided on pro-rata basis

5. Inventories

a) Inventories of raw materials stores and spares are valued at our under cost.

b) Finished Goods Stock are valued at lower of standard cost or extimated realisable value.

c) Scraps are valued at estimated realizable value.

6. Miscellaneous Expenditure

The Preliminary and Share Issue expenses is being written off equally over a period of 10 years.

7. Retirement Benefits

The liability for Gratuity has not been provided since none of the employees has completed the continuous period of 5 years as stipulated under the payment of Gratuity Act. 1972.

8. Provision for Taxation

Provision for current income tax is made on the basis of the assessable income under the applicable Income Tax Act. The deferred income tax on account of timing differences between taxable income and accounting income for the year is accountyed for by applying the tax rates and laws, enacted and substantially enacted as of the balance sheet date. Deferred tax assets are recognised and carried forwards to the extent that there is a reasonable certainty that sufficient duture taxable income will be available against which such deferred tax assets can be realised.

9. Information required by part IV to Schedule to the Companies Act. 1956 is enclosed as an Annexure.

---

Mar 31, 2005

A) General

The accounts of the Company are prepared under the historical cost convention using the accrual method of accounting.

b) Fixed Assets :-

Fixed assets are stated at cost including taxes, freight and other incidental expenses incurred in relation to acquisition and installation of the same. MODVAT credit available under Central Excise Aci. 1944 and Custom Act. 1962 if any. arc excluded from the value of the fixed assets.

c) Depreciation :-

Depreciation on fixed assets have been provided on the Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 as amended

d) Capital work-in-progress :-

There is no capital work-in-progress.

e) Income Tax According to the Accounting standard 22

As there is no taxable profit therefore the provision for Income Tax has not been made.

f) The Company has only one business segment printing and its production facilities are located around Nagpur and business is scattered in entire India, business risks and returns with one product only. hence segment wise reporting is not necessary as specified in Accounting Standard 17

g) Investments :-

Investments are stated at cost.

h) Sales :-

Sales are recognised, net of returns, on despatch of goods to customers and arc reflected in the accounts at goss realisable value i.e. inclusive of Excise Duty, Sales Tax recovered is excluded

i) Employees Retirement Benefits -

Companys contribution to Provident Fund is charged to Profit and Loss Account. Provision for gratuity liability and for value of unutilized leave due to employees is not made on the basis of Actuarial valuation but is accounted for on actual payment basis.

J) Inventories :-

Raw materials, stores, spare parts, loose tools and equipment are valued at cost Finished products and stock-in-process are valued at lower of cost or market/net realisable value

k) Deferred Revenue Expenses

Preliminary and Share issue expenses are being amortised over a period often years.

---

Mar 31, 2003

21. SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Accounting

The Company prepares its financial statements on accrual basis in accordance with the generally accepted accounting principles. However insurance claims are being accounted for as and when receive.

2. Investments

Investments are valued at their cost of acquisition.

3. Fixed Assets

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc.

4. Depreciation.

a) Depreciation on Fixed Assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956 (as amended).

b) Depreciation on Fixed Assets added/disposed off during the year, is provided on pro-rata basis.

5. Inventories

a) Inventories of raw materials, stores and spares are valued at or under cost.

b) Finished Goods Stock are valued at lower of standard cost or estimated realisable value.

c) Scrap are valued at estimated realisable value.

6. Miscellaneous Expenditure

The preliminary and Share Issue Expenses is being written off equally over a period of 10 years.

7. Retirement Benefits

The liability for Gratuity has not been provided since none of the employee has completed the continuous period of 5 years as stipulated under the payment of Gratuity Act, 1972.

None of the employees is entitled to leave encashment as they have availed the leave due to them.

8. Provision for Taxation

Provision for current income tax is made on the basis of the assessable income under the applicable Income Tax Act. The deferred income tax on account of timing differences between taxable income and accounting income tor the year is accounted for by applying the tax rates and laws, enacted and substantially enacted as of the balance sheet date. Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

---

Mar 31, 2002

1. Basis of Accounting

The Company prepares its financial statements on accrual basis in accordance with the generally accepted accounting principles. However insurance claims are being accounted for as and when received.

2. Investments

Investments are valued at their cost of acquisition.

3. Fixed Assets

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc.

4. Depreciation

a) Depreciation on Fixed Assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956 (as amended).

b) Depreciation on Fixed Assets added/disposed off during the year, is provided on pro-rata basis.

5. Inventories

a) Inventories of raw materials, stores and spares are valued at or under cost.

b) Finished Goods Stock are valued at lower of standard cost or estimated realisable value.

c) Scrap are valued at estimated realisable value.

6. Miscellaneous Expenditure

The preliminary and Share Issue Expenses is being written off equally over a period of 10 years.

7. Retirement Benefits

The liability for Gratuity has not been provided since none of the employee has completed the continuous period of 5 years as stipulated under the payment of Gratuity Act, 1972.

None of the employees is entitled to leave encashment as they have availed the leave due to them.

8. Provision for Taxation

Provision for current income tax is made on the basis of the assessable income under the applicable Income Tax Act. The deferred income tax on account of timing differences between taxable income and accounting income for the year is accounted for by applying the tax rates and laws, enacted and substantially enacted as of the balance sheet date. Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

---

Mar 31, 2001

1. Basis of Accounting

The Company prepares its financial statements on accrual basis in accordance with the generally accepted accounting principles. However insurance claims are being accounted for as and when received.

2. Investments

Investments are valued at their cost of acquisition.

3. Fixed Assets

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc.

4. Depreciation

a) Depreciation on Fixed Assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956 (as amended).

b) Depreciation on Fixed Assets added/disposed off during the year, is provided on pro-rata basis.

5. Inventories

a) Inventories of raw materials, stores and spares are valued at or under cost.

b) Finished Goods Stock are valued at lower of standard cost or estimated realisable value.

c) Scrap are valued at estimated realisable value.

6. Miscellaneous Expenditure

The preliminary and Share Issue Expenses is being written off equally over a period of 10 years.

7. Retirement Benefits

The liability for Gratuity has not been provided since none of the employee has completed the continuous period of 5 years as stipulated under the payment of Gratuity Act, 1972.

None of the employees is entitled to leave encashment as they have availed the leave due to them.

---

Mar 31, 2000

1. Basis of Accounting

The Company prepares its financial statements on accrual basis in accordance with the generally accepted accounting principles.

2. Investments

Investments are valued at their cost of acquisition.

3. Fixed Assets

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc.

4. Depreciation

a) Depreciation on Fixed Assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956 (as amended).

b) Depreciation on Fixed Assets added/disposed off during the year is provided on pro-rata basis.

5. Inventories

a) Inventories of raw materials, stores and spares are valued at or under cost.

b) Finished Goods Stock are valued at lower of standard cost or estimated realisable value.

c) Scrap are valued at estimated realisable value.

6. Miscellaneous Expenditure

The preliminary and Share Issue Expenses is being written off equally over a period of 10 years.

7. Retirement Benefits

The liability for Gratuity has not been provided since none of the employee has completed the continuous period of 5 years as stipulated under the payment of Gratuity Act, 1972. None of the employees is entitled to leave encasement as they have availed the leave due to them.

---

Mar 31, 1999

1. Basis of Accounting

The Company prepares its financial statements on accrual basis in accordance with the generally accepted accounting principles.

2. Investments

Investments are valued at their cost of acquisition

3. Fixed Assets

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc.

4. Depreciation

a) Depreciation on Fixed Assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956 (as amended).

b) Depreciation on Fixed Assets added/disposed off during the year, is provided on pro-rata basis.

5. Inventories

a) Inventories of raw materials, stores and spares are valued at or under cost.

b) Finished goods stock are valued at lower of standard cost or estimated realisable value.

c) Scrap are valued at estimated realisable value.

6. Miscellaneous Expenditure

The preliminary and Share Issue Expenses is being written off equally over a period of 10 years. Deferred Revenue Expenditure is being written off equally over a period of 3 years.

7. Retirement Benefits

The liability for Gratuity has not been provided since none of the employee has completed the continuous period of 5 years as stipulated under the payment of Gratuity Act, 1972.

None of the employees is entitled to leave encashment as they have availed the leave due to them.

---

Mar 31, 1998

Details is not available in this Annual Report of 1998-99.

---

Mar 31, 1997

1. Basis of Accounting

The Company prepares its financial statements on accrual basis in accordance with the generally accepted accounting principles.

2. Investments

Investments are valued at their cost of acquisition.

3. Fixed Assets

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc.

4. Depreciation

a) Depreciation of Fixed Assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956 (as amended).

b) Depreciation on Fixed Assets added/disposed off during the year, is provided on pro-rata basis.

5. Inventories

a) Inventories of raw materials, stores and spares are valued at or under cost.

b) Finished goods stock are valued at lower of standard cost or estimated realisable value.

c) Scrap are valued at estimated realisable value.

6. Miscellaneous Expenditure

The preliminary and Share Issue Expenses is being written off equally over a period of 10 years. Deferred Revenue Expenditure is being written off equally over a period of 3 years.

7. Retirement Benefits

The liability for Gratuity has not been provided since none of the employee has completed the continuous period of 5 years as stipulated under the Payment of Gratuity Act, 1972.

None of the employees is entitled to leave encashment as they have availed the leave due to them.

---

Mar 31, 1996

1. Basis of Accounting:

The Company prepares its financial statements on accrual basis in accordance with the generally accepted accounting principles.

2. Investments:

Investments are valued at their cost of acquisition.

3. Fixed Assets

Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc.

Pre-operative Expenditure during construction pending allocation has been allocated to Factory Building and Plant & Machinery on commencement of commercial production.

4. Depreciation

a) Depreciation on Fixed Assets is provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956 (as amended).

b) Depreciation on Fixed Assets added/disposed off during the year, is provided on pro-rata basis.

5. Inventories

a) Inventories of raw materials, stores and spares are valued at or under cost.

b) Finished goods stock are valued at lower of standard cost or estimated realisable value.

c) Scrap are valued at estimated realisable value.

6. Miscellaneous Expenditure

The preliminary and Share Issue Expenses is being written off equally over a period of 10 years from the year under Audit.

Deferred Revenue Expenditure is being written off equally over a period of 3 year from the year under Audit.

7. Taxation The provision for taxation is based on the assessible profit determined under the Income Tax Act, 1961.

---

Mar 31, 1995

SIGNIFICANT ACCOUNTING POLICIES -------------------------------

i) Basic Accounting The Accounts have been prepared on the historical cost basis and follow Mercantile System of accounting

ii) Perliminary and Share Issue Expenses The Preliminary and Share Issue Expenses will be written off equally over a period of 10 years from the year of Commencement of Commercial Productions