Accounting Policies of STI Products India Ltd. Company

Mar 31, 2013

1.1 Basis pf Accounting The Financial statements have been prepared on accural basis expect where ever otherwise stated under the historical cost convection in accourdance with the accouting principles generally accepeted in indiaand complies with the accounting standards reffered to in the companys accounting standards rules 2006 isssued by the central government in exercise of the powers conferred undersubsection Ia of Section 642 and the relevant provisions of the Compan.es Act, 1956.

1.2 Revenue Recognition

A., expenses and revenue are accounted for on accrual basis except wherever stated otherwise.

1.3 Use of Estimates . .

The preparation of financial statements in conformity with the generally accepeted accounting prinancipal requires management make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of fininancial statements .

1.4 Fixed Asset and Depreciation:

Fixed Assets are stated at cost of acquisition / construction less accumulated depreciation and impairment bss cfsfincTudei.related expenditure and Pre-operative and Project expenses for the penod up to completion of construction /assets are putto use.

1.5 Impairment of Assets

The company idemtifies impair able assets based on cash generated unit concept at the year end in terms of paragraphs 5 to 13 accounting standard 28 for the purpose of arriving at impairment loss thereon if any being the diffrance between the book value and recoverablr value of relavent assets an impairment loss in recognized wherever the carrying amount of an assets its recoverable amount impaiment loss when crystallizes is charged against revenue of the year.

1.6 Taxation

i) Current tax is determined as the amount of tax payable in respect of taxable incomes for the year based on applicable tax rates and provisions.

ii Deferred tax is recognised on timing differences, being the difference between taxable Monies and SiSiSIS originate in one period and are capable of reversal on one or more subsequent Ss and is measured using tax rates that have been enacted or substantrvely enacted as on the Sheet date Where there is unabsorbed depreciation or carry forward losses, deferred tax if there is virtual certainty of realisation of such assets. Other defenedtax assets at recoginsed only to the extent there is reasonable certa.nty of realisation future. Deferred fax asseSSes are reviewed on yearly basis to reassess their realization or otherwise.

1.7 Contingent Liabilities

Disputed liabilities and claims against the Company including claims raised by various revenue authorities eg. sales tax income Tax etc) pending in appeal/court for which no reliable estimate can be made of the amount of the obligation or which are remotely poised for crystallization are not provded for in accounts but disclosed in Notes on Accounts.

However, present obligation as a result of past event with possibility of outflow of resources, when reliably estimable, is recognized in accounts. Contingring under long term borrowings short term borrowings and other current liablities are subject to confirent liablities as mat arise due to delayed non compliance of certain fiscal statutes Amount unascertainable (Previous Year-Amount Unascertainable).

b) The Company is in receipt of demand notice dated 2nd June 2008 of Rs. 1,62.097/-from ESI towards recoverd damage u/s 85(B) (2) of the ESI Act for the delayed payment of ESI Contributions for the period from April ''03 to September''03. The said liability, has not been considered in the accounts.

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Mar 31, 2012

1 SYSTEM OF ACCOUNTING

The Company follows the accrual system of accounting.

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Mar 31, 2011

1 SYSTEM OF ACCOUNTING The Company follows the accrual system of accounting.

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Mar 31, 2009

1 SYSTEM OF ACCOUNTING

The Company follows the accrual system of accounting.

2 FIXED ASSETS & DEPRECIATION

The Fixed assets are stated at cost.

3 PAYMENTS & BENEFITS TO EMPLOYEES:

The Companys contribution to Employees .Provident Fund and Employees State Insurance Schemes, are charged to Profit & Loss account. Provisions of AS-15 issued by ICAI is not applicable to the Company

4 BORROWING COST

Interest cost on funds borrowed and utilized for acquisition of qualifying assets being assets that necessarily takes substantial period of time to get ready for its intended use or sale is capitaliaed.

5 IMPAIRMENT OF FIXED ASSETS

Consideration is given at each balance sheet date to detemine whether there is any indication of impairment of the carrying amount of the companys fixed asset. An impairment -loss is recognized whenever the carrying amount of an asset exceeds recoverable amount.