Accounting Policies of Universal Office Automation Ltd. Company

Mar 31, 2025

2.2 Summary of material accounting policies

a. Revenue recognition

Interest income from bank deposits is recognised on the time proportion method taking into consideration the
amount outstanding and the effective interest rates.

Sale of scrap is recognized on disposal of scrap.

b. Income taxes

Tax expense recognised in the statement of profit and loss comprises the sum of deferred tax and current tax
not recognised in Other Comprehensive Income (OCI) or directly in equity.

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the
Income-tax Act, 1961. Current income tax relating to items recognised outside statement of profit and loss is
recognised outside statement of profit and loss (i.e. in OCI or equity depending upon the treatment of underlying

item).

Deferred tax liabilities are generally recognised in full for all taxable temporary differences. Deferred tax assets
are recognised to the extent that it is probable that the underlying tax loss, unused tax credits or deductible
temporary'' difference will be utilised against future taxable income. This is assessed based on the Company’s
forecast of future operating results, adjusted for significant non-taxable income and expenses and specific limits
on the use of any'' unused tax loss or credit. Unrecognized deferred tax assets are re-assessed at each reporting
date and arc recognised to the extent that it has become probable that future taxable profits will allow the
deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the
asset is realised or the liability is settled, based on tax rates (and tax laws) chat have been enacted or substantively
enacted at the reporting date. Deferred tax relating to items recognised outside the statement of profit and loss
is recognised outside statement of profit and loss (in OCI or equity depending upon the treatment of underlying
item).

c. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at hanks and on hand and short term deposits with
original maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

d. Financial instruments

Financial assets and financial liabilities arc recognised when the Company becomes a party to the contractual
provisions of a financial instrument

Financial assets

Initial recognition and measurement

Financial instruments arc recognised when the Company becomes a party to the contractual provisions of the
instrument and arc measured initially at fair value adjusted for transaction costs, except for those carried at fair
value through profit or loss which are measured initially at fair value.

If the Company determines that the fair value at initial recognition differs from the transaction price, the
Company accounts for that instrument at that date as follows:

i. at the measurement basis mentioned above if that fair value is evidenced by a quoted price in an active
market for an identical asset or liability (i.c. a level 1 input) or based on a valuation technique that uses only
data from observable markets. The Company recognises the difference between the fair value at initial
recognition and the transaction price as a gain or loss.

ii. in all other cases, at the measurement basis mentioned above, adjusted to defer the difference between the
fair value at initial recognition and the transaction price. After initial recognition, the Company recognises
that deferred difference as a gain or loss only to the extent that it arises from a change in a factor (including
time) that market participants would take into account when pricing the asset or liability.

Classification and subsequent measurement

For the purpose of subsequent measurement, financial assets are classified into the following categories upon

initial recognition: _

i. Financial assets at amortised cost - a financial instrument is measured at amortised cost if both the

following conditions arc met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that arc solely payments of principal
and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective
interest method.

ii. Financial assets at fair value

• Investments in equity instruments (other than subsidiaries/ associates/ joint ventures) - All equity
investments in scope of Ind AS 109 arc measured at fair value. Equity instruments which are held for trading
are generally classified at fair value through profit and loss (FVTPL). For all other equity instruments, the
Company decides to classify the same either at fair value through other comprehensive income (FVOCI) or
fair value through profit and loss (FVTPL). The Company makes such election on an instrument by
instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify^- an equity^- instrument as at FVOCI, then all fair value changes on the
instrument, excluding dividends, arc recognized in the other comprehensive income (OCI). There is no
recycling of the amounts from OCI to P&L, even on sale of investment However, the Company may-
transfer the cumulative gain or loss within equity. Dividends on such investments are recognised in profit
or loss unless the dividend clearly represents a recovery of part of the cost of the investment.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.

De-recognition of financial assets _

A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have expired or
the Company has transferred its rights to receive cash flows from the asset.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and transaction cost that is attributable to the
acquisition of the financial liabilities is also adjusted. These liabilities arc classified as amortised cost.

Subsequent measurement

Subsequent to initial recognition, all financial liabilities arc measured at amortised cost using the effective interest
method.

Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are
an integral part of the Effective Interest Rate (E1R). The effect of EIR amortisation is included as finance costs
in the statement of profit and loss.

De-recognition of financial liabilities _

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability arc substantially modified, such an exchange or modification is treated as the
de-recognition of the original liability^- and the recognition of a new liability. the difference in the respective
carrying amounts is recognised in the statement of profit or loss.

c. Fair value measurement

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

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

• In the principal market for the asset or liability’, or

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

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

f. Property, plant and equipment (‘PPE’)

Recognition and initial measurement

Property, plant and equipment arc stated at their cost of acquisition. The cost comprises purchase price,
borrowing cost if capitalisation criteria are met and directly attributable cost of bringing the asset to its working
condition for the intended use. Any trade discount and rebates arc deducted in arriving at the purchase price.
Subsequent costs arc included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable That future economic benefits associated with the item will flow to the Company and
definition of asset is met. All other repair and maintenance costs are recognised in the statement of profit or loss
as incurred.

In case an item of property, plant and equipment is acquired on deferred payment basis, interest expenses
included in deferred payment is recognised as interest expense and not included in cost of asset.

Subsequent measurement (depreciation and useful lives)

Depreciation is provided using written-down value method from the date the asset is available for use and is
computed on the basis of useful life as per technical assessment made by the management or as prescribed in
Schedule II to the Companies Act, 2013

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

De-recognition _ _

An item of property, plant and equipment and any significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on
de- recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in the statement of profit and loss when the asset is derecognised.

g. Impairment of assets

At each reporting date, the Company assesses whether there is any indication based on internal/cxtcrnal factors,
chat an asset may be unpaired. If any such indication exists, the Company estimates the recoverable amount of
the asset. The recoverable amount is higher of an asset’s fair value less costs of disposal and value in use. For
this purpose, assets are grouped at the lowest levels for which there arc separately identifiable cash inflows which
arc largely independent of the cash inflows from other assets or group of assets (cash generating units). If such
recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs
is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is
treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date,
there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is
reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical
cost and the same is accordingly reversed in the statement of profit and loss.

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Mar 31, 2024

2.2 Summary of material accounting policies

a. Revenue recognition

Interest income from bank deposits is recognized on the time proportion method taking into
consideration the amount outstanding and the effective interest rates.

Sale of scrap is recognized on disposal of scrap.

b. Income taxes

Tax expense recognized in the statement of profit and loss comprises the sum of deferred tax and
current tax not recognized in Other Comprehensive Income (OCI) or directly in equity.

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance
with the Income-tax Act, 1961. Current income tax relating to items recognized outside statement of
profit and loss is recognized outside statement of profit and loss (i.e. in OCI or equity depending upon the
treatment of underlying item).

Deferred tax liabilities are generally recognized in full for all taxable temporary differences. Deferred tax
assets are recognized to the extent that it is probable that the underlying tax loss, unused tax credits or
deductible temporary difference will be utilized against future taxable income. This is assessed based on
the Company''s forecast of future operating results, adjusted for significant non-taxable income and
expenses and specific limits on the use of any unused tax loss or credit. Unrecognized deferred tax assets
are re-assessed at each reporting date and are recognized to the extent that it has become probable that
future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date. Deferred tax relating to items recognized outside
the statement of profit and loss is recognized outside statement of profit and loss (in OCI or equity
depending upon the treatment of underlying item).

c. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with original maturities of three months or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value.

d. Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions of a financial instrument.

Financial assets

Initial recognition and measurement

Financial instruments are recognized when the Company becomes a party to the contractual provisions
of the instrument and are measured initially at fair value adjusted for transaction costs, except for those
carried at fair value through profit or loss which are measured initially at fair value.

If the Company determines that the fair value at initial recognition differs from the transaction price, the
Company accounts for that instrument at that date as follows:

i. at the measurement basis mentioned above if that fair value is evidenced by a quoted price in an active
market for an identical asset or liability (i.e. a level 1 input) or based on a valuation technique that uses
only data from observable markets. The Company recognizes the difference between the fair value at
initial recognition and the transaction price as a gain or loss.

ii. in all other cases, at the measurement basis mentioned above, adjusted to defer the difference
between the fair value at initial recognition and the transaction price. After initial recognition, the
Company recognises that deferred difference as a gain or loss only to the extent that it arises from a
change in a factor (including time) that market participants would take into account when pricing the
asset or liability.

Classification and subsequent measurement

For the purpose of subsequent measurement, financial assets are classified into the following
categories upon initial recognition:

i. Financial assets at amortized cost - a financial instrument is measured at amortized cost if both the
following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the
effective interest method.

ii. Financial assets at fair value

• Investments in equity instruments (other than subsidiaries/ associates/ joint ventures) - All equity
investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for
trading are generally classified at fair value through profit and loss (FVTPL). For all other equity
instruments, the Company decides to classify the same either at fair value through other comprehensive
income (FVOCI) or fair value through profit and loss (FVTPL). The Company makes such election on an
instrument by instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the other comprehensive income (OCI). There is no
recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may
transfer the cumulative gain or loss within equity. Dividends on such investments are recognised in
profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.

De-recognition of financial assets

A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have
expired or the Company has transferred its rights to receive cash flows from the asset.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognized initially at fair value and transaction cost that is attributable to the
acquisition of the financial liabilities is also adjusted. These liabilities are classified as amortized cost.

Subsequent measurement

Subsequent to initial recognition, all financial liabilities are measured at amortized cost using the
effective interest method.

Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that
are an integral part of the Effective Interest Rate (EIR). The effect of EIR amortization is included as finance
costs in the statement of profit and loss.

De-recognition of financial liabilities

A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the de-recognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognized in the statement of profit or loss.

e. Fair value measurement

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

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

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

• In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

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

f. Property, plant and equipment (''PPE'')

Recognition and initial measurement

Property, plant and equipment are stated at their cost of acquisition. The cost comprises purchase price,
borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its
working condition for the intended use. Any trade discount and rebates are deducted in arriving at the
purchase price. Subsequent costs are included in the asset''s carrying amount or recognized as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with the item
will flow to the Company and definition of asset is met. All other repair and maintenance costs are
recognized in the statement of profit or loss as incurred.

In case an item of property, plant and equipment is acquired on deferred payment basis, interest expenses
included in deferred payment is recognized as interest expense and not included in cost of asset.

Subsequent measurement (depreciation and useful lives)

Depreciation is provided using written-down value method from the date the asset is available for use
and is computed on the basis of useful life as per technical assessment made by the management or as
prescribed in Schedule II to the Companies Act, 2013

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

De-recognition

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 de-recognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in the statement of profit and loss when the asset is
derecognized.

g. Impairment of assets

At each reporting date, the Company assesses whether there is any indication based on internal/external
factors, that an asset may be impaired. If any such indication exists, the Company estimates the
recoverable amount of the asset. The recoverable amount is higher of an asset''s fair value less costs of
disposal and value in use. For this purpose, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other assets
or group of assets (cash generating units). If such recoverable amount of the asset or the recoverable
amount of the cash generating unit to which the asset belongs is less than its carrying amount, the
carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss
and is recognized in the statement of profit and loss. If at the balance sheet date, there is an indication
that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and
the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost and
the same is accordingly reversed in the statement of profit and loss.

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Jun 30, 2015

A. Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

b. Tangible fixed assets

Fixed assets are stated at cost/revalued amount where applicable, less depreciation. The cost comprises purchase price and directly attributable cost of bringing asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Land, Building, Plant & Machinery and Capital Work-in-Progress were revalued by a registered valuer as at 30th June, 1992 after considering depreciation upto that date on the governing principle of Current Replacement Cost and amount added on revaluation Rs. 146.12 lacs. Revaluation reserve was adjusted against goodwill created in a prior year on amalgamation and against sale/ surrender of land and building.

Fixed assets other than book value of land and building were technically evaluated and on the basis of useful lives and obsolescence Rs. 632.46 lacs was devalued and charged to the profit and loss account for the year ended October 31, 1997.

c. Depreciation on tangible fixed assets

Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act,2013.

d. Investments

Investments are stated at cost of acquisition, inclusive of expenditure incidental to acquisition. Long-term (non-trade) investments not held for immediate sale are valued at cost less permanent diminution in value, if any. Current investments are valued at lower of cost and fair/ market value in aggregate; Income from investments is recognised in the accounts in the year in which it is accrued.

e. Inventories

Finished goods are valued at lower of cost and net realisable value. Excise duty on finished goods is included in cost only if paid.

f. Revenue Recognition

Sale of scrap is recognized on disposal of scrap.

g. Income Taxes

Deferred tax assets as per Accounting Standard 22 has not been recognized and carried forward in view of absence of reasonable certainty about the sufficient future taxable income.

Minimum Alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax.

h. Earning per share

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

For the purpose of calculating diluted 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 adjusted for the effects of all dilutive potential equity shares.

i. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The company does not recognise a contingent liability but discloses its existence in the financial statements.

j. Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand.

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Mar 31, 2014

A. Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainity about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

b. Tangible fixed assets

Fixed assets are stated at cost/revalued amount where applicable, less depreciation. The cost comprises purchase price and directly attributable cost of bringing asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Land, Building, Plant & Machinery and Capital Work-in-Progress were revalued by a registered valuer as at 30th June, 1992 after considering depreciation upto that date on the governing principle of Current Replacement Cost and amount added on revaluation Rs. 146.12 lacs. Revaluation reserve was adjusted against goodwill created in a prior year on amalgamation and against sale/ surrender of land and building.

Fixed assets other than book value of land and building were technically evaluated and on the basis of useful lives and obsolescence Rs. 632.46 lacs was devalued and charged to the profit and loss account for the year ended October 31, 1997.

c. Depreciation on tangible fixed assets

Depreciation has been calculated under straight-line method on:

(a) Assets acquired prior to 1.5.1986 at the rates computed in the respective years of acquisition of those assets as per section 205(2)(b) of the Companies Act, 1956.

(b) Assets acquired on or after 1.5.1986 and before 16.12.1993 on a pro-rata basis at the rates specified in Schedule XIV of the Companies (Amendment) Act, 1988.

(c) Assets acquired on or after 16.12.1993 on a pro-rata basis at the rates specified in the notification GSR No. 756 E dated 16.12.1993 as per the Schedule XIV of the Companies Act, 1956.

d. Investments

Investments are stated at cost of acquisition, inclusive of expenditure incidental to acquisition. Long-term (non-trade) investments not held for immediate sale are valued at cost less permanent diminution in value, if any. Current investments are valued at lower of cost and fair/ market value in aggregate; Income from investments is recognised in the accounts in the year in which it is accrued.

e. Inventories

Finished goods are valued at lower of cost and net realisable value. Excise duty on finished goods is included in cost only if paid.

f. Revenue Recognition

Sale of scrap is recognized on disposal of scrap.

g. Income Taxes

Deferred tax assets as per Accounting Standard 22 has not been recognized and carried forward in view of absence of reasonable certainty about the sufficient future taxable income.

Minimum Alernate tax(MAT) paid in a year is charged to the statement of profit and loss as current tax.

h. Earning per share

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

For the purpose of calculating diluted 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 adjusted for the effects of all dilutive potential equity shares .

i. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The company does not recognise a contingent liability but discloses its existence in the financial statements

j. Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand.

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Mar 31, 2013

A. Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainity about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

b. Tangible fixed assets

Fixed assets are stated at cost/revalued amount where applicable, less depreciation. The cost comprises purchase price and directly attributable cost of bringing asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Land, Building, Plant & Machinery and Capital Work-in-Progress were revalued by a registered valuer as at 30th June, 1992 after considering depreciation upto that date on the governing principle of Current Replacement Cost and amount added on revaluation Rs. 146.12 lacs. Revaluation reserve was adjusted against goodwill created in a prior year on amalgamation and against sale/ surrender of land and building.

Fixed assets other than book value of land and building were technically evaluated and on the basis of useful lives and obsolescence Rs. 632.46 lacs was devalued and charged to the profit and loss account for the year ended October 31, 1997.

c. Depreciation on tangible fixed assets

Depreciation has been calculated under straight-line method on:

(a) Assets acquired prior to 1.5.1986 at the rates computed in the respective years of acquisition of those assets as per section 205(2)(b) of the Companies Act, 1956.

(b) Assets acquired on or after 1.5.1986 and before 16.12.1993 on a pro-rata basis at the rates specified in Schedule XIV of the Companies (Amendment) Act, 1988.

(c) Assets acquired on or after 16.12.1993 on a pro-rata basis at the rates specified in the notification GSR No. 756 E dated 16.12.1993 as per the Schedule XIV of the Companies Act, 1956.

d. Investments

Investments are stated at cost of acquisition, inclusive of expenditure incidental to acquisition. Long-term (non-trade) investments not held for immediate sale are valued at cost less permanent diminution in value, if any. Current investments are valued at lower of cost and fair/ market value in aggregate; Income from investments is recognised in the accounts in the year in which it is accrued.

e. Inventories

Finished goods are valued at lower of cost and net realisable value. Excise duty on finished goods is included in cost only if paid.

f. Revenue Recognition

Sale of scrap is recognized on disposal of scrap.

g. Income Taxes

Deferred tax assets as per Accounting Standard 22 has not been recognized and carried forward in view of absence of reasonable certainty about the sufficient future taxable income.

Minimum Alernate tax(MAT) paid in a year is charged to the statement of profit and loss as current tax.

h. Earning per share

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

For the purpose of calculating diluted 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 adjusted for the effects of all dilutive potential equity shares .

i. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The company does not recognise a contingent liability but discloses its existence in the financial statements

j. Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand.

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Mar 31, 2010

1. BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention on accrual basis. Duty drawbacks and insurance claims are accounted for as and when admitted by the respective authorities.

2. FIXED ASSETS

Fixed assets are stated at cost/ revalued amounts where applicable, less depreciation.

3. DEPRECIATION

Depreciation has been calculated under straight- line method on:

(a) Assets acquired prior to 1.5.1986 at the rates computed in the respective years of acquisition of those assets as per section 205(2)(b) of the Companies Act, 1956.

(b) Assets acquired on or after 1.5.1986 and before 16.12.1993 on a pro-rata basis at the rates specified in Schedule XIV of the Companies (Amendment) Act, 1988.

(c) Assets acquired on or after 16.12.1993 on a pro-rata basis at the rates specified in the notification GSR No. 756 E dated 16.12.1993 as per the Schedule XIV of the Companies Act, 1956.

4. INVESTMENTS

Investments are stated at cost of acquisition, inclusive of expenditure incidental to acquisition. Long-term (non-trade) investments not held for immediate sale, are valued at cost less permanent diminution in value, if any. Current investments are valued at lower of cost and fair/ market value in aggregate; Income from investments is recognised in the accounts in the year in which it is accrued.

5. INVENTORIES

Finished goods are valued at lower of cost and net realisable value. Excise duty on finished goods is included in cost only if paid.

6. REVENUE RECOGNITION

Sale of scrap is recognized on disposal of scrap.