Innovative Tyres & Tubes Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2025

1 SIGNIFICANT ACCOUNTING POLICIES:

(A) Basis of Accounting:

Financial statements have been prepared by the management of the company in consultation with the Resolution Professional of the Company. The financial statements are prepared as per historical cost convention and on going concern basis and comply with the applicable accounting standards specified under section 133 of the Companies Act, 2013 read with Rules 7 of the Companies(Accounts) Rules 2014.

(B) Property, Plant and Equipment:

i) Property, Plant and Equipments are recorded at cost of acquisition / construction less accumulated depreciation & impairment loss, if any, except for land which has been shown at revalued amount. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use, but excluding GST credit availed.

ii) In respect of fixed assets (other than capital work-in-progress) acquired during the year, depreciation is charged on a Straight Line Basis so as to write off the cost of the assets over the useful lives. In respect of fixed assets acquired prior to April 1, 2014, the carrying amount as on April 1, 2014 is depreciated over the remaining useful life. The useful life of the fixed assets has been adopted as prescribed under the Companies Act, 2013.

(C) Investments :

(i) Investments are Long-term, unless stated otherwise and are stated at cost except where there is diminution in value other than temporary, in which case a provision is made to the carrying value to recognise the diminution.

ii) In accordance with Accounting Standard - 23 ‘ Accounting for Investments in Associates in Consolidated Financial Statements’, issued by the Institute of Chartered Accountants of India, the Company is required to furnish Consolidated Financial Statements along with the accounts of M/s Halol Industries Environment & Infrastructure Ltd. where the shareholding of the company is more than 20% as at Balance Sheet date.

However, considering the long term restrictions imposed by M/s Halol Industries Environment & Infrastructure Ltd. on transfer of equity shares as well as the restriction on declarations on dividend, the company falls within the exemptions as stipulated in the AS-23. Consequently the Company is not required to prepare Consolidated Financial Statements. Therefore, the Company has not prepared Consolidated Financial Statement which is in line within AS-23.

(D) Inventories:

All Inventories are valued at lower of cost and net realisable value.

i) Raw materials, Packing materials, Stores and consumables are valued using First -in-First Out method. The cost of Raw materials, stores and consumables includes cost of purchases after adjusting for GST, direct expenses and other cost incurred in bringing the inventories to their present location and condition.

ii) Work in Progress goods has been identified as such depending upon stage of completion of finished goods technically determined by the management. Work in Progress goods are valued at raw materials cost as calculated above including appropriate proportion of cost of conversion to the extent of stage of progress or net realisable value , whichever is less and certified by the management.

iii) Finished goods are valued at lower of cost or net realisable value. Finished goods are valued at cost of production, including appropriate proportion of allocable cost.

iv) Scrap is valued at net Realisable Value.

(E) Revenue from Operations:

i) Sale of products are recognised when risk and rewards of ownership of the products are passed on to the customers, which is generally on dispatch of goods. Sales are net of Sales return and Goods & Service Tax.

ii) Export benefits available under prevalent schemes are accounted on entitlement basis.

iii) Service Income is recognised on completion of job work and are shown net of claims.

(F) Foreign Currency Transactions :

i) Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

ii) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.

iii) The difference in translation of monetary assets and liabilities and realized gains and losses on foreign exchange transactions are recognised in the Profit and Loss Account.

(G) Employee Benefits:

(a) Short term employee benefits

All employee Benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as Salaries, wages, and short term compensated absences etc. is recognised in the period in which the employee renders the related service.

(b) Post Employment Benefits:

i. Defined Contribution Plans :

Define contribution plans are post employment benefit plans under which the company pays fixed contributions into separate entities (fund) or to financial institutions or state managed benefit schemes. The Company operates defined contribution plans pertaining to Provident Fund, Employees state Insurance, Pension Fund Scheme for eligible employees. The Company contribution to defined contribution plans are recognised in the profit and loss account in the financial year to which they relate.

ii. Defined Benefit Plans:

The gratuity liabilities are funded partly with the Life Insurance Corporation of India with a recognized fund, which is administered by the trustees. The Company provides for gratuity liability payable on retirement on the basis of Actuarial Valuation as at the year end and the same is charged to profit and loss account under head Employees Cost.

The Company provides for accumulated leave liability payable on retirement on the basis of Actuarial Valuation as at the year end and the same is charged to profit and loss account under head Employees Cost.

(H) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

(I) Earnings per share :

Basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year, by the weighted average number of equity shares outstanding during the year. (Including diluted potential equity shares in case of diluted EPS)

(J) Taxes on Income:

i) Provision for taxation is made on the basis of the estimated taxable income for the current Accounting period in accordance with provision of the Income Tax Act, 1961.

ii) The benefit of credit against the payment made towards MAT for the earlier years is available in accordance with the provisions of section 115J (AA) of income tax act 1961 over a period of subsequent 15 assessment years and it is recognised to the extent of deferred tax liability in view of the certainty involved of its realisation against reversal of deferred tax liability.

iii) In accordance with Accounting Standard - 22 ‘ Accounting for Taxes on Income’, issued by the Institute of Chartered Accountants of India, the Deferred Tax for timing differences between the book profit and tax profit for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the

iv) Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets will be realized in future. In situations, where the company has un absorbed depreciation and carry forward losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidences, that the same can be realised against future taxable profits.

(K) Segment Reporting :

There is no separate reportable primary segment as per Accounting Standards 17, as most of the operations are related to only one Segment viz. Tyres & Tubes.

(L) Impairment of Assets :

A Property, Plant and Equipment is treated as impaired when the carrying cost of assets exceeds its recoverable value. An Impairment Loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The Impairment Loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(M) Provisions, Contingent Liabilities and Contingent Assets :

Provisions are recognised only when there is a present obligation as a result of past event and when a reliable estimate of the amount of the obligation can be made. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by the future events not wholly within the control of the company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation can not be made. Contingent Assets are not recognised in the financial statements.

(N) Use of Estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of Assets and Liabilities (including Contingent Liabilities) as of the date of the financial statements and the reported income and expenses during the reported period. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could, however, differ from these estimates. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised

(O) Government grants

Government grants are recognised:

(a) where there is reasonable assurance that the company will comply with the conditions attached to them and

(b) where such benefits have been earned by the company and ultimate collection is reasonably certain.

(P) Leases Operating lease

Payments are recognised as expenditure in the Statement of Profit and Loss on a straight-line basis over the lease term.

Finance Lease

The lower of the fair value of the assets and present value of the minimum lease rentals is capitalised as Fixed Assets with corresponding amount disclosed as lease liability. The principal component in the lease rental is adjusted against the lease liability and the interest component is charged to Profit and Loss Statement.

(Q) CORPORATE INSOLVENCY RESOLUTION PROCESS

An application was filed for the initiation of Corporate Insolvency Resolution Process (“CIRP”) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) against Innovative Tyres & Tubes Limited (“the Company”) before the Hon''ble National Company Law Tribunal, Ahmedabad Bench (“NCLT”), with a prayer to commence the CIRP. The Hon''ble NCLT vide its order dated 28th March 2022 admitted the said application for initiation of CIRP against the Company. Further, the Hon’ble NCLT gave orders for the appointment of Mr. Abhishek Nagori as the Interim Resolution Professional (“IRP”) to perform all the functions as per the IBC and that the management of the Company shall vest in the IRP. The NCLT order also provided for a moratorium with effect from 28th March 2022 till the completion of the CIRP under the IBC, or until the Hon’ble NCLT approves the resolution plan or passes an order for liquidation of the company, whichever is earlier. Further, In the ongoing CIRP of the Corporate Debtor, the Resolution Professional (RP) with the approval of Committee of Creditors (CoC) invited the Expression of Interest (EOI) in Form G on 31.10.2022 from the Potential Resolution Applicants (PRAs) to submit the Resolution Plan. Thereafter, the RP has received Resolution Plans from the Resolution Applicants. Subsequently, the CoC has approved the Resolution Plan submitted by Resolution Applicant in the 12th meeting held on 31.12.2022 and the said Resolution Plan has also been submitted to the honourable NCLT for approval. Further, In the ongoing CIRP of the Corporate Debtor, the Resolution Plan submitted on 31-12-2022 by M/s Ten on Ten Rubtech Private Limited was approved by Hon’ble NCLT vide order dated 09.08.2023. Accordingly, the Company has come out from the Corporate Insolvency Resolution Process (CIRP). Therefore, as per the order of Hon’ble NCLT, a Monitoring Committee has been constituted on 16-08-2023 to monitor the implementation of Approved resolution Plan and progress thereof.

As per the Honourable NCLT’s order dated 9th August, 2023, the promoter’s shareholding was stated as 35,06,104 (representing 19.49%) equity shares and public shareholding as 1,44,85,457(representing 80.51%) equity share of Rs. 10/- each respectively whereas the actual shareholding on 9th August 2023, the promoter’s shareholding was 25,19,104 (representing 14.00%) equity shares and public shareholding was 1,54,72,457 (representing 86.00%) equity share of Rs. 10/- each respectively. This discrepancy was because one of the promoters group has sold 9,87,000 (representing 5.49%) during CIRP period. Because of this discrepancy, the Company could not cancel promoter’s shareholding and reduce public shareholding to 5,10,000 equity shares as per the NCLT Order.

Considering above situation an Interlocutory Application was filed by the Chairman of Monitoring Committee appointed for implementation of the Resolution Plan, before Honourable NCLT, Ahmedabad on dated 1st November, 2023 for modifying the stipulation of cancellation of equity share capital of promoter shareholders and reduction of equity share capital of the public shareholders which was rejected hence again a separate interlocutory application was filed on 8th March 2024 and the application was approved by the Honourable NCLT, Ahmedabad on 04th June 2024. Thereby the company has made allotment of 94,55,000 equity shares to the promoter M/s Ten on Ten Rubtech Pvt Ltd., and extinguished old promoters’ 25,19,104 equity shares and the remaining 1,54,72,457 shares were reduced to 5,45,000 equity shares in the ratio of 3.52:100 as mentioned in the Honourable NCLT, Ahmedabad Order dated 04th June, 2024.

The new shares were subsequently listed on 02 Dec 2024 at National Stock Exchange SME Platform and trading was also commenced.

As per the Honourable NCLT’s order dated 09-08-2023, the company was required to make payment to creditors as per implementation schedule. The Company has made the payments due as per the of implementation schedule of the Resolution Plan. However, an amount of Rs. 4.71 lacs Could not be paid to creditor and employees for want of their banking details. This amount has remained deposited with special account maintained by the Resolution Applicant M/s Ten on Ten Pvt Ltd. Subsequent to that the amount has been kept as Fixed deposit by the resolution applicant as per the decision of the monitoring committee.

---

Mar 31, 2024

1 SIGNIFICANT ACCOUNTING POLICIES:

(A) Basis of Accounting:

Financial statements have been prepared by the management of the company. The financial statements are prepared as per
historical cost convention and on going concern basis and comply with the applicable accounting standards specified under
section 133 of the Companies Act. 2013 read with Rules 7 of the Companies(Accounts) Rules 2014.

(B) Property, Plant and Equipment

i) Property. Plant and Equipments are recorded at cost of acquisition / construction less accumulated depreciation &
impairment loss, if any. except for land which has been shown at revalued amount Cost comprises of the purchase price and
any attributable cost of bnnging the assets to its wo hung condition for its intended use, but excluding GST credit availed

8) In respect of fixed assets (other than capital work-in-progress) acquired dunng the year, depreciation is charged on a
Straight Line Basis so as to write off the cost of the assets over the useful lives In respect of fixed assets acquired phor to
April 1, 2014, the carrying amount as on April 1, 2014 is depreciated over the remaining useful life The useful life of the fixed
assets has been adopted as prescribed under the Companies Act. 2013

(C) Investments :

(i) Investments are Long-term, unless stated otherwise and are stated at cost except where there is diminution in value other
than temporary, in which case a provision is made to the carrying value to recognise the diminution.

8) In accordance with Accounting Standard - 23 '' Accounting for Investments in Associates in Consolidated Financial
Statements'', issued by the Institute of Chartered Accountants of India, the Company is required to furnish Consolidated
Financial Statements alongwith the accounts of M/s Halol Industries Environment & Infrastructure Ltd where the shareholding
of the company is more than 20% as at Balance Sheet date

However, considering the long term restrictions imposed by M/s Halol Industnes Environment & Infrastructure Ltd on transfer
of equity shares as well as the restriction on declarations on dividend, the company falls within the exemptions as stipulated in
the AS-23 Consequently the Company is not required to prepare Consolidated Financial Statements Therefore, the
Company has not prepared Consolidated Financial Statement which is in line within AS-23

(0) Inventories:

All Inventories are valued at lower of cost and net realisable value

i) Raw matenals, Packing matenals. Stores and consumables are valued using First -in-First Out method The cost of Raw
materials, stores and consumables includes cost of purchases after adjusting for GST, direct expenses and other cost
incurred in bnnging the inventories to their present location and condition.

ii) Work in Progress goods has been identified as such depending upon stage of completion of finished goods technically
determined by the management Work in Progress goods are valued at raw matenals cost as calculated above including
appropriate proportion of cost of conversion to the extent of stage of progress and certified by the management

Hi) Finished goods are valued at lower of cost or net realisable value Finished goods are valued at cost of production,
including appropriate proportion of allocable cost

iv) Scrap is valued at net Realisable Value

(E) Revenue from Operations:

I) Sale of products are recognised when risk and rewards of ownership of the products are passed on to the customers, which
is generally on dispatch of goods Sales are net of Sales return and Goods & Service Tax

ii) Export benefits available under prevalent schemes are accounted on entitlement basis,
in) Service Income is recognised on completion of job work and are shown net of claims

(F) Foreign Currency Transactions :

i) Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign currency at the date of the transaction.

H) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are
translated at year end rates

iii) The difference in translation of monetary assets and liabilities and realized gams and losses on foreign exchange _

transactions are recognised in the Profit and Loss Account.

(G| Employee Benefits:

(a) Short term employee benefits

All employee Benefits payable wholly within twelve months of rendering the service are classified as short term employee
benefits. Benefits such as Salaries, wages, and short term compensated absences etc. is recognised in the period in which
the employee renders the related service.

(b) Post Employment Benefits:

I. Defined Contribution Plans :

Define contribution plans are post employment benefit plans under which the company pays fixed contributions into separate
entities (fund) or to financial institutions or state managed benefit schemes The Company operates defined contribution plans
pertaining to Provident Fund. Employees state Insurance. Pension Fund Scheme for eligible employees The Company
contribution to defined contribution plans are recognised in the profit and loss account m the financial year to which they relate

II. Defined Benefit Plans:

The gratuity liabilities are funded partly with the Life Insurance Corporation of India with a recognized fund, which is
administered by the trustees The Company provides for gratuity liability payable on retirement on the basis of Actuarial
Valuation as at the year end and the same is charged to profit and loss account under head Employees Cost
The Company provides for accumulated leave liability payable on retirement on the basis of Actuarial Valuation as at the year
end and the same is charged to profit and loss account under head Employees Cost

(H) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of
such assets A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use All
other borrowing costs are charged to revenue

(I) Earnings per share :

Basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year, by
the weighted average number of equity shares outstanding during the year (Including diluted potential equity shares in case

of diluted EPS)

(J) Taxes on Income:

i) Provision for taxation is made on the basis of the estimated taxable income for the current Accounting period in accordance
with provision of the Income Tax Act. 1961.

B) The benefit of credit against the payment made towards MAT for the eariier years is available in accordance with the
provisions of section 115J (AA) of income tax act 1961 over a period of subsequent 15 assessment years and it is recognised
to the extent of deferred tax liability in view of the certainty involved of its realisation against reversal of deferred tax liability

Bi) In accordance with Accounting Standard - 22 '' Accounting for Taxes on Income'', issued by the Institute of Chartered
Accountants of India, the Deferred Tax for timing differences between the book profit and tax profit for the year is accounted
for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date

iv) Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that
the assets will be realized in future. In situations, where the company has un absorbed depreciation and carry forward losses,
deferred tax assets are recognised only if there is virtual certainty supported by convincing evidences, that the same can be
realised against future taxable profits.

(K) Segment Reporting :

There is no separate reportable pnmary segment as per Accounting Standards 17. as most of the operations are related to
only one Segment viz. Tyres & Tubes

(L) Impairment of Assets :

A Properly, Plant and Equipment is treated as impaired when the carrying cost of assets exceeds its recoverable value An
Impairment Loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The
Impairment Loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable
amount

---

Mar 31, 2023

1 SIGNIFICANT ACCOUNTING POLICIES:

(A) Basis of Accounting:

Financial statements have been prepared by the management of the company in consultation with the Resolution Professional of the

Company. The financial statements are prepared as per historical cost convention and on going concern basis and comply with the

applicable accounting standards specified under section 133 of the Companies Act, 2013 read with Rules 7 of the Companies(Accounts)

Rules 2014.

(B) Property, Plant and Equipment:

i) Property, Plant and Equipments are recorded at cost of acquisition / construction less accumulated depreciation & impairment
loss, if any, except for land which has been shown at revalued amount. Cost comprises of the purchase price and any attributable
cost of bringing the assets to its working condition for its intended use, but excluding GST credit availed.

ii) In respect of fixed assets (other than capital work-in-progress) acquired during the year, depreciation is charged on a Straight
Line Basis so as to write off the cost of the assets over the useful lives. In respect of fixed assets acquired prior to April 1,2014,
the carrying amount as on April 1,2014 is depreciated over the remaining useful life. The useful life of the fixed assets has been
adopted as prescribed under the Companies Act, 2013.

(C) Investments :

(i) Investments are Long-term, unless stated otherwise and are stated at cost except where there is diminution in value other than
temporary, in which case a provision is made to the carrying value to recognise the diminution.

ii) In accordance with Accounting Standard - 23 '' Accounting for Investments in Associates in Consolidated Financial Statements'',
issued by the Institute of Chartered Accountants of India, the Company is required to furnish Consolidated Financial Statements
alongwith the accounts of M/s Halol Industries Environment & Infrastructure Ltd. where the shareholding of the company is
more than 20% as at Balance Sheet date.

However, considering the long term restrictions imposed by M/s Halol Industries Environment & Infrastructure Ltd. on transfer
of equity shares as well as the restriction on declarations on dividend, the company falls within the exemptions as stipulated in
the AS-23. Consequently the Company is not required to prepare Consolidated Financial Statements. Therefore, the Company
has not prepared Consolidated Financial Statement which is in line within AS-23.

(D) Inventories:

All Inventories are valued at lower of cost and net realisable value.

i) Raw materials, Packing materials, Stores and consumables are valued at cost using First -in-First Out method. The cost of Raw
materials, stores and consumables includes cost of purchases after adjusting for GST, direct expenses and other cost incurred in
bringing the inventories to their present location and condition. : Cost is determined on moving weighted average

ii) Work in Progress goods has been identified as such depending upon stage of completion of finished goods technically
determined by the management. Work in Progress goods are valued at raw materials cost as calculated above including
appropriate proportion of cost of conversion to the extent of stage of progress and certified by the management.

iii) Finished goods are valued at lower of cost or net realisable value. Finished goods are valued at cost of production, including
appropriate proportion of allocable cost.

iv) Scrap is valued at net Realisable Value.

(E) Revenue from Operations:

i) Sale of products are recognised when risk and rewards of ownership of the products are passed on to the customers, which is
generally on dispatch of goods. Sales are net of Sales return and Goods & Service Tax.

ii) Export benefits available under prevalent schemes are accounted on entitlement basis.

iii) Service Income is recognised on completion of job work and are shown net of claims.

(F) Foreign Currency Transactions :

i) Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange
rate between the reporting currency and the foreign currency at the date of the transaction.

ii) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated
at year end rates.

iii) The difference in translation of monetary assets and liabilities and realized gains and losses on foreign exchange transactions are
recognised in the Profit and Loss Account.

(G) Employee Benefits:

(a) Short term employee benefits

All employee Benefits payable wholly within twelve months of rendering the service are classified as short term employee
benefits. Benefits such as Salaries, wages, and short term compensated absences etc. is recognised in the period in which the
employee renders the related service.

(b) Post Employment Benefits:

i. Defined Contribution Plans :

Define contribution plans are post employment benefit plans under which the company pays fixed contributions into
separate entities (fund) or to financial institutions or state managed benefit schemes. The Company operates defined
contribution plans pertaining to Provident Fund, Employees state Insurance, Pension Fund Scheme for eligible employees.
The Company contribution to defined contribution plans are recognised in the profit and loss account in the financial year
to which they relate.

ii. Defined Benefit Plans:

The gratuity liabilities are funded partly with the Life Insurance Corporation of India with a recognized fund, which is
administered by the trustees. The Company provides for gratuity liability payable on retirement on the basis of Actuarial
Valuation as at the year end and the same is charged to profit and loss account under head Employees Cost.

The Company provides for accumulated leave liability payable on retirement on the basis of Actuarial Valuation as at the
year end and the same is charged to profit and loss account under head Employees Cost.

(H) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such
assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing
costs are charged to revenue.

(I) Earnings per share :

Basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year. (Including diluted potential equity shares in case of diluted
EPS)

(J) Taxes on Income:

i) Provision for taxation is made on the basis of the estimated taxable income for the current Accounting period in accordance with
provision of the Income Tax Act, 1961.

ii) The benefit of credit against the payment made towards MAT for the earlier years is available in accordance with the provisions
of section 115J (AA) of income tax act 1961 over a period of subsequent 15 assessment years and it is recognised to the extent
of deferred tax liability in view of the certainty involved of its realisation against reversal of deferred tax liability.

iii) In accordance with Accounting Standard - 22 '' Accounting for Taxes on Income'', issued by the Institute of Chartered Accountants
of India, the Deferred Tax for timing differences between the book profit and tax profit for the year is accounted for using the tax
rates and laws that have been enacted or substantively enacted as of the balance sheet date.

iv) Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that
the assets will be realized in future. In situations, where the company has un absorbed depreciation and carry forward losses,
deferred tax assets are recognised only if there is virtual certainty supported by convincing evidences, that the same can be
realised against future taxable profits.

(K) Segment Reporting :

There is no separate reportable primary segment as per Accounting Standards 17, as most of the operations are related to only one
Segment viz. Tyres & Tubes.

(L) Impairment of Assets :

A Property, Plant and Equipment is treated as impaired when the carrying cost of assets exceeds its recoverable value. An Impairment
Loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The Impairment Loss recognized
in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

---

Mar 31, 2018

I . SIGNIFICANT ACCOUNTING POLICIES:

A. Basis of Accounting:

The financial statements are prepared as per historical cost convention and on going concern basis and comply with the applicable accounting standards specified under section 133 of the Companies Act, 2013 read with Rules 7 of the Companies(Accounts) Rules 2014.

B. Property, Plant and Equipment:

i) Property, Plant and Equipment are recorded at cost of acquisition / construction less accumulated depreciation & impairment loss, if any. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use, but excluding CENVAT / Service Tax / VAT /GST credit availed.

ii) In respect of fixed assets (other than and capital work-in-progress) acquired during the year, depreciation is charged on a Straight Line Basis so as to write off the cost of the assets over the useful lives. In respect of fixed assets acquired prior to April 1, 2014, the carrying amount as on April 1, 2014 is depreciated over the remaining useful life. The useful life of the fixed assets has been adopted as prescribed under the Companies Act, 2013.

C. Investments :

Investments are Long-term, unless stated otherwise and are stated at cost except where there is diminution in value other than temporary, in which case a provision is made to the carrying value to recognize the diminution.

D. Inventories:

All Inventories are valued at lower of cost and net realizable value.

i) Raw materials, Packing materials, Stores and consumables are valued at cost using First -in-First Out method. The cost of Raw materials, stores and consumables includes cost of purchases after adjusting for CENVAT / VAT, direct expenses and other cost incurred in bringing the inventories to their present location and condition.

ii) Work in Progress goods has been identified as such depending upon stage of completion of finished goods technically determined by the management. Work in Progress goods are valued at raw materials cost as calculated above plus weighted average cost of production including appropriate proportion of cost of conversion to the extent of process, which is estimated and certified by the management.

iii) Finished goods are valued at lower of cost or net realisable value. Finished goods are valued based on weighted average cost of production, including appropriate proportion of cost of conversion. Excise duty is included in the value of finished goods inventory upto its applicability.

iv) Scrap is valued at net Realizable Value.

E. Revenue from Operations:

i) Sale of products are recognized when risk and rewards of ownership of the products are passed on to the customers, which is generally on dispatch of goods. Sales are inclusive of excise duty, upto 30^th June 2017 but net of sales return, Service tax, Sales Tax and Goods & Service Tax.

ii) Export benefits available under prevalent schemes are accounted on entitlement basis.

iii) Service Income is recognized on completion of job work and are shown net of claims.

iv) Inter Unit job processing was recognized as revenue and expenditure until the previous year. No such revenue or expenditure has been recognized during the current year.

F. Foreign Currency Transactions :

i) Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

ii) Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates.

iii) The difference in translation of monetary assets and liabilities and realized gains and losses on foreign exchange transactions are recognised in the Profit and Loss Account.

G. Employee Benefits:

(a) Short term employee benefits

All employee Benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as Salaries, wages, and short term compensated absences etc. is recognized in the period in which the employee renders the related service.

(b) Post Employment Benefits:

i. Defined Contribution Plans :

Define contribution plans are post employment benefit plans under which the company pays fixed contributions into separate entities (fund) or to financial institutions or state managed benefit schemes. The Company operates defined contribution plans pertaining to Provident Fund, Employees state Insurance, Pension Fund Scheme for eligible employees. The Company contribution to defined contribution plans are recognized in the profit and loss account in the financial year to which they relate.

ii. Defined Benefit Plans:

The gratuity liabilities are funded partly with the Life Insurance Corporation of India with a recognized fund, which is administered by the trustees. The Company provides for gratuity liability payable on retirement on the basis of Actuarial Valuation as at the year end and the same is charged to profit and loss account under head Employees Cost.

The Company provides for accumulated leave liability payable on retirement on the basis of Actuarial Valuation as at the year end and the same is charged to profit and loss account under head Employees Cost.

H. Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

I. Earnings per share :

Basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year, by the weighted average number of equity shares outstanding during the year. (Including diluted potential equity shares in case of diluted EPS).

J. Taxes on Income:

i) Provision for taxation is made on the basis of the estimated taxable income for the current Accounting period in accordance with provision of the Income Tax Act, 1961.

ii) The benefit of credit against the payment made towards MAT for the earlier years is available in accordance with the provisions of section 115J (AA) of income tax act 1961 over a period of subsequent 15 assessment years and it is recognized to the extent of deferred tax liability in view of the certainty involved of its realization against reversal of deferred tax liability.

iii) In accordance with Accounting Standard - 22 ‘ Accounting for Taxes on Income’, issued by the Institute of Chartered Accountants of India, the Deferred Tax for timing differences between the book profit and tax profit for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date.

iv) Deferred tax assets arising from temporary timing differences are recognised to the extent there is reasonable certainty that the assets will be realized in future.

K. Segment Reporting :

There is no separate reportable primary segment as per Accounting Standards 17, as most of the operations are related to only one Segment viz. Tyres & Tubes.

L. Impairment of Assets:

A Property, Plant and Equipment is treated as impaired when the carrying cost of assets exceeds its recoverable value. An Impairment Loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The Impairment Loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

M. Provisions, Contingent Liabilities and Contingent Assets :

Provisions are recognized only when there is a present obligation as a result of past event and when a reliable estimate of the amount of the obligation can be made. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by the future events not wholly within the control of the company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation can not be made. Contingent Assets are not recognized in the financial statements.

II. CAPITAL & OTHER COMMITMENT

Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) Rs.186.62 lacs (Previous year for Rs. 91.96 lacs).