Note 1: Material Accounting Policies

i) These financial statements have been prepared in accordance with the Indian Accounting
Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs
pursuant to Section 133 of the Companies Act, 2013 (‘Act’) read with of the Companies (Indian
Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act. The
accounting policies are applied consistently to all the periods presented in the financial
statements.

The financial statements have been prepared under the historical cost convention with the
exception of certain financial assets and liabilities which have been measured at fair value, on
an accrual basis of accounting.

All the assets and liabilities have been classified as current and non-current as per normal
operating cycle of the Company and other criteria set out in as per the guidance set out in
Schedule III to the Act. Based on nature of services, the Company ascertained its operating
cycle as 12 months for the purpose of current and non-current classification of asset and
liabilities.

The Company’s financial statements are reported in Indian Rupees, which is also the
Company’s functional currency, and all values are rounded to the nearest lakhs (INR 00,000),
except when otherwise indicated.

ii) Accounting Estimates

The preparation of the financial statements, in conformity with the Ind AS, requires the
management to make estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets and liabilities and disclosure of contingent
liabilities as at the date of financial statements and the results of operation during the reported
period. Although these estimates are based upon management’s best knowledge of current
events and actions, actual results could differ from these estimates which are recognised in
the period in which they are determined.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty
at the reporting date, that have a material accounting policy of causing a material adjustment
to the carrying amounts of assets and liabilities within the next financial year. The Company
based its assumptions and estimates on parameters available when the financial statements
were prepared. Existing circumstances and assumptions about future developments,
however, may change due to market changes or circumstances arising that are beyond the

control of the Company. Such changes are reflected in the financial statements in the period
in which changes are made and, if material, their effects are disclosed in the notes to the
financial statements.

Deferred tax assets

In assessing the realisability of deferred income tax assets, management considers whether
some portion or all of the deferred income tax assets will not be realized. The ultimate
realization of deferred income tax assets is dependent upon the generation of future taxable
income during the periods in which the temporary differences become deductible.
Management considers the scheduled reversals of deferred income tax liabilities, projected
future taxable income, and tax planning strategies in making this assessment. Based on the
level of historical taxable income and projections for future taxable income over the periods in
which the deferred income tax assets are deductible, management believes that the Company
will realize the benefits of those deductible differences. The amount of the deferred income
tax assets considered realizable, however, could be reduced in the near term if estimates of
future taxable income during the carry forward period are reduced.

iii) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.

a) Financial Assets

Initial Recognition

In the case of financial assets, not recorded at fair value through profit or loss (FVPL), financial
assets are recognised initially at fair value plus transaction costs that are directly attributable
to the acquisition of the financial asset. Purchases or sales of financial assets that require
delivery of assets within a time frame established by regulation or convention in the market
place (regular way trades) are recognised on the trade date, i.e., the date that the Company
commits to purchase or sell the asset.

Subsequent Measurement

For purposes of subsequent measurement, financial assets are classified in following
categories:

Financial Assets at Amortised Cost

Financial assets are subsequently measured at amortised cost if these financial assets are
held within a business model with an objective to hold these assets 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. Interest income from these financial assets is included in finance income using
the effective interest rate ("EIR”) method. Impairment gains or losses arising on these assets
are recognised in the Statement of Profit and Loss.

Financial Assets Measured at Fair Value

Financial assets are measured at fair value through Other comprehensive income( ‘OCI’ )if
these financial assets are held within a business model with an objective to hold these assets
in order to collect contractual cash flows or to sell these 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. Movements in the carrying

amount are taken through OCI, except for the recognition of impairment gains or losses,
interest revenue and foreign exchange gains and losses which are recognised in the
Statement of Profit and Loss. Financial asset not measured at amortised cost or at fair value
through OCI is carried at FVPL.”

Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies the expected credit loss (“”ECL””) model
for measurement and recognition of impairment loss on financial assets and credit risk
exposures.

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on
trade receivables. Simplified approach does not require the Company to track changes in
credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each
reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company
determines that whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for
impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in
a subsequent period, credit quality of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the entity reverts to recognising
impairment loss allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the group in
accordance with the contract and all the cash flows that the entity expects to receive (i.e., all
cash shortfalls), discounted at the original EIR. Lifetime ECL are the expected credit losses
resulting from all possible default events over the expected life of a financial instrument. The
12-month ECL is a portion of the lifetime ECL which results from default events that are
possible within 12 months after the reporting date.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as
income/ expense in the Statement of Profit and Loss.”

De-recognition of Financial Assets

The Company de-recognises a financial asset only when the contractual rights to the cash
flows from the asset expire, or it transfers the financial asset and substantially all risks and
rewards of ownership of the asset to another entity.

If the Company neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, the Company recognizes its retained
interest in the assets and an associated liability for amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred
financial asset, the Company continues to recognise the financial asset and also recognises
a collateralised borrowing for the proceeds received.

b) Equity Instruments and Financial Liabilities

Financial liabilities and equity instruments issued by the Company are classified according to
the substance of the contractual arrangements entered into and the definitions of a financial
liability and an equity instrument.

Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of the
Company after deducting all of its liabilities. Equity instruments which are issued for cash are
recorded at the proceeds received. Equity instruments which are issued for consideration
other than cash are recorded at fair value of the equity instrument.

Financial Liabilities

1) Initial Recognition

Financial liabilities are classified, at initial recognition, as financial liabilities at FVPL, loans and
borrowings and payables as appropriate. All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and payables.

2) Subsequent Measurement

The measurement of financial liabilities depends on their classification, as described below
Financial liabilities at FVPL

Financial liabilities at FVPL include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at FVPL. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses
on liabilities held for trading are recognised in the Statement of Profit and Loss.

Financial liabilities at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortised cost using the EIR method. Any difference between the proceeds (net of transaction
costs) and the settlement or redemption of borrowings is recognised over the term of the
borrowings in the Statement of Profit and Loss.

Amortised cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortisation is included as
finance costs in the Statement of Profit and Loss.”

3) De-recognition of Financial Liabilities

Financial liabilities are de-recognised when the obligation specified in the contract is
discharged, cancelled or expired. 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 de-recognition of the
original liability and recognition of a new liability. The difference in the respective carrying
amounts is recognised in the Statement of Profit and Loss.

c) Offsetting Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance
Sheet if there is a currently enforceable legal right to offset the recognised amounts and there
is an intention to settle on a net basis to realise the assets and settle the liabilities
simultaneously.

iv) Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprises of cash at banks and on hand ,
which are subject to an insignificant risk of changes in value.

v) Revenue Recognition

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

b) Sales are excluding GST and are stated net of discounts, returns and rebates.

vi) Income Tax

Income tax comprises of current and deferred income tax. Income tax is recognised as an
expense or income in the Statement of Profit and Loss, except to the extent it relates to items
directly recognised in equity or in OCI.

a. Current Income Tax

Current income tax is recognised based on the estimated tax liability computed after taking
credit for allowances and exemptions in accordance with the Income Tax Act, 1961. Current
income tax assets and liabilities are measured at the amount expected to be recovered from
or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.

b. Deferred Income Tax

Deferred tax is determined by applying the Balance Sheet approach. Deferred tax assets and
liabilities are recognised for all deductible temporary differences between the financial
statements’ carrying amount of existing assets and liabilities and their respective tax base.
Deferred tax assets and liabilities are measured using the enacted tax rates or tax rates that
are substantively enacted at the Balance Sheet date. The effect on deferred tax assets and
liabilities of a change in tax rates is recognised in the period that includes the enactment date.
Deferred tax assets are only recognised to the extent that it is probable that future taxable
profits will be available against which the temporary differences can be utilised. Such assets
are reviewed at each Balance Sheet date to reassess realisation.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right
to offset and intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.

Minimum Alternative Tax ("MAT”) credit is recognised as an asset only when and to the extent
it is probable that the Company will pay normal income tax during the specified period.

vii) Trade Receivables

A receivable is classified as a ‘trade receivable’ if it is in respect of the amount due on account
of goods sold or services rendered in the normal course of business. Trade receivables are
recognised initially at fair value and subsequently measured at amortised cost using the EIR
method, less provision for impairment.

viii) Trade Payables

A payable is classified as a ‘trade payable’ if it is in respect of the amount due on account of
goods purchased or services received in the normal course of business. These amounts
represent liabilities for goods and services provided to the Company prior to the end of the
financial year which are unpaid. These amounts are unsecured and are usually settled as per
the payment terms stated in the contract. Trade and other payables are presented as current
liabilities unless payment is not due within 12 months after the reporting period. They are
recognised initially at their fair value and subsequently measured at amortised cost using the
EIR method.

ix) Earnings Per Share

Basic earnings per share is computed by dividing the net profit or loss for the period
attributable to the equity shareholders of the Company by the weighted average number of
equity shares outstanding during the period. The weighted average number of equity shares
outstanding during the period and for all periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential equity shares, that have changed the
number of equity shares outstanding, without a corresponding change in resources.

Diluted earnings per share is computed by dividing the net profit or loss for the period
attributable to the equity shareholders of the Company and weighted average number of equity
shares considered for deriving basic earnings per equity share and also the weighted average
number of equity shares that could have been issued upon conversion of all dilutive potential
equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable
had the equity shares been actually issued at fair value (i.e. the average market value of the
outstanding equity shares).

Background

Mardia Samyoung Capillary Tubes Company Limited (“the Company”) is a company incorporated on 19.10.1992 under the Companies Act 1956. The Companies CIN is 174999MH1992PLCD69104.

Significant accounting Policies1:1. Basis of Preparation of Financial Statements

The accompanying financial statements have been prepared in compliance with the requirements under section 133 of the Companies Act, 2013 (to the extent notified) (the Act) read with Rule 7 of the Companies (Accounts) Rules 2014 and other generally accepted accounting principles (GAAP) in India to the extent applicable under the historical cost convention on the accrual basis of accounting, GAAP comprises mandatory accounting standards as specified in the Companies (Accounting Standards)Rules 2006.

All amount are rounded off to the nearest thousands (including two decimals) unless otherwise stated.

1:2. Current/Non-Current Classification

The Schedule III to the Act required assets and liabilities to be classified as either current or non-current Assets.

An asset is classified as current when it satisfies any of the following criteria.

a. It is expected to be realised in or is intended for sales or consumption in the company''s normal operating cycle.

b. It is held primarily for the purpose of being traded.

c. It is expected to be realised within 12 months after the reporting date, or

d. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria.

a. It is expected to be settled in the company''s normal operating cycle;

b. It is held primarily for the purpose of being traded.

c. It is due to be settled within 12 months after the reporting date; or

d. The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could at the option of the counterparty result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current liabilities.

All other liabilities are classified as non-current.

1:3. Operating Cycle

All assets and liabilities have been classified as current or non-current as per the Company normal operating cycle and other criteria set out above which are in accordance with the Schedule III to the Act.

Based on the nature of services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

1:4.Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements are prudent and reasonable. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future period.

1:5. Borrowing cost

Borrowing costs that are attributable to the acquisition, construction or production of qualifying asset are treated as direct cost and are considered as part of the cost of such assets

A qualifying asset is an asset that necessary requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognized as an expense in the period in which they are incurred.

1:6 Earnings per share

The basic earnings per share is computed by dividing the net profit attributable to the equity shareholder''s for the year by the weighted average number of equity shares outstanding during the reporting period. Diluted EPS is computed by diving the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.

1:7 Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will

be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources, Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

1:8 Property, Plant and Equipment and depreciation

Property, Plant and Equipment are carried at cost of acquisition or construction less accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price (excluding refundable taxes) borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Depreciation on Property, Plant and Equipment has been provided on straight line method as prescribed in Schedule II to the Companies. Act 2013, except in respect of certain assets in whose case the like of the assets has been assessed based on technical certification taking into account the nature of the assets the estimated usage of the assets the operating conditions of the assets past history of replacement, anticipated technological changes etc.

The estimated useful lives of the tangible fixed assets are as per Schedule II of Companies. Act 2013,

During the year the company has sold land, building and industrial gala.

During the year the company has sold its entire plant & machinery and written off electrical fittings, generator, computers etc

1:9 Inventories

Inventories are valued at lower of cost and estimated net realisable value, after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Cost is computed on weighted average basis.

Net realizable value is the estimated selling price in the ordinary course of business less estimated costs of completion and estimated costs necessary to make the sale.

During the year the company has written off the entire inventories due to being obsolete

1:10 Foreign exchange transactions

i. Transaction in foreign currency are recorded at the exchange rates prevailing on the dates of the transactions. Variations, if any on actual realisation/payment are considered in the Profit and Loss Account.

ii. Current assets and current liabilities relating to transactions in foreign currency remaining unsettled at the year end are restated at year end rates and differences, if any are considered in the Profit and Loss Account.

iii. Exchange differences, if any arising on settlement of liabilities incurred for purchase of fixed assets are considered in the Profit and Loss Account.

1:11 Employee Benefits

a. Defined Contribution Plans

The Company has defined contribution plan for post employment benefits namely provident fund and Maharashtra labour welfare fund which are recognised by the Income Tax authorities.

Under the provident fund plan the Company contributes to a Government administered provident fund on behalf of its employees and has no further obligation beyond making its contribution.

The Company''s contributions to the above funds are changed to expenses every year.

1:12 Investments

Long-term investments are stated at cost. Provision is made to recognize a decline, other than temporary in value of long term Investments and is determined separately for each individual investment. Current Investments are stated at lower of cost and fair value, computed separately in respect of each category of investment.

1:13 Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. 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. The reduction is treated 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 if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the lower of recoverable amount and the carrying amount that would have been determined had no impairment loss been recognised.

1:14 Segment Reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive management in deciding how to allocate resources and in assessing performance. The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Segment revenue, segment expenses segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis, have been included under unallocated revenue/expenses/assets / liabilities.

1:15 Transfer Pricing

The Company''s management is of the opinion that its international transactions are at arm''s length so the appropriate legislation will not have an impact on the financial statements, particularly on the tax expenses and that of provision for taxation.

1:16. Operating lease

Leases where the lessor retains, substantially all the risks and rewards incidental to ownership of the leased assets are classified as operating lease. Operating lease expense are recognized in the statement of profit and loss on a straight - line basis over the lease term.

1:17 Revenue recognition

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

Interest Income

Interest Income from a financial asset is recognised when it is probable that the economic benefit will flow to the company and the amount of Income can be measured reliably. Interest Income is accrued on a time basis by reference to the amortised cost and at the effective interest rate applicable.

1:18 Taxation

Income Tax expense comprises current income tax (i.e. amount of tax for the period determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future, however where there is unabsorbed depreciation or carried forward loss under taxation lows deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonably /virtually certain (as the case may be) to be realized.

Significant accounting Policies

1:1. Basis of Preparation of Financial Statements

The accompanying financial statements have been prepared in compliance with the requirements under section 133 of
the Companies Act, 2013 (to the extent notified) (the Act) read with Rule 7 of the Companies (Accounts) Rules 2014
and other generally accepted accounting principles (GAAP) in India to the extent applicable under the historical cost
convention on the accrual basis of accounting, GAAP comprises mandatory accounting standards as specified in the
Companies (Accounting Standards)Rules 2006.

All amount are rounded off to the nearest thousands (including two decimals) unless otherwise stated.

1:2. Current/Non-Current Classification

The Schedule III to the Act required assets and liabilities to be classified as either current or non-current Assets.

An asset is classified as current when it satisfies any of the following criteria.

a. It is expected to be realised in or is intended for sales or consumption in the company''s normal operating cycle.

b. It is held primarily for the purpose of being traded.

c. It is expected to be realised within 12 months after the reporting date, or

d. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least
12 months after the reporting date.

Current assets include the current portion of non-current assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria.

a. It is expected to be settled in the company''s normal operating cycle;

b. It is held primarily for the purpose of being traded.

c. It is due to be settled within 12 months after the reporting date; or

d. the company does not have an unconditional right to defer settlement of the liability for at least 12 months
after the reporting date. Terms of a liability that could at the option of the counterparty result in its settlement by the
issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current liabilities.

All other liabilities are classified as non-current.

1:3. Operating Cycle

All assets and liabilities have been classified as current or non-current as per the Company normal operating cycle and
other criteria set out above which are in accordance with the Schedule III to the Act.

Based on the nature of services and the time between the acquisition of assets for processing and their realisation in
cash and cash equivalents the Company has ascertained its operating cycle as 12 months for the purpose of
current/non-current classification of assets and liabilities.

1:4.Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent liabilities on the date of the financial statements are prudent and reasonable. Actual results
could differ from those estimates. Any revision to accounting estimates is recongnised prospectively in current and
future period.

1:5. Borrowing cost

Borrowing costs that are attributable to the acquisition, construction or production of qualifying asset are treated as
direct cost and are considered as part of the cost of such assets

A qualifying asset is an asset that necessary requires a substantial period of time to get ready for its intended use or
sale. All other borrowing costs are recognized as an expense in the period in which they are incurred.

1:6 Earnings per share

The basic earnings per share is computed by dividing the net profit attributable to the equity sharesholders for the year
by the weighted average number of equity shares outstanding during the reporting period. Diluted EPS is computed by
diving the net profit attributable to the equity shareholders for the year by the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.

1. ACCOUNTING CONVENTIONS

The Company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those significant uncertainties, warehousing charges and leave pay.

2. FIXED ASSETS

Fixed assets stated at cost which include all related expenses up to acquisition and installation of fixed assets. The fixed assets have been revalued on 31.3.2008.

3. DEPRECIATION

Depreciation on fixed assets has been provided on pro-rata basis on straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956. No depreciation is provided on the assets not put to use.

4. INVENTORIES VALUATION

Items of inventories are valued as under:

a. Raw materials : At Cost. On first in first out basis (Including materials with third party)

b. Works in Process : At estimated cost

c. Finished Goods : At estimated cost

d. Stores & Spares : At Cost

e. Scraps : At estimated cost

5. FOREIGN CURRENCY TRANSACTIONS

a. Transaction in foreign currencies, are recorded at exchange rate prevailing on the date of relevant transaction.

b. Balance in form of Current assets and Current liabilities in foreign currency, outstanding at the close of the year, are converted into Indian currency at the appropriate exchange rates prevailing in the date of Balance Sheet.

c. Resultant gain or loss with respect to (a) above is accounted during the year.

6. RETIREMENT BENEFITS

Retirement benefits payable to the employees have been accounted for by making a provision, as regards to Gratuity payable to Employees based on actual valuation. This is in harmony with AS - 15 issued by the Institute of Chartered Accountants of India, which came into force from 01.04.1995

7. MISCELLANEOUS EXPENDITURE

i. Preliminary Expenses & Public issue expenses are amortized over a period of ten years.

8. REVENUE RECOGNITION

i. Sales are recognized at the time of the dispatch of the goods. Sales are exclusive of excise duty and net of return.

ii. Income arising out of lease rent is accounted for as per the terms of the lease agreements entered into with the Lessees.

9. IMPAIRMENT OF ASSETS

The company has not worked out any "Impairment of Assets" as per Accounting standard-28.

10. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

(i) The company recognizes as provisions, the liabilities being present obligations arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of eliminations.

(ii) Contingent liabilities are disclosed by way of a note to the financial statement after careful evaluation by the management of the facts and legal aspects of the matter involved.

(iii) Contingent assets are neither recognized nor disclosed.

11. a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to relevant assessment year.

b) Deferred Tax: In accordance with the accounting standard 22 "Accounting for Taxes on the Income" issued by the Institute of Chartered Accountants of India, the deferred tax for the timing difference is measured using the tax rates and tax la,w that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax asset arising from timing difference are recognized only on the consideration of prudence.

c) Fringe Benefit Tax : Provision for Fringe Benefit Tax is made in accordance with the Provisions of the Income Tax Act, 1961.

1. ACCOUNTING CONVENTIONS

The Company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those significant uncertainties, warehousing charges and leave pay.

2. FIXED ASSETS

Fixed assets stated at cost which include all related expenses up to acquisition and installation of fixed assets. The fixed assets have been revalued on 31.3.2008.

3. DEPRECIATION

Depreciation on fixed assets has been provided on pro-rata basis on straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956. No depreciation is provided on the assets not put to use.

4. INVENTORIES VALUATION

Items of inventories are valued as under:

a. Raw materials : At Cost. On first in first out basis (Including materials with third party)

b. Works in Process : At estimated cost

c. Finished Goods : At estimated cost

d. Stores & Spares : At Cost

e. Scraps : At estimated cost

5. FOREIGN CURRENCY TRANSACTIONS

a. Transaction in foreign currencies, are recorded at exchange rate prevailing on the date of relevant transaction.

b. Balance in form of Current assets and Current liabilities in foreign currency, outstanding at the close of the year, are converted into Indian currency at the appropriate exchange rates prevailing in the date of Balance Sheet.

c. Resultant gain or loss with respect to (a) above is accounted during the year.

6. RETIREMENT BENEFITS

Retirement benefits payable to the employees have been accounted for by making a provision, as regards to Gratuity payable to Employees based on actual valuation. This is in harmony with AS -15 issued by the Institute of Chartered Accountants of India, which came into force from 01.04.1995

7. MISCELLANEOUS EXPENDITURE

i. Preliminary Expenses & Public issue expenses are amortized over a period of ten years.

8. REVENUE RECOGNITION

i. Sales are recognized at the time of the dispatch of the goods. Sales are exclusive of excise duty and net of return.

ii. Income arising out of lease rent is accounted for as per the terms of the lease agreements entered into with the Lessees.

9. IMPAIRMENT OF ASSETS

The company has not worked out any "Impairment of Assets" as per Accounting standard-28.

10. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

(i) The company recognizes as provisions, the liabilities being present obligations arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of eliminations.

(ii) Contingent liabilities are disclosed by way of a note to the financial statement after careful evaluation by the management of the facts and legal aspects of the matter involved.

(iii) Contingent assets are neither recognized nor disclosed.

ll. a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to relevant assessment year.

b) Deferred Tax: In accordance with the accounting standard 22 "Accounting for Taxes on the Income" issued by the Institute of Chartered Accountants of India, the deferred tax for the timing difference is measured using the tax rates and tax law that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax asset arising from timing difference are recognized only on the consideration of prudence.

c) Fringe Benefit Tax : Provision for Fringe Benefit Tax is made in accordance with the Provisions of the Income Tax Act, 1961.

1. ACCOUNTING CONVENTIONS

The Company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those significant uncertainties, warehousing charges and leave pay.

2. FIXED ASSETS

Fixed assets stated at cost which include all related expenses up to acquisition and installation of fixed assets. The fixed assets have been revalued on 31.3.2008.

3. DEPRECIATION

Depreciation on fixed assets has been provided on pro-rata basis; on straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956. No depreciation is n vided on the assets not put to use.

4. INVENTORIES VALUATION

Items of inventories are valued as under:

a. Raw materials : At Cost. On first in first out basis (Including materials with third party)

b. Works in Process : At estimated cost

c. Finished Goods : At estimated cost

d. Stores & Spares : At Cost

e. Scraps : At estimated cost

5. FOREIGN CURRENCY TRANSACTIONS

a. Transaction in foreign currencies, are recorded at exchange rate prevailing on the date of relevant transaction.

b. Balance in form of Current assets and Consent liabilities in foreign currency, outstanding at the close of the year, are converted into Indian currency at the appropriate exchange rates prevailing in the date of Balance Sheet.

c. Resultant gain or loss with respect to (a) above is accounted during the year.

6. RETIREMENT BENEFITS

Retirement benefits payable to the employees have been accounted for by making a provision, as regards to Gratuity payable to Employees based on actual valuation This is in harmony with AS - 15 issued by the Institute of Chartered Accountants of India, which came into force from 01.04.1995

7. MISCELLANEOUS EXPENDITURE

i. Preliminary Expenses & Public issue expenses are amortized over a period of ten years.

8. REVENUE RECOGNITION

i. Sales are recognized at the time of the dispatch of the goods. Sales are exclusive of excise duty and net of return.

ii. Income arising out of lease rent is accounted for as per the terms of the lease agreements entered into with the Lessees.

9. IMPAIRMENT OF ASSETS

The company has not worked out any "Impairment of Assets" as per Accounting standard-28.

10. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

(i) The company recognizes as provisions, the liabilities being present obligations arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of eliminations.

(ii) Contingent liabilities are disclosed by way of a note to the financial statement after careful evaluation by the management of the facts and legal aspects of the matter involved.

(iii) Contingent assets are neither recognized nor disclosed.

11. a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to relevant assessment year.

b) Deferred Tax: In accordance with the accounting standard 22 "Accounting for Taxes on the Income" issued by the Institute of Chartered Accountants of India, the deferred tax for the timing difference is measured using the tax rates and tax law that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax asset arising from timing difference are recognized only on the consideration of prudence.

1. ACCOUNTING CONVENTIONS

The Company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those significant uncertainties, warehousing charges and leave pay.

2. FIXED ASSETS

Fixed assets stated at cost which include all related expenses up to acquisition and installation of fixed assets. The fixed assets have been revalued on 31.3.2008.

3. DEPRECIATION

Depreciation on fixed assets has been provided on pro-rata basis on straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956. No depreciation is provided on the assets not put to use.

4. INVENTORIES VALUATION

Items of inventories are valued as under:

a. Raw materials : At Cost. On first in first out basis (Including materials with third party)

b. Works in Process : At estimated cost

c. Finished Goods : At estimated cost

d. Stores & Spares : At Cost

e. Scraps : At estimated cost

5. FOREIGN CURRENCY TRANSACTIONS

a. Transaction in foreign currencies, are recorded at exchange rate prevailing on the date of relevant transaction.

b. Balance in form of Current assets and Current liabilities in foreign currency, outstanding at the close of the year, are converted into Indian currency at the appropriate exchange rates prevailing in the date of Balance Sheet.

c. Resultant gain or loss with respect to (a) above is accounted during the year.

6. RETIREMENT BENEFITS

Retirement benefits payable to the employees have been accounted for by making a provision, as regards to Gratuity payable to Employees based on actual valuation. This is in harmony with AS -15 issued by the Institute of Chartered Accountants of India, which came into force from 01.04.1995

7. MISCELLANEOUS EXPENDITURE

i. Preliminary Expenses & Public issue expenses are amortized over a period often years.

8. REVENUE RECOGNITION

i. Sales are recognized at the time of the dispatch of the goods. Sales are exclusive of excise duty and net of return.

ii. Income arising out of lease rent is accounted for as per the terms of the lease agreements entered into with the Lessees.

9. IMPAIRMENT OF ASSETS

The company has not worked out any "Impairment of Assets" as per Accounting standard-28.

10. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

(i) The company recognizes as provisions, the liabilities being present obligations arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of eliminations.

(ii) Contingent liabilities are disclosed by way of a note to the financial statement after careful evaluation by the management of the facts and legal aspects of the matter involved.

(iii) Contingent assets are neither recognized nor disclosed.

II. a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to relevant assessment year.

b) Deferred Tax: In accordance with the accounting standard 22 "Accounting for Taxes on the Income" issued by the Institute of Chartered Accountants of India, the deferred tax for the timing difference is measured using the tax rates and tax law that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax asset arising from timing difference are recognized only on the consideration of prudence.

c) Fringe Benefit Tax: Provision for Fringe Benefit Tax is made in accordance with the provisions of the Income Tax Act, 1961.

1. ACCOUNTING CONVENTIONS

The Company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those significant uncertainties, warehousing charges and leave pay.

2. FIXEDASSETS

Fixed assets stated at cost (net of modvat credit) which include all related expenses up to acquisition and installation of fixed assets. The fixed assets have been revalued on 31.3.2008.

3. DEPRECIATION

Depreciation on fixed assets has been provided on pro-rata basis on straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956. No depreciation is provided on the assets not put to use.

4. INVENTORIES VALUATION Items of inventories are valued as under:

a. Raw materials : At Cost. On first in first out basis (Including materials with third party)

b. Works in Process : At estimated cost

c. Finished Goods : At estimated cost

d. Stores & Spares : At Cost

e. Scraps : At estimated cost

5. FOREIGN CURRENCYTRANSACTIONS

a. Transaction in foreign currencies, are recorded at exchange rate prevailing on the date of relevant transaction.

b. Balance in form of Current assets and Current liabilities in foreign currency, outstanding at the close of the year, are converted into Indian currency at the appropriate exchange rates prevailing at the date of balance Sheet.

c. Resultant gain or loss with respect to (a) above is accounted during the year.

6. RETIREMENTBENEFITS

Retirement benefits payable to the employees have been accounted for by making a provision, as regards to Gratuity payable to Employees based on actual valuation. This is in harmony with AS - 15 issued by the Institute of Chartered Accountants of India, which came into force from 01.04.1995

7. MISCELLANEOUS EXPENDITURE

I. Preliminary Expenses & Public issue expenses are amortized over a period often years.

8. REVENUE RECOGNITION

i. Sales are recognized at the time of the dispatch of the goods. Sales are exclusive of excise duty and net of return.

ii. Income arising out of lease rent is accounted for as per the terms of the lease agreements entered into with the Lessees.

9. IMPAIRMENT OF ASSETS

The company has not worked out any "Impairment of Assets" as per Accounting standard-28.

10. PROVISIONS, CONTINGENT LIABILITIES AND CONTIGENET ASSETS

(i) The company recognizes as provisions, the liabilities being present obligations arising out of past events, the settlement of which is expected to result in an outflow of resources and which can be measured only by using a substantial degree of eliminations.

(ii) Contingent liabilities are disclosed by way of a note to the financial statement after careful evaluation by the management of the facts and legal aspects of the matter involved.

(iii) Contingent assets are neither recognized nor disclosed.

11. a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to relevant assessment year.

b) Deferred Tax: In accordance with the accounting standard 22 "Accounting for Taxes on the Income" issued by the Institute of Chartered Accountants of India, the deferred tax for the timing difference is measured using the tax rates and tax law that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax asset arising from timing difference are recognized only on the consideration of prudence.

c) Fringe Benefit Tax: Provision for Fringe Benefit Tax is made in accordance with the provisions of the Income Tax Act, 1961.