P G Foils Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2018

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) Pursuant to MCA notification for applicability of IND AS, The Companies (Indian Accounting Standarcs) Rues, 2015 (as amended), the Company has adoptee IND AS for the financial year beginning from April 1, 2017 with April ], 2016 as the date of transition. These are the Company’s first annul financial statements prepared complying in all material respects with the accounting standards notified under Section 133 of the Companies Act 2013, read with the Companies (Indian Accounting Standards) Rule 2015. The financial statements company with IND AS notified by Ministry of Company Affairs (“MCA”). The Company has consistently applied the accounting policies used in the preparation of its opening IND AS Balance Sheet at April 1,2016 and comparative period presented. The company prepare financial statements for all periods upto 31st March 2017 in accordance with The Accounting Standards notified u/s 133 of The Companies Act 2013 (as amended) (read with Companies (Accounts) Rules 2014 (“Indian GAAP”). Indian GAAP is considered as the previous GAAP under IND AS 101 .The reconciliation of effects of the transition from Indian GAAP to IND AS is disclosed in these financial statements. The financial statement has been prepared considering all IND AS as notified by MCA till reporting date i.e, March 31, 2018 The financial statements provide comparative information in respect to the previous js year (including Balance Sheet at the beginning on the transition date to IND AS).”

The financial statements of the company are consistently prepared and presented under historical cost convention on an accrual basis in accordance with Ind AS except for certain financial assets and liabilities that ore measured at fair values.

The company’s functional currency and presentation currency is Indian Rupees (INR). All amounts disclosed in the financial statements and notes are in INR except otherwise indicated.

b) Classification of Assets and Liabilities into current and Non-Current

The Company presents its assets and liabilities in the Balance Sheet based on current/ non-current classification.

As asset is treated as current when it is:

a) expected to be realised or intended to be sold or consumed in normal operating cycle;

b) held primarily for the purpose of trading;

c) expected to be realised within twelve months after the reporting period; or

d) cash or cash equivalent unless restricted from being exchanged o’ used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-Current.

A liability is treated as current when:

a) it is expected to be settled in normal operating cycle;

b) it is held primarily for the purpose of tracing;

c) it is due to be settled within twelve months after the reporting period; or

d) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

Based on the nature of products 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 being a period within twelve months for the purpose of current and non-current classification or assets and liabilities.

c) Use of Judgements, Estimates and Assumptions

The preparation of the company’s financial statements required management to make judgements, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosures of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that ‘require a material adjustment in the future periods in the carrying amount of assets or liabilities affected.

The following are the key assumptions concerning the future, and other other key sources of estimation uncertainly at the end of reporting period that may have significant risk of causing material adjustments to the carrying amounts of assets and liabilities with in :

i) Useful life of property, plant and equipment and intangible assets: The company has estimated useful life of the Property, Plant and Equipment as specified in Schedule 11 to Companies Act 2013. However, the actual useful life for individual equipments could turn out to be different, there could be technology changes, breakdown, unexpected failure leading to impairment or complete discard. Alternately the equipment may continue to provide useful service well beyond the useful assumed.

ii) Fair value measurement of financial Instruments: When the fair values of financial assets and financial liabilities Cannot be measured based On quoted process in active market, the fair value is measured using valuation techniques including book value and discounted cash flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not possible, a degree of judgement is required in establishing fair values.

iii) Impairment of financial and non-financial assets: The impairment provisions for the financial assets are based on assumptions about risk of default and expected loss rates. The company uses judgement in making these assumptions and selecting the input for the impairment calculations, based on Company’s past history, existing market conditions, technology, economic developments as well as forward looking estimates at the end of each reporting period.

iv) Taxes: Taxes have been paid /provided, exemptions availed, allowances considered etc. are based on the extent laws and the company’s interpretation of the same based on the legal advice received wherever required. These could differ in the view taken by the authorities, clarifications issued subsequently by the government and court, amendments to statues by the government etc.

v) Defined benefit plans: Gratuity payable to employees is provided on the basis of premium paid under group gratuity scheme with Life insurance Corporation of India.

vi) Provisions:

(i) Provision for Leave encashment has been made on accrual basis on leave un-availed as on 31.03.2018.

(ii) Service awards have been adjusted/accounted on the basis of completed months of service provided by employees.

vii) Contingencies: A provision’s recognised when an enterprise has a present obligation as a result of past event end it is probable that an outflow of resources will be required to settle the obligation in respect of which o reliable estimate can be mode. Previsions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligations at the end of the reporting period. However, the actual liability could be considerably different.

d) Property, Plant and Equipment

(i) Property, plant and equipment situated in India comprising lard other assets namely Building. Plant & Machinery, Office equipment etc, the company has elected to continue with the carrying value as its deemed cost on 1.4.2016 measured as per previous GAAP and use that carrying value as its deemed cost as on the transition date. The cost of Tangible assets comprises its purchase price, borrowing cost, any other cost directly attributable to bringing the assets into present location end condition necessary for it to be capable of operating in the manner intended by the Management, initial estimation of any de-commissioning obligations and finance cost.

(ii) Depreciation

Depreciation an Fixed Asses is provided on Written Down Value Method over their useful lives and in the manner specified in Schedule II of The Companies Act 2013. Property, Plant & Equipments which are added/disposed off during the year the depredation is provided on pro rata basis with reverence to month of addition/deletion.

(iii) Component Accounting When significant parts of property, plant and equipment are required to be replaced at intervals, the Company derecognizes the rep aced part, and recognizes the new port with its own associated useful life and it is depreciated accordingly. Likewise, when a major inspection is performed, Its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied Al other repair and maintenance costs are recognized in the Statement of Profit and Loss as incurred. The present value of the expected cost for the decommissioning of the asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.

(iv) Expenditure during construction/erection period is included under Capitol Work-in-Progress and is allocated to the respective fixed assets on completion of construction/ erection.

(v) Property, plant and equipment are eliminated from financial statement, either on disposal or when retired from active use. Losses arising in the case of retirement of Property; plant and equipment and gains or losses arising from disposal of property, plant and equipment are recognized in Statement of Profit and Loss in the year of occurrence.

(vi) The assets” residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.

e) Investment properties:

‘Investment properties consists of investments in land and buildings that ore held to earn rental! income or tor capital appreciation, rather than for use in the production or supply of goods or services or for administrative purposes or sole in the ordinary-y course of business, Investment property is stated at cost less accumulated depreciation and impairment losses. Depreciation on building is provided over the estimated useful lives as specified in Schedule II to Companies Act, 2013. The Residual Life, useful lives and depreciation method of investment properties are reviewed, and adjusted on Prospective basis as appropriate, at each financial year end. The effects of any revision are included in the Statement of Profit and Loss when the changes arise.’

f) Intangible assets:

(i) Intangibles assets are recognised when it is probable that the future economic benefits that ere attributable to the assets will flow to the Company and the cost of the asset can be measured reliably. Intangible Assets are stated at cost which includes any direct y attributable expenditure on making the asset ready for its intended use. Intangible assets with finite useful lives are capitalized at cost and amortized on a straight lire basis over a period of 0 years.

(ii) Software:- Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit and loss in the period in which the expenditure is incurred. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern ©^consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. Intangibles assets with indefinite useful lives (Iike goodwill, brands), if any are nor amortised, but are tested for Impairment annually, either individually Or of the cash generating unit level. The assessment of indefinite useful life is reviewed annually determine whether indefinite life continues to be supportable. If not, the charge in useful life from indefinite to finite life is made on prospective basis.

f i) Research and development cost:

i) Research Cost: Revenue expenditure on research is expensed under the respective heads of accounts in the period in which it is incurred.

ii) Development Cost: Development expenditure on new product is capitalised as Intangible asset, if technical and commercial feasibility as per IND AS 38 is demonstrated.

g) Inventories:

Raw materials, Stores and Spares and fuel are valued at lower of cost (or first in first out basis) and net realisable value.

Stock n process is valued at lower of cost (on first in first out basis) and net realisable value.

Finished goods are valued at lower of cost and net realisable value.

Scrap is valued at estimated net realisable value.

Cost for this purpose includes direct material, direct labour, other variable cost and manufacturing overhead based on normal operating capacity.

Net realisable value is estimated selling price in the ordinary course or business less estimated cost of completion and selling expenses Export Goods in transit valued at sales value including freight therof.

Stock in transit valued at purchase price including clearing expenses, custom duty paid and incidental expenses thereto.

h) Cash and cash equivalents:

i) Cash and cash equivalents are financial assets, Cash and cash equivalents consist of cash and short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less at the time of purchase and are carried at cost plus accrued interest.

ii) Cash Flow Statement: Cash Flow are reported using indirect method, whereby profit for the year is adjusted for effects of Transactions of non cash nature., any deferrals or accruals of post or future operating cash receipts or payments and item of Income or expenses associated with investing or financing cash flows. The cash flows from operating, investing, and financing activities of the company are segregated.

iii) Bank Balances Other than above : Dividend Escrow account balance, deposit with bank, as margin money for guarantees issued by bunk, deposits kept as security deposit for statutory authorities are accounted as bank balance other than cash and cash equivalent.

I) Financial instruments:

A financial instrument is any contract that at the sometime gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments are recognized as soon as the company becomes e contracting party to the financial instrument. In cases where trade date and settlement date do not coincide, for non-derivative financial instruments the settlement dote s used for initial recognition or derecognition while for derivatives the trade date is used. Financial instruments stated as financial assets or financial liabilities are generally not offset; they are only offset when a legal right to set-off exists at that time and settlement on a net basis is intended.

1) Financial assets:

Financial assets include trade receivable., cash and cash equivalents, derivative financial assets and also the equity / debt instruments he d. Initially all financial assets are recognised at amortised cost or fair value through Other Comprehensive Income or fair value through Statement of Profit or Loss, depending on its business model for those financial assets and their contractual cash flow characteristics. Subsequently, based on initial recognition/ classification, where assets are measured at lair value, gain and losses are either recognised entirely in the statement of profit and loss (i.e. fair value through Profit or loss), or recognised in other comprehensive Income (i.e. fair value through other comprehensive income).

(a) Trade Receivables: Trade receivables are recognised initially at fair value and subsequently measured amortized cost less credit loss/impairment allowances.

Receivables that do not hear interest or bear below market Interest rates and have an expected term of more than one veer are discounted with the discount subsequently amortized to interest income over the term of the receivable.

Impairment is made on the expected credit losses, which are the present value of the cash deficits over the expected life of receivables. The estimated impairment losses are recognised n the Statement of Profit and Loss. Subsequent changes in assessment of impairment are recognized in the Statement of Profit and Loss as changes n estimates.

(b) Loans & other financial assets : Loans and other financial assets are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets ore recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loons and other financial assets are measured at amortized cost using the effective interest method, less any impairment losses.

(c) Investment in equity shares: Investment in equity securities are initially measured at fair value. Any subsequent lair value gain or loss for investments held for investment is recognized through Other Comprehensive Income. Any subsequent gain or loss for investment held for trading are recognized through Statement of Profit and Loss.

(d) Investment in associates, joint venture and subsidiaries: The Company’s investment (if any) in subsidiaries and associates, feint venture are earned at cost except where Impairment loss recognised.

2) Financial liabilities: Financial liabilities such as Loans and borrowings and other payables are recognized initially on the trade dale, which is the date that the Company becomes a party to the contractual terms of the instrument. Financial liabilities other than fair valued through profit and loss are recognized initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities a-e measured at amortized cost using the effective interest method. Transaction costs of financial liability carried at far value through profit or loss is expensed in profit or loss. The Company derecognizes a financial liability when its contractual obligations are settled or cancelled or expired.

a) Financial liabilities at fair value through profit or loss: It include financial liabilities held for trading and are designated such at initial recognition, financial liabilities are held for tracing if they are incurred for the purpose of repurchasing in near term and also include Derivatives that are not part of an affective hedge accounting in accordance with IND AS 109, classified as ‘held for trading” and carried at fair value through profit or loss. Financial liabilities at fair value through profit or loss are measured at each reporting date at fair value with all the changes recognized in the Statement of Profit and Loss.

b) Financial liabilities measured at amortised cost: Post recognition, interest bearing Ioans and borrowings are subsequently measured at amortised cost using the effective interest rate method (‘EIR”). Amortised cost is calculated by taking into account any discount or premium on acquisition and fee or costs that are an integral part of the EIR. The EIR amortisation is included in finance costs in the Statement of Profit and Loss.

c) Loans and Borrowings : After initial recognition, inlerest-bearing borrowings are subsequently measured at amortised cost using the effective interest method. Any difference between the proceeds (net of transaction casts) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or alI of the facility will be drawn down.

d) Financial guarantee contracts: As per IN D AS -109 “Financial guarantee contracts issued by the Company ore those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor tai s to make a payment when due in accordance with the terms of a debt instrument.”

e) Initial recognition : The date the company becomes a party to the irrevocable commitment is considered to be the dale of initial recognition and Financial guarantee contracts are ‘recognised as liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured ct the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortization.

f) Trade and other payables: A payable is classified as “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. Trade accounts payable end other non-derivative financial liabilities ere Vi general measured at amortized cost using the effective interest method. Finance charges,, including premiums payable on redemption or settlement, are periodically accrued using the effective interest method end increase the liabilities’ carrying amounts unless they have already been settled in the period in which they were incurred.

j) Impairment of non-financial assets:

At each reporting date, the company assesses whether there is any indication that a non-financial asset may be impaired. If any such indication exists, the recoverable amount of the non-financial asset is estimated in order to determine the extent of the impairment loss, if any. Recoverable amount is determined:

- In the case of on individual asset, at the higher of the Fair Value less cost to sell and the value in use: and

- In the case of cash generating unit (a group oz assets that generates identified, independent cash flows) at the higher of cash generating unit’s fair value less cost to sell and the value in use.

Where it is not possible to estimate the recoverable amount of an Individual non-financial asset, the company estimates the recoverable amount of the smallest cash generating unit to which the non-financial asset belongs. The recoverable amount is the higher of an assets or cash generating unit’s fair value less costs of disposal and its value in use. If the recoverable amount of a non-financial asset or cash generating unit is estimated to be less than its carrying amount, the carrying amount of the non-financial asset or cash generating unit is reduced to its recoverable amount. Impairment losses are recognized immediately in the statement of Prof t and Loss. Where an impairment loss subsequently reverses, the carrying amount of the non-financial asset or cash generating unit is increased to the revised estimate of its recoverable amount. However, this increased amount cannot exceed the carrying amount that would have been determined had no impairment loss been recognized for that non -financial asset or cash generating unit in prior periods. A reversal ot an impairment loss is recognized immediately in the statement of Profit and loss.

k) Foreign currency transactions:

i) Functional and presentation Currency : The functional and reporting currency of company is INR.

ii) Transaction and Balances: Currency Transactions denominated in foreign currencies are initially recorded at the rates of exchange prevailing on the dates of the transactions. Monetary assets and liabilities denominated in such currencies are retranslated at the rates prevailing on the balance sheet date. Profits and Losses arising on exchange are included in the net profit or loss for the period. Pursuant to exemption given under IND AS 101 the company has continued the policy for accounting for amortization of exchange differences arising from translation of long-term foreign currency monetary items over the tenure of loan. Non-Monitory items measured at fairvalue in a foreign currency are translated using the exchange rates of the date when the fair value is determined. The gain or loss arising on transaction of non-monetary items is recognised in line with the gain or loss of The item that gave rise to the translation difference.

I) Revenue recognition:

i) Revenue is measured at fair value ol consideration received or receivables. Amount disclosed as revenue are inclusive of Excise duty and ret of Goods and Se-vice Tax (GST), returns, discounts, rebates. The company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefit will flaw to the company.

ii) Revenue from services is recognized when services are rendered.

iii) No revenue is recognized f there are significant uncertainties regarding recovery of The consideration due or the possible return of goods. Revenue is recognized net of applicable provisions for discounts end allowances

iv) Revenue from other activities: is recognized based on the nature of activity, when consideration can tie reasonably measured. - Revenue is measured at the fair value (excluding Goods and Services Tax) of the consideration received or receivable, taking into account contractually defined terms of payment.

v) Dividend income: Dividend income’s accounted for when the right to receive the same is established, which is generally when shareholders approve the dividend.

vi) Interest income: For al! Financial ‘instruments measured at amortised cost, interest income is recorded using effective interest rate (FIR), which is the rate that exactly discounts the estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the net currying amount of the financial asset. Interest income is included in other income in statement of profit and loss.

vii) Export incentive: export incentives are accounted for on export of goods if the entitlements can be estimated with reasonable accuracy and conditions precedent to claim are reasonably expected to be fulfilled. Units generated on Enercon wind power plant has been accounted on the basis of effective tariff rate In respective month. Units generated On Suzlon wind power part has been accounted at contract price On accrual basis.

viii) Export sales are accounted for, on the basis of exchange rate of LEO Date (let Export Order) of transactions and recognized as tend when Risk & Rewards are transferred

ix) Interest receivable from Trade Receivables and dividend from investments are accounted on receipt basis.

m) Government Grant

i) Government grants related to capital nature Is recognised in profit or loss on a systematic basis over the periods in which the entity recognises as expenses the related costs for which the grants are intended to compensate,

ii) A government grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving Immediate financial support to the entity with no future related casts is recognised in profit or loss of the period in which it becomes receivable.

n) Employees Benefits:

i) Short term employee Benefit: All employees’ benefits payable wholly within twelve months rendering services are classified as short term employee benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc., and the expected cost of bonus, ex-gratia are recognized during the period in which the employee renders related service.

ii) Defined Contribution Plan: Contributions to the Employees’ Provident Fund and Employee’s State Insurance are recognized as Defined Contribution Plan and charged as expenses in the year in which the employees render the services.

iii) Defined Benefit Plan:

(a) Gratuity payable to employees is provided on the basis of premium paid under group gratuity scheme with Life Insurance Corporation of India.

(b) Provision for l eave encashment has been made on accrual basis on leave un-availed as on 31 03.2018.

(c) Service awards nave been adjusted/accounted on the basis of completed months of service provided by employees.

The Company recognises the following changes in the net defined benefit obligation under employee benefit expenses in the statement of profit and loss.

- Service costs comprising current service costs, gains end losses on curtailments and non-routine Settlements.

- Net interest income or expense.

iv) Long term Employee Benefit: Compensated absences which are no: expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the present value of the defined benefit obligation at the balance sheet date.

v) Termination Benefits: Termination benefits ore recognised as an expense in the period in which they are incurred.

The Company shall recognise a liability and expense for termination benefits at the earlier of the following dates:

(a) when the entity can no longer withdraw the offer of those benefits; and

(b) when the entity recognises costs for a restructuring that is within the scope of Ind AS 37 and involves the payment of termination benefits,

o) Borrowing costs:

I) Borrowing costs that are specifically attributable to the acquisition, construction, or production of a qualifying asset are capitalised as a part of the cost of such asset till such time the asset is ready for its intended use or sale. A quarrying asset is on asset that necessarily requires a substantial period of time (generally over twelve months) to get ready for its intended use or sale.

ii) All other borrowing costs are recognised as expense in the statement of profit and loss account in the period in which they are incurred.

p) Leases:

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date, whether fulfillment of the arrangement is dependent on the use of o specific asset or assets or the arrangement conveys o right to use the asset, even if that right is not explicitly specified in an arrangement.

i) Finance Lease: Finance Lease that transfer substantially all of the risks and benefits incidental to ownership of the leased item, are capitalised at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and a reduction in the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability .Finance changes are recognised in finance casts in the statement of profit and loss unless they are directly attributable to Qualifying assets, in which case they are capitalised in accordance with the Company’s policy on borrowing costs.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership ay the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

ii) Operating Lease : Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by lessor are classified as operating leases. Initia direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term cn the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned. Payments/receipts under operating lease ere recorded in the Statement of Profit and Loss on a straight line basis over the period of the lease unless the payments are structured to ‘increase in line with expected general inflation to compensate for the expected inflationary cost increases.

q) Taxes On income:

Income Tax expenses comprise current tax expenses and the net change in the deferred tax asset or liabilities during the year. Current and Deferred tax are recognised :n Statement of Profit and Loss, except when they relate to items that are recognised in Other Comprehensive Income or directly in equity, in which case, the current and deferred tax are also recognised in Other Comprehensive Income or directly in equity respectively.

i) Current Tax: The Company provides current tax based on the provisions of the Income Tax Act. 1961 applicable to the Company.

ii) Deferred Tax : “Deterred tax is recognised using the Balance Sheet approach. Deterred tax assets end liabilities are recognised for deducted e and taxable temporary differences arising between the tax based of assets and liabilities and their carrying amount Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for oil deductible temporary differences, the carry forward of unused lax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting dare and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be re covered. 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 liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at the reporting date. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.”

r) Provisions, Contingent liabilities. Contingent assets and Commitments:

i) Provisions: The Company recognizes provisions for liabilities and probable losses that have been incurred when it has a present legal or constructive obligation as a result of pest events and it is probable that the Company wiIl be required to settle the obligation and o reliable estimate of the amount of the obligation can be mode. If the effect of the time value of mane/ is material, provisions are discounted using a current pre-tax rote that reflects, where appropriate, the risks specific to the Liability. When discounting is used, the increase -n the provision due to the passage of time is recognized as a financing cost.

ii) Contingent liability is disclosed in the case of:

- A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation:

- A present obligation arising from past events, when no reliable estimate is posssible:

- A possible obligation arising from past events, unless the probability of outflow of resources is remote.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

iii) Other Litigations claims: Provision for litigation related obligation represents liabilities that ore expected to materialise in respect of matters in appeal.

iv) Onerous contracts: Previsions for onerous contracts are recorded n the statements of operations when it becomes known that the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be ‘received.

v) Contingent Assets : Contingent Asserts are not recognised but disclosed in the financial statements when an inflow of economic is probable

s) Exceptional Items:

On certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the company is such that its disclosure improves the understanding of the performance of the company, such income or expense is c ossified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial statements.

t) Earnings per share:

Basic Earnings per share is calculated by dividing the profit from continuing operations and total profit, both attributable to equity shareholders of the Company by the weighted average number of equity shores outstanding during the period. In case there are any dilutive securities during the period presented, the impact of same is giver to arrive at diluted earnings per share.

Diluted earnings per share is computed using the net profit for the year attributable to the shareholder and weighted average number of equity and potential equity shares outstanding during the year including share options, convertible preference shades end debentures, except where the result would be anti-dilutive. Potential equity shares that are converted during the year are included in the calculation of diluted earnings per share, from the beginning of the year or date of Issuance of such potential equity snares, to the date of conversion,

u) Segment accounting:

The company’s business fails within a primary business segment viz .”Manufacturing and Trading of Aluminium Foil in various forms”.

v) Financial statement classification:

Certain line items on the balance sheet and in the statement of Profit and Loss have been combined. These items are disposed separately in the Notes to the financial statements. Certain reclassifications have been made to the prior year presentation to conform to that of the current year. In general the company classifies assets and liabilities as current when they are expected to be realized or settled with in twelve months after the balance sheet date.

w) Fair value measurement:

The Company measures financial instruments such as derivatives and certain ‘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 of 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.

A fair value measurement of a non- financial asset takes in to account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

AI assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole;

- Level 1-Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

- Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

- Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the balance sheet on a recurring basis. the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the lair value measurement us a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

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Mar 31, 2016

1. Basis of Preparation of Financial statements : The Financial Statements have been prepared in accordance with generally accepted accounting principles in India (''Indian GAAP) under the historical cost convention on an accrual basis, except interest on debtors and other claims receivable, which are accounted for on receipt/payment basis, in compliance with all material aspects of the Accounting Standards CAS'') notified under section 133 of The Companies Act, 2013 (the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year, unless otherwise mentioned in the notes. i

2. Use of Estimates: The presentation of financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of financial statements are prudent and reasonable. Further results could differ due to these estimates and the differences between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3. fixed Assets, Intangible Assets and Depreciation:

Fixed assets

Fixed assets are stated at cost of acquisition or construction ( Net of Cenvat credit/Vat) except in case of certain assets which have been revalue at its revalue amount less accumulated depreciation/amortization and impairment losses (if any). All cost relating to the acquisition and installation of assets are capitalized and include attributable finance cost till such assets are ready for its intended to use. j

Cii) Capital Work In Progress

Projects under which assets are not ready for their intended use are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

(iii) Intangible assets (if any) are stated at cost less accumulated amount of amortization. ;

(iv) Depreciation and amortization

Depreciation is provided on the written down value method as per useful life prescribed in Schedule II of the Companies Act, 2013

4. Investments:

(a) Current investments Investment which are readily realizable and intended to be held for not more than one year from the date of such investment. Current investments are carried at lover of cost or fair market value. ''

(b) Long term Investments Long term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

5. Inventories & Other Current Assets:

Inventories as taken and certified by the management are valued as under:

(a) Raw materials, Stores, Spares Parts And fuel : At cortex duding cenvat credit and VAT.

(b) Work in process : A estimated cost depending up on the stage of completion

(valued as certified by the management)

(c) finished & Traded Goods : At cost or net realizable value which ever slower.(Cost price estimated by

deducting approx current G.R rate from the selling price).

(d) Scrap & rejected goods : At net realizable value determined by management

(e) Expott Goods in Transit : At sale invoice value in duding freight thereof. |

(f) Stock in transit/ware house (Purchase) : At purchase price in duding Dearing expenses,

Custom duty paid and incidental expenses thereto.

(g) Returned Material outside factory : At Estimated Net Realizable Value (certified by management).

Note: The cost of raw materials, stores, spare parts & fuel are arrived at on first in first out method and in the case of basic raw material, freight inward

expenses hovel so be unconsidered. j

6. Employee Benefits:

(a) Defined contribution plans : The Company''s contribution to provident fund and employee state insurance are considered as defined

contribution plans and are charged as an expense as they fall due based on the amount of contribution required to I be made. |

(b) Defined benefit plans : (a) Gratuity payable to employees is provided on the basis of premium paid under group gratuity scene with Life

Insurance Corporation of India. i

(b) Provision for Leave encashment has been made on accrual basis on leave un-availed as on 31.03.2016.

(c) Service awards have been adjusted/accounted on the basis of completed months of service provided by I employees.

(c) Short-term employee Benefits: - Short term employee benefits are recognized as an expense at the undiscounted amount in (ho statement of profit and loss for the year in which the related service is rendered.

7. Borrowing Costs : 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 necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

8. Revenue Recognition:

(a) Sales are inclusive of Cenvat but are net of Sales returns, Shortages and other discounts & rebates but excluding value of recoveries made for insurance, freight and packing forwarding expenses, which have been shown in the invoice value and are adjusted in the respective heads.

(b) Discount and rebates on sales is accounted for sand when settled.

(C) Export sales are accounted for, on the basis of exchange rate of LEO Date (Let Export Order) of transactions and recognized as and when Risk & Rewards are transferred.

(dl Revenue from investment is accounted on sale/disposal of such investments.

(e) Export Incentive: (i) Revenue from DEPB Licenses is recognized when the licenses are sold / utilized and are shown as other incomes, (ii) Revenue of duly drawback has been accounted on accrual basis.

(f) Units generated on Emerson wind power plant has been accounted on the basis of effective tariff rate in respective month. Units generated on Salon wind power plant has been accounted at contract price on accrual basis.

(g) Interest receivable from Trade Receivables and dividend from investments are accounted on receipt basis.

(h) The Company has purchased DEPB Licenses from market at discounts and the same has been shown as Discounts received on purchase of DEPB in other income.

9. Transaction in Foreign Currencies (Other than for fixed assets):

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Gain/Loss arising out of fluctuation in between transaction date and realization date are recognized in profit & toss account.

(b) All foreign currency Monetary items at the year-end which not covered by foreign exchange contracts are translated at year-end rates.

(c) Foreign Exchange Gain/Loss of buyer''s credit taken from foreign bank has been recognized at the date of transaction and recognized in profit & loss account.

10. Impairment of Assets : All assets other than inventory, investment or deferred tax assets are reviewed for impairment where event or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying amount exceeds their recoverable amount will be written down to recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired.

11. Accounting of Taxes on Income: Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "Timing Differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.

12. Contingent Liabilities : The company is not providing for contingent liabilities in the account since the ultimate outcome thereof cannot be determined on the date of take fiancé sheet. However, notes on every contingent liabilities exist on the date of balance sheet are given in notes to accounts. Contingent assets are neither recognized nor disclosed in the balance sheet.

13. Earnings Per Share: Basic and diluted earnings per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted number of equity shares outstanding during the year.

14. Lease: Lease rentals under an operating lease, are recognized as an expenses in the statement of Profit & Loss Account on a straight line basis over the lease term. Lease Income from Operating lease is recognized in Profit & Loss Account on a Straight line basis over the Lease Term.

15. Accounting of Financial Instruments: The Premium or Discount arose due to difference between spot and forward rate on Forward Exchange Contracts, which are taken to hedge foreign currency risk of an existing asset/liability, is recognized over the period of contract Premium/ discount on the above FEC for the expired as income/ expenditure in the statement of profit & loss and for unexpired period as on balance sheet date are shown as Financial Asset & Liability & Amount receivable and payable under the Forward Exchange Contract is booked as liabilities and assets accordance with Accounting Standard-31 aims the same has also been subsequently recognized as per Accounting Standard-11.

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Mar 31, 2015

1. Basis of Preparation of financial statements : The Financial Statements have been prepared In accordance with generally accepted accounting principles in India ('Indian GAAP1} under the historical cost convention on an accrual basis, except interest on debtors and other claims receivable, which are accounted for on receipt/payment basis, in compliance with all material aspects of the Accounting Standards CAS1) notified under section 133 of The Companies Act, 2013 (The Act") read with Rule 7 of the Companies (Accounts) Rules, 2014. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year, unless otherwise mentioned in the notes.

2. Use of Estimates: The presentation of financial statements requires estimates and assumptions to be made that affect the repotted amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimate sari recognized in the period in which the results are known /materialized.

3. Fixed Assets, Intangible Assets and Depreciation:

(i) (a) fixed assets are stated at cost of acquisition or construction less depreciation. AH cost relating to the acquisition & installation are capitalized.

(bi Addition in fixed assets is stated at cost net of VAT and Cenvat credit, Custom duty (where applicable). Atl cost relating to acquisition and installation of fixed asset are capitalized.

(c) Agricultural land is shown at cost price.

(ii- Till the year ended 31 March 2014, Schedule XIV to the Companies Act, 1956, prescribed requirements concerning depreciation of fixed assets. From the current year, Schedule XIV has been replaced by Schedule El to the Companies Act, 2013. The applicability of Schedule II has resulted in the following changes related to depreciation of fixed assets. Unless stated otherwise, the impact mentioned for the current year is likely to hold good for future years also.

(a) Useful lives/ depreciation rates

Till the year ended 31 March 2014, depreciation rates prescribed under Schedule XIV were treated as minimum rates and the company was not allowed to charge depreciation at lower rates even if such lower rates were justified by the estimated useful life of the asset Schedule If to the Companies Act 2013 prescribes useful lives for fixed assets which, in many cases, are different from fives prescribed under the erstwhile Schedule XIV. However, Schedule II allows companies to use higher/ lower useful lives and residual values if such useful lives and residual values can be technically supported and justification for difference is disclosed in the financial statements.

Considering the applicability of Schedule II, the management has re-estimated useful lives and residual values of all its fixed assets. The management believes that depreciation rates currently used fairy reflect its estimate of these full versa residual values of fixed assets, though these rates in certain cases are different from lives prescribed under Schedule II. Hence, this change in accounting policy did not have any material impact on financial statements of the company.

(b) Accounting for additional depreciation on account of revaluation of assets On 31 March 1993, the company revalued all its land and buildings «ustingasontrBtdate.TiByearended31 March2014,rheCuidance Note on Treatment of Reserve Created on Revaluation of fixed Assets issued by the 1CAI allowed companies to transfer an amount equivalent to the additional depreciation arising due to upward revaluation of fixed assets from revaluation reserve to the statement of profit and loss. Accordingly, the company was transferring an amount equivalent to additional depreciation arising due to upward revaluation of building from revaluation reserve to the statement of profit and loss. In contrast, Schedule II to the Companies Act, 2013 applicable from the current year, states that depreciable amount of an asset is the cost of an asset or other amount substituted for cost. Hence, in case of revalued assets, depreciation computed on the revalued amount needs to be charged to the statement of profit and loss, without any recoupment from revaluation reserve. Consequently, to comply with die Schedule II requirement, the company has discontinued the practice of recouping the impact of additional depreciation from revaluation reserve. The management has decided to apph/there vied counter policy prospectively from Apri12014.

Had the company continued its earlier policy of recouping die additional depreciation arising due to upward revaluation of fixed assets from revaluation assets, profits for the current year would have been on higher side. However, the change in accounting policy did not have any impact tin reserves and surplus as at 31 March 2015.

(c) Depreciation on assets cooing less than 5,000/-

Tilt year ended 31 March 2014, to comply with the requirements of Schedule XIV to the Companies Act, 1956, the company was charging 100% depreciation on assets costing less than S,000/- in the year of purchase. However, Schedule II to the Companies Act 2013, applicable from the current year, does not recognize such practice. Hence, to comply with the requirement of Schedule II to the Companies Act, 2013, the company has changed its accounting policy for depreciations of assets costing less than 5,000/-. As per the revised policy, the company is depreciating such assets over their useful life as assessed by die management. The management has decided to apply the revised accounting policy prospectively from accounting periods commencing on or after 1 April 2014.

The change in accounting for depreciation of assets costing less than 5,000/- did not have any material impact on financial statements of tile company for the current year.

(iii) Fixed assets acquired in exchange or in part exchange for another asset are recorded at the net book value of the assets given up, adjusted for any balancing payment or recap of cash or on snider a on.

(iv) Capital Assets under erection,1nstallation/construction are reflected in the Balance sheet as "Capital Work in Progress'.

4. Purchases: Purchase of all Raw materials, Aluminum wire Rods, glassine paper, packing material, Oil & Lubricants, Cash Cylinder, production, mechanical & Electrical stores, Polythene and polyester film & paper are accounted for on basic price & CST. Convert and VAT paid on purchase of above items are shown as Convert recoverable & VAT recoverable and the same is to be adjusted against the Exose/Sa les Tax liabilities.

5. Investments: Short term investments are stated at cost or market price, whichever is lower.

Long term Investments are stated at oost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

6. Inventories & Other Current Assets:

Inventories as taken and certified by the management are valued as under:

(a) Raw materials, dyes & Chemicals At cost excluding convert credit and VAT.

Packing material, Polyester Him, paper and Polythene

(b) Production, Electrical, and Mechanical and : At Cost excluding Convert, Service Tax & VAT

consumable store & spares

(c) Oil & lubricants : At cost excluding excise duty except HSD.

(d) Write process: At estimated cost value deserter feed by the management.

(e) Aluminum wire rods : At cost or market price which ever is lower.

(f) Scrap & rejected goods : At net realizable value determined by management.

(g) Finished goods : Valuation of finished goods manufactured but not cleared from excise bonded warehouse up to the end of the year is at cost or market price, whichever is lower inclusive of Excise Duty. (Cost price estimated by deducting approx 9.44% from the selling price)

(h) Stock at port& in transit At Selling price

(i) Stock in transit/ware house{Purchase) : At purchase price including clearing expenses, custom duty paid and incidental expenses thereto.

(j) DEPB licenses Purchased : At cost.

(W Gas Cylinder : At cost

(I) Returned Material outside factory At Estimated Net Realizable Value (certified by management).

(m) Export Goods in Transit ; At sale invoice value Including regret there of.

Note:

The cost of raw materials, dyes, chemicals, packing material, oil & lubricant and consumable stores are arrived at on first in first out method and in the case of basic raw material, freight inward expenses have also been considered.

7. Expenditure:

(a) All other expenses are accounted for on accrual basis and consumption of stores has been taken on actual consumption.

(b) Power unit generated from £ neuron wind power plant which has been wheeled for captive consumption after adjusting wheeling charges® 10% of the energy fed into grid to RVPNL Disco(s) is accounted on effective tariff rate in power bill and simultaneously such figure was also reflected in other income.

8. Employee Benefits:

(a) Defined contribution plans : The Company's contribution to provident fund and employee state insurance are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

(b) Defined benefit plans : (a) Gratuity payable to employees is provided on the basis of premium paid under group gratuity scheme with Life Insurance Corporation of India.

(b) Provision for Leave encashment has been made on accrual basis on leave un-availed son 31.03.2015.

(c- Service awards have been adjusted/accounted on the basis of completed months of service provided by employees.

(c) Short-term employee benefits : Short term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered.

9. Borrowing Cowls: 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 mat resserch lacks. charged to revenue.

10. Revenue Recognition:

(a) Sales are inclusive of Convert but are net of Sales returns, Shortages and other discounts & rebates but excluding value of recoveries made for insurance, freight and package for warding expenses, which have been shown in die invoice value and are adjusted in die respective heads,

(b) Discount and rebate son sales is accounted for as and when settled.

let Export sales are accounted for, on the basis of exchange rate of LEO Date (Let Export Order) of transactions and recognized as and when Risk & Rewards are transferred.

(d) Revenue from investment is accounted on sale/disposal of such investments.

(e) Export Incentive: (i) Revenue from DEPB Licenses is recognized when the licenses are sold / utilized and are shown as other incomes,

(ii) Revenue of duty drawback has been accounted on accrual basis.

(f) Units generated on wind power plant has been accounted at contract price on accrual basis.

(g) Interest receivable from Trade Receivables and dividend from investments area counted on receipt basis.

(h) The Company has purchased DEPB Licenses from market at discounts and the same has been shown as Discounts received on purchase of DEPB in other income.

11. Transaction in Foreign Currencies (Other than for fixed assets):a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Gain/Loss arising out of fluctuation in between transaction date and realization date are recognized in profit & loss account

(b) All foreign currency Monetary items at the year-end which not covered by foreign exchange contracts are translated at year-end rates.

(c) Foreign Exchange Gain/Loss of buyer's credit taken from foreign bank has been recognized at the date of transaction and recognized in profit & loss account

12. Impairment of Assets: AS assets other than inventory, investment or deferred tax assets are reviewed to impaired - circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying amount exceeds their recoverable amount will be written down to recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset Is identified as impaired.

13. Convert, Service Tax & VAT or The value of Convert, Service Tax and VAT credit benefits eligible on raw materials, other eligible inputs, production stores and capital goods is considered for die clearances of finished goods

14. Accounting of Taxes on Income: Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax resulting from 'Timing Differences between and taxable profits accounted for using the tax rates and laws that the been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.

15. Contingent liabilities : The company is not providing for contingent liabilities in the account since the ultimate outcome thereof cannot be determined the date of balance sheet Flowered, notes on every cons gem Sanities exist on me due of balance sheet are given in notes to ¦ accounts. Contingent assets are neither recognized Nordic dosed in the balance sheet.

16. Earnings Per Share : Basic and diluted earning per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted number of equity shares outstanding during the year.

17. Lease: Lease rentals under an operating lease, are receded as an expend the lease term. Lease Income from Operating lease is recognized in Profit & Loss Account on a Straight line basis over the Lease Term.

18. Accounting of Financial Instruments: The Premium or Discount arose due to difference between spot and forward rate on Forward Exchange Contracts, which are taken to hedge foreign currency risk of an existing asset/liability, is recognized over the period of contract. Premium/ discount on the above FEC forth expired period is booked as income/ expenditure in die statement of profit & loss and for unexpired period as on balance sheet date are shown as Financial Asset & Liability & Amount receivable and payable under the Forward Exchange Contract is booked as liabilities and assets accordance with Accounting Standard-31 and the same has also been subsequently recognized as per Accounting Standard-11

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Mar 31, 2014

1. Basis of Preparation of Financial statements : The Financial Statements have been prepared in accordance with Indian Generally Accepted accounting principles (GAAP) , generally under the historical cost convention on accrual basis except insurance, Interest on debtors and other claims receivable, which are accounted for on receipt/payment basis. GAAP comprises of mandatory Accounting Standards notified by companies (Accounting Standards) Rules 2006 and relevant provisions of the companies Act 1956, the Guidelines issued by ICAI and Securities and Exchange Board of India (SEBI). Accounting Policies have been consistently adopted except where a change in existing GAAP requires a change in accounting policy hitherto in use.

2. Use of Estimates : The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognized in the period in which the results are known /materialised.

3. Fixed Assets, Intangible Assets and Depreciation :

(i) (a) Fixed assets are stated at cost of acquisition or construction less depreciation. All cost relating to the acquisition & installation are capitalized.

(b) Addition in Fixed assets is stated at cost net of VAT and Cenvat credit, Custom duty (where applicable). All cost relating to acquisition and installation of fixed asset are capitalized.

(c) Agricultural land is shown at cost price.

(ii) Revalued assets are recorded at revalued amount less depreciation on revalued amount.

(iii) (a) Depreciation on fixed assets is provided on written down value basis at the rates and in the manner prescribed in Schedule XIV of Companies

Act, 1956. Depreciation in respect of revalued amount, the additional depreciation attributable to revaluation is withdrawn from revaluation reserve. Depreciation on addition in fixed assets has been adjusted after deducting the amount of excise duty & VAT availed as Cenvat and VAT set off.

(b) Depreciation on assets added / disposed off during the year has been provided on prorata basis with reference to date of addition / disposed except for items on which 100% depreciation rate are applicable.

(iv) Fixed assets acquired in exchange or in part exchange for another asset are recorded at the Net book value of the assets given up, adjusted for any balancing payment or receipt of cash Or other consideration.

(v) Capital Assets under erection/installation/construction are reflected in the Balance sheet as "Capital Work in Progress".

4. Purchases : Purchase of all Raw materials, Aluminium wire Rods, glassine paper, packing material, Oil & Lubricants, Gas Cylinder, production , mechanical & Electrical stores, Polythene and polyester film & paper are accounted for on basic price & CST. Cenvat and VAT paid on purchase of above items are shown as Cenvat recoverable & VAT recoverable and the same is to be adjusted against the Excise/Sales Tax liabilities.

5. Investments : Short term investments are stated at cost or market price, whichever is lower.

Long term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

Dividends reinvested are added to the cost of investments on the NAV of the date of distribution of dividend by mutual funds

6. Inventories & Other Current Assets :

Inventories as taken and certified by the management are valued as under:

(a) Raw materials, dyes & Chemicals : At cost excluding Packing material, Polyester Film, cenvat credit and VAT. Paper and Polythene

(b) Production, Electrical, and Mechanical and consumable store & spares : At cost excluding Cenvat, Service Tax & VAT

(c) Oil & lubricants : At cost excluding excise duty except HSD.

(d) Work in process : At estimated cost (valued as certified by the management.)

e)Aluminium wire rods : At cost or market price whichever is lower.

(f) Scrap & rejected : At net realizable value determined by goods management.

(g) Finished goods : Valuation of finished goods manufactured but not cleared from excise bonded

warehouse up to the end of the year is at cost or market price, whichever is lower inclusive of Excise Duty. (Cost price estimated by deducting approx 7.00% from the selling price).

(h) Stock at port & in transit : At Selling price

(i) Stock in transit/ware house(Purchase) : At purchase price including clearing expenses and custom duty paid.

Custom duty paid.

(j) DEPB licences Purchased : At cost.

(k) Gas Cylinder : At cost

(l) Returned Material outside factory : At Estimated Net Realizable Value (certified by management).

(m) Export Goods in Transit : At sale invoice value including freight thereof.

Note: The cost of raw materials, dyes, chemicals, packing material, oil & lubricant and consumable stores are arrived at on first in first out method and in the case of basic raw material, freight inward expenses have also been considered.

7. Expenditure :

(a) All other expenses are accounted for on accrual basis and consumption of stores has been taken on actual consumption.

(b) Power unit generated from Enercon wind power plant which has been wheeled for captive consumption after adjusting wheeling charges @ 10% of the energy fed into grid to RVPNL Discom(s) is accounted on effective tariff rate in power bill and simultaneously such figure was also reflected in other income.

8. Employee Benefits :

(a) Defined contribution plans :

The Company''s contribution to provident fund and employee state insurance are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

(b) Defined benefit plans :

Gratuity payable to employees is provided on the basis of premium paid under group gratuity scheme with Life Insurance Corporation of India .Provision for Leave encashment has been made on accrual basis on leave un- availed as on 31.03.2014.Service awards have been adjusted/accounted on the basis of completed months of service provided by employees.

(c) Short-term employee benefits : Short term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered.

9. Borrowing Costs : 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 necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue

10. Revenue Recognition :

(a) Sales are inclusive of Cenvat but are net of Sales returns, Shortages and other discounts & rebates but excluding value of recoveries made for insurance, freight and packing forwarding expenses, which have been shown in the invoice value and are adjusted in the respective heads.

(b) Discount and rebates on sales is accounted for as and when settled.

(c) Export sales are accounted for, on the basis of exchange rate of LEO Date (Let Export Order) of transactions and recognized as and when Risk & Rewards are transferred.

(d) Revenue from investment is accounted on sale/disposal of such investments.

(e) Export Incentive: (i) Revenue from DEPB Licenses is recognized when the licenses are sold / utilized and are shown as other incomes. (ii) Revenue of duty drawback has been accounted on accrual basis.

(f) Units generated on Enercon wind power plant has been accounted on the basis of effective tariff rate in respective month. Units generated on Suzlon wind power plant has been accounted at contract price on accrual basis.

(g) Interest receivable from Trade Receivables and dividend from investments are accounted on receipt basis.

(h) The Company has purchased DEPB Licenses from market at discounts and the same has been shown as Discounts received on purchase of DEPB in other income.

11. Transaction in Foreign Currencies (Other than for fixed assets) : Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Gain/Loss arising out of fluctuation in between transaction date and realization date are recognized in profit & loss account.

All foreign currency Monetary items at the year-end which not covered by foreign exchange contracts are translated at year-end rates.

Foreign Exchange Gain/Loss of buyer''s credit taken from foreign bank has been recognized at the date of transaction and recognized in profit & loss account.

12. Impairment of Assets : All assets other than inventory, investment or deferred tax assets are reviewed for impairment where event or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying amount exceeds their recoverable amount will be written down to recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired.

13. Cenvat, Service Tax & VAT : The value of Cenvat, Service Tax and VAT credit benefits eligible on raw materials, other eligible inputs, production stores and capital goods is considered for the clearances of finished goods.

14. Accounting of Taxes on Income : Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "Timing Differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future..

15. Contingent Liabilities : The company is not providing for contingent liabilities in the account since the ultimate outcome thereof cannot be determined on the date of balance sheet. However, notes on every contingent liabilities exist on the date of balance sheet are given in notes to accounts. Contingent assets are neither recognized nor disclosed in the balance sheet.

16. Earnings Per Share : Basic and diluted earning per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted number of equity shares outstanding during the year.

17. Lease: Lease rentals under an operating lease, are recognized as an expenses in the statement of Profit & Loss Account on a straight line basis over the lease term. Lease Income from Operating lease is recognized in Profit & Loss Account on a Straight line basis over the Lease Term.

18. Accounting of Financial Instruments: The Premium or Discount arose due to difference between spot and forward rate on Forward Exchange Contracts, which are taken to hedge foreign currency risk of an existing asset/liability, is recognized over the period of contract. Premium/ discount on the above FEC for the expired period is booked as income/ expenditure in the statement of profit & loss and for unexpired period as on balance sheet date are shown as Financial Asset & Liability & Amount receivable and payable under the Forward Exchange Contract is booked as liabilities and assets accordance with Accounting Standard-31 and the same has also been subsequently recognized as per Accounting Standard-11.

(i) The Company has only one class of equity shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share.

(ii) In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

Note: (i) Unpaid dividend of Rs.15,00,000.00/- has not been deposited with the Scheduled Bank in Unpaid Dividend Account,since the ownership of the shares is sub-judise in city civil court at Ahemdabad. And Rs. 8,500/- of others has also not been deposited. (ii) Statutory Remittances includes Rs.7,88,101/- of Entry Tax payable 2006-07. Interest liability of the same has not been provided for, as the appeal is pending before DC (Appeal)

Note:- (i) Unclaimed dividend includes Rs.445384.00/- for F.Y. 2007-08 and Rs345462.00/- for F.Y. 2010-11.

(ii) Statutory remittance includes Rs. 1,03,73,210/- of demand for C-Form Raised for the Year 2011-12 by Sales Tax Authorities.

Note:- Balances with government includes a sum of Rs.6,00,000/- was deposited by the company as pre-deposit of penalty as per directions given by the Custom Excice & Gold (control) Appellate New Delhi by order dated 03.02.2003 against total amount of penalty of Rs.25 lacs to be deposited by Shri Pankaj P Shah(Managing Director) and Shri Ashok P. Shah(Ex-Director) of the company,the appeal has been dismissed by the tribunal.The company has filed an appeal before High Court. Matter is still pending.

Note (i) Balances with Covt.Authorities includes Rs.38,00,000/- deposited against demand of Rs.1,16,51,284/- for safeguard duty, redemtion fine and penalty. Liability for the balance amount has not been provided for, as the same stayed by the Commisioner of Central Excise (Appeal). Note (ii) Balances with Govt.Authorities includes Rs.38,98,883/- deposited against demand of Rs.88,58,238/- for safeguard duty, and valuation. Liability for the balance amount has not been provided for, as the same demanded by the CESTAT.

---

Mar 31, 2013

1. Basis of Preparation of Financial statements : The Financial Statements have been prepared in accordance with Indian Generally Accepted accounting principles (GAAP), generally under the historical cost convention on accrual basis except insurance, Interest on debtors and other claims receivable, which are accounted for on receipt/payment basis. GAAP comprises of mandatory Accounting Standards notified by companies (Accounting Standards) Rules 2006 and relevant provisions of the companies Act 1956, the Guidelines issued by ICAI and Securities and Exchange Board of India (SEBI). Accounting Policies have been consistently adopted except where a change in existing GAAP requires a change in accounting policy hitherto in use.

2. Use of Estimates: The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognized in the period in which the results are known/materialised.

3. Fixed Assets, Intangible Assets and Depreciation:

(i) (a) Fixed assets are stated at cost of acquisition or construction less depreciation. All cost relating to the acquisition & installation of fixed assets are capitalized.

(b) Addition in Fixed assets is stated at cost net of VAT and Cenvat credit, Custom duty (where applicable). All cost relating to acquisition and installation of fixed assetare capitalized.

(c) Agricultural land is shown at cost price.

(ii) Revalued assets are recorded at revalued amount less depreciation on revalued amount.

(iii) (a) Depreciation on fixed assets is provided on written down value basis at the rates and in the manner prescribed in Schedule XIV of Companies Act, 1956. Depreciation in respect of revalued amount, the additional depreciation attributable to revaluation is withdrawn from revaluation reserve. Depreciation on addition in fixed assets has been adjusted after deducting the amount of excise duty & VAT availed as Cenvat and VAT setoff.

(b) Depreciation on assets added / disposed off during the year has been provided on prorata basis with reference to date of addition / disposed except for items on which 100% depreciation rate are applicable.

(iv) Fixed assets acquired in exchange or in part exchange for another asset are recorded at the net book value of the assets given up, adjusted for any balancing payment or receipt of cash or other consideration. (v) Capital Assets under erection/installation/construction are reflected in the Balance sheet as"Capital Work in Progress".

4. Purchases : Purchase of all Raw materials, Aluminium wire Rods, glassine paper, packing material, Oil & Lubricants, Gas Cylinder, production , mechanical & Electrical stores, Polythene and polyester film & paper are accounted for on basic price & CST. Cenvat and VAT on purchase of these items is shown as Cenvat recoverable & VAT recoverable is adjusted against the Excise/Sales Tax liabilities.

5. Investments: Short term investments are stated at cost or market price, whichever is lower.

Long term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

Dividends reinvested are added to the cost of investments on the NAV of the date of distribution of dividend by mutual funds

6. Inventories & Other Current Assets:

Inventories as taken and certified by the management are valued as under:

(a) Raw materials, dyes & Chemicals : At cost excluding cenvat credit and VAT. packing material, Polyester Film, Paper and Polythene

(b) Production, Electrical, Mechanical and : At cost excluding cenvat credit & VAT consumable store & spares

(c) Oil & lubricants : At cost excluding excise duty except HSD.

(d) Work in process Atestimated cost (valued asoertified by the management.)

(e) Aluminium wire rods : At cost or market price whichever is lower.

(0 Scrap & rejected goods : At net realizable value determined by management.

(g) Finished goods : Valuation of finished goods Manufactured but not cleared from excise bonded warehouse up to the end of the year is at cost or market price, whichever is lower inclusive of Excise Duty. (Cost price estimated by deducting approx 3% & 8.75% from the selling price).

(h) Stock at port & in transit : At Selling price

(i) Stock in transit/ware house (Purchase) : Atpurchasepriceincludingclearingexpensesandcustomdutypaid.

(j) DEPB licences Purchased : At cost.

(k) Gas Cylinder : At cost

(I) Returned Material outside factory : At Net Realisable Value on the basic sale price soldor at price certified by management.

(m) ExportGoods in Transit : Atsaleinvoicevalueincludingfreighttheirof.

Note: The cost of raw materials, dyes, chemicals, packing material, oil & lubricant and consumable stores are arrived at on first in first out method and in the case of basic raw material, freight inward expenses have also been considered.

7. Expenditure:

(a) All other expenses are accounted for on accrual basis and consumption of stores has been taken on actual consumption.

(b) Power unit generated from Enercon wind power plant which has been wheeled for captive consumption after adjusting wheeling charges @ 10% of the energy fed into grid to RVPNL Discom(s) is accounted on effective tariff rate in power bill and simultaneously such figure was also reflected in other income.

8. Employee Benefits:

(a) Defined contribution plans : The Company''s contribution to provident fund and employee state insurance are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

(b) Defined benefit plans : Gratuity payable to employees is provided on the basis of premium paid under group gratuity scheme with Life Insurance Corporation of India. Provision for Leave encashment has been made on accrual basis on leave un- availed as on 31.03.2013.Service awards have been adjusted/accounted on the basis of completedmonths of service provided by employees..

(c) Short-term employee benefits : Short term employee benefits are recognized as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered.

9. Borrowing Costs : 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 necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

10. Revenue Recognition:

(a) Sales are inclusive of Cenvat but are net of Sales returns, Shortages and other discounts & rebates but excluding value of recoveries made for insurance, freight and packing forwarding expenses, which have been shown in the invoice value and are adjusted in the respective heads.

(b) Discount and rebates on sales is accounted for as and when settled.

(c) Export sales are accounted for on the basis of exchange rate on date of transactions and recognized only when export goods leaves the territory of India.

(d) Revenue from investment is accounted on sale/disposal of such investments.

(e) Export Incentive: (i) Revenue from DEPB Licences is recognised when the licences are sold / utilized and are shown as other incomes,

(ii) Revenue of duty drawback has been accounted on accrual basis.

(f) Units generated on Enercon wind power plant has been accounted on the basis of effective tariff rate in respective month. Units generated on Suzlon wind power plant has been accounted at contract price

(g) Interest receivable from debtor and dividend from investment are considered on receipt basis.

(h) The Company has purchased DEPB Licenses from market at discounts and the same has been shown as Discounts received on purchase of DEPB in other income.

11. Transaction in Foreign Currencies (Other than for fixed assets) : Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Cain/Loss arising out of fluctuation in between transaction date and realization date are recognized in profit & loss account.

All foreign currency Monetary items at the year-end which not covered by foreign exchange contracts are translated atyear-end rates.

The difference between the foreign exchange contract rate and the exchange rate on the date of transaction is recognized as income or expenditure over the life of the contract.

Foreign Exchange Cain/Loss of buyer''s credit taken from foreign bank has been recognized at the date of transaction and recognized in profit & loss account

12. Impairment of Assets:

All assets other than inventory, investment or deferred tax assets are reviewed for impairment where event or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying amount exceeds their recoverable amount will be written down to recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired.

13. Cenvat and VAT:

The value of Cenvat and VAT benefits eligible on raw materials, other eligible inputs, production stores and capital goods is considered for the clearances of finished goods.

14. Accountingof Taxes on Income.-

Provision for currenttax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.

15. Contingent Liabilities:

The company is not providing for contingent liabilities in the account since the ultimate outcome thereof cannot be determined on the date of balance sheet. However, notes on every contingent liabilities exist on the date of balance sheet are given in notes on account. Contingent assets are neither recognized nor disclosed in the balance sheet.

16. Earnings Per Share:

Basic and diluted earning per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted numberof equitysharesoutstandingduringtheyear.

17. Lease:

Lease rentals under an operating lease, are recognized as an expenses in the statement of Profit & Loss Account on a straight line basis over the lease term. Lease Income from Operating lease is recognized in Profit & Loss Account on a Straight line basis over the Lease Term.

---

Mar 31, 2012

1. Basis of Preparation of Financial statements : The Financial Statements have been prepared in accordance with Indian Generally Accepted accounting principles (GAAP), generally under the historical cost convention on accrual basis except insurance, Interest on debtors and other claims receivable, which are accounted for on receipt/payment basis. GAAP comprises of mandatory Accounting Standards notified by companies (Accounting Standards) Rules 2006 and relevant provisions of the companies Act 1956, the Guidelines issued by ICAI and Securities and Exchange Board of India (SEBI). Accounting Policies have been consistently adopted except where a change in existing GAAP requires a change in accounting policy hitherto in use.

2. Use of Estimates : The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognized in the period in which the results are known/materialised.

3. Fixed Assets, Intangible Assets and Depreciation :

(i) (a) Fixed assets are stated at cost of acquisition or construction less depreciation. All cost relating to the acquisition & installation of fixed assets are capitalized.

(b) Addition in Fixed assets is stated at cost net of VAT and Cenvat credit, Custom duty (where applicable). All cost relating to acquisition and installation of fixed asset are capitalized.

(c) Agricultural land is shown at cost price.

(ii) Revalued assets are recorded at revalued amount less depreciation on revalued amount.

(iii) (a) Depreciation on fixed assets is provided on written down value basis at the rates and in the manner prescribed in Schedule XIV of Companies Act, 1956. Depreciation in respect of revalued amount, the additional depreciation attributable to revaluation is withdrawn from revaluation reserve. Depreciation on addition in fixed assets has been adjusted after deducting the amount of excise duty & VAT availed as Cenvat and VAT set off.

(b) Depreciation on assets added/disposed off during the year has been provided on prorata basis with reference to date of addition/disposed except for items on which 100% depreciation rate are applicable.

(iv) Fixed assets acquired in exchange or in part exchange for another asset are recorded at the net book value of the assets given up, adjusted for any balancing payment or receipt of cash or other consideration.

(v) Capital Assets under erection/installation/construction are reflected in the Balance sheet as "Capital Work in Progress".

4. Purchases : Purchase of all Raw materials, Aluminium wire Rods, glassine paper, packing material, Oil & Lubricants, Gas Cylinder, production, mechanical & Electrical stores, Polythene and polyester film & paper are accounted for on basic price & CST. Cenvat and VAT on purchase of these items are shown as Cenvat recoverable & VAT recoverable is adjusted against the Excise/Sales Tax liabilities.

5. Investments : Short term investments are stated at cost or market price, whichever is lower.

Long term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

Dividends reinvested are added to the cost of investments on the NAV of the date of distribution of dividend by mutual funds.

6. Inventories & Other Current Assets :

Inventories as taken and certified by the management are valued as under:

(a) Raw materials, dyes & Chemicals : At cost excluding cenvat credit and VAT. packing material, Polyester Film, Paper and Polythene

(b) Production, Electrical, Mechanical and : At cost excluding cenvat credit & VAT consumable store & spares

(c) Oil & lubricants : At cost excluding excise duty except HSD.

(d) Work in process : At estimated cost (valued as certified by the management.)

(e) Aluminium wire rods : At cost or market price whichever is lower.

(f) Scrap & rejected goods : At net realizable value determined by management.

(g) Finished goods : Valuation of finished goods Manufactured but not cleared from excise bonded warehouse up to the end of the year is at cost or market price, whichever is lower inclusive of Excise Duty. (Cost price estimated by deducting approx 8.75% from the selling price).

(h) Stock at port & in transit : At Selling price

(i) Stock in transit/ware house (Purchase) : At purchase price including clearing expenses and custom duty paid.

(j) DEPB licences Purchased : At cost.

(k) Gas Cylinder : At cost

(l) Returned Material outside factory : At Net Realisable Value on the basic sale price solder at price certified by management.

(m) Stock with Consignment Agent : At cost (estimated by deducting 8.75% from the selling price) plus excise and expenses as per Invoice.

Note: The cost of raw materials, dyes, chemicals, packing material, oil & lubricant and consumable stores are arrived at on first in first out method and in the case of basic raw material, freight inward expenses have also been considered.

7. Expenditure :

(a) All other expenses are accounted for on accrual basis and consumption of stores has been taken on actual consumption.

(b) Power unit generated from Enercon wind power plant which has been wheeled for captive consumption after adjusting wheeling charges @ 10% of the energy fed into grid to RVPNL Discom(s) is accounted on effective tariff rate in power bill and simultaneously such figure was also reflected in other operating revenue.

8. Employee Benefits :

(a) Defined contribution plans : The Company's contribution to provident fund is considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

(b) Defined benefit plans : Gratuity payable to employees is provided for on the basis of premium paid under group gratuity Scheme with Life Insurance Corporation of India.

Provision of Leave encashment has been made on accrual basis on leave un-availed balance available as on 31.03.2012.

Service Awards have been adjusted/accounted on the basis of completed months.

(c) Short-term employee benefits : Short term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered.

9. Borrowing Costs : 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 necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

10. Revenue Recognition :

(a) Sales are inclusive of Cenvat but are net of Sales returns, Shortages and other discounts & rebates but excluding value of recoveries made for insurance, freight and packing forwarding expenses, which have been shown in the invoice value and are adjusted in the respective heads.

(b) Discount and rebates on sales is accounted for as and when settled.

(c) Export sales are accounted for on the basis of exchange rate on date of transactions and recognized only when export goods leaves the territory of India.

(d) Revenue from investment is accounted on sale/disposal of such investments.

(e) Export Incentive: (i) Revenue from DEPB Licences is recognised when the licences are sold/utilized and are shown as other operating revalue. (ii) Revenue of duty drawback has been accounted on accrual basis.

(f) Units generated on Enercon wind power plant has been accounted on the basis of effective tariff rate in respective month. Units generated on Suzlon wind power plant has been accounted at contract price

(g) Interest receivable from debtor and dividend from investment are considered on receipt basis.

(h) The Company has purchased DEPB Licenses from market at discounts and the same has been shown as Discounts received on purchase of DEPB in other income.

11. Transaction in Foreign Currencies (Other than for fixed assets) : Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Gain/Loss arising out of fluctuation in between transaction date and realization date are recognized in statement of profit & loss.

All foreign currency Monetary items at the year-end which not covered by foreign exchange contracts are translated at year-end rates.

The difference between the foreign exchange contract rate and the exchange rate on the date of transaction is recognized as income or expenditure over the life of the contract.

Foreign Exchange Gain/Loss of buyer's credit taken from foreign bank has been recognized at the date of transaction and recognized in statement of profit & loss.

12. Impairment of Assets :

All assets other than inventory, investment or deferred tax assets are reviewed for impairment where event or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying amount exceeds their recoverable amount will be written down to recoverable amount. An impairment loss is charged to the statement of Profit and Loss in the year in which an asset is identified as impaired.

13. Cenvat and VAT :

The value of Cenvat and VAT benefits eligible on raw materials, other eligible inputs, production stores and capital goods is considered for the clearances of finished goods

14. Accounting of Taxes on Income :

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.

15. Contingent Liabilities :

The company is not providing for contingent liabilities in the account since the ultimate outcome thereof cannot be determined on the date of balance sheet. However, notes on every contingent liabilities exist on the date of balance sheet are given in notes on account. Contingent assets are neither recognized nor disclosed in the balance sheet.

16. Earnings Per Share :

Basic and diluted earning per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted number of equity shares outstanding during the year.

17. Lease:

Lease rentals under an operating lease, are recognized as an expenses in the statement of Profit & Loss on a straight line basis over the lease term. Lease Income from Operating lease is recognized in statement of Profit & Loss on a Straight line basis over the Lease Term.

---

Mar 31, 2011

1.Basis of Accounting: The Financial Statements have been prepared in accordance with Indian Cenerally Accepted accounting principles (GAAP), generally under the historical cost convention on accrual basis except insurance, Interest on debtors and other claims receivable, exports benefits and expenditure on account of fuel escalation charges of the Jodhpur Vidyut Vitrah Nigam Limited, which are accounted for on receipt/payment basis. GAAP comprises of mandatory Accounting Standards issued by The Institute of Chartered Accountants of India (ICAI), the provisions of Indian Companies Act, 1956 and the Guidelines issued by ICAI and Securities and Exchange Board of India {SEBf). Accounting Policies have been consistently adopted except where a change in existing GAAP requires a change in accounting policy hitherto in use.

2.Use of Estimates: - The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognized in the period in which the results are known / materialised.

3.Fixed assets and Depreciation:

(i) (a) Fixed assets are stated at cost of acquisition or construction loss depreciation. All cost relatingto the acquisition & installation of fixed assets are capitalized.

(b) Addition in Fixed assets is stated at cost net of VAT and Cenvat credit, Custom duty (where applicable). All cost relatingto acquisition and installation of fixed asset are capitalized.

(c)Agricultural land is shown at cost price.

(ii)Revalued assets are recorded at revalued amount less depreciation on revalued amount.

(iii)(a) Depreciation on fixed assets is provided on written down value basis at the rates and in the manner prescribed in Schedule XIV of Companies Act, 1956. Depreciation in respect of revalued amount, the additional depreciation attributable to revaluation is withdrawn from revaluation reserve. Depreciation on addition in fixed assets has been adjusted after deductingthe amount of excise duty & VAT availed as Cenvat and VAT set off.

(b) Depreciation on assets added / disposed off during the year has been provided on prorate basis with reference to date of addition / disposed except for items on which 100% depreciation rate are applicable.

(iv) Fixed assets acquired in exchange or in part exchange for another asset are recorded at the net book value of the assets given up, adjusted for any balancing payment or receipt of cash or other consideration.

(v) Capital Assets under erection/installation are reflected in the Balance sheet as "Capital Work-In Progress''

4.Purchases: Purchase of all Raw materials. Raw Cotton, Aluminium wire Rods, glassine paper, packing material, Oil & Lubricants, Gas Cylinder, production , mechanical & Electrical stores, Polythene and polyester film & paper are accounted for on basic price &CST. Cenvat and VAT on purchase of these items is shown as Cenvat recoverable & VAT recoverable is adjusted against the Excise/Sales Tax liabilities.

5.Investment: Long term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management. Dividends reinvested are added to the cost of investments.

6.Current Assets: Inventories as taken and certified by the management are valued as under:

(a) Raw materials, dyes : At cost excludingcenvat & Chemicals packing credit and VAT. material, Polyester Film Paper and Polythene

(b) Production, Electrical, : At cost excludingcenvat Mechanical and credit & VAT consumable store & spares

(c) Oil & lubricants : At cost excluding excise duty except HSD.

(d) Work in process : At esti mated cost valued as certified by the management.

(e) Aluminium wire rods : At cost or market price whichever is lower.

(f) Scrap & rejected goods : At net realizable value determined by management

(g) Finished goods : 1.Received after conversion Valued at cost or market Price, whichever is lower inclusive of Excise duty : 2.Manufactured goods: Valuation of finished goods manufactured but not cleared from excise bonded warehouse up to the end of the year is at cost or market price, whichever is lower inclusive of Excise Duty (Cost price estimated by deducting approx 16.30% from the selling price),

(h) Stock at port & in : At Selling price transit

(i) Stock in transit/ware : At cost house (Purchase)

(j) DEPB licenses Purchased : At cost.

(k) Gas Cylinder : At cost

(I) Returned Material : At Net Realisable Value outside factory on the basic sale price sold or at price certified by management.

(m) Stock with : At cost (estimated by Consignment Agent deducting 16.30% from the selling price) plus excise and expenses as per Invoice.

Note: The cost of raw materials, dyes, chemicals, packing material, oil & lubricant and consumable stores are arrived at on first in first out method and in the case of basic raw material, freight inward expenses have also been considered.

7.Expenditure:

(a)Benefit to employees:

(i)Contribution to statutory funds is accounted for on accrual basis.

(ii)Provision of Leave encashment has been made on accrual basis on leave un-availed balance available as on 31,03.2011.

(iii)Service Awards have been adjusted / accounted on the basis of completed months.

(iv)Gratuity payable to employees is provided for on the basis of premium paid under group gratuity Scheme with Life Insurance Corporation of India

(b)Lease rent in respect of leasehold land for factory building and township are accounted for on accrual basis. The unexpired periods of said leasehold land are 54 and 55 years respectively.

(c)All other expenses are accounted for on accrual basis and consumption of stores has been taken on actual consumption,

(d)Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets.Aqualifyingassetisone that necessarily takes substantial period of time to get ready for intended use. All other borrowingcosts are charged to revenue.

(e)Power unit generated from Enercon wind power plant which has been wheeled for captive consumption after adjusting wheeling charges @ 10% of the energy fed into grid to RVPNL Discom(s) is accounted on effective tariff rate in power bill and simultaneously such figure was also reflected in other income.

8.Income:

(a) Sales are inclusive of Cenvat but are net of Sales returns, Shortages and other discounts & rebates but excluding value of recoveries made for insurance, freight and packing forwarding expenses, which have been shown in the invoice value and are adjusted in the respective heads.

(b)Export sales are accounted for on the basis of exchange rate on date of transactions and recognized only when export goods leaves the territory of India.

(c)Discount and rebates on sales is accounted for as and when settled.

(d) Revenue from investment is accounted on sale/disposal of such investments.

(e)Export Incentive: Revenue from DEPB Licenses is recognised when the licenses are sold / utilized and are shown as other incomes.

(f)Units generated on Enercon wind power plant has been accounted on the basis of effective tariff rate in respective month. Units generated on Suzlon wind power plant has been accounted at contract price

(g)Interest receivable from debtor is considered on receipt basis.

(h) The Company has purchased DEPB Licenses from market at discounts and the same has been shown as Discounts received on purchase of DEPB in other income.

9.Transaction in Foreign Currencies: (Other than for fixed assets): Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. Cain/Loss arising out of fluctuation in between transaction date and realization date are recognized in profit & loss account. Gain/loss arises on account of fluctuation in between transaction date and realization date on sales settled in same year has been accounted for in the same head. Current assets are restated at the exchange rate prevailing at the end and the overall net gain/toss has been adjusted in the profit & loss account. Monetary items denominated in foreign currencies at the year-end and not covered by foreign exchange contracts are translated at year-end rates. The difference between the foreign exchange contract rate and the exchange rate on the date of transaction is recognized as income or expenditure over the life of the contract. Foreign Exchange Gain/Loss of buyer's credit taken from foreign bank has been recognized at the date of transaction and recognized in profit & loss account.

10.Impairment of Assets: All assets other than inventory, investment or deferred tax assets are reviewed for impairment where event or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying amount exceeds their recoverable amount will be written down to recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. During the year Ink, dyes & Chemicals not usable having no recoverable value have been written off.

11.Cenvat and VAT: The value of Cenvat and VAT benefits eligible on raw materials, other eligible inputs, production stores and capital goods is considered for the clearances of finished goods.

12.Accounting of Taxes on Income: Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.

13.Contingent Liabilities: The company is not providing for contingent liabilities in the account since the ultimate outcome thereof cannot be determined on the date of balance sheet. However, notes on every contingent liabilities exist on the date of balance sheet are given in notes on account. Contingent assets are neither recognized nor disclosed in the balance sheet.

14.Earning Per Share : Basic and diluted earnings per share are computed by dividing the net profit after tax attributable to equity shareholders for the year, with the weighted number of equity shares outstanding during the year.

15.Lease: Lease rentals under an operating lease, are recognized as an expenses in the statement of Profit & Loss Account on a straight line basis over the lease term. Lease Income from Operating lease is recognized in Profit & Loss Account on a Straight line basis over the Lease Term.

---

Mar 31, 2010

1. Basis of Accounting: -

The accounts of the company are prepared under historical cost convention and in accordance with the applicable Accounting Standards and provisions of the Companies Act, 1956 as adopted consistently by the company except where otherwise stated. Mercantile system of accounting is followed except insurance, Interest on debtors and other claims receivable, exports benefits and expenditure on account of fuel escalation charges of the Jodhpur Vidyut Vitran Nigam Limited, which are accounted for on receipt/payment basis.

2. Use of Estimates: -

The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognized in the period in which the results are known/ materialized.

3. Fixed assets: -

(i) (a) Fixed assets are stated at cost of acquisition or construction less depreciation. All cost relating to the acquisition & installation of fixed assets are capitalized.

(b) Addition in Fixed assets is stated at cost net of VAT & Cenvat credit, Custom duty (where applicable). All cost relating to acquisition and installation of fixed assetare capitalized.

(c) Agricultural land is shown at cost price.

(ii) Revalued assets are recorded at revalued amount less depreciation on revalued amount.

4. Purchases: -

Purchase of all Raw materials, packing material, production & mechanical stores, Polythene & polyester film & paper are accounted for on basic price & CST. Cenvat and VAT on purchase of these items is shown as Cenvat recoverable & VAT recoverable which are adjusted against the Excise/Sales Tax liabilities.

5. Investment: -

Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management. Dividends reinvested are added to the cost of investments.

6. CurrentAssets: -

Inventories as certified by the management are valued asunder

(a) Raw materials, dyes & At cost excluding cenvat creditand VAT. Chemicals & packing material

(b) Production consumable store & spares : At cost excluding cenvat credit & VAT

c) Oil & lubricants : At cost excluding excise duty except HSD.

(d) Work in process : Atestimatedcost(valuedascertified by the management.)

(e) Aluminium wire rods : At cost or market price whichever is lower.

(f) Scrap & rejected goods : At net realizable value determined by management.

(g) Finishedgoods 1. Received after conversion Valued at costor market

Price, whichever is lower inclusive of Excise duty. 2. Manufactured goods: Valuation of finished goods Manufactured but not cleared from excise bonded warehouse up to the end of the year is at cost or market price, whichever is lower inclusive of Excise Duty. (Cost priceestimated by deducting approx 19% from the selling price). (h) Stock at port & in transit : At Sellingprice

(i) Stock in transit/ware house (Purchase) : At cost

(j) DEPB licences Purchased : At cost.

Note: The cost of raw materials, dyes, chemicals, packing material, oil & lubricant and consumable stores are arrived at on first in first out method and in the case of basic raw material, freight inward expenses have also been considered.

7. Expenditure:-

(a) Benefitto employees:

(i) Contribution to statutory funds is accounted for on accrual basis.

(ii) Provision of Leave encashment has been made on accrual basis on leave un-availed balance available as on 31.03.2010. (iii) Service Awards have been adjusted /accounted on the basis of completed months.

(iv) Gratuity payable to employees is provided for on the basis of premium paid under group gratuity Scheme with Life Insurance Corporation of India

(b) (i) Depreciation on fixed assets is provided on written down value basis atthe rates and in the manner prescribed in Schedule XIV of Companies Act, 1956. Depreciation in respect of revalued amount, the additional depreciation attributable to revaluation is withdrawn from revaluation reserve. Depreciation on addition in fixed assets has been adjusted after deducting the amount of excise duty & VAT availed as Cenvat & VAT setoff, (ii) Depreciation on assets added / disposed off during the year has been provided on prorate basis with reference to date of addition / disposed except for items on which 100% depreciation rate are applicable.

(c) Lease rent in respect of leasehold land for factory building and township are accounted for on accrual basis. The unexpired periods of said leasehold land are 55 and 56 years respectively.

(d) All other expenses are accounted for on accrual basis and consumption of stores has been taken on actual consumption.

(e) 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 necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

(g) Power unit generated from wind power plant which has been wheeled for captive consumption after adjusting wheeling charges @ 10% of the energy fed into grid to RVPNL Discom(s) is accounted on effective tariff rate in power bill and simultaneously such figure was also reflected in other income.

8. Income: -

Turnover:

(a) Sales are inclusive of Cenvat but are net of Sales returns, Shortages and other discounts & rebates but excluding value of recoveries made for insurance, freight and packing forwarding expenses, which have been shown in the invoice value and are adjusted in the respective heads.

(b) Export sales are accounted for on the basis of exchange rate on date of transactions and recognized pnly when export goods leaves the territory oflndia.

(c) Discount and rebates on sales is accounted for as and when settled.

(d) Revenue from investment is accounted on sale/disposal of such investments.

(e) Export Incentive: Revenue from DEPB Licences is recognised when the licences are sold / utilized and are shown as other incomes.

(f) Units generated on wind power plant have been accounted on the basisof effective tariff rate in respective month.

(g) Interest receivable from debtor is considered on receipt system.

(h) The Company has purchased DEPB Licenses from market at discounts and the same has been shown as Discounts received on purchase of DEPB in other income.

9. Transaction in Foreign Currencies:- (Other than for fixed assets) Transactions denominated in foreign currencies are normally recorded

j at the exchange rate prevailing at the time of the transaction. Cain/Loss

arising out of fluctuation in between transaction date and realization date are recognized in profit & loss account & gain/loss arises on account of fluctuation in between transaction date and realization date on sales settled in same year has been accounted for in the same head. Current assets are restated at the exchange rate prevailing at the end and the overall net gain/loss has been adjusted in the profit & loss account.

Monetary items denominated in foreign currencies at the year-end and not covered by foreign exchange contracts are translated at year-end rates.

The difference between the foreign exchange contract rate and the exchange rate on the date of transaction is recognized as income or expenditure over the life of the contract.

Foreign Exchange Cain/Loss of buyers credit taken from foreign bank has been recognized at the date of transaction and recognized in profit & loss account.

10. Impairment of Asscts:-

All assets other than inventory, investment or deferred tax assets are reviewed for impairment where event or changes in circumstances indicate that the carrying amount may not be recoverable. Assets whose carrying amount exceeds their recoverable amount will be written down to recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired.

11. Cenvat &VAT:-

The value of Cenvat benefits eligible on raw materials, other eligible inputs, production stores and capital goods is considered for the clearances of finished goods

12. Accountingof Taxes of Income:-

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.

13. Contingent Liabilities:-

The company is not providing for contingent liabilities in the account since the ultimate outcome thereof cannot be determined on the date of balance sheet. However, notes on every contingent liabilities exist on the date of balance sheet are given in notes on account. Contingent assets are neither recognized nor disclosed in the balance sheet.