STL Global Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2018

Notes forming part of the financial statements Corporate Information

STL Global Limited (the "Company") ia a public limited Company incorporated under the Companies Act 1956,domiciled in india and has its registered office at New Delhi. The shares of the company are listed on National stock exchange and Bombay stock exchange, It has been engaged primarily in the Textile Business. The Company has its manufacturing facilities and sells its products in India.

1 Significant Accounting Policies

1.1 Statement of Compliance

These Financial statements of the Company have been prepared in accordance with Indian Accounting Standards notified under the Companies ( Indian Accounting standards) Rules,2015 ("Ind AS"). The Company has prepared its financial statements up to the year ended 31st March 2017 in accordance with generally accepted accounting principles in the India, including accounting standards read with the section 133 of the Companies Act,2013 notified under Companies (Accounting standards) Rules 2006 ("Previous GAAP"). These are the Company''s first Ind AS financial statements. the date of transition to Ind AS is April 1, 2016.

1.2 Basis of preparation

These Financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 ( "The Act ") read with Rule 3 of the Companies (Indian Accounting Standards ) Rules, 2015 and presentation requirement of Schedule III to the Act under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair value.

The financial statements are presented in and all values are rounded to the nearest to the rupees, except when otherwise indicated.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or revision to a exciting accounting standard require a change in the accounting policy hitherto in use.

1.3 Use of Estimates, assumptions and judgments

The estimated and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Differences between actual results and estimates are recognized in the period in which the result are known/materialized.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

1.4 Property, plant and equipment

Property, plant and equipment (PPE) are initially recognizes at cost. The initial cost of PPE comprises its purchase price, including nonrefundable duties and taxes net of any trade discounts and rebates. The cost of PPE includes borrowing cost directly attributable to acquisition, construction of qualifying assets subsequent to initial recognition, PPE are stated at cost less accumulated depreciation (other than freehold land , which are stated at cost ) and impairment losses, if any.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item flow to the company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repair and maintenance are charged to profit and loss during the reporting period in which they are incurred.

Depreciation is recognized so as to write off the cost of assets (other than freehold land and Capital work in progress) less their residual value over the useful lives using the Written Down Value method (W.D.V) in the manner prescribed in the schedule II of the Act.

The carrying value of PPE are reviewed for impairment when events or changes in circumstances indicates that the carrying value may not be recoverable.

Intangible Assets are stated at cost of acquisition net of recoverable taxes, less accumulated depreciation and impairment loss, if any. The Cost of intangible Assets comprises purchase price and any cost directly attributable to bringing the assets to its working condition for the intended use.

1.5 Inventories

Inventories are valued at the lower of cost and the net realizable value after providing for obsolescence and other losses, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and conditions.

1.6 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash and cash equivalent comprises cash in hand and at bank, demand deposits with banks, other short term highly liquid investment with original maturities of three months or less which is subject to insignificant risk of change in value.

1.7 Revenue recognition

Revenue from operation includes Sales of goods and services and adjusted for Sale returns and trade discounts and exclude sales tax and value added tax.

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.8 Segment Reporting

Operating segment are reported in a manner consistent with the internal reporting provided to the chief operating decision maker .The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments.

Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Inter segment revenue are accounted on the basis of transactions which are primarily determined based on market /fair value factors, Revenue, expenses, assets and liabilities which relate to the company as a whole and are not allocable to the segment on a reasonable basis have been included under " unallowable revenue/expense/assets/liabilities.

1.9 Foreign currency transactions

Foreign exchange transactions are accounted at the exchange rates prevailing on the date of the transaction.

Realized gains and losses on foreign exchange transactions during the year are recognized in the Profit & loss account. Foreign currency monetary assets and liabilities are translated at year-end rates and resultant gains/losses on foreign exchange transactions are recognized in the Profit & loss account.

1.10 Leases

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are classified as operating leases. Operating lease payments are recognized as an expenses in the statement of profit and loss on a straight line over the leased terms.

1.11 Earning Per Share (EPS)

Basic EPS is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.

1.12 Investments

Investment that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investment are carried at cost.

1.13 Employee benefits

The Company''s contribution to provident fund 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.

Gratuity liability is defined benefit obligations and is provided for on the basis of an actual valuation made at the end of the each financial year.

Provision for compensated absence are provided for based on the estimates. Long term compensated leave are provided for based on accrual valuation at the year end.

Actual gain/losses are immediately taken to profit and loss account and are not deferred.

The Company''s contributions to State plans namely Employee State Insurance Fund and employees’ Pension Scheme are charged to Profit & Loss Account.

1.14 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 assets is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.15 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their reliability.

1.16 Impairment of assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss statement in the year in which an asset is identified as impaired. The Impairment loss recognized in prior accounting period is reversed if there have been a change in the estimate of recoverable amount.

1.17 Contingent Liability

Contingent liabilities in respect of show cause notices received is considered only when they are converted into demands. Payments in respect of such demands, if any are shown as advances.

Contingent liabilities under various fiscal laws includes those in respect of which the company/Department is in appeal. No Provision is made for a liability which is contingent in nature but if material is disclosed in the financial statement by way of notes.

1.18 Current versus non-current classification

All assets & legalities have been classified as current & non-current as per the company''s normal operating cycle (twelve months) and other criteria set out in the schedule III to the Act.

1.19 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognized when Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in the statement of profit and loss.

(i) Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received. Incremental costs directly attributable to the issuance of new ordinary equity shares are recognized as a deduction from equity, net of tax effects.

(ii) Financial assets

(a) Financial assets at amortized cost

Financial assets are subsequently measured at amortized cost using the Effective Interest Rate method (EIR) if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss. This category generally applies to bank deposits, loans and other financial assets.

(b) Financial assets at fair value through profit or loss (FVTPL)

Financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at fair value through other comprehensive income on initial recognition.

(c) Impairment of financial assets

In accordance with Ind-AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the financial assets and credit risk exposure.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/expense in the statement of profit and loss (P&L). This amount is reflected under the head ''other expenses'' in the P&L. In balance sheet, ECL is presented as an allowance, i.e., as an integral part of the measurement of financial assets.

(d) Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

(iii) Financial liabilities

(a) Financial liabilities at amortized cost

Financial liabilities are measured at amortized cost using the effective interest rate method (EIR). Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss. This category applies to trade and other payables.

(b) Derecognition

The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid / payable is recognized in the statement of profit and loss.

(iv) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

37.3 Financial risk management framework

Company''s activities expose it to financial risks viz credit risk and liquidity risk

a) Credit Risk

Based on the overall credit worthiness of Receivables, coupled with their past track records, Company expects No / Minimum risk with regards to its outstanding receivables. Also, there is a mechanism in place to periodically track the outstanding amount and assess the same with regard to its realization. Company expects that all the debtors will be realized in full, and adequate provisions has been made in the books of accounts for doubtful receivables

b) Liquidity Risk

(i) Liquidity Risk Management

The Company manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring forecast and actual cash flow and by matching the maturity profiles of financial assets and liabilities.

(ii) Maturities of Financial Liabilities

The following tables details te Company''s remaining contractual maturities for its non-derivative financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the earliest date on which the Company can be required to pay.

As at 31st March, 2018, the Company had a working capital of Rs.22,69,13,067/- Including cash and bank balance & bank deposits of Rs.19,51,426/-

As at 31st March, 2017, the company had a working capital of Rs.(11,2355,976) including cash and bank balance and bank deposits of Rs.42,10,918/-

Fair value measurement

The management assessed the fair value of loans, current investments (unquoted), cash and cash equivalents, trade receivables, trade payables and other current liabilities approximate to their carrying amount largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values.

(i) The fair value of unquoted instruments are evaluated by the Company based on parameters such as interest rates and its investments ratting.

(ii) The fair value of loans are estimated by discounted cash flow method to capture the present value of the expected future economic benefits that will flow to the company.

---

Mar 31, 2016

Note 1 Significant accounting policies

1.1 Basis of accounting and preparation of financial statements

These Financial statements of the Company have been prepared to in accordance with the Generally Accepted Accounting principles in India (Indian GAAP), including the Accounting Standards notified under Section 133 of the Companies Act, 2013 as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of theses financial statements are consistent with those followed in the previous year.

1.2 Use of estimates

The preparation of financial statement in conformity with Indian GAAP requires judgments’, estimates and assumptions to be made that affects the reported amount of assets and liabilities, disclosure of contingent 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 estimates are recognized in the period in which the results are known/materialized.

1.3 Inventories

Inventories are valued at the lower of cost and the net realizable value after providing for obsolescence and other losses ,if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and conditions.

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortization

Depreciation on fixed assets is provided to the extent of Depreciable amount on the Written Down Value method (W.D.V). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act,2013.

1.7 Revenue recognition

Revenue from operation includes Sales of goods and services and adjusted for Sale returns and trade discounts and exclude sales tax and value added tax.

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.8 Fixed Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and include amount added on revaluation , less accumulated depreciation and impairment loss, if any. The Cost of tangible Assets comprises its purchase price, levies and freight and any cost directly attributable to bringing the assets to its working condition for the intended use. Subsequent expenditures related to an item of tangible Assets are added to its book value only if they increase the future be befits from the existing assets beyond its previously assessed standard of performance Intangible Assets are stated at cost of acquisition net of recoverable taxes, less accumulated depreciation and impairment loss, if any. The Cost of intangible Assets comprises purchase price and any cost directly attributable to bringing the assets to its working condition for the intended use.

1.9 Foreign currency transactions and translations

Foreign exchange transactions are accounted at the exchange rates prevailing on the date of the transaction Realized gains and losses on foreign exchange transactions during the year are recognized in the Profit & loss account. Foreign currency monetary assets and liabilities are translated at year-end rates and resultant gains/losses on foreign exchange transactions are recognized in the Profit & loss account.

1.10 Investments

Investment that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investment are carried at cost.

1.11 Employee benefits

The Company''s contribution to provident fund 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.

Gratuity liability is defined benefit obligations and is provided for on the basis of an actual valuation made at the end of the each financial year.

Provision for compensated absence are provided for based on the estimates. Long term compensated leave are provided for based on actual valuation at the year end.

Actual gain/losses are immediately taken to profit and loss account and are not deferred.

The Company''s contributions to State plans namely Employee State Insurance Fund and employees Pension Scheme are charged to Profit & Loss Account.

1.12 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 assets is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.13 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their reliability.

1.14 Impairment of assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss statement in the year in which an asset is identified as impaired. The Impairment loss recognized in prior accounting period is reversed if there have been a change in the estimate of recoverable amount.

1.15 Amalgamation Expenditure

Amalgamation expenses shown under other non-current assets are amortized over a period of ten years.

1.16 Contingent Liability

Contingent liabilities in respect of show cause notices received is considered only when they are converted into demands. Payments in respect of such demands, if any are shown as advances.

Contingent liabilities under various fiscal laws includes those in respect of which the company/ Department is in appeal. No Provision is made for a liability which is contingent in nature but if material is disclosed in the financial statement by way of notes.

---

Mar 31, 2015

1.1 Basis of accounting and preparation of financial statements

These Financial statements have been prepared to comply with the Generally Accepted Accounting principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements are prepared on accrual basis under the historical cost convention.

1.2 Use of estimates

The preparation of financial statement in conformity with Indian GAAP requires judgements,estimates and assumptions to be made that affects the reported amount of assets and liabilities, disclosure of contingent 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 estimates are recognised in the period in which the results are known/materialised.

1.3 Inventories

Inventories are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses ,if any. Cost of inventories comprises of cost of purchase,cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and conditions.

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation on fixed assets is provided to the extent of Depreciable amount on the Written Down Value method (W.D.V). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act,2013.

1.7 Revenue recognition

Revenue from operation includes Sales of goods and services and adjusted for Sale returns and trade discounts and exclude sales tax and value added tax.

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.8 Fixed Assets

Tangible Assets are stated at cost net of recoverable taxes,trade discounts and include amount added on revaluation , less accumulated depreciation and impairment loss, if any. The Cost of tangible Assets comprises its purchase price, levies and freight and any cost directly attributable to bringing the assets to its working condition for the intended use. Subsequent expenditures related to an item of tangible Assets are added to its book value only if they increase the future benefits from the existing assets beyond its previously assessed standard of performance Intangible Assets are stated at cost of acquisition net of recoverable taxes,less accumulated depreciation and impairment loss, if any. The Cost of intangible Assets comprises purchase price and any cost directly attributable to bringing the assets to its working condition for the intended use.

1.9 Foreign currency transactions and translations

Foreign exchange transactions are accounted at the exchange rates prevailing on the date of the transaction. Realised gains and losses on foreign exchange transactions during the year are recognized in the Profit & loss account. Foreign currency monetary assets and liabilities are translated at year-end rates and resultant gains/losses on foreign exchange transactions are recognised in the Profit & loss account.

1.10 Investments

Investment that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investment are carried at cost.

1.11 Employee benefits

The Company's contribution to provident fund 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. Gratuity liability is defined benefit obligations and is provided for on the basis of an accrual valuation made at the end of the each financial year.

Provision for compensated absence are provided for based on the estimates. Long term compensated leave are provided for based on accrual valuation at the year end.

Accrual gain/losses are immediately taken to profit and loss account and are not deferred.

The Company's contributions to State plans namely Employee State Insurance Fund and employees Pension Scheme are charged to Profit & Loss Account.

1.12 Borrowing costs

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

1.13 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their readability.

1.14 Impairment of assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss statement in the year in which an asset is identified as impaired. The Impairment loss recognised in prior accounting period is reversed if there have been a change in the estimate of recoverable amount.

1.15 Derivative contracts

In respect of Derivative contracts, Premium paid, gain/losses on settlements are recognized and charged to Profit & Loss account.

1.16 Amalgamation Expenditure

Amalgamation expenses shown under other non-current assets are amortised over a period of ten years.

1.17 Contingent Liability

Contingent liabilities in respect of show cause notices received is considered only when they are converted into demands. Payments in respect of such demands, if any are shown as advances.

Contingent liabilities under various fiscal laws includes those in respect of which the company/ Department is in appeal. No Provision is made for a liability which is contingent in nature but if material is disclosed in the financial statement by way of notes.

---

Mar 31, 2014

1.1 Basis of accounting and preparation of financial statements

The Financial statements have been prepared to comply with the Accounting Standards notified by Companies ( Accounting Standards) Rules, 2006 (as amended) and the relevent provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company are consistent with those used in the previous year. The financial statements are presented in the general format specified in Revised Schedule VI to the Companies Act, 1956.

1.2 Use of estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialised.

1.3 Inventories

Inventories are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses, where considered necessary. Work-in-progress and finished goods include appropriate proportion of overheads.

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation on fixed assets has been provided on the written down value method (W.D.V) on pro rata basis at the rate and in the manner as prescribed in Schedule XIV to the Companies Act, 1956.

1.7 Revenue recognition

Sales are recognised, net of returns and trade discounts and exclude sales tax and value added tax.

1.8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.9 Tangible fixed assets

Fixed assets are stated at their original cost and net of CENVAT, VAT and Capital subsidy wherever availed less accumulated depreciation. Cost of fixed assets comprises purchase value, duties, levies and freight and any directly attributable cost of bringing the assets to its working condition for the intended use.

Notes forming part of the financial statements

1.10 Foreign currency transactions and translations

Foreign exchange transactions are accounted at the exchange rates prevailing on the date of the transaction

Realised gains and losses on foreign exchange transactions during the year are recognized in the Profit & loss account. Foreign currency monetary assets and liabilities are translated at year-end rates and resultant gains/losses on foreign exchange transactions are recognised in the Profit & loss account.

1.11 Government grants, subsidies and export incentives

Government grants and subsidies like capital subsidy on acquiring Capital Assets are presented by deducting them from the carrying value of the assets. The grant is recognised as income over the life of a depreciable asset by way of a reduced depreciation charge.

Export benefits are accounted for on the basis of exports sales affected during the period.

Government grants and subsidies like TUFS are recognised by deducting them from the costs of interest for which they are intended to compensate.

1.12 Investments

Investment that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investment are carried at cost.

1.13 Employee benefits

The Company''s contribution to provident fund 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.

Gartuity liability is defined benefit obligations and is provided for on the basis of an actuarial valuation made at the end of the each financial year.

Provision for compensated absence are provided for based on the estimates. Long term compensated leave are provided for based on actuarial valuation at the year end.

Actuarial gain/losses are immediately taken to profit and loss account and are not deferred.

The Company''s contributions to State plans namely Employee State Insurance Fund and employees Pension Scheme are charged to Profit & Loss Account.

1.14 Borrowing costs

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

1.15 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised

for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

1.16 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

1.17 Derivative contracts

In respect of Derivative contracts, Premium paid, gain/losses on settlements are recognized and charged to Profit & Loss account.

1.18 Amalgamation Expenditure

Amalgamation expenses shown under other non-current assets are amortised over a period of ten years.

1.19 Contingent Liability

Contingent liabilities in respect of show cause notices received is considered only when they are converted into demands. Payments in respect of such demands, if any are shown as advances.

Contingent liabilities under various fiscal laws includes those in respect of which the company/ Department is in appeal

No Provision is made for a liability which is contingent in nature but if material , the same is disclosed by way of notes.

---

Mar 31, 2013

1.1 Basis of accounting and preparation of financial statements

The Financial statements have been prepared to comply with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company are consistent with those used in the previous year. The financial statements are presented in the general format specified in Revised Schedule VI to the Companies Act, 1956.

1.2 Use of estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialized.

1.3 Inventories

Inventories are valued at the lower of cost and the net realizable value after providing for obsolescence and other losses, where considered necessary. Work-in-progress and finished goods include appropriate proportion of overheads.

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortization

Depreciation on fixed assets has been provided on the written down value method (W.D.V) on pro rata basis at the rate and in the manner as prescribed in Schedule XIV to the Companies Act, 1956.

1.7 Revenue recognition

Sales are recognized, net of returns and trade discounts and exclude sales tax and value added tax.

1.8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.9 Tangible fixed assets

Fixed assets are stated at their original cost and net of CENVAT, VAT and Capital subsidy wherever availed less accumulated depreciation. Cost of fixed assets comprises purchase value,

Notes forming part of the financial statements

duties, levies and freight and any directly attributable cost of bringing the assets to its working condition for the intended use. Capital work in progress is stated at cost and it includes advances given for capital items.

1.10 Foreign currency transactions and translations

Foreign exchange transactions are accounted at the exchange rates prevailing on the date of the transaction

Realized gains and losses on foreign exchange transactions during the year are recognized in the Profit & Loss account. Foreign currency monetary assets and liabilities are translated at year-end rates and resultant gains/losses on foreign exchange transactions are recognized in the Profit & loss account.

1.11 Government grants, subsidies and export incentives

Government grants and subsidies like capital subsidy on acquiring Capital Assets are presented by deducting them from the carrying value of the assets. The grant is recognized as income over the life of a depreciable asset by way of a reduced depreciation charge.

Export benefits are accounted for on the basis of exports sales affected during the period.

Government grants and subsidies like TUFS are recognized by deducting them from the costs of interest for which they are intended to compensate.

1.12 Investments

Investment that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investment are carried at cost.

1.13 Employee benefits

The Company''s contribution to provident fund 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.

Gratuity liability is defined benefit obligations and is provided for on the basis of an actuarial valuation made at the end of the each financial year.

Provision for compensated absence are provided for based on the estimates. Long term compensated leave are provided for based on actuarial valuation at the year end.

Actuarial gain/losses are immediately taken to profit and loss account and are not deferred.

The Company''s contributions to State plans namely Employee State Insurance Fund and employees Pension Scheme are charged to Profit & Loss Account.

1.14 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 assets is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.15 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such setoff. Deferred tax assets are reviewed at each Balance Sheet date for their readability.

1.16 Impairment of assets

The carrying values of assets/cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets.

1.17 Derivative contracts

In respect of Derivative contracts, Premium paid, gain/losses on settlements are recognized and charged to Profit & Loss account.

1.18 Amalgamation Expenditure

Amalgamation expenses shown under other non-current assets are amortized over a period of ten years.

1.19 Contingent Liability

Contingent liabilities in respect of show cause notices received is considered only when they are converted into demands. Payments in respect of such demands, if any are shown as advances.

Contingent liabilities under various fiscal laws includes those in respect of which the company/ Department is in appeal No Provision is made for a liability which is contingent in nature but if material, the same is disclosed by way of Notes.

---

Mar 31, 2012

1.1 Basis of accounting and preparation of financial statements

The Financial statements have been prepared to comply with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company are consistent with those used in the previous year. The financial statements are presented in the general format specified in Revised Schedule VI to the Companies Act, 1956.

1.2 Use of estimates

The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialised.

1.3 Inventories

Inventories are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses, where considered necessary. Work-in-progress and finished goods include appropriate proportion of overheads.

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation on fixed assets has been provided on the written down value method (W.D.V) on pro rata basis at the rate and in the manner as prescribed in Schedule XIV to the Companies Act, 1956.

1.7 Revenue recognition

Sales are recognised, net of returns and trade discounts and exclude sales tax and value added tax.

1.8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.9 Tangible fixed assets

Fixed assets are stated at their original cost and net of CENVAT, VAT and Capital subsidy wherever availed less accumulated depreciation. Cost of fixed assets comprises purchase value, duties, levies and freight and any directly attributable cost of bringing the assets to its working condition for the intended use. Capital work in progress is stated at cost and it includes advances given for capital items.

1.10 Foreign currency transactions and translations

Foreign exchange transactions are accounted at the exchange rates prevailing on the date of the transaction Realised gains and losses on foreign exchange transactions during the year are recognized in the Profit & Loss account. Foreign currency monetary assets and liabilities are translated at year-end rates and resultant gains/losses on foreign exchange transactions are recognised in the Profit & loss account.

1.11 Government grants, subsidies and export incentives

Government grants and subsidies like capital subsidy on acquiring Capital Assets are presented by deducting them from the carrying value of the assets. The grant is recognised as income over the life of a depreciable asset by way of a reduced depreciation charge.

Export benefits are accounted for on the basis of exports sales affected during the period.

Government grants and subsidies like TUFS are recognised by deducting them from the costs of interest for which they are intended to compensate.

1.12 Investments

Investment that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investment are carried at cost.

1.13 Employee benefits

The Company's contribution to provident fund 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.

Gratuity liability is defined benefit obligations and is provided for on the basis of an actuarial valuation made at the end of the each financial year.

Provision for compensated absence are provided for based on the estimates. Long term compensated leave are provided for based on actuarial valuation at the year end.

Actuarial gain/losses are immediately taken to profit and loss account and are not deferred.

The Company's contributions to State plans namely Employee State Insurance Fund and employees Pension Scheme are charged to Profit & Loss Account.

1.14 Borrowing costs

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

1.15 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

1.16 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

1.17 Derivative contracts

In respect of Derivative contracts, Premium paid, gain/losses on settlements are recognized and charged to Profit & Loss account.

1.18 Amalgamation Expenditure

Amalgamation expenses shown under other non-current assets are amortised over a period of ten years.

1.19 Contingent Liability

Contingent liabilities in respect of show cause notices received is considered only when they are converted into demands. Payments in respect of such demands, if any are shown as advances.

Contingent liabilities under various fiscal laws includes those in respect of which the company/ Department is in appeal No Provision is made for a liability which is contingent in nature but if material , the same is disclosed by way of notes.

---

Mar 31, 2010

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) The Financial Statement are prepared under the historical cost conversiton , unless stated otherwise, on a going concern, and in accordance with the generally accepted accounting standards issued by the Insitute of Chartered Accounts of India and the Provision of the Companies Act, 1956 as adapted consistently by the Company, to the extent applicable.

b) The Company generally follows mercantile system of accounting and recognize significant ites of income and expenditure on accrual basis. 2. USE OF ESTIMATES

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

3. FIXEDASSETS

a)Fixed assets are stated at their original cost net of Modvat/Cenvat/VAT/CApital subsidy wherever availed, lees accumulated depreciation. Cost of fixed assets comprises purchase price, duties, levies. Freight, and any direct attributable cost of bringing the assets to its working condition for the intended use.

(b) Capital work in progress is stated at cost and includes advances for capital items.

4. DEPRECIATION Depreciation on fixed Assets has been provided on straight line method (SLM) on pro rata basis at the rate and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except on Plant & machinery, depreciation has bneen provided on written down value method. Depreciation on fixed assets acquired from amalgamating company has been provided on Written down value method.

5. IMPAIRMENT OF ASSETS Carrying amount of cash generating units/ assets is reviwed for impairment .Impairment if any is recognized where the carrying amount exceeds the recoverable amount being the higher of net realizable price and value in use.

6. INVESTMENTS

Investments are valued at Cost.

7. INVENTORY

(a) Inventory of Raw material is valued at weighted average cost or net realizable value which ever is lower; Cost being net of excise duty.

b)Inventory of finished goods is valued at the lower of cost or estimated relizable value. For this purpose, cost is being reckoned as full cost (exclusive of interest and administrative overheads) net of excise duty and inludes excise duty in the finished goos. where applicable.

c) Closing stock of work in progress is valued at the lower of cost or estimated realizable value; for this pu8rpose cost does no include excise duty.

(d) Inventory of store & spares is value datcost,exclusive of excise duty.

(e) Scrap is valued at net realizable value.

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

9. SALES

Sales are in clusive of Excise duty and net of Sale tax and trade discounts. wherever applicable.

10. PURCHASE OF RAW MATERIAL

Cost of Purchase less modvat/ cenvat/ Vat Credits. wherever consituted purchase price and includes duties, Freight in ward and other cost directly attributable to such purchase in the year in which they are accounted, wherther the expenditure is immediate or deferred.

11. FOREIGN EXCHANGE TRANSACTIONS

(a) Transactions in the foreign currencies are normally recorded at the exchange rate prevailing at the time of transaction.

b) Any Income or expenses on account of foreign exchange difference either on settlement or on transaction, is being recognized in profit& loss account except in cases where they relate to the acquisition of fixed assets. In which cases are adjusted to the carrying cost of such assets.

12. EXPORT INCENTIVES

Export incentives are accounted for on the basis of exports sales affected during the period.

13. EMPLOYEE BENEFITS

a) Short term employee benefits are charged off at the un discounted amount in the year in which the related service is rendered.

b) Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The ammount charged off is recognized at the present value of the amounts payable determined using actuarial term benefits are charged to profit and loss Account.

14. DERIVATIVE TRANSACTIONS

In respect of Derivative Contracts, Premium paid, gains/ losses on settlement are recognized and Charged to Profit & Loss Account

15. MODVAT/CENVAT/VAT

Modvat/ cenvat/VAT on capital assets is credited to the assets/capital work in progress account. Modvat/ cenvat/ VAT on raw materials and other material are deducted from the cost of such materials.

16. PROPOSED DIVIDEND

No Dividend has been proposed to declare by the Board.

17. CONTINGENT LIABILITIES

a) Contingent liability in respect of show cause notices received only when they are converted into demands. Payments in respect of such demands. if any are shown as advances.

(b) Contingent liability under various fiscal laws includes those in respect of which the company/department is in appeal.

(c) Contingent liabilities are disclosed by way of notes.

18. TAXATION

Provision for current income taxis made after taking credit forallowance and exemptions.

In accordance with the Accounting standard 22- Accounting for Taxes on income, issued by the Institute of Chartered Accountants of India, the deferred tax for timing difference between the book & Tax profit is accounted for using the tax rates and the tax laws taht have been enacted or substantially enacted as of the balance sheet date. Virtual certainty that the assets can be realized in future.

19. MISCELLANEOUS EXPENDITURE

Miscellaneous Expenditure included amalgamation Expenses and are amortized over a period of 10 Years.