Accounting Policies of Rathi Graphic Technologies Ltd. Company

Mar 31, 2025

1. SIGNIFICANT ACCOUNTING POLICIES

a) Basis of Preparation of Financial Statements:

The financial statements of the company have been prepared in accordance with the Indian Accounting standards
(Ind AS) notified under the companies (Accounting Standards) Rules 2015 and Companies (Accounting
Standards) Rules 2016, the provisions of Companies Act. 2013. and guidelines issued by the securities and
Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change
in the accounting policy hitherto in use.

The financial statements are presented in Indian Rupees (INR).

All amounts disclosed in the financial statements have been rounded off to the nearest mpees in Thousands, as
per requirement of Schedule III of the Act. unless otherwise stated.

b) Use of Estimates:

The preparation of the financial statements is in conformity with Ind AS requires Management to make
estimates, judgments, and assumptions. The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and liabilities on the date of financial
statements and the reported amount of revenues and expenses during reporting period. Difference between the
actual results and estimates are recognized in the period in which the results are known/ materialized.

c) Critical accounting judgments, assumptions and key sources of estimation and uncertainty

The preparation of the financial statements in conformity with the measurement principle of Ind AS requires
management to make estimates, judgments, and assumptions. These estimates, judgments and assumptions
affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures
of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues
and expenses during the period. Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates are made as management becomes
aware of changes in circumstances surrounding the estimates. Differences between the actual results and
estimates are recognized in the year in which the results are known / materialized and. if material, their
effects are disclosed in the notes to the financial statements.

Following are the significant areas of estimation, uncertainty, and critical judgements in applying accounting
policies that have the most significant effect on the amounts recognized in standalone financial statements:

S Assessment of useful life of property, plant and equipment and intangible asset.

S Significant judgment is required in determination of taxability of certain income and deductibility of certain
expenses during the estimation of the provision for income taxes.

S claims are accounted for on determination of certainty of realization thereof.

S Impairment allowances for on trade receivables: The Company evaluates whether there is any objective
evidence that trade receivables are impaired and determines the amount of impairment allowance as a result
of the inability of the customers to make required payments. The Company bases the estimates on the ageing
of the trade receivables balance, credit-worthiness of the trade receivables and historical write-off experience.

S Provisions and Contingencies

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future
outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably
estimated. The timing of recognition and quantification of the liability requires the application of judgement
to existing facts and circumstances, which can be subject to change. Management judgment is required for
estimating the possible outflow of resources, if any. in respect of contingencies/claim/litigations/ against the
Company as it is not possible to predict the outcome of pending matters with accuracy. The carrying
amounts of provisions and liabilities and estimation for contingencies are reviewed regularly and revised to
take account of changing facts and circumstances.

d) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification.
An asset is treated as current when it is:

• Expected to be realized or intended to be sold or consumed in the normal operating cycle; • Held primarily
for the purpose of trading;

• Expected to be realized within twelve months after the reporting period; or

• Cash or cash equivalent unless restricted from being exchanged or 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 current when:

• It is expected to be settled in the normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period; or

• There is no unconditional right to defer the settlement of die liability for at least twelve months after the

reporting period.

All other liabilities are classified as non-current.

The Company has deemed its operating cycle as twelve months for the purpose of current/noncurrent
classification.

e) Revenue Recognition

Revenue is measured at the fair value of consideration received or receivable.

S The Company recognizes revenue from sale of goods when it satisfies a performance obligation in accordance
with the provisions of contract with the customer. This is achieved when it no longer retains control over the
goods sold, the amount of revenue can be measured reliably, it is probable that the economic benefits
associated with the transaction will flow to the Company and the costs incurred or to be incurred in respect of
the transaction can be measured reliably. Sale of goods and services is recognized net of taxes collected on
behalf of third parties.

The performance obligation in case of sale of goods is satisfied at a point in time i.e.. when the material is
shipped to the customer or on delivery to the customer, as may be specified in the contract.

S Interest income from a financial asset is recognized when it is probable that the economic benefits will flow
to the Company and the amount of income can be measured reliably. Interest income is accrued on a time
proportion basis, by reference to the principal outstanding and the effective interest rate (‘EIR'') applicable,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial
assets to that asset’s net carrying amount on initial recognition.

C Insurance Claim is accrued in the year when the right to receive is established and is recognized to the extent
there is no uncertainty about its ultimate collection.

f) Impairment of non-financial assets

At each Balance Sheet date, the Company assesses whether there is an indication that an asset may be impaired
and whether there is an indication of reversal of impairment loss recognized in the previous periods. If any
indication exists or when annual impairment testing for an asset is required, the Company determines the
recoverable amount and impairment loss is recognized when the carrying amount of an asset exceeds its
recoverable amount.

An asset’s recoverable amount is the higher of an asset or Cash-Generating Unit’s (CGU) fair value less costs
of disposal and its value in use. Recoverable amount is determined for an individual asset unless the asset does
not generate cash inflow s that are largely independent of those from other assets or groups of assets.

When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount. In assessing the value in use. the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset. In determining fair value less costs of disposal,
recent market transactions are considered. If no such transactions can be identified, an appropriate valuation
model is used

g) 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.

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

h) Inventories:

Inventories are valued at lower of cost and net realizable value. Cost of inventories is determined on weighted
average basis and comprises of expenditure incurred in the normal course of business in bringing such
inventories to their location and includes, where applicable appropriate overheads.

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

As there are no operations in the Company inventories value has been taken at Nil.

i) Cash and cash Equivalents

Cash and cash equivalent in the Balance Sheet comprise cash at banks and on hand and short-term deposits,
which are subject to insignificant risk of changes in value.

For the purpose of statement of cash flows, cash and cash equivalents consist of cash and short-term deposits
as defined above as they are considered as an integral part of the Company’s cash management.

Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past 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.

j) PROPERTY, PLANT AND EQUIPMENT

Leasehold land has been revalued as on 31st March. 1992. All other property, plant and equipment are stated
at cost, net of recoverable taxes, trade discounts and rebates less accumulated depreciation and impairment
loss, if any.

The cost of tangible assets comprises its purchase price, borrowing cost. Trial run Costs, any costs directly
attributable to bringing the asset into the location and condition necessary for it to be capable of operating in
the manner intended by management, initial estimation of any decommissioning obligations and finance cost.

When significant parts of the property, plant and equipment are required to be replaced at intervals, the
Company derecognizes the replaced part and recognizes the new part with its own associated useful life and
depreciated accordingly.

Stores and spares which meet the definition of property, plant and equipment and satisfy recognition criteria
of Ind AS 16 are capitalized as property, plant, and equipment.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon
disposal or when no future economic benefits are expected from its use. Any gain or loss arising on
derecognition of the asset is included in the Statement of Profit and Loss when the asset is derecognized.

Capital work-in-progress includes cost of property, plant and equipment which are not ready for their intended
use.

The residual values and useful lives of property, plant and equipment are reviewed at each financial year end
and changes, if any. are accounted prospectively.

Depreciation on the property, plant and equipment is provided over the useful life of assets as specified in
Schedule II to the Companies Act. 2013 using straight line method. Property, plant, and equipment which are
added/disposed of during the year, depreciation is provided on pro rata basis with reference to the month of
addition/deletion.

k) Investments

Trade Investments are the investments meant to enhance the company’s interest. Investments are classified
as current or non-current based on the management’s intention at the time of investment. Long-term
investments are stated at cost. Provision for diminution in the value of long-term investment is made only if
such a decline is permanent in nature.

Any reduction in the carrying amount and any reversals of such reductions are charged or credited to the
Statement of Profit and Loss. Profit or Loss on sale of investments is determined on the basis of weighted
average carrying amount of investments disposed of, if any.

In view of the fact that RGTL industries Limited is under CIRP/liquidation since 2019. provision for
diminution in the value of investments had been made in the financial year 2019-20

l) 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 to get ready
for intended use. All other borrowing costs are charged revenue.

m) Current Tax and Deferred Tax:

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

Deferred tax is recognized on temporary differences between the carry ing amounts of assets and liabilities in
the balance sheet and their corresponding tax bases. Deferred tax liabilities are generally recognized for all
taxable temporary'' differences. Deferred tax assets are generally recognized for all deductible temporary
differences and unused tax losses being carried forward, to the extent that it is probable that taxable profits
will be available in future against which those deductible temporary'' differences and tax losses can be
utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from
initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if
the temporary'' difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the
asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.

n) Retirement benefits

There are employees as on 31.03.2025 and liability will be accounted for as and when it will arise.

o) Foreign exchange transactions

Foreign currency transactions are accounted for at the exchange rate prevailing on the date of the transaction.
All monetary foreign currency assets and liabilities are converted at the exchange rates prevailing at the
reporting date. All exchange differences arising on translation of monetary items are dealt with in the
Statement of Profit and Loss.

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Mar 31, 2015

I. Accounting Convention

The accounts of the Company have been prepared under the historical cost convention on the accrual basis of accounting in accordance with the accounting principles generally accepted in India (GAAP) and comply with the mandatory accounting standards notified under the relevant provisions of the Companies Act, 2013. The financial statements are presented in Indian rupees rounded off to nearest decimal.

During the year ended March 2015, the Schedule III notified under the Companies Act, 2013 has become applicable to the Company for presentation of its financial statements. The Schedule III has a significant impact on the presentation and disclosures made in the financial statements. The Company has also reclassified/ regrouped the previous year figures in accordance with the requirements applicable in the current year.

All Assets and Liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

II. TANGIBLE FIXED ASSETS AND DEPRECIATION

a) Ta) Tangible Fixed Assets are stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation /amortization / impairment. The cost of fixed assets includes effect of exchange difference on long term foreign currency borrowings, freight and other incidental expenses related to the acquisition and installation of the respective assets. Borrowings cost directly attributable to fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized. Interest on loans and other financial charges in respect of qualifying assets and expenditure incurred on start up and commissioning of the project and or substantial expansion, including the expenditure incurred on Trial Runs up to the date of commencement of commercial production are capitalized.

b) Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013, as per Straight Line Method (SLM).

III. INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investment is classified as long-term investments. However, that part of long-term investments which is expected to be realized within 12 months after reporting date is also presented under ‘current assets' as "current portion of long-term investments" in consonance with the current-non-current classification scheme as prescribed in Schedule III to the Companies Act, 2013.

Long- term investments are valued at cost. Any decline other than temporary, in the value of long-term investments, is adjusted in the carrying value of such investments. Current investments are carried forward at lower of cost and fair value

Any reduction in the carrying amount and any reversals of such reductions are charged or credited to the Statement of Profit and Loss. Profit or Loss on sale of investments is determined on the basis of weighted average carrying amount of investments disposed of.

IV. VALUATION OF INVENTORIES

Inventories are valued as per AS-2 (Valuation of Inventories) issued by the ICAI as under:

a) Stocks of Raw Materials are valued at cost by adopting FIFO Method.

b) Stock of Work in process is valued at cost of Raw Material and proportionate direct manufacturing expenses.

c) Stock of stores, spares and packing material are valued at cost by adopting FIFO Method.

d) Stocks of finished goods are valued at lower of cost or net realizable value. Cost includes raw material cost and appropriate share of manufacturing expenses and is inclusive of depreciation and excise duty paid / payable thereon.

V. RESEARCH AND DEVELOPMENT EXPENDITURE

The capital expenditures are debited to the respective heads under fixed assets. The revenue expenditure is charged to revenue account and disclosed separately.

VI. BORROWING COSTS

Borrowing costs attributable to acquisition, construction of qualifying assets are capitalized as part of cost of the relevant assets upto the date the asset is put to use. All other borrowing costs are recognized as an expense in the year in which they are incurred.

VII. FOREIGN CURRENCY TRANSACTIONS

Transactions for foreign currency are recorded at the exchange rate prevailing on the date of transaction. For the foreign currency transactions outstanding at the end of the year, the exchange rate differences are being recognized at year end. However, foreign currency transactions which are settled up to the date of balance sheet, the exchange fluctuation is therefore accounted for on actual basis.

VIII. IMPAIRMENT OF ASSETS

In case of indication of impairment of the carrying amount of the Company's assets, an asset's recoverable amount is estimated. Impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

Reversal of impairment Loss recognized in prior periods is recorded when there is an indication that the impairment loss recognized for the assets no longer exists or has decreased.

Post impairment depreciation is provided on the revised carrying value of the assets over its remaining useful life.

IX. Earnings per Share

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

X. REVENUE RECOGNITION

a) Sales are recognized on dispatch of goods to customers. Sales represents invoiced value of goods sold and services rendered, net of sales tax but inclusive of excise duty.

b) Profit / Loss on sale of Fixed Assets are recognized in the year of sale.

c) Interest is accounted on accrual basis.

d) Dividend is accounted on receipt basis.

XI. EMPLOYEE BENEFIT

a) Short-term employee benefits:

All employee benefit falling due within twelve months of the end of the period in which the employee render the related services are classified as short term employee benefits, which include benefits like salaries, wages etc. are recognized as expenses in the period in which the employee renders the related service and measured accordingly.

b) Post-employment benefits:

Post employment benefit plans are classified into defined contribution plans and defined benefit plans in line with the requirements of AS-15 on "Employee Benefit".

Gratuity and Leave Encashment

Gratuity and leave encashment which are defined benefits are recognized in the Statement of Profit and Loss based on actuarial valuation using projected unit credit method as at Balance Sheet date by an independent actuary.

XII. DEFERRED REVENUE EXPENDITURE

Deferred revenue expenditure is written off over a period of six year.

XIII. MISCELLANEOUS EXPENDITURE

Miscellaneous Expenditure is written off over a five year

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Mar 31, 2014

I. Accounting Convention

The accounts of the Company have been prepared under the historical cost convention on the accrual basis of accounting in accordance with the accounting principles generally accepted in India (GAAP) and comply with the mandatory accounting standards notified under the Companies (Accounting Standards) Rules, 2006, as amended, and with the relevant provisions of the Companies Act, 1956. The financial statements are presented in Indian rupees rounded off to nearest decimal.

All Assets and Liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the revised schedule VI of the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and Liabilities.

II. tangible fixed assets and depreciation

a) Tangible Fixed Assets are stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation /amortization / impairment. The cost of fixed assets includes effect of exchange difference on long term foreign currency borrowings, freight and other incidental expenses related to the acquisition and installation of the respective assets. Borrowings cost directly attributable to fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized. Interest on loans and other financial charges in respect of qualifying assets and expenditure incurred on start up and commissioning of the project and or substantial expansion, including the expenditure incurred on Trial Runs up to the date of commencement of commercial production are capitalized.

b) Depreciation is provided on Straight Line Method at rates mentioned and in the manner specified in Schedule XIV to the Companies Act, 1956, as

amended by Notification No.GSR 756 (E) dated 15th December, 1993 of the Ministry of Law, Justice & Company Law Affairs, Department of Company Affairs.

III. INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investment is classified as long-term investments. However, that part of long-term investments which is expected to be realized within 12 months after reporting date is also presented under ''current assets'' as "current portion of long-term investments" in consonance with the current-non-current classification scheme of revised Schedule VI.

Long- term investments are valued at cost. Any decline other than temporary, in the value of long-term investments, is adjusted in the carrying value of such investments. Current investments are carried forward at lower of cost and fair value

Any reduction in the carrying amount and any reversals of such reductions are charged or credited to the Statement of Profit and Loss. Profit or Loss on sale of investments is determined on the basis of weighted average carrying amount of investments disposed of.

IV. VALUATION OF INVENTORIES

Inventories are valued as per AS-2 (Valuation of Inventories) issued by the ICAI as under:

a) Stocks of Raw Materials are valued at cost by adopting FIFO Method.

b) Stock of Work in process is valued at cost of Raw Material and proportionate direct manufacturing expenses.

c) Stock of stores, spares and packing material are valued at cost by adopting FIFO Method.

d) Stocks of finished goods are valued at lower of cost or net realizable value. Cost includes raw material cost and appropriate share of manufacturing expenses and is inclusive of depreciation and excise duty paid / payable thereon.

V. RESEARCH AND DEVELOpMENT EXpENDITURE

The capital expenditures are debited to the respective heads under fixed assets. The revenue expenditure is charged to revenue account and disclosed separately.

VI. BORROWING COSTS

Borrowing costs attributable to acquisition, construction of qualifying assets are capitalized

as part of cost of the relevant assets upto the date the asset is put to use. All other borrowing costs are recognized as an expense in the year in which they are incurred.

VII. FOREIGN CURRENCY TRANSACTIONS

Transactions for foreign currency are recorded at the exchange rate prevailing on the date of transaction. For the foreign currency transactions outstanding at the end of the year, the exchange rate differences are being recognized at year end. However, foreign currency transactions which are settled up to the date of balance sheet, the exchange fluctuation is therefore accounted for on actual basis

VIII. IMPAIRMENT OF ASSETS

In case of indication of impairment of the carrying amount of the Company''s assets, an asset''s recoverable amount is estimated. Impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

Reversal of impairment Loss recognized in prior periods is recorded when there is an indication that the impairment loss recognized for the assets no longer exists or has decreased.

Post impairment depreciation is provided on the revised carrying value of the assets over its remaining useful life.

IX. Earnings per Share

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

X. REVENUE RECOGNITION

a) Sales are recognized on dispatch of goods to customers. Sales represents invoiced value of

goods sold and services rendered, net of sales tax but inclusive of excise duty.

b) Profit/Loss on sale of Fixed Assets are recognized in the year of sale.

c) Interest is accounted on accrual basis.

d) Dividend is accounted on receipt basis.

XI. EMPLOYEE BENEFIT

a) Short-term employee benefits:

All employee benefit falling due within twelve months of the end of the period in which the employee render the related services are classified as short term employee benefits, which include benefits like salaries, wages etc. are recognized as expenses in the period in which the employee renders the related service and measured accordingly

b) Post-employment benefits:

Post employment benefit plans are classified into defined contribution plans and defined benefit plans in line with the requirements of AS-15 on "Employee Benefit".

Gratuity and Leave Encashment

Gratuity and leave encashment which are defined benefits are recognized in the Statement of Profit and Loss based on actuarial valuation using projected unit credit method as at Balance Sheet date by an independent actuary

XII. DEFERRED REVENUE EXpENDITURE

Deferred revenue expenditure is written off over a period of six year.

XIII. MISCELLANEOUS EXpENDITURE

Miscellaneous Expenditure is written off over a five year

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Mar 31, 2013

I. Accounting Convention

The accounts of the Company have been prepared under the historical cost convention on the accrual basis of accounting in accordance with the accounting principles generally accepted in India (GAAP) and comply with the mandatory accounting standards notified under the Companies (Accounting Standards) Rules, 2006, as amended, and with the relevant provisions of the Companies Act, 1956. The financial statements are presented in Indian rupees rounded off to nearest decimal.

All Assets and Liabilities have been classified as current or non-current as per the_Xompany''s normal operating cycle and other criteria set out in the revised schedule VI of the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and Liabilities.

II. TANGIBLE FIXED ASSETS AND DEPRECIATION

a) Tangible Fixed Assets are stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation /amortization / impairment. The cost of fixed assets includes effect of exchange difference on long term foreign currency borrowings, freight and other incidental expenses related to the acquisition and installation of the respective assets, Borrowings cost directly attributable to fixed assets which necessarily taire a substantial period of time to get ready for their intended use are capitalized. Interest on loans and other financial charges in respect of qualifying assets and expenditure incurred on start up and commissioning of the project and or substantial expansion, including the expenditure incurred on Trial Runs up to the date of commencement of commercial production are capitalized.

b) Depreciation is provided on Straight Line Method at rates mentioned and in the manner specified in Schedule XIV to the Companies Act, 1956, as amended by Notification No.GSR 756 (E) dated 15fh December, 1993 of the Ministry of Law, Justice & Company Law Affairs, Department of Company Affairs.

III. INVESTMENTS

Investments that are readily realizable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investment is classified as long-term investments. However, that part of long-term investments which is expected to be realized within 12 months after reporting date is also presented under ''current assets'' as "current portion of long-term investments" in-consonance with the current-non-current classification scheme of revised Schedule VI.

Long- term investments are valued at cost. Any decline other than temporary, in the value of long-term investments, is adjusted in the carrying value of such investments. Current investments are carried forwai L at lower of cost and fair value Any reduction in the carrying amount and any reversals of such reductions are charged or credited to the Statement of Profit and Loss. Profit or Loss on sale of investments is determined on the basis of weighted average carrying amount of investments disposed of.

IV. VALUATION OF INVENTORIES

inventories are valued as per AS-2 (Valuation of Inventories) issued by the iCAl as under:

a) Stocks of Raw Materials are valued at cost by adopting FIFO Method.

b) Stock of Work in process is valued at cost of Raw Material and proportionate direct manufacturing expenses.

c) Stock of stores, spares and packing material are valued at cost by adopting FIFO Method.

d) Stocks of finished goods are valued at lower of cost or net realizable value. Cost includes raw material cost and appropriate share of manufacturing expenses and is inclusive of depreciation and excise duty paid / payable thereon.

V. RESEARCH AND DEVELOPMENT EXPENDITURE

The capital expenditures are debited to the respective heads under fixed assets. The revenue expenditure is charged to revenue account and disclosed separately.

VI. BORROWING COSTS

Borrowing costs attributable to acquisition, construction of qualifying assets are capitalized as part of cost of the relevant assets upto the date the asset is put to use. All other borrowing costs are recognized as an expense in the year in which''they are ihcurfed.

Vli. FOREIGN CURRENCY TRANSACTIONS

I Transactions for foreign currency are recorded at the exchange rate prevailing on the date of transaction. Forthe foreign currency transactions outstanding at the end of the year, the exchange rate differences are being recognized at year end. However, foreign currency transactions which are settled up to the date of balance sheet, the exchange fluctuation is therefore accounted for on actual basis,

VIM. IMPAIRMENT OF ASSETS

In case of indication of impairment of the carrying amount of the Company''s assets; an asset''s recoverable amount is estimated. Impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

Reversal of Impairment Loss recognized in prior periods is recorded when there is an indication that the impairment loss recognized for the assets no longer exists or has decreased.

Post Impairment depreciation is provisions on revised carrying value of the assets over its remaining useful life.

IX. Earhings per Share .

Basic earnings per shared are calculated by i _ dividing the net profitf(toss) for the period Lb ii. attributable to the equity shareholders by the I weighted average number of equity shares

outstanding

X REVENUE RECOGNlflONT

a) Sales- are recognized on dispatch of goods to customers. Sales represents invoiced value of f goods sold and services rendered, net of sales recognized in the year of sale.

c) Interest is accounted on basis.

XI. EMPLOYEE BENEFIT ^

a) Short-term employee benefits:

All employee benefit falling due within twelve months of the end of the period in which the employee render the related services are classified as short term employee benefits, which include benefits like salaries, wages etc. are recognized as expenses in the period in which the employee renders the related service and measured accordingly.

b) Post-employment benefits:

Post employment benefit plans are classified into defined contribution plans and defined benefit plans in line with the requirements of A''S-15 on "Employee Benefit".

Gratuity and Leave Encashment

Gratuity and leave encashment which are defined benefts are recognized in the Statement of Profit and Loss based on actuarial valuation using projected unit credit method as at Balance Sheet date by an independent actuary.

XM/DEFRRED revenue EXPENDITURE

Deferred revenue expenditure is written off over a period of six year.

XIII. MISCELLANEOUS EXPENDITURE

Miscellaneous Expenditure is Written off over a five year.

Notes:

a) The Term Loan from State Bank of Bikaner ancUaipur is secured by first hypothecation charge by covering entire Fixed Assets of the Company. Gollaterai security by extending of 2nd charge over Company''s entire Current Assets {present and future) and personal Guarantee of one Director.

b) Balance of Term Loan-l is payable In 1 quarterly instalments started from April, 2013 (Previous year repayable in 7 quarterly instaiment from April,2012).

c) Balance of Term Loan-11 is payable in 14 quarterly instalments started from April, 2013 (Previous year repayable in 18 quarterly instaiment from April,2012).

b) Car Loan are secured against hypothecation of vehicles purchase thereunder. Repayment of monthly installment till the tenure of loan concerned.

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Mar 31, 2010

1. BASIS OF ACCOUNTING

a) The financial statements of the Company are prepared under the historical Cost Convention using Accrual Method of Accounting.

b) The financial statements have been prepared in accordance with the mandatory Accounting Standards and relevant presentation requirements of the Companies Act, 1956.

2. FIXED ASSETS AND DEPRECIATION

a) Fixed assets are accounted for at cost of acquisition inclusive of freight, duties, taxes, erection, installation and other incidentals related to acquisitions and exclusive of Excise Modvat recoverable on purchase of Capital Goods.

b) Cost of fixed Assets acquired from outside India are converted into Indian rupees at the exchange rates prevailing on the date of disbursements.

c) Depreciation on fixed Assets is provided on Straight Line Method considering single shift working in accordance with the rates specified in schedule XIV of the Companies Act, 1956 as amended by Notification No. GSR 756(E) dated 16 December, 1993 of the Ministry of Law, Justice & Company Law Affairs, Department of Company Affairs.

d) Stock of finished goods are valued at Lower of cost of net realizable value. Cost includs raw materials cost and appropriate share of manufacturing expenses and is inclusive of depreciation and excise duty paid / payable thereon.

3. INVESTMENT

Investments are taken at cost.

4. SALES

Sales represents invoiced value of goods sold and services rendered, net of sales tax but inclusive of excise duty.

5 INVENTORIES

Inventories are valued as per AS-2 (Valuation of Inventories) issued by the ICAI as under:

a) Stocks of Raw Materials are valued at cost by adopting FIFO Method.

b) Stock of Work in process is valued at cost of Raw Material and proportionate direct manufacturing expenses.

c) Stock of stores, spares and packing material are valued at cost by adopting FIFO Method.

d) Stock of finished goods are valued at lower of Cost or net realizable value. Cost includes raw materials cost and appropriate share of manufacturing expenses and is inclusive of depreciation and excise duty paid/payable thereon.

6. RESEARCH AND DEVELOPMENT EXPENDITURE

The capital expenditures are debited to the respective heads under fixed assets. The revenue expenditure is charged to revenue account and disclosed separately.

7. BORROWING COSTS

Borrowing costs attributable to acquisition, construction

of qualifying assets are capitalized as part of cost of the relevant asset up to the date the asset is put to use. All other borrowing costs are recognized as an expense in the year in which they are incurred.

8. FOREIGN CURRENCY TRANSACTIONS

Transactions for foreign currency are recorded at the exchange rate prevailing on the date of transaction. For the foreign currency transactions outstanding at the end of the year, the exchange rate difference are being recognized at year end. However, foreign currency transactions which are settled up to the date of balance sheet, the exchange fluctuation is therefore accounted for on actual basis.

9. RETIREMENT BENEFIT PLANS:

Future liability for gratuity and leave encashment is determined on the basis of actuarial valuation at year end.

10. PROVISION FOR CURRENT AND DEFFEREDTAX :

Provision for current tax liability is estimated as per the provisions of the Income Tax Act, 1961

Deferred tax is recognized subject to the consideration of prudence on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more period.

11. IMPAIRMENT OF ASSETS:

In case of indication of impairment of the carrying amount of the Companys assets, an assets recoverable amount is estimated impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

Reversal of Impairment loss recognized in prior periods is recorded when there is an indication that the impairment loss recognized for the asset no longer exist or has decreased.

Post Impairment depreciation is provided on the revised carrying value of the asset over its remaining useful life.

12. REVENUE RECOGNITION

i) Sales are recognized on dispatch of goods to customers.

ii) Profit / Loss on sale of investment and Fixed Assets are recognized in the year of sale.

13. DEFERRED REVENUE EXPENDITURE

Deferred revenue expenditure is written off over a period of six year.

14.MISCELLENOUS EXPENDITURE

Miscellaneous Expenditure is written off over a five year.