a) Basis of preparation of Financial Statements & Accounts:-

1 he financial statements & accounts are prepared under historical cost convention in accordance
with the mandatory Accoundng Standards as specified under section 133 of the Companies Act
2013, read with Rule 3 of the Companies (Accounting Standards) Rules, 2021 and the relevant
provisions of the Companies Act, 2013.

The Company has adopted accrual basis of accounting.

Accounting policies except specifically referred to, are consistent and in consonance with generally
accepted accounting policies.

b) Use of Estimates:-

The preparation and presentation of financial statements in conformity with the generally accepted
accounting principles, requires estimates and assumptions to be made that affect the reported
amounts of assets and liabilities, revenues and expenditures and disclosure of contingent liabilities.
The estimates and assumptions used in accompanying financial statements are based upon
management s evaluation of relevant facts and circumstances as on the date of financial
statements. Difference between the actual results and estimates are recognized in the period in
which results materialize/ are known.

c) Inventories:-

Inventories are valued at cost and no net realizable value is calculated. Cost of Inventories
comprises of purchase costs, and other cost incurred in bringing the inventories to their present
location and condition. ITie cost is determined as under.

i. Raw materials and Consumables on FIFO Basis.

ii. finished Products - Valued at 92.53% of latest sales price. ^

iii. Work-in-Progress - Valued at 75% of latest sales price.

d) Cash flow statement:-

Cash flows are reported using the indirect method as specified under Accounting Standard - 3,
whereby profit before tax 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.

e) Revenue Recognition: Revenue is recognized as follows

i. Revenue is recognized at the time of dispatch of goods to the customer along with sales
invoice and e-way bill (wherever applicable).

ii. Sale of services are recognized when services are delivered to the customer and are
recorded net of Duties, Taxes and Trade Discounts & Rebates.

iii. Interest Income is recognised on a time proportion basis

iv. Dividend Income is recognised on receipt basis.

1) Tangible Assets:-

Tangible assets, capital work in progress arc stated at cost, less Accumulated depreciation and
Impairment losses, if any. Cost comprises of Purchase price, borrowing costs, if capitalization
criteria are met and any cost attributable to bringing the assets to its working condition for its
intended use which includes taxes (except taxes of which input credit is been claimed), freight, and
installation and allocated incidental expenditure during the construction/ acquisition.

When parts of an item of tangible assets have different useful lives, they arc accounted for as
separate items (Major Components) of property, plant and equipment. Subsequent expenditure
relating to tangible assets is capitalized only if such expenditure results in an increase in the future
benefits from such assets beyond its previously assessed standard of performance.

g) Dcpreciation:-

Depreciation on Property, Plant and Equipment is provided to the extent of depreciable amount
on Written Down Value (WDV) Method. Depreciation is provided based on useful life of assets as
prescribed in Schedule II to the Companies Act, 2013.

Depreciation on addition to tangible assets is provided on pro-rata basis from the date the assets
are ready for intended use. Depreciation on sale/ discard from tangible assets is provided for up to
the date of sale, deduction or discard of tangible assets as the case may be.

h) Government grants:-

Grants and subsidiaries from the government are being recognised on accrual basis.

i) Investments:-

Investments are valued at cost except where there is a permanent decline in the value of
investments.

Non-current investment includes Bank Shares and Shares of Associate Company.

j) Employee Benefits

All short term employee benefits are recognized at their undiscountcd amount in the accounting
period in which they are incurred.

Defined Contribution Plan

The company is having defined contribution plan for post employment benefits in the form of
Provident bund. Under the Provident Fund Plan, the company contributes to a government
administered Provident Fund on behalf of employees. The company has no further obligation
beyond making the Contribution.

Defined Benefit Plan

The company has made provision for payment of Gratuity to its employees. This Provision is
made as per the method prescribed under the Payment of Gratuity Act. The cost of providing
gratuity under this plan is determined on the basis of actuarial valuation at period end.

k) Borrowing Costs:-

The Interest on cash credit and term loans is charged to profit and loss and classified under
Finance costs. The borrowing costs that are attributable to acquisition, construction or production
of qualifying assets are capitalised as a part of cost of such Assets.

l) Leases:-

Lease under which the company assumes substantially all the risks and rewards of ownership are
classified as finance leases. Lease hold land acquired by the company is capitalized at cost paid for
acquisition and related legal costs.

m) Earnings Per Share:-

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable
to equity shareholders by the weighted average number of equity shares outstanding during the
period. Earnings considered in ascertaining the Company’s earnings per share is the net profit for
the period after deducting any attributable tax thereto for the period. The weighted average
number of equity shares outstanding during the period for all periods presented is adjusted for
e\ ents, such as bonus shares, that have changed the number of equity shares outstanding, without
corresponding change in the resources.

n) Taxes on Incomer-

Income lax for the period is provided as per the provisions of the Income Tax Act, 1961 after
considering various deductions available under the Act.

Deferred lax Expense/Income is recognized for "timing differences" between the accounting
income and the taxable income using the tax rates and laws that are enacted or substantially
enacted as on the Balance Sheet date. Ihe Deferred Tax Assets is recognized and carried forward
only to the extent there is a reasonable certainty that the asset will be realized in future.

o) Intangible Assets:-

Intangible assets are recorded at the consideration paid for acquisition of such assets and arc
carried at cost less accumulated amortization and impairment, the company is amortized its
intangible assets on SLM basis.

Software being intangible assets are in the form of license to use the software. So management
has decided to amortised under SLM method as prescribed under AS-26 Intangible Assets.

p) Impairment of Assets:-

In accordance with (AS-28) - Impairment of Assets, the carrying amounts of the Company’s
assets including intangible assets are reviewed at each balance sheet date to determine whether
there is any indication of impairment. If any such indications exist, the recoverable amount of
each asset is estimated, as the higher of the net selling price and the value in use. An impairment
loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its
recoverable amount. If at the balance sheet date, there is an indication that a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed and the asset is assessed at
the recoverable amount subject to a maximum of depreciable historical cost.