NOTE 1 : SIGNIFICANT ACCOUNTING POLICIES

a)

Accounting Conventions :

The Financial Statements of the Company arc prepared under the historical cost convention on accrual basis of accounting and in accordance with the mandatory accounting standards issued by the Institute of Chartered Accountants of India and referred to in section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and generally accepted accounting principles In India. The accounting policies not referred to otherwise have been consistently applied by the Company during the period.

b)

Use of Estimates

The preparation of financial statements in accordance with the GAAP requires management to make estimates and assumptions that may affect the reported amount of assets and liabilities, classification of assets and liabilities into non-current and current and disclosures relating to contingent liabilities as at the date of financial statements and the reported amounts of income and expenses during the reporting period. Although the financial statements have been prepared based on the management's best knowledge of current events and procedures/actions, the actual results may differ on the final outcome of the matterAransaction to which the estimates relates.

c)

Property Plant & Equipment:

The Property Plant & Equipment are stated at cost of acquisition/constniction (less Accumulated Depreciation, if any) except land. The cost of Property Plant & Equipment comprises of their purchase price including freight, duties, taxes or levies and directly attributable cost of bringing the assets to their working conditions for their intended use. The Company capitalizes its Property Plant & Equipment at a value net of GST received/receivable during the period in respect of eligible Capital Goods. Subsequent expenditures on Property Plant & Equipment have been capitalised only if such expenditures increase the fiiture benefits from the existing assets beyond their previously assessed standard of performance. The assets that are under construction/ercction or not fully acquired and therefore not available for productive use are shown as “Capital Work in Progress’* under Property Plant & Equipment and will be capitalized on completion of the construction/erectiou/acquisition activities.

d)

Intangible Assets

The Intangible Assets of Accounting Software, Server Software, Website Development etc. have been recognised at their cost of acquisition. On the basis of the availability of these assets for their intended use, relevant contractual agreements and technological changes that may affect the usefulness of these assets, the useful lives of these assets have been assumed ro be of five years from the date of their acquisition.

e)

Depreciation

The Depredation on Properly Plant & Equipment is provided on straight line method for the period of acquisition/constTucfion i.e. from the period from which such assets were available for their intended use on pro-rata basis on the basis of useful life of each of the Property Plant & Equipment as per Schedule D of die Companies Act, 2013 and in the manner specified in Schedule II of the Companies Act, 2013.

The amount of depreciation for the period has been derived by subtracting five per of the original cost of each of the assets as salvage value from the carrying amount respective assets as per the books of account as at the commencement of the year and the cost of acquisition in case of assets acquired during the period and such remaining carrying value or cost has been depreciated over the remairiiug-year-s^f useful life

f)

Inventories

Inventories of Raw Materials, Packing Materials, and Work-in-Process have been valued at cost. Finished Goods have been valued at cost or net realizable value whichever is lower. Costs in respect of all items of inventories have been computed on FIFO basis. The cost of Raw Materials comprises of the purchase price including duties and taxes, freight inwards and other expenditure directly attributable to the acquisition. The purchase pnee does not include GST credit availed of by the Company during the period. Work-in-Process includes cost of Raw Materials and conversion cost depending upon the stage of completion as determined. The cost of Finished Goods includes cost of conversion and other costs incurred in bringing the inventories to their present location and conditions. The Finished Goods are valued at cost or NRV whichever is lower.

g)

Revenue Recognition

All income and expenses are accounted on accrual basis. The Company recognised Sale of Goods when it had transferred the property in Goods to the buyer for a price or all significant risks and rewards of ownership had been transferred to die buyer and no significant uncertainty existed as to the amount of consideration that would be derived from such sale. The recognition event is usually the dispatch of goods to the buyer such that the Company retains no effective control over the goods dispatched. Income from investments, where appropriate, is taken into revenue in full on declaration or accrual and tax deducted at source thereon is treated as advance tax.

h)

Foreign Currency Transactions

I he transactions in foreign currency have been recorded using the rate of exchange prevailing on the date of transactions. The difference arising on the settlement/restatement of the foreign currency denominated Current Assets/Current Liabilities into Indian rupees has been recognized as expenses/income (net) of the period and carried to the statement of profit and loss.

i)

Employee Benefits

Contribution due / payable during the period towards provident fund is recognized in the profit and loss account. The Company has no obligation other than the contribution payable to the contribution payable to the provident fund.

j)

Borrowing Costs

The borrowing costs incurred by the company during the period in connection with the borrowing of hinds have been debited to the statement of profit and loss for the period.

k)

Segment Reporting

The dominant source of income of the company is from the sale of TMT Bars, Iron & other Steel Products which do not materially differ in respect of risk perception and the return realized/to be realized. Even the geographical environment in which the company operates does not materially differ considering the political and economic environment, the type of customers, assets employed and the risk and return associated in respect of each of the geographical area. So, the disclosure requirements pursuant to AS-17 - Segment Reporting issued by the ICAI are not applicable to the company.

1)

Impairment of Assets

The management of the company on the basis of periodical internal assessment determines whether there is any indication that an asset or group of identical assets may have been impaired. On the basis of the periodical internal assessment of recoverable values of the Property Plant & Equipment, the management of the company is of the view that the recoverable value of individual assets or group of assets as at the balance sheet date are higher than the carrying their carrying amounts and hence there is no impairment in the value of Property Plant & Equipment. __