1:7 Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can
be made of the amount of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources, Where there is a possible obligation or a present obligation that the
likelihood of outflow of resources is remote, no provision or disclosure is made.

1:8 Property, Plant and Equipment and depreciation

Property, Plant and Equipment are carried at cost of acquisition or construction less accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase price (excluding refundable taxes) borrowing
costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the
intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Depreciation on Property, Plant and Equipment has been provided on straight line method as prescribed in Schedule II
to the Companies. Act 2013, except in respect of certain assets in whose case the like of the assets has been assessed
based on technical certification taking into account the nature of the assets the estimated usage of the assets the
operating conditions of the assets past history of replacement, anticipated technological changes etc.

The estimated useful lives of the tangible fixed assets are as per Schedule II of Companies. Act 2013,

1:9 Inventories

Inventories are valued at lower of cost and estimated net realisable value, after providing for cost of obsolescence and
other anticipated losses, wherever considered necessary. Cost is computed on weighted average basis.

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

1:10 Foreign exchange transactions

i. Transaction in foreign currency are recorded at the exchange rates prevailing on the dates of the transactions.
Variations, if any on actual realisation/payment are considered in the Profit and Loss Account.

ii. Current assets and current liabilities relating to transactions in foreign currency remaining unsettled at the year-
end are restated at year end rates and differences, if any are considered in the Profit and Loss Account.

iii. Exchange differences, if any arising on settlement of liabilities incurred for purchase of fixed assets are considered
in the Profit and Loss Account.

1:11 Employee Benefits

a. Defined Contribution Plans

The Company has defined contribution plan for post-employment benefits namely provident fund and Maharashtra
labour welfare fund which are recongnised by the Income Tax authorities.

Under the provident fund plan the Company contributes to a Government administered provident fund on behalf of its
employees and has no further obligation beyond making its contribution.

The Company's contributions to the above funds are changed to expenses every year.

1:12 Investments

Long-term investments are stated at cost. Provision is made to recognize a decline, other than temporary in value of
long term Investments and is determined separately for each individual investment. Current Investments are stated at
lower of cost and fair value, computed separately in respect of each category of investment.

1:13 Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any
such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the
asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount,
the carrying amount is reduced to its recoverable amount. The reduction is treated is treated as an impairment loss and
is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that if a previously
assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the lower
of recoverable amount and the carrying amount that would have been determined had no impairment loss been
recognised.

1:14 Segment Reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal
organisation and management structure. The operating segments are the segments for which separate financial
information is available and for which operating profit/loss amounts are evaluated regularly by the executive
management in deciding how to allocate resources and in assessing performance. The accounting policies adopted for
segment reporting are in line with the accounting policies of the company. 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. Revenue expenses, assets and liabilities which relate to the Company as a whole
and are not allocable to segments on reasonable basis, have been included under unallocated revenue/expenses/assets
/ liabilities.

1:15 Transfer Pricing

The Company's management is of the opinion that its international transactions are at arm's length so the appropriate
legislation will not have an impact on the financial statements, particularly on the tax expenses and that of provision for
taxation.

1:16. Operating lease

Leases where the lessor retains, substantially all the risks and rewards incidental to ownership of the leased assets are
classified as operating lease. Operating lease expense are recognized in the statement of profit and loss on a straight -
line basis over the lease term.

1:17 Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured.

Interest Income

Interest Income from a financial asset is recognized when it is probable that the economic benefit will flow to the
company and the amount of Income can be measured reliably. Interest Income is accrued on a time basis by reference
to the amortized cost and at the effective interest rate applicable.

1:18 Taxation

Income Tax expense comprises current income tax (i.e. amount of tax for the period determined in accordance with the
income tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting
income and taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance
sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be
realized in future, however where there is unabsorbed depreciation or carried forward loss under taxation lows
deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonably /virtually
certain (as the case may be) to be realized.

For M/s SHYAM C. AGRAWAL & CO. For and on behalf of Board of Directors

Chartered Accountants MARDIA SAMYOUNG CAPILLARY TUBES COMPANY

LIMITED

Sd/- Sd/-

Sd/-

_S. _C. _AGRAWAL RAVINDRA MARDIA GAURAV MARDIA

(P_rop_ri_et_or) Managing Director Director

Membership No. 31774 DIN: 00077012 DIN: 00074333

Place: Mumbai ^Sd/-

^{Dated: 30th May}, ²⁰²⁴ ANAND SHINDE POONAM KANADE

Chief Financial Officer Company Secretary