a) Basis of Accounting :
 
 The accounts have been prepared under the historical cost convention on
 an accrual basis as a going concern and materially comply with the
 mandator Accounting Standards issued by the Institute of Chartered
 Accountants of India.
 
 The preparation of financial statements in conformity with GAAP
 requires that the management of the Company makes estimates and
 assumptions that affect the reported amounts of income and expenses of
 the period, the reported balances of assets and liabilities and the
 disclosures relating to contingent liabilities as of the date of the
 financial statements.  Examples of such estimates include the useful
 lives of fixed assets, provision for doubtful debts/advances etc.
 Actual results could differ from these estimates.
 
 b) Revenue recognition
 
 Revenue recognized and expenses incurred are accounted on accrual basis
 and in accordance with the requirements of the Companies Act, 1956.
 Sales are recognized on dispatch of goods to Customers.
 
 c) Fixed Assets:
 
 Fixed assets are stated at cost less depreciation. Cost comprises of
 purchase price (net of rebates and discounts), import duties, levies
 (net of cenvat and vat) and any directly attributable cost of bringing
 the assets to its working condition for its intended use.
 
 d) Depreciation:
 
 Depreciation is provided on a pro-rata basis, from the date the assets
 have been installed and put to use, on a Written down value method at
 the rates and in the manner specified under Schedule XIV to the
 Companies Act, 1956.
 
 e) Investments
 
 Investments are valued at cost and are long term in nature. Provision
 for permanent Diminution in value is made wherever necessary.
 
 f) Employees retirement benefits:
 
 1.  Defined Contribution Plans
 
 The Company contributes on a defined contribution basis to Employees''
 Provident Fund towards post employment benefits, which is administered
 by the respective Government authorities, and has no further
 obligations beyond making its contribution, which is expected in the
 year to which it pertains.
 
 2.  Defined benefit plans
 
 The Company has introduced defined benefit plan namely gratuity for all
 its employees.  The liability for the defined benefit plan of gratuity
 is determined on the basis of an actuarial valuation by an independent
 actuary at the year end. which is calculated using projected unit
 credit method.
 
 Actuarial gains and losses are recognized immediately in the Profit and
 Loss Account.
 
 3.  Employee Leave Entitlement
 
 Employee leave entitlement is provided in the books on cash basis
 
 g) Inventories:-
 
 i) Inventories of Raw Materials are valued at cost.
 
 ii) Stores &. Spares are valued at cost,
 
 iii) Cost of finished goods includes an appropriate proportion of
 overheads. Finished Goods has been valued at cost or market value
 whichever is less.
 
 h) Borrowing costs
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of a qualified asset are capitalised. Other borrowing
 costs arc expensed out.
 
 i) Excise Duty
 
 The Company is fully exempted from payment of excise duty on goods
 manufactured by it vide Notification No: 6/2002 CH Dated 1st March,
 2002 covered by General Exemption No: 52.
 
 j) Taxation
 
 VHCL Industries Limited has been amalgamated with Jhaveri Weldflux
 Limited in accordance with the Scheme of Amalgamation approved by the
 Hon''ble High Court of Bombay in terms of the provisions of Section
 391/392 of the Companies Act. 1956. The effective date of amalgamation
 as per the Scheme is 01/04/2011. Accordingly, provision for DTA/DTL has
 been made in the books of accounts as required under the Accounting
 Standard (AS)-22 on Accounting for taxes on Income issued by the
 Institute of Chartered Accountants of India (ICAI).
 
 k) Foreign Currency Transactions
 
 Foreign Currency transactions are converted at the rates prevailing on
 the dates of transactions.  Foreign Currency assets and liabilities are
 converted at contracted/at the exchange rate prevailing at the balance
 sheet date as applicable. Gain/(Loss) on closing rates of reporting
 date of revenue transactions in the same year are charged to Exchange
 Gain/(Loss) Account in the Profit and Loss Account.
 
 l) Impairment of assets
 
 Consideration is given at each balance sheet date to determine whether
 there is any indication of impairment of the carrying amount of the
 Company''s fixed assets. If any indication exists, an asset''s
 recoverable amount is estimated. An impairment loss is recognized
 whenever the carrying amount Of an asset exceeds its recoverable
 amount. The recoverable amount is greater of the net selling price and
 value in use. In assessing the value in use, the estimated future cash
 flows are discounted to their present value based on an appropriate
 discount factor,
 
 m) Provisions, Contingent Liabilities and Contingent assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes. Contingent Assets are neither recognized nor disclosed in the
 financial statements.
 
 n) Leases : The Company has taken on sub-lease basis land measuring
 706.63 Hectors situated at Village: Bhalu Kalla, Bastwa, Bastwa Mataji.
 Sagatnagar, Belwa Ranaji, Ketu Kalla, Tehsil Shergarh. Dist. Jodhpur
 from SuzlonGujrat Wind Park Limited for setting up 2.10 MW Wind Power
 Plant for generation of Wind Power which is directly supplied to
 Jodhpur Vidyut Vitran Nigam Limited under Power Purchase Agreement.
 
 o) Adoption of Revised Schedule VI : The Financial Statements for the
 current year have been prepared as per the Revised Schedule VI format
 as notified by the Ministry of Corporate Affairs, Previous Year figure
 have been regrouped or reclassified to confirm to the presentation and
 classification of the corresponding figures of the current year.
 Adoption of revised Schedule VI format has no material impact on the
 measurement and recognition principles followed in preparation of the
 financial statements.