Accounting Policies of ANS Industries Ltd. Company

Mar 31, 2024

Note No. 1 Significant Accounting Policies and key accounting estimates:

Basis of preparation of financial statements:

1) The financial statements are prepared under the historical cost convention and have been prepared in accordance
with applicable mandatory Indian Accounting Standards (IND-AS) and relevant presentational requirements of
the Companies Act, 2013.

2) The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual
basis. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally
accepted accounting principle in India. Accounting policies have been consistently applied except when IND-AS
were initially adopted.

3) The preparation of financial statements in conformity with generally accepted accounting principle requires
management to make estimates and assumption that affect the reported amount of assets and liabilities and
disclosure of contingent liabilities and commitments at the end of the reporting period and results of operations
during the reporting period. Although these estimates are based upon the management''s best knowledge of
current events and actions, actual results could differ from those estimates. Difference between the actual result
and estimates are recognized in the period which the results are known/materialized.

4) Property Plant and equipment are stated at cost less depreciation. The cost of these includes interest on specific
borrowings obtained for the purpose or acquiring up to the date of commissioning of the assets and other
incidental expenses incurred up to that date.

5) Plant and Machinery includes expenses incurred on erection and commissioning, foundation, laboratory equipment,
air and water pollution devices, electric installation, technical know-how fees, tools, and miscellaneous fixed
assets other than land, building, furniture & fixture, vehicles, office equipment''s computer equipment''s and air
conditioning equipment''s. Technical know-how fee is inseparable and hence treated as part of plant & machinery.
No adjustment is required to be made as per Indian accounting standard 38 on intangible assets, issued by the
Institute of Chartered Accountants of India. Agricultural land valued at Rs. 1,90,13,150/- Situated at Sahabad
Garhi, Mawana, Meeruth (UP) is under dispute.

6) Expenditure related to and incurred during implementation of new/expansion-cum-modernization projects is
included under capital work in progress and the same is allocated to the respective tangible assets on completion
of its construction/erection.

7) Useful lives of property, plant and equipment and intangible assets:

Charge in respect of periodic depreciation of these assets is derived after determining an estimate of expected
useful life and expected residual value at the end of their life. This estimates of useful life and residual value are
determined by the management at the time of acquisition.

8) Employee benefits

Provision for employee benefits charged on accrual basis is determined based on Indian Accounting standard 19
"Employees Benefits" issued by the Institute of Chartered Accountants of India. No provision for Gratuity and
Leave encashment has been made during the year.

(i) Short-term benefits

All employee benefits payable wholly within twelve months of rendering service are classified as short
term-benefits and are recognized in the period in which employee renders service.

(ii) Post-employment benefits

Gratuity liability is provided for on the basis of actuarial valuation.

(iii) Leave salary

Liability towards leave salary is calculated and settled at the time of termination of employment.

(iii) Claims against company not acknowledged as debts

10) Long-term investments are valued at cost. Where investment are reclassified from current to long term, transfers
are made at the lower of cost and fair value at the date of transfer.

11) Inventories of raw materials, stock-in-progress, semi-finished products, stores, packing materials, spares and
loose, finished products are valued at lower of cost or net realizable value. In determining the cost, first in first
out method is used.

12) Prior year expenses/income, if any are adjusted in the respective head of expense/income. This has no effect on
the working result of the Company.

13) Depreciation is charged at the written down value rates provided in schedule II to the Companies Act, 2013,
whenever applicable.

14) The Government grants are recognized only on the assurance that the same will be received. The Government
grants in respect of capital investment have been shown as capital reserve.

15) Taxes are accounted for in accordance with Indian Accounting Standard-12 on Accounting for Taxes on Income.
Income Tax Comprise of both current and deferred Tax.

Current Tax is measured at the amount expected to be paid to/recovered from the revenue authorities, using
applicable tax rates and laws.

The tax effect of the timing difference that results between taxable income and accounting income and are
capable of reversal in one or more subsequent periods are recorded as Deferred Tax Asset or Deferred Tax
Liability. Deferred Tax Assets and Liabilities are recognized for future tax consequences attributable to timing
differences. They are measured using substantively enacted tax rates and tax regulations.

(ii) Borrowing costs are directly attributable to the acquisition, construction or production of qualifying
assets is capitalized till the month in which the assets is ready to use as part of the cost of that asset.
Other interest and borrowing costs are charged to revenue.

(iii) In case of the new industrial unit, all the operating expenditure (including borrowing costs) specifically
for the project, incurred up to the date of installation, is capitalized and added pro-rata to the cost of fixed
assets.

(iv) Revenue from sale of goods is recognized on transfer of significant risks and rewards of ownership to
the buyer. Gross revenue from operations comprises of sale of products and others operating incomes.
Excise duty in not applicable on the finished goods manufactured by the company.

(v) In the opinion of the company''s Management, there is no impairment to the assets to which Indian
Accounting Standard 36 "Impairment of Assets" applied requiring any revenue recognition.

(vi) Earnings per share

Basic Earnings per equity share is computed by dividing the net profit or loss attributable to equity
shareholders of the Company by the weighted average number of equity shares outstanding during the
financial year. Diluted earnings per equity share is computed by dividing the net profit or loss attributable
to equity shareholders of the Company by the weighted average number of equity shares considered for
deriving basic earnings per equity share and also the weighted average number of equity shares that
could have been issued upon conversion of all dilutive potential equity shares.

(vii) Statement of Cash Flow

Cash flows are reported using the indirect method prescribed in IND AS 7 ''Statement of Cash Flows'',
whereby profit for the year 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 from operating, investing and financing
activities of the Company are segregated. The Company considers all highly liquid investments that are
readily convertible to known amounts of cash.

(viii) Certain balances of debtors, creditor''s, loans and advances are subject to confirmation from parties.
Effect of the same will be adjusted at the time of confirmation.

(ix) Based on the information available with the management , there are no outstanding dues to Micro, Small
and Medium Enterprises as per Micro, Small and Medium Enterprises Development Act, 2006 as at year
end.

(x) As per information and explanation given to us there are no Benami Properties in the company.

(xi) As explained to us by the management, the company has not been declared a willful defaulter by any
bank/financial institution.

(xii) As per the information & Explanation given to us, the Company has not traded or invested in crypto
currency or virtual currency.

(xiii) The figures of previous year have been recast/re-grouped to conform to the classification required
wherever necessary to make from comparable with the figure of the current year.

(xiv) In the opinion of Board, current assets loans and advances have a realizable value equivalent to the
amount at which they are stated in the Balance Sheet and the provision for all known liabilities have been
made except to the extent appearing in the annexure to accounting policies and general notes forming
part of these financial statements.

(xv) Company has not disclosed or surrendered any income which were not disclosed in earlier year under
the relevant provision of Income Tax Act, 1961.

(xvi) Company has not entered into any transaction with any struck off company.

(xvii) Related Party Disclosures

Associates

Key Managerial Persons

Mr. Mehinder Sharma (MD), Mr. Umesh Kumar (CS) & Mr. Sanjeev Kumar CFO
Other Directors

Mr. Dhruv Sharma Director, Mr. S R Sahore, independent Direct, Mrs. Kamal Saib, Woman Independent Director,

Relatives of Directors

Mrs. Santosh Sharma, Mrs. Poonam Sharma

Entities Owned/Significantly Influenced/Controlled by KMP''s or Directors Relatives

AGILE DEVELOPERS PRIVATE LIMITED, OMKARESHWAR DEVELOPERS PRIVATE LIMITED, MOUNTAIN HOTEL
AND RESORTS CHAIL PRIVATE LIMITED, MD RENTALS PRIVATE LIMITED, ANS AUTOZONE PRIVATE LIMITED, M-
TECH TOWNSHIP AND PROJECTS PRIVATE LIMITED, CONNOISSEUR DEVELOPERS PRIVATE LIMITED, OM NAMAH
SHIVAY ESTATES PRIVATE LIMITED, SHAMBUNATH PROPERTIES PRIVATE LIMITED, BANKE BIHARI PROPERTIES
PRIVATE LIMITED, ANS INFRASTRUCTURE PRIVATE LIMITED, SHARMA FARMS PRIVATE LIMITED, ANS
CONSTRUCTIONS PRIVATE LIMITED, AMRUTH BIOLOGICAL AND CLINICAL SERVICE PRIVATE LIMITED, LORDS
ISHWAR HOTELS LIMITED,

(xviii) (a) The Company has used accounting softwares for maintaining its books of account for the
financial year ended March 31, 2024 which has a feature of recording audit trail (edit log) facility
and the same has operated throughout the year for all relevant transactions recorded in the
softwares. Further, during the course of audit there was no instance of the audit trail feature
being tampered with.

(xviii) (b) As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1,2023,
reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of
audit trail as per the statutory requirements for record retention is not applicable for the financial
year ended March 31, 2024.

As per our separated report of even date For and on Behalf of the Board of Directors of

For , D M A R K S & Associates For ANS Industries Limited

CHARTERED ACCOUNTANTS
FRN: 006413N

Sd/- Sd/- Sd/-

(CA. DD NAGPAL) Mehinder Sharma Dhruv Sharma

Partner Managing Director Director

M.No. 085366 DIN:00036252 DIN:07844050

Sd/- Sd/-

Umesh Kumar Sanjeev Kumar

^{Date: 30.05.2024} Company Secretary CFO

^{Place: New Delhi} M.No. ACS 30516 PAN: FTTPK4278K

---

Mar 31, 2016

1. Corporate information

Ans Industries Ltd is in the business of manufacture and marketing of Frozen Foods under the brand name of "Maxxo fresh". Ans has manufacturing facilities at Karnal (Haryana).

2. Significant accounting policies

2.1 Basis of accounting and preparation of financial statements

The financial statements are prepared on accrual basis under the historical cost convention in accordance with the provisions of the Companies Act, 2013 and the accounting standards notifies by the Companies(Accounting Standards) Rules ,2006(India GAAP) as adopted consistently by the Company .

2.2. Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

2.3 Inventories

Inventories are valued at the lower of cost weighted average basis and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.

2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.6 Depreciation and amortization

Depreciation is provided on the WDV method as per the rates prescribed in Schedule II to the Companies Act, 2013 .Free Hold Land is not depreciated.

2.7 Revenue recognition

Sale of goods

Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

2.8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

2.9 Tangible fixed assets

Tangible Fixed Assets are stated at cost / revalued amount less accumulated depreciation. Cost comprises purchase price plus attributable cost (including borrowing and financing cost during the period of construction).

2.10 Capital work-in-progress:

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

2.11 Investments

Long term investments are carried at cost.

2.12 Employee Benefits

Employee benefits include provident fund, superannuation fund, gratuity fund, Leave encashment ,compensated absences, long service awards and post-employment medical benefits.

2.13 Earnings per share

Basic earnings per share is computed 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 year.

5. In the opinion of the management, current assets, if realized in the ordinary course of business, would yield a sum equal to their value stated in the Balance Sheet, Previous Year figures have been reworked, regrouped, rearranged and reclassified wherever necessary in order to conform to his year''s presentation.

6. No provision is made for interest payable on security of Rs. 50 Lacs received from M/s Chambal Fertilizers & Chemical Ltd.

7. Previous year''s figures have been regrouped/ recast/ rearranged/ reclassified wherever necessary.

---

Mar 31, 2015

1 Corporate information

Ans Industries Ltd is in the business of manufacture and marketing of Frozen Foods under the brand name of "Maxxo- fresh". Ans has manufacturing facilities at Karnal (Haryana).

2.1 Basis of accounting and preparation of financial statements

The financial statements are prepared on accrual basis under the historical cost convention in accordance with the provisions and the accounting standards notifies by the Companies(Accounting Standards) Rules ,2006 (India GAAP) as adopted consistently by the Company.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known/ materialize.

2.3 Inventories

Inventories are valued at the lower of cost weighted average basis and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octopi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.

2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.5 Cash fow statement

Cash fows are reported using the indirect method, whereby Profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash fows from operating, investing and financing activities of the Company are segregated based on the available information.

2.6 Depreciation and amortization

Depreciation is provided on the WDV method as per the rates prescribed in Schedule II to the Companies Act, 2013. Free Hold Land is not depreciated.

2.7 Revenue recognition

Sale of goods

Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

2.8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

2.9 Tangible fixed assets

Tangible Fixed Assets are stated at cost / revalued amount less accumulated depreciation. Cost comprises purchase price plus attributable cost (including borrowing and financing cost during the period of construction).

2.10 Investments

Long term investments are carried at cost.

2.11 Employee Benefits

Employee benefits include provident fund, superannuation fund, gratuity fund, Leave encashment compensated absences, long service awards and post-employment medical benefits.

2.12 Earnings per share

Basic earnings per share is computed 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 year.

---

Mar 31, 2014

1. ACCOUNTING FOR TAXES ON INCOME

The deferred tax liability for the timing difference of depreciation for the year ending on 31-03-2014 worked out as Rs. 343629 is credited to profit & loss appropriation Accounts & balance as on 31-03-2014 is shown as deferred tax Assets in Balance Sheet.

2. SEGMENT DISCLOSURES

The company has ventured into four segments, the receipt & Direct Expenditure of each are as follows:-

The Company has recognised deferred tax asset on unabsorbed depreciation to the extent of the corresponding deferred tax liability on the difference between the book balance and the written down value of fixed assets under Income Tax (or) The Company has recognised deferred tax asset on unabsorbed depreciation and brought forward business losses based on the Management''s estimates of future profits considering the non-cancellable customer orders received by the Company.

2.1 Basis of accounting and preparation of financial statements

The financial statements are prepared on accrual basis under the historical cost convention in accordance with the provisions of the Companies ACt, 1956 and the accounting standards notifies by the Companies (Accounting Standards) Rules, 2006 (India GAAP) as adopted consistently by the Company.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

2.3 Inventories

Inventories are valued at the lower of cost weighted average basis and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.

2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.6 Depreciation and amortisation

Depreciation is provided on the WDV method as per the rates prescribed in Schedule XIV to the Companies Act, 1956. Free Hold Land is not depreciated.

2.7 Revenue recognition Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

2.8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

2.9 Tangible fixed assets

Tangible Fixed Assets are stated at cost / revalued amount less accumulated depreciation. Cost comprises purchase price plus attributable cost (including borrowing and financing cost during the period of construction).

Capital work-in-progress:

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

2.10 Investments

Long term investments are carried at cost.

---

Mar 31, 2013

1.1 Basis of accounting and preparation of fi nancial statements

The fi nancial statements are prepared on accrual basis under the historical cost convention in accordance with the pro- visions of the Companies ACt, 1956 and the accounting standards notifi es by the Companies (Accounting Standards) Rules, 2006 (India GAAP) as adopted consistently by the Company.

1.2 Use of estimates

The preparation of the fi nancial statements in conformity with Indian GAAP requires the Management to make esti- mates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in prepara- tion of the fi nancial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known materialise.

1.3 Inventories

Inventories are valued at the lower of cost weighted average basis and the net realisable value after providing for ob- solescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and fi nished goods include appropriate proportion of overheads and, where applicable, excise duty.

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convert- ible into known amounts of cash and which are subject to insignifi cant risk of changes in value.

1.5 Cash fl ow statement

Cash fl ows are reported using the indirect method, whereby profi t / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or pay- ments. The cash fl ows from operating, investing and fi nancing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation is provided on the WDV method as per the rates prescribed in Schedule XIV to the Companies Act, 1956 Free Hold Land is not depreciated.

1.7 Revenue recognition

Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of signifi cant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

1.8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is estab- lished.

1.9 Tangible fi xed assets

Tangible Fixed Assets are stated at cost / revalued amount less accumulated depreciation. Cost comprises purchase price plus attributable cost (including borrowing and fi nancing cost during the period of construction).

Capital work-in-progress:

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

1.10 Investments

Long term investments are carried at cost.

1.11 Employee Benefi ts

Employee benefi ts include provident fund, superannuation fund, gratuity fund, Leave encashment, compensated ab- sences, long service awards and post-employment medical benefi ts.

1.12 Earnings per share

Basic earnings per share is computed by dividing the net profi t or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

Current Year Previous Year (2012-13) (2011-12)

1.13. Estimated amount of contracts remaining to be executed on NIL NIL Capital Account and not provided for

1.14. Claims against the Company not acknowledged as debts NIL NIL

1.15. Contingent Liabilities, not provided for

(Guarantee for the company to Financial Institution) 28.50 Crore

1.17. In the opinion of the management, current assets, if realised in the ordinary course of business, would yield a sum equal to their value stated in the Balance Sheet, Previous Year fi gures have been reworked, regrouped, rearranged and reclassifi ed wherever necessary in order to conform to his year''s presentation.

1.18. The company has advanced following intercorporate loans and no provision for unrealised interest is made by the company:

a) M/s Sadhna Phosphates & Chemicals Ltd. Rs. 17 Lacs

1.19. No provision is made for interest payable on security of Rs. 50 Lacs received from M/s Chambal Fertilizers & Chemi- cal Ltd.

1.20. Previous year''s fi gures have been regrouped/ recast/ rearranged/ reclassifi ed wherever necessary.

1.21. Additional information required under para 3 & 4 of part II of Schedule VI of the Companies Act, 1956 (As certifi ed by the management).

---

Mar 31, 2012

1.1 Basis of accounting and preparation of financial statements

The financial statements are prepared on accrual basis under the historical cost convention in accordance with the pro- visions of the Companies ACt, 1956 and the accounting standards notifies by the Companies(Accounting Standards) Rules ,2006(India GAAP) as adopted consistently by the Company .

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known materialise.

1.3 Inventories

Inventories are valued at the lower of cost weighted average basis and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including control and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation is provided on the WDV method as per the rates prescribed in Schedule XIV to the Companies Act, 1956. Free Hold Land is not depreciated.

1.7 Revenue recognition Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

1.8.In the opinion of the management, current assets, if realised in the ordinary course of business, would yield a sum equal to their value stated in the Balance Sheet, Previous Year figures have been reworked, regrouped, rearranged and reclassified wherever necessary in order to conform to his year''s presentation.

1.9.During April'' 2005, the company purchased a Plant including Land & Building for processing Fruits and Vegetables at Karnal from M/s Jagdamba Foods (including) Land & Building) and after making necessary repairs and renewals, the plant was given on Lease to M/s Chambal Fertilizers & Chemicals Ltd for a consideration of Rs.120 Lacs per annum with effect from 1st Nov.'' 2005 for a period of 2 years. M/s Chambal Fertilizers & Chemicals Ltd deposited a security of Rs.150 lacs. Lease was terminated after the expiry of 2 years in November'' 2007 and a fresh lease for Land & Building and Plant & Machinery was entered into with Temptation Foods Limited for a period of ELEVEN MONTHS for a lease consideration of Rs.545454/- per MONTH for Land & Building and Rs.300000/- per MONTH for Plant & Machinery. A security amount of Rs.10100000/- bearing interest 8% p.a. is received from Temptation Foods Limited. The lease is further extended upto 30th June'' 2009. The company has not yet returned the security amount of Rs. 150 lacs to M/s Chambal Fertilizers & Chemicals Ltd. on the expiry of Lease. The lease has not been renewed further and the company is processing vegetables & fruits for outside clients and for own production and marketing.

1.10.The company has advanced following inter corporate loans and no provision for unrealised interest is made by the company:

a) M/s Sadhna Phosphates & Chemicals Ltd. Rs. 41 Lacs

1.11.No provision is made for interest payable on security of Rs. 50 Lacs received from M/s Chambal Fertilizers & Chemical Ltd.

1.12.Previous year''s figures have been regrouped/ recast/ rearranged/ reclassified wherever necessary.

1.13.Additional information required under para 3 & 4 of part II of Schedule VI of the Companies Act, 1956 (As certified by the management).

1.14.ACCONTING FOR TAXES ON INCOME

The deferred tax liability for the timing difference of Depreciation for the year ending on 31.03.12 worked out as Rs. 133957/- is credited to Profit & Loss Appropriation Account & balance as on 31.03.12 is shown as deferred tax liability in Balance Sheet.

---

Mar 31, 2011

1. BASIS OF ACCOUNTING

The Accounts are prepared in accordance with generally accepted accounting principles and also in accordance with the requirement of the Companies Act, 1956. The company follows accrual method of accounting.

2. FIXED ASSETS

Fixed Assets are stated at their cost of acquisition (Cost of purchase and expenditure to put the assets into use).

3. DEPRECIATION

Depreciation on assets has been provided on written down value method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

4. FOREIGN CURRENCY TRANSACTION

Foreign currency transactions were conducted by the company during the year and recorded at the prevailing rate at the date of transaction.

5. INVENTORIES

The stocks are valued follows:-

i) Raw Material- at cost

ii) Finished Goods- at cost or market price whichever is less

iii) Semi Finished- at estimated value

6. MISCELLANEOUS EXPENDITURE

Nil

7. INVESTMENTS

Investments are stated at cost.

8. REVENUE RECOGINITION

Revenue from the sales, contract receipts & other income (Misc. Income) is recoginsed when no significant uncertainty exists regarding the amount of consideration that will be derived from rendering the service.

9. EMPLOYEES RETIRMENT BENEFITS

Company''s contribution of provident fund are charged to Profit and Loss Account, Gratuity benefits at the time of retirement are charged to Profit & Loss Account on the basis of actuarial valuation.

10. LEASE ACCOUNTING

The lease agreement with temptation foods limited was not renewed after 30th June'' 2009.

11. ACCONTING FOR TAXES ON INCOME

The deferred tax liability for the timing difference of Depreciation for the year ending on 31.03.11 worked out as Rs. 228641/- (Rs. 1581) is debited to Profit & Loss Appropriation Account & balance as on 31.03.11 is shown as deferred tax liability in Balance Sheet.

---

Mar 31, 2010

1. BASIS OF ACCOUNTING

The Accounts are prepared in accordance with generally accepted accounting principles and also in accordance with the requirement of the Companies Act, 1956. The company follows accrual method of accounting.

2. FIXED ASSETS

Fixed Assets are stated at their cost of acquisition (Cost of purchase and expenditure to put the assets into use).

3. DEPRECIATION

Depreciation on assets has been provided on written down value method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

4. FOREIGN CURRENCY TRANSACTION

No Foreign currency transactions were conducted by the company during the year.

5. INVENTORIES

No contract work was in progress during March 2010 as such there was no work in progress & stocks as on 31.03.10.

6. MISCELLANEOUS EXPENDITURE

------------------------NIL---------------------

7. INVESTMENTS

Investments are stated at cost.

8. REVENUE RECOGNITION

Revenue from the sales, contract receipts & other income (Misc. Income) is recognized when no significant uncertainty exists regarding the amount of consideration that will be derived-from rendering the service.

9. EMPLOYEES RETIREMENT BENEFITS

Companys contribution of provident fund are charged to Profit and Loss Account, Gratuity benefits at the time of retire- ment are charged to Profit & Loss Account on the basis of actuarial valuation.

10. LEASE ACCOUNTING

The lease agreement with temptation foods limited was not renewed after 30th June 2009. The lease amount for April 2009 to June 2009 is credited to Profit & Loss Account.

11. ACCOUNTING FOR TAXES ON INCOME

The company has unabsorbed depreciation and carry forward of losses under tax laws. The company initially decided not to recoginsed deferred tax assets/ liabilities as there was no virtual certainty that sufficient future taxable income will be available against which such deferred tax assets/ liabilities can be realised.

However since company has sold its Sonepat Plant and has purchased another plant at Karnal and has also started the business of contractors the management decided to recognize the accounting policies for deferred tax assets/ liabilities with effect from 01.04.07.

The deferred tax assets for the timing difference of Depreciation for the year ending on 31.03.10 worked out as Rs. 1,581/- is debited to Profit & Loss Appropriation Account & balance as on 31.03.10 is shown as deferred tax liability in Balance Sheet.

---

Mar 31, 2009

1. BASIS OF ACCOUNTING

The Accounts are prepared in accordance with generally accepted accounting principles and also in accordance with the requirement of the Companies Act, 1956. The company follows accrual method of accounting.

2. FIXED ASSETS

Fixed Assets are stated at their cost of acquisition (Cost of purchase and expenditure to put the assets into use).

3. DEPRECIATION

Depreciation on assets has been provided on written down value method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

4. FOREIGN CURRENCY TRANSACTION

Foreign currency transactions conducted by the company were recorded at the rate prevailing on the day of transaction.

5. INVENTORIES

The work in progress & stocks are valued on cost basis.

6. MISCELLANEOUS EXPENDITURE -NIL-

7. INVESTMENTS

Investments are stated at cost.

8. REVENUE RECOGNITION

Revenue from the sales, contract receipts & other income (Misc. Income) is recoginsed when no significant uncertainty exists regarding the amount of consideration that will be derived from rendering the service.

9. EMPLOYEES RETIREMENT BENEFITS

Companys contribution of provident fund are charged to Profit and Loss Account, Gratuity benefits at the time of retirement are charged to Profit & Loss Account on the basis of actuarial valuation.

10. LEASE ACCOUNTING

During April 2005 company purchased another plant (including land & building) at Karnal and after making necessary repairs & renewals gave this plant to M/s. Chambal Fertilizers & Chemicals Ltd. on lease of Rs.120 lacs per annum with effect from November" 2005. The Lease was terminated after the expiry of 2 years in November 2007 and a fresh lease for Land & Building and Plant & Machinery was entered into with Temptation Foods Limited for a period of eleven months for a lease consideration of Rs.545454/- per month for Land & Building and Rs.300000/- per month for Plant & Machinery. The company received the lease amount in advance for eleven months.

The lease amount for April 2008 to March 2009 is credited to Profit & Loss Account.

11. ACCOUNTING FOR TAXES ON INCOME

The company has unabsorbed depreciation and carry forward of losses under tax laws. The company initially decided not to recoginsed deferred tax assets/ liabilities as there was no virtual certainty that sufficient future taxable income will be available against which such deferred tax assets/ liabilities can be realised.

However since company has sold its Sonepat Plant and has purchased another plant at Karnal and has also started the business of contractors the management decided to recognize the accounting policies for deferred tax assets/ liabilities with effect from 01.04.07.

The deferred tax liability for the timing difference of Depreciation for the year ending on 31.03.09 is worked out as Rs.24063/- is debited to Profit & Loss Appropriation Account & shown as deferred tax liability in Balance Sheet.