Accounting Policies of Beryl Drugs Ltd. Company

Mar 31, 2024

NOTE NO. 1

I. Corporate information

Beryl Drugs Limited (“the Company”) (CIN: L02423MP1993PLC007840), is a public limited company domiciled in India and incorporated on 24/08/1993 under the provisions of The Companies Act, 1956, having its registered office at 133, Kanchan Bag, Indore (MP). Equity Shares of the Company are listed on Bombay Stock Exchange Limited.

The Company is principally engaged in manufacturing of bulk drugs.

The financial statements of the Company for the year ended March 31,2024 were approved for issue in accordance with the resolution of the Board of Directors on May 30, 2024.

Note No. 02

Basis of preparation and presentation

I. Statement of Compliance

The financial statements of the Company as at and for the year ended 31st March, 2024 have been prepared and presented in accordance with Indian Accounting Standards (“IND AS”) notified under Section 133 of the Companies Act, 2013 (“the Act”) [Companies (Indian Accounting Standards) Rules, 2015], and presentation requirements of Division II of Schedule III to the Companies Act, 2013 as amended from time to time, guidelines issued by the Securities and Exchange Board of India (SEBI) and other relevant provisions of the Act and accounting principles generally accepted in India.

These financial statements have been prepared by the Company as a going concern on the basis of relevant IND AS that are effective or elected for early adoption at the Company''s annual reporting date, 31st March, 2024.

II. Basis of Preparation

The financial statements have been prepared on a historical cost basis and on accrual basis, except for the following:

I. Financial assets and liabilities are measured at fair value or at amortised cost depending on classification;

ii. Assets held for sale - measured at fair value less cost to sell;

iii. Defined benefit plans - plan assets measured at fair value;

III. Functional and Presentation Currency

The Financial Statements are presented in Indian Rupees in Lakhs (INR Lakhs or Rs. In Lakhs) which is also the functional currency of the Company and all values are rounded to the nearest lakhs, except when otherwise indicated.

IV. Cash flow statement:

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, bank balances, cheques in hand and short term deposits with original maturities of three months or less and which are subject to an insignificant risk of changes in value.

Statement of Cash Flows is prepared in accordance with the Indirect Method prescribed in the IND-7" Statement of Cash Flows".

Material Accounting Policies

I. Current and non-current classification

All assets and liabilities have been classified as current and non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III of the Act and Ind AS 1 -Presentation of Financial Statements.

Assets:

An asset is classified as current when it satisfies any of the following criteria:

a. it is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating cycle;

b. it is held primarily for the purpose of being traded;

c. it is expected to be realised within twelve months after the reporting date; or

d. it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

Liabilities:

A liability is classified as current when it satisfies any of the following criteria:

a. it is expected to be settled in the Company''s normal operating cycle;

b. it is held primarily for the purpose of being traded;

c. it is due to be settled within twelve months after the reporting date; or

d. the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current assets and liabilities include the current portion of assets and liabilities, respectively. All other assets and liabilities are classified as non-current. Deferred tax assets and liabilities are always disclosed as non-current..

II. Segment reporting

The Company''s main business is pharmaceutical manufacturing. Hence, there is no separate reportable segment as per IND AS 108.

III. Property, Plant and Equipment

Property, plant and equipment (PPE) are carried at historical cost of acquisition less accumulated depreciation. The total cost of assets comprises its purchase price, freight, duties, taxes and any other incidental expenses directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by the management.

Subsequent expenditure related to an item of tangible asset are added to its gross value only if it increases the future benefits of the existing asset, if it is probable that future economic benefit will flow to the Company from that expenditure and cost can be measured reliably. Other repairs and maintenance costs are expensed off as and when incurred.

Government grants and subsidies

The Government grants in the form of subsidy are presented in the balance sheet by deducting it from carrying amount of the eligible assets on a pro rata basis. The grant is recognized in the Statement of Profit and Loss over the life of a depreciable asset as a reduced depreciation expenses. Depreciation on Property, Plant and Equipment is calculated using written down value method (WDV) to write down cost of property and equipment to their residual values over their estimated useful lives which is in line with the estimated useful life as specified in Schedule-II of the Companies Act, 2013.

The residual values of Property, Plant & Equipments (PPE) are reviewed periodically.

IV. Intangible assets

Intangible assets that are acquired by the Company and that have Definite finite useful lives are measured at cost less accumulated amortization and accumulated impairment losses, if any. Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

Amortizations calculated using written down value method (WDV) to write down the cost of property and equipment to their residual values over their estimated useful lives which is in line with the estimated useful life.

V. Investment properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment properties. Investment property is measured initially at its cost, including related transaction costs and borrowing costs where applicable. Subsequent expenditure is capitalized to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognized.

Investment properties are depreciated using the WDV method over their estimated useful lives.

VI. Non-current assets held for sale:

Assets are classified as held for sale and stated at the lower of carrying amount and fair value less costs to sell if the asset is available for immediate sale and its sale is highly probable. Such assets or group of assets are presented separately in the Balance Sheet as “Assets Classified as Held for Sale”. Once classified as held for sale, intangible assets and property, plant and equipment are no longer amortized or depreciated.

VII. Leases

At inception of a contract, the Company assesses whether a contract is or contains a lease. A contract is or contains a lease if the contract conveys the right to control the use of an identified assets for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset the Company assesses whether contract involves the use of an identified asset, the Company has a right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use and the Company has the right to direct the use of the asset.

i. Leases are classified as finance leases whenever the terms of the lease, transfers substantially all the risks and rewards of ownership to the lessee.

ii. Leased assets: Assets held under finance leases are initially recognized as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

iii. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognized immediately in Statement of Profit and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalized. Contingent rentals are recognized as expenses in the periods in which they are incurred.

iv. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

v. Payments associated with short-term leases and all leases of low value assets are recognized on a straight line basis as an expense in the statement of Profit and Loss. Short term leases are leases with a lease term of 12 months or less.

VIII. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

1. Financial Assets:

a) Initial Recognition And Measurement: All financial assets are recognized initially at fair value when the parties become party to the contractual provisions of the financial asset. In case of financial assets which are not recorded at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial assets, are adjusted to the fair value on initial recognition.

b) Subsequent Measurement: The Company classifies its financial assets into various measurement categories. The classification depends on the contractual terms of the financial assets'' cash flows and the Company''s business model for managing financial assets.

Financial Assets Measured At Amortised Cost:

A financial asset is measured at Amortized Cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the Financial Asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial Assets Measured At Fair Value Through Other Comprehensive Income (FVOCI):

A financial asset is measured at FVOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and contractual terms of financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial Assets Measured At Fair Value Through Profit Or Loss (FVTPL):

A financial asset which is not classified in any of the above categories are measured at FVTPL.

c) Other Equity Investments: All other equity investments are measured at fair value, with value changes recognized in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the changes in fair value through other comprehensive income (FVOCI).

2. Financial Liabilities:

a) Initial recognition and measurement: All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs. The company''s financial liabilities include trade and other payables.

b) Subsequent Measurement: Financial liabilities other than derivative financial instruments are subsequently carried at amortized cost using the effective interest method or at FVTPL.

Financial liabilities at fair value through profit or loss:

A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses including any interest expense, are recognized in profit or loss Financial liabilities subsequently measured at amortized cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost in subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortized cost are determined based on the effective interest rate (EIR) method. Interest expense that is not capitalized as part of costs of an asset is included in the ‘Finance costs'' line item in the profit or loss.

After initial recognition, such financial liabilities are subsequently measured at amortized cost using the EIR method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the profit or loss.

3. Derecognition of Financial Assets And Liabilities:

a) Financial Asset:

The Company derecognizes a financial asset when the contractual cash flows from the asset expire or it transfers its rights to receive contractual cash flows from the financial asset in a transaction in which substantially all the risks and rewards of ownership are transferred. Any interest in transferred financial assets that is created or retained by the Company is recognized as a separate asset or liability.

b) Financial Liability:

A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as de-recognition of the original liability and the recognition of a new liability. The difference between the carrying value of the original financial liability and the consideration paid is recognized in the Statement of profit and loss.

4. Offsetting

Financial assets and financial liabilities are generally reported gross in the balance sheet. Financial assets and liabilities are offset and the net amount is presented in the balance sheet when the Company has a legal right to offset the amounts and intends to settle on a net basis or to realize the asset and settle the liability simultaneously in all the following circumstances:

a. The normal course of business

b. The event of default

c. The event of insolvency or bankruptcy of the Company and/or its counterparties.

5. Impairment of Financial Assets:

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115.

The Company follows ‘simplified approach'' for recognition of impairment loss allowance on trade receivables or any contractual right to receive cash or another financial asset.

IX. Inventories

Inventories consists of raw materials, packing materials and finished goods. Inventories are valued at lower of cost and net realizable value. Cost is determined on First-In-First-Out basis.

Cost of raw materials and packing materials includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition.

Cost of finished goods includes direct materials, labour and proportion of manufacturing overheads based on the normal operating capacity, wherever applicable. Cost of finished goods further includes other costs incurred in bringing the inventories to their present location and condition.

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.

X. Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at banks and on hand and short term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes

in value.

For the purpose of the Statement of Cash Flows, cash and cash equivalents consist of cash and short term deposits, as defined above, net of outstanding bank overdrafts, if any, as they are considered an integral part of the Company''s cash management.

XI. Revenue from operations

A contract with a customer exists only when: the parties to the contract have approved it and are committed to perform their respective obligations, the Company can identify each party''s rights regarding the distinct goods or services to be transferred (“performance obligations”), the Company can determine the transaction price for the goods or services to be transferred, the contract has commercial substance and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. Revenues are recorded in the amount of consideration to which the Company expects to be entitled in exchange for performance obligations upon transfer of control to the customer and is measured at the fair value of the consideration received or receivable, net of returns, sales tax and applicable trade discounts, allowances, Goods and Services Tax (GST) and amounts collected on behalf of third parties.

1. Sale of products

The majority of customer contracts that the Company enters into consist of a single performance obligation for the delivery of pharmaceutical products. The Company recognizes revenue from product sales when control of the product transfers, generally upon shipment or delivery, to the customer, or in certain cases, upon the corresponding sales by customer to a third party. The Company records product sales net of estimated incentives/discounts, returns, and other related charges. These are generally accounted for as variable consideration estimated in the same period the related sales occur. The methodology and assumptions used to estimate rebates and returns are monitored and adjusted regularly in the light of contractual and legal obligations, historical trends, past experience and projected market conditions. The revenue for such variable consideration is included in the Company''s estimate of the transaction price only if it is highly probable that a significant reversal of revenue will not occur once any uncertainty is resolved. In making this assessment the Company considers its historical record of performance on similar contracts.

2. Rendering of services

Service income is recognized as per the terms of the contracts/arrangements when related services are performed and is stated net of GST.

XII. Employee Benefits

1. Short Term Employee Benefit:

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. These benefits include short term compensated absences such as paid annual leave. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized as an expense during the period. Benefits such as salaries and wages, etc. and the expected cost of the bonus/ex-gratia are recognized in the period in which the employee renders the related service.

2. Post-employment employee benefits a) Defined contribution plans:

Post-retirement contribution plans such as Employees'' Pension Scheme, Labour Welfare Fund, Employee State Insurance Corporation (ESIC) are charged to the profit or loss for the year when the contributions to the respective funds accrue. The Company does not have any obligation other than the contribution made.

b) Defined Benefits Plans: Employees’ provident fund:

Provident Fund contributions are made to a trust administered by the Trustees. Trust makes investments and settles member''s claims. Interest Payable to the members shall not be at a rate lower than the statutory rate. Liability is recognized for any shortfall in the plan assets vis- a-vis actuarially determined liability of the fund obligation.

Gratuity Plan:

The company has a defined gratuity plan. Every employee who has rendered continuous service of 5 years or more is entitled to gratuity amount of 15 days salary (15/26 last drawn basic salary plus dearness allowance) for each completed year for five year or more subject to maximum of Rs. 20 lakhs on superannuation, resignation, termination, disablement or death.

The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees'' services.

Re-measurement of defined benefit plans in respect of post- employment are charged to the Other Comprehensive Income.

c) Termination benefits:

Termination benefits are recognized as an expense when the Company is committed without any possibility of withdrawal of an offer made to either terminate employment before the normal retirement date or as a result of an offer made to encourage voluntary retirement.

XIII. Borrowing costs

Borrowing costs are interest and other costs incurred by the Company in connection with the borrowing of funds.

Borrowing costs directly attributable to acquisition or construction of those tangible fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalised. Other borrowing costs are recognized as an expense in the Statement of Profit and Loss of the period in which they are incurred.

XIV. Other income and expenses

All other income and expense are recognized in the period they occur.

XV. Taxes Current Tax

Current tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered from, or paid to, the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted, or substantively enacted, by the reporting date in the countries where the Company operates and generates taxable income. Current income tax relating to items recognised outside the statement of profit and loss is recognized outside the statement of profit and loss (either in other comprehensive income or in equity). Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred Tax

Deferred tax assets and liabilities are recognized for temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are only recognized for temporary differences, if it is probable that future taxable amounts will arise to utilise those temporary differences and losses. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the

related tax benefit will be realized.

Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities are realised simultaneously.

XVI. Provisions, Contingent Liabilities & Contingent asset

1. Provisions are recognized only when:

(i) the Company has a present obligation (legal or constructive) as a result of a past event; and

(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(iii) a reliable estimate can be made of the amount of the obligation

When the effect of the time value of money is material, the enterprise determines the level of provision by discounting the expected cash flows at a pre-tax rate reflecting the current rates specific to the liability. The expense relating to any provision is presented in the Statement of Profit and Loss net of any reimbursement.

2. Contingent Liabilities: Contingent liability is disclosed in case of:

(i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and

(ii) a present obligation arising from past events, when no reliable estimate is possible.

3. Contingent assets are disclosed where an inflow of economic benefits is probable. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date. Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under the contract is recognised and measured as a provision.

XVII. Earnings Per Share

The Company reports basic and diluted earnings per share in accordance with Ind AS 33 on Earnings per share.

Basic EPS is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date. In computing the dilutive earnings per share, only potential equity shares that are dilutive and that either reduces the earnings per share or increases loss per share are included.

Note No. 04

Accounting Judgements, Estimates and Assumptions

The preparation of financial statements in conformity with the IND AS requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosure and the disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and future periods are affected. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in the following notes:

I. Fair value measurement

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using various valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

II. Useful lives of property, plant and equipment, and intangible assets

Property, plant and equipment, and intangibles assets represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

III. Expected credit loss:

The Company applies Expected Credit Losses ("ECL") model for measurement and recognition of loss allowance on Trade receivables.

Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

IV. Contingent liabilities and provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed at each Balance sheet date and revised to take account of changing facts and circumstances.

V. Recognition of MAT credit entitlement:

The credit availed under MAT is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the period for which the MAT credit can be carried forward for set off against the normal tax liability. This requires significant management judgement in determining the expected a ailment of the credit based on business plans and future cash flows of the Company.

VI. Defined Benefit Plans:

The cost of the defined benefit gratuity plan and other post-employment benefits and present value of the gratuity obligation are determined using actuarial valuation. An actuarial valuation involves making various assumptions that may differ from actual development in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

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Mar 31, 2015

(A) USE OF ESTIMATES

The preparation of financial statement in conformity with generally accepted accounting principles require estimate and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent 1 liabilities on the date of financial statement and the reported amounts of revenues and expenses during the reporting period, actual results could differ from these estimates and difference between actual results and estimate are recognized in the periods in which the results are known/materialize.

(B) CASH FLOW STATEMENT

The cash flow statement is prepared using the " Indirect method set out in Accounting Standard 3" Cash Flow statement which presents cash flow from operating, investing and financing activities of the company. Cash and cash equivalent presented in the cash flow statement consists of cash in hand and unencumbered lightly liquid Bank Balance.

(C) FIXED ASSETS

(a) TANGIBLE FIXED ASSETS

Fixed assets are initially recorded at cost. Cost comprises the Purchase Price and any Direct attributable cost of bringing the assets to working condition for its intended use. The cost of the Tangible assets acquired in Amalgamation in the nature of Purchase is their Fair Value as at the date of Amalgamation. Following Initial Recognition. Tangible assets are carried at cost less accumulated depreciation and Impairment Loss (If any) Gain or loss arising from De recognition of Tangible assets are measured as the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of profit and loss when the assets is derecognized.

(b) Intangible Assests

Intangible Assets acquired separately are measured on Initial recognition at Cost. The Company Uses presumption that the useful life of an Intangible Assets will not exceed ten years from the date when the assets is available for use.

(D) DEPRECIATION

Depreciation on Fixed assets is provided to the extent of depreciable amount as per written down value (WDV) method. Depreciation is provided based on useful life of the assets as prescribed in schedule II of the Companies Act 2013. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted From the opening balance of Profit & Loss Account Intangible assets are amortised on written down basis on the estimated useful economic life .

(E) REVENUE RECOGNITION

In appropriate circumstances revenue income is recognized when no significant uncertainty as to the determination or realization exist.

(a) Sale of Goods - Revenue is recognized when all the significant risk and reward of ownership of the goods has passed to the buyer usually on delivery of goods. Excise duty and vat deducted from the turnover is the amount that is included in the amount of turnover and not the entire amount of liability arises during the year.

(b) Interest - Revenue is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

(F) INVENTORIES

Inventories consisting of Raw Material and Packing Material have been valued at lower of cost or net realizable value on FIFO cost basis. Finished goods have been valued at lower of cost or net realisable value. Costs for Finished Goods includes direct material, labour, excise duty and appropriate production overheads.

(G) INVESTMENT

Investment in Equity Shares is stated at cost.

(H) BORROWING COST

Borrowing cost is treated as revenue expenditure and is charged to the Profit and Loss Account for the year. There is no Specific borrowing cost regarding acquisition of capital assets.

(I) TAXATION

1) The Provision for wealth tax and current tax has been provided in accordance with provision of wealth tax Act 1956 and the Income Tax Act, 1961 respectively.

2) Deferred tax assets and liabilities are recognized on a prudent basis for future tax consequences of timing differences arising between the carrying value of assets and liabilities and their respective tax basis, and carried forward losses. It is measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact of changes in deferred tax assets and liabilities is recognized to the profit and loss account.

(J) EARNING PER SHARE

The company reports basic and diluted earning per shares are computed in accordance with Accounting Standard-20 -Earning per share. Basic EPS is calculated by dividing the Net Profit after tax for the year attributable to equity share holders by the weighted Average number of Equity Shares outstanding during the year.

(K) EMPLOYEE BENEFIT

Expenses & Liabilities in respect of employees benefit are recorded in accordance with Revised Accounting Standard 15- Employee Benefits (Revised 2005)

1) Short Term Employee Benefit

All Employee benefit payable wholly within twelve month of rendering the service are classified as short term employee benefit and they are recognized in the period in which employee rendered the related service.

2) Post Employee benefit

i) Defined Contribution Plan

Defined contribution Plan are government administered Provident Fund, Employee State Insurance Scheme of all employee, company contribution to defined contribution plan are recognized in the profit & loss account in the financial year in which the employee rendered the related services.

ii) Defined Benefit Gratuity Plan

Gratuity is a defined benefit plan, the liabilities recognized in the balance sheet in respect of Gratuity is the present value of the defined benefit obligation at the balance sheet date less the fair market value of plan assets, together with adjustment for unrecognized actuarial gains or losses and Past service cost, the defined benefit obligation is calculated at or near the balance sheet date by are in dependent actuary using the projected unit credit method. Actuarial gain and Losses arising from past experience and changes in actuarial assumption are charged to the prior period item, in the year in which such gains or losses are determined.

(L) PROVISION, CONTINGENT LIABILITIES & CONTINGENT ASSETS

The Provision is recognized when the company has a present obligation as a result of past events and it is probable that an outflow of resources would be required to settle the obligation, in respect of which a reliable estimate can be made. A contingent liability is a possible obligation That arise from past events whose existence will be confirmed by the occurrence of one or non occurrence of one or more uncertain future event beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation . A contingent liability arises in extremely rear cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognized a contingent liability but discloses its event in financial statement.

(M) CENVAT BENEFIT

CENVAT Benefit is accounted on accrual basis on purchase of Raw material, and Packing Material as per amended rules and regulation.

(N) PRIOR PERIOD ADJUSTMENT & EXTRA ORDINARY ITEM

Income and expenditure pertaining to prior period which were omitted to be recorded in last year due to error or omission in books are duly reflected under head of prior period items in the statement of Profit & loss of current year.

(O) EXCISE DUTY

1. Excise Duty on manufactured excisable goods has been accounted on the basis of both payment made in respect of goods cleared and provision has been made for goods lying in godown as per Guidance notes on Excise Duty.

2. Excise duty on sales has been reduced from sales in statement of profit & loss and provision of excise duty is made on closing stock.

(P) CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET DATE.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(Q) IMPAIRMENT OF ASSETS

Fixed asset are reviewed for impairment whenever events or changes in circumstances indicates that the carrying amount of assets may not be recoverable. If such assets are considered to be impaired, the impairment is recognized by debiting the Profit & Loss Account and is measured as the amount by which the carrying cost of assets exceeds the fair vale of assets. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate of recoverable amount. By virtue of this Company has carried out comprehensive exercise, to assess the impairment loss of assets based on such exercise.

(R) SEGMENT REPORTING

Primary Segment identified based on the nature of product and secondary segment is identified based on geographical location.

(S) OPERATING LEASE:

Assets taken on lease, under which the lessor effectively retains all the risks and rewards of ownership, are classified as operating lease .Operating lease payment are recognized as expenses in the profit and loss accounts on a straight line basis over the lease term.

State capital subsidy is not specifically related to any fixed assest hence credited to capital subsidy account under the head capital reserve.

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Mar 31, 2014

(a) BASIS OF ACCOUNTING

The financial statements have been prepared and presented under the historical cost convention on the accrual Basis of Accounting and in accordance with the Provision of the Companies Act 1956 and also compliance of 133 section of companies act 2013 that are applicable from 13/09/2013 and Accounting Principles generally accepted in India and comply with applicable Accounting principles in India, the mandatory Accounting Standards issued by the Institute of Chartered Accountant of India and provisions of the Companies Act, 1956 also compliance of 133 section of companies act 2013 that are applicable from13/09/2013.

(b) USE OF ESTIMATES

The preparation of financial statement in conformity with generally accepted accounting principles require estimate and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statement and the reported amounts of revenues and expenses during the reporting period, actual results could differ from these estimates and difference between actual results and estimate are recognized in the periods in which the results are known/ materialize.

(c) CASH FLOW STATEMENT

The cash flow statement is prepared using the " Indirect method set out in Accounting Standard 3" Cash Flow statement which presents cash flow from operating, investing and financing activities of the company. Cash and cash equivalent presented in the cash flow statement consists of cash in hand and unencumbered lightly liquid Bank Balance.

(d) CURRENT AND NON CURRENT CLASSIFICATION

All Assets and Liabilities are classified into Current and Noncurrent.

ASSETS: - As assets is classified as current when it satisfies any of the following criteria:

(i) It is expected to be realized in or intended for sale or consumption in the company normal operating cycle.

(ii) It is held primarily for the purpose of being traded.

(iii) It is expected to be realized within 12 months of the reporting date or

(iv) It is Cash or Cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current position of the non current financial assets. All other Assets are classified as Non current.

LIABILITY:- A Liability is classified as current when it satisfies any of the following criteria:

(i) It is expected to be settled in the companies normal operating cycle, or

(ii) It is held primarily for the purpose of being traded, or

(iii) It is due to be settled within 12 months after the reporting date, or

(iv) The company does not have an unconditional right to date settlement of the liability for at least 12 months after the reporting date. Term of a liability that could at the option of the counter party result in its settlement by the issue of equity instrument do not affected its classification. Current liability includes current position of the non current financial liabilities all other liabilities are classified as Noncurrent.

(e) Sales

Sales are inclusive of freight and octroi claimed in the sales invoices, but net of excise duty and sales return.

(f) State Subsidy

State capital investment subsidy is not specifically related to any Fixed Assets and has been credited to Capital Subsidy Account under the head of Capital Reserve.

(g) Fixed Assets

Fixed assets are carried at cost of acquisition or construction (net of CENVAT where applicable). They are carried at historical cost less accumulated depreciation.

(h) Depreciation

Depreciation is charged over the estimated useful life of fixed assets on a Written down Value basis except on trademark which is depreciated on the basis of SLM having life of 5 years. The rates of depreciation for fixed assets, which are not lower than the rates prescribed in Schedule XIV to the Companies Act, 1956.

(i) Stores and Spares including Coal, Chemical Stores, Spares & Coal

Stores, Spares & Coal, Chemical are charged to the Profit and Loss Account as and when these are incurred.

(j) Revenue Recognition

In appropriate circumstances revenue income is recognized when no significant uncertainty as to the determination or realization exist.

(a) Sale of Goods- Revenue is recognized when all the significant risk and reward of ownership of the goods has passed to the buyer usually on delivery of goods. Excise duty and vat deducted from the turnover is the amount that is included in the amount of turnover and not the entire amount of liability arises during the year.

(b) Interest- Revenue is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

(k) Inventories

Inventories consisting of Raw Material and Packing Material have been valued at lower of cost or net realizable value on FIFO cost basis. Finished goods have been valued at lower of cost or net realisable value. Costs for Finished Goods includes direct material, labour, excise duty and appropriate production overheads.

(l) Investment

Investment in Equity Shares is stated at cost.

(m) Borrowing Cost

Borrowing cost is treated as revenue expenditure and is charged to the Profit and Loss Account for the year. There is no borrowing cost regarding acquisition of capital assets.

(n) Taxation

1) The Provision for wealth tax and current tax has been provided in accordance with provision of wealth tax Act 1956 and the Income Tax Act, 1961 respectively.

2) Deferred tax assets and liabilities are recognized on a prudent basis for future tax consequences of timing differences arising between the carrying value of assets and liabilities and their respective tax basis, and carried forward losses. It is measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact of changes in deferred tax assets and liabilities is recognized to the profit and loss account.

(o) Earning per share

The company reports basic and diluted earning per shares are computed in accordance with Accounting Standard-20 -Earning per share. Basic EPS is calculated by dividing the Net Profit after tax for the year attributable to equity share holders by the weighted Average number of Equity Shares outstanding during the year.

(p) Employee Benefit

Expenses & Liabilities in respect of employees benefit are recorded in accordance with Revised Accounting Standard 15- Employee Benefits (Revised 2005)

1) Short Term Employee Benefit

All Employee benefit payable wholly within twelve month of rendering the service are classified as short term employee benefit and they are recognized in the period in which employee rendered the related service.

2) Post Employee benefit

i) Defined Contribution Plan

Defined contribution Plan are government administered Provident Fund, Employee State Insurance Scheme of all employee, company contribution to defined contribution plan are recognized in the profit & loss account in the financial year in which the employee rendered the related services.

ii) Defined Benefit Gratuity Plan

Gratuity is a defined benefit plan, the liabilities recognized in the balance sheet in respect of Gratuity is the present value of the defined benefit obligation at the balance sheet date less the fair market value of plan assets, together with adjustment for unrecognized actuarial gains or losses and Past service cost, the defined benefit obligation is calculated at or near the balance sheet date by are in dependent actuary using the projected unit credit method. Actuarial gain and Losses arising from past experience and changes in actuarial assumption are charged to the prior period item, in the year in which such gains or losses are determined.

(q) Provision, Contingent Liabilities & Contingent Assets

The Provision is recognized when the company has a present obligation as a result of past events and it is probable that an outflow of resources would be required to settle the obligation, in respect of which

a reliable estimate can be made. A disclosure for a Contingent Liability is made when there is a Possible Obligation or a Present obligation that may not require an outflow of resources.

(r) Cenvat Benefit

CENVAT Benefit is accounted on accrual basis on purchase of Raw material, and Packing Material as per amended rules and regulation.

(s) Prior Period Adjustment & Extra Ordinary Item

Income and expenditure pertaining to prior period which were omitted to be recorded in last year due to error or omission in books are duly reflected under head of prior period items in the statement of Profit & loss of current year.

(t) Excise Duty

1. Excise Duty on manufactured excisable goods has been accounted on the basis of both payment made in respect of goods cleared and provision has been made for goods lying in godown as per Guidance notes on Excise Duty.

2. Excise duty on sales has been reduced from sales in statement of profit & loss and provision of excise duty is made on closing stock.

(u) Contingencies and Events occurring after the Balance Sheet date.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(v) Impairment of Assets

Fixed asset are reviewed for impairment whenever events or changes in circumstances indicates that the carrying amount of assets may not be recoverable. If such assets are considered to be impaired, the impairment is recognized by debiting the Profit & Loss Account and is measured as the amount by which the carrying cost of assets exceeds the fair vale of assets. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate of recoverable amount. By virtue of this Company has carried out comprehensive exercise, to assess the impairment loss of assets based on such exercise.

(w) SEGMENT REPORTING

Primary Segment identified based on the nature of product and secondary segment is identified based on geographical location.

(x) OPERATING LEASE:

Assets taken on lease, under which the lesser effectively retains all the risks and rewards of ownership, are classified as operating lease .Operating lease payment are recognized as expenses in the profit and loss accounts on a straight line basis over the lease term.

---

Mar 31, 2013

(a) BASIS OF ACCOUNTING

The financial statements have been prepared and presented under the historical cost convention on the accrual Basis of Accounting and in accordance with the Provision of the Companies Act 1956 and Accounting Principle generally accepted in India and comply with applicable Accounting principles in India, the mandatory Accounting Standards issued by the Institute of Chartered Accountant of India and provisions of the Companies Act, 1956.

(b) USE OF EXTIMATES

The preparation of financial statement in conformity with generally accepted accounting principles require estimate and assumptions to be made that effect the reported amounts of meets and liabilities and disclosure of contingent liabilities on the date of financial statement and the reported amounts of revenues and expenses during the reporting period actual results could differ from these estimates and difference between actual results and estimate are recognized in the periods in which the results are known/ materialize.

(c) CASH FLOW STATEMENT

The cash flow statement is prepared using the " Indirect method setout in accounting standard 3" Cash Flow statement and presents cash flow operating, investing and financing activities of the Company cash and cash equivalent presented in the cash flow statement consists of cash on hand and unencumbered lightly liquid Bank Balance.

(d ) CURRENT AND NON CURRENT CLASSIFICATION

All Assets and Liabilities are classified into Current and Noncurrent.

ASSETS: - As assets is classified as current when it satisfies any of the following criteria:

(i) It is expected to be realized in or intended for sale or consumption in the company normal operating cycle. (ii) It is held primarily for the purpose of being traded. (iii) It is expected to be realized within 12 months of the reporting date or (iv) It is Cash or Cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date. Current assets include the current position of the non current financial assets. All other Assets are classified as Non current.

LIABILITY:- A Liability is classified as current when it satisfies any of the following criteria:

(i) It is expected to be settled in the companies normal operating cycle, or

(ii) It is held primarily for the purpose of being traded, or

(iii) It is due to be settled within 12 months after the reporting date, or

(iv) The company does not have an unconditional right to date settlement of the liability for at least 12 months after the reporting date. Term of a liability that could at the option of the counter party result in its settlement by the issue of equity instrument do not affected its classification. Current liability includes current position of the non current financial liabilities all other liabilities are classified as Noncurrent.

(e) Sales

Sales are inclusive of freight and octroi claimed in the sales invoices, but net of excise duty and sales return.

(f) State Subsidy

State capital investment subsidy is not specifically related to any Fixed Assets and has been credited to Capital Subsidy Account under the head of Capital Reserve.

(g) Fixed Assets

Fixed assets are carried at cost of acquisition or construction (net of CENVAT where applicable). They are carried at historical cost less accumulated depreciation.

(h) Depreciation

Depreciation is charged over the estimated useful life of fixed assets on a Written down Value basis except on trademark which is depreciated on the basis of SLM having life of 5 years. The rates of depreciation for fixed assets, which are not lower than the rates prescribed in Schedule XIV to the Companies Act, 1956.

(i) Stores and Spares including Coal, Chemical Stores, Spares & Coal

Chemical are charged to the Profit and Loss Account as and when these are incurred.

(j) Revenue Recognition

In appropriate circumstances revenue income is recognized when no significant uncertainty as to the determination or realization exist.

(k) Inventories

Inventories consisting of Raw Material and Packing Material have been valued at lower of cost or net realizable value on FIFO cost basis. Finished goods have been valued at lower of cost or net realisable value. Costs for Finished Goods includes direct material, labour, excise duty and appropriate production overheads.

(l) Investment

Investment in Equity Shares is stated at cost. Company has made the investment amounting to Rs.67.84 lacs (P.Y. Rs.67.84 lacs) in Beryl Securities Ltd., a Company under the same management. But no provision of Rs.712320.00 (P.Y. Rs. 1838464.00) has been made for diminution in value of Securities [(Market Value Rs. 60,71,680.00) (P.Y. Rs. 49, 45, 536.00)] due to temporary in nature in the opinion of the management.

(m) Foreign Currency Transactions

There is no foreign currency transaction entered into by the company in during the year.

(n) Borrowing Cost

Borrowing cost is treated as revenue expenditure and is charged to the Profit and Loss Account for the year. There is no borrowing cost regarding acquisition of capital assets.

(o) Taxation

1) The Provision for wealth tax and current tax has been provided in accordance with provision of wealth tax Act 1956 and the Income Tax Act, 1961.

2) Deferred tax assets and liabilities are recognized on a prudent basis for future tax consequences of timing differences arising between the carrying value of assets and liabilities and their respective tax basis, and carried forward losses. It is measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact of changes in deferred tax assets and liabilities is recognized to the profit and loss account.

(p) Earning per share

The company reports basic and diluted earning per shares are computed in accordance with Accounting Standard-20 -Earning per share. Basic EPS is calculated by dividing the Net Profit after tax for the year attributable to equity share holders by the weighted Average number of Equity Shares outstanding during the year.

(q) Employee Benefit

Expenses & Liabilities in respect of employees benefit are recorded in accordance with Revised Accounting Standard 15- Employee Benefits (Revised 2005)

1) Short Term Employee Benefit

All Employee benefit payable wholly within twelve month of rendering the service are classified as short term employee benefit and they are recognized in the period in which employee rendered the related service.

2) Post Employee benefit

i) Defined Contribution Plan

Defined contribution Plan are government administered Provident Fund, Employee State Insurance Scheme of all employee, company contribution to defined contribution plan are recognized in the profit & loss account in the financial year in which the employee rendered the related services. ii) Defined Benefit Gratuity Plan

Gratuity is a defined benefit plan, the liabilities recognized in the balance sheet in respect of Gratuity is the present value of the defined benefit obligation at the balance sheet date less the fair market value of plan assets, together with adjustment for unrecognized actuarial gains or losses and Past service cost, the defined benefit obligation is calculated at or near the balance sheet date by are in dependent actuary using the projected unit credit method. Actuarial gain and Losses arising from past experience and changes in actuarial assumption are charged to the prior period item, in the year in which such gains or losses are determined.

(r) Provision, Contingent Liabilities & Contingent Assets

The Provision is recognized when the company has a present obligation as a result of past events and it is probable that an outflow of resources would be required to settle the obligation, in respect of which a reliable estimate can be made. A disclosure for a Contingent Liability is made when there is a Possible Obligation or a Present obligation that may not require an outflow of resources.

(s) Cenvat Benefit

CENVAT Benefit is accounted on accrual basis on purchase of Raw material, and Packing Material as per amended rules and regulation.

(t) Prior Period Adjustment & Extra Ordinary Item

Income and expenditure pertaining to prior period duly reflected under head of prior period items in the statement of Profit & loss during the financial year. In the current year Rs. 259083/- on account of keyman insurance premium, Rs. 28090/- on account of cost auditor remuneration & Rs. 72963/- on account of income tax of earlier year debited to statement of profit & loss.

(u) Excise Duty

1. Excise Duty on manufactured excisable goods has been accounted on the basis of both payment made in respect of goods cleared but no provision for Rs. 99235/- has been made for goods lying in godown because it will be provided after clearance of goods sold.

2. Excise duty on sales amounting to Rs. 4112933/- has been reduced from sales in profit & loss account and excise duty on stock Rs. 99235/- has not been considered in the financial statement due to recorded on clearance of goods for sale.

(v) Contingencies and Events occurring after the Balance Sheet date.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(w) Impairment of Assets

Fixed asset are reviewed for impairment whenever events or changes in circumstances indicates that the carrying amount of assets may not be recoverable. If such assets are considered to be impaired, the impairment is recognized by debiting the Profit & Loss Account and is measured as the amount by which the carrying cost of assets exceeds the fair vale of assets. The impairment loss recognized in prior accounting period is reversed, if there has been a charge in the estimate of recoverable amount. By virtue of this Company has carried out comprehensive exercise, to assess the impairment loss of assets based on such exercise. There is no impairment of assets accordingly no adjustment in respect of loss or impairment of assets is required to be made in the accounts.

---

Mar 31, 2012

(A) BASIS OF ACCOUNTING

The financial statements have been prepared and presented under the historical cost convention on the accrual Basis of Accounting and in accordance with the Provision of the Companies Act 1956 and Accounting Principle generally accepted in India and comply with applicable Accounting principles in India, the mandatory Accounting Standards issued by the Institute of Chartered Accountant of India and the Companies Act, 1956.

(B) This is the first year of application of the Revised Schedule VI to the Companies Act, 1956 for the Preparation of the Financial Statements of the Company. The Revised Schedule VI introduced some significant conceptual changes as well as new Disclosure. These include classification of Assets and Liabilities in Current and Noncurrent. The Previous Period figures have also undergone a major reclassification to Company with the requirement of the Revised Schedule VI.

(C) CURRENT AND NON CURRENT CLASSIFICATION

All Assets and Liabilities are classified into Current and Noncurrent.

ASSETS:- As assets is classified as current when it satisfies any of the following criteria:

(i) It is expected to be realized in or intended for sale or consumption in the company normal operating cycle.

(ii) It is held primarily for the purpose of being traded.

(iii) It is expected to be realized within 12 months of the reporting date or

(iv) It is Cash or Cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current position of the non current financial assets. All other Assets are classified as Noncurrent.

LIABILITY:- A Liability is classified as current when it satisfies any of the following criteria:

(i) It is expected to be settled in the companies normal operating cycle, or

(ii) It is held primarily for the purpose of being traded, or

(iii) It is due to be settled within 12 months after the reporting date, or

(iv) The company does not have an unconditional right to date settlement of the liability for at least 12 months after the reporting date. Term of a liability that could at the option of the counter party result in its settlement by the issue of equity instrument do not affected its classification. Current liability includes current position of the non current financial liabilities all other liabilities are classified as Noncurrent.

(D) Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

E) Use of Estimates

The preparation of financial Statements requires estimates and assumptions to be made that affect the reported amount of Assets & liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

(F) Sales

Sales are inclusive of freight and octopi claimed in the sales invoices, but net of excise duty and sales return.

(G) State Subsidy

State capital investment subsidy is not specifically related to any Fixed Assets and has been credited to Capital Subsidy Account under the head of Capital Reserve.

(H) Fixed Assets

Fixed assets are carried at cost of acquisition or construction (net of CENVAT where applicable). They are carried at historical cost less accumulated depreciation.

(I) Depreciation

Depreciation is charged over the estimated useful life of fixed assets on a Written down Value basis. The rates of depreciation for fixed assets, which are not lower than the rates prescribed in Schedule XIV to the Companies Act, 1956.

(J) Stores and Spares including Chemical

Stores, Spares & Chemical are charged to the Profit and Loss Account as and when these are incurred.

(K) Revenue Recognition

In appropriate circumstances revenue income is recognized when no significant uncertainty as to the determination or realization exist.

(L) Inventories

Inventories consisting of Raw Material and Packing Material have been valued at lower of cost or net realizable value on FIFO cost basis. Finished goods have been valued at lower of cost or net realizable value. Costs for Finished Goods includes direct material, lab our, excise duty and appropriate production overheads.

(M) Investment

Investment in Equity Shares is stated at cost. Company has made the investment amounting to Rs.67.84 lacs (P.Y. Rs.67.84 lacs) in Beryl Securities Ltd., a Company under the same management. But no provision of Rs.18, 38, 464.00 (P.Y. Rs. 46, 94,528.00) has been made for diminution in value of Securities [(Market Value Rs. 49, 45, 536.00) (P.Y. Rs. 20, 89, 472.00)] due to temporary in nature in the opinion of the management.

(N) Foreign Currency Transactions

There is no foreign currency transaction entered into by the company in during the year.

(O) Borrowing Cost

Borrowing cost is treated as revenue expenditure and is charged to the Profit and Loss Account for the year. There is no borrowing cost regarding acquisition of capital assets.

(P) Taxation

a) The Provision for current tax has been provided in accordance with the Income Tax Act, 1961.

b) Deferred tax assets and liabilities are recognized on a prudent basis for future tax consequences of timing differences arising between the carrying value of assets and liabilities and their respective tax basis, and carried forward losses. It is measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact of changes in deferred tax assets and liabilities is recognized to the profit and loss account.

(Q) Earnings per share

The company reports basic and diluted earnings per shares are computed in accordance with Accounting Standard-20 -Earning per share.

Basic EPS is calculated by dividing the Net Profit after tax for the year attributable to equity share holders by the weighted Average number of Equity Shares outstanding during the year.

(R) Employee Benefit

Expenses & Liabilities in respect of employees benefit are recorded in accordance with Revised Accounting Standard 15- Employee Benefits (Revised 2005)

1) Short Term Employee Benefit

All Employee benefit payable wholly within twelve month of rendering the service are classified as short term employee benefit and they are recognized in the period in which employee rendered the related service.

2) Post Employee benefit

a) Defined Contribution Plan

Defined contribution Plan are government administered Provident Fund, Employee State Insurance Scheme of all employee, company contribution to defined contribution plan are recognized in the profit & loss account in the financial year in which the employee rendered the related services.

b) Defined Benefit Gratuity Plan Gratuity is a defined benefit plan, the liabilities recognized in the balance sheet in respect of Gratuity is the present value of the defined benefit obligation at the balance sheet date less the fair market value of plan assets, together with adjustment for unrecognized actuarial gains or losses and Past service cost, the defined benefit obligation is calculated at or near the balance sheet date by are in dependent actuary using the projected unit credit method. Actuarial gain and Losses arising from past experience and changes in actuarial assumption are charged to the prior period item, in the year in which such gains or losses are determined.

(S) Provision, Contingent Liabilities& Contingent Assets

The Provision is recognized when the company has a present obligation as a result of past events and it is probable that an outflow of resources would be required to settle the obligation, in respect of which a reliable estimate can be made.

A disclosure for a Contingent Liability is made when there is a Possible Obligation or a Present obligation that may not require an outflow of resources.

(T) Canvas Benefit

CENVAT Benefit is accounted on accrual basis on purchase of Raw material, and Packing Material as per amended rules and regulation.

(U) Prior Period Adjustment & Extra Ordinary Item

Income and expenditure pertaining to prior period duly reflected under head of prior period items in the Profit & loss Account during the financial year.

(V) Excise Duty

a) Excise Duty on manufactured excisable goods has been accounted on the basis of both payment made in respect of goods cleared as also provision made for goods lying in go down and accordingly liability of excise duty provided is NIL (P.Y. Rs. 25,332/-) as certified by the Management.

b) Excise duty on sales amounting to Rs.4, 93,036.00 (P.Y. 6, 46,846.00) has been reduced from sales in profit & loss account and excise duty on stock considered as nil (P.Y. 25,332.00) has been considered in the financial statement

(W) Contingencies and Events occurring after the Balance Sheet date.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(X) Impairment of Assets

Fixed asset are reviewed for impairment whenever events or changes in circumstances indicates that the carrying amount of assets may not be recoverable. If such assets are considered to be impaired, the impairment is recognized by debiting the Profit & Loss Account and is measured as the amount by which the carrying cost of assets exceeds the fair value of assets. The impairment loss recognized in prior accounting period is reversed, if there has been a charge in the estimate of recoverable amount. By virtue of this Company has carried out comprehensive exercise, to assess the impairment loss of assets based on such exercise. There is no impairment of assets accordingly no adjustment in respect of loss or impairment of assets is required to be made in the accounts.

---

Mar 31, 2010

A. Basis of Accounting

1. The accounts of the Company are prepared under the historical cost convention and in accordance with the applicable Accounting Principle in India, The Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provision of the Companies Act, 1956. Accounting policies not specifically referred otherwise are in consistence with generally accepted accounting principles followed by the Company.

2. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

b. Sales

Sales are inclusive of freight and octroi claimed in the sales invoices, but net of excise duty and sales return.

c. State Subsidy

State capital investment subsidy not specifically related to any Fixed Assets and has been credited to Capital Subsidy Account.

d. Fixed Assets

Fixed assets are stated at cost of acquisition or construction (net of CENVAT where applicable). They are stated at historical cost less accumulated depreciation.

e. Depreciation

Depreciation is provided on the basis of Written Down Value method at the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956.

f. Stores and Spares including Chemical

Stores, Spares & Chemical are charged to the Profit and Loss Account as and when these are incurred.

g. Revenue Recognition

In appropriate circumstances revenue income is recognized when no significant uncertainty as to the determination or realization exist.

h. Inventories

Inventories consisting of Raw Material and Packing Material have been valued at lower of cost or net realizable value on FIFO cost basis. Finished goods have been valued at lower of cost or net realisable value. Costs for Finished Goods includes direct material, labour, excise duty and appropriate production overheads.

i. Investment

Investment in Equity Shares is stated at cost Company has made the investment amounting to Rs.67.84 lacs (P.Y. Rs.67.84 lacs) in Beryl Securities Ltd. a Company under the same management. But no provision of Rs.6105600.00 (P.Y. Rs.6105600.00) has been made for diminution in value of Securities [(Market Value Rs. 678400.00) (P.Y. Rs. 678400.00)] due to temporary in nature in the opinion of the management.

j. Foreign Currency Transactions

There is no foreign currency transaction recorded during the year.

k. Borrowing Cost

Borrowing cost are treated as revenue expenditure and are charged to the Profit and Loss Account for the

year. There is no borrowing cost regarding acquisition of capital assets.

l. Segment Reporting

Since the company is being operated in a single segment, namely "Injectable" (SV & LV) Thus the disclosure requirement of AS-17 issued by the ICAI is not applicable.

m. Taxation

a) Provision for current tax has been provided in accordance with the Income Tax Act, 1961.

b) Deferred Income tax is recognised for future tax consequences of timing differences. It is measured using enacted tax rates and tax laws applicable to taxable income of the current year.

n. Earning per share

The company reports basic and diluted Earning per Shares (EPS) in accordance with AS-20. Basic EPS is computed by dividing the Net Profit after tax for the year by the weighted Average number of Equity Shares outstanding during the year.

o. Employee Benefit

Expenses & Liabilities in respect of employees benefit are recorded in accordance with Revised Accounting Standard 15- Employee Benefits (Revised 2005)

1) Short Term Employee Benefit

All Employee benefit payable wholly within twelve month of rendering the service are classified as short termemployee benefit and they are recognized in the period in which employee rendered the related service.

2) Post Employee benefit

a) Defined Contribution Plan

Defined contribution Plan are government administered Provident Fund, Employee State Insurance Scheme of all employee, company contribution to defined contribution plan are recognized in the profit & loss account in the financial year in which the employee rendered the related services.

b) Defined Benefit Gratuity Plan

Gratuity is a defined benefit plan, the liabilities recognized in the balance sheet in respect of Gratuity is the present value of the defined benefit obligation at the balance sheet date less the fair market value of plan assets, together with adjustment for unrecognized actuarial gains or losses and Past service cost, the defined benefit obligation is calculated at or near the balance sheet date by are in dependent actuary using the projected unit credit method. Actuarial gain and Losses arising from past experience and changes in actuarial assumption are charged to the prior period item, in the year in which such gains or losses are determined.

p. Provision Contingent Liabilities& Contingent Assets

Provision is recognized when the company has a present obligation as a results of past events and it is probable that there will be an outflow of resources would be required to settle the obligation and in respect of which a reliable estimate can be made.

q. Cenvat Benefit

CENVAT Benefit is accounted on accrual basis on purchase of Raw material, and Packing Material as per amended rules and regulation.

r. Prior Period Adjustment & Extra Ordinary Item

Income and expenditure pertaining to prior period duly reflected in prior period items in during the financial year.

s. Excise Duty

a) Excise Duty on manufactured excisable goods has been accounted on the basis of both payment made in respect of goods cleared as also provision made for goods lying in godown and accordingly liability of excise duty is provided Rs.25,332/- (P.Y. Rs.58,821/-) as certified by the Management.

b) Excise duty on sales amounting to Rs.6,46,846.00 (P.Y. 3,48,385) has been reduced from sales in profit & loss account and excise duty on stock amounting Rs. 25,332.00 (P.Y. 58,821.00) has been considered in the financial statement.

u. Contingencies and Events occurring after the Balance Sheet date.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

v. Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed, if there has been a charge in the estimate of recoverable amount. By virtue of this Company has carried out comprehensive exercise, to assess the impairment loss of assets based on such exercise. There is no impairment of assets accordingly no adjustment in respect of loss or impairment of assets is required to be made in the accounts.