Accounting Policies of CJ Gelatine Products Ltd. Company

Mar 31, 2024

1. MATERIAL ACCOUNTING POLICIES

1.1 Basis Of Preparation Of Financial Statements

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (IND AS). The financial statements have
been prepared to comply in all material respects with the Indian accounting standards notified under the Companies (Indian Accounting Standards) Rules,
2015, (as amended and as applicable from time to time) and the relevant provisions of the Companies Act, 2013. The financial statements have been
prepared on an accrual basis and under the historical cost convention on Going Concern basis.

The accounting policies and estimates adopted in the preparation of financial statements are consistent with those of previous year, except for the change
in accounting policy explained below (if any).

1.2 Material Accounting Policies

(a) . Property Plant Equipment (PPE)

Fixed assets are stated at historical cost less accumulated depreciation and impairment loss if any. While arriving at the historical cost, all costs, including
net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the fixed assets, and including financing
costs till commencement of commercial production or the date the asset is put to use or bringing the asset to its working condition for intended use, are
capitalized.

Property, Plant and Equipment / Other Intangible Assets are depreciated / amortized over their estimated useful life, after taking into account estimated
residual value.

Management reviews the estimated useful life and residual values of the assets annually in order to determine the amount of depreciation / amortization
to be recorded during any reporting period. The useful life and residual values are based on the Group’s historical experience with similar assets and take
into account anticipated technological changes. The management has estimated the residual value to be the 5% of the original cost of the assets. The
depreciation / amortization for future periods is revised if there are significant changes from previous estimates.

Depreciation on property, plant and equipment and investment property is provided on straight line method, considering residual value of 5% of the cost
of the asset, over the useful lives of the asset, as specified in Schedule II of the Companies Act, 2013. The useful life estimated by the technical experts
is as under:

Type of Asset Useful Lives (Years)

1. Building-Factory 30

2. Plant & Machinery 15

3. Furniture & Fixtures 10

4. Computers & Accessories 3

5.Office Equipments 5

6.Vehicle 8

(b) . Revenue Recognition

Revenue is recognized to the extent it is probable that the economic benefits will flow to the company and that the revenue can be reliably measured,
regardless of when the payment is being made revenue is measured at the fair value of the consideration received or receivable taking into account
contractually defined terms of payment and excluding taxes or duties collected on behalf of the government The company assess its revenue arrangements
against specific criteria , Revenue is recognized net of discounts , central excise duty, GST, or other taxes applicable

Sale of Goods

Revenue From sale of goods is recognized in the statement of profit and loss when the significant risks and rewards in respect of ownership of goods
have been transferred to buyer as per terms of respective sale order. Revenue from the sale of goods is measured at the fair value consideration received
or receivable net of returns and allowance and discounts.

(c). TAXES
Current Income Tax

Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions
of the relevant tax laws. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted, at the reporting date.
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 is recognized for the future tax consequences of deductible temporary differences between the carrying values of assets and liabilities and
their respective tax bases at the reporting date. Deferred tax liabilities are generally recognized for all taxable temporary differences except when the
deferred tax liability arises at the time of transaction that affects neither the accounting profit or loss nor taxable profit or loss. Deferred tax assets are
generally recognized for all deductible temporary differences, carry forward of unused tax credits and any unused tax losses, to the extent that it is
probable that future taxable income will be available against which the deductible temporary differences and carry forward of unused tax credit and
unused tax losses can be utilised, except when the deferred tax asset relating to temporary differences arising at the time of transaction that affects neither
the accounting profit or loss nor the taxable profit or loss. Deferred tax relating to items recognized outside the statement of profit and loss is recognized
outside the statement of profit and loss, either in other comprehensive income or directly in equity. The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred tax asset to be utilised. Unrecognised deferred tax assets are re-asses sed at each reporting date and are recognized to the extent that it has become.

1.3 Use Of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the
results of operations during the reporting period.

Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.
Difference between the actual results and estimates are recognised in the period in which the results are known / materialised.

1.4 Inventories

Finished goods and work in progress are valued at lower of historical cost or net realizable value. Cost of inventories comprises of cost of purchase, cost
of conversion and other costs incurred in bringing them to their respective present location and condition. By products are valued at net realizable value.
Cost of finished goods and by- products includes excise duty. Cost is determined on a weighted average basis.

Stores, Spares and Raw Materials are valued at lower of historical cost or net realizable value. However materials & other items held for use in the
production of inventories are not written below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.
Cost is determined on a weighted average basis.

Historical cost is determined on the basis of weighted average method.

Obsolete stocks are identified once every year on the basis of technical evaluation and are charged off to revenue.

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

1.5 IMPAIRMENT OF NON-FINANCIAL ASSETS

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company
estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to
its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss.

If at the balance sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and
the asset is reflected at the recoverable amount but limited to the carrying amount that would have been determined (net of depreciation/amortization)
had no impairment loss been recognized in prior accounting periods.

1.6 FINANCIAL INSTRUMENTS

Recognition, initial measurement and de-recognition

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument and are
measured at fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial
liabilities, except for those which are classified at Fair Value through Profit & Loss (FVTPL) at inception, are adjusted with the fair value on initial
recognition.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expires, or has been transferred, and the Company
has transferred all substantial risks and rewards of ownership. A financial liability (or a part of financial liability) is derecognised when the obligation
specified in the contract is extinguished or discharged or cancelled or expires.

Classification and subsequent measurement of financial assets

For the purpose of subsequent measurement, financial assets are classified into the following categories upon initial recognition:

• amortised cost

• financial assets at fair value through profit or loss (FVTPL)

• financial assets at fair value through other comprehensive income (FVOCI)

All financial assets except for those at FVTPL are subject to review for impairment at least at each reporting date.

Amortised cost

A financial asset is measured at amortised cost using effective interest rates if the following conditions are met:

a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

b) 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.

The Company''s cash and cash equivalents, trade receivables and most of other receivables fall into this category of financial instruments.

Financial assets at FVTPL

Financial assets at FVTPL include financial assets that either do not meet the criteria for amortised cost classification or that are equity instruments held
for trading or that meet certain conditions and are designated at FVTPL upon initial recognition. All derivative financial instruments also fall into this
category. Assets in this category are measured at fair value with gains or losses recognised in Statement of Profit and Loss. The fair values of financial
assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.

Financial assets at FVOCI

FVTOCI financial assets are either debt instruments that are managed under hold to collect and sell business model or are non-trading equity instruments
that are irrevocable designated to this category.

FVTOCI financial assets are measured at fair value. Gains and losses are recognized in other comprehensive income, except for interest and dividend
income, impairment losses and foreign exchange differences on monetary assets, which are recognized in Statement of Profit and Loss.

Classification and subsequent measurement of financial liabilities

Financial liabilities are measured subsequently at amortized cost using the effective interest method, except for financial liabilities held for trading or
designated at FVTPL, that are carried subsequently at fair value with gains or losses recognized in Statement of Profit and Loss. All derivative financial
instruments are accounted for at FVTPL.

Embedded Derivatives

Some hybrid financial liability contracts contain both derivative and a non-derivative component. In such cases, the derivative component is termed as
embedded derivative, with a non-derivative component representing the host financial liability contract. If the economic risks and characteristics of
embedded derivatives are not closely related to those of the host contract and the contract itself is not measured at FVTPL, the embedded derivative is
bifurcated and reported at fair value, with gains and losses recognised in net gains (losses) on financial assets/liabilities at fair value through profit or loss
(FVTPL). The host financial liability is accounted for in accordance with the appropriate Ind AS.

Fair value measurement

The Company classifies the fair value of its financial instruments in the following hierarchy, based on the inputs used in their valuation:

i) Level 1: The fair value of financial instruments quoted in active markets is based on their quoted closing price at the Balance Sheet date.

ii) Level 2: The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques using observable
market data. Such valuation techniques include discounted cash flows, standard valuation models based on market parameters for interest rates, yield
curves or foreign exchange rates, dealer quotes for similar instruments and use of comparable arm’s length transactions.

iii) Level 3: The fair value of financial instruments that are measured on the basis of entity specific valuations using inputs that are not based on
observable market data (unobservable inputs).

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 for
financial assets measured at amortised cost or at fair value through other comprehensive income.

ECL is the weighted average difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash
flows that the Company expects to receive.

1.7 EMPLOYEES BENEFITS

Expenses and liabilities in respect of employee benefits are record ed as under.

a. Contribution Plan

The Company makes contribution to statutory provident fund and Employee State Insurance in accordance with Employees Provident Fund and
Miscellaneous Provisions Act, 1952 and Employee State Insurance Act, 1948 which is a defined contribution plan and contribution paid or payable is
recognized as an expense in the period in which services are rendered by the employee.

b. Short-term employee benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related
service is rendered.

c. Post-employment and other long term employee benefits

Post-employment and other long term employee benefits are recognized as an expense in the Profit and Loss account in the year in which the employee
has retired / resigned and the amount has become payable.

d. Defined Benefit Plan

Defined benefit plans are the amount of the benefit that an employee will receive on completion of services by reference to length of service, last drawn
salary or direct costs related to such benefits. The legal and/ or constructive obligation for such benefits remains with the Company.

The liability recognised for Defined Benefit Plans is the present value of the Defined Benefit Obligation (DBO) at the reporting date less the fair value
of plan assets, together with adjustments for unrecognised actuarial gains or losses and past service costs. The management estimates the present value
of the DBO annually through valuations by an independent actuary using the projected unit credit method. Actuarial gains and losses are included in
Statement of Profit and Loss or Other Comprehensive Income of the year.

Remeasurement, comprising of actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets
(excluding interest), is reflected in the Balance Sheet with a charge or credit recognised in other comprehensive income in the period in which they occur.
Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to the Statement of
Profit and Loss.

1.8 LEASES

Leases, where the lessor effectively retains substantially all the risks and benefits of the ownership of the leased item, are classified as operating leases.
Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.

Leases, wherethe lessor effectively transfer to the lessee substantially all the risks and rewards incidental to ownership of the leased item are classified
and accounted for as finance lease.

Company as a Lessee

The Company recognises a right-of-use asset and a lease liability at the lease commencement date except for short-term leases of twelve months or less
and leases for which the underlying asset is of low value, which are expensed in the statement of Profit & Loss on a straight-line basis over the lease
term. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made
at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to
restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life
of the right-of-use asset or the end of the lease term. Certain lease arrangements include the options to extend the lease term. Right-of use assets and lease
liabilities include these options when it is reasonably certain that they will be exercised. The estimated useful lives of right-of-use assets are determined
on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reviewed for indicators of impairment and
reduced by impairment losses, if any, and adj usted for certain re-measurements of the lease liability.

1.9 BORROWING COST

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get
ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

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Mar 31, 2015

1. Accounting Convention and Concepts :

a. The Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP).The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act,2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy for depreciation on Fixed Assets. Refer note 3C.

b. The Company generally follows Mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Use Of Estimates:

The preparation of financial statements are in conformity with generally accepted accounting principles require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the year. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

3. Tangible Fixed Assets and capital work in progress:

Fixed assets are stated at cost, less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Capital work in progress comprises cost of tangible fixed assets not ready for intended use at the balance sheet date.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day to day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

4. Depreciation on tangible fixed assets:

Depreciation on fixed assets is provided using straight line method based on rates specified in Schedule II of the Companies Act, 2013.

Till the year ended March 31, 2014, Schedule XIV of the Companies Act, 1956, prescribed requirements concerning depreciation on fixed assets. From the Current year, Schedule XIV has been replaced by Schedule II of the Companies Act, 2013. The applicability of Schedule II has resulted in the following changes related to depreciation of fixed assets. Unless stated otherwise, the impact mentioned for the current year is likely to hold good for future years also.

a. Useful Lives / Depreciation Rates:

Till the year ended March 31, 2014, depreciation rates prescribed under Schedule XIV were treated as minimum rates and the company was not allowed to charge depreciation at lower rates even if such lower rates were justified by the estimated useful life of the asset. Schedule II to the Companies Act 2013, prescribes useful lives for fixed assets which, in many cases, are different from lives prescribed under the erstwhile Schedule XIV. However, Schedule II allows companies to use higher / lower useful lives and residual values if such useful lives and residual values can be technically supported and justification for difference is disclosed in the financial statements.

The management believes that the useful lives / depreciation rates specified under Schedule II of the Companies Act,2013 would fairly reflect the estimate of the useful lives of the existing fixed assets and hence would comply with the provisions of Schedule II commencing from April 1, 2014. Had the Company continued to use the earlier accounting policy i.e as per Schedule XIV of the Companies Act,1956, the impact on depreciation of fixed assets would have been lesser by Rs.13.52 lakhs.

b. Depreciation on assets costing less than Rs.5000/-:

Till the year ended March 31,2014, to comply with the requirements of Schedule XIV to the Companies Act,1956, the company was charging 100% depreciation on assets costing less than Rs.5000/- in the year of purchase. However, Schedule II to the companies Act, 2013, applicable from the current year, does not recognize such practice. Hence, to comply with the requirement of Schedule II to the Companies Act, 2013, the company has changed the accounting policy for depreciation of assets costing less than Rs.5000/- . The management has decided to apply the revised accounting policy prospectively from the accounting period commencing from April 1, 2014. The change in the accounting for depreciation of assets costing less than Rs.5000/- did not have any material impact on the financial statements of the company for the current year.

5. Inventories:

Finished products are valued at lower of cost or net realizable value, stock in process, raw material, stores and spares at cost and these are in conformity with Accounting Standards.

6. Sales / Revenue:

Sale of goods is recognized at the point of dispatch to customers. The Excise Duty collected on sales is added in Sales.

7. Excise Duty:

Excise Duty on manufactured goods is accounted for at the time of their clearance from the factory. The above policy however, has no impact on the operating results of the Company.

8. Retirement Benefits :

Company''s contribution to Provident Fund are charged to Profit & Loss Account. Gratuity and Leave encashment benefits at the time of retirement are charged to Profit & Loss Account on the basis of actual payment.

9. Contingent Liabilities:

Contingent liabilities are determined on the basis of available information and are disclosed by way of other notes given herein below.

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Mar 31, 2014

1. Accounting Convention and Concepts:

a. The Financial Statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles and provisions of the Companies Act, 1956, as adopted consistently by the Company.

b- The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Use of Estimates:

The presentation of financial statements are in conformity with generally accepted accounting principles require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the year. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. Fixed Assets/Depreciation:

a. Fixed assets are stated at cost of acquisition or construction. In case of revaluation affixed assets, the Original cost as determined by the Valuer is considered in the accounts and the differential amount is transferred to Revaluation Reserve.

b. Depreciation is provided on Buildings and Plant & machinery on straight line method and the rest of the fixed assets on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956.

c. Leasehold Land will be written off in the year in which the respective lease periods expire.

d. Pursuant to Section 205(2) depreciation on Plant Si Machinery is calculated on revalued figure and not on original cost of Plant Si Machinery, Subsequently, depreciation on revalued figure is reduced and balance is carried to Profit & Loss Account,

4. Inventories:

Finished products are valued at lower of cost or net realizable value, stock in process, raw material, stores and spares at cost and these are in conformity with Accounting Standards.

5. Sales / Revenue:

Sale of goods is recognized at the point of dispatch to customers. The Excise Duty collected on sales is added in Sales.

6. Excise Duty:

Excise Duty on manufactured goods is accounted for at the time of their clearance from the factory. The above policy however, has no impact on the operating results of the Company.

7. Retirement Benefits:

Company's contribution to Provident Fund is charged to Profit & Loss Account. Gratuity and Leave encashment benefits at the lime of retirement are charged to Profit & Loss Account on the basis of actual payment.

8. Contingent Liabilities:

Contingent liabilities are determined on the basis of available information and are disclosed by way of other notes given herein betow,

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Mar 31, 2013

1. Accounting Convention and Concepts -

a.The financial statements have been prepared under the historical cost convention in accordance With generally accepted accounting principles and provisions of the Companies Act, 1956, as adopted consistently by the Company

b. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Use of Estimates -

The presentation of financial statements in conformity with generally accepted accounting principles require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the year. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. Fixed Assets/ Depreciation -

a. Fixed assets are stated at cost of acquisition or construction. In case of revaluation of fixed assets, the original cost as determined by the valuer is considered in the accounts and the differential amount is transferred to Revaluation Reserve.

b. Depreciation is provided on Building and Plant & Machinery on straight line method and the rest of the fixed assets on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956.

c. Leasehold Land will be written off in the year in which the respective lease periods expire.

d. Pursuant to Section 205(2) depreciation on Plant & Machinery is calculated on revalued figure and not on original cost of Plant & Machinery. Subsequently the depreciation on revalued figure is reduced and balance is carried to Profit and Loss Account.

4. Inventories -

Finished products are valued at lower of cost or net realizable value, stock in process, raw material, stores and spares at cost and these are in conformity to Accounting Standards.

5. Sales/ Revenue -

Sale of goods is recognized at the point of dispatch to customers. The excise duty and sales tax collected on sales are added in sales.

6. Excise duty -

Excise duty on manufactured goods is accounted for at the time of their clearance from the factory. The above policy however has no impact on the operating results of the company.

7. Retirement benefits -

Company''s contributions to Provident Fund are charged to Profit and Loss Account. Gratuity and leave encashment benefits at the time of retirement are charged to Profit and Loss Account on the basis of actual payment.

8. Contingent liabilities -

Contingent liabilities are determined on the basis of available information and are disclosed by way of other notes given herein below.

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Mar 31, 2012

1. Accounting Convention and Concepts -

a. The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles and provision of the Companies Act, 1956, as adopted consistently by the Company.

b. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Use of Estimates-

The presentation of financial statements in conformity with the generally accepted accounting principles require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the year. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3. Fixed Assets/ Depreciation -

a. Fixed Assets are stated at cost of acquisition or construction. In case of revaluation of fixed assets, the original cost as determined by the value is considered in the accounts and the differential amount is transferred to Revaluation Reserve.

b. Depreciation is provided on Building and Plant & Machinery on straight line method and rest of the fixed assets on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956.

c. Leasehold Land will be written off in the year in which the respective lease periods expire.

d. Pursuant to Section 205 (2) depreciation on Plant & Machinery is calculated on revalued figure and not on original cost of Plant & Machinery. Subsequently the depreciation on revalued figure is reduced and balance is carried to Profit and Loss Account.

4. Inventories -

Finished products are valued at lower of cost or net realizable value, stocks in process, raw material, stores and spares at cost and these are in conformity to Accounting Standards.

5. Sales/Revenue-

Sale of goods is recognized at the point of dispatch to customers. The excise duty and sales tax collected on sales are added in sales.

6. Excise duty -

Excise duty on manufactured goods is accounted for at the time of their clearance from the factory. The above policy however has no impact on the operating results of the Company.

7. Retirement benefit -

Company's contributions to Provident Fund are charged to Profit and Loss Account. Gratuity and leave encashment benefits at the time of retirement are charged to Profit and Loss Account on the basis of actual payment.

8. Contingent liabilities-

Contingent liabilities are determined on the basis of available information and are disclosed by way of other notes given herein below.

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Mar 31, 2011

1. Accounting Convention and Concepts -

a. The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles and provision of the Companies Act, 1956, as adopted consistently by the Company.

b. The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

2. Use of Estimates -

The presentation of financial statements in conformity with the generally accepted accounting principles require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the year. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised.

3. Fixed Assets/ Depreciation -

a. Fixed Assets are stated at cost of acquisition or construction. In case of revaluation of fixed assets, the original cost as determined by the valuer is considered in the accounts and the differential amount is transferred to Revaluation Reserve.

b. Depreciation is provided on Building and Plant & Machinery on straight line method and rest of the fixed assets on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956.

c. Leasehold Land will be written off in the year in which the respective lease periods expire.

d. Pursuant to Section 205 (2) depreciation on Plant & Machinery is calculated on revalued figure and not on original cost of Plant & Machinery. Subsequently the depreciation on revalued figure is reduced and balance is carried to Profit and Loss Account.

e. During the Financial Year 2010-11 we were informed that the company had to surrender part of Leasehold Land purchased earlier from MPAKVN by virtue of litigation matter which was pending before the appropriate authority.

4. Inventories -

Finished products are valued at lower of cost or net realisable value, stocks in process, raw material, stores and spares at cost and these are in conformity to Accounting Standards.

5. Sales/ Revenue -

Sale of goods is recognised at the point of dispatch to customers. The excise duty and sales tax collected on sales are added in sales.

6 Excise duty -

Excise duty on manufactured goods is accounted for at the time-of their clearance from the factory. The above policy however has no impact on the operating results of the Company.

7. Retirement benefit -

Company's contributions to Provident Fund are charged to Profit and Loss Account. Gratuity and leave encashment benefits at the time of retirement are charged to Profit and Loss Account on the basis of actual payment.

8. Contingent liabilities -

Contingent liabilities are determined on the basis of available information and are disclosed by way of other notes given herein below.

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Mar 31, 2010

1. Accounting Convention and Concepts -

a. The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting principles and provision of the Companies Act, 1956, as adopted consistently by the Company.

b. The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

2. Use of Estimates -

The presentation of financial statements in conformity with the generally accepted accounting principles require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the year. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised.

3. Fixed Assets/ Depreciation -

a. Fixed Assets are stated at cost of acquisition or construction. In case of revaluation of fixed assets, the original cost as determined by the valuer is considered in the accounts and the differential amount is transferred to Revaluation Reserve.

b. Depreciation is provided on Building and Plant & Machinery on straight line method and rest of the fixed assets on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956.

c. Leasehold Land will be written off in the year in which the respective lease periods expire.

d. Pursuant to Section 205 (2) depreciation on Plant & Machinery is calculated on revalued figure and not on original cost of Plant & Machinery. Subsequently the depreciation on revalued figure is reduced and balance is carried to Profit and Loss Account.

4. Inventories -

Finished products are valued at lower of cost or net realisable value, stocks in process, raw material, stores and spares at cost and these are in conformity to Accounting Standards.

5. Sales/ Revenue -

Sale of goods is recognised at the point of dispatch to customers. The excise duty and sales tax collected on sales are added in sales.

6 Excise duty -

Excise duty on manufactured goods is accounted for at the time of their clearance from the factory. The above policy however has no impact on the operating results of the Company.

7. Retirement benefit -

Companys contributions to Provident Fund are charged to Profit and Loss Account. Gratuity and leave encashment benefits at the time of retirement are charged to Profit and Loss Account on the basis of actual payment.

8. Contingent liabilities -

Contingent liabilities are determined on the basis of available information and are disclosed by way of other notes given herein below.