Accounting Policies of Everest Organics Ltd. Company

Mar 31, 2025

2. STATEMENT OF MATERIAL ACCOUNTING POLICIES
2.1 BASIS FOR PREPARATION

a. Statement of Compliance

The financial statements of Everest Organics Limited have been prepared and presented in
accordance with Indian Accounting Standards (“Ind As”) notified under section 133 of accounting
standards notified by the Central Government of India under Section 133 of the Companies Act,
2013 read with Companies (Indian Accounting Standards) Rules, 2015, other pronouncements of
the Institute of Chartered Accountants of India, the relevant provisions of Companies Act, 2013
and guidelines issued by Securities and Exchange Board of India (SEBI).

The company’s Internal Financial Control (IFC) over financial reporting is a process designed to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting
principles, which is being implemented by the company as a continuous process exercise required
for providing reasonable assurance regarding the reliability of the financial reporting.

Accounting policies not referred to herein otherwise are consistent with Generally Accepted
Accounting Principles in India. The financial statements are drawn up in Indian Rupees(In Lakhs),
the functional currency of the Company, and in accordance with Ind AS presentation.

The financial statements comprise the Balance Sheet as at 31^st March, 2025 and 31^st March, 2024,
the Statement of Profit and Loss, Statement of Changes in Equity and Statement of Cash Flow for
the year ended 31^st March, 2025 and 31^st March, 2024 and a summary of material accounting
policies and other explanatory information (together hereinafter referred as” Financial
Statements”).

b. Basis of measurement

The company follows the mercantile system of accounting and recognizes incomes and expenses
on an accrual basis. The accounts are prepared as a going concern and on a historical cost basis
except for the following:

• Certain financial assets and liabilities are measured at fair value or amortised cost.

• Employee defined benefit asset/liability recognized as the total of the fair value of plan assets
and actuarial losses/gains, and the present value of defined benefit obligation.

c. Functional & presentation currency

Items included in the financial statements of the Company are measured using the currency of the
primary economic environment in which the entity operates (“the functional currency”). The
financial statements are presented in Indian rupee (Rs.), which is the company’s functional and
presentation currency.

d. Use of estimates

The preparation of the financial statements in conformity with Ind AS requires management to
make estimates, judgments and assumptions that affect the application of accounting policies and
the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at
the date of the financial statements and reported amounts of revenues and expenses during the
period. Actual results could differ from these estimates. Estimates and underlying assumptions are
reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in
the current and future periods and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities on the date of the financial statements and
reported amounts of revenues and expenses for the year.

e. Current and non-current classification

All the assets and liabilities have been classified as current or non-current as per the Company’s
normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013, read
with Indian Accounting Standards.

f. Assets

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

a) it is expected to be realized 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 realized within twelve (12) months after the reporting date; or

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

g. 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 (12) 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 (12) months after the reporting date. Terms of a liability that could, at the option of
the counter party, result in its settlement by the issue of equity instruments do not affect its
classification.

All other assets/liabilities are classified as non-current. Deferred tax assets and liabilities are
classified as non-current assets and liabilities.

Normal operating cycle is the time between the acquisition of assets for processing and their
realization in cash and cash equivalents. The Company has identified twelve (12) months as
its operating cycle.

A. Revenue Recognition:

Revenue is measured at the transaction price determined under IND AS 115-Revenue from
contracts with customers. Amounts disclosed as revenue are net of returns, trade allowances,
rebates, Goods & Service Tax (GST) collections and amounts collected on behalf of third parties.

Revenue from Sale of Goods:

Revenue from the sale of goods is recognized when the customer obtains control of the
Company’s product, which occurs at a point in time, usually upon dispatch/shipment, with payment
terms typically in the range of 60 to 90 days after invoicing depending on product and geographic
region. Taxes collected from customers relating to product sales and remitted to government
authorities are excluded from revenues. The Company does not expect to have any contracts
where the period between the transfer of the promised goods to the customers and payment by
the customer exceeds one year. Consequently, the company does not adjust any of the
transaction prices for the time value of money.

For contracts with multiple performance obligations, the Company allocates the transaction price
to each performance obligation based on the relative standalone selling price. The Standalone
selling price of each performance obligation is estimated using the expected costs of satisfying
such performance obligation and then an appropriate margin is added for such goods. The amount
of revenue to be recognised is based on the consideration expected to be received in exchange for
goods, excluding trade discounts, volume discounts, sales returns and any taxes or duties
collected on behalf of the government which are levied on sales such as sales tax, value added
tax, goods and services tax, etc., where applicable. Any additional amounts based on terms of
agreement entered into with customers, is recognised in the period when the collectability
becomes probable and a reliable measure of the same is available.

As per the requirements of “Ind AS 115 - Revenue from Contracts with Customers”, Revenue
should be recognized when control of the goods is transferred to the customer. However, the
company has been consistently practicing the recognition of Revenue on Sales upon dispatch of
goods upto Balance Sheet Date, control for which was transferred after the Balance Sheet Date
but before the Financial Statements preparation and approval Date. This results in

understatement or overstatement of Turnover and Net Profit after tax for the Year and
consequently Reserves at the end of the year.

Keeping in view the Quid Pro Effect at the end of the year and at the beginning of the year for the
FY 2024-25 and 2023-24, (1) the Net Turnover for the FY 2024-25 was understated by Rs.710.15
Lakhs(Net Turnover for the year 2023-24 was overstated by Rs.609.45 Lakhs) and Likewise (2)
the Net Profit After Tax for the Year 2024-25 and Reserves & Surplus as at 31.03.2025 was
understated by Rs.220.25 Lakhs (Net Profit after Tax for FY 2023-24 and Reserves & Surplus as at
31.03.2024 was overstated by Rs.194.73 Lakhs).

Revenue from Sale of Services:

Revenue from Sale of services is recognised as per the terms of the contracts with customers
when the related services are performed, or the agreed milestones are achieved. Upfront non¬
refundable payments received are deferred and recognised as revenue over the expected period
over which the related services are expected to be performed.

B. Interest Income:

Interest income from financial assets at fair value through profit or loss is disclosed as interest
income within other incomes. Interest income on financial assets at amortised cost is calculated
using the effective interest method (EIR) is recognised in the statement of profit and loss as part of
other income. Interest income is calculated by applying the effective interest rate to the gross
carrying amount of a financial asset except for financial assets that subsequently become credit
impaired. For credit-impaired financial assets the effective interest rate is applied to the net
carrying amount of the financial asset (after deduction of the loss allowance).

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Mar 31, 2024

2. STATEMENT OF MATERIAL ACCOUNTING POLICIES 2.1 BASIS FOR PREPARATION

a. Statement of Compliance

The financial statements of Everest Organics Limited have been prepared and presented in accordance with Indian Accounting Standards (“Ind As”) notified under section 133 of accounting standards notified by the Central Government of India under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015, other pronouncements of the Institute of Chartered Accountants of India, the relevant provisions of Companies Act, 2013 and guidelines issued by Securities and Exchange Board of India (SEBI).

The company''s Internal Financial Control (IFC) over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, which is being implemented by the company as a continuous process exercise required for providing reasonable assurance regarding the reliability of the financial reporting.

Accounting policies not referred to herein otherwise are consistent with Generally Accepted Accounting Principles in India. The financial statements are drawn up in Indian Rupees, the functional currency of the Company, and in accordance with Ind AS presentation.

The financial statements comprise the Balance Sheet as at 31st March, 2024 and 31st March, 2023, the Statement of Profit and Loss, Statement of Changes in Equity and Statement of Cash Flow for the year ended 31st March, 2024 and 31st March, 2023 and a summary of material accounting policies and other explanatory information (together hereinafter referred as ” Financial Statements”).

b. Basis of measurement

The company follows the mercantile system of accounting and recognizes incomes and expenses on accrual basis. The accounts are prepared as a going concern and on historical cost basis except for the following:

• Certain financial assets and liabilities are measured at fair value or amortised cost.

• Employee defined benefit asset/liability recognized as the total of the fair value of plan assets and actuarial losses/gains, and the present value of defined benefit obligation.

c. Functional & presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The financial statements are presented in Indian rupee (Rs.), which is the company''s functional and presentation currency.

d. Use of estimates

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year.

e. Current and non-current classification

All the assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013, read with Indian Accounting Standards.

f. Assets

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

a) it is expected to be realized 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 realized within twelve (12) months after the reporting date; or

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

g. 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 (12) 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 (12) months after the reporting date. Terms of a liability that could, at the option of the counter party, result in its settlement by the issue of equity instruments do not affect its classification.

All other assets/liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Normal operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve (12) months as its operating cycle.

2.2 MATERIAL ACCOUNTING POLICIES:

A. Revenue Recognition:

Revenue is measured at the transaction price determined under IND AS 115-Revenue from contracts with customers. Amounts disclosed as revenue are net of returns, trade allowances, rebates, Goods & Service Tax (GST) collections and amounts collected on behalf of third parties.

Revenue from Sale of Goods:

Revenue from sale of goods is recognized when the customer obtains control of the Company''s product, which occurs at a point in time, usually upon dispatch/shipment, with payment terms typically in the range of 60 to 90 days after invoicing depending on product and geographic region. Taxes collected from customers relating to product sales and remitted to government authorities are excluded from revenues. The Company does not expect to have any contracts where the period between the transfer of the promised goods to the customers and payment by the customer exceeds one year. Consequently, the company does not adjust any of the transaction prices for the time value of money.

For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation based on the relative standalone selling price. The Standalone selling price of each performance obligation is estimated using the expected costs of satisfying such performance obligation and then an appropriate margin is added for such goods. The amount of revenue to be recognised is based on the consideration expected to be received in exchange for goods, excluding trade discounts, volume discounts, sales returns and any taxes or duties collected on behalf of the government which are levied on sales such as sales tax, value added tax, goods and services tax, etc., where applicable. Any additional amounts based on terms of agreement entered into with customers, is recognised in the period when the collectability becomes probable and a reliable measure of the same is available.

Revenue from Sale of Services:

Revenue from Sale of services is recognised as per the terms of the contracts with customers when the related services are performed, or the agreed milestones are achieved. Upfront nonrefundable payments received are deferred and recognised as revenue over the expected period over which the related services are expected to be performed.

B. Interest Income:

Interest income from financial assets at fair value through profit or loss is disclosed as interest income within other income. Interest income on financial assets at amortised cost is calculated using the effective interest method (EIR) is recognised in the statement of profit and loss as part of other income. Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for financial assets that subsequently become credit impaired. For credit-impaired financial assets the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss allowance).

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Mar 31, 2023

B) SIGNIFICANT ACCOUNTING POLICIES: i). REVENUE RECOGNITION:

Revenue is measured at the transaction price determined under IND AS 115-Revenue from contracts with customers. Amounts disclosed as revenue are net of returns, trade allowances, rebates, Goods & Service Tax (GST) collections and amounts collected on behalf of third parties.

a) Revenue from Sale of Goods:

Revenue from sale of goods is recognized when the customer obtains control of the Company''s product, which occurs at a point in time, usually upon dispatch/shipment, with payment terms typically in the range of 60 to 90 days after invoicing depending on product and geographic region. Taxes collected from customers relating to product sales and remitted to government authorities are excluded from revenues. The Company does not expect to have any contracts where the period between the transfer of the promised goods to the customers and payment by the customer exceeds one year. Consequently, the company does not adjust any of the transaction prices for the time value of money. For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation based on the relative standalone selling price. The Standalone selling price of each performance obligation is estimated using the expected costs of satisfying such performance obligation and then an appropriate margin is added for such goods.

b) Revenue from Sale of Services:

Revenue from Sale of services is recognised as per the terms of the contracts with customers when the related services are performed, or the agreed milestones are achieved.

c) Interest Income:

Interest income from financial assets at fair value through profit or loss is disclosed as interest income within other income. Interest income on financial assets at amortised cost is calculated using the effective interest method is recognised in the statement of profit and loss as part of other income. Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for financial assets that subsequently become credit impaired. For credit-impaired financial assets the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss allowance)..

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Mar 31, 2018

1. ACCOUNTING POLICIES:

A) Basis of preparation:

The company follows the mercantile system of accounting and recognizes incomes and expenses on accrual basis. The accounts are prepared on historical cost basis and as a going concern. These financial statements of Everest Organics Limited have been prepared and presented in accordance with Accounting Principles (IGAAP) generally accepted in India. IGAAP comprises of accounting standards notified by the Central Government of India under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015, other pronouncements of the Institute of Chartered Accountants of India, the relevant provisions of Companies Act, 2013 and guidelines issued by Securities and Exchange Board of India (SEBI). The financial statements are presented in Indian rupees rounded off to the nearest rupee.

The company’s Internal Financial Control (IFC) over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, which is being implemented by the company as a continuous process exercise required for providing reasonable assurance regarding the reliability of the financial reporting.

Accounting policies not referred to herein otherwise are consistent with Generally Accepted Accounting Principles in India.

B) Use of estimates :

The preparation of the financial statements in conformity with IGAAP requires the management to make estimates of useful life of tangible and intangible assets, assessment of recoverable amounts of deferred tax assets, provision for obligations relating to employees, provisions against litigations and impairment of assets. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year.

C) Revenue recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from sale of goods is recognized on dispatch (in respect of exports on the date of the shipping bill or airway bill) which coincides with transfer of significant risks and rewards to customer and is net of trade discounts, sales returns and sales tax, where applicable. Excise duty deducted from revenue (gross) is the amount that is included in revenue (gross).

Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Export entitlements are recognized and shown under the head “other income” when the same is received / right to receive, as per the terms and conditions of the scheme, is established in respect of the exports made and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.

D) Provisions and contingent liabilities:

A provision is recognized if as a result of a past event the company has a present legal obligation that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the obligation. Where no reliable estimates can be made, a disclosure is made as a contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation that may, but probably will not require an outflow of resources.

E) Current and non-current classification

All the assets and liabilities have been classified as current or non-current as per the Company normal operating cycle and other criteria set out in the Schedule-III to the Companies Act, 2013, read with Indian Accounting Standards.

(i) Assets:

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

a) it is expected to be realized 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 realized within 12 months after the reporting date; or

d) 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.

(ii) 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 12 months after the reporting date; or

d) the Company does not have an unconditional right to defer settlement of the liability for at least 12 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 / liabilities include the current portion of non-current financial assets / liabilities respectively.

All other assets / liabilities are classified as non-current.

F) Fixed Assets:

Tangible fixed assets are carried at the historical cost of acquisition or construction or at the consideration paid less accumulated depreciation arrived at taking into Schedule II of the Companies Act, 2013. The cost of tangible fixed assets includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets. Borrowing costs directly attributable to acquisition or construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalized.

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

Subsequent expenditure related to an item of tangible fixed asset is capitalized only if it increases the future benefits from the existing assets beyond its previously assessed standards of performance.

However, during the year there is no such interest expenditure which is capitalized.

Advances paid towards acquisition of tangible fixed assets outstanding at each balance sheet date are shown under short-term loans and advances. Cost of assets not ready for intended use, as on the balance sheet date, is shown as capital work-in-progress.

Gains or losses from disposal of tangible fixed assets are recognized in the statement of profit and loss.

G) Depreciation:

Depreciation on fixed assets is provided as per useful lives specified in the Schedule II of the Companies Act, 2013 for the actual period of the usage of the assets on prorate basis, with Plant & Machinery considered to be coming under the category of “manufacture of pharmaceuticals and chemicals” accordance with clauses 1 & 2 of Section 123 of the Companies Act, 2013.

H) Inventories:

Raw materials, packing materials, stores, spares, consumables are valued at cost, after providing for obsolescence. Work-in-process is valued at cost of raw materials and proportionate overheads. Finished goods are valued at lower of the cost or market value/net realizable value. Cost includes all charges incurred in relation to the goods.

Net Realizable Value (NRV) is the estimated selling price in the ordinary course of the business, less the estimated costs of completion and the estimated costs necessary to make the sale. Cost of inventories comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost of all categories of inventory is determined using weighted average cost method.

I) Cash Flow Statement:

Cash Flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating investing and financing activities of the company are segregated.

J) Research & Development Expenditure

It is the policy of the company to transfer the Research & Development Expenditure on capital items to assets and depreciation is charged thereon accordingly at the applicable rates and Revenue expenditure on Research and development is charged off to Profit & Loss in the year in which it is incurred.

K) Foreign Currency Transactions:

Foreign currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the statement of profit and loss account. Non-monetary assets and non-monetary liabilities to be denominated in foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities to be denominated in foreign currency are measured at historical cost and are translated at the exchange rate prevalent at the date of transaction.

Revenue, expense and cash flow items denominated in foreign currencies are translated using exchange rate in effect on the date of transaction. Transaction gain or loss realized upon settlements of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.

L) Employee Benefits:

Contributions to defined contribution retirement benefit schemes are generally recognized as an expense when employees have rendered services entitling them to contributions. Accordingly company provided for payment of Gratuity. However, the company has not made any contribution/deposited the money to the employees towards gratuity liability and has made only a provision in this regard. The provision made or calculated is as per the assessment of the management, but not as per the actuarial valuation as required under the Indian Accounting Standard on Employee Benefits.

M) Earnings per Share:

Basic earnings per share are computed by dividing the net profit after tax available to Equity Share holders by the weighted average number of equity shares outstanding during the period.

N) Income Tax Expense :

Income tax expense comprises of current tax.

(a) Current Tax:

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the Company. As the company has accumulated losses as on 31-03-2018 under the Income Tax Act, 1961 the tax calculation under the Minimum Alternative Tax is made and provided for.

(b) Deferred Tax:

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. However the company is having brought forward losses under income tax Act, 1961. Hence there would arise a deferred tax asset, and on conservative principle, the same is not recognized.

O) Impairment of Assets:

The Company assesses, from year to year, as to whether there is any indication that an asset is impaired. However, in the opinion of the management, there has been no impairment loss during the year.

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Mar 31, 2014

A) Basis of preparation :

The financial statements of Everest Organics Limited have been prepared and presented in accordance with Accounting Principles (IGAAP) generally accepted in India. IGAAP comprises accounting standards notified by the Central Government of India under Section 211 (3C) of the Companies Act, 1956, other pronouncements of Institute of Chartered Accountants of India, the relevant provisions of Companies Act, 1956 and guidelines issued by Securities and Exchange Board of India (SEBI). The financial statements are presented in Indian rupees rounded off to the nearest rupee

b) Use of estimates

The preparation of the financial statements in conformity with IGAAP requires management to make estimates of useful life of tangible and intangible assets, assessment of recoverable amounts of deferred tax assets, provision for obligations relating to employees, provisions against litigations and impairment of assets. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in the current and future periods and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year.

c). Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from sale of goods is recognized on dispatch (in respect of exports on the date of the bill of lading or airway bill) which coincides with transfer of significant risks and rewards to customer and is net of trade discounts, sales returns and sales tax, where applicable. Excise duty deducted from revenue (gross) is the amount that is included in revenue (gross).

Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

Export entitlements are recognised and shown under the head "other income" when the same is received / right to receive, as per the terms and conditions of the scheme, is established in respect of the exports made and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.

d) Current and non current classification

All the assets and liabilities have been classified as current or non current as per the Company''s normal operating cycle and other criteria set out in the Revised Schedule-VI to the Companies Act, 1956 made applicable from the year ended 31-03-2012.

i) 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 12 months after the reporting date; or

d) 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.

ii) 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 12 months after the reporting date; or

d) the Company does not have an unconditional right to defer settlement of the liability for at least 12 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 / liabilities include the current portion of non current financial assets / liabilities respectively. All other assets / liabilities are classified as non current.

e) Fixed Assets

Tangible fixed assets are carried at the historical cost of acquisition or construction less accumulated depreciation. The cost of tangible fixed assets includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets.

Borrowing costs directly attributable to acquisition or construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalised. Borrowing costs are interest and other costs incurred by the Company in connection with the borrowing of funds.

Subsequent expenditure related to an item of tangible fixed asset is capitalised only if it increases the future benefits from the existing assets beyond its previously assessed standards of performance. However, during the year there is no such interest expenditure which is capitalized.

Advances paid towards acquisition of tangible fixed assets outstanding at each balance sheet date are shown under short-term loans and advances. Cost of assets not ready for intended use, as on the balance sheet date, is shown as capital work-in-progress.

Gains or losses from disposal of tangible fixed assets are recognised in the statement of profit and loss.

f) Depreciation :

Depreciation on fixed assets is provided on the basis of straight line method at the rates provided for in the Schedule - XIV of the Companies Act, 1956 for the actual period of the usage of the assets, with Plant & Machinery considered to be coming under the category of "continuous processing machinery".

g) Inventories :

Raw materials are valued at the lower of the cost or market value. Work-in-process is valued at cost of raw materials and proportionate overheads. Finished goods are valued at lower of the cost or market value/net realizable value. Cost includes all charges incurred in relation to the goods.

Net realisable value (NRV) is the estimated selling price in the ordinary course of the business, less the estimated costs of completion and the estimated costs necessary to make the sale. Cost of inventories comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost of all categories of inventory is determined using weighted average cost method.

h) Research & Development Expenditure

It is the policy of the company to transfer the Research & Development Expenditure on capital items to assets and depreciation is charged thereon accordingly at the applicable rates and Revenue expenditure on Research and development is charged off to Profit & Loss in the year in which it is incurred.

i)Employee Benefits :

Contributions to defined contribution retirement benefit schemes are generally recognized as an expense when employees have rendered services entitling them to contributions. Accordingly company provided for payment of Gratuity. However, the company has not provided for leave encashment of about Rs.22.81 lakhs as at 31-03-2014 (previous year Rs.17.27 lakhs). The company has not made any contribution/deposited the money to the employees towards gratuity liability and has made only a provision in this regard. The provision made or calculated is as per the assessment of the management, but not as per the actuarial valuation as required under AS-15 on Employee Benefits.

j) Income Tax Expense :

Income tax expense comprises of current tax and deferred tax charge or credit.

A) Current Tax :

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the Company. As the company has accumulated losses as on 31-03-2014 under the Income Tax Act, the tax calculation under the Minimum Alternative Tax is made and provided for.

B) Deferred Tax :

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. However the company is having significant brought forward losses. Hence there would arise a deferred tax asset and on conservative principle, the same is not recognized.

k) Impairment of Assets :

The Company assesses, from year to year, as to whether there is any indication that an asset is impaired. However, in the opinion of the management, based on engineer''s valuation report, there has been no impairment loss during the year.

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Mar 31, 2012

A) Accounting Assumptions

(i) These Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the company and the accounting standards prescribed by the Institute of Chartered Accountants of India, IFRS as issued by the IASB, as adopted for the first time in India, as applicable for convergence requirements in India, with revenues recognized and expenses accounted for on their accrual including provisions/adjustments for committed obligation and amount determined as payable or receivable during the year.

(ii) Presentation and Disclosure of Financial Statements :

During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

b) Fixed Assets

Fixed Assets are stated at historical cost of acquisition net of CENVAT, net of APVAT, which is inclusive of freight, installation charges, duties and incidental expenses and the proportionate expenditure.

c) Depreciation

Depreciation on fixed assets is provided on the basis of straight line method at the rates provided for in the Schedule - XIV of the Companies Act, 1956 for the actual period of the usage of the assets, with Plant & Machinery considered to be coming under the category of continuous processing machinery.

d) Inventories

Raw materials are valued at the lower of the cost or market value. Work-in-process is valued at cost of raw materials and proportionate overheads. Finished goods are valued at lower of the cost or market value/net realizable value. Cost includes all charges incurred in relation to the goods.

e) Research & Development Expenditure

It is the policy of the company to transfer the Research & Development Expenditure on capital items to assets and depreciation is charged thereon accordingly at the applicable' rates and Revenue expenditure on Research and development is charged off to Profit & Loss in the year in which it is incurred. During the year the Company has not incurred expenditure of capital nature oh R&D.

f) Employee Benefits:

Contributions to defined contribution retirement benefit schemes are generally recognized as an expense when employees have rendered services entitling them to contributions. Accordingly company provided for payment of Gratuity. However, the company has not provided for leave encashment of Rs. 15,38,047/-. The company has not made any contribution to these employee benefits.

g) Impairment of Assets

The Company assesses, from year to year, as to whether there is any indication that an asset is impaired. However the management, based on engineer's valuation report, states that there has been no impairment loss during the year.

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Mar 31, 2011

A) Accounting Assumptions

These Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the company and the accounting standards prescribed by the Institute of Chartered Accountants of India with revenues recognized and expenses accounted for on their accrual including provisions/ adjustments for committed obligation and amount determined as payable or receivable during the year.

b) Fixed Assets

Fixed Assets are stated at historical cost of acquisition net of CENVAT, net of APVAT, which is inclusive of freight, installation charges, duties and incidental expenses and the proportionate expenditure and interest incurred during the installation period capitalized.

c) Depreciation

Depreciation on fixed assets is provided on the basis of straight line method at the rates provided for in the Schedule - XIV of the Companies Act, 1956 for the actual period of the usage of the assets, with Plant & Machinery being treated as continuous processing machinery.

d) Inventories

Raw materials are valued at the lower of the cost or market value. Work-in-process is valued at cost of raw materials and proportionate overheads. Finished goods are valued at lower of the cost or market value/net realizable value. Cost includes all charges incurred in relation to the goods.

e) Research & Development Expenditure

It is the policy of the company to transfer the Research & Development Expenditure on capital items to assets and depreciation is charged thereon accordingly at the applicable rates and Revenue expenditure on Research and development is charged off to Profit & Loss in the year in which it is incurred. During the year the Company has not incurred expenditure of capital nature on R&D.

f) Employee Benefits :

Contributions to defined contribution retirement benefit schemes are generally recognized as an expense when employees have rendered services entitling them to contributions. Accordingly company provided for payment of Gratuity. However, the company has not provided for leave encashment. The company has not made any contribution to these employee benefits.

g) Impairment of Assets

The Company assesses, from time to time, as to whether there is any indication that an asset is impaired. However the management states that there has been no impairment loss during the year.

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Mar 31, 2010

A) Accounting Assumptions

These Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the company and the accounting standards prescribed by the Institute of Chartered Accountants of India with revenues recognized and expenses accounted for on their accrual including provisions/ adjustments for committed obligation and amount determined as payable or receivable during the year.

b) Fixed Assets

Fixed Assets are stated at historical cost of acquisition net of CENVAT, net of APVAT, which is inclusive of freight, installation charges, duties and incidental expenses and the proportionate expenditure and interest incurred during the installation period capitalized.

c) Depreciation

Depreciation on fixed assets is provided on the basis of straight line method at the rates provided for in the Schedule - XIV of the Companies Act, 1956 for the actual period of the usage of the assets, with Plant & Machinery being treated as continuous processing machinery.

d) Inventories

Raw materials are valued at the lower of the cost or market value. Work-in-process is j valued at cost of raw materials and proportionate overheads. Finished goods are valued at lower of the cost or market value/net realizable value. Cost includes all charges incurred in relation to the goods.

e) Research & Development Expenditure

It is the policy of the company to transfer the Research & Development Expenditure on capital items to assets and depreciation is charged there on accordingly at the applicable rates and Revenue expenditure on Research and development is charged off to Profit & Loss in the year in which it is incurred. During the year the Company has not incurred expenditure of capital nature on R&D.

t) Employee Benefits:

Contributions to defined contribution retirement benefit schemes are generally recognized as an expense when employees have rendered services entitling them to contributions. Accordingly company provided for payment of Gratuity. However, the company has not provided for leave encashment. The company has not made any contribution to these employee benefits:

g) Impairment of Assets :

The Company assesses, from time to time, as to whether there is any indication that an asset is impaired. However the management states that there has been no impairment loss during the year.