Accounting Policies of KMG Milk Food Ltd. Company

Mar 31, 2025

b. Rights, preferences and restrictions attached to equity shares

The company has a single class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. Accordingly, all equity shares rank equally with regard to dividends and share in the company’s residual assets. In the event of liquidation of the company, the holders of equity shares will be entitled to receive residual assets of the company, after distribution of all preferential amounts in proportion to the number of equity shares held.

Note-27: Lease

Operating lease: Company as lessee

The Company has not entered into any operating leases for office premises, rentals during for the year.

Operating lease: Company as lessor

At the inception of the lease the Company classifies each of its leases as either an operating leases or a finance lease. The Company recognises lease payments received under operating leases as income on a straight-line basis over lease term.

Lease income recognised in the statement of profit and loss duringthe period ended 31st March, 2025 is Rs.9600000 (March 31, 2024: Rs. 9300000 (Refer note no. 17)

Note-28: Corporate Social Responsibility

A company having: (i) a net worth of Rupees 500 crore or more; (ii) a turnover of Rupees 1000 crore or more; or (iii) a net profit of Rupees 5 crore or more, is required to comply with the CSR provisions specified under Section 135 of the Companies Act, 2013. As the company is not satisfying the requirements as prescribed under section 135, hence, the company is not liable to make any provision.

Note-30: Borrowings secured against current assets

The Company has borrowed a loan against Rent Receivables from HDFC Bank amounting Rs.6 Crore vide Sanction Letter dated 08/02/2024 against security of Rent Receivables during the year. The said charge has been Registered with Registrar of Companies vide Charge ID no. 100909601

Note-31: Loans or Advances disclosures

During the year company does not have granted any Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

Note-32:Contigent Liabilities

a. No provision has been made in the account for doubtful debts and advances. These all are considered by the management as recoverable.

b. As per the VKS Scheme of the Government of Haryana through HLDB, Panchkula vide Notification No. 4250 (CFMS)-AH-4-2024/4746 dated 14.08.2024, the following liabilities were finalized:

Interest: ^1,27,89,609.00

Milk Cess: ^47,65,000.00

Total Payable: ^1,75,54,609.00

A provision amounting to ^1,37,91,250.00 had already been made in the books of accounts in respect of these dues.

In accordance with legal provisions, this provision was written off.

The remaining balance amount was settled by HDFC Bank, with:

50% paid on 10th September 2024 Remaining 50% paid on 11th November 2024

This adjustment resulted in a significant negative impact on the net profit of the entity for the financial year, primarily due to the difference between the provision made and the final liability paid.

(A) The pending court cases against and for the company is as under:

1. Company V/s Shree Ganesh Trading Co. Kurukshetra, Kurukshetra Court for Rs 128693 Interest Court cases for recovery u/s 138

1. Company vs. J Rai Milk Food Industry, Jalandhar in the Kurukshetra Court, Haryana for Rs. 2,04,00,000/-Cases under MSME

1) In the matter of Company vs. Rana Milk Food Pvt. Ltd., in the council Micro and Small Enterprises Facilitation Council (MSEFC) for recovery of due amount Rs. 21,10,000/

2) I n matter of Company vs. Creamy Dairy Industries Pvt. Ltd., in the council Micro and Small Enterprises Facilitation Council (MSEFC) for recovery of due amount Rs. 15,88,920/-.

Note-33 Other Statutory Compliance

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property

(ii) The Company do not have any transactions with companies struck off.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year

(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries), or

b. provide any guarantee, security or the I ike to or on behalf of the Ultimate Beneficiaries

(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries),or

b. provide any guarantee, security or the like on behalf ofthe Ultimate Beneficiaries.

(vii) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(viii) During the previous year ended 31st March, 2021 the Central Government has published The Code on Social Security, 2020 and Industrial Relations Code, 2020 ("the Codes") in the Gazette of India, inter alia, subsuming various existing labour and industrial laws which deals with employees related benefits including post employment. The effective date of the code and the rules are yet to be notified. The impact of the legislative changes, if any, will be assessed and recognised post notification of the relevant provisions.

Note-34: There are no subsequent event observed after the reporting period which have the material impact on the company''s operations.

Note-35: Significant accounting policies and practices adopted by the Company are disclosed in the statement annexed to these financial statements as Annexure I.

Note-36: Previous year figures have been regrouped / reclassified, where necessary, to confirm to this year''s classification.

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Mar 31, 2024

Note-30: Borrowings secured against current assets

The Company has borrowed a loan against Rent Receivables from HDFC Bank amounting Rs.6 Crore vide Sanction Letter dated 08/02/2024 Out of which Rs. 30000000 has been disbursed upto 31.03.2024 against security of Rent Receivables during the year. The said charge has been Registered with Registrar of Companies vide Charge ID no. 100909601

Note-31: Loans or Advances disclosures

During the year company does not have granted any Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

Note-32:Contigent Liabilities

a. No provision has been made in the account for doubtful debts and advances. These all are considered by the management as recoverable.

b. Company has received the notice from Semen Bank Officer/Haryana Live Stock Development Board (HLSD), Pehowa, Harayana dated 05.04.2018 regarding payment of cess of Rs. 71,3164397/- Including Interest of Rs 69,79,07,522/- for the period 09.09.2001 to 31.03.2018. Company has applied for OTS Scheme with Haryana Live Stock Development Board during the month of Nov. 2019 but as per the information received by the company HLSD Board has rejected the appliaction. However company has also filed the another application for waving off interest which is still is in consideration by the board.

(A) The pending court cases against and for the company is as under:

1. In the matter of Semen Bank Officer/Haryana Live Stock Development Board, Pehowa, Harayana(Milk Cess) vs. Company of Rs. 71,3164397/- Including Interest of Rs 69,79,07,522/-

2. In the matter of Company vs Hitkari Industries Ltd in the Karkadoma Court for Rs.185000 123671/-Delhi.

3. Company V/s Shree Ganesh Trading Co. Kurukshetra, Kurukshetra Court for Rs 128693 lnterest Court cases for recovery u/s 138

1. In the matter of Company vs. Baldev Bhui in the Karkadoma Court for Rs.1,30,000/- Delhi.

2. In the matter of Company vs. Prem Prakash in the Karkadoma Court for Rs.90,000 67,000/- Delhi.

3. Company vs. J Rai Milk Food Industry, Jalandhar in the Kurukshetra Court, Haryana for Rs. 2,04,00,000/-

Cases under MSME

1) In the matter of Company vs. Rana Milk Food Pvt. Ltd., in the council Micro and Small Enterprises Facilitation Council (MSEFC) for recovery of due amount Rs. 21,10,000/

2) 1 n matter of Company vs. Creamy Dairy Industries Pvt. Ltd., in the council Micro and Small Enterprises Facilitation Council (MSEFC) for recovery of due amount Rs. 15,88,920/-.

Note-33 Other Statutory Compliance

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property

(ii) The Company do not have any transactions with companies struck off.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year

(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries), or

b. provide any guarantee, security or thelike to or on behalf of the Ultimate Beneficiaries

(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries),or

b. provide any guarantee, security or the like on behalf ofthe Ultimate Beneficiaries.

(vii) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(viii) During the previous year ended 31st March, 2021 the Central Government has published The Code on Social Security, 2020 and Industrial Relations Code, 2020 ("the Codes") in the Gazette of India, inter alia, subsuming various existing labour and industrial laws which deals with employees related benefits including post employment. The effective date of the code and the rules are yet to be notified. The impact of the legislative changes, if any, will be assessed and recognised post notification ofthe relevant provisions.

Note-34: There are no subsequent event observed after the reporting period which have the material impact on the company''s operations.

Note-35: Significant accounting policies and practices adopted by the Company are disclosed in the statement annexed to these financial statements as Annexure I.

Note-36: Previous year figures have been regrouped / reclassified, where necessary, to confirm to this year''s classification.

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Mar 31, 2015

1. BASIS OF PREPARATION: -

These financial statements have been prepared on in accordance with the generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material aspects, 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.

2. USE OF ESTIMATES :-

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

3. FIXED ASSETS: -

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses if any. The cost comprises purchase price, borrowing cost if Capitalization criteria are met and directly attributable cost of bringing the assets to its working condition for the intended use.

Subsequent expenditure related to an item of fixed assets is added to its book value only if it is increases the future benefits from the exiting assets beyond tits previously assessed standard of performance.

All other expenses on existing fixed assets, including day to day repair & maintenance expenditure and cost of replacing parts are charged to the statement of P&L for the period during which such expenses are incurred.

DEPRECIATION ON TANGIBLE FIXED ASSETS:- Depreciation on fixed assets is calculated on SLM using the rates arrived at based on the useful as per Companies Act, 2013. The company has used the following useful lives to provide deprecation on its fixed assets:-

Till the year ended 31st march 2014 Schedule XIV to the Companies Act 1956, prescribed requirements concerning depreciation of Fixed Assets. From the Current year Schedule XIV has been replaced by Schedule II to the Companies Act, 2013. The applicability of Schedule to has resulted in the following Changes relates to depreciation of Assets, unless Stated otherwise the impact mentioned in the current year is likely to hold good for the futures years till the year ended 31st march 2014 , depreciation rates prescribed under Schedule XIV were treated as minimum rates and the company was not allowed to charge depreciation at lowers rates even if such lower rates were justified by the estimated useful lives of the assets, Schedule II of the companies Act,2013 prescribes the useful lives of the fixed assets which, in many cases, are different from the lives prescribe 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 the difference is disclosed in the financial statements.

4. REVENUE RECOGNITION: -

(a) Lease income from operating lease shall be recognized in income on a straight-line basis over the lease period, unless another systematic basis is more representative of the time pattern in which use benefit derived from the leased asset is diminished.

(b) Revenue in respect of other income is accounted on accrual basis except claim received/paid.

5. INVESTMENTS: -

Long term investments are stated at cost. Provision is made to recognize any diminution in value, other than that of a temporary nature.

6. EMPLOYEES BENEFITS: -

(A) Contribution to defined schemes such as provident fund, superannuating/pension benefits, gratuity employee's state insurance scheme is charged as incurred on accrual basis. These are in accordance with the respective Act's.

(B) Leave Encashment: -

As per the employment policy of the company the employees avail their annual Leave and provision for leave encashment is made on the basis of unveiled leave to the credit of employees.

(C) GRATUITY: -

In accordance with the Payment of Gratuity Act, 1972, the company provides for gratuity covering all employees. The plan, subject to the above Act, provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment of an amount based in the respective employee's salary and the tenure of employment.

7. BORROWING COSTS :-

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to revenue.

8. EARNING PER SHARE :-

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average of no of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average no of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

9. PROVISIONS, CONTINGENT LIABILITIES AND CONTIGENT ASSETS:-

A provision is recognised when there is a present obligation as a result of a past event, that probably requires an outflow of resources and a reliable estimate can be made to settle the amount of obligation. Provision is not discounted to its present value and is determined based on the last estimate required to settle the obligation at the year end. These are reviewed at each year end and adjusted to reflect the best current estimate. Contingent liabilities are not recognised but disclosed in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.

10. TAXATION :-

Income-tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of deferred tax assets is reviewed to reassure realisation. Minimum Alternative Tax credit is recognised as an asset only when and to the extant there is convincing evidence that the company will pay normal tax during the specified period.

11. IMPAIRMENT OF ASSETS:-

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

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Mar 31, 2014

Not Available.

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Mar 31, 2013

1. BASIS OF PREPARATION: -

These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under Section 211 (3C) and the other relevant provisions of the Companies Act, 1956.All the assets and liabilities have been classified as current or noncurrent as per the Company''s normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertained its operating cycle to be less than 12 months.

2. USE OF ESTIMATES :-

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

3. FIXED ASSETS: -

(A) Fixed assets are stated at cost after reducing accumulated depreciation until the date of balance sheet. No fixed asset has been revalued in the financial statement.

(B) Depreciation on fixed assets charged on a proportionate basis for all assets purchased and sold during the year is provided using Straight Line Method based on useful lives of assets as estimated. Depreciation is charged at the rates specified in Schedule XIV of companies Act, 1956.

(C) Depreciation @100% provided on fixed Assets on value of Rs 5000/- or less.

4. REVENUE RECOGNITION: -

(a) All revenue is accounted on accrual basis except claim received/paid.

(b) Lease income from operating lease shall be recognized in income on a straight-line basis over the lease period, unless another systematic basis is more representative of the time pattern in which use benefit derived from the leased asset is diminished Revenue in respect of other income is accounted on accrual basis except claim received/paid.

5. INVESTMENTS: -

Long- term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long-term investments. Current investments are carried at the lower of cost and fair value.

6. VALUATION OF INVENTORIES: -

The Stocks of raw materials, stores and spares and finished goods have been valued at cost or market price whichever is lower. The cost of finished goods and process stocks is determined considering material, labor and related overheads and that of raw materials and stores and spares at purchases cost or market price whichever is lower

7. FOREIGN EXCHANGE TRANSACTION: -

Foreign exchange transaction are recorded using the exchange rates prevailing on the dates of the respective transaction exchange difference arising on foreign exchange transaction settled during the period are recognized in the profit and loss account except that exchange differences related to acquisition of fixed assets are adjusted in carrying amount of the related fixed assets.

8. EMPLOYEES BENEFITS: -

(A) Contribution to defined schemes such as provident fund, superannuating/pension benefits, gratuity employee''s state insurance scheme is charged as incurred on accrual basis. These are in accordance with the respective Act''s.

(B) Leave Encashment: -

As per the employment policy of the company the employees avail their annual Leave and provision for leave encashment is made on the basis of unveiled leave to the credit of employees.

(C) GRATUITY: -

In accordance with the Payment of Gratuity Act, 1972, the company provides for gratuity covering all employees. The plan, subject to the above Act, provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment of an amount based in the respective employee''s salary and the tenure of employment. The company estimates its liability as of each balance sheet date based on an actuarial valuation.

9 SEGMENT REPORTING

The company is engaged in the business of trading & manufacturing of milk products which constitutes one single primary segment. Further there is no reportable secondary segment i.e. geographical segment.

10. BORROWING COSTS :-

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to revenue.

11. CASH FLOW STATEMENT

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

12. PROVISIONS, CONTINGENT LIABILITIES AND CONTIGENT ASSETS:-

A provision is recognised when there is a present obligation as a result of a past event, that probably requires an outflow of resources and a reliable estimate can be made to settle the amount of obligation. Provision is not discounted to its present value and is determined based on the last estimate required to settle the obligation at the year end. These are reviewed at each year end and adjusted to reflect the best current estimate. Contingent liabilities are not recognised but disclosed in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.

13. TAXATION :-

Income-tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of deferred tax assets is reviewed to reassure realisation.

Minimum Alternative Tax credit is recognised as an asset only when and to the extant there is convincing evidence that the company will pay normal tax during the specified period.

14. IMPAIRMENT OF ASSETS:

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

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Mar 31, 2012

A BASIS OF PREPARATION: -

These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under Section 211 (3C) and the other relevant provisions of the Companies Act, 1956.All the assets and liabilities have been classified as current or noncurrent as per the Company's normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertained its operating cycle to be less than 12 months.

B USE OF ESTIMATES

The preparation of Financial Statements requires estimates & assumptions to be made that effect the reported amount of assets & liability on the date of financial statements and the reported amount of revenues & expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known materialized

C FIXED ASSETS: -

a. Fixed assets are stated at cost after reducing accumulated depreciation until the date of balance sheet. No fixed asset has been revalued in the financial statement.

b. Depreciation on fixed assets charged on a proportionate basis for all assets purchased and sold during the year is provided using Straight Line Method based on useful lives of assets as estimated. Depreciation is charged at the rates specified in Schedule XIV of companies Act, 1956.

c. The depreciation on leased assets charged of normal depreciation rates specified in Schedule XIV of companies Act, 1956

D VALUATION OF INVENTORIES: -

The Stocks of raw materials, stores and spares and finished goods have been valued at cost or market price whichever is lower. The cost of finished goods and process stocks is determined considering material, labor and related overheads and that of raw materials and stores and spares at purchases cost or market price whichever is lower

E REVENUE RECOGNITION: -

(a) All revenue is accounted on accrual basis except claim received/paid.

(b) Lease income from operating lease shall be recognized in income on a straight-line basis over the lease period, unless another systematic basis is more representative of the time pattern in which use benefit derived from the leased asset is diminished.

F INVESTMENTS: -

Long- term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long-term investments. Current investments are carried at the lower of cost and fair value.

G EMPLOYEES BENEFITS: -

Employees benefits include provident fund & gratuity fund, Gratuity, leave encashment & other retirement benefits is to be provided on actual payment basis.

H INCOME TAX: -

Income tax comprises the current year provision and net change in the deferred tax assets or liabilities in the year. Deferred Tax assets or liabilities are recognized for the future tax on consequences of timing (temporary) difference between the carrying value of assets and liabilities and then respective tax basis and operated loss carried forward.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the timing difference are expected to be recovered or settled.

I SEGMENT REPORTING

The company is engaged in the business of trading & manufacturing of milk products which constitutes one single primary segment. Further there is no reportable secondary segment i.e. geographical segment.

J CASH FLOW STATEMENT

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

K CONTINGENT LIABILITIES

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and its probable that there will be an outflow of resources.

L Borrowing Cost

Interest and other borrowing costs attributable to qualifying assets are capitalised. Other interest and borrowing costs are charged to revenue.

M IMPAIRMENT OF ASSETS:

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

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Mar 31, 2011

1. BASIS OF PREPARATION: -

The financial statements are prepared under historical cost convention in accordance with accounting standards issued by ICAI and provision of Companies Act. The different accounting policies related to treatment of retirement benefits, valuation of fixed assets, according to the Balance Sheet, are being followed. The company generally follows mercantile system of accounting on accrual basis.

2. FIXED ASSETS: -

(A) Fixed assets are stated at cost after reducing accumulated depreciation until the date of balance sheet. No fixed asset has been revalued in the financial statement.

(B) Depreciation on fixed assets charged on a proportionate basis for all assets purchased and sold during the year is provided using Straight Line Method based on useful lives of assets as estimated. Depreciation is charged at the rates specified in Schedule XIV of companies Act, 1956.

3. VALUATION OF INVENTORIES:-

The Stocks of raw materials, stores and spares and finished goods have been valued at cost or market price whichever is lower. The cost of finished goods and process stocks is determined considering material, labor and related overheads and that of raw materials ands stores and spares at purchases cost or marker price whichever is lower.

4. REVENUE RECOGNITION: -

All revenue is accounted on accrual basis except claim received/paid.

5. INVESTMENTS: -

Long- term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long-term investments. Current investments are carried at the lower of cost and fair value.

6. EMPLOYEES BENEFITS:-

Contribution to defined schemes such as provident fund, superannuating/pension benefits, gratuity, Employees state insurance scheme are charged as incurred on accrual basis. These are in accordance with the respective Act's.

LEAVE ENCASHMENT: -

As per the employment policy of the company the employees avail there annual leave and provision for leave encashment is made on the basis of unveiled leave to the credit of employees.

GRATUITY: -

In accordance with the Payment of Gratuity Act, 1972, the company provides for gratuity covering all employees. The plan, subject to the above Act, provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment of an amount based in the respective employee's salary and the tenure of employment. The company estimates its liability as of each balance sheet date based on an actuarial valuation.

7. EARNING PER SHARE: -

In accordance with the accounting standard 20 (AS-20) "Earning Per Share" issued by the Institute of Chartered Accountants of India, basic earning per share is computed using the weighted average number of share outstanding during the period.

8. INCOME TAX:- ' %

Income tax comprises the current year provision and net change in the deferred tax assets or liabilities in the year. Deferred Tax assets or liabilities are recognized for the future tax on consequences of timing (temporary) difference between the carrying value of assets and liabilities and then respective tax basis and operated loss carried forward.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the timing difference are expected to be recovered or settled.

9. DISCONTINUING OPERATIONS:-

The company has not discontinued operations during the Financial Year under review.

10. INTERIM REPORTING: -

In the interim financial statements, the company informs that the same accounting policies followed as going Concern.

11. INTANGIBLE ASSETS: -

There are no intangible assets in the company during the financial year under review.

12. RELATED PARTY DISCLOURES: - Particulars of transactions with related party The following is a summary of significant related party transaction: -

13. PARTICULARS OF MANAGERIAL REMUNERATION

No remuneration paid to managerial personnel during the financial year and Previous Year.

14. CONTINGENT LIABILITIES

1. No provision has been made in the account for doubtful debts and advances. These all are considered by the management as recoverable.

2. The pending court cases against and for the company is as under:

i. In the matter of M/s Goel Agencies Pvt. Ltd/M/s Fair Deal Agencies, Ludhiana vs. Company/ Shri Basudev Garg/Smt. Mithlesh Garg for Rs.6, 00,528.15 - Ludhiana.

II. In the matter of Semen Bank Officer/Haryana Live Stock Development Board, Pehowa, Harayana (Milk Cess) vs. Company for Rs.14,01,18,799/(Including Interest of Rs 11,74,69,424/- Chandigarh.

III. In the matter of Company vs. Baldev Bhui in the Karkadoma Court for Rs.l, 30,000/- Delhi.

IV. In the matter of Company vs. Prem Prakash in the Karkadoma Court for Rs.90, 000 67,000/- Delhi.

V. In the matter of Company vs. Jindal Trading Co. in the Karkadoma Court for Rs.8400/- Delhi.

VI. In the matter of Company vs Hitkari Industries Ltd in the Karkadoma Court for Rs.l, 85, 000 123671/- Delhi.

VII. In the matter of Company vs. Indian Feeds & Fodder in the Kamal Court for Rs 65000/-plus Interest, Kamal VII. In the matter of Company vs. Paradise Plastopack Pvt ltd in the court of Kurukshetra, Haryana and Rohini, Delhi for Rs2,75,524/-

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Mar 31, 2010

1. BASIS OF PREPARATION: -

The financial statements are prepared under historical cost convention in accordance with accounting standards issued by ICAI and provision of Companies Act. The different accounting policies related to treatment of retirement benefits, valuation of fixed assets, according to the Balance Sheet, are being followed. The company generally follows mercantile system of accounting on accrual basis.

2. FIXED ASSETS:

(A) Fixed assets are stated at cost after reducing accumulated depreciation until the date of balance sheet. No fixed asset has been revalued in the financial statement.

(B) Depreciation on fixed assets charged on a proportionate basis for all assets purchased and sold during the year is provided using Straight Line Method based on useful lives of assets as estimated. Depreciation is charged at the rates specified in Schedule XIV of companies Act, 1956,

3. VALUATION OF INVENTORIES: -

The Stocks of raw materials, stores and spares and finished goods have been valued at cost or market price whichever is lower. The cost of Finished goods and process slocks is determined considering material, labor and related overheads and that of raw materials and stores and spares at purchases cost or marker price whichever is lower.

4. REVENUE RECOGNITION: -

All revenue is accounted on accrual basis except claim received/paid.

5. INVESTMENTS: -

Long- term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long-term investments. Current investments are carried at the lower of cost and fair value.

6. EMPLOYEES BENEFITS: -

Contribution to defined schemes such as provident fund, superannuating/pension benefits, gratuity, Employees state insurance scheme arc charged as incurred on accrual basis. These are in accordance with the respective Act's,

LEAVE ENCASHMENT: -

As per the employment policy of the company the employees avail there annual leave and provision for

leave encashment is made on the basis of unavailed leave to the credit of employees.

GRATUITY: -

In accordance with the Payment of Gratuity Act, 1972, the company provides for gratuity covering ail employees. The plan, subject to the above Act, provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment of an amount based in the respective employee's salary and the tenure of employment. The company estimates its liability as of each balance sheet date based on an actuarial valuation.

7. EARNING PER SHARE: -

In accordance with the accounting standard 20 (AS-20) "Earning Per Share" issued by the Institute of Chartered Accountants of India, basic earning per share is computed using the weighted average number of share outstanding during the period.

Income tax comprises the current year provision and net change in the deferred tax assets or liabilities in the year. Deferred Tax assets or liabilities are recognized for the future tax on consequences of timing (temporary) difference between the carrying value of assets and liabilities and then respective tax basis and operated loss carried forward.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the timing difference are expected to be recovered or settled.

9. DISCONTINUING OPERATIONS: -

The company has not discontinued operations during the Financial Year under review.

10. INTERIM REPORTING: -

In the interim financial statements, the company informs that the same accounting policies followed as going Concern.

11. INTANGIBLE ASSETS:-

There are no intangible assets in the company during the financial year under review.