Accounting Policies of Kothari Industrial Corporation Ltd. Company

Mar 31, 2025

2. SIGNIFICANT ACCOUNTING POLICIES :

2.1 Basis of preparation of the Ind AS Financial statements

(a) Statement of Compliance

These financial statements have been prepared in accordance with the generally accepted accounting
principles in India and have complied in all material respects with the Indian Accounting Standards(“Ind
AS”) notified under Section 133 of the Companies Act, 2013 (the Act), the Companies (Indian Accounting
Standards) Rules, 2015 and Companies Indian Accounting Standards) Amendment Rules, 2016 as
applicable and also complied with other relevant provisions of the Act and Interpretations issued by the
Ind AS Transition Facilitation Group (ITFG) applicable to Companies reporting under Ind As and additional
disclosures required by SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Financial statements up to the a year ended March 31,2017 which were prepared in accordance with
the accounting standard notified under the companies (accounting standard) Rules, 2006 (as amended)
and other relevant provisions of the Act. Have been reinstated as per Ind As.

The Company’s Financial Statements are presented in Indian Rupees (C), which is also its functional
currency and all values are rounded to the nearest lakhs, except when otherwise indicated.

(b) Basis of measurement

These financial statements have been prepared under historical cost convention except for certain assets
and liabilities as stated in the respective policies, which have been measured at fair value.

(c) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current
classification. An asset is treated as current when it is:

i. Expected to be realized or intended to be sold or consumed in normal operating cycle

ii. Held primarily for the purpose of trading

iii. Expected to be realized within twelve months after the reporting period, or

iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

i. It is expected to be settled in normal operating cycle

ii. It is held primarily for the purpose of trading

iii. It is due to be settled within twelve months after the reporting period, or

iv. There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.

All other liabilities have been classified as non-current.

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

2.2 Use of estimates and judgement

The preparation of financial statement in conformity with the generally accepted accounting principles
requires the management to make judgements, estimates and assumptions that affect the reported amounts
of assets and liabilities as at the balance sheet date, reported amounts of revenue and expenses for the
year and disclosure of contingent liabilities as of the date of balance sheet. The judgement, estimates and
assumptions used in the accompanying financial statements are based upon the management’s evaluation
of the relevant facts and circumstances as of the date financial statements. Actual amounts could differ
from these estimates.

2.3 Significant estimates and judgements

The areas involving significant estimates property and judgements are:

a) Property, Plant and Equipment

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The
useful lives and residual values of Company’s assets are determined by the management at the time the
asset is acquired and reviewed periodically, including at each financial year end. The lives are based on
historical experience with similar assets as well as anticipation of future events, which may impact their
life, such as changes in technical or commercial obsolescence arising from changes or improvements in
production or from a change in market demand of the product or service output of the asset.

Freehold land is carried at cost. All other items of property, plant and equipment including intangibles are
carried at cost less accumulated depreciation/amortization losses, if any.

The cost includes the cost of replacing part of the property, plant and equipment meeting the recognition
criteria and borrowing costs that are directly attributable to the acquisition, construction or production of
a qualifying property, plant and equipment up to the date of commissioning of the assets. In accordance
with Ind AS 16- Property, Plant and Equipment commissioning expenses directly attributable to project
is recognized under Capital Work in Progress (CWIP). Subsequent to initial recognition, property, plant
and equipment other than freehold land are measured at cost less accumulated depreciation and any
accumulated impairment losses. The carrying values of property, plant and equipment are reviewed
for impairment when events or changes in circumstances indicate that the carrying value may not be
recoverable.

Intangible Assets (Ind AS 38)

Intangible assets are recognized when it is probable that future economic benefits will flow to the Company
and the cost can be reliably measured.

They are initially measured at cost and subsequently at cost less amortisation and impairment, if any.
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure are recognised in the profit or loss as incurred.
Amortisation is on a straight-line basis over the estimated useful life.Research costs are expensed as
incurred; development costs are capitalized if criteria under Ind AS 38 are met. Assets with indefinite life
or not yet in use are tested annually for impairment.

Depreciation

Depreciation in tangible assets is provided on Written Down Value method and calculated on cost of items
of property, plant and equipment less their estimated residual value over their estimated useful life and
recognised in the statement of profit and loss.

b) Income Taxes

Deferred Tax Assets are recognized for unused tax losses to the extent that it is probable that taxable profit
will be available against which the losses can be utilized. Significant management judgement is required to
determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the
level of future taxable profits together with future tax planning strategies.

The company was having brought forward losses that will be used to setoff against future profit. During
the year company has loss from operating activities and management decided not to create deferred tax
assets for the brought forward loss and unabsorbed depreciation.

c) Defined Benefit Plans

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

d) Interim Financial Reporting (Ind AS 34)

The interim financial results are prepared in accordance with Ind AS 34 - Interim Financial Reporting, as
notified under the Companies Act, 2013. The same accounting policies and methods of computation as
followed in the annual financial statements have been applied. Estimates used are consistent with those
of the previous financial year unless stated otherwise. Interim results are not necessarily indicative of the
full-year performance.

2.4 Investment Property

Property that is held for long-term rental yield or for capital appreciation or both is classified as investment
property. Investment property is carried at cost including related transaction costs less accumulated
depreciation and impairment losses, if any. Subsequent expenditure is included in the asset’s book value
only when it is probable that future economic benefits associated with the item will flow to the Company
and the cost of the item can be measured reliably. all other repairs and maintenance are expensed when
incurred. when a part of an investment property is replaced, the carrying amounts of the replaced part is
derecognized.

2.5 Borrowing Costs

Borrowing costs are interest and other costs (including exchange difference relating to foreign currency
borrowings to the extent that they are regarded as an adjustement to interest costs) incurred in connection
with the borrowing of funds. Borrowing costs directly attributable to production or acquisition or
construction of qualifying assets are capitalized as part of the cost of assets up to the date such assets
are ready for their intended use. Other borrowing costs are recognized as expense in the period in which
they are incurred.

2.6 Impairment

The carrying values of assets/cash generating units at each Balance sheet date are annually reviewed for
impairment. If any indication of impairment exits, the recoverable amount of such assets is estimated and
impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if
the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the
greater of the net selling price and their value in use. Value in infuse is arrived at by discounting the future
cash flows to their present value based on an appropriate discount factor. When there is indication that
an impairment loss recognized for an asset in earlier accounting periods no longer exits or may have
decreased such reversal of impairment loss is recognized in the statement of Profit and Loss.

2.7 Foreign Currency translation

i) Functional and presentation currency

The financial statements are presented in Indian Rupee, the national currency of India, which is the
functional currency of the Company.

ii) Transaction and balances
Initial Recognition

Foreign currency transactions are recorded in functional currency using the exchange rate prevailing on
the date of transaction.

Subsequent recognition

As at the reporting date, monetary assets and liabilities denominated in foreign currency are restated at the
closing exchange rates. Exchange differences arising out of actual payment/ realization and from the year
end restatement are recognized in the statement of Profit and Loss.

Forward Contracts

Foreign exchange forward contracts outstanding at the year-end on account of firms commitment /
highly probable forecast transactions are marked to market and the gains / losses, if any, are recognized
in the Statement of Profit and Loss. The Company does not enter into any speculative transactions in
derivatives.

2.8 Inventories

Inventories are valued at cost or net realisable value whichever is less. The cost of inventories includes
expenditure incurred in acquiring the inventories, production or other conversion cost incurred
in bringing them to their present location ans condition. In the case of raw material and stock-in¬
trade cost comprises of cost of purchase, in the case of finished goods and work in progress, cost
includes an appropriate share of production overheads based on normal operating capacity. In
the case of trading invetories, cost comprises the cost of purchase and other incidental costs
incurred in bringing them to their present location and condition. The company values its inventories
using the First-In, First-Out (FIFO) method & its land using the Fair Market Value(Guideline Value).
Net realisable 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. The net realisable value of work in progress
is determined with reference to the selling price of related finished goods.

2.9 Cash and Cash equivalents

Cash and cash equivalents comprise of cash on hand, cash at banks, short-term deposits and short-term
highly liquid investments that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in value.

2.10 Trade receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost, less
provision for impairment.

2.11 Revenue recognition

Revenue is recognized to the extent it is probable that the economic benefits full flow to the Company and
the revenue can be reliably measured, regardless of when 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 has
concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the
revenue arrangements as it had pricing latitude and is also exposed to inventory and credit risks.

Contract Assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer.
If the Company fulfils its performance obligation by transferring goods or services to a customer before
the customer pays consideration or before payment is due, a contract asset is recognized for the earned
consideration that is conditional.

Trade Receivables

A receivable represents the company’s right to an amount of consideration that is unconditional (i.e., only
the passage of time is required before payment of the consideration is due).

Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company
has received consideration (or an amount of consideration is due) from the customer. If a customer pays
consideration before the Company transfers goods or services to the customer, a contract liability is
recognized when the payment is made, or the payment is due (whichever is earlier). Contract Liabilities
in respect of advance from customers is disclosed under “other current liabilities”. Contract liabilities are
recognized as revenue when the Company performs under the contract.

(a) Sale of Goods and Services

Revenue, including subsidy, in respect of sale of goods and services is recognized at a point in time
when control of the goods has transferred or services obligation has been performed, being when the
goods are delivered to the buyer, the buyer has full discretion over the goods or services and there is
no unfulfilled obligation that could affect the buyer’s acceptance of the goods. Revenue (other than
subsidy) from the sales is recognized based on price specified in the contract, net of estimated volume
discount. Amounts disclosed as revenue are net of returns and allowances, trade discounts, rebates,
and goods & services tax (GST). The Company collects GST on behalf of the government and therefore,
these are not economic benefits flowing to the Company. Hence, these are excluded from the revenue.
The Company does not expect to have any contracts where the period between the transfer of the promised
goods or services to the customer and payment by the customer exceeds one year. As a consequence, the
Company does not adjust any of the transaction prices for the time value of money.

(b) Interest Income

Interest income is calculated by applying the effective interest rate to gross carrying amount of a financial
asset except for financial asset that subsequently become credit impaired. In case of credit impaired
financial asset, the effective interest rate is applied to the net carrying amount of the financial assets (after
deduction of the loss allowance).

(c) Dividend

Dividend income is recognized when the Company’s right to receive the payment is established, which is
generally when shareholders approve the dividend.

(d) Insurance Claims

Claims receivable on account of insurance are accounted for to the extent the Company is reasonably
certain of their ultimate collection.

2.12 Lease

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.

A. Company as Lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term
leases and leases of low value assets. The Company recognizes lease liabilities to make lease payments
and right-of use assets representing the right to use the underlying assets.

Right of use assets

The cost of the right-of-use assets comprises the amount of the initial measurement of the lease liability,
any lease payments made at or before the inception date of the lease plus any initial direct costs, less any
lease incentives received. Subsequently, the right-of-use assets is measured at cost less any accumulated
depreciation and accumulated impairment losses, if any. The right-of use assets is depreciated using the
straight-line method from the commencement date over the shorter of lease term or useful life of right-of-
use assets. The Right to use assets are also subject to impairment as described in the polices with respect
to the impairment of non-financial assets.

For lease liabilities at inception, the Company measures the lease liability at the present value of the
lease payments to be made over the lease term. The lease payments are discounted using the interest
rate implicit in the lease, if that rate is readily determined, if that rate is not readily determined, the lease
payments are discounted using the incremental borrowing rate. After the commencement date, the amount
of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made.

The Company recognizes the amount of the re-measurement of lease liability as an adjustment to the
right-of-use assets. Where the carrying amount of the right-of-use assets is reduced to zero and there is a
further reduction in the measurement of the lease liability, the Company recognizes any remaining amount
of the re-measurement in the statement of Profit and loss.

B. Company as Lessor

The leases in which the Company does not transfer substantially all the risks and rewards incidental to
ownership of an asset arc classified as operating Lease. Rental income arising is accounted for on a
straight-line basis over the lease terms and is included in revenue in the statement of profit or loss due to
its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added
to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental
income. Contingent rents are recognized as revenue in the period in which they are earned. During the
year ended 31 March 2020, the Company applied, for the first time, Ind AS 116 Leases retrospectively
with the cumulative effect of initially applying the standard recognized at the date of initial application as an
adjustment to the opening balance of retained earnings {or other component of equity, as appropriate) at
the date of initial application.

C. Nature of the effect of adoption of Ind AS 116.

The Company has lease contracts for Factory and Hotel Business. Before the adoption of Ind AS 116,
the Company classified its leases (as lessor) at the inception date as an operating lease. In an operating
lease, the leased property was not capitalized and the lease receipts/payments were recognized as
rent income in the statement of profit or loss on a straight-line basis over the lease term. Any prepaid
rent and accrued rent were recognized under Prepayments and Trade and other payables, respectively.
Upon adoption of Ind AS 116, the company applied a single recognition and measurement approach for
all leases that it is the lessee, except for short term, leases and leases of low-value assets. The standard
provides specific transition requirements and practical expedients, which has been applied by the company.

2.13 Financial Instrument

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

Government Subsidy relating to income are recognized in the statement of profit and loss over the periods
in which the related costs, for which the grants are intended to compensate are recognized as expenses.
(a) Financial assets
Initial Recognition and Measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded
at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial
asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in
profit or loss. Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the market place (regular way trades) are recognized on the
trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent Measurement
Debt Instruments

Subsequent measurementof debt instruments dependson the Group’s business model formanaging the asset
andthecashflowcharacteristicsoftheasset.Forthepurposesofsubsequentmeasurement,debtinstrumentsare
classified in three categories:

- Debt instruments at amortized cost;

- Debt instruments at fair value through other comprehensive income (FVTOCI); and

- Debt instruments at fair value through profit or loss (FVTPL).

Debt Instruments at Amortized Cost

A debt instrument is measured at the amortized cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the
effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is
included in finance income in the profit or loss. The losses arising from impairment are recognized in the
profit or loss.

Debt Instrument at FVTOCI

A debt instrument is classified as at FVTOCI if both the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling
the financial assets, and

b) The asset’s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting
date at fair value. Fair value movements are recognized in the OCI. However, the Group recognizes interest
income, impairment losses & reversals and foreign exchange gain or loss in the Statement of Profit and
Loss. On derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified
from the equity to the Statement of Profit and Loss. Interest earned while holding FVTOCI debt instruments
is reported as interest income using the EIR method.

Debt Instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for
categorization as at amortized cost or as at FVTOCI, is classified as at FVTPL. In addition, the Group
may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as
at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or
recognition inconsistency (referred to as ‘accounting mismatch’). Debt instruments included within the
FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.
Equity Instruments

- Equity instruments measured at fair value through profit or loss (FVTPL); and

- Equity instruments measured at fair value through other comprehensive income (FVTOCI)
Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
primarily derecognized when:

(a) The rights to receive cash flows from the asset have expired, or

(b) The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement; and either

(i) the Group has transferred substantially all the risks and rewards of the asset, or

(ii) the Group has neither transferred nor retained substantially all the risks and rewards of the asset,
but has transferred control of the asset.

Impairment of Financial Assets

The Group assesses on a forward looking basis the expected credit losses associated with its
assets carried at amortized cost and FVTOCI debt instruments. The impairment methodology applied
depends on whether there has been a significant increase in credit risk since initial recognition.
Assessment of such credit risk is being made on case to case basis based on available information.
For trade receivables only, the Group applies the simplified approach permitted by Ind AS 109 ‘Financial
Instruments’,whichrequiresexpectedlifetimelossestoberecognizedfrominitialrecognitionofthereceivables.
The allowance for doubtful debts/ advances or impairment of assets is made on case to case basis by
considering relevant available information.

(b) Financial Liabilities

Initial Recognition and Measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, as loans and borrowings, as payables, or as derivatives. All financial liabilities are recognized initially
at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction
costs. The Group’s financial liabilities include trade and other payables, loans and borrowings including
redeemable preference shares and derivative financial instruments.

Subsequent Measurement

The measurement of financial liabilities depends on their classification, as described below::

Financial Liabilities at Fair Value through Profit or Loss

Financial liabilities at fair value through profit or loss (FVTPL) include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at FVTPL. Financial liabilities are classified as held
for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes
derivative financial instruments entered into by the Group that are not designated as hedging instruments
in hedge relationships as defined by Ind AS 109 ‘Financial instruments’. Gains or losses on liabilities held
for trading are recognized in the profit or loss.

2.14 Employee benefits / Obligations
(i) Short term obligations

Liabilities for wages and salaries including non monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render their related services are
recognized in respect of employees’ services up to the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current
employee benefit obligations in the Balance Sheet.
ii) Post employment obligations

The Company has the following post employment obligations / plans:

a) Defined benefit plans such as gratuity for its eligible employees; and

b) Defined contribution plan such as provident fund
a) Gratuity:

The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plan is the present
value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets.
The defined benefit obligation is calculated annually by Actuaries using the projected unit credit method.
Actuarial gains or losses are recognized in other comprehensive income. Further, the profit or loss not
include an expected return on plan assets. Further, the profit or loss does not include an expected return
on plan assets. Instead net interest recognized in profit or loss is calculated by applying the discount rate
used to measure the defined benefit obligation to the net defined benefit liability or asset.

Re-measurement gains or losses arising from experience adjustments and changes in actuarial assumption
are recognized in the period in which they occur, directly in other comprehensive income (net of tax).

(b) Provident Fund:

This is a defined contribution plan, and contributions made to the Fund as per the rules of the Company are
charged top rift and loss as and when due. The Company has no further obligations for future provident
fund benefits other than monthly contributions.

2.15 Taxes on Income

Taxes on Income comprise current tax and deferred tax.

The current tax expense for the period is the tax payable on the current period’s taxable income computed at
the applicable income tax rate and is recognized in the statement of profit or loss. Management periodically
evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to
be paid to the tax authorities.

Deferred tax is provided in full, using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is
determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the
reporting period and are expected to apply when the related deferred tax asset is realized or the deferred
tax liability is settled.

Current and deferred tax is recognized in profit and loss, except to the extent that it relates to items
recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in
other comprehensive income or directly in equity, respectively.

---

Mar 31, 2024

1. CORPORATE INFORMATION

Kothari Industrial Corporation Limited (“KICL or “the Company") is a public limited company was incorporated under the provisions of the Indian Companies Act 1956, in July 1, 1970 and is a listed company. The Company is engaged in manufacturing and mixing of fertilizers, providing drone services, engaged in hotel activities, engaged in footwear and leather activities and has a network of distributors in the southern states and has developed a brand value recognized in the market place. The company has planned to develop a Container Terminal at Ennore.

2. SIGNIFICANT ACCOUNTING POLICIES :

2.1 Basis of preparation of standalone Ind AS Financial statements

(a) Statement of Compliance

These financial statements have been prepared in accordance with the generally accepted accounting principles in India and have complied in all material respects with the Indian Accounting Standards(“Ind AS”) notified under Section 133 of the Companies Act, 2013 (the Act), the Companies (Indian Accounting Standards) Rules, 2015 and Companies Indian Accounting Standards) Amendment Rules, 2016 as applicable and also complied with other relevant provisions of the Act and Interpretations issued by the Ind AS Transition Facilitation Group (ITFG) applicable to Companies reporting under Ind As and additional disclosures required by SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Financial statements up to the a year ended March 31,2017 which were prepared in accordance with the accounting standard notified under the companies (accounting standard) Rules, 2006 (as amended) and other relevant provisions of the Act. Have been reinstated as per Ind As.

The Company’s Financial Statements are presented in Indian Rupees (C), which is also its functional currency and all values are rounded to the nearest lakhs, except when otherwise indicated.

(b) Basis of measurement

These financial statements have been prepared under historical cost convention except for certain assets and liabilities as stated in the respective policies, which have been measured at fair value.

(c) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is treated as current when it is:

i. Expected to be realized or intended to be sold or consumed in normal operating cycle

ii. Held primarily for the purpose of trading

iii. Expected to be realized within twelve months after the reporting period, or

iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

i. It is expected to be settled in normal operating cycle

ii. It is held primarily for the purpose of trading

iii. It is due to be settled within twelve months after the reporting period, or

iv. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities have been classified as non-current.

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

2.2 Use of estimates and judgement

The preparation of financial statement in conformity with the generally accepted accounting principles requires the management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities as at the balance sheet date, reported amounts of revenue and expenses for the year and disclosure of contingent liabilities as of the date of balance sheet. The judgement, estimates and assumptions used in the accompanying financial statements are based upon the management’s evaluation of the relevant facts and circumstances as of the date financial statements. Actual amounts could differ from these estimates.

2.3 Significant estimates and judgements

The areas involving significant estimates property and judgements are:

a) Property, Plant and Equipment

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company’s assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements in production or from a change in market demand of the product or service output of the asset.

Assets	Useful Life
Building	30 years
Computer	3 years
Plant & Machinery	8 years
Furniture & Fittings - General	10 years
Furniture & Fittings - Used in hotels, restaurants	8 years
Vehicles	10 years
Office Equipment''s	5 years
Software and Other Intangibles	6 years

b) Income Taxes

Deferred Tax Assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

The company was having brought forward losses that will be used to setoff against future profit. During the year company has loss from operating activities and management decided not to create deferred tax assets for the brought forward loss and unabsorbed depreciation.

c) Defined Benefit Plans

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

2.4 Property, Plant and Equipment

(a) Freehold land is carried at cost. All other items of property, plant and equipment including intangibles are carried at cost less accumulated depreciation/amortization losses, if any.

The cost includes the cost of replacing part of the property, plant and equipment meeting the recognition criteria and borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying property, plant and equipment up to the date of commissioning of the assets. In accordance with Ind AS 16- Property, Plant and Equipment commissioning expenses directly attributable to project is recognized under Capital Work in Progress (CWIP). Subsequent to initial recognition, property, plant and equipment other than freehold land are measured at cost less accumulated depreciation and any accumulated impairment losses. The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

2.5 Investment Property

Property that is held for long-term rental yield or for capital appreciation or both is classified as investment property. Investment property is carried at cost including related transaction costs less accumulated depreciation and impairment losses, if any. Subsequent expenditure is included in the asset’s book value only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. all other repairs and maintenance are expensed when incurred. when a part of an investment property is replaced, the carrying amounts of the replaced part is derecognized.

2.6 Depreciation

Depreciation on tangible assets is provided on Written Down value method based on all assets at the appropriate rates in accordance with Schedule II to the Companies Act, 2013. Cost of Intangible amortized over a period of ten years on written down value basis. Investment property is depreciated using the straight line method over its estimated useful life in line with rates specified in Schedule II to the Companies Act 2013.

2.7 Borrowing Costs

Borrowing costs attributable to production or acquisition or construction of qualifying assets are capitalized as part of the cost of assets up to the date such assets are ready for their intended use. Other borrowing costs are recognized as expense in the period in which they are incurred.

2.8 Impairment

The carrying values of assets/cash generating units at each Balance sheet date are annually reviewed for impairment. If any indication of impairment exits, the recoverable amount of such assets is estimated and impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in infuse is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exits or may have decreased such reversal of impairment loss is recognized in the statement of Profit and Loss..

2.9 Foreign Currency translation

i) Functional and presentation currency

The financial statements are presented in Indian Rupee, the national currency of India, which is the functional currency of the Company.

ii) Transaction and balances Initial Recognition

Foreign currency transactions are recorded in functional currency using the exchange rate prevailing on the date of transaction.

Subsequent recognition

As at the reporting date, monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rates. Exchange differences arising out of actual payment/ realization and from the year end restatement are recognized in the statement of Profit and Loss.

Forward Contracts

Foreign exchange forward contracts outstanding at the year-end on account of firms commitment / highly probable forecast transactions are marked to market and the gains / losses, if any, are recognized in the Statement of Profit and Loss. The Company does not enter into any speculative transactions in derivatives.

2.10 Inventories

The company values its inventories using the First-In, First-Out (FIFO) method & its land using the Fair Market Value(Guideline Value)

2.11 Cash and Cash equivalents

Cash and cash equivalents comprise of cash on hand, cash at banks, short-term deposits and short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

2.12 Trade receivables

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost, less provision for impairment.

2.13 Revenue recognition

Revenue is recognized to the extent it is probable that the economic benefits full flow to the Company and the revenue can be reliably measured, regardless of when 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 has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it had pricing latitude and is also exposed to inventory and credit risks.

Contract Assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company fulfils its performance obligation by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration that is conditional.

Trade Receivables

A receivable represents the company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due).

Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognized when the payment is made, or the payment is due (whichever is earlier). Contract Liabilities in respect of advance from customers is disclosed under “other current liabilities”. Contract liabilities are recognized as revenue when the Company performs under the contract.

(a) Sale of Goods and Services

Revenue, including subsidy, in respect of sale of goods and services is recognized at a point in time when control of the goods has transferred or services obligation has been performed, being when the goods are delivered to the buyer, the buyer has full discretion over the goods or services and there is no unfulfilled obligation that could affect the buyer’s acceptance of the goods. Revenue (other than subsidy) from the sales is recognized based on price specified in the contract, net of estimated volume discount. Amounts disclosed as revenue are net of returns and allowances, trade discounts, rebates, and goods & services tax (GST). The Company collects GST on behalf of the government and therefore, these are not economic benefits flowing to the Company. Hence, these are excluded from the revenue. The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

(b) Interest Income

Interest income is calculated by applying the effective interest rate to gross carrying amount of a financial asset except for financial asset that subsequently become credit impaired. In case of credit impaired financial asset, the effective interest rate is applied to the net carrying amount of the financial assets (after deduction of the loss allowance).

(c) Dividend

Dividend income is recognized when the Company’s right to receive the payment is established, which is generally when shareholders approve the dividend.

(d) Insurance Claims

Claims receivable on account of insurance are accounted for to the extent the Company is reasonably certain of their ultimate collection.

2.14 Lease

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

A. Company as Lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low value assets. The Company recognizes lease liabilities to make lease payments and right-of use assets representing the right to use the underlying assets.

Right of use assets

The cost of the right-of-use assets comprises the amount of the initial measurement of the lease liability, any lease payments made at or before the inception date of the lease plus any initial direct costs, less any lease incentives received. Subsequently, the right-of-use assets is measured at cost less any accumulated depreciation and accumulated impairment losses, if any. The right-of use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use assets. The Right to use assets are also subject to impairment as described in the polices with respect to the impairment of non-financial assets. For lease liabilities at inception, the Company measures the lease liability at the present value of the lease payments to be made over the lease term. The lease payments are discounted using the interest rate implicit in the lease, if that rate is readily determined, if that rate is not readily determined, the lease payments are discounted using the incremental borrowing rate. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. The Company recognizes the amount of the re-measurement of lease liability as an adjustment to the right-of-use assets. Where the carrying amount of the right-of-use assets is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognizes any remaining amount of the re-measurement in the statement of Profit and loss.

B. Company as Lessor

The leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset arc classified as operating Lease. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned. During the year ended 31 March 2020, the Company applied, for the first time, Ind AS 116 Leases retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application as an adjustment to the opening balance of retained earnings {or other component of equity, as appropriate) at the date of initial application.

C. Nature of the effect of adoption of lnd AS 116.

The Company has lease contracts for Factory and Hotel Business. Before the adoption of Ind AS 116, the Company classified its leases (as lessor) at the inception date as an operating lease. In an operating lease, the leased property was not capitalized and the lease receipts/payments were recognized as rent income in the statement of profit or loss on a straight-line basis over the lease term. Any prepaid rent and accrued rent were recognized under Prepayments and Trade and other payables, respectively. Upon adoption of Ind AS 116, the company applied a single recognition and measurement approach for all leases that it is the lessee, except for short term, leases and leases of low-value assets. The standard provides specific transition requirements and practical expedients, which has been applied by the company.

2.15 Financial Instrument

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

Government Subsidy relating to income are recognized in the statement of profit and loss over the periods in which the related costs, for which the grants are intended to compensate are recognized as expenses.

(a) Financial assets

Initial Recognition and Measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent Measurement Debt Instruments

Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. For the purposes of subsequent measurement, debt instruments are classified in three categories:

- Debt instruments at amortized cost;

- Debt instruments at fair value through other comprehensive income (FVTOCI); and

- Debt instruments at fair value through profit or loss (FVTPL).

Debt Instruments at Amortized Cost

A debt instrument is measured at the amortized cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss.

Debt Instrument at FVTOCI

A debt instrument is classified as at FVTOCI if both the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The asset’s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the OCI. However, the Group recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from the equity to the Statement of Profit and Loss. Interest earned while holding FVTOCI debt instruments is reported as interest income using the EIR method.

Debt Instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as at FVTOCI, is classified as at FVTPL. In addition, the Group may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ‘accounting mismatch’). Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.

Equity Instruments

- Equity instruments measured at fair value through profit or loss (FVTPL); and

- Equity instruments measured at fair value through other comprehensive income (FVTOCI) Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized when:

(a) The rights to receive cash flows from the asset have expired, or

(b) The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either

(i) the Group has transferred substantially all the risks and rewards of the asset, or

(ii) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of Financial Assets

The Group assesses on a forward looking basis the expected credit losses associated with its assets carried at amortized cost and FVTOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk since initial recognition. Assessment of such credit risk is being made on case to case basis based on available information. For trade receivables only, the Group applies the simplified approach permitted by Ind AS 109 ‘Financial Instruments’,whichrequiresexpectedlifetimelossestoberecognizedfrominitialrecognitionofthereceivables. The allowance for doubtful debts/ advances or impairment of assets is made on case to case basis by considering relevant available information.

(b) Financial Liabilities

Initial Recognition and Measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, as loans and borrowings, as payables, or as derivatives. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group’s financial liabilities include trade and other payables, loans and borrowings including redeemable preference shares and derivative financial instruments.

Subsequent Measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial Liabilities at Fair Value through Profit or Loss

Financial liabilities at fair value through profit or loss (FVTPL) include financial liabilities held for trading and financial liabilities designated upon initial recognition as at FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109 ‘Financial instruments’. Gains or losses on liabilities held for trading are recognized in the profit or loss.

2.16 Employee benefits / Obligations (i) Short term obligations

Liabilities for wages and salaries including non monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render their related services are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the Balance Sheet.

ii) Post employment obligations

The Company has the following post employment obligations / plans:

a) Defined benefit plans such as gratuity for its eligible employees; and

b) Defined contribution plan such as provident fund a) Gratuity:

The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by Actuaries using the projected unit credit method. Actuarial gains or losses are recognized in other comprehensive income. Further, the profit or loss not include an expected return on plan assets. Further, the profit or loss does not include an expected return on plan assets. Instead net interest recognized in profit or loss is calculated by applying the discount rate used to measure the defined benefit obligation to the net defined benefit liability or asset.

Re-measurement gains or losses arising from experience adjustments and changes in actuarial assumption are recognized in the period in which they occur, directly in other comprehensive income (net of tax). (b)Provident Fund:

This is a defined contribution plan, and contributions made to the Fund as per the rules of the Company are charged top rift and loss as and when due. The Company has no further obligations for future provident fund benefits other than monthly contributions.

2.17 Taxes on Income

Taxes on Income comprise current tax and deferred tax.

The current tax expense for the period is the tax payable on the current period’s taxable income computed at the applicable income tax rate and is recognized in the statement of profit or loss. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

Current and deferred tax is recognized in profit and loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

2.18 Provisions and contingencies Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Contingencies

Contingent liabilities are not recognized but are disclosed in notes. Contingent assets are neither recognized nor disclosed in the financial statements.

2.19 Earnings per share

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

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all potential equity shares.

2.20 Accounting Policy, Change in Accounting Estimates and Error

If the Material error occurred before the earliest prior period presented then entity shall correct the same retrospectively in the first set of financial statement approved for issue after the discovery after restating the opening balance of assets, Liabilities and equity for the earliest prior period presented.

2.21 Segment Reporting

Operating segments are reported in a manner consistent with the internal reposting provided to the chief Operating Decision Maker (“CODM”)

2.22 Dividend to Shareholders

Final dividend distributed to equity shareholders is recognized in the period in which it is approved by the members of the Company in the Annual General Meeting. Interim dividend is recognized when approved by the Board of Directors at the Board meeting. Dividend distributed (including interim dividend) is recognized in the Statement of changes in Equity.

---

Mar 31, 2014

The financial statements are prepared on accrual basis of accounting and in accordance with the applicable Accounting Standards.

i Revenue Recognition

Revenue is recognized on accrual basis and is inclusive of excise duty wherever applicable.

ii Foreign Currency Transactions

Foreign Currency transactions are recorded at the rates prevailing on the date of the transactions. Exchange differences arising on settlement are recognized in the statement of Profit & Loss. Outstanding foreign balances are restated at exchange rates prevailing on the Balance Sheet date.

iii Employee Benefits

Short term employee benefits are estimated and provided for. Further company''s contribution to Provident Fund, Employees State Insurance and other funds are determined under the relevant schemes and/or statute are charged to revenue. Gratuity and Leave encashment are based on reasonable estimates based on past trend of employee retrenchment/attrition.

iv Fixed Assets

Fixed Assets are valued at cost. Most of the fixed assets were revalued in the past earlier years to reflect the true value of such assets and the incremental appreciation on account of such revaluation was credited to Fixed Assets Revaluation Reserve in earlier years.

v Depreciation

Depreciation is provided on Written Down value method on all assets at the appropriate rates in accordance with Schedule XIV to the Companies Act, 1956. The incremental differential depreciation on account of revaluation of certain depreciable assets is charged against Fixed Assets Revaluation Reserve account

vi Borrowing Cost

Interest cost on qualifying asset being an asset necessarily takes a substantial period of time to get ready for its intended use or sale, is capitalized at the weighted average rate of the funds borrowed and utilized for acquisition of such assets.

vii Impairment of Assets

The carrying cost of assets are reviewed at each Balance Sheet date and if there is any indication of impairment based on internal/external factors, the same is recognized and provided for.

viii Investments

Investments meant to be held for long term are carried at cost.

ix Inventories

Fertilizer mixtures are valued at lower of cost and net realizable value following first in first out method. Raw materials, Stores and Spare parts are valued at weighted-average cost and are inclusive of excise duty and other taxes wherever applicable

---

Mar 31, 2013

The financial statements are prepared on accrual basis of accounting and in accordance with the applicable Accounting Standards.

i Revenue Recognition

Revenue is recognized on accrual basis and is inclusive of excise duty wherever applicable.

ii Foreign Currency Transactions

Foreign Currency transactions are recorded at the rates prevailing on the date of the transactions. Exchange differences arising on settlement are recognized in the statement of Profit & Loss. Outstanding foreign balances are restated at exchange rates prevailing on the Balance Sheet date.

iii Employee Benefits

Short term employee benefits are estimated and provided for. Further Company''s contribution to Provident Fund, Employees State Insurance and other funds are determined under the relevant schemes and/or statute are charged to revenue. Gratuity is provided for in the accounts based on an Actuarial Valuation.

iv Fixed Assets

Fixed Assets are valued at cost. Most of the fixed assets were revalued in the past earlier years to reflect the true value of such assets and the incremental appreciation on account of such revaluation was credited to Fixed Assets Revaluation Reserve in earlier years.

v Depreciation

Depreciation is provided on Written Down value method on all assets at the appropriate rates in accordance with Schedule XIV to the Companies Act, 1956. The incremental differential depreciation on account of revaluation of certain depreciable assets is charged against Fixed Assets Revaluation Reserve account

vi Borrowing Cost

Interest cost on qualifying asset being an asset necessarily takes a substantial period of time to get ready for its intended use or sale, is capitalized at the weighted average rate of the funds borrowed and utilized for acquisition of such assets.

vii Impairment of Assets

The carrying cost of assets are reviewed at each Balance Sheet date and if there is any indication of impairment based on internal/external factors, the same is recognized and provided for.

viii Investments

Investments meant to be held for long term are carried at cost.

ix Inventories

Fertilizer mixtures are valued at lower of cost and net realizable value following first in first out method. Raw materials, Stores and Spare parts are valued at weighted-average cost and are inclusive of excise duty and other taxes wherever applicable

---

Mar 31, 2012

The financial statements are prepared on accruat basis of accounting and in accordance with the appli- cable Accounting Standards.

i Revenue Recognition

Revenue is recognized on accrual basis and is inclusive of excise duty wherever applicable.

ii Foreign Currency Transactions

Foreign Currency transactions are recorded at the rates prevailing on the date of the transactions. Exchange differences arising on settlement are recognized in the statement of Profit & Loss . Out- standing foreign balances are restated at exchange rates prevailing on the Balance Sheet date.

iii Employee Benefits

Short term employee benefits are estimated and provided for. Further Company's contribution to Provident Fund, Employees State Insurance and other funds are determined under the relevant schemes and/or statute are charged to revenue. Gratuity is provided for in the accounts.

iv Fixed Assets

Fixed Assets are valued at cost. Most of the fixed assets were revalued in the past earlier years to reflect the true value of such assets and the incremental appreciation on account of such revaluation was credited to Fixed Assets Revaluation Reserve in earlier years.

v Depreciation

Depreciation is provided on Written Down value method on all assets at the appropriate rates in accor- dance with Schedule XIV to the Companies Act, 1956. The incremental differential depreciation on account of revaluation of certain depreciable assets is charged against Fixed Assets Revaluation Reserve account

vi Borrowing Cost

Interest cost on qualifying asset being an asset necessarily takes a substantial period of time to get ready for its intended use or sale, is capitalized at the weighted average rate of the funds borrowed and utilized for acquisition of such assets.

vii Impairment of Assets

The carrying cost of assets are reviewed at each Balance Sheet date and if there is any indication of impairment based on internal/external factors, the same is recognized and provided for.

viii Investments

Investments meant to be h6ld for long term are carried at cost.

ix Inventories

Fertilizer mixtures are valued at lower of cost and net realizable value following first in first out method. Raw materials, Stores and Spare parts are valued at weighted-average cost and are inclusive of excise duty and other taxes wherever applicable

---

Mar 31, 2010

The financial statements are prepared on accrual basis of accounting and in accordance with the applicable Accounting Standards.

(i) REVENUE RECOGNITION

Revenue is recognized on accrual basis and is inclusive of excise duty wherever applicable.

(ii) FOREIGN CURRENCY TRANSACTIONS

Foreign Currency transactions are recorded at the rates prevailing on the date of the transactions. Exchange, differences arising on settlement are recognized in the Profit & Loss account.

(iii) EMPLOYEE BENEFITS

Short term employee benefits are estimated and provided for. Further Companys contribution to Provident Fund, Employees State lnsurance and other funds are determined under the relevant schemes and/or statute are charged to revenue. Gratuity and Leave encashment are based on reasonable estimates based on past trend of employee retrenchment/attrition

(iv) FIXED ASSETS

Fixed Assets are valued at cost. Most of the fixed assets were revalued to reflect the true value of such assets and the incremental appreciation on account of such revaluation was credited to Fixed Assets Revaluation Reserve in earlier years.

(v) DEPRECIATION

Depreciation is provided on Written Down value method on all assets at the appropriate rates in accordance with Schedule XIV to the Companies Act, 1956. The incremental differential depreciation on account of revaluation of certain depreciable assets is charged against Fixed Assets Revaluation Reserve account.

(vi) BORROWING COST

Interest cost on qualifying asset being an asset necessarily takes a substantial period of time to get ready for its intended use or sale, is capitalized at the weighted average rate of the funds borrowed and utilized for acquisition of such assets.

(vii) IMPAIRMENT OF ASSETS

The carrying cost of assets are reviewed at each Balance Sheet date and if there is any indication of impairment based on internal/external factors, the same is recognized and provided for.

(viii) INVESTMENTS

Investments meant to be held for long term are carried at- cost.

(ix) INVENTORIES

Fertilizer mixtures are valued at lower of cost and net realizable value following first in first out method.

Raw materials, Stores and Spare parts are valued at weighted-average cost and are inclusive of excise duty and other taxes wherever applicable.

---

Jun 30, 2003

I) FIXED ASSETS

Fixed Assets are capitalised at cost to the Company inclusive of direct and appropriate allocated expenses and interest on specified borrowings up to the commencement of commercial production.

Most of the fixed Assets are periodically revalued to reflect the true value of such assets and the incremental appreciation on account of such revaluation is credited to Fixed Assets Revaluation Reserve.

Expenditure on immature tea in replanted area is capitalised.

Assets acquired under financial lease are not capitalised. However, lease rental, finance charges and other related expenses are carried over till the date of commissioning of such asset and amortised over the primary lease period.

Assets acquired on hire purchase is capitalised to the extent of principal value.

Assets costing less than Rs.5000 added during the year are fully depreciated.

ii) DEPRECIATION

Depreciation is provided on straight line method on assets relating to granite division and on written down value method on all other assets at the appropriate rates in accordance with Schedule XIV to the Companies Act, 1956. The incremental differential depreciation on account of revaluation of certain depreciable assets is charged against Fixed Assets Revaluation Reserve account.

iii) INVESTMENTS

Investments meant to be held for long term are carried at cost and decline in the market value over cost in respect of any individual investment, if any, is not recognized, if such short fall in the opinion of the management is of temporary nature.

iv) INVENTORIES

Inventories are valued as follows:

Fertilizers and granite products are valued at lower of cost and net realisable value following first in first out method. Tea is valued at since net realised/realisable value.

Raw materials, Work-in-progress, Stores and Spare parts are valued at weighted-average cost and is inclusive of excise duty wherever applicable.

v) REVENUE RECOGNITION

Revenue is recognized on accrual basis and is exclusive of excise duty.whereever applicable. Interest oh overdue accounts and claims in certain Divisions are generally accounted in the year of settlement due to uncertainty of realisation.

Income from Investments including from subsidiaries is recognized when the right to receive dividend accrues.

vi) RETIREMENT BENEFITS

Gratuity to employees payable in the future actuarially evaluated is generally provided for in the accounts and the incremental liability is remitted into a separate trust after the close of the financial year Contribution to Superannuation Fund for eligible employees is remitted to the Trustees. Leave encashment is provided for in the accounts on the basis of actuarial valuation.