Accounting Policies of Kothari Products Ltd. Company

Mar 31, 2025

MATERIALACCOUNTING POLICIES:

STATEMENTOF COMPLIANCE

This note provides a list of the material accounting policies adopted in the preparation of these Indian Accounting Standards
(Ind-AS) financial statements. These policies have been consistently applied to all the years except where newly issued
accounting standard is initially adopted.

Accordingly, the Company has prepared these Standalone Financial Statements which comprise the Balance Sheet as at 31
March, 2025, the Statement of Profit and Loss for the year ended 31 March 2025, the Statement of Cash Flows for the year ended
31 March 2025 and the Statement of Changes in Equity for the year ended as on that date, and accounting policies and other
explanatory information (together hereinafter referred to as ''Standalone Financial Statements'' or ''financial statements'').

AUTHORISATION OF STANDALONE FINANCIAL STATEMENTS:

These standalone financial statements are approved for issue by the Board of Directors on 28 May 2025.

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

A. Statement of Compliance

1. The Financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS)
notified under the section 133 of the Companies Act 2013 (the Act) read with Companies (Indian Accounting Standards)
Rule 2015 (as amended from time to time) and other relevant provisions of the Act.

2. Historical Cost Convention

The Financial statements have been prepared on a historical cost basis, except for the following assets and liabilities:

i) Certain Financial assets and liabilities that is measured atfair value

ii) Defined benefit plans-plan assets measured atfairvalue

B. Current vs. Non-Current classification:

The Company presents assets and liabilities in the balance sheet based on current/non- current classification.

(a) Anassetistreatedascurrentwhen it is:

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

- Held primarilyfor purpose of trading

- Expected to be realized within twelve months after the reporting period.

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

All other assets are classified as non-current.

(b) Aliabilityiscurrentwhen:

- It is expected to be settled in normal operating cycle

- It is held primarilyfor purpose of trading

- It is due to be settled within twelve months afterthe reporting period, or

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

All other liabilities are classified as non-current.

Deferred tax assets and deferred tax liabilities are classified as non- current on net basis.

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

The Standalone Financial Statements have been presented in Indian Rupees (INR), which is the company''s functional
currency. All financial information presented in INR has been rounded off to the nearest lakh unless otherwise stated.

C. Use of Estimates:

The preparation of Financial statements in conformity with Indian Accounting Standards (Ind AS) in India requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the
disclosures of contingent liabilities on the date of Financial statements and reported amounts of income and expenses
during the period. Differences between actual results and estimates are recognised in the year in which the results are known
ormaterialise.

This note provides an overview of the areas where there is a higher degree of judgment or complexity. Detailed information
about each of these estimates and judgments is included in relevant notes together with information about the basis of
calculation.

The areas involving critical estimates or judgments include:

FairValue of unlisted equity securities
Defined BenefitObligation
Measurement of contingent liabilities
Currenttaxexpense and currenttaxpayable
Deferred tax assets for carried forward tax losses

2. PROPERTY, PLANT AND EQUIPMENT(PPE)

(i) Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses,
if any.

(ii) The initial cost of an asset comprises its purchase price (including import duties and non-refundable taxes, if any), any
costs directly attributable to bringing the asset into the location and condition necessary for itto be capable of operating
in the manner intended by the management, borrowing cost for qualifying assets (i.e. assets that necessarily take a
substantial period of time to get ready for their intended use).

(iii) Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the
expenditure will flow to the Company.

(iv) An item of Property, plant and equipment and any significant part initially recognised separately as part of Property,
plantand equipment is de-recognised upon disposal; or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the assets is included in the Statement of Profit and Loss.

(v) The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
Financial yearend and adjusted prospectively, if appropriate.

(vi) Depreciation on property, plant and equipment is provided on straight-line method using the useful lives of the assets
estimated by the management and in the manner prescribed in Schedule II to the Companies Act 2013. The asset wise
details of useful lives considered for purposes of calculating depreciation are as under:

Office Building - 30years Vehicles - 8years

Furniture - 10years Computers - 6years

Office equipment - 5 years Computer Software - 2 years

(vii) An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is
greaterthan its estimated recoverable amount.

3. INTANGIBLEASSETS

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and
accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The
estimated useful life and amortization method are reviewed at the end of each reporting year, with the effect of any changes
in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired
separately are carried at cost less accumulated impairment losses.

4. IMPAIRMENT

At the end of each reporting year, the Company reviews the carrying amounts of its tangible and intangible assets to
determine whether there is any indication thatthose assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the assetfor which the estimates of future cashflows have not been adjusted.

Goodwill and intangible assets that do not have definite useful life are not amortised and are tested at least annually for
impairment. If events or changes in circumstances indicate that they might be impaired, they are tested for impairment once
again.

5. INVESTMENT PROPERTY

Investment Property is property (land or a building - or part of a building - or both) held either to earn rental income or for
capital appreciation or both, but not for sale in the ordinary course of business, used in production or supply of goods or
services or for administrative purposes. Investment Properties are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any.

Any gain or loss on disposal of investment property calculated as the difference between the net proceeds from disposal
and carrying amount ofthe Investment Property shall be recognized in Statement of Profitand Loss.

Depreciation on Investment Property is provided on straight-line method using the useful lives ofthe assets estimated by
management and in the manner prescribed in Schedule II ofthe Companies Act 2013. The useful life considered in respect
of Building is 60 years and amortization of long term leasehold property classified as Investment Property is based on the
balance lease term.

6. LEASEACCOUNTING:

LEASE CONTRACTS WHERE THE COMPANY IS ALESSEE

(i) All the lease agreements ofthe Company, where the company is a Lessee are in the nature of shortterm leases or are low
value leases and are in respect of premises used as staff residences, business premises orGodowns.

(ii) The company has therefore elected to avail the exemption from paras 22-49 of Ind-AS 116 and accounted for the lease
payments as per para 6 ofthe said Ind-AS. Accordingly the entire lease payments associated with these leases have
been recognised as an expense on a straight-line basis over the lease term or another systematic basis.

LEASE CONTRACTS WHERE THE COMPANY IS A LESSOR

(i) All lease agreements where the Company is a Lessor are in the nature of''operating leases''.

(ii) All the lease income from operating leases are recognized in the statement of Profit and loss account on a systematic
basis.

(iii) The costs, including depreciation, incurred in earning the lease income have been recognized as expenses under the
respective expense heads in the Statement of Profitand Loss.

7. INVENTORIES:

StockinTrade-Traded Goods

Stock in Trade consists of goods traded by the company.

(i) Basis of Valuation: Inventories are stated at lower of cost and net realizable value. The comparison of cost and net
realizable value is made on an item-to-item basis.

(ii) Method of Valuation- Cost of inventories comprises of expenditure incurred in the normal course of business in bringing
inventories to their present location including appropriate overheads apportioned on a reasonable and consistent
basis.

StockinTrade- Real Estate

It comprises cost of land, rates & taxes, overheads and expenses incidental to the land development, if any undertaken by
the Company.

8. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES:

A Subsidiary is an entity that is controlled by another entity. An investor controls an investee if and only if the investor has the
following; (i) Power over the investee, (ii) exposure, or rights, to variable returns from its involvement with the investee and (iii)
the ability to use its power over the investee to affect the amount of the investor''s returns.

An Associate is an entity over which the Company has significant influence. Significant influence is the power to participate in
thefinancial and operating policy decisions ofthe investee, but is not control orjoint control overthose policies.

The Company''s investments in its Subsidiaries and Associate are accounted at cost.

9. TRANSACTIONS IN FOREIGN CURRENCY:
a) Functional and presentation currency

The Company''s financial statements are prepared in INR, which is also the Company''s functional and presentation
currency.

b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally
recognised in the Statement of Profitand Loss.

In case of advance payment for purchase of assets/goods/services and advance receipt against sales of products/
services, all such purchase/salestransaction are recorded atthe rate atwhich such advances are paid/received.

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the Statement of Profit
and Loss, within finance costs. All other foreign exchange gains and losses are presented in the Statement of Profitand
Loss on a net basis within other gains/(losses).

Non-monetary items:

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rates atthe dates of the initial transactions.

10. REVENUE RECOGNITION:

The Company derives revenues primarily from sale of products and services. Revenue from sale of goods is recognised net
of returns and discounts.

Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the
consideration the Company expect to receive in exchange for those products or services.

To recognise revenues, the Company applies the following five step approach:

1) Identify the contractwith a customer;

2) Identifythe performance obligations inthe contract;

3) Determinethetransaction price;

4) Allocate the transaction pricetothe performance obligations inthe contract; and

5) Recognize revenues when a performance obligation issatisfied.

Based on above principle

• Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. The
amount recognised as sale is exclusive of GST and are net of returns.

• Dividend income is recognised when the rightto receive payment is established.

• Interest Income is recognized on time proportion basis taking into account the amount outstanding and the applicable
interest rates and isdisclosed in "other income".

• Rental income arising from operating leases on investment properties is accounted for on a straight-line basis over the
lease terms and is included in other operating income in the statement of profit or loss due to its operating nature.

11. EMPLOYEE RETIREMENT BENEFITS:

Shortterm employee benefits

All employee benefits payable/available within twelve months of rendering the services are classified as short term
employee benefits. Benefits such as salaries, wages and bonus, etc., are recognized inthe Statement of profitand Loss inthe
period in which the employee rendersthe related service.

Provident fund

Eligible employees receive benefits from a provident fund, which is a defined contribution plan. Both the employees and the
Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered
employees''salary. The Company contributes a part of the contributions to the Government administered Provident/Pension
Fund. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes
contribution payable through the provident fund scheme as an expense, when an employee renders related services.

Other long term employee benefits

The company has subscribed to a Group Gratuity Accumulation Policy from the Life Insurance Corporation of India, which is a
defined benefit plan. The liabilities with respect to Gratuity Plan are determined by actuarial valuation by LIC. The annual
premium, as determined, based on such valuation, is paid and charged to the Statement of Profit & Loss Account. The fund
value of the accumulated contribution by the Company, which represents the ''Plan Assets'' is Rs.102.31 Lakhs which the
adequately covers the estimated Gratuity Liability

The valuation method used by the LIC is Projected Unit credit method. Other acturial assumptions for the policy are as
under:-

1. Mortality Rate: LIC(2006-08) Ultimate

2. Withdrawal Rate: 1%to3%depending on age

3. Discount Rate: 7.25% p.a.

4. Salary Escalation: 8%

12. FINANCIAL INSTRUMENTS:

Financial assets and financial liabilities are recognised when a Company becomes a partytothe contractual provisions ofthe
instruments.

Initial Recognition and Measurement- Financial Assetsand Financial Liabilities

Financial assetsand financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value
through profit or loss and ancillary costs related to borrowings) are added to or deducted from the fair value ofthe financial
assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through profit or loss are recognised immediately in the Statement of Profit
and Loss.

Classification and Subsequent Measurement: Financial Assets

The Company classifies financial assets as subsequently measured at amortised cost, fair value through Other
Comprehensive I ncome("FVTOCI") or fair value through profit or loss ("FVTPL") on the basis of following:

- the entity''s business model for managing the financial assetsand

- the contractual cash flow characteristics of the financial asset.

Amortised Cost

Afinancial asset is classified and measured at amortised cost if both of the following conditions are met:

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

- the contractual terms ofthe financial asset give rise on specified dates to cash flows that are solely payments of principal
and interestonthe principal amount outstanding.

FVTOCI

Afinancial asset is classified and measured at FVTOCI if both ofthe following conditions are met:

- the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets; and

- the contractual terms ofthe financial asset give rise on specified dates to cash flows that are solely payments of principal
and interestonthe principal amount outstanding.

FVTPL

Afinancial asset is classified and measured at FVTPL unless it is measured at amortised cost or at FVTOCI. All recognised
financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the
classification ofthefinancial assets.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised
cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments,
which requires expected lifetime lossesto be recognised from initial recognition ofthe receivables.

Classification and Subsequent measurement:

Financial Liabilities The Company''s financial liabilities include trade and other payables, loans and borrowings including
bank overdrafts,financial guarantee contracts and derivative financial instruments.

Financial Liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial
recognition as FVTPL.

Gains or losses on financial liabilities held for trading are recognised in the Statement of Profit and Loss.

Other Financial Liabilities

Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost
using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments
(including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to
the net carrying amounton initial recognition.

Derecognition of Financial Assets and Financial Liabilities

The Company de-recognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or
it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of
ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the
risks and rewards of ownership and does not retain control of the financial asset. If the Company enters into transactions
whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of
the transferred assets, the transferred assetsare notderecognised.

Afinancial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
Offsettingfinancial instruments

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and
settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be
enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the
counterparty.

13. TAXES ON INCOME:

Current Tax

Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in
accordance with the provisions of the relevanttaxlaws and based on the expected outcome of assessments/ appeals.

Current income tax relating to items recognised directly in equity is recognised in equity and not in the Statement of Profit
and Loss.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subjectto interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the Balance Sheet approach on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amountsforfinancial reporting purposes at the reporting date.

Deferred tax assets are recognised for all deductible temporary differences, the carryforward of unused tax credits and any
unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences, carry forward of unused tax credits and unused tax losses can be
utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become
probable thatfuture taxable profits will allowthe deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date.

Deferred tax relating to items recognised outside the Statement of Profit and Loss is recognised outside the Statement of
Profit Corporate overview statutory reports Financial Statements and Loss. Deferred tax items are recognised in correlation
to the underlying transaction either in Other Comprehensive Income or directly in equity.

The break-up of the major components of the deferred tax assets and liabilities as at Balance Sheet date has been arrived at
after setting off deferred tax assets and liabilities where the Company have a legally enforceable right to set-off assets
against liabilities and where such assets and liabilities relate to taxes on income levied by the same governing taxation laws.

MAT Credits are in the form of unused tax credits that are carried forward by the Company for a specified period of time,
hence it is grouped with Deferred Tax Asset.

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Mar 31, 2024

CORPORATE OVERVIEW

Kothari Petrochemicals Limited (referred to as “KPL” or the “Company”) is the Manufacturer of Poly Iso Butylene. The registered office of the Company is situated at “Kothari Buildings”, No:115, Mahatma Gandhi Salai, Nungambakkam, Chennai - 600 034.

AUTHORIZATION OF FINANCIAL STATEMENTS

The Financial Statements for the year ended 31^st March 2024 have been approved for issue by the Board of Directors of the Company on 16^th May 2024 and are subject to adoption by the shareholders in the ensuing Annual General Meeting.

MATERIAL ACCOUNTING POLICIES

1. Statement of Compliance :

The financial statements have been prepared in accordance with the Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015.

2. Basis of preparation and presentation :

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in these financial statements is determined on such a basis, leasing transactions that are with in the scope of Ind AS 116, and measurements that have some similarities to fairvalue but are not fairvalue, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fairvalue measurements are Categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fairvalue measurements are observable and the significance of the inputs to the fairvalue measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

The principal accounting policies are set out below:

3. Revenue Recognition :

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services.

The Company considers indicators for assessing the transfer of control, including :

(a) the entity has a present right to payment for the asset.

(b) the customer has legal title to the asset.

(c) the entity has transferred physical possession of the asset.

(d) the customer has the significant risks and re-wards of ownership of the asset.

(e) the customer has accepted the asset.

Dividend, interest and other income

• Dividend income from investments is recognized when the right to receive payment has been established.

• Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable in line with the effective interest rate method.

• Operating Lease rental income is accounted on straight line basis over the term of the relevant lease.

• Insurance claims are accounted on the basis of claims admitted and to the extent that there is no uncertainty in receiving the claims.

• Export benefits are accounted in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

4. Leases :

Where the company has lessee, Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee or the lease meets other criteria as laid down Ind AS 116. All other leases are classified as operating leases.

In the case of operating leases, Ind AS 116 requires lessees to determine the lease term as the noncancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. Lease term exceeding 12 months are considered under Ind AS 116. Lease rentals having lease term within 12 months are charged or recognized in the Statement of Profit and Loss on a straight-line basis over the lease term.

5. Borrowing costs:

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time the assets are ready for their intended use or sale. Interest income earned on the temporary investments of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

All other borrowing costs are recognized in the Statement of Profit and Loss in the period in which they are incurred. Borrowing costs are not included in the value of inventories.

6. Employee Benefits :

(a) Retirement benefit costs and termination benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions. For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carriedout at the end of each reporting period. Defined benefit costs are categorized as follows:

• Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

• Net interest expense or income; and

• Re-measurement.

The Company presents the first two components of defined benefit costs in Statement of Profit and Loss in the line item ‘Employee benefits expense’.

Past service cost is recognized in Statement of Profit and Loss in the period of a plan amendment.

Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognized in other comprehensive income in the period in which they occur. Re-measurement recognized in Other Comprehensive Income is reflected immediately in Retained Earnings and is not reclassified to Statement of Profit and Loss.

(b) Short-term and other long-term employee benefits

A liability is recognized for benefits accruing to employees in respect of wages and salaries in the period the related service is rendered. Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange forthe related service.

7. Earnings per Share :

The Company presents basic and diluted earnings per share (EPS) data for its equity shares.

Basic EPS is calculated by dividing the Profit or Loss attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted EPS is determined by adjusting the Profit or Loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.

8. Taxation :

Income tax expense represents the sum of the tax currently payable and deferred tax.

Minimum Alternative Tax (“MAT”) credit is recognized as an asset only when and to the extent there is reasonable certainty that the Company will pay normal income tax during the specified period.

(a) Current tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income tax Act, 1961 and other applicable tax laws.

(b) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

(c) Current and deferred tax for the year

Current and deferred tax are recognized in Statement of Profit and Loss, except when they relate to items that are recognized in Other Comprehensive Income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

9. Property, Plant and Equipment :

All Property, Plant and Equipment are measured at cost, less accumulated depreciation and impairment losses, if any.

The cost of asset includes the purchase cost including import duties and non-refundable taxes, and any costs that are directly attributable of bringing an asset to the location and condition of its intended use.

The carrying amount of the replaced parts are derecognized. All other repairs and maintenance costs are recognized in Statement of Profit and Loss as incurred.

Subsequent expenditure related to an item of Property, Plant and Equipment is added to it carrying value only when economic benefits are expected to accrue for a period beyond one year.

Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013

Estimated useful lives of the assets are as follows:
Particulars of Asset	Estimated useful lives
Freehold Land	Infinite
Building	3-60 years
Plant & Equipment	5-40 years
Furniture & Fixtures	10 years
Office Equipment & Computers	3-5 years
Vehicles	8 years

Assets costing ''5,000 and below are depreciated in the year of acquisition.

Assets on leased premises are depreciated on the remaining period of lease or as per the useful life prescribed in Schedule II of the Companies Act, 2013, whichever is earlier.

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value not more than 5% of Cost.

For certain items of plant and machinery, the useful life adopted is based on internal technical evaluation and best represents the period over which the Company expects to use these assets.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

An item of Property, Plant and Equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset.

Gains / Losses arising on the disposal or retirement of an item of Property, Plant and Equipment are determined as the difference between the sales proceeds or net realizable value and the carrying amount of the asset and is recognized in Statement of Profit and Loss.

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment. If any indication of 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-use 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 exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss.

10. Investment Property :

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost including transactions costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation over useful life of 60 years and impairment losses , if any. Though, the Company measures investment property using cost-based measurement, the fair value of investment property is disclosed in Notes.Fair values are determined based on an annual evaluation performed by a Chartered Engineer.

11. Intangible Assets :

Intangible assets with finite useful lives that are acquired separately are carried at cost, less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

Software and licenses are amortized over useful life of not exceeding 5 years.

12. Inventories :

Inventories are stated at the lower of cost and net realizable value. Net realizable value represents the estimated selling price for inventories, less all estimated costs of completion and costs necessary to make the sale.

Cost of inventory comprises of purchase price, cost of conversion and other directly attributable costs that have been incurred in bringing the inventories to their respective present location and condition. The cost of inventories is computed on weighted average basis. Inventories are written down on a case-by-case basis if the anticipated net realizable value declines below the carrying amount of the inventories in the Statement of Profit and Loss.

13. Provisions, contingent liabilities and contingent assets :

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

Provisions (excluding retirement benefits) are not discounted to their present value except in the cases where time value of money is not material and are determined based on the best estimate required to settle the obligation at the balance sheet date and are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liabilities in relation to claims against the Company, includes legal, contractual and claims arising from custom. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgment and the use of estimates regarding the outcome of future events. Contingent liabilities are disclosed in the notes. Contingent assets are not recognized in the financial statements.

14. Financial instruments :

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in Statement of Profit and Loss.

15. Financial assets:

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place.

All recognized financial assets are subsequently measured in their entirety at amortized cost or fair value, depending on the classification of the financial assets.

(a) Classification offinancial assets

Debt instruments (including Trade receivables, Loans and Other Financial Assets) that meet the following conditions are subsequently measured at amortised cost (except for debt instruments that are designated as at fair value through profit or loss on initial recognition):

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

• the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

All other financial assets are subsequently measured at fair value.

(b) Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate,transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Income or Expense is recognized on an effective interest basis for debt instruments other than those financial liabilities classified as at FVTPL. Interest income or expense is recognized in Statement of Profit and Loss.

(c) Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortized cost. The impairment methodology applied depends on whether there has been significant increase in credit risk.

For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected credit losses to be recognized from initial recognition of the receivables.

(d) Derecognition offinancial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire.or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

(e) Derivative financial instruments

The Company uses forward contracts to hedge its foreign currency risks. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss.

16. Financial liabilities :

Borrowings, trade payables and other financial liabilities are initially recognized at the value of the respective contractual obligations.

They are subsequently measured at amortised cost using effective interest method. Any discount or premium on settlement is recognized in the Statement of Profit and Loss as finance cost over the life of the liability using the effective interest method and adjusted to the liability figure disclosed in the Balance Sheet. De recognition offinancial liabilities The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired.

17. Cashflowstatement

Cash flows are reported using the indirect method, where by profit / (loss) before exceptional items and tax is adjusted for the effects of transactions of noncash nature and any deferrals or accruals of past or future cash receipts or payments. The company considers all liquid investments, which are readily convertible into known amounts of cash, that are subject to an insignificant risk of change in value to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal or usage except fixed deposit with original maturity more than 3 months.

18. Functional and presentation currency and Foreign Currency Transactions

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which these entity operate (i.e. the “functional currency”). The financial statements are presented in Indian Rupee, the national currency of India, which is the functional currency of the Company.

In preparing the financial statements of the Company, transactions in currencies other than the entity''s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of

the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date.

Exchange differences on monetary items are recognized in Statement of Profit and Loss in the period in which they arise.

19. Key estimates and assumptions

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key assumption concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as given below.

(i) Useful life of property, plant, equipment and Investment property & Intangibles Periods.

(ii) Provision for income taxes and deferred taxes.

(iii) Provisions for Defined benefit plan.

Fair value measurement and valuation processes: Some of the Company''s assets and liabilities are measured atfairvalue for financial reporting purposes. In estimating the fairvalue of an asset or a liability, the Company uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Company engages third-party qualified valuers to perform the valuation.

20. Operating Cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

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Mar 31, 2023

Note: 1 OVERVIEW AND SIGNIFICANT ACCOUNTING POLICIES COM PAN YOVERVIEW:

Kothari Products Limited (''the Company'') is a public limited Company domiciled in India and incorporated on September 1 7, 1 983 underthe provisions ofthe Companies Act, 1 956 having its registered office at 24/1 9 Pan Parag House,The Mall, Kanpur, Uttar Pradesh. The Company is listed on BSE Limited and National Stock Exchange of India Limited.

The Company is engaged in the business of Real Estate and Internationa I Trade.

SIGNIFICANT ACCOUNTING POLICIES:STATEMENT OF COMPLIANCE

This note provides a list ofthe significant accounting policies adopted inthe preparation of these Indian Accounting Standards (Ind-AS) financial statements. These policies have been consistently applied to all the years except where newly issued accounting standard is initially adopted.

Accordingly, the Company has prepared these Standalone Financial Statements which comprise the Balance Sheet as at 31 March, 2023, the Statement of Profit and Loss for the year ended 31 March 2023, the Statement of Cash Flows for the year ended 31 March 2023 and the Statement of Changes in Equity for the year ended as on that date, and accounting policies and other explanatory information (tog ether hereinafter referred to as ''Standalone Financial Statements'' or''financia I statements'').

AUTHORISATION OF STANDALONE FINANCIALSTATEMENTS:

These standalone financia I statements are approved for issue by the Board of Directors on 23 May 2023.

1. BASIS OF PREPARATION OF FINANCIALSTATEMENTS:A. Statementof Compliance

1. The Financial statements ofthe Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified underthe section 1 33 ofthe Companies Act 201 3 (the Act) read with Companies (Indian Accounting Standards) Rule 201 5 (as a mended from time to time) and other relevant provisions ofthe Act.

2. Historical Cost Convention

The Financial statements have been prepared on a historical cost basis, exceptforthefollowing assets and liabilities:

i) Certain Financial assets and liabilities that is measured at fair value

ii) Defined benefit plans-plan assets measured at fair value

B. Current vs. Non-Current classification:

The Company presents assets and liabilities inthe balance sheet based on current/non-current classification.

(a) An asset istreatedascurrentwhen itis:

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

- Held primarilyforpurposeoftrading

- Expected to be realized within twelve months afterthe reporting period.

- th e cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months afterthe reporting period.

All otherassetsareclassified as non-current.

(b) A liability is current when:

- Itis expected to be settled in normal operating cycle

- It is held primarilyforpurposeoftrading

- It is due to be settled within twelve months afterthe reporting period, or

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

All other liabilities areclassfied as non-current.

Deferred tax assets and deferred tax liabilities are classified as non- current on net basis.

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

The Standalone Financial Statements have been presented in Indian Rupees (INR), which is the Company''s functional currency. All financia I information presented in INR has been rounded off to the nearest Lac unless otherwise stated.

C. Use Of Estimates:

The preparation of Financial statements in conformity with Indian Accounting Standards (Ind AS) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of Financial statements and reported amounts of income and expenses during the period. Differences between actual results and estimates are recognised in the year in which the results are known or materialise.

This note provides an overview of the areas where there is a higher degree of judgment or complexity. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation.

The areas involving critical estimates orjudgments include:

FairValue of unlisted equity securities Defined Benefit Obligation Measurement of contingent liabilities Current tax expense and current tax payable Deferred tax assets for carried forward tax losses

2. PROPERTY, PLANT AND EQUIPMENT(PPE)

(i) Property, plant and equipment a re stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

(ii) The initial cost of an asset comprises its purchase price (including import duties and non-refundable taxes, if any), any costs directly attributable to bringing the asset into the location and condition necessaryforitto be capable of operating in the manner intended by the management, borrowing cost for qualifying assets (i.e. assets that necessarily take a substantial period oftimeto get ready for their intended use).

(iii) Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

(iv) An item of Property, plant and equipment and any significant part initially recognised separately as part of Property, plant and equipment is de-recognised upon disposal; or when no future economic benfHts are expected from its use or disposal. Any gain or loss arising on de-recognition of the assets is included in the Statement of Profit and Loss.

(v) The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each Financial year end and adjusted prospectively, if appropriate.

(vi) Depreciation on property, plant and equipment is provided on straight-line method using the useful lives of the assets estimated by the management and in the manner prescribed in Schedule II to the Companies Act 201 3. The asset wise details of useful lives considered for purposes of calculating depreciation are as under:

Office Building	-30 years	Vehicles	-8 years
Furniture	-10 years	Computers	-6 years
Office equipment	-5 years	ComputerSoftwa re	-2 years

(vii) An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greaterthan its estimated recoverable amount.

3. INTANGIBLEASSETS

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed atthe end of each reporting year, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

4. IMPAIRMENT

At the end of each reporting year, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in orderto determine the extent of the impairment loss (if any).

Recoverable a mount is the higher offai rvalue less costs to sell and value in use. In assessing value in use, the estimated future cashflows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money andthe risksspecifictothe assetfor whichthe estimates offuture cashflows have not been adjusted.

Goodwill and intangible assets that do not have definite useful life are not amortised and are tested at least annually for impairment. If events or changes in circumstances indicate that they might be impaired, they are tested for impairment once again.

5. INVESTMENT PROPERTY

Investment Property is property (land or a building - or part of a building - or both) held either to earn rental income or for capital appreciation or both, but not for sale in the ordinary course of business, used in production or supply of goods or services or for administrative purposes. Investment Properties are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

Any gain or loss on disposal of investment property calculated as the difference between the net proceeds from disposal and carrying amountofthe Investment Property shall be recognized inStatement of Profitand Loss,

Depreciation on Investment Property is provided on straight-line method using the useful lives of the assets estimated by management and in the manner prescribed in Schedule II of the Companies Act 201 3. The useful life considered in respect of Building is 60 years and amortization of long term leasehold property classified as Investment Property is based on the balance leaseterm.

6. LEASEACCOUNTING:LEASE CONTRACTS WHERETHECOMPANYIS ALESSEE

(i) All the lease agreements of the Company, where the Company is a Lessee a re in the nature of shortterm leases or are low value leases and are in respect of premises used as staff residences, business premises or Godowns.

(ii) The company has therefore elected to avail the exemption from paras 22-49 of Ind-AS 11 6 and accounted forthe lease payments as per para 6 of the said Ind-AS. Accordingly the entire lease payments associated with these leases have been recognised as an expense on a straight-line basis over the leaseterm or another systematic basis.

LEASE CONTRACTS WHERETHECOMPANYIS ALESSOR

(i) All lease agreements where the Company is a Lessor a re in the nature of''operating leases''.

(ii) All the lease income from operating leases are recognized in the statement of Profit and loss account on a systematic basis.

(iii) The costs, including depreciation, incurred in earning the lease income have been recognized as expenses underthe respective expense heads in the Statement of Profit and Loss.

7. INVENTORIES:Stock in Trade- Traded Goods

Stock in Trade consists of goods traded by the company.

(i) Basis of Valuation: Inventories are stated at lower of cost and net realizable value. The comparison of cost and net realizable value is made on an item-to-item basis.

(ii) Method ofValuation-Cost of inventories comprises of expenditure incurred in the normal course of business in bringing inventories to their present location including appropriate overheads apportioned on a reasonable and consistent basis.

Stock in Trade- Real Estate

It comprises cost of land, rates & taxes, overheads and expenses incidental to the land development, if any undertaken by the Company.

8. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES:

A Subsidiary is an entity that is controlled by another entity. An investor controls an investee if and only if the investor has the following; (i) Power over the investee, (ii) exposure, or rights, to variable returns from its involvement with the investee and (iii) the ability to use its power over the investee to affect the amount of the investor''s returns.

An Associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.

The Company''s investments in its Subsidiaries and Associate are accounted at cost.

9. TRANSACTIONS IN FOREIGN CURRENCY: a) Functional and presentation currency

The Company''s financial statements are prepared in I NR, which is a Iso the Company''s functional and presentation currency.

b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at yea rend exchange rates are generally recognised in the Statement of Profit and Loss.

In case of advance payment for purchase of assets/goods/services and advance receipt against sales of products/ services, all such purchase/sales transaction are recorded at the rate at which such ad vances a re paid/received.

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the Statement of Profit and Loss, within finance costs. All otherforeign exchange gains and losses are presented inthe Statement of Profit and Loss on a net basis within other gains/(losses).

Non-monetary items:

Nonmonetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates atthe dates of the initial transactions,

10. REVENUE RECOGNITION:

The Company derives revenues primarily from sale of products and services. Revenue from sale of goods is recognised net of returns and discou nts.

Revenue is recognised upon transfer of control of promised products orservicesto customers in an amountthat reflectsthe consideration the Company expect to receive in exchange for those products or services.

To recognise revenues, the Company applies the following five step approach:

1) Identifythe contract with a customer;

2) Identifythe performance obligations inthe contract;

3) Determinethetransaction price;

4) Allocate the transaction price to the performance obligations inthe contract; and

5) Recognize revenues when a performance obligation is satisfied.

Based on above principle

• Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. The amount recognised as sale is exclusive of GST and are net of returns.

• Dividendz income is recognised when the right to receive payment is established.

• Interest Income is recognized on time proportion basis taking into account the amount outstanding and the applicable interest rates and is disclosed in "otherincome".

• Rental income arising from operating leases on investment properties is accounted for on a straight-line basis overthe lease terms and is included in other operating income in the statement of profit or loss due to its ope rating nature.

11. EMPLOYEERETIREMENTBENEFITS:

Short term employee benefits

All employee benefits payable/available within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages and bonus, etc., are recognized in the Statement of profit and Loss inthe period in whichthe employee rendersthe related service.

Provident fund

Eligible employees receive benefits from a provident fund, which is a defined contribution plan. Both the employees and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employees''sa la ry.The Company contributes a part of the contributions to the Government administered Provident/Pension Fund. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable through the provident fund scheme as an expense, when an employee renders related services.

Other long term employee benefits

The company has subscribed to a Group Gratuity Accumulation Policy from the Life Insurance Corporation of India, which is a defined benefit plan. The liabilities with respect to Gratuity Plan are determined by actuarial valuation by LIC. The annual premium, as determined, based on such valuation, is paid and charged to the Statement of Profit & Loss Account.The fund value of the accumulated contribution by the Company, which represents the ''Plan Assets'' is Rs.96.46 Lacs which the adequately coversthe estimated Gratuity Liability

The valuation method used by the LIC is Projected Unit credit method. Other acturial assumptions for the policy are as under:-

1. Mortality Rate: LIC(2006 08) Ultimate

2. Withdrawal Rate: 1 %to 3% depending on age

3. Discount Rate: 7% p.a.

4. Salary Escalation: 8%

12. FINANCIALINSTRUMENTS:

Financial assets and financial liabilities are recognised when a Company becomes a party to the contractual provisions of the instruments.

Initial Recognition and Measurement- Financial Assets and Financial Liabilities

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (otherthan financial assets and financial liabilities atfairvalue through profit or loss and ancillary costs related to borrowings) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities atfairvalue through profit or loss are recognised immediately in the Statement of Profit and Loss.

Classification and Subsequent Measurement: Financial Assets

The Company classifies financial assets as subsequently measured at amortised cost, fair value through Other Comprehensive Income ("FVTOCI") or fair value through profit or loss ("FVTPL") on the basis of following:

- the entity''s business modelfor managing thefinancial assets and

- the contractual cashflow characteristics ofthefinancial asset.

Amortised Cost

Afinancial asset is classified and measured at amortised cost if both of the following conditions are met:

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

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

FVTOCI

Afinancial asset is classified and measured at FVTOCI if both of the foil owing conditions are met:

- thefinancial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

FVTPL

A financial asset is classified and measured at FVTPL unless it is measured at amortised cost or at FVTOCI, All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification ofthefinancial assets.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For trade receivables only, the Company applies the simplified approach permitted by Ind AS 1 09 Financial Instruments, which requires expected lifetime lossesto be recognised from initial recognition ofthe receivables.

Classification and Subsequent measurement:

Financial Liabilities The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.financia I guarantee contracts and derivative financial instruments.

Financial Liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition as FVTPL.

Gains or losses on financial liabilities held for trading are recognised in the Statement of Profit and Loss.

Other Financial Liabilities

Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amountoninitial recognition.

Derecognition of Financial Assets and Financial Liabilities

The Company de-recognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset. If the Company enters into transactions whereby ittransfers assets recognised on its balance sheet, but retains eitherall orsubstantially all ofthe risks and rewards of the transferred assets, the transferred assets are not derecognised.

Afinancia I liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offsetthe recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy ofthe Company orthe counter party.

13. TAXES ON INCOME:

Current Tax

Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions ofthe relevant tax laws and based on the expected outcome of assessments/appeals.

Current income tax relating to items recognised directly in equity is recognised in equity and not in the Statement of Profit and Loss.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations aresubjectto interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the Balance Sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax assets are recognised for all deductible temporary differences, the carryforward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extentthat it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extentthat it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised orthe liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside the Statement of Profit and Loss is recognised outside the Statement of Profit Corporate overview statutory reports Financial Statements and Loss. Deferred tax items are recognised in correlation to the underlying transaction either in Other Comprehensive Income or directly in equity.

The break-up ofthe major components ofthe deferred tax assets and liabilities as at Balance Sheet date has been arrived at after setting off deferred tax assets and liabilities where the Company have a legally enforceable right to set-off assets against liabilities and where such assets and liabilities relate to taxes on income levied by the same governing taxation laws.

MAT Credits are in the form of unused tax credits that are carried forward by the Company for a specified period of time, hence it is grouped with DeferredTax Asset.

14. PROVISIONS&CONTINGENTLIABILITIESANDCONTINGENTASSETS:

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognisedforfuture operating losses, if any.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a current pretax rate. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent liabilities are disclosed in the case of:

- a present obligation arising from the past events, when it is not probable that an outflow of resources will be required to settlethe obligation;

- a present obligation a rising from the past events, when no reliable estimate is possible;

- a possible obligation a rising from past events, unless the probability of outflow of resources is remote.

Contingent Assets is disclosed when inflow of economic benefits is probable.

15. 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 preference dividends, if any, and attributable taxes) by the weighted average number of equity shares outstanding duringthe period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders is adjusted for after income tax effect of interest and other financing costs associated with dilutive potential equity shares and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

16. DIVIDEND:

Dividend is recognised as liability in the period in which it is declared by the Company, usually when approved by the shareholders in a general meeting, or paid.

The Company recognizes a liability to make payment of dividend to owners of equity when the distribution is authorized and is no longer at the discretion of the Company and is declared by the shareholders. A corresponding amount is recognised directly in equity.

The annual dividend proposed, if any, by the Directors forms part of the Directors'' Report

17. BORROWING COSTS:

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

18. CASHANDCASHEQUIVALENTS

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short- term deposits with an original maturity of three months or less, which are subject to insignificant risk of changes in value.

For the purpose of statement of cashflow, cash and cash equivalents consist of cash, short-term deposits as defined above, bank overdrafts and short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value as they are considered as an integral part of the Company''s management.

19. SHARE CAPITAL

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares and share options and buyback of ordi nary shares a re recognized as a deduction from equity, net of any tax effects.

20. GOVERNMENTGRANTS, SUBSIDIES AND EXPORTINCENTIVES:

Government Grants are recognised at their realizable value when there is reasonable assurance that the grant will be received and all the attached conditions will be complied with.

When the grant relates to an expense item, it is recognised as income on a systematic basis overthe periods thatthe related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised as income in equal amounts overthe expected useful life ofthe related asset.

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Mar 31, 2018

Note:1 SIGNIFICANT ACCOUNTING POLICIES

1.1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

A. The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (IND AS) notified under the section 133 of the Companies Act 2013 (the Act) read with Companies (Indian Accounting Standards) Rule 2015 (as amended from time to time) and other relevant provisions of the Act. The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities:

i) Certain financial assets and liabilities that is measured at fair value

ii) Defined benefit plans-plan assets measured at fair value

The financial statements are presented in Indian Rupees (‘INR’) and all values are rounded to nearest lakhs (INR.00,000), except when otherwise indicated.

B. Current vs. Non Current classification:

The Company presents assets and liabilities in the balance sheet based on current/non- current classification.

(a) An asset is treated as current when it is:

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

- Held primarily for purpose of trading.

- Expected to be realized within twelve months after the reporting period.

All other assets are classified as non-current.

(b) A liability is current when:

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

- It is held primarily for purpose of trading.

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

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

All other liabilities are classified as non-current.

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

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

C. USE OF ESTIMATES :

The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period. Differences between actual results and estimates are recognised in the year in which the results are known or materialise.

1.2 PROPERTY, PLANT AND EQUIPMENT (PPE)

(i) Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

(ii) The initial cost of an asset comprises its purchase price (including import duties and non-refundable taxes, if any), any costs directly attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by the management, borrowing cost for qualifying assets (i.e. assets that necessarily take a substantial period of time to get ready for their intended use).

(iii) Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

(iv) An item of Property, plant and equipment and any significant part initially recognised separately as part of Property, plant and equipment is de-recognised upon disposal; or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the assets is included in the Statement of Profit and Loss.

(v) The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

(vi) Depreciation on property, plant and equipment is provided on prorata basis on straight-line method using the useful lives of the assets estimated by management and in the manner prescribed in Schedule II of the Companies Act 2013.

1.3 INVESTMENT PROPERTY

Investment Property is property (land or a building - or part of a building - or both) held either to earn rental income or for capital appreciation or both, but not for sale in the ordinary course of business, used in production or supply of goods or services or for administrative purposes. Investment Properties are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

Any gain or loss on disposal of investment property calculated as the difference between the net proceeds from disposal and carrying amount of the Investment Property shall be recognized in Statement of Profit and Loss.

Depreciation on Investment Property is provided on straight-line method using the useful lives of the assets estimated by management and in the manner prescribed in Schedule II of the Companies Act 2013.

1.4. LEASE ACCOUNTING :

(i) All the lease agreements of the Company are in respect of operating lease of the premises (residential and business premises etc.).

(ii) The aggregate lease rentals payable are charged to the Statement of Profit & Loss as Rent Expense.

(iii) The cancellable lease agreements are usually renewable by mutual consent at mutually agreeable terms.Non-cancelable lease agreements for a specified period are renewable at the option of the lessee/licensee at mutually agreed term.

(iv) The aggregate lease rentals receivable for the year is credited to the Statement of Profit & Loss as Rental Income .

1.5. INVENTORIES :

(i) Basis of Valuation: Inventories are stated at lower of cost and net realizable value. The comparison of cost and net realizable value is made on an item-by-item basis.

(ii) Method of Valuation: Cost of inventories comprises of expenditure incurred in the normal course of business in bringing inventories to their present location including appropriate overheads apportioned on a reasonable and consistent basis.

The inventories have been physically taken by the management periodically.

1.6. INVESTMENTS :

Investments are stated at cost except those investments which are to be stated at fair value as per Ind AS. Accordingly:

(a) Investments in Equity/Preference capital of unlisted Subsidiaries and Associates are valued at cost. The company does not have any listed subsidiaries/associates

(b) Investments in unlisted Debt Instruments are valued at Amortised Cost. .

(c) Investments in listed equity instruments are valued at fair value, arrtived at, on the basis of quotes available as at the end of the year.

(d) On disposal of an investment, the difference between its carrying amount and net disposal proceed is charged or credited to the Statement of Profit and Loss.

1.7. TRANSACTIONS IN FOREIGN CURRENCY :

(a) Initial recognition :

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction.

(b) Measurement of foreign currency items at the Balance Sheet date :

Foreign currency monetary items of the Company are reinstated at the closing exchange rates. Non-monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these translations are charged to the Statement of Profit and Loss.

(c) Forward Exchange Contracts :

In respect of the transactions covered by forward exchange contracts, the difference between the year end rates and the exchange rate at the date of contract is recognised in statement of profit and loss and the premium paid on forward contract is recognised over the life of the contract.

1.8. REVENUE RECOGNITION:

Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. The amount recognised as sale is exclusive of CST / VAT and are net of returns.

Dividend income is recognised when the right to receive payment is established.

Interest Income is recognised on time proportion basis taking into account the amount outstanding and the applicable interest rates and is disclosed in “other income”. Interest income earned in the course of the Trading Activity undertaken by the company is classified under ‘operating income’ since the underlying bank deposits are in-extricably linked with such trade and the interest income from such deposits are as much part of the margin from such trade.

Rental income arising from operating leases on investment properties is accounted for on a straight-line basis over the lease terms and is included in other operating income in the statement of profit or loss due to its operating nature.

1.9. EMPLOYEE RETIREMENT OPERATING :

Short term employee benefits

All employee benefits payable/available within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages and bonus, etc., are recognised in the Statement of Profit and Loss in the period in which the employee renders the related service.

Provident fund

Eligible employees receive benefits from a provident fund, which is a defined contribution plan. Both the employees and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employees’ salary. The Company contributes a part of the contributions to the Government administered Provident/Pension Fund. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable through the provident fund scheme as and expense, when an employee renders related services.

Other long term employee benefits

The company has subscribed to a Group Gratuity Accumulation Policy from LIC, which is a defined contribution plan. The liabilities with respect to Gratuity Plan are determined by actuarial valuation by LIC. The premium, as determined, based on such valuation, is paid and charged to the Statement of Profit & Loss account.

1.10. PROVISIONS FOR TAXATION:

Current Taxes:

(i) Current income tax, assets and liabilities are measured at the amount expected to be paid to or recovered from the taxation authorities in accordance with the Income Tax Act, 1961 and the Income Computation and Disclosure Standards (ICDS) enacted in India by using tax rates and the tax laws that are enacted at the reporting date.

(ii) Current income tax relating to item recognised outside the statement of profit and loss is recognised outside profit or loss (either in other comprehensive income or equity). Current tax items are recognised in correlation to the underlying transactions either in OCI or directly in equity.

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date to reassess realisation.

1.11. PROVISIONS & CONTINGENCIES:

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

1.12. EARNING PER SHARE:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share consolidation, without a corresponding change in resources, if any.

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 number of shares outstanding during the period are adjusted for the effect of all potentially dilutive equity shares, if any.

The company has not issued any potentially dilutive equity shares.

1.13. PROPOSED DIVIDEND:

Under Ind AS, proposed dividend is recognised as liability in the period in which it is declared by the Company, usually when approved by the shareholders in a general meeting, or paid.

The Company recognizes a liability to make payment of dividend to owners of equity when the distribution is authorized and is no longer at the discretion of the Company and is declared by the shareholders . A corresponding amount is recognised directly in equity.

The annual dividend proposed, if any, by the Directors forms part of the Directors’ Report

1.14. BORROWING COSTS:

Borrowing Costs that are directly attributable to acquisition, construction or production of a qualifying asset are capitalised. Other borrowing costs are expensed out.

1.15 CASH AND CASH EQUIVALENTS:

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to insignificant risk of changes in value.

1.16 OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES:

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet, if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

1.17 Several debit and credit balances are subject to confirmation by parties.

1.18 GOVERNMENT GRANTS, SUBSIDIES AND EXPORT INCENTIVES:

Government Grants are recognised at their realizable value when there is reasonable assurance that the grant will be received and all the attached conditions will be complied with.

When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset.

The company is an exporter and receives grants in the form of Duty Drawbacks, Import entitlement etc. The same are recognized, subject to the policy stated in para 1 above, in the year in which the export sales are made and the company is eligible for the grants/incentive and when there is no uncertainity about its realisation.

The company has only one class of shares referred to as equity shares having a par value of Rs. 10/-. Each Holder of equity share is entitled to one vote per share.In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts in proportion to the number of equity shares held by the share holders.

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Mar 31, 2016

1.1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

A. SYSTEM OF ACCOUNTING :

The Financial statements are prepared under the historical cost convention on accrual basis of accounting, in accordance with Generally Accepted Accounting Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act,2013.

B. USE OF ESTIMATES :

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period.

1.2. FIXED ASSETS AND DEPRECIATION :

All fixed assets are stated at cost, comprising of purchase price, duty, levies and any direct attributable cost of bringing the assets to their working condition for the intended use. Depreciation is provided according to straight line method on the basis of useful lives of the assets as prescribed by the Schedule II to the Companies Act, 2013 and Provision for impairment loss is recognized to the extent by which the carrying amount of an asset exceeds its recoverable amount.

1.3. LEASE ACCOUNTING :

(i) All the lease agreements of the Company are in respect of operating lease of the premises (residential and business premises etc.).

(ii) The aggregate lease rentals payable are charged to the Statement of Profit & Loss as Rent Expense.

(iii) The cancellable lease agreements are usually renewable by mutual consent at mutually agreeable terms. Non-cancelable lease agreements for a specified period are renewable at the option of the lessee/licensee at mutually agreed term.

(iv) The aggregate lease rentals receivable for the year is credited to the Statement of Profit & Loss as Rental Income.

1.4. INVENTORIES :

Inventories are valued at cost arrived at FIFO basis or net realizable value whichever is lower.

1.5. INVESTMENTS :

Investments are stated at cost less fall in their market value, if considered permanent.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss. Profit or Loss on sale of investments is determined on a first-in-first-out (FIFO) basis.

1.6. TRANSACTIONS IN FOREIGN CURRENCY :

a) Initial recognition :

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction.

b) Measurement of foreign currency items at the Balance Sheet date :

Foreign currency monetary items of the Company are reinstated at the closing exchange rates. Non-monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these translations are charged to the Statement of Profit and Loss.

c) Forward Exchange Contracts :

In respect of the transactions covered by forward exchange contracts, the difference between the yearend rates and the exchange rate at the date of contract is recognized in statement of profit and loss and the premium paid on forward contract is recognized over the life of the contract.

1.7. REVENUE RECOGNITION:

Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the buyer. The amount recognized as sale is exclusive of CST / VAT and are net of returns.

Dividend income is recognized when the right to receive payment is established.

Interest income is recognized on the time proportion basis.

1.8. EMPLOYEE RETIREMENT BENEFITS :

a. Company’s contribution to Employees’ Provident Fund is charged to Statement of Profit and Loss.

b. Company has taken a Group Gratuity Cash Accumulation Policy from LIC for its employees including directors and the premium for the policy is charged to Statement of Profit and Loss.

1.9. PROVISIONS FOR TAXATION:

Tax expense comprises of current tax (i.e. amount of tax for the period determined in accordance with the Income Tax Act, 1961) and deferred tax charge or credit (reflecting the tax effects of timing difference between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date to reassess realization.

1.10. PROVISIONS & CONTINGENCIES:

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

1.11. EARNING PER SHARE:

The Basic and Diluted Earnings Per Share (“EPS”) is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

1.12. PROPOSED DIVIDEND:

Dividend recommended by the Board of directors is provided for in the accounts, pending approval at the Annual General Meeting except in case of interim dividend.

1.13. CASH AND CASH EQUIVALENTS:

Cash and cash equivalents comprises cash on hand, cash in bank, fixed deposits and other short term highly liquid investments with an original maturity of three months or less that are readily convertible into known amount of cash and which are subject to an insignificant risk of change in value.

1.14. CASH FLOW STATEMENT:

Cash flows are reported using the indirect method whereby cash flows from operating, investing and financing activities of the Company are segregated and profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

1.15. BORROWING COSTS:

Borrowing Costs that are directly attributable to acquisition, construction or production of a qualifying asset are capitalized. Other borrowing costs are expensed out.

1.16. GOVERNMENT GRANTS, SUBSIDIES AND EXPORT INCENTIVES:

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty about its realization.

2.1 The company has only one class of shares referred to as equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts in proportion to the number of equity shares held by the share holders.

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Mar 31, 2015

1.1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

A. SYSTEM OF ACCOUNTING :

The Financial statements are prepared under the historical cost convention on accrual basis of accounting, in accordance with Generally Accepted Accounting Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act,2013.

B. USE OF ESTIMATES :

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period.

1.2. FIXED ASSETS AND DEPRECIATION :

All fixed assets are stated at cost, comprising of purchase price, duty, levies and any direct attributable cost of bringing the assets to their working condition for the intended use. Depreciation is provided according to straight line method on the basis of useful lives of the assets as prescribed by the Schedule II to the Companies Act, 2013 and Provision for impairment loss is recognised to the extent by which the carrying amount of an asset exceeds its recoverable amount.

1.3. LEASE ACCOUNTING :

(i) All the lease agreements of the Company are in respect of operating lease of the premises (residential and business premises etc.).

(ii) The aggregate lease rentals payable are charged to the Statement of Profit & Loss as Rent Expense.

(iii) The cancellable lease agreements are usually renewable by mutual consent at mutually agreeable terms. Non- cancellable lease agreements for a specified period are renewable at the option of the lessee/licensee at mutually agreed term.

(iv) The aggregate lease rentals receivable for the year is credited to the Statement of Profit & Loss as Rental Income.

1.4. INVENTORIES :

Inventories are valued at cost arrived at FIFO basis or net realisable value whichever is lower.

1.5. INVESTMENTS :

Investments are stated at cost less fall in their market value, if considered permanent.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit & Loss. Profit or Loss on sale of investments is determined on a first-in-first-out (FIFO) basis.

1.6. TRANSACTIONS IN FOREIGN CURRENCY :

a) Initial recognition :

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction.

b) Measurement of foreign currency items at the Balance Sheet date :

Foreign currency monetary items of the Company are reinstated at the closing exchange rates. Non-monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these translations are charged to the Statement of Profit & Loss.

c) FORWARD EXCHANGE CONTRACTS :

In respect of the transactions covered by forward exchange contracts, the difference between the year end rates and the exchange rate at the date of contract is recognised in statement of profit & loss and the premium paid on forward contract is recognised over the life of the contract.

1.7. REVENUE RECOGNITION:

Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. The amount recognised as sale is exclusive of CST / VAT and are net of returns.

Dividend income is recognised when the right to receive payment is established.

Interest income is recognised on the time proportion basis.

1.8. EMPLOYEE RETIREMENT BENEFITS :

a) Company's contribution to Employees' Provident Fund is charged to Statement of Profit & Loss.

b) Company has taken a Group Gratuity Cash Accumulation Policy from LIC for its employees including directors and the premium for the policy is charged to Statement of Profit & Loss.

1.9. PROVISIONS FOR TAXATION:

Tax expense comprises of current tax (i.e. amount of tax for the period determined in accordance with the Income Tax Act, 1961) and deferred tax charge or credit (reflecting the tax effects of timing difference between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future ; however, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date to reassess realisation.

1.10. PROVISIONS & CONTINGENCIES:

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

1.11. EARNING PER SHARE:

The Basic and Diluted Earnings Per Share ("EPS") is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

1.12. PROPOSED DIVIDEND:

Dividend recommended by the Board of directors is provided for in the accounts, pending approval at the Annual General Meeting.

1.13. BORROWING COSTS:

Borrowing Costs that are directly attributable to acquisition, construction or production of a qualifying asset are capitalised. Other borrowing costs are expensed out.

1.14. GOVERNMENT GRANTS, SUBSIDIES AND EXPORT INCENTIVES:

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

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Mar 31, 2014

1.1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

A. SYSTEM OF ACCOUNTING :

The Financial statements are prepared under the historical cost convention on accrual basis of accounting, in accordance with Generally Accepted Accounting Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act,1956.

B. USE OF ESTIMATES :

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period.

1.2. FIXED ASSETS AND DEPRECIATION :

All fixed assets are stated at cost, comprising of purchase price, duty, levies and any direct attributable cost of bringing the assets to their working condition for the intended use.Depreciation is provided according to straight line method at the rates prescribed by the Schedule XIV to the Companies Act, 1956 and Provision for impairment loss is recognised to the extent by which the carrying amount of an asset exceeds its recoverable amount.

1.3. LEASE ACCOUNTING :

(i) All the lease agreements of the Company are in respect of operating lease of the premises (residential and business premises etc.).

(ii) The aggregate lease rentals payable are charged to the Statement of Profit & Loss as Rent.

(iii) The cancellable lease agreements are usually renewable by mutual consent at mutually agreeable terms. Non-cancelable lease agreements for a specified period are renewable at the option of the lessee/licensee at mutually agreed term.

(iv) The aggregate lease rentals receivable for the year is credited to the statement of Profit & loss as Rental Income .

1.4. INVENTORIES :

Inventories are valued at cost arrived at FIFO basis or net realisable value whichever is lower.

1.5. INVESTMENTS :

Investments are stated at cost less fall in their market value, if considered permanent.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss. Profit or Loss on sale of investments is determined on a frst-in-frst-out (FIFO) basis.

1.6. TRANSACTIONS IN FOREIGN CURRENCY :

a) Initial recognition :

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction.

b) Measurement of foreign currency items at the Balance Sheet date :

Foreign currency monetary items of the Company are reinstated at the closing exchange rates. Non-monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these translations are charged to the Statement of Profit and Loss.

c) Forward Exchange Contracts :

In respect of the transactions covered by forward exchange contracts, the difference between the year end rates and the exchange rate at the date of contract is recognised in statement of Profit and loss and the premium paid on forward contract is recognised over the life of the contract.

rHUUUUISLIMIItU

1.7. REVENUE RECOGNITION:

Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. The amount recognised as sale is exclusive of sales tax / VAT and are net of returns.

Dividend income is recognised when the right to receive payment is established.

Interest income is recognised on the time proportion basis.

1.8. EMPLOYEE RETIREMENT BENEFITS :

a. Company''s contribution to Employees'' Provident Fund is charged to Statement of Profit and Loss.

b. Company has taken a Group Gratuity Cash Accumulation Policy from LIC for its employees including directors and the premium for the policy is charged to Statement of Profit and Loss.

1.9. PROVISIONS FOR TAXATION:

Tax expense comprises of current tax (i.e. amount of tax for the period determined in accordance with the Income Tax Act, 1961) and deferred tax charge or credit (refecting the tax effects of timing difference between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date to reassess realisation.

1.10. PROVISIONS & CONTINGENCIES:

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

1.11. EARNING PER SHARE:

The Basic and Diluted Earnings Per Share ("EPS") is computed by dividing the net Profit after tax for the year by weighted average number of equity shares outstanding during the year.

1.12. PROPOSED DIVIDEND:

Dividend recommended by the Board of directors is provided for in the accounts, pending approval at the Annual General Meeting.

1.13. BORROWING COSTS:

Borrowing Costs that are directly attributable to acquisition, construction or production of a qualifying asset are capitalised. Other borrowing costs are expensed out.

1.14. GOVERNMENT GRANTS, SUBSIDIES AND EXPORT INCENTIVES:

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

KUTT1AHI

PRODUCTS LIMITED

5(a)(i) Description of the Security Given: Bank of India: Prime Securities:

First pari passu charge by way of Hypothecation of Stocks and book debts.

Collateral Securities:

Exclusive charge by way of equitable mortgage of Property at Bangalore owned by other Company. Personal guarantee of two directors. Corporate guarantee by other company.

Allahabad Bank:

Prime Securities:

Hypothecation charge on current assets of the company both current and future , ranking pari passu with other multiple bankers.

Collateral Securities:

Term Deposit worth Rs. 400 lacs, equitable mortgage of property at Noida, equitable mortgage of property/ fixed deposit receipt worth Rs. 10 crores and personal guarantee of two directors.Corporate guarantee by a wholly owned Subsidiary Company.

Canara Bank:

Prime Securities:

Hypothection of Stocks, Book Debts and other current assets(existing and future)

Collateral Securities:

Equitable mortgage of property at Banglore owned by an other company. Term Deposit of Rs. 403 lacs, personal guarantee of two directors and corporate guarantee by a wholly owned Subsidiary Company.Corporate guarantee by two other companies.

Punjab National Bank:

Prime Securities:

Hypothecation charge on current assets of the company.

Collateral Securities:

Equitable mortgage of property at Bangalore owned by wholly owned subsidiary and personal guarantee of two directors. Corporate guarantee by a wholly owned subsidiary company.

UCO Bank:

pRIME sECURITIES:

First pari passu charge by way of hypothecation on the entire movable fixed and current assets of the company (both current and future) with existing Working Capital lenders.

Collateral Securities:

Rs. 300 lacs by way of collateral in the form of Term Deposit Receipt. Personal guarantee of two directors.

Indian Overseas Bank: Prime Securities:

First pari passu charge on stock and all other current assets.

Collateral Securities:

Term Deposit worth Rs. 100 lacs, equitable mortgage of property at Bangalore owned by other company and personal guarantee of two directors.Corporate guarantee by two other companies.

State Bank of India:

Prime Securities:

Hypothecation charge on current assets of the company both current and future.

Collateral Securities:

Mutual Fund worth Rs. 1715 lacs and personal guarantee of two directors.

5(a)(ii) Default in terms of repayment of principal and interest - NIL

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Mar 31, 2013

1.1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

A. SYSTEM OF ACCOUNTING :

The Financial statements are prepared under the historical cost convention on accrual basis of accounting, in accordance with Generally Accepted Accounting Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act,1956.

B. USE OF ESTIMATES :

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period.

1.2. FIXED ASSETS AND DEPRECIATION :

All fixed assets are stated at cost, comprising of purchase price, duty, levies and any direct attributable cost of bringing th e assets to their working condition for the intended use.Depreciation is provided according to straight line method at the rates prescribed by the Schedule XIV to the Companies Act, 1956 and Provision for impairment loss is recognised to the extent by which the carrying amount of an asset exceeds its recoverable amount.

1.3. LEASE ACCOUNTING :

(i) All the lease agreements of the Company are in respect of operating lease of the premises (residential and business premises etc.).

(ii) The aggregate lease rentals payable are charged to the Statement of Profit & Loss as Rent.

(iii) The cancellable lease agreements are usually renewable by mutual consent at mutually agreeable terms. Non - cancellable lease aggreements for a specified period are renewable at the option of the lessee/licensee at mutually agreed term.

(iv) The aggregate lease rentals receivable for the year is credited to the statement of profit & loss as Rental Income.

1.4. INVENTORIES :

Inventories are valued at cost arrived at FIFO basis or net realisable value whichever is lower.

1.5. INVESTMENTS :

Investments are stated at cost less fall in their market value, if considered permanent.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss. Profit or Loss on sale of investments is determined on a fiEst-in-fiEst-out (FIFO) basis.

1.6. TRANSACTIONS IN FOREIGN CURRENCY :

a) Initial recognition :

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction.

b) Measurement of foreign currency items at the Balance Sheet date :

Foreign currency monetary items of the Company are reinstated at the closing exchange rates. Non-monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these translations are charged to the Statement of Profit and Loss.

c) Forward Exchange Contracts :

In respect of the transactions covered by forward exchange contracts, the difference between the year end rates and the exchange rate at the date of contract is recognised in statement of profit and loss and the premium paid on forward contract is recognised over the life of the contract.

1.7. REVENUE RECOGNITION:

Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. The amount recognised as sale is exclusive of sales tax / VAT and are net of returns.

Dividend income is recognised when the right to receive payment is established.

Interest income is recognised on the time proportion basis.

1.8. EMPLOYEE RETIREMENT BENEFITS :

a. Company''s contribution to Employees'' Provident Fund is charged to Statement of Profit and Loss.

b. Company has taken a Group Gratuity Cash Accumulation Policy from LIC for its employees including directors and the premium for the policy is charged to Statement of Profit and Loss.

1.9. PROVISIONS FOR TAXATION:

Tax expense comprises of current tax (i.e. amount of tax for the period determined in accordance with the Income Tax Act, 1961) and deferred tax charge or credit (reflecting the tax effects of timing difference between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date to reassess realisation.

1.10. PROVISIONS & CONTINGENCIES:

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflo w of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resource s is remote, no provision or disclosure is made.

1.11. EARNING PER SHARE:

The Basic and Diluted Earnings Per Share ("EPS") is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

1.12. PROPOSED DIVIDEND:

Dividend recommended by the Board of directors is provided for in the accounts, pending approval at the Annual General Meeting.

1.13. BORROWING COSTS:

Borrowing Costs that are directly attributable to acquisition, construction or production of a qualifying asset are capitalised. Other borrowing costs are expensed out.

1.14. GOVERNMENT GRANTS, SUBSIDIES AND EXPORT INCENTIVES:

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainity in receiving the same.

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Mar 31, 2012

1.1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

A. SYSTEM OF ACCOUNTING :

The Financial statements are prepared under the historical cost convention on accrual basis of accounting, in accordance with Generally Accepted Accounting Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act,1956.

B. USE OF ESTIMATES :

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period.

C. PRESENTATION AND DISCLOSURES IN FINANCIAL STATEMENTS :

For the year ended 31st March, 2012, the revised Schedule VI notified under the Companies Act, 1956, is applicable to the Company, for presentation and disclosures in financial statements. The Company has reclassified the previous year's figures in accordance with the revised Schedule VI as applicable in the current year.

1.2. FIXED ASSETS AND DEPRECIATION

All fixed assets are stated at cost, comprising of purchase price, duty, levies and any direct attributable cost of bringing the assets to their working condition for the intended use. Depreciation is provided according to straight line method at the rates prescribed by the Schedule XIV to the Companies Act, 1956 and Provision for impairment loss is recognised to the extent by which the carrying amount of an asset exceeds its recoverable amount.

1.3. LEASE ACCOUNTING :

(i) All the lease agreements of the Company are in respect of operating lease of the premises (residential and business premises etc.).

(ii) The aggregate lease rentals payable are charged to the Profit & Loss Account as Rent.

(iii) The cancellable lease agreements are usually renewable by mutual consent at mutually agreeable terms.

(iv) The aggregate lease rentals receivable for the year is credited to the profit & loss as Rental Income.

1.4. INVENTORIES :

Inventories are valued at cost arrived at FIFO basis or net realisable value whichever is lower.

1.5. INVESTMENTS :

Investments are stated at cost less fall in their market value, if considered permanent. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss. Profit or Loss on sale of investments is determined on a first-in-first-out (FIFO) basis.

1.6. TRANSACTIONS IN FOREIGN CURRENCY :

a) Initial recognition :

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction.

b) Measurement of foreign currency items at the Balance Sheet date :

Foreign currency monetary items of the Company are reinstated at the closing exchange rates. Non-monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these translations are charged to the Statement of Profit and Loss.

c) Forward Exchange Contracts :

In respect of the transactions covered by forward exchange contracts, the difference between the year end rates and the exchange rate at the date of contract is recognised in Statement of Profit and Loss and the premium paid on forward contract is recognised over the life of the contract.

1.7. REVENUE RECOGNITION:

Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. The amount recognised as sale is exclusive of sales tax / VAT and are net of returns. Dividend income is recognised when the right to receive payment is established. Interest income is recognised on the time proportion basis.

1.8. EMPLOYEE RETIREMENT BENEFITS :

a. Company's contribution to Employees' Provident Fund is charged to Statement of Profit and Loss.

b. Company has taken a Group Gratuity Cash Accumulation Policy from LIC for its employees including directors and the premium for the policy is charged to Statement of Profit and Loss.

1.9. PROVISIONS FOR TAXATION:

Tax expense comprises of current tax (i.e. amount of tax for the period determined in accordance with the Income Tax Act, 1961) and deferred tax charge or credit (reflecting the tax effects of timing difference between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future ; however, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date to reassess realisation.

1.10. PROVISIONS & CONTINGENCIES:

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

1.11. EARNING PER SHARE:

The Basic and Diluted Earnings Per Share ("EPS") is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

1.12. PROPOSED DIVIDEND:

Dividend recommended by the Board of directors is provided for in the accounts, pending approval at the Annual General Meeting.

1.13. BORROWING COSTS:

Borrowing Costs that are directly attributable to acquisition, construction or production of a qualifying asset are capitalised. Other borrowing costs are expensed out.

1.14. GOVERNMENT GRANTS, SUBSIDIES AND EXPORT INCENTIVES:

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

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Mar 31, 2011

(1) System of Accounting :

The Financial statements are prepared under the historical cost convention on accrual basis of accounting, in accordance with Generally Accepted Accounting Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act,1956.

(2) Fixed Assets and Depreciation :

All fixed assets are stated at cost, comprising of purchase price, duty, levies and any direct attributable cost of bringing the assets to their working condition for the intended use.

Depreciation is provided according to straight line method at the rates prescribed by the Schedule XIV to the Companies Act, 1956 and Provision for impairment loss is recognised to the extent by which the carrying amount of an asset exceeds its recoverable amount.

(3) Investments :

Investments are stated at cost less fall in their market value, if considered permanent.

(4) Inventories :

Inventories are valued at cost arrived at FIFO basis or net realisable value whichever is lower.

(5) Sales :

Sales are recognised on despatch of goods to the customers, net of commercial taxes i.e. central sales tax / value added tax and net of return, if any.

(6) Foreign Currency Transactions :

Foreign currency transactions are accounted at the exchange rates prevailing at the date of the transaction. Gains / Losses resulting from the settlement of such transactions and from conversion of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

In respect of the transactions covered by forward exchange contracts, the difference between the year end rates and the exchange rate at the date of contract is recognised in Profit & Loss Account and the premium paid on forward contract is recognised over the life of the contract.

(7) Borrowing Cost :

Borrowing Cost that are directly attributable to acquisition, construction or production of a qualifying asset are capitalised. Other borrowings costs are expensed out.

(8) Employee Retirement Benefits :

a. Company's contribution to Employees' Provident Fund is charged to Profit and Loss Account.

b. Company has taken a Group Gratuity Cash Accumulation Policy from LIC for its employees including directors and the premium for the policy is charged to Profit and Loss Account.

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Mar 31, 2010

(1) System of Accounting :

The Financial statements are prepared under the historical cost convention on accrual basis of accounting, in accordance with Generally Accepted Accounting Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act,1956.

(2) Fixed Assets and Depreciation :

All ixed assets are stated at cost, comprising of purchase price, duty, levies and any direct attributable cost of bringing the assets to their working condition for the intended use.

Depreciation is provided according to straight line method at the rates prescribed by the Schedule XIV to the Companies Act, 1956 and Provision for impairment loss is recognised to the extent by which the carrying amount of an asset exceeds its recoverable amount.

(3) Investments :

Investments are stated at cost less fall in their market value,considered permanent.

(4) Inventories :

Inventories are valued at cost or net realisable value whichever is lower. Cost of Raw Material, Packing Material, Stores & Perfumes and Trading Items is arrived at FIFO basis.

Cost of Finished Goods & Work in Process is arrived on the basis of weighted average cost of raw material, packing material and the cost of conversion thereof for bringing the inventories to their intended use.

(5) Sales :

Sales are recognised on despatch of goods to the customers and are recorded including excise duty but excluding commercial taxes i.e. central sales tax / value added tax / entry tax.

(6) Foreign Currency Transactions :

Foreign currency transactions are accounted at the exchange rates prevailing at the date of the transaction. Gains / Losses resulting from the settlement of such transactions and from conversion of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

(7) Employee Retirement Benefits :

a. Companys contribution to Employees Provident Fund is charged to Profit and Loss Account.

b. Company has taken a Group Gratuity Cash Accumulation Policy from LIC for its employees including directors and the premium for the policy is charged to Profit and Loss Account.