Accounting Policies of Makers Laboratories Ltd. Company

Mar 31, 2025

3.2.4 Material Accounting Policy Information

i. Current and non-current classification

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

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

An asset is current when :

- It is expected to be realised or intended to be sold or consumed in normal
operating cycle, or

- It is held primarily for the purpose of trading, or

- It is expected to be realised within twelve months after the reporting period, or

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

All other assets are classified as non-current.

A liability is current when :

- It is expected to be settled in normal operating cycle, or

- It is held primarily for the purpose of trading, or

- 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. The Company classifies all other
liabilities as non-current.

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

ii. Property, Plant and Equipment

a) Freehold land is carried at historical cost. All other items of property, plant and
equipment are stated at historical cost less depreciation. Cost of acquisition
comprises its purchase price including import duties and other non-refundable
taxes or levies and any directly attributable cost of bringing the asset to its
working condition for its intended use; any trade discount and rebates are
deducted in arriving at the purchase price.

b) Stores and spares which meet the definition of Property, Plant and Equipment
and satisfy the recognition criteria of Ind AS 16 are capitalised as Property, Plant
and Equipment.

c) Capital Work In Progress represents expenditure incurred on capital assets
that are under construction or are pending capitalisation and includes
project expenses pending allocation. Project expenses pending allocation are
apportioned to the Property, Plant and Equipment of the project proportionately
on capitalization.

d) Cost of borrowing for assets taking substantial time to be ready for use is
capitalised for the period up to the time the asset is ready for its intended use.

e) Subsequent costs are included in the asset’s carrying amount or recognised as
a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the
item can be measured reliably. The carrying amount of any component accounted
for as a separate asset is derecognised when replaced. All other repairs and
maintenance are charged to profit or loss during the reporting period in which
they are incurred.

f) The residual useful life of Property, Plant & Equipment is reviewed at each
balance sheet date and adjusted if required in the depreciation rates.

g) Depreciation methods, estimated useful lives and residual value

Depreciation on all assets of the Company is charged on straight line method
over the useful life of assets mentioned in Schedule II to the Companies Act,
2013 or the useful life previously assessed by the management based on
technical review whichever is lower for the proportionate period of use during
the year. Intangible assets are amortised over the economic useful life estimated
by the management.

iii. Intangible assets

The Company has elected to fair value its intangible assets on transition date.
Intangible assets are amortized over their respective individual estimated useful lives
on a straight-line basis, from the date that they are available for use. The estimated
useful life of an identifiable intangible asset is based on a number of factors including
the effects of obsolescence, demand, competition, and other economic factors (such
as the stability of the industry, and known technological advances), and the level of
maintenance expenditures required to obtain the expected future cash flows from the
asset. Amortization methods and useful lives are reviewed periodically including at
each financial year end.

The factors that the Company considers in determining the allowance for slow
moving, obsolete and other non-saleable inventory in determining net realisable
value include ageing of inventory, estimated shelf life, price changes, introduction of
competitive new products and such other related factors.

Cost in case of Raw material and Packing material, Stores and Spare and Traded
Goods include purchase cost net of refundable taxes and other overheads incurred in
bringing such items of inventory to its present location and condition.

v. Borrowings

General and specific borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalised during the period of
time that is required to complete and prepare the asset for its intended use or sale.
Qualifying assets are assets that necessarily take a substantial period of time to get
ready for their intended use or sale. Other borrowing costs are expensed in the period
in which they are incurred.

vi. Cash and cash equivalents.

Cash and cash equivalents include cash in hand, demand deposits in banks and other
short-term highly liquid investments with original maturities of three months or less.
Bank overdrafts are shown within bank borrowings in current liabilities in the balance
sheet.

vii. Revenue recognition

a. The Company derives revenues primarily from sale of products and services.
Revenue from sale of goods is recognised net of returns, product expiry claims
and discounts.

Revenue is recognized on satisfaction of performance obligations upon transfer
of control of promised products or services to customers in an amount that
reflects the consideration the Company expects to receive in exchange for those
products or services.

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

1. Identify the contract with a customer;

2. Identify the performance obligations in the contract;

3. Determine the transaction price;

4. Allocate the transaction price to the performance obligations in the contract;

5. Recognize revenues when a performance obligation is satisfied.

Performance obligation may be satisfied over time or at a point in time.
Performance obligations are satisfied over time if any one of the following
criteria is met. In such cases, revenue is recognized over time.

1. The customer simultaneously receives and consumes the benefits provided
by the Company’s performance; or

2. The Company’s performance creates or enhances an asset that the customer
controls as the asset is created or enhanced; or

3. The Company’s performance does not create an asset with an alternative use
to the Company and the Company has an enforceable right to payment for
performance completed to date.

For performance obligations where one of the above conditions are not met,
revenue is recognised at the point in time at which the performance obligation is
satisfied.

Where Revenue is recognized over time, the amount of revenue is determined on
the basis of contract costs incurred in relation to estimated contract expenses.

Revenue is measured based on the consideration specified in a contract with a
customer and excludes amounts collected on behalf of third parties.

Revenue in respect of transactions through parties acting as agents is recognised
only on completion of the performance obligation of the agent with corresponding
accrual of agency commissions.

The Company presents revenues net of indirect taxes in its statement of profit
and loss.

b. In case of export benefits which are in the nature of neutralisation of duties and
taxes are grouped under material costs. All other export incentives are grouped
under other operating revenue.

c. Revenue in respect of insurance/other claims, commission, etc. are recognised
only when it is reasonably certain that the ultimate collection will be made.

d. For all debt instruments measured either at amortised cost or at fair value
through other comprehensive income, interest income is recorded using the
effective interest rate (EIR)Interest income is included in finance income in the
statement of profit and loss.

viii. Impairment of assets

Carrying amount of Tangible assets, Intangible assets, Investments in Subsidiaries,
Joint Venture and Associates (which are carried at cost) are tested for impairment
whenever events or changes in circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised for the amount by which the
asset’s carrying amount exceeds its recoverable amount. The recoverable amount is
the higher of an asset’s fair value less costs of disposal 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 asset. In determining fair
value less costs of disposal, recent market transactions are taken into account. If no
such transactions can be identified, an appropriate valuation model is used.

For the purposes of assessing impairment, assets are grouped at the lowest levels
for which there are separately identifiable cash inflows which are largely independent
of the cash inflows from other assets or Company’s assets (cash-generating units).
Non- financial assets other than goodwill that suffered an impairment are reviewed
for possible reversal of the impairment at the end of each reporting period.

ix. Leases

The Company, as a lessee, recognizes a right-of-use asset and a lease liability for
its leasing arrangements, if the contract conveys the right to control the use of an
identified asset.

The contract conveys the right to control the use of an identified asset, if it involves
the use of an identified asset and the Company has substantially all of the economic
benefits from use of the asset and has right to direct the use of the identified
asset. The cost of the right-of-use asset shall comprise of the amount of the initial
measurement of the lease liability adjusted for any lease payments made at or
before the commencement date plus any initial direct costs incurred. The right-of-
use assets is subsequently measured at cost less any accumulated depreciation,
accumulated impairment losses, if any and adjusted for any remeasurement of the
lease liability. The right-of-use assets is depreciated using the straight-line method
from the commencement date over the shorter of lease term or useful life of right-of-
use asset.

The Company measures the lease liability at the present value of the lease payments
that are not paid at the commencement date of the lease. The lease payments are
discounted using the interest rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined, the Company uses incremental
borrowing rate.

For short-term and low value leases, the Company recognizes the lease payments as
an operating expense on a straight-line basis over the lease term.

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Mar 31, 2024

3.2.4 Material Accounting Policy Information

i. Current and non-current classification

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

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

An asset is current when :

- I t is expected to be realised or intended to be sold or consumed in normal operating cycle, or

- It is held primarily for the purpose of trading, or

- It is expected to be realised within twelve months after the reporting period, or

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

All other assets are classified as non-current.

A liability is current when :

- It is expected to be settled in normal operating cycle, or

- It is held primarily for the purpose of trading, or

- 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. The Company classifies all other liabilities as non-current.

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

ii. Property, Plant and Equipment

a) Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation. Cost of acquisition comprises its purchase price including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade discount and rebates are deducted in arriving at the purchase price.

b) Stores and spares which meet the definition of Property, Plant and Equipment and satisfy the recognition criteria of Ind AS 16 are capitalised as Property, Plant and Equipment.

c) Capital Work In Progress represents expenditure incurred on capital assets that are under construction or are pending capitalisation and includes project expenses pending allocation. Project expenses pending allocation are apportioned to the Property, Plant and Equipment of the project proportionately on capitalization.

d) Cost of borrowing for assets taking substantial time to be ready for use is capitalised for the period up to the time the asset is ready for its intended use.

e) Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

f) The residual useful life of Property, Plant & Equipment is reviewed at each balance sheet date and adjusted if required in the depreciation rates.

g) Depreciation methods, estimated useful lives and residual value

Depreciation on all assets of the Company is charged on straight line method over the useful life of assets mentioned in Schedule II to the Companies Act ,2013 or the useful life previously assessed by the management based on technical review whichever is lower for the proportionate period of use during the year. Intangible assets are amortised over the economic useful life estimated by the management.

iii. Intangible assets

The Company has elected to fair value its intangible assets on transition date. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, and known technological advances), and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. Amortization methods and useful lives are reviewed periodically including at each financial year end.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is derecognised.

iv. Inventories

Items of inventories are valued at lower of cost or estimated net realisable value as given below:

The factors that the Company considers in determining the allowance for slow moving, obsolete and other non-saleable inventory in determining net realisable value include ageing of inventory, estimated shelf life, price changes, introduction of competitive new products and such other related factors.

Cost in case of Raw material and Packing material, Stores and Spare and Traded Goods include purchase cost net of refundable taxes and other overheads incurred in bringing such items of inventory to its present location and condition.

Borrowings

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Other borrowing costs are expensed in the period in which they are incurred.

vi. Cash and cash equivalents.

Cash and cash equivalents include cash in hand, demand deposits in banks and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown within bank borrowings in current liabilities in the balance sheet.

vii. Revenue recognition

a. The Company derives revenues primarily from sale of products and services. Revenue from sale of goods is recognised net of returns, product expiry claims and discounts.

Revenue is recognized on satisfaction of performance obligations upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services.

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

1. Identify the contract with a customer;

2. Identify the performance obligations in the contract;

3. Determine the transaction price;

4. Allocate the transaction price to the performance obligations in the contract;

5. Recognize revenues when a performance obligation is satisfied.

Performance obligation may be satisfied over time or at a point in time. Performance obligations are satisfied over time if any one of the following criteria is met. In such cases, revenue is recognized over time.

1. The customer simultaneously receives and consumes the benefits provided by the Company’s performance; or

2. The Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or

3. The Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date.

For performance obligations where one of the above conditions are not met, revenue is recognised at the point in time at which the performance obligation is satisfied.

Where Revenue is recognized over time, the amount of revenue is determined on the basis of contract costs incurred in relation to estimated contract expenses.

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties.

Revenue in respect of transactions through parties acting as agents is recognised only on completion of the performance obligation of the agent with corresponding accrual of agency commissions.

The Company presents revenues net of indirect taxes in its statement of profit and loss.

b. In case of export benefits which are in the nature of neutralisation of duties and taxes are grouped under material costs. All other export incentives are grouped under other operating revenue.

c. Revenue in respect of insurance/other claims, commission, etc. are recognised only when it is reasonably certain that the ultimate collection will be made.

d. For all debt instruments measured either at amortised cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR)Interest income is included in finance income in the statement of profit and loss.

viii. Impairment of assets

Carrying amount of Tangible assets, Intangible assets, Investments in Subsidiaries, Joint Venture and Associates (which are carried at cost) are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal 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 asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or Company’s assets (cash-generating units). Non- financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

ix. Leases

The Company, as a lessee, recognizes a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys the right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Company has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.

For short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the lease term.

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Mar 31, 2017

a. Basis of Preparation of Financial Statements:

i) The Financial Statements have been prepared to comply in all material respects with the notified accounting standards by the Companies Accounting Standards Rules, 2006 specified in Section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention, on an accrual basis of accounting. The classification of assets and liabilities of the Company is done into current and non-current based on the operating cycle of the business of the Company. The operating cycle of the business of the Company is less than twelve months and therefore all current and non-current classifications are done based on the status of realisability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Schedule III to the Companies Act, 2013.

ii) Change in Accounting Policy: The accounting policies adopted in the preparation of financial statements are consistent with those used in the previous year.

b. Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of financial statements and reported amounts of income and expenses during the period. The estimates and assumptions used in the financial statements are based upon the management’s evaluation of the relevant facts and circumstances as on the date of financial statements. Accounting estimates could change from period to period. Actual results could differ from those estimates.

c. Revenue Recognition:

i) Revenue from sale of goods is recognized net of returns on transfer of significant risk and rewards in respect of ownership to the buyer which is generally on dispatch of goods. Local sales includes excise duty.

ii) Revenue in respect of insurance/other claims, commission, etc. are recognized only when it is reasonably certain that ultimate collection will be made.

iii) Interest income is recognized on time proportion basis.

iv) Dividend income is accounted when the right to receive the same is established.

d. Fixed Assets:

i) Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized till the assets are ready for use and include financing costs relating to any borrowing attributable to the acquisition of qualifying fixed assets. Capital work in progress and intangible assets in progress comprises the cost of fixed assets that are not yet ready for their intended use at the reporting date.

ii) Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

e. Depreciation / Amortization / Impairment:

i) Depreciation on Fixed Assets is provided on the useful lives of the assets in the manner prescribed in Schedule II of Companies Act, 2013 on Straight Line Method at Dombivli and Head Office and on Written Down Value Method at Ahmedabad. Depreciation for asset purchased/sold during a period is proportionately charged. Intangible Asset are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use.

ii) Impairment of assets is ascertained at each balance sheet date in respect of the Company’s Fixed Assets. An impairment loss is recognized whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

iii) Fixed Assets individually costing up to Rs. 5,000/- are fully depreciated in the year of purchase.

f. Leased Asset :- Operating Leases:

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognized as operating lease. Lease payments under operating leases are recognized as an expenses with reference to lease terms and other considerations.

g. Foreign Currency Transactions:

Transactions denominated in foreign currency settled / negotiated during a month are recorded at exchange rate on the date of settlement / negotiation. Foreign currency transaction remaining not settled / negotiated at the end of each month are converted into rupees at the month end rates. All gains or losses on foreign exchange transaction are recognized in the Statement of Profit and Loss.

h. Investments:

Long term investment are stated at cost. Diminution in the value of investment is provided for by reducing the value of investments and charging the same to Statement of Profit & Loss.

i. Inventories:

j. Employee Benefits:

i) Contribution to Provident Fund and Family Pension Fund are charged to Statement of Profit & Loss.

ii) Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them

iii) Leave encashable on retirement has been provided for on the basis of actuarial valuation.

iv) Leave Travel Assistance (LTA) Liability has been accounted based on actual accumulated obligation.

k. Taxation:

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.

Deferred Tax is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

l. Cash Flow Statement:

Cash flows are reported using indirect method, whereby net profits after tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

m. Cash and Cash Equivalent:

Cash and cash equivalents in the Balance Sheet comprise cash at bank, cheques on hand, cash in hand and short term investments with an original maturity of three months or less.

n. Earnings Per Share:

The earnings considered in ascertaining the Company’s earnings per share comprise the net profit after tax and include the post-tax effect of any extra-ordinary items. The number of shares used in computing basic earnings per share, is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the shares considered for deriving basic earnings per share and also number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

o. Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

p. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the Company has a present obligation as a result of past event and its probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. The provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect current best estimates. Contingent liabilities are not recognized in the financial statements but disclosed in Notes to Accounts. A contingent asset is neither recognized nor disclosed in the financial statements.

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Mar 31, 2016

a. Basis of Preparation of Financial Statements:

i) The Financial Statements have been prepared to comply in all material respects with the notified accounting standards by the Companies Accounting Standards Rules, 2006 specified in Section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention, on an accrual basis of accounting.

The classification of assets and liabilities of the Company is done into current and non-current based on the operating cycle of the business of the Company. The operating cycle of the business of the Company is less than twelve months and therefore all current and non-current classifications are done based on the status of reliability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Schedule III to the Companies Act, 2013.

ii) "Change in Accounting Policy: The accounting policies adopted in the preparation of financial statements are consistent with those used in the previous year."

b. Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of financial statements and reported amounts of income and expenses during the period. The estimates and assumptions used in the financial statements are based upon the management''s evaluation of the relevant facts and circumstances as on the date of financial statements. Accounting estimates could change from period to period. Actual results could differ from those estimates

c. Revenue Recognition:

i) Revenue from sale of goods is recognized net of returns on transfer of significant risk and rewards in respect of ownership to the buyer which is generally on dispatch of goods. Local sales includes excise duty.

ii) Revenue in respect of insurance/other claims, commission, etc. are recognized only when it is reasonably certain that ultimate collection will be made.

iii) Interest income is recognized on time proportion basis.

iv) Dividend income is accounted when the right to receive the same is established.

d. Fixed Assets:

Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized till the assets are ready for use and include financing costs relating to any borrowing attributable to the acquisition of qualifying fixed assets. Capital work in progress and Intangible assets in progress comprises the cost of fixed assets that are not yet ready for their intended use at the reporting date.

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

e. Depreciation / Amortization / Impairment:

Depreciation on Fixed Assets is provided on the useful lives of the assets in the manner prescribed in Schedule II of Companies Act, 2013. Depreciation for asset purchased/sold during a period is proportionately charged. Intangible Asset are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the company for its use.

Impairment of assets is ascertained at each balance sheet date in respect of the Company''s Fixed assets. An impairment loss is recognized whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

f. Leased Asset :- Operating Leases:

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognized as operating lease. Lease payments under operating leases are recognized as an expenses with reference to lease terms and other considerations.

g. Foreign Currency Transactions:

Transactions denominated in foreign currency settled / negotiated during a month are recorded at exchange rate on the date of settlement / negotiation. Foreign currency transaction remaining not settled / negotiated at the end of each month are converted into rupees at the month end rates. All gains or losses on foreign exchange transaction are recognized in the Statement of Profit and Loss.

h. Investments:

Long term Investment are stated at cost. Diminution in the value of Investment is provided for by reducing the value of investments and charging the same to Statement of Profit & Loss.

i. Inventories:

Item of inventories are valued on the basis given below:

Raw Materials and Packing Materials : At cost net of CENVAT computed on First-In-First-Out

-method.

Work- in- process and Finished Goods : At cost including material cost net of CENVAT, labour cost and production overheads incurred till the stage of completion of production for Work-In-Process and the same or net realizable value whichever is lower in case of Finished Goods. Excise duty is considered as cost of finished goods wherever applicable.

Stores & Spares : Stores and spare parts are valued at purchase cost.

j. Employee Benefits:

i) Contribution to Provident Fund and Family Pension Fund are charged to Statement of Profit & Loss.

ii) Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them

iii) Leave encashable on retirement has been provided for on the basis of actuarial valuation.

iv) Leave Travel Assistance (LTA) Liability has been accounted based on actual accumulated obligation.

k. Taxation:

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.

Deferred Tax is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods

l. Cash Flow Statement:

Cash flows are reported using indirect method, whereby net profits after tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

m. Cash and Cash Equivalent:

Cash and cash equivalents in the Balance Sheet comprise cash at bank, cheques on hand, cash in hand and short term investments with an original maturity of three months or less.

n. Earnings Per Share:

The earnings considered in ascertaining the Company''s earnings per share comprise the net profit after tax and include the post-tax effect of any extra-ordinary items. The number of shares used in computing basic earnings per share, is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the shares considered for deriving basic earnings per share and also number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

o. Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

p. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the Company has a present obligation as a result of past event and its probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. The provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect current best estimates. Contingent liabilities are not recognized in the financial statements but disclosed in Notes to Accounts.

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Mar 31, 2015

A. Basis of Preparation of Financial Statements:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for change in the accounting policy for depreciation as more fully described in point no. 2 (e) below.

b. Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of financial statements and reported amounts of Income and Expenses during the period. The estimates and assumptions used in the financial statements are based upon the management's evaluation of the relevant facts and circumstances as on the date of financial statements. Accounting estimates could change from period to period. Actual results could differ from those estimates

c. Revenue Recognition:

i) Revenue from sale of goods is recognised net of returns on transfer of significant risk and rewards in respect of ownership to the buyer which is generally on dispatch of goods. Local sales includes excise duty.

ii) Revenue in respect of insurance/other claims, commission, etc. are recognised only when it is reasonably certain that ultimate collection will be made.

iii) Interest income is recognised on time proportion basis.

iv) Dividend income is accounted when the right to receive the same is established.

d. Fixed Assets:

Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized till the assets are ready for use and include financing costs relating to any borrowing attributable to the acquisition of qualifying fixed assets. Capital work in progress and Intangible assets in progress comprises the cost of fixed assets that are not yet ready for their intended use at the reporting date.

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

e. Depreciation / Amortization / Impairment:

Depreciation on Fixed Assets is provided on the useful lives of the assets in the manner prescribed in Schedule II of Companies Act, 2013. Depreciation for asset purchased/sold during a period is proportionately charged. Intangible Asset are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use.

I mpairment of assets is ascertained at each balance sheet date in respect of the Company's Fixed assets. An impairment loss is recognised whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

f. Leased Asset :- Operating Leases:

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognized as operating lease. Lease payments under operating leases are recognized as an expenses with reference to lease terms and other considerations.

g. Foreign Currency Transactions:

Transactions denominated in foreign currency settled / negotiated during a month are recorded at exchange rate on the date of settlement / negotiation. Foreign currency transaction remaining not settled / negotiated at the end of each month are converted into rupees at the month end rates. All gains or losses on foreign exchange transaction are recognised in the Statement of Profit and Loss.

h. Investments:

Long term Investment are stated at cost. Diminution in the value of Investment is provided for by reducing the value of investments and charging the same to Statement of Profit & Loss.

i. Inventories:

Item of inventories are valued on the basis given below:

Raw Materials and Packing Materials

At cost net of CENVAT computed on First-In-First-Out -method.

Work- in- process and Finished Goods

At cost including material cost net of CENVAT, labour cost and production overheads incurred till the stage of completion of production for Work-In-Process and the same or net realisable value whichever is lower in case of Finished Goods. Excise duty is considered as cost of finished goods wherever applicable

Stores & Spares

Stores and spare parts are valued at purchase cost.

j. Employee Benefits:

i) Contribution to Provident Fund and Family Pension Fund are charged to Statement of Profit & Loss.

ii) Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them

iii) Leave encashable on retirement has been provided for on the basis of actuarial valuation.

iv) Leave Travel Assistance (LTA) Liability has been accounted based on actual accumulated obligation.

k. Taxation:

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.

Deferred Tax is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

l. Cash Flow Statement:

Cash flows are reported using indirect method, whereby net profits after tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

m. Cash and Cash Equivalent:

Cash and cash equivalents in the Balance Sheet comprise cash at bank, cheques on hand, cash in hand and short term investments with an original maturity of three months or less.

n. Earnings Per Share:

The earnings considered in ascertaining the Company's earnings per share comprise the net profit after tax and include the post-tax effect of any extra-ordinary items. The number of shares used in computing basic earnings per share, is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the shares considered for deriving basic earnings per share and also number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

o. Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

p. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the Company has a present obligation as a result of past event and its probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. The provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect current best estimates. Contingent liabilities are not recognized in the financial statements but disclosed in Notes to Accounts. A contingent asset is neither recognized nor disclosed in the financial statements.

Note: i) Employer's contribution includes payments made by the Company directly to its past employees.

ii) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

iii) The Company's Gratuity fund is managed by Life Insurance Corporation of India. The plan assets under the fund are deposited under approved securities.

Note : In accordance with the provisions of Schedule II to the Companies Act, 2013, effective from 1st April,2014, the Company has revised the useful lives of its fixed assets. As a consequence of such revision the charge for depreciation for the year is higher than the previously applied rates by Rs. 52,16,109/-. For assets that have completed the useful lives as a consequence of the aforesaid revision, the carrying value as on 1st April,2014 of Rs. 5,78,545/- has been charged to the opening balance of the surplus in Statement of Profit & Loss net of deferred tax effect thereon of Rs. 2,00,000/-.

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Mar 31, 2013

A) Accounting Convention

The financial statements have been prepared to comply in all material respects with the notified accounting standards by the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention, on an accrual basis of accounting.

The classification of assets and liabilities of the Company is done into current and non-current based on the operating cycle of the business of the Company. The operating cycle of the business of the Company is less than twelve months and therefore all current and non-current classifications are done based on the status of reliability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Revised Schedule VI to the Companies Act, 1956

The accounting policies adopted in the preparation of financial statements are consistent with those used in the previous year.

b) Use of Estimates

The preparation of the financial statements in conformity with the Generally Accepted Accounting Principles applicable in India and the provisions of the Companies Act,1956 requires that the Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, disclosure of the contingent liabilities as at the date of the Financial Statements and reported amount of the revenue and expenses during the reported year. Actual results could differ from those Estimates.

c) Inflation

Assets and Liabilities are shown at historical cost and no adjustments are made for changes in purchasing power of money.

d) Fixed Assets

i) Fixed Assets are recorded at cost of acquisition or construction less CENVAT / Service Tax Credit availed.

ii) Intangible assets are recorded at cost of acquisition.

e) Depreciation, Amortization and Impairment

Depreciation on fixed assets is charged on straight line method at Dombivli and Head Office and on Written Down Value method at Ahmadabad in accordance with the rates and in the manner specified in Schedule XIV to the Companies Act,1956.

Intangible assets are amortized over the economic useful life estimated by the Management.

Impairment of assets is ascertained at each balance sheet date in respect of the Company''s Fixed assets. An impairment loss is recognized whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

f) Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

g) Investments

Long term Investments are stated at cost. Diminution in the value of Investments is provided for by reducing the value of investments and charging the same to Statement of Profit & Loss.

h) Inventories

Item of inventories are valued on the basis given below:

Raw Materials and Packing Materials : At cost net of CENVAT computed on First-In-First-Out method. Work- in- process and Finished Goods : At cost including material cost net of CENVAT, labour cost and production overheads incurred till the stage of completion of production for Work-In- Process and the same or net realizable value whichever is lower in case of Finished Goods. Excise duty is considered as cost of finished goods wherever applicable.

Stores & Spares : Stores and spare parts are valued at purchase cost.

i) Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at bank,cheques on hand, cash in hand and short term investments with an original maturity of three months or less.

j) CENVAT Credit

CENVAT Credit utilized during the year is accounted for in excise duty expenses account and unutilized CENVAT balance at the year end is considered as advance excise duty.

k) Service Tax Credit

Service Tax credit utilized during the year towards excise liability is accounted in Excise duty and unutilized Service Tax credit at the year end is considered as advance excise duty.

l) Sales

Local Sales include Excise duty.

m) Revenue Recognition

Revenue in respect of insurance / other claims, interest, commission etc. are recognized only when it is reasonably certain that the ultimate collection will be made.

n) Contingent Liabilities

These are disclosed by way of notes to the accounts . Provision is made in respect of those liabilities which are likely to materialize after the year end, till the finalization of accounts and have material effect on the position stated in the Balance Sheet.

o) Retirement Benefits

i) Contribution to Provident Fund and Family Pension Fund are charged to Statement of Profit & Loss.

ii) Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them

iii) Leave encashable on retirement has been provided for on the basis of actuarial valuation.

iv) Leave Travel Assistance (LTA) Liability has been accounted based on actual accumulated obligation.

p) Research & Development

Revenue expenditure on research & development is charged to Statement of Profit & Loss in the year in which it is incurred. Capital expenditure on Research & Development is considered as addition to fixed assets.

q)Foreign Exchange Transactions

Transactions denominated in foreign currency settled / negotiated during a month are recorded at exchange rate on the date of settlement / negotiation. Foreign currency transaction remaining not settled / negotiated at the end of each month are converted into rupees at the month end rates. All gains or losses on foreign exchange transaction are recognized in the Statement of Profit and Loss.

r) Taxation

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act,1961. Deferred Tax is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2012

A) Accounting convention

The financial statements have been prepared to comply in all material respects with the notified accounting standards by the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention, on an accrual basis of accounting.

The classification of assets and liabilities of the Company is done into current and non-current based on the operating cycle of the business of the Company. The operating cycle of the business of the Company is less than twelve months and therefore all current and non-current classifications are done based on the status of reliability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Revised Schedule VI to the Companies Act, 1956.

The accounting policies adopted in the preparation of financial statements are consistent with those used in the previous year, except for the change in accounting policy explained herein below.

The Company was presenting local sales inclusive of sales tax and excise duty, the same is now presented inclusive of excise duty only. The impact of this change on the profit/loss for the year is Rs. Nil.

b) Use of Estimates

The preparation of the financial statements in conformity with the Generally Accepted Accounting Principles applicable in India and the provisions of the Companies Act,1956 requires that the Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, disclosure of the contingent liabilities as at the date of the Financial Statements and reported amount of the revenue and expenses during the reported year. Actual results could differ from those Estimates.

c) Inflation

Assets and Liabilities are shown at historical cost and no adjustments are made for changes in purchasing power of money.

d) Fixed Assets

i) Fixed Assets are recorded at cost of acquisition or construction less CENVAT / Service Tax Credit availed.

ii) Intangible assets are recorded at cost of Acquisition.

e) Depreciation, Amortization and Impairment

Depreciation on fixed assets is charged on Straight Line method at Dombivli and Head Office and on Written Down Value method at Ahmadabad in accordance with the rates and in the manner specified in Schedule XIV to the Companies Act,1956.

Intangible assets are amortized over the economic useful life estimated by the Management. Impairment of assets is ascertained at each balance sheet date in respect of the Company's Fixed Assets. An impairment loss is recognized whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

f) Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

g) Investments

Long term Investments are stated at cost. Diminution in the value of Investments is provided for by reducing the value of investments and charging the same to Statement of Profit & Loss.

h) Inventories

Item of inventories are valued on the basis given below:

Raw Materials and Packing Materials : At cost net of CENVAT computed on First-In-First- Out method.

Work- in- process and Finished Goods : At cost including material cost net of CENVAT, labour cost and production overheads incurred till the stage of completion of production for Work-In-Process and the same or net realizable value whichever is lower in case of Finished Goods. Excise duty is considered as cost of finished goods wherever applicable.

Stores & Spares : Stores and spare parts are valued at purchase cost.

i) Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprise cash at bank,cheques on hand, cash in hand and short term investments with an original maturity of three months or less.

j) CENVAT Credit

CENVAT Credit utilized during the year is accounted for in excise duty expenses account and unutilized CENVAT balance at the year end is considered as advance excise duty,

k) Service Tax Credit

Service Tax credit utilized during the year towards excise liability is accounted in Excise duty and unutilized Service Tax credit at the year end is considered as advance excise duty.

l) Sales

Local Sales include Excise duty.

m) Revenue Recognition

Revenue in respect of insurance / other claims, interest, commission etc. are recognized only when it is reasonably certain that the ultimate collection will be made.

n) Contingent Liabilities

These are disclosed by way of notes to the accounts . Provision is made in respect of those liabilities which are likely to materialize after the year end, till the finalization of accounts and have material effect on the position stated in the Balance Sheet.

o) Retirement Benefits

i) Contribution to Provident Fund and Family Pension Fund are charged to Statement of Profit & Loss.

ii) Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them

iii) Leave encashable on retirement has been provided for on the basis of actuarial valuation.

iv) Leave Travel Assistance (LTA) Liability has been accounted based on actual accumulated obligation.

p) Research & Development

Revenue expenditure on research & development is charged to Statement of Profit & Loss in the year in which it is incurred. Capital expenditure on Research & Development is considered as addition to fixed assets.

q) Foreign Exchange Transactions

Transactions denominated in foreign currency settled / negotiated during a month are recorded at exchange rate on the date of settlement / negotiation. Foreign currency transaction remaining not settled / negotiated at the end of each month are converted into rupees at the month end rates. All gains or losses on foreign exchange transaction are recognized in the Statement of Profit and Loss.

r) Taxation

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act,1961. Deferred Tax is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2011

A) System of Accounting

The Company follows accrual system of accounting for all items of revenue and costs.

b) Use of Estimates

The preparation of the financial statements in conformity with the Generally Accepted Accounting Principles applicable in India and the provisions of the Companies Act, 1956 requires that the Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, disclosure of the contingent liabilities as at the date of the Financial Statements and reported amount of the revenue and expenses during the reported year. Actual results could defer from those Estimates.

c) Inflation

Assets and Liabilities are shown at historical cost and no adjustments are made for changes in purchasing power of money.

d) Fixed Assets

i) Fixed Assets are recorded at cost of acquisition or construction less CENVAT/ Service Tax Credit availed. ii) Intangible Assets are recorded at cost of acquisition.

e) Depreciation, Amortisation and Impairment

Depreciation on fixed assets is charged on straight line method at Dombivli and Head Office and on Written Down Value method at Ahmedabad in accordance with the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

Intangible assets are amortised over the economic useful life estimated by the Management.

Impairment of assets is ascertained at each balance sheet date in respect of the Companys fixed assets. An impairment loss is recognised whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

f) Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

g) Investments

Long term Investments are stated at cost. Diminution in the value of Investments is provided for by reducing the value of investments and charging the same to Profit & Loss Account.

h) Inventories

Item of inventories are valued on the basis given below:

Raw Materials and Packing Materials : At cost net of CENVAT computed on First-In-First-Out method.

Work- in- process and Finished Goods: At cost including material cost net of CENVAT, labour cost and production overheads incurred till the stage of completion of production for Work-In-Process and the same or net realisable value whichever is lower in case of Finished Goods. Excise duty is considered as cost of finished goods wherever applicable.

Stores & Spares: Stores and spare parts are valued at purchase cost.

i) CENVAT Credit

CENVAT Credit utilised during the year is accounted for in excise duty expenses account and unutilised CENVAT balance at the year end is considered as advance excise duty.

j) Service Tax Credit

Service Tax credit utilised during the year towards excise liability is accounted in Excise duty and unutilised Service Tax credit at the year end is considered as advance excise duty.

k) Sales

Local Sales include Excise duty & Sales tax. Export sales include exchange difference on realisation / negotiation.

l) Revenue Recognition

Revenue in respect of insurance/ other claims, interest, commission etc. are recognised only when it is reasonably certain that the ultimate collection will be made.

m) Contingent Liabilities

These are disclosed by way of notes to the accounts. Provision is made in respect of those liabilities which are likely to materialise after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

n) Retirement Benefits

i) Contribution to Provident Fund and Family Pension Fund are charged to Profit & Loss Account.

ii) Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them

iii) Leave encashable on retirement has been provided for on the basis of actuarial valuation.

iv) Leave Travel Assistance (LTA) Liability has been accounted based on actual accumulated obligation.

o) Research & Development

Revenue expenditure on research & development is charged to Profit & Loss Account in the year in which it is incurred. Capital expenditure on Research & Development is considered as addition to fixed assets.

p) Foreign Exchange Transactions

Transactions denominated in foreign currency settled / negotiated during a month are recorded at exchange rate on the date of settlement/negotiation. Foreign currency transaction remaining not settled/negotiated at the end of each month are converted into rupees at the month end rates. All gains or losses on foreign exchange transaction are recognised in the Profit and Loss Account.

q) Taxation

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act,1961.

Deferred Tax is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

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Mar 31, 2010

(a) System of Accounting

The Company follows accrual system of accounting for all items of revenue and costs.

(b) Use of Estimates

The preparation of the financial statements in conformity with the Generally Accepted Accounting Principles applicable in India and the provisions of the Companies Act,1956 requires that the Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, disclosure of the contingent liabilities as at the date of the Financial Statements and reported amount of the revenue and expenses during the reported year. Actual results could defer from those Estimates.

(c) Inflation

Assets and Liabilities are shown at historical cost and no adjustments are made for changes in purchasing power of money.

(d) Fixed Assets

i) Fixed Assets are recorded at cost of acquisition or construction less CENVAT/Service Tax Credit availed. ii) Intangible Assets are recorded at cost of acquisition.

(e) Depreciation, Amortisation and Impairment

Depreciation on fixed assets is charged on straight line method in accordance with the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

Intangible assets are amortised over the economic useful life estimated by the Management.

Impairment of assets is ascertained at each balance sheet date in respect of the Companys Fixed assets. An impairment loss is recognised whenever carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

(f) Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

(g) Investments

Long term Investments are stated at cost. Diminution in the value of Investments is provided for by reducing the value of investments and charging the same to Profit & Loss Account.

(g) Inventories

Item of inventories are valued on the basis given below:

Raw Materials and Packing Materials: At cost net of CENVAT computed on First-In-First-Out -method.

Work- in- process and Finished Goods: At cost including material cost net of CENVAT, labour cost and

production overheads incurred till the stage of completion of production for Work-In-Process and the same or net realisable value whichever is lower in case of Finished Goods. Excise duty is considered as cost of finished goods wherever applicable.

Stores & Spares: Stores and spare parts are valued at purchase cost.

(i) CENVAT Credit

CENVAT Credit utilised during the year is accounted for in excise duty expenses account and unutilised CENVAT balance at the year end is considered as advance excise duty.

(j) Service Tax Credit

Service Tax credit utilised during the year towards excise liability is accounted in Excise duty and unutilised Service Tax credit at the year end is considered as advance excise duty.

(k) Sales

Local Sales include Excise Duty & Sales Tax. Export sales include exchange difference on realisation / negotiation.

(l) Revenue Recognition

Revenue in respect of insurance/other claims, interest, commission etc., are recognised only when it is reasonably certain that the ultimate collection will be made.

(m) Contingent Liabilities

These are disclosed by way of notes to the accounts. Provision is made in respect of those liabilities which are likely to materialise after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

(n) Retirement Benefits

i) Contribution to Provident Fund and Family Pension Fund are charged to Profit & Loss Account.

ii) Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them.

iii) Leave encashable on retirement has been provided for on the basis of actuarial valuation.

iv) Leave Travel Assistance (LTA) Liability has been accounted based on actual accumulated obligation.

(o) Research & Development

Revenue expenditure on research & development is charged to Profit & Loss Account in the year in which it is incurred. Capital expenditure on Research & Development is considered as addition to fixed assets.

(p) Foreign Exchange Transactions

Transactions denominated in foreign currency settled/negotiated during a month are recorded at exchange rate on the date of settlement/negotiation. Foreign currency transaction remaining not settled/negotiated at the end of each month are converted into rupees at the month end rates. All gains or losses on foreign exchange transaction are recognised in the Profit and Loss Account.

(q) Taxation

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act,1961.

Deferred Tax is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.