Accounting Policies of Natraj Proteins Ltd. Company

Mar 31, 2024

b) material accounting policies:

1. a) Basis of Preparation of Financial Statements: The financial statements have been prepared in
accordance with the generally accepted accounting principles in India. The company has prepared these
financial statements to comply with all material aspects with the Indian Accounting Standards notified under
section 133 of the Companies Act 2013, read with Companies (Indian Accounting Standards) Rules, 2015,
as Amended. The financial statements have been prepared on accrual basis under the historical cost
convention. The financial statements are prepared on a going concern basis.

The accounting policies adopted in the preparation of financial statements are consistent with those of the
previous year and there are no changes in the accounting policies during the year.

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

A Company shall classify an asset as current when:

(a) it expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;

(b) it holds the asset primarily for the purpose of trading;

(c) it expects to realize the asset within twelve months after the reporting period; or

(d) the asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to
settle a liability for at least twelve months after the reporting period. A Company shall classify all other
assets as non-current

A Company shall classify a liability as current when:

(a) it expects to settle the liability in its normal operating cycle;

(b) it holds the liability primarily for the purpose of trading;

(c) the liability is due to be settled within twelve months after the reporting period; or

(d) it does not have an unconditional right to defer settlement of the liability for at least twelve months after
the reporting period. Terms of a liability that could, at the option of the counterparty, result in its
settlement by the issue of equity instruments do not affect its classification. A Company shall classify
all other liabilities as non-current.

b) Use of Estimates and Judgment: -

The preparation of financial statements in accordance with Ind AS requires management to make
judgments, estimates and assumptions that affect the application of accounting policies and the reported
amount of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates
and assumptions are reviewed on an ongoing basis. Revisions to the accounting estimate recognized in the
period in which the estimates are known or materialized.

3. Cash Flow Statement

The cash flow statement is prepared under indirect method as per the guidelines issued by the Institute of
Chartered Accountants of India.

Cash and Cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short
term investments with an original maturity of three months or less.

4. Revenue:-

Revenue from contract with customers is recognized when all of the following criteria is met:

(a) the parties to the contract have approved the contract (in writing, orally or in accordance with other customary
business practices) and are committed to perform their respective obligations;

(b) the Company can identify each party''s rights regarding the goods or services to be transferred;

(c) the Company can identify the payment terms for the goods or services to be transferred;

(d) the contract has commercial substance (ie the risk, timing or amount of the Company''s future cash flows is
expected to change as a result of the contract); and

(e) it is probable that the Company will collect the consideration to which it will be entitled in exchange for the
goods or services that will be transferred to the customer. In evaluating whether collect ability of an amount of
consideration is probable, a Company shall consider only the customer''s ability and intention to pay that
amount of consideration when it is due. The amount of consideration to which the Company will be entitled
may be less than the price stated in the contract if the consideration is variable because the Company may
offer the customer a price concession.

When a performance obligation is satisfied, a Company shall recognize as revenue the amount of the transaction
price (which excludes estimates of variable consideration) that is allocated to that performance obligation.

The transaction price is the amount of consideration to which a Company expects to be entitled in exchange for
transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for
example, GST). The consideration promised in a contract with a customer may include fixed amounts, variable
amounts, or both.

GST on sales is not included in the transaction price. Since this tax is collected on value added to the transaction
price on behalf of Government, accordingly it is excluded from Revenue.

The Insurance claims, Capital subsidy withheld payments on account of rebates, claims, bargain settlement etc
are accounted for when the right to receive the rebate or liability to pay the rebate, claims , bargain settlement is
established and there is no significant uncertainty regarding the ultimate collection or liability to pay is established.

5. Export Incentives

Export incentive receivable is accrued when the right to receive credit is established and there is no significant
uncertainty regarding the ultimate collection.

6. Interest Income

Interest Income in bank deposits including margin money deposits are accounted for as per contracted interest
rates for the reporting period.

7. Property, Plant and Equipment:

Property, Plant and Equipment are measured at cost (which includes capitalized borrowing costs) less

accumulated depreciation and accumulated impairment losses if any. It is recognized only when it is probable that
the future economic benefits associated with the asset will flow to the Company and cost of the asset can be
measured reliably.

The cost of an item of Property, Plant, Equipment comprises of

(i) its purchase price, including import duties and non refundable purchase taxes, after deducting discounts and
rebates if any

(ii) any costs directly attributable to bringing the asset to the location and condition necessary for it to be
capable of operating in the manner intended by the management.

(iii) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is
located.

If significant parts of an item of Property, Plant and Equipment have different useful lives, then they are accounted
for as separate items (major components) of Property, Plant and Equipment and depreciated accordingly.

Any gain or loss on disposal of an item of Property, Plant and Equipment is recognized in Statement of Profit and
Loss.

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the
expenditure will flow to the company and the expenditure can be measured reliably.

The residual value, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively.

8. Intangible Assets:

Intangible Assets are recognized at cost when it is probable that the expected future economic benefits associated
with the asset will flow to the Company and cost can be measured reliably.

Computer software has a definite useful life and are measured at cost less accumulated amortization and any
accumulated impairment losses.

Computer software is amortized over their estimated useful life or 3 years whichever is lower. The amortization
methods, useful lives and residual values are reviewed at each reporting date and adjusted, if required.

9. Indirect Expenses on Expansion

In respect of independent project, indirect expenses relating to the project are accounted separately and shall be
capitalized at the time of commencement of commercial production. In respect of expansion facilities which are
carried concurrently with production facilities of existing units, expenses on administration and supervision
incurred on expansion (the bifurcation of which between production and construction activities could not be
ascertained) are charged to revenue as the total amount of such expenses is not considered material in the
context of expansion expenditure.

10. Depreciation

Depreciation is calculated using the straight line method, at rates arrived at based on useful life estimated by
management in case of all assets except for Refinery Machinery. In case of Refinery Machinery the same is
calculated on written down value basis. It is charged to profit and loss. The company has used the following useful
life to provide depreciation on its fixed assets. (Useful life in Number of year)

The useful life of assets is same as per Schedule II of the Companies Act 2013.

Intangible assets: Software is amortized on straight line basis over a period of 3 years.

Depreciation is computed with reference to cost. The residual value and useful life of the assets are reviewed and
adjusted, if appropriate, at the end of each reporting period. Further there are no major additions to the Property,
Plant and Equipment during the past 3 years except the installation of Solar Power Plant, Rice Mill plant. Gains and
losses on disposal are determined by comparing proceeds with carrying amounts . These are included in the
statement of profit and loss. Gains and losses on disposal are determined by comparing proceeds with carrying
amounts

11. Impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts.
Recoverable amount is the higher of an asset''s fair value less cost to sell and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the continuing use of the asset and from its
disposal at he end of its useful life. Fair value less cost to sell is the amount obtainable from sale of the asset in an
arm''s length transaction between knowledgeable, willing parties, less the costs of disposal. The testing of
impairment is done when there are indicators of impairment. Indicators are assessed at the end of each reporting
date. During the year there is no impairment loss of any asset.

12. Borrowing Costs

Borrowing cost directly attributable to the acquisition or construction of qualifying asset is capitalized as part of the
cost of the asset, up to the date the asset is put to use. Other borrowing costs are charged to the statement of Profit
and Loss in the year in which they are incurred.

13. Employee Benefits.

(i) Defined Contribution Plans: A defined contribution plan is a post employment benefit plan under which
company pays fixed contribution into a separate Company and will have no legal or constructive obligation to

pay further amounts. The company makes specified monthly contribution towards government administered
Provident fund Scheme.

Obligations for contributions to defined contribution plans are expensed as the related service is provided.
Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in further
payments is available.

All Leave encashment dues for the year are settled within the same year are charged to statement of profit
and loss. Short term benefits are expensed as the related service is provided.

(ii) Defined Benefit Plans:-

Company''s liability towards gratuity is considered as a Defined Benefit Plan .The company pays gratuity to
the employees who have completed 5 years of service with the company at the time when employee leaves
the company. The gratuity is paid as per the provisions of Payment of Gratuity Act, 1972. The liability in
respect of gratuity is calculated using the Projected Unit Credit Method and spread over the periods during
which the benefit is expected to be derived from employees'' services. The present value of obligation
towards gratuity is determined on actuarial valuation as certified by actuarial valuer. Actuarial gains and
losses are recognized in full in the period in which they occur in the statement of profit and loss.

The Gratuity plan for the company is a defined benefit scheme where annual contributions as demanded by the
insurer are deposited to a Gratuity Trust Fund established to provide gratuity benefits. The Fund has taken a
scheme of insurance, whereby these contributions are transferred to the insurer.

Re measurement of defined benefit plans in respect of post employment are charged to other comprehensive
income.

14. Taxes on Income

Tax expenses comprise both current tax and deferred tax at the applicable enacted/ substantively enacted rates.
Current tax represents the amount of income tax payable in respect of the taxable income for the reporting period.

Tax is recognized in the statement of profit and loss, except to the extent that it relates to items recognized in the
other comprehensive income or in equity. In such cases, the tax is also recognized in the other comprehensive
income or in equity.

Deferred tax represents the effects of timing differences between taxable income and accounting income for the
reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

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 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 is realized, based on the tax rated and tax laws that have enacted or subsequently
enacted by the end of the reporting period.

The carrying amount of Deferred Tax Liabilities and assets are reviewed at the end of each reporting period.

Deferred tax asset is recognized to the extent that it is probable that future taxable profit will be available against
which they can be used.

Provision for current tax is made in the accounts on the basis of estimated tax liability as per applicable provision of
the Income Tax Act 1961 and considering assessment orders and decisions of the appellate authorities in
Company''s cases.

Minimum Alternate Tax (MAT) paid in a year is charged to Statement of Profit and Loss as current tax. The
Company recognizes MAT credit available as an asset only to the extent it is probable that the concerned company
will pay normal tax during the specified period (ie) the period for which MAT Credit is allowed to be carried forward.
The said asset is created by way of credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement.
The company reviews the MAT Credit entitlement asset at each reporting period and writes down the asset to the
extent it is not probable that it will pay normal tax during the specified period. MAT is considered as deferred tax
item.

Current tax assets and liabilities are offset only if the company:

(i) has a legally enforceable right to set off the recognized amounts; and

(ii) intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

---

Mar 31, 2015

1. Basis of Preparation of Financial Statements

The financial statements have been prepared in accordance with the generally accepted accounting principles in India. The company has prepared these financial statements to comply win all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of Companies (Accounts) Rules 2014. The financial statements have been prepared on accrual basis and under the historical cost convention.

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

All assets and liabilities have been classified as current and non-current as per the company''s normal operating cycle and other criteria set out in Schedule III of the Companies Act 2013.

Based on the nature of business and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current/ non-current classification of assets and liabilities.

2. Change in Accounting Policy:

Till the year ended 31-03-2014, Schedule XIV of Companies Act 1956 prescribed requirements concerning depreciation of fixed assets. From the current year, Schedule XIV has been replaced by Schedule II to the Companies Act 2013. The applicability of Schedule II has resulted in the following changes related to depreciation of fixed assets.

Useful life / depreciation rates:

Till year ended 31-03-2014, depreciation rates prescribed under Schedule XIV were treated as minimum rates and the company was not allowed to charge depreciation at lower rates even if such lower rates were justified by the estimated useful life of particular asset. Schedule II of the Companies Act 2013 prescribes useful life for fixed assets, which in many cases are different from lives prescribed under erstwhile Schedule XIV.

Considering applicability of Schedule II the management has re estimated useful life and residual value of fixed assets. The company has adopted useful life period the same as per Schedule II unless otherwise stated.

Based on above useful life the depreciation upto 31-03-2014 has been restated and charges for current year. The excess deprecation on account of above exercise upto 31-03-2014 has been reduced from surplus in Profit and Loss Account by Rs.168,99,659/

3. Valuation of Inventories

(i) Raw material, At cost or market value whichever is less. Cost is determined on FIFO basis.

(ii) Stores & Spares At average cost. For this purpose Consumables, packing material. cost of stores, spares, consumables and packing materials purchased in the last month of the accounting year is considered. Cost includes all direct expenses for procuring the material, transportation and storing.

(iii) Finished Goods Cost of production or net realizable value whichever is less.

(iv) Traded goods At cost or market value which ever is lower. Cost is determined on FIFO basis.

4. Cash Flow Statement

The cash flow statement is prepared under indirect method as per the Institute of Chartered Accountant of India guidelines.

Cash and Cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

5. Recognition of Income and Expenditure

Items of Income and Expenditure are recognized on accrual basis except for the following which are being accounted for on cash basis since it is not possible to ascertain the exact quantum with reasonable accuracy:-

a. Capital Subsidy

b. Insurance Claims

c. Withheld payments on account of rebates, claims, bargain settlement etc.

6. Fixed Assets and Capital Work in Progress

Fixed Assets and Work in Progress are accounted on historical cost basis.

7. Indirect Expenses on Expansion

In respect of independent project, indirect expenses relating to the project are accounted separately and shall be capitalized at the time of commencement of commercial production. In respect of expansion facilities which are carried concurrently with production facilities of existing units, expenses on administration and supervision incurred on expansion (the bifurcation of which between production and construction activities could not be ascertained) are charged to revenue as the total amount of such expenses is not considered material in the context of expansion expenditure.

8. Depreciation

Depreciation on fixed assets is calculated on straight line method using rates arrived at based on useful life estimated by management in case of all assets except for Refinery Machinery. In case of Refinery Machinery the same is calculated on written down value basis. The company has used the following useful life to provide depreciation on its fixed assets. (useful life no of years)

Factory buildings, go down buildings 30

Office and other buildings 60

Site Development 10

Plant and machinery (Continues Process) 8

Furniture and fixture 10

Other P&M, Electrical equip, lab and mis equip 10

Office equipments 5

Vehicles 8

Windmill 22

Earth moving equipments 9

Computer 3

The useful life of assets are same as per Schedule II of the Companies Act 2013.

Intangible assets: Software is amortized on straight line basis over a period of 3 years.

9. Impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal. During the year there is no impairment loss of any asset.

10. Borrowing Costs

Borrowing cost directly attributable to the acquisition or construction of fixed assets is capitalized as part of the cost of the asset, up to the date the asset is put to use. Other borrowing costs are charged to the Profit and Loss Account in the year in which they are incurred.

11. Retirement Benefits.

Contribution to Provident Fund is accounted on accrual basis. All Leave encashment dues for the year are settled within the same year.

Gratuity: Company''s liability towards gratuity is considered as a Defined Benefit Plan. The present value of obligations towards gratuity are determined on actuarial valuation as certified by actuarial valuer. Actuarial gains and losses are recognized in full in the period in which they occur in the statement of profit and loss.

Gratuity being administered by a trust is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement / termination/ resignation. The benefit vests on the employee completing 5 years of service. The Gratuity plan for the company is a defined benefit scheme where annual contributions as demanded by the insurer are deposited to a Gratuity Trust Fund established to provide gratuity benefits. The Fund has taken a scheme of insurance, whereby these contributions are transferred to the insurer.

12. Taxes on Income

Tax expenses comprise both current tax and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income tax payable in respect of the taxable income for the reporting period. Deferred tax represents the effects of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. Current taxes are measured at the current rate of tax in accordance with provisions of the Income tax Act, 1961. Deferred Tax assets and Liabilities are measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance sheet date.

Provision for current tax is made in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act 1961 and considering assessment orders and decisions of the appellate authorities in Company''s cases.

13. NCDEX Transactions

The Company is mainly engaged in buying of Soybean seeds and manufacturing of Soybean oils and Soy De-Oiled Cakes and buying and selling of Traded goods like Wheat, Tuar, Gram etc. The Company deals on National Commodity and Derivatives Exchange Ltd (NCDEX) through brokers. The net gain or loss is accounted for in the books after the transaction is squared up. Gain or loss is recognized in case of completed transaction till the year end. In case of transactions of other goods in NCDEX same method is followed.

14. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable than an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

15. Foreign Exchange Transactions: There are no foreign exchange transactions during the current year or in previous years.

16. Segment Reporting Policies:

Identification of segments:

The company''s operating business are organized and managed separately according to the nature of products with each segment representing a strategic business unit that offer different products and serves different markets.

Assets, liabilities, revenue and expenditure identified to each segment is taken as segment related transaction. Common assets, liabilities and expenses are not allocated to segments.

17. 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.

For the purpose of calculated 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 effects of all dilutive potential equity shares.

18. Additional information:

Consumption

Value of imported and indigenous Raw material, Traded Goods & Process Inputs consumed and percentage thereof:

S.N. Particulars Year Year 2014-2015 2013-2014

1 Raw Materials, Traded NIL NIL NIL NIL goods & Process Inputs 28,507.46 100% 32,451.51 100% Imported Indigenous Lacs Lacs

2 Stores and spares: (Including consumables & NIL NIL NIL NIL packing Material) 58.30 Lacs 100% 123.06 100% Imported Indigenous Lacs

3. CIF Value of Imports NIL NIL NIL NIL

4 Expenditure in Foreign NIL NIL NIL NIL Currency

5 Earning in foreign NIL NIL NIL NIL currency (Direct Export)

B) ther Notes:

Contingent Liabilities

1. (a) Estimated amount of capital commitments on contracts to be executed net of advances is Rs. Nil (Previous year Rs. NIL). Bank guarantees issued on behalf of the company Rs.22.38 lacs (Previous year Rs. 21.48 lacs)

1. (b) Income Tax Rs.15.90 Lacs (Previous year Rs.15.90 Lacs): In respect of demand from the Income Tax department, the case is before the Settlement Commission. The company has already remitted tax of Rs.39.80 lacs under protest and shown under advances. As per the legal opinion obtained by the company, there will not be any demand and the entire amount is likely to be refunded. However tax on income surrendered before the Commission amounts to Rs.15.90 lacs is shown as contingent liability. The company has filed petition in Honorable High court of M.P for granting stay for referring the case back to the Commissioner Income Tax. The Honorable High Court granted the stay in favour of the company. Further details in this case is awaited.

1(c) In respect of demand Rs. 6,32,244 from the commercial tax department for the period 01-04-2006 to 31-03-2007, the company filed an appeal with the M.P Commercial Tax Appellate Board, Bhopal. Against the demand the company already deposited Rs.1,27,000. Against demand of Rs. 4,70,271/- by Assessing Officer MP VAT for 2011-12, which is under appeal, the company has deposited Rs 48,000/-

1(d) In respect of demand Rs.5.21 lacs from the IT dept for the year 2009-10 (AY 2010-11) against appeal before Appellate Commissioner, Income Tax, Bhopal.

2. Sundry Debtors and Sundry Creditors balances are subject to confirmation.

3. The figures of previous year have been reclassified and/or regrouped wherever necessary to confirm current year classification or group.

4. Windmill Power Project: In respect of Wind Mill Generator at Navneeta Krishna Puram, Tirunelveli, Tamil Nadu.

5. Sale of Generated power during the year 2014-15 is 8,99,616 units. (Previous Year: 9,52,262 Units).

6. Related Party Disclosure (As identified by the Management)

Related party Relationships

a) Where control exists: Kailash Chand Sharma, J.P.Agrawal, Sharad Kumar Jain.

b) Key Management Personnel: Shri Kailash Chand Sharma, Managing Director

c) Relatives of Key Management Personnel: Mr. Ritesh Sharma related to Managing Director

In respect of above parties, there is no provision for doubtful debts as on 31st March 2015 and no amount has been written off or written back during the year in respect of debts due from/to them.

Transactions with related parties during the year:

J. P.Agrawal - Managerial remuneration paid Rs.6.00 lacs;

K. C. Sharma - Managerial remuneration paid Rs.6.00 lacs;

Ritesh Sharma - Related to MD - Remuneration paid during the year Rs.5.95 lacs;

Sharad Kumar Jain - Managerial remuneration paid Rs. 6.00 lacs.

7. In accordance with the revised accounting standard -15 details are given below, which are certified by the actuary and relied upon by the auditors. The following tables summarize the components of net benefit expenses recognized in the profit and loss account and the unfunded liability status and amounts recognized in the balance sheet for the gratuity.

---

Mar 31, 2014

1. Basis of Preparation of Financial Statements

The financial statements are prepared on the historical cost convention basis in accordance with the generally accepted accounting principles and the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

2. VALUTATION OF INVENTORIES

(i) Raw material,

At cost or market value whichever is less. Cost is determined on FIFO basis

(ii) & Spares Consumables, packing material.

At average cost. For this purpose cost of stores, spares, consumables and packing materials purchased in the last month of the accounting year is considered. Cost includes all direct expense s for procuring the Imaterial, transportation and storing.

(iii) Finished Goods Cost of production or net realizable value whichever is less.

(iv) Traded goods

At cost or market value which ever is lower. Cost is determined on FIFO basis.

3. Cash Flow Statement

The cash flow statement is prepared under indirect method as per the Institute of Chartered Accountant of India guidelines.

Cash and Cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

4. Recognition of Income and Expenditure

Items of Income and Expenditure are recognized on accrual basis except for the following which are being accounted for on cash basis since it is not possible to ascertain the exact quantum with reasonable accuracy :-

a. Capital Subsidy

b. Insurance Claims

c. Withheld payments on account of rebates, claims, bargain settlement etc.

5. Fixed Assets and Capital Work in Progress

Fixed Assets and Work in Progress are accounted on historical cost basis.

6. Indirect Expenses on Expansion

In respect of independent project, indirect expenses relating to the project are accounted separately and shall be capitalized at the time of commencement of commercial production. In respect of expansion facilities which are carried concurrently with production facilities of existing units, expenses on administration and supervision incurred on expansion (the bifurcation of which between production and construction activities could not be ascertained) are charged to revenue as the total amount of such expenses is not considered material in the context of expansion expenditure.

7. Depreciation

Depreciation on all fixed assets put to use is provided on straight line method at rates specified in Schedule XIV to the Companies Act, 1956 on pro rata date basis, except for Refinery on which depreciation on written down value method at the rate specified in Schedule XIV to the Companies Act is adopted on pro rata date basis.

8. Impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal. During the year there is no impairment loss of any asset.

9. Borrowing Costs

Borrowing cost directly attributable to the acquisition or construction of fixed assets is capitalized as part of the cost of the asset, up to the date the asset is put to use. Other borrowing costs are charged to the Profit and Loss Account in the year in which they are incurred.

10. Retirement Benefits.

Contribution to Provident Fund is accounted on accrual basis. All Leave encashment dues for the year are settled with in the same year.

Gratuity being administered by a trust is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement / termination/ resignation. The benefit vests on the employee completing 5 years of service. The Gratuity plan for the company is a defined benefit scheme where annual contributions as demanded by the insurer are deposited to a Gratuity Trust Fund established to provide gratuity benefits. The Fund has taken a scheme of insurance, whereby these contributions are transferred to the insurer.

11. Taxes on Income

Tax expenses comprise both current tax and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income tax payable in respect of the taxable income for the reporting period. Deferred tax represents the effects of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. Current taxes are measured at the current rate of tax in accordance with provisions of the Income tax Act, 1961. Deferred Tax assets and Liabilities are measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance sheet date.

Provision for current tax is made in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act 1961 and considering assessment orders and decisions of the appellate authorities in Company''s cases.

12. NCDEX Transactions

The Company is mainly engaged in buying of Soya bean seeds and manufacturing of Soya bean oils and Soya De - Oiled Cakes and buying and selling of Traded goods like wheat, Tour, Gram etc. The Company deals on National Commodity and Derivatives Exchange Ltd (NCDEX) through brokers. The net gain or loss is accounted for in the books after the transaction is squared up. Gain or loss is recognized in case of completed transaction till the year end. In case of transactions of other goods in NCDEX same method is followed.

13. Contingent Liabilities

Contingent liabilities are disclosed after a careful evaluation of facts and their legal aspects.

14. Additional information required under Schedule VI of the Companies Act 1956.

CONSUMPTION

Value of imported and indigenous Raw material & Stock consumed and percentage thereof including trial run period:

---

Mar 31, 2013

1. Basis of Preparation of Financial Statements

The financial statements are prepared on the historical cost convention basts in accordance with the generally accepted accounting principles and the Accounting Standards referred to in Section 211 (3C) of the Companies Act.

2. VALUTATION OF INVENTORIES

(i) Raw material, At cost or market value whichever is less. Cost is determined on FIFO basis

(ii) Stores & Spares Consumables, packing material.

At average cost. Forthis purpose cost of stores, spares, consumables and packing materials purchased in the last month of the accounting year is considered. Cost includes all direct expenses for procuring the material, transportation and storing.

(iii) Finished Goods Cost of production or net realizable value whichever is less.

(iv) Traded goods At cost or market value which ever is lower. Cost is determined on

FIFO basis.

3. Cash Flow Statement

The cash flow statement is prepared under indirect method as per the Institute of Chartered Accountant of India guidelines.

Cash and Cash equivalents for the purposes of cash fiow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

4. Recognition of Income and Expenditure

Items of Income and Expenditure are recognized on accrual basis except forlhe following which are being accountedforon cash basis since it is not possible to ascertain the exactquantum with reasonable accuracy:-

a. Capital Subsidy

b. Insurance Claims

c. Withheld payments onaccount of rebates, claims, bargain settlement etc.

5. Fixed Assets and Capital Work in Progress

Fixed Assets and Work in Progress are accounted on historical cost basis,

6. Indirect Expenses on Expansion

In respect ot independent project, indirect expenses relating to the project are accounted separately and shall be capitalized atthetimeofcommencement of commercial production. In respect of expansion facilities which are carried concurrently with production facilities of existing units, expenses on administration and supervision incurred on expansion (the bifurcation of which between production and construction activities could not be m ascertained) are charged to revenue as the total amount of such expenses is not considered material in the context of expansion expenditure.

7. Depreciation

Depreciationonalltixedassetsputto use is provided on straight line method at rates specified in Schedule XIV to the Companies Act, 1956 on pro rata date basis, except for Refinery on which depreciation on written down value method at the rate specified in Schedule XIV to the Companies Act isadoptedonproratadatebasis.

8. Impairment Loss

Impairment loss is provided1 to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an asset''s net spelling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal. During the year there is no impairment loss of any asset

9. Borrowing Costs

Borrowing cost directly attributable to the acquisition or construction of fixed assets is capitalized as part of the cost of the asset up to the date the asset is put to use. Other borrowing costs are charged to the Profit and Loss Account in the year in which they are incurred.

10. Retirement Benefits.

Contribution to Provident Fund is accounted on accrual basis. All Leave encashment dues for the year are settled with in the same year.

Gratuity being administered by a trust is computed as 15 days salary, for every completed year ot service or part thereof in excess ot 6 months and is payable on retirement / termination/ resignation. The benefit vests on the employee completing 5 years of service. The Gratuity plan for the company is a defined benefit scheme where annual contributions as demanded by the insurer are deposited to a Gratuity Trust Fund established to provide gratuity benefits. The Fund has taken a scheme of insurance, whereby these contributions are transferred to the insurer.

11. Taxes on Income

Tax expenses comprise both current tax and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income tax payable in respect of the taxable income for the reporting period. Deferred tax represents the effects of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. Current taxes are measured a1 the current rate of tax in accordance with provisions of the Income tax Act, 1961. Deferred Tax assets and Liabilities are measured using the lax rates and tax laws that have been enacted or substantially enacted by the Balance sheet date.

Provision for current tax is made in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act 1961 and considering assessment orders and decisions of the appellate authorities in Company''s cases.

12. NCDEX Transactions

The Company is mainly engaged in buying of Soya bean seeds and manufacturing of Soya bean oils and Soya De - Oiled Cakes and buying and selling of Traded goods like wheat, Tour, Gram etc. The Company deals on National Commodity and Derivatives Exchange Ltd (NCDEX) through brokers. The net gain or loss is accounted f<* in the books after the transaction is squared up. Gain or loss is recognized in case of completed transaction till the year end. In case of transactions of other goods in NCDEX same method is followed.

13. Contingent Liabilities

Contingent liabilities are disclosed after a careful evaluation of facts and their legal aspects.

---

Mar 31, 2012

1. Basis of Preparation of Financial Statements

The financial statements are prepared on the historical cost convention basis in accordance with the generally accepted accounting principles and the Accounting Standards referred to in Section 211 (3C) of the Companies Act.

3. Cash Flow Statement The cash flow statement &, prepared under indireci/method as per the Institute af Chartered Accountant of India guidelines.

Cash and Cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

4. Recognition of Income and Expenditure

Items of income and Expenditure are recognized on accrual basis except for trig following which are being accounted for on cash basis since it not possible to ascertain the exact quantum with reasonable accuracy:-

a. Capital Subsidy

b. Insurance Claims

c. Withheld payments on accounts of rebates claims, bargain settlement etc.

5. Fixed Assets and Capital Work in Progress

Fixed Assets and Work in Progress are accounted on historical cost basis.

6. Indirect Expenses on Expansion

In respect of independent project, indirect expenses relating to the project are accounted separately and shall be capitalized at the time of commencement of commercial production. In respect of expansion facilities which are carried concurrently with production facilities of existing units, expenses on administration and supervision incurred on expansion (the bifurcation of which between production and construction activities could not be ascertained) are charged to revenue as the total amount of such expenses is not considered material in the context of expansion expenditure.

7. Depreciation

Depreciation on all fixed assets put to use is provided on straight line method at rates specified in Schedule XIV to the Companies Act, 1956 on pro rata date basis, except for Refinery on which depreciation on written down value method at the rate specified in Schedule XIV to the Companies Act is adopted on pro rata date basis.

8. Impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal. During the year there is no impairment loss of any asset.

9. Borrowing Costs

Borrowing cost directly attributable to the acquisition or construction of fixed assets is capitalized as part of the cost of the asset, up to the date the asset is put to use. Other borrowing costs are charged to the Profit and Loss Account in the year in which they are incurred.

10. Retirement Benefits.

Contribution to Provident Fund is accounted on accrual basis. All Leave encashment dues for the year are settled with in the same year.

Gratuity being administered by a trust is computed as 15 days salary, fpr every completed year of service or part there of in excess of 6 months and is payble on retirement/resignation. The benefit vests on the employee completing 5 years of services. The Gratuity plan nStthe company is a defined benefit scheme where anfjlal contributions as demanded by the insurer are deposited to a Gratuity benefits.The Fund established to provitt gratuity benefits. The Fund has taken a scheme owisurance, whereby these contributions are transfers to the insurer.

11. Preliminary and Sharelssue Expenses

Preliminary and share issufiexpenses are amortized ovei a period often years, rjibenture issue (on private placement basis) expenditifjp have been accounted in the year of issue.

12. Taxation: Provision for current tax is made in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tpt Act 1961 end considering assesment orders and decisions of the appellate authorities in Company's cases.

13. Taxes on Income

Tax expenses comprise bap current tax and defered tax at the applicable enacted/ substantively enacted rates. Current tax represents the ajpkint of income tax payable in respect of me taxable income for the reporting period. Deferred tax represents the effects of timing differences belffjeen taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. Current taxes are measured at the current rate of tax in accordance with provisions of the Income-tax Act, 1961. Oiiitenred Tax asserts and Liabilities are measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance sheet date.

14. NCDEX Transactions

The Company is mainly engaged in buying of Soya bean oils and Soya De - Oiled Cakes and buying and selling of Traded goods like wheat, Tour, Gram etc. The Company deals on National Commodity and Derivatives Exchange Ltd (NCDEX) through broker. The net gain or loss is accounted for in the books after the transaction is squared up. Gain or loss is recognized in case of completed transaction till the year end.

14. Contingent Liabilities

Contingent liabilities are disclosed after a careful evaluation of facts and their legal aspects.

---

Mar 31, 2010

1. Basis of Preparation of Financial Statements

The financial statements are prepared on the historical cost convention basis in accordance with the generally accepted accounting principles and the Accounting Standards referred to in Section 211 (3C) of the Companies Act.

2. VALUTATION OF INVENTORIES

(i) Raw material,

At cost or market value whichever is less. Cost is determined on FIFO basis

(ii) Stores & Spares Consumables, packing material.

At average cost. For this purpose cost of stores, spares, consumables and packing materials purchased in the last month of the accounting year is considered. Cost includes all direct expenses for procuring the material, transportation and storing.

(iii) Finished Goods

Cost of production or net realizable value whichever is less.

(iv) Traded goods

At cost or market value which ever is lower. Cost is determined on FIFO basis.

3. Cash Flow Statement

The cash flow statement is prepared under indirect method as per the Institute of Chartered Accountant of India guidelines.

4. Recognition of Income and Expenditure

Items of Income and Expenditure are recognized on accrual basis except for the following which are being accounted for on cash basis since it is not possible to ascertain the exact quantum with reasonable accuracy :-

a. Capital Subsidy

b. Insurance Claims

c. Withheld payments on account of rebates, claims, bargain settlement etc.

5. Fixed Assets and Capital Work in Progress

Fixed Assets and Work in Progress are accounted on historical cost basis.

6. Indirect Expenses on Expansion

In respect of independent project, indirect expenses relating to the project are accounted separately and shall be capitalized at the time of commencement of commercial production. In respect of expansion facilities which are carried concurrently with production facilities of existing units, expenses on administration and supervision incurred on expansion (the bifurcation of which between production and construction activities could not be ascertained) are charged to revenue as the total amount of such expenses is not considered material in the context of expansion expenditure.

7. Depreciation

Depreciation on all fixed assets put to use is provided on straight line method at rates specified in Schedule XIV to the Companies Act, 1956 on pro rata date basis, except for Refinery on which depreciation on written down value method at the rate specified in Schedule XIV to the Companies Act is adopted on pro rata date basis.

8. Impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arms length transaction between knowledgeable, willing parties, less the costs of disposal. During the year there is no impairment loss of any asset.

9. Foreign Exchange Transactions

Income on export receivable in foreign currency is accounted on the basis of actual remittance as per advice of the bank. The amount outstanding at the year end receivable in foreign currency, if any is accounted at the prevailing exchange rate. Any exchange difference is dealt in the Profit and Loss Account.

10. Borrowing Costs

Borrowing cost directly attributable to the acquisition or construction of fixed assets is capitalized as part of the cost of the asset, up to the date the asset is put to use. Other borrowing costs are charged to the Profit and Loss Account in the year in which they are incurred.

11. Retirement Benefits.

Contribution to Provident Fund is accounted on accrual basis. All Leave encashment dues for the year are settled with in the same year.

Gratuity being administered by a trust is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement / termination/ resignation. The benefit vests on the employee completing 5 years of service. The Gratuity plan for the company is a defined benefit scheme where annual contributions as demanded by the insurer are deposited to a Gratuity Trust Fund established to provide gratuity benefits. The Fund has taken a scheme of insurance, whereby these contributions are transferred to the insurer.

12. Preliminary and Share Issue Expenses

Preliminary and share issue expenses are amortized over a period of ten years. Debenture issue (on private placement basis) expenditure have been accounted in the year of issue.

13. Taxation:

Provision for current tax is made in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act 1961 and considering assessment orders and decisions of the appellate authorities in Companys cases.

14. Taxes on Income

Tax expenses comprise both current tax, Fringe Benefit Tax and deferred tax at the applicable enacted/ substantively enacted rates. Current tax represents the amount of income tax payable in respect of the taxable income for the reporting period. Deferred tax represents the effects of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. Current taxes and Fringe Benefit tax are measured at the current rate of tax in accordance with provisions of the Income tax Act, 1961. Deferred Tax assets and Liabilities are measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance sheet date.

15. Contingent Liabilities

Contingent liabilities are disclosed after a careful evaluation of facts and their legal aspects.