Accounting Policies of Organic Coatings Ltd. Company

Mar 31, 2024

2. Significant accounting policies

The financial statements have been prepared on the following basis:

2.1 Basisof accounting and preparation of financial statements

These financial statements have been prepared in accordance with IndAS as prescribed under section 133 of the
Companies Act 2013 read with Companies (Indian Accounting Standards) Ru''es, 2015, as amended from time to

time

These financial statements have been prepared on a historical cost basis, e>cept following assets and liabilities
which have been measured at fair value

(11 Land and building forming part of Property, plant and equipment

(ii) Defined Benefit plans-pian assets

Up to the year ended March 31 2017, the Company has prepared its financia'' statements in accordance with the
requirement of Indian Generally Accepted Accounting Principles (GAAP) which includes standards notified under
the Companies (Accounting Standards) Rules, 2006 and considered as" Previ :us GAAP".

The functional and presentation currency of the Company is Indian Rupee (“7") which is Ihe currency of the primary
economic environment in which the Company operates.

2.2 Use of estimates

The preparation of the financial statements are in conformity with Ind AS ''equires the Management to make
estimates, judgement and assumptions. These estimates, judgement and assumption affect the application of
accounting polic.es and the reported amounts of assets and liabilities, the disclosures of contingent assets and
liabilities at the date of the financial statements and reported amounts of rever uas and expenses during the period
Accounting estimates could change from period to period. Actual results could differ from those estimates.
Appropriate changes in estimates are made as the management becomes aware of the changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which
changes are made and if material, their effects are disclosed in the notes to the financial statements.

2.3 Revenue recognition

Sales of goods are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of
ownership to the buyer, which generally coincides with the delivery of goods o customers. Saie of goods is net of
Indirect taxes.returns and discounts.

Interest income from a financial asset is recognised using effective interest rate method. Dividend income is
accounted for when the right to receive the payment is established

Insurance claims are accounted for on the basis of claims admitted t expected o be admitted and to the extent that

there is no uncertainty in receiving the claims.

Other income is accounted for on accrual basis except where the receipt of ircome is uncertain in which case it is

accounted for on receipt basts.

2.4 Inventories

Inventories of Raw Materials. Consumable Stores, Packing Materials, Work n Progress and Finished Goods are
valued at lower of Cost and net realisable Value. Cost Comprises all cost of purchase and other cost incurred in
bringing inventories to their present location and condition Work in Progress and Finished Goods include
appropriate amount proportions of the overhead Imported raw materials, stock in transit are valued at cost and

customs duty thereon

2.5 Property, Plant and Equipment

Property, plant and equipment are stated at cost of acquisition net of recoverab e taxes, trade discount and rebates
including any cost, directly attributable to bringing the assets to their workinc condition for its intended use, net
charges on foreign exchange arising from exchange rate variations attributable to the assets less accumulated
depreciation and impairment losses, if any except for certain property, plant and equipment, which have been
revalued

The Company depreciates property, plant and equipment over their estimated useful lives using the straight-line

method.

The estimated useful lives of assets are as follows:

Buildings- 30 Years

Plant and Machinery - 15 Years

Electric Installation and Lab Instrument- 10 Years

Office Equipment- 5 Years

Computer Equipment- 3 Years

Furniture and Fixures- 10 Years

Vehicles- 8 Years

Subsequent costs are included in the asset''s carrying amount or recognised -ia separate asset, as appropriate,
only when it Is probable that future economic benefits associated with the item will flow to the entity and the cost can

oe measured reliably.

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

Gains or losses arising from derecognition of a properly, plant and equipment 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.

Capital Work in Progress if any, are carried at cos!, comprising direct cost, related incidental expenses and
attributable interest.

2.6 Depreciation Amortisation and useful lives of property, plant and equipmt nt''intangible assets

Property, plant and equipment I intangible assets are depreciated I amortised o ,''er their estimated useful lives, after
taking into account estimated residual value. Management reviews the estimated useful lives and residual values of
the assets annually in order to determine the amount of depreciation / amortisation to be recorded during any
reporting period. The useful lives and residual values are based on the Company''s historical experience with similar
assets and take into account anticipated technological changes. The depreciation / amortisation for future periods is
revised \^f there are significant changes from previous estimates.

2.7 Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less
accumulated amortisation/bepletion and impairment loss, if any. Such cost includes purchase price, borrowing
costs, and any cos! directly attnbutabie to bringing the asset to its working condition for the intended use, net
charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the

Intangible assets.

Suosequent costs are included in the asset s carrying amount or recognised -s a separate asset, as appropriate,
only when it is probable that future economc benefits associated with the item v/ill flow to the entity and the cost can

be measured reliably.

The residual values, useful lives and methods of depreciation of intangible assets are reviewed at each financial

year end and adjusted prospectively, if appropriate

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 n the Statement of Profit and Loss
when the assei is derecognised

2.8 Foreign Currency Transactions and Translation

Transactions denominated in the foreign currencies are recorded at the exchange rate prevailing on the date of
irsrsaction or that approximates Ihe actua'' rate at the date of the transaction

The monetary assets and liabilities denominated n the foreign currencies are 1 anslated at the functional currency
closing rates of exchange at the reporting date

Any income or expense on account of exchange difference either on settlement on translation is recognised in the
Statement of profit and loss except in the case tne long term liabilities, if any, wnere they relate to the acquisition of
the fixed assets, in which case they are adjusted to the carrying amount of such assets

2.9 Employees Benefits
Defined Contribution Plans

Provident Fund & ESIC are defined contribution schemes established under a State Plan. The contributions to the
schemes are charged to the statement of profit and loss in the year when the contributions become due.

Defined Benefit Plans

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service
gets a gratuity on post employment at 15 days salary (last drawn salary) for each completed year of services as per
the Payment of Gratuity Act, 1972. The aforesaid liability is provided for on the basis of an actuarial valuation made
using Project Unit Credit Method at the end of the financial year. The scheme is funded with an insurance company
in the form of a qualifying insurance policy. Actuarial gains/losses are recognized in statement of profit and loss in
the year in which they arise

Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive

Income-

Compensated Absences

The Company has a policy on compensated absences which are both accumulating and non-accumulating in
nature, The expected cost of accumulating compensated absences is determined by actuarial valuation performed
by an independent actuary at each balance sheet date using projected unit credit method on the additional amount
expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance sheet date.
Employees are entitled to accumulate leave subject to certain limits for future encashment. The liability in respect of
leave encashment is provided for on the basis of actuarial valuation made at the end of the financial year using
Project Unit Credit Method, The said liability is not funded,

2.10 Borrowing Cost

Borrowing costs that are attributable to the acquisition, construction or p''oduction of qualifying assets are
capitalised as part of the cost of such assets, A qualifying asset is one that tai.es substantial period of time to get
ready for its intended use

All other borrowing costs are recognised as expense in the period in which they are incurred.

2.11 Fair value Measurement:

Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fa r value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique, in estimating the fair value of an asset or a liability, the Company takes
into account the characteristics of asset and liability if market participants would take those into consideration. Fair
value for measurement and / or disclosure purposes in these financial statements is determined in such basis
except for transactions in the scope of Ind AS 2,17 and 36. Normally at initial recognition, the transaction price is the
best evidence offairvalue.

The fair value or an asset or liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest. A Fair value
measurement of a non-financial asset takes in to account a market participants ability to generate economic
benefits by using the asset n its highest and best use or by selling it to another market participant that would use the

asset m its highest and best use

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value maximising the use of relevant observabl i inputs and minimising the use of

unobservable Inputs.

A!l financial assets and financial liabilities for which fair value is measured or disclosed in the financial statements
are categorised within the fair value hierarchy described as follows, based on the lowest level input that is significant

to the fair value measurement as a whole:

¦ Level 1 - Quoted (Unadjusted) market prices and active market for Identical assets and liabilities

• Level2- Valuation techniques for which the lowest level inputs that is significant to the fair value

measurement is directly or indirectly observable

* Level 3— Valuation techniques for which the lowest level inputs that is significant to the fair value

measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by the re assessing categorisation
(based on the lowest level input that is significant to the fair value measurer ient as a whole) at the end of each

reporting period.

2.12 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
nstrumentof another entity. The Company recognises a financial asset or finarcial liability in its balance sheet only
when the entity becomes party to the contractual provisions of the instrument.

a. Financial assets;

A financial asset inter-alia includes any asset that is cash, equity instrument of another entity and a financial
liability or equity instrument of another entity. The Company recognises a financial asset or financial liability in
its balance sheet only when the entity becomes party to the contractual provisions of the instrument.

Initial recognition and measurement

All financial assets are recognised Initially at ^fair value plus, in the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are attributable to the acquisiticr of the financial asset. Transaction
costs of financial assets carried at fair value through profit or loss are expensed in Statement of Profit and Loss.
When transaction price is not the measure of fair value and fair value is determined using a valuation method that
uses data from observable market, the difference between transaction piiue and fair value is recognised in
Statement of Profit and Loss and in other cases spread over life of the financial instrument using effective interest
method, .

Subsequent measurement

For purposes of subsequent measurement financial assets are classified in three categories:

¦ Financial asset measured at amortised cost

* Financial asset at fair value through OCI

* Financial assets atfair value through profit or loss
Financial assets measured at amortised cost

Financial assets are measured at amortised cost if the financial asset is held within a business mode! whose
objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial
asset give rise on specified dates to cash flows are solely payments of principal and interest on the principal amount
outstanding. These financial assets are amortised using the effective interest rate (EIR) method, less impairment.
Amortised cost is calculated by taking into account any discount or premium on f cquisition and fees or costs that are
an integral part of the EIR. The EiR amortisation is included in finance income in the statement of profit and loss. The
losses arising from impairment are recognised in the statement of profit and loss in finance costs.

Financial assets at fair value through OCI (FVTOCI)

Financial assets are measured at fair value through other comprehensive income if the financial asset is held within
a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets
and the contractual te^rms of the financial assel give rise on specified dates to cash flows that are solely payments of
prinapa: and interest on the principal amount outstanding At initial recognition, an irrevocable election is made (on
an instfument-by-instrument basis) to designate investments in equity instruments other than held for trading
purpose at FVTOCI. Fair value changes are recognised in the other comprehensive income (OCI)., However, the
Company recognises interest income, impairment losses and reversals and foreign exchange gain or loss in the
income statement On derecognition of the financial asset other than equity instruments, cumulative gain or loss
previously recognised in OCI is reclassified to income statements

Financial assets at fair value through profit or loss (FVTPL)

Any financial asset that does not meet the criteria for classification as at amortised cost or as financial assets at fair
value through other comprehensive income, is classified as financial assets at fair value through profit or loss.
Further, financial assets at fair value through profit or toss also include financial assets held for trading and financial
assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held
for trading if they are acquired for the purpose of selling or repurchasing in the near term. Financial assets at fair
value ugh profit or loss are fair valued at each reporting date with all the changes recognised in the Statement of
profit and loss

De-recognition of financial assets

The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset
expire, or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to
another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership of the
financial asset and continues to control the transferred asset, the Company recognises its retained interest in the
asset and an associated liability for amounts it may have to pay. If the Company -etains substantially all the risks and
rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and
also recognises a collateralized borrowing for the proceeds receivables.

Impairment of financial assets

The Company assesses impairment based on expected credit loss (ECL) mode¹ on the following:

a) Financial assets that are measured at amortised cost,

b) Financial assets measured at fair value through other comprehensive income (FVTOCI)

ECL is measured through a loss allowance on a following basis: -

a] The twelve month expected credit losses (expected credit losses that result from all possible default events
onthefinancial instruments that are possible within twelve months after the reporting date)

b) Full lifetime expected credit losses (expected credit losses that result frorr, all possible default events over the
life of financial instruments)

The company follows simplified approach'' for recognition of impairment on .rade receivables or contract assets
resulting from normal business transactions The application of simplified app roach does not require the Company
to track changes in credit risk However, it recognises impairment loss allowance based on lifetime ECLs at each

reporting date, from the date of initial recognition.

For recognition of impairment loss on other financial assets, the Company determines whether there has been a
significant increase in the credit risk since initial recognition, If credit risk has increased significantly, lifetime ECL is
provided. For assessing increase in credit risk and impairment loss, the Company assesses the credit risk
characteristics on instrument-by-instrument basis

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the entity expects to receive (i.e., ail cash shortfalls), discounted al the original

EIR.

Impairment loss allowance (or reversal) recognised during the period is recognised as expense/income in the
statement of profit and loss.

b. Financial liabilities and equity instruments:

Classification as debtor equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability ,>rid an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting
all of its liabilities. Equity Instruments are recorded at the proceeds received, net of direct issue costs.

Financial liabilities

The Company''s financial liabilities include loans and borrowings including bock overdraft, trade payable, accrued
expenses and other payables.

Initial Recognition and measurement

Ali financial liabilities at initial recognition are classified as financial liabilities at amortised cost or financial liabilities
at fair value through profit or loss, as appropriate. All financial liabilities are recognised initially at fair value and, in the
case of loans and borrowings and payables, net of directly attributable transaction costs. Any difference between
the proceeds (nel of transaction cosls) and Ihe fair value at initial recognition is recognised in the Statement of Profit
and Loss or in the Expenditure Attributable to Construction" if another standard permit inclusion of such cost in the
carrying amount of an asset over the period of the borrowings using the effective rate of interest.

Subsequent measurement

Subsequent measurement of financial liabilities depends upon the classificatic n as described below:

Financial Liabilities classified at Amortised Cost:

Financial Liabilities that are not held for trading and are not designated as at FV^- PL are measured at amortised cost
at the end of subsequent accounting periods- Amortised cost is calculated by taking Into account any discount or
premium on acquisition and fees or costs that are integral part of the Effective Interest Rate. Interest expense that is
not capitalised as part of cost of assets is included as Finance costs in the Statement of Profit and Loss.

Financial Liabilities at Fair value through profit and loss {FVTPL)

FVTPL includes financial liabilities held for trading and financial liabilities designated upon initial recognition as
FVTPL, Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the

near term. Financial liabilities have not been designated upon initial recognition at FVTPL.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged/cancelled/expired. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modificati :n is treated as the de recognition of
the original liability and the recognition of a new liability. The difference in :he respective carrying amounts is
recognised in the statement of profit and loss.

Offsetting of financial instruments

Financial assets and liabilities are offset and net amount is reported if there is currently enforceable legal right to
offset the recognised amounts and there is intention to settle on a net basis, to ^reaiise assets and settle the liabilities

simultaneously.

2.13 Earnings per share

Basic Eammgs per share is computed by dividing the profit from continuing operations and total profits, both
attributable to equity share holders of the Company by the weighted average lumber of equity shares outstanding
during the period. Diluted earnings per share are computed using the weighted average number of equity and
dilutive equivalent shares outstanding during the period, except where the results would be anti-dilutive.

2.14 Income Tax Expenses

income tax expense represents the sum of tax currently payable and dett rred tax. Tax is recognised in the
Statement of Profit and Loss except to the extent that it relates to the items recognised directly in equity or in other

comprehensive income.

Currenttax

Current tax includes provision for Income Tax computed under special provision (i.e. Minimum Alternate Tax) or
normal provision of Income Tax Act provisions. Current income tax assets and li abilities are measured at the amount
expected to be recovered from or paid to the taxation authorities on the basis of estimated taxable Income The tax
rates and tax laws used, to compute the amount are those that are enacted or substantively enacted, at the reporting

date

Deferred tax

Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial
statements and their corresponding tax bases {known as temporary differences). Deferred tax liabilities are
recognised for all temporary differences that are expected to increase taxable profit in the future. Deferred tax
assets are recognised for ail temporary differences that are expected to reduce taxable profit in the future, and any
unused tax losses or unused tax credits. Deferred tax assets are measured at the highest amount that, on the basis
of current or estimated future taxable profit, is more likely than not to be recovered. The net carrying amount of
deferred tax assets is reviewed at each reporting date and is adjusted to reflect the current assessment of future
taxable profits Any adjustments are recognised in profit or loss.

Deferred tax is calculated at the tax rates thai are expected to apply to the taxable profit (tax loss) of the periods in
which it expects the deferred tax asset to be realised or the deferred lax liability to be settled, on the basis of tax rates
that have been enacted or substantively enacted by the end of the reporting pei iod.

Deferred Tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to the income taxes levied b/ the same taxation authority and the
Company intends to settle its current tax assets and liabilities on a net basis.

Deferred tax liabilities are recognised for ail timing differences. Deferred tax assets in respect of unabsorbed
depreciation and carry forward of losses are recognised only if there is virtua- certainty that there will be sufficient
future taxable income available to realise such assets Deferred tax assets are recognised for timing differences of
other items only to the extent that reasonaDle certainty exists that sufficient future taxable income will be available
agamst which these can be realised Deferred tax assets are reviewed at each Balance Sheet date for their

readability,

2.15 Research and Development

Revenue expenditure pertaining to research is charged to the Statement of P ''ofit and Loss, Development costs of
products are also charged to the Statement of Profit and Loss unless a product''s technological feasibility has been
established, in which case such expenditure is capitalised. The amount capita¹! sed comprises expenditure that can
be directly attributed or allocated on a reasonable and consistent basis to creaung, producing and making the asset
ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in
accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

2 16 Impairment of Assets non-financiat assets - property, plant and equipment and intangible assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any
indication of Impairment exists, the recoverable amount of such assets is estimated and impairment is recognised,
if the carrying amount of these assets exceeds their recoverable amount. The i ecoverable amount is the greater of
the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their
present value based on an aopropriate discount factor.

When there is indication that an impairment loss recognised for an asset In earlier accounting periods no longer
exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss,

except m case of revalued assets

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Mar 31, 2015

1.1 Basis of accounting and preparation of financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules,2014, and other provisions of the Act (to the extent applicable).

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. However, future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialised.

1.3 Inventories

In terms of the Accounting Standard "Valuation of the Inventories" (Revised) (AS-2) issued by the Institute of Chartered Accountants of India, inventories are valued on First in First out Basis (FIFO). Inventories of Raw Materials, Consumable Stores, Packing Materials, Work in Progress and Finished Goods are valued at lower of Cost and net realisable Value. Cost Comprises all cost of purchase and other cost incurred in bringing inventories to their present location and condition. Work in Progress and Finished Goods include appropriate amount proportions of the overhead and where applicable excise duty. Imported raw materials, stock in transit are valued at cost and customs duty thereon.

1.4 Depreciation and Amortisation

Upto the year ended 31st March, 2014, Schedule XIV of the Companies Act 1956 was followed for depreciation on Fixed Assets. From the Current Year, Schedule XIV has been replaced by Schedule II to the Companies Act 2013. Accordingly the depreciation has been charged under straight-line method on the balance estimated useful life of the Asset as specified in Schedule II of the Companies Act 2013. The Written Down Value of Fixed Assets whose lives have expired as of 1st April 2014 have been adjusted in the General Reserve amountingto Rs.1,07,140.

1.5 Revenue recognition

Sales of goods are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales exclude excise duty, sales taxand value added tax.

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive is established.

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

Other income is accounted for on accrual basis except where the receipt of income is uncertain in which case it is accounted for on receipt basis.

1.6 Tangible Fixed Assets

Fixed Assets are stated at cost of acquisition net of cenvat including any cost, directly attributable to bringing the assets to their working condition less accumulated depreciation except for certain fixed assets, which have been revalued.

Capital Work in Progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

1.7 Intangible Fixed Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation. All costs till the commencement of the commercial production are capitalised.

1.8 Foreign Currency

Transactions denominated in the foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of the transaction.

The monetary assets and liabilities item denominated in the foreign currencies at the year end are restated at the year end rates.

Any income or expense on account of exchange difference either on settlement on translation is recognised in the statement of profit and loss except in the case the long term liabilities, where they relate to the acquisition of the fixed assets, in which case they are adjusted to the carrying amount of such assets.

1.9 Employees Benefits

Defined Contribution Plans

Provident Fund &ESIC are defined contribution schemes established under a State Plan. The contributions to the schemes are charged to the statement of profit and loss in the year when the contributions become due.

Defined Benefit Plans

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on post employment at 15 days salary (last drawn salary) for each completed year of services as per the rules of the company. The aforesaid liability is provided for on the basis of an actuarial valuation made using Project Unit Credit Method at the end of the financial year. The scheme is funded with an insurance company in the form of a qualifying insurance policy. Actuarial gains/losses are recognized in statement of profit and loss in the year in which they arise. Compensated Absences (Leave Encashment)

Employees are entitled to accumulate leave subject to certain limits for future encashment. The liability in respect of leave encashment is provided for on the basis of actuarial valuation made at the end of the financial year using Project Unit Credit Method. The said liability is not funded.

1.10 Borrowing Cost

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that takes substantial period of time to get ready for its intended use. All other borrowing costs are recognised as expense in the period in which they are incurred.

1.11 Earnings per share

The company reports basic and diluted earnings per equity share in accordance with AS-20, on earnings per share. Basic earnings per equity share have been computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the year. Diluted earnings per equity share have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

1.12 Taxes on Income

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

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets are reviewed at each Balance Sheet date for their readability.

1.13 Research and Development

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are also charged to the Statement of Profit and Loss unless a product's technological feasibility has been established, in which case such expenditure is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

1.14 Impairment of Assets

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

1.15 Provisions and Contingent Liability

Provisions involving substantial degree of estimate in measurement are recognised when there is a present obligation as a result of the past events and it is probable that there will be an outflow resources. Contingent liabilities and commitments are not recognised but are disclosed in the notes. Contingents assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2013

A Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention except for certain fixed assets which are revaluated, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

B Use of Estimates

The preparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amount of the revenues and expenses during the reporting period. The differences between the actual results and the estimates are recognised in the periods in which the results are known / materialised.

C Inventories

In terms of the Accounting Standard "Valuation of the Inventories" (Revised) (AS-2) issue by the Institute of Chartered Accountants of India, inventories are valued on First in First out Basis (FIFO). Inventories of Raw Materials, Consumable Stores, Packing Materials, Work in Progress and Finished Goods are valued at lower of Cost and net realisable Value. Cost Comprises all cost of purchase and other cost incurred in bringing inventories to their present location and condition. Work in Progress and Finished Goods include appropriate amount proportions of the overhead and where applicable excise duty. Imported raw materials, stock in transit are valued at cost and custom duty thereon.

D Depreciation and Amortisation

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956 w.e.f 1st April 1994 in accordance with the Accounting Standard on Depreciation (Revised) (AS-6) issued by the Institute of Chartered Accountant of India. Prior to 1st April, 1994, depreciation was charged on written down value method as per the rates prescribed under the Income Tax Act, 1961.

E Revenue recognition

Sales of goods are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax. Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established. Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

F Tangible Fixed Assets

Fixed Assets are stated at cost of acquisition net of cenvat including any cost, directly attributable to bringing the assets to their working condition less accumulated depreciation except for certain fixed assets, which have| been revalued.

Capital Work in Progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

G Intangible Fixed Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation. All costs till the commencement of the commercial production are capitalised.

H Foreign Currency Transactions

Transactions denominated in the foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of the transaction.

The assets and liabilities item denominated in the foreign currencies at the year end are restated at the year end rates.

Any income or expense on account of exchange difference either on settlement on translation is recognised in the profit and loss account except in the case the long term liabilities, where they relate to the acquisition to the| fixed assets, in which case they are adjusted to the carrying amount of such assets.

I Employees Benefits

Short term employees benefits are recognised as an expenses in the statement of the profit and loss account of the year in which the related service are rendered.

Post employment and other long term employees benefits are recognised as an expenses in the statement of the profit and loss account for the year in which the employees has rendered the services. The expenses are recognised at the present value of the amounts payable determined using actuarial valuations actuarial gain and losses in respect of the post employment and other long term benefits are charged to the profit and loss account.

J Borrowing Cost

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that takes substantial period of time to get ready for its intended use. All other borrowing cost are charged to the profit and loss account

K Impairment of Assets

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

L Research and Development

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are also charged to the Statement of Profit and Loss unless a product''s technological feasibility has been established, in which case such expenditure is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

M Provision of Current Tax and Deferred Tax

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

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

N Provisions and Contingents Liabilities and Contingent Assets

Provisions involving substantial degree of estimate in measurement are recognised when there is a present obligation as a result of the past events and it is probable that there will be an outflow resources. contingents liabilities and commitments are not recognised but are disclosed in the notes. Contingents assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2012

A Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention except for certain fixed assets which are revaluated, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

B Use of Estimates

The preparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amount of the revenues and expenses during the reporting period. The differences between the actual results and the estimates are recognised in the periods in which the results are known / materialised.

C Inventories

In terms of the Accounting Standard "Valuation of the Inventories" (Revised) (AS-2) issue by the Institute of Chartered Accountants of India, inventories are valued on First in First out Basis (FIFO). Inventories of Raw Materials, Consumable Stores, Packing Materials, Work in Progress and Finished Goods are valued at lower of Cost and net realisable Value. Cost Comprises all cost of purchase and other cost incurred in bringing inventories to their present location and condition. Work in Progress and Finished Goods include appropriate amount proportions of the overhead and where applicable excise duty. Imported raw materials, stock in transit are valued at cost and custom duty thereon.

D Depreciation and Amortisation

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956 w.e.f 1st April 1994 in accordance with the Accounting Standard on Depreciation (Revised) (AS-6) issued by the Institute of Chartered Accountant of India. Prior to 1st April, 1994, depreciation was charged on written down value method as per the rates prescribed under the Income Tax Act, 1961.

E Revenue recognition

Sales of goods are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

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

F Tangible Fixed Assets

Fixed Assets are stated at cost of acquisition net of cenvat including any cost, directly attributable to bringing the assets to their working condition less accumulated depreciation except for certain fixed assets, which have been revalued.

Capital Work in Progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

G Intangible Fixed Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation. All costs till the commencement of the commercial production are capitalised.

H Foreign Currency Transactions

Transactions denominated in the foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of the transaction.

The assets and liabilities item denominated in the foreign currencies at the year end are restated at the year end rates.

Any income or expense on account of exchange difference either on settlement on translation is recognised in the profit and loss account except in the case the long term liabilities, where they relate to the acquisition to the fixed assets, in which case they are adjusted to the carrying amount of such assets.

I Employees Benefits

Short term employees benefits are recognised as an expenses in the statement of the profit and loss account of the year in which the related service are rendered.

Post employment and other long term employees benefits are recognised as an expenses in the statement of the profit and loss account for the year in which the employees has rendered the services. The expenses are recognised at the present value of the amounts payable determined using actuarial valuations actuarial gain and losses in respect of the post employment and other long term benefits are charged to the profit and loss account.

J Borrowing Cost

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that takes substantial period of time to get ready for its intended use. All other borrowing cost are charged to the profit and loss account

K Impairment of Assets

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

L Research and Development

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are also charged to the Statement of Profit and Loss unless a product's technological feasibility has been established, in which case such expenditure is capitalised. The amount capitalised comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilised for research and development are capitalised and depreciated in accordance with the policies stated for Tangible Fixed Assets and Intangible Assets.

M Provision of Current Tax and Deferred Tax

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

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

N Provisions and Contingents Liabilities and Contingent Assets

Provisions involving substantial degree of estimate in measurement are recognised when there is a present obligation as a result of the past events and it is probable that there will be an outflow resources, contingents liabilities and commitments are not recognised but are disclosed in the notes. Contingents assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2011

I) Basis of Preparation of Financial Statement

a) The financial statements have been prepared under the historical cost concept in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

b) The company follows mercantile system of accounting and recognises income and expenditure on acrual basis.

ii) Fixed Assets & Depreciation :

(A) Fixed Assets :

Fixed Assets are stated at cost of acquisition net of cenvat including any cost, directly attributable to bringing the assets to their working condition less accumulated depreciation, except for certain fixed assets, which have been revalued.

(B) Depreciation :

Depreciation has been provided on Straight Line Method at the rates prescribed under Schedule XIV of the Companies Act 1956 w.e.f. 1 st April 1994 in accordance with the Accounting Standard on Depreciation Accounting (Revised) (AS6) issued by the Institute of Chartered Accountants of India. Prior to 1 st April 1994 depreciation was charged on written down value method as per rates prescribed under the Income Tax Act, 1961.

(C) Impairement :

The carrying cost of assets is reviewed at each Balance Sheet date for any indication of impairement based on internal/external factors. An impairement loss is recognised whenever the carrying amount of an assets exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to the present value at the weighted average cost of capital.

Post impairement depreciation is provided on the revised carrying value of the assets over its remaining useful life.

iii) Valuation of Inventories:

In terms of Accounting Standard "Valuation of Inventories" (Revised) (AS2) issued by the Institute of Chartered Accountants of India, inventories are valued on First in First out Basis (FIFO). Inventories of Raw Materials, Consumable Stores, Packing Material, Work in Progress & Finished Goods are valued at lower of cost and net realizable value. Cost comprises all cost of purchase and other cost incurred in bringing inventories to their present location and condition. Work in progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty. Imported raw material, stock in transit are valued at cost and custom duty thereon.

iv) Research & Development:

Revenue Expenditure on Research and Development is charged off fully in the Profit and Loss Account of the year in which it is incurred. Capital Expenditure on Research and Development is added to Fixed Assets and depreciation provided as stated.

v) Foreign Currency Transactions:

Transaction in Foreign currency are recorded at the rate of exchange in force on the date of the transaction. Foreign currency Receivable/Liabilities are stated at the rate of exchange prevailing as on 31st March. All exchange differences arising on revenue transaction are charged to Profit & Loss Account. Exchange differences in respect of liability incurred to acquire fixed assets are adjusted in the carrying cost of such assets.

vi) Employee Benefit: In terms of Accounting Standard 15 "Accounting for Retirement Benefits in the financial statements of the employers issued by the Institute of Chartered Accountants of India;

Short term employee benefit obligations are estimated and provided for;

Post employment benefits and other long term employee benefits :

Define contribution plans :

Company's contribution to provident fund, employees state insurance and other funds are determined under relevant schemes and are charged to revenue.

Define benefit plans and compensated absences:

Company's liability towards gratuity and compensated absences are actuarially determined at each balance sheet date using the projected unit credit method. Actuarial gains and losses are recognised in revenue.

Terminal benefits are recognised as an expense as and when incurred.

vii) Provision for Taxation :

Income Tax is provided for as per the provisions of the Income Tax Act, 1961.

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Mar 31, 2010

I) Basis of Preparation of Financial Statement

a) The financial statements have been prepared under the historical cost concept in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

b) The company follows mercantile system of accounting and recognises income and expenditure on acrual basis.

ii) Fixed Assets & Depreciation:

(A) Fixed Assets:

Fixed Assets are stated at cost of acquisition net of cenvat including any cost, directly attributable to bringing the assets to their working condition less accumulated depreciation, except for certain fixed assets, which have been revalued.

(B) Depreciation:

Depreciation has been provided on Straight Line Method at the rates prescribed under Schedule XIV of the Companies Act 1956 w.e.f. 1st April 1994 in accordance with the Accounting Standard on Depreciation Accounting (Revised) (AS-6) issued by the Institute of Chartered Accountants of India. Prior to 1st April 1994 depreciation was charged on written down value method as per rates prescribed under the Income Tax Act, 1961.

(C) Impairement:

The carrying cost of assets is reviewed at each Balance Sheet date for any indication of impairement based on internal/ external factors. An impairement loss is recognised whenever the carrying amount of an assets exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to the present value at the weighted average cost of capital.

Post impairement depreciation is provided on the revised carrying value of the assets over its remaining useful life.

iii) Valuation of Inventories:

In terms of Accounting Standard "Valuation of Inventories" (Revised) (AS-2) issued by the Institute of Chartered Accountants of India, inventories are valued on First in First out Basis (FIFO). Inventories of Raw Materials, Consumable Stores, Packing Material, Work in Progress & Finished Goods are valued at lower of cost and net realizable value. Cost comprises all cost of purchase and other cost incurred in bringing inventories to their present location and condition.

Work in progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty. Imported raw material, stock in transit are valued at cost and custom duty thereon.

iv) Research & Development:

Revenue Expenditure on Research and Development is charged off fully in the Profit and Loss Account of the year in which it is incurred. Capital Expenditure on Research and Development is added to Fixed Assets and depreciation provided as stated.

v) Foreign Currency Transactions:

Transaction in Foreign currency are recorded at the rate of exchange in force on the date of the transaction. Foreign currency Receivable/Liabilities are stated at the rate of exchange prevailing as on 31 st March. Ail exchange differences arising on revenue transaction are charged to Profit & Loss Account. Exchange differences in respect of liability incurred to acquire fixed assets are adjusted in the carrying cost of such assets.

vi) Employee Benefit: In terms of Accounting Standard 15 "Accounting for Retirement Benefits in the financial statements of the employers issued by the Institute of Chartered Accountants of India;

Short term employee benefit obligations are estimated and provided for;

Post employment benefits and other long term employee benefits :-

Define contribution plans:

Companys contribution to provident fund, employees state insurance and other funds are determined under relevant schemes ?, id are charged to revenue.

Define benefit plans and compensated absences:

Companys liability towards gratuity and compensated absences are actuarially determined at each balance sheet date using the projected unit credit method. Actuarial gains and losses are recognised in revenue.

Terminal benefits are recognised as an expense as and when incurred.

vii) Provision for Taxation:

Income Tax is provided for as per the provisions of the Income Tax Act,1961.