Accounting Policies of Phyto Chem (India) Ltd. Company

Mar 31, 2024

Note 2: Material accounting policies:

2.1 Statement of compliance:

The financial statements have been prepared in accordance with the Indian Accounting Standards
(referred to as “Ind AS”) prescribed under section 133 of the Companies Act, 2013 read with the
Companies (Indian Accounting Standards) Rules as amended from time to time and other relevant
provisions of the Act and presentation requirements of Division II of Schedule III of Companies Act,
2013.

2.2 Basis of preparation of financial statements:

The financial statements have been prepared on historical cost convention with the exception of
certain assets and liabilities that are required to be carried at fair value by Ind AS.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.

The Financial Statements have been prepared on historical cost convention on accrual basis of
accounting except for certain financial instruments that are measured at fair value. GAAPs of
Indian Accounting Standards as specified in Section 133 of the Act read together with Rule 4 of
Companies (Indian Accounting Standard) Amendment Rules, 2016 to the extent applicable,
pronouncements of regulatory bodies applicable to the Company and other provisions of the Act.
Accounting Policies have been consistently applied except where a newly issued Indian Accounting
Standards is initially adopted or revision to existing Indian Accounting Standards requires a change
in the accounting policy hitherto in use. Management evaluates all recently issued or revised Indian
Accounting Standards on an on-going basis.

The material accounting policy information related to preparation of the standalone financial
statements have been discussed in the respective notes.

2.3 Basis of measurement:

All assets and liabilities are classified into current and non-current based on the operating cycle of
twelve months or based on the criteria of realisation/ settlement within twelve months period from
the reporting balance sheet date.

Assets: An asset is classified as current when it satisfies any of the following criteria:

a. It is expected to be realized in, or is intended for sale or consumption in, the Company''s
normal operating cycle;

b. It is held primarily for the purpose of being traded;

c. It is expected to be realized within twelve months after the reporting date; or

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

Liabilities: A liability is classified as current when it satisfies any of the following criteria:

a. It is expected to be settled in the Company''s normal operating cycle;

b. It is held primarily for the purpose of being traded;

c. It is due to be settled within twelve months after the reporting date; or

d. The Company does not have an unconditional right to defer settlement of the liability for at least
twelve months after the reporting date. 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.

Current assets/ liabilities include the current portion of non-current assets/ liabilities respectively.

All other assets/ liabilities are classified as non-current. Deferred tax assets and liabilities are always

disclosed as non-current.

2.4 Operating cycle:

Operating cycle is the time between the acquisition of assets for processing and their in cash and
cash equivalents. The Company has ascertained its operating cycle as twelve months for the
purpose of current/ non-current classification of assets and liabilities.

2.5 Accounting estimates:

The preparation of the financial statements, in conformity with the recognition and measurement
principles of Ind AS, requires the management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of
financial statements and the results of operation during the reported period. Although these estimates
are based upon management''s best knowledge of current events and actions, actual results could
differ from these estimates which are recognized in the period in which they are determined.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the
accounting estimates are recognized in the period in which the estimates is revised if the revision
effects only that period or in the period of the revision and future periods in the revision effects
both current and future periods.

a. Depreciation and amortization: Depreciation and amortization is based on Schedule II to the
Companies Act, 2013, which describes useful lives of property, plant and equipment and
intangible assets.

b. Provisions and contingencies: Provisions and contingencies are based on the Management''s
best estimate of the liabilities based on the facts known at the balance sheet date.

c. Fair valuation: Fair value is the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date, regardless
of whether that price is directly observable or estimated using another valuation technique. In
estimating the fair value of an asset or a liability, the Company takes into account the characteristics
of the asset or liability if market participants would take those characteristics into account when
pricing the asset or liability at the measurement date.

In addition, for financial reporting purposes, fair value measurements are categorized into Level
1,2 or 3 based on the degree to which the inputs to the fair value measurements are observable
and the significance of the inputs to the fair value measurement in its entirety, which are
described as follows: Level 1: Inputs are quoted prices (unadjusted) in active markets for
identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs
are inputs, other than quoted prices included within Level 1, that are observable for the asset
or liability, either directly or indirectly; and Level 3: Inputs are unobservable inputs for the asset
or liability. For assets and liabilities that are recognized in the Financial Statements on a recurring
basis, the Company determines whether transfers have occurred between levels in the hierarchy
by reassessing categorization (based on the lowest level input that is significant to the fair

value measurement as a whole) at the end of each reporting period.

At each reporting date, the Company analyses the movements in the values of assets and
liabilities which are required to be re-measured or reassessed in line with the Company''s
Accounting Policies. For this analysis, the Company verifies the major inputs applied in the latest
valuation by agreeing the information in the valuation computation to contracts and other relevant
documents. For the purpose of fair value disclosures, the Company has determined classes of
assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability
and the level of the fair value hierarchy as explained above.

2.6 Critical accounting judgements and key source of estimation uncertainty operating cycle:
In the application of the Company''s accounting policies, the management of the Company are
required to make judgments, estimates and assumptions about the carrying amounts of the assets
and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.The estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to the accounting estimates are recognized in the
period in which the estimates is revised if the revision effects only that period or in the period of
the revision and future periods in the revision effects both current and future periods.The following
are the areas of estimation uncertainty and critical judgements that the management has made in
the process of applying the Company''s accounting policies and that have the most significant
effects on the amounts recognized in the financial statements.

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Mar 31, 2015

A. Basis of Accounting: The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for change in the accounting policy for depreciation.

b. Use of Estimates: The preparation of financial statements is in conformity with generally accepted accounting principles, which requires management to make estimates and assumptions that affect the reported amounts of such assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the end of the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from the estimates.

c. Fixed Assets : Fixed Assets are stated at cost less depreciation and cost of assets includes acquisition and installation expenses which are directly attributable for bringing the assets into working condition.

d. Depreciation: With effect from 01-04-2014 there has been a change in Policy for determination of depreciation amount as per provisions prescribed in Schedule II to the Companies Act, 2013 read with Section 123 of the "Act".

Depreciation is calculated based on useful life of asset retrospectively from the date of acquisition of the relevant Fixed Assets. The depreciation for assets having residual life and carrying book value as on 01-04-2014 are being amortized over remaining residual life. The depreciation for assets whose useful life expired but has carrying book value are amortized as on 01-04-2014 by transferring to the opening Profit and Loss Account. From 01-04-2014 the existing assets with carrying book value and additions made thereafter shall be provided in accordance with useful life as prescribed in Schedule II of Companies Act,2013.

e. Inventories : i. Stocks of raw materials, packing materials, house plots and consumables are valued at lower of cost and net realizable value. Rates are determined on FIFO basis ii. Finished goods are valued at cost of conversion and other cost incurred in bringing the inventories to their present location and condition (plus other overheads) or net realizable value, whichever is lower.

f. Revenue Recognition: Revenue from sales of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the customer, which generally coincides with their delivery to customer. Sales are stated including sales tax and excise duty excluding returns.

g. Borrowing Costs : Borrowing Costs are charged to profit & loss account, except in cases where the borrowings are directly attributable to the acquisition, construction or production of the qualifying asset.

h. Cenvat : Cenvat benefit is accounted for by reducing from the purchase cost of raw materials and adjusted against the excise duty liability.

i. Excise Duty: Excise Duty in respect of goods manufactured by the Company and lying in the Factory is accounted on accrual basis.

j. Investments : Investments are stated at cost. All the investments are long term and diminution in market value is not considered unless diminution is permanent.

k. Foreign Currency Transaction : Foreign currency transactions are recorded at the exchange rates prevailing as on the date of transaction. Earning or losses due to fluctuations in exchange rates are recorded as income or expenditure in the year of settlement and charged to Profit & Loss A/c.

l. Employees Benefits :

I. Short term employee Benefits : All employee benefits payable within twelve months of rendering services are classified as short term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards excreta, performance pay etc., and the same are recognized in the period in which the employee renders the related service.

II. Post Employment Benefits :

1. Defined Contribution Plans : Central Government Provident Fund Scheme is defined Contribution plan of the Company. The contributions paid or payable under the schemes are recognized during the period in which the employee renders the related service.

2. Defined Benefit Plans : The employees' gratuity scheme is defined benefit plan of the Company. The present value of the obligations under such defined benefit plan is determined based on the actuarial valuation provided by LIC of India at the date of Balance Sheet. Necessary disclosures as required under AS15 are furnished in Notes to Financial Statements.

m. The Company has taken into consideration the Provisions AS28- Impairment of assets. The Company assets at the each Balance sheet date whether there is any indication that an asset may be impaired. If any such indication is there, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. If recoverable amount is less than its carrying amount, the carrying amount is reduced to its recoverable amount.

n. Cash and Cash Equivalent: Cash and cash equivalent in the cash flow statement comprises cash at bank and on hand short-term investments with an original maturity of three months or less.

o. Income Taxes : Tax expense comprises current and deferred tax. Provisions for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from timing difference between taxable and accounting income as accounted for using the tax rules and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which deferred tax assets can be realized.

p. Contingent Liabilities and Contingent Assets : Contingent Liabilities are not recognized but are disclosed in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2014

A. System of Accounting :

The Company follows Mercantile system of accounting and recognises income and expenditure on accrual basis. The accounts are prepared on historical cost basis as a going concern. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles and applicable Accounting Standards unless otherwise stated.

b. Use of Estimates:

The preparation of financial statements is in conformity with generally accepted accounting principles, which requires management to make estimates and assumptions that affect the reported amounts of such assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the end of the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from the estimates.

c. Fixed Assets :

Fixed Assets are stated at cost less depreciation and cost of assets includes acquisition and installation expenses which are directly attributable for bringing the assets into working condition.

d. Depreciation :

Depreciation has been provided on straight line method at the rates specified in the Schedule XIV of the Companies Act,1956.

e. Inventories :

i. Stocks of raw materials, packing materials, house plots and consumables are valued at lower of cost and net realisable value. Rates are determined on FIFO basis

ii. Finished goods are valued at cost of conversion and other cost incurred in bringing the inventories to their present location and condition (plus other overheads) or net realisable value, whichever is lower.

f. Revenue Recognition:

Revenue from sales of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the customer, which generally coincides with their delivery to customer. Sales are stated including sales tax and excise duty excluding returns.

g. Borrowing Costs :

Borrowing Costs are charged to profit & loss account, except in cases where the borrowings are directly attributable to the acquisition, construction or production of the qualifying asset.

h. Cenvat :

Cenvat benefit is accounted for by reducing from the purchase cost of raw materials and adjusted against the excise duty liability.

i. Excise Duty:

Excise Duty in respect of goods manufactured by the Company and lying in the Factory is accounted on accrual basis.

j. Investments :

Investments are stated at cost. All the investments are long term and diminution in market value is not considered unless diminution is permanent.

k. Foreign Currency Transaction :

Foreign currency transactions are recorded at the exchange rates prevailing as on the date of transaction. Earning or losses due to fluctuations in exchange rates are recorded as income or expenditure in the year of settlement and charged to Profit & Loss A/c.

l. Employees Benefits :

I. Short term employee Benefits :

All employee benefits payable within twelve months of rendering services are classified as short term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards exgratia, performance pay etc., and the same are recognized in the period in which the employee renders the related service.

II. Post Employment Benefits :

1. Defined Contribution Plans :

Central Government Provident Fund Scheme is defined Contribution plan of the Company. The contributions paid or payable under the schemes are recognized during the period in which the employee renders the related service.

2. Defined Benefit Plans :

The employees'' gratuity scheme is defined benefit plan of the Company. The present value of the obligations under such defined benefit plan is determined based on the actuarial valuation provided by LIC of India at the date of Balance Sheet. Necessary disclosures as required under AS15 are furnished in Notes to Financial Statements.

m. The Company has taken into consideration the Provisions AS28- Impairment of assets. The Company assets at the each Balance sheet date whether there is any indication that an asset may be impaired. If any such indication is there, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. If recoverable amount is less than its carrying amount, the carrying amount is reduced to its recoverable amount.

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Mar 31, 2013

A. System of Accounting : The Company follows Mercantile system of accounting and recognises income and expenditure on accrual basis. The accounts are prepared on historical cost basis as a going concern. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles and applicable Accounting Standards unless otherwise stated.

b. Use of Estimates: The preparation of financial statements is in conformity with generally accepted accounting principles, which requires management to make estimates and assumptions that affect the reported amounts of such assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the end of the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from the estimates.

c. Fixed Assets : Fixed Assets are stated at cost less depreciation and cost of assets includes acquisition and installation expenses which are directly attributable for bringing the assets into working condition.

d. Depreciation : Depreciation has been provided on straight line method at the rates specified in the Schedule XIV of the Companies Act, 1956.

e. Inventories : i. Stocks of raw materials, packing materials, house plots and consumables are valued at lower of cost and net realisable value. Rates are determined on FIFO basis ii. Finished goods are valued at cost of conversion and other cost incurred in bringing the inventories to their present location and condition (plus other overheads) or net realisable value, whichever is lower.

f. Revenue Recognition: Revenue from sales of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the customer, which generally coincides with their delivery to customer. Sales are stated including sales tax and excise duty excluding returns.

g. Borrowing Costs : Borrowing Costs are charged to profit & loss account, except in cases where the borrowings are directly attributable to the acquisition, construction or production of the qualifying asset.

h. Convert : Convert benefit is accounted for by reducing from the purchase cost of raw materials and adjusted against the excise duty liability.

i. Excise Duty: Excise Duty in respect of goods manufactured by the company and lying in the Factory is accounted on accrual basis.

j. Investments : Investments are stated at cost. All the investments are long term and diminution in market value is not considered unless diminution is permanent.

k. Foreign Currency Transaction : Foreign currency transactions are recorded at the exchange rates prevailing as on the date of transaction. Earning or losses due to fluctuations in exchange rates are recorded as income or expenditure in the year of settlement and charged to Profit & Loss A/c.

I. Employees Benefits :

I. Short term employee Benefits: All employee benefits payable within twelve months of rendering services are classified as short term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards excreta, performance pay etc., and the same are recognized in the period in which the employee renders the related service.

II. Post Employment Benefits :

1. Defined Contribution Plans : Central Government Provident Fund Scheme is defined Contribution plan of the Company. The contributions paid or payable under the schemes are recognized during the period in which the employee renders the related service.

2. Defined Benefit Plans : The employees'' gratuity scheme is defined benefit plan of the Company. The present value of the obligations under such defined benefit plan is determined based on the actuarial valuation provided by LIC of India at the date of Balance Sheet. Necessary disclosures as required under AS 15 are furnished in Notes to Financial Statements.

m. The Company has taken into consideration the Provisions AS28- Impairment of assets. The Company assets at the each Balance sheet date whether there is any indication that an asset may be impaired. If any such indication is there, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. If recoverable amount is less than its carrying amount, the carrying amount is reduced to its recoverable amount Valuation

a. Raw materials, packing materials and house plots are valued at lower of cost or net realisable value.

b. Finished goods are valued at cost of conversion and other costs incurred in bringing the inventories to their present location and condition or net realisable value whichever is lower.

B. Expenditure in foreign currency during the Financial year on account of royalties, knowhow, professional and consultation and other matters : NIL

C. Total value of imported raw material consumed during the Financial year and the total value of indigenous raw materials and the percentage of each to the total consumption:

D. Earnings in foreign exchange: Nil

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Mar 31, 2012

A. System of Accounting : The Company follows Mercantile system of accounting and recognises income and expenditure on accrual basis. The accounts are prepared on historical cost basis as a going concern. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles and applicable Accounting Standards unless otherwise stated.

b. Use of Estimates: The preparation of financial statements is in conformity with generally accepted accounting principles, which requires management to make estimates and assumptions that affect the reported amounts of such assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the end of the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from the estimates.

c. Fixed Assets : Fixed Assets are stated at cost less depreciation and cost of assets includes acquisition and installation expenses which are directly attributable for bringing the assets into working condition.

d. Depreciation : Depreciation has been provided on straight line method at the rates specified in the Schedule XIV of the Companies Act, 1956.

e. Inventories : i. Stocks of raw materials, packing materials, house plots and consumables are valued at lower of cost and net realisable value. Rates are determined on FIFO basis ii. Finished goods are valued at cost of conversion and other cost incurred in bringing the inventories to their present location and condition (plus other overheads) or net realisable value, whichever is lower.

f. Revenue Recognition: Revenue from sales of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the customer, which generally coincides with their delivery to customer. Sales are stated including sales tax and excise duty excluding returns.

g. Borrowing Costs : Borrowing Costs are charged to profit & loss account, except in cases where the borrowings are directly attributable to the acquisition, construction or production of the qualifying asset.

h. Cenvat: Cenvat benefit is accounted for by reducing from the purchase cost of raw materials and adjusted against the excise duty liability.

i. Excise Duty: Excise Duty in respect of goods manufactured by the company and lying in the Factory is accounted on accrual basis.

j. Investments : Investments are stated at cost. All the investments are long term and diminution in market value is not considered unless diminution is permanent.

k. Foreign Currency Transaction : Foreign currency transactions are recorded at the exchange rates prevailing as on the date of transaction. Earning or losses due to fluctuations in exchange rates are recorded as income or expenditure in the year of settlement and charged to Profit & Loss A/c.

I. Employees Benefits

I. Short term employee Benefits: AII employee benefits payable within twelve months of rendering services are classified as short term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards exgratia, performance pay etc., and the same are recognized in the period in which the employee renders the related service.

II. Post Employment Benefits :

1. Defined Contribution Plans : Central Government Provident Fund Scheme is defined Contribution plan of the Company. The contributions paid or payable under the schemes are recognized during the period in which the employee renders the related service.

2. Defined Benefit Plans : The employee's gratuity scheme is defined benefit plan of the Company. The present value of the obligations under such defined benefit plan is determined based on the actuarial valuation provided by LIC of India at the date of Balance Sheet. Necessary disclosures as required under AS15 are furnished in Notes to Financial Statements.

m. The Company has taken into consideration the Provisions AS28- Impairment of assets. The Company assets at the each Balance sheet date whether there is any indication that an asset may be impaired. If any such indication is there, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. If recoverable amount is less than its carrying amount, the carrying amount is reduced to its recoverable amount

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Mar 31, 2011

A) System of Accounting : The company follows Mercantile system of accounting and recognises income and expenditure on accrual basis. The accounts are prepared on historical cost basis as a going concern. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles and applicable Accounting Standards unless otherwise stated.

b) Use of Estimates: The preparation of financial statements is in conformity with generally accepted accounting principles, which requires management to make estimates and assumptions that affect the reported amounts of such assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the end of the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from the estimates.

c) Fixed Assets : Fixed Assets are stated at cost less depreciation and cost of assets includes acquisition and installation expenses which are directly attributable for bringing the assets into working condition.

d) Depreciation : Depreciation has been provided on straight line method at the rates specified in the schedule XIV of the Companies Act, 1956.

e) Inventories : i) Stocks of raw materials, packing materials, house plots and consumables are valued at lower of cost and net realisable value. Rates are determined on FIFO basis ii) Finished goods are valued at cost of conversion and other cost incurred in bringing the inventories to their present location and condition (plus other overheads) or net realisable value, whichever is lower.

f) Revenue Recognition: Revenue from sales of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the customer, which generally coincides with their delivery to customer. Sales are stated including sales tax and excise duty excluding returns.

g) Borrowing Costs : Borrowing Costs are charged to profit & loss account, except in cases where the borrowings are directly attributable to the acquisition, construction or production of the qualifying asset.

h) Cenvat : Cenvat benefit is accounted for by reducing from the purchase cost of raw materials and adjusted against the excise duty liability.

i) Excise Duty: Excise Duty in respect of goods manufactured by the company and lying in the Factory is accounted on accrual basis.

j) Investments : Investments are stated at cost. All the investments are long term and diminution in market value is not considered unless diminution is permanent.

k) Foreign Currency Transaction : Foreign currency transactions are recorded at the exchange rates prevailing as on the date of transaction. Earning or losses due to fluctuations in exchange rates are recorded as income or expenditure in the year of settlement and charged to Profit & Loss A/c.

I) Employees Benefits

A) Short term employee Benefits :AII employee benefits payable within twelve months of rendering services are classified as short term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards exgratia, performance pay etc., and the same are recognized in the period in which the employee renders the related service.

B) Post Employment Benefits :

i) Defined Contribution Plans : Central Government Provident Fund Scheme is defined Contribution plan of the company. The contributions paid or payable under the schemes are recognized during the period in which the employee renders the related service.

ii) Defined Benefit Plans : The employee's gratuity scheme is defined benefit plan of the company. The present value of the obligations under such defined benefit plan is determined based on the actuarial valuation provided by LIC of India at the date of Balance Sheet. Necessary disclo sures as required under AS15 are furnished in Notes to Accounts.

m) The Company has taken into consideration the Provisions AS28- Impairment of assets. The Company asses at the each Balance sheet date whether there is any indication that an asset may be impaired. If any such indication is there, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. If recoverable amount is less than its carrying amount, the carrying amount is reduced to its recoverable amount

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Mar 31, 2010

A) System of Accounting : The company follows Mercantile system of accounting and recognises income and expenditure on accrual basis. The accounts are prepared on historical cost basis as a going concern. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles and applicable Accounting Standards unless otherwise stated.

b) Use of Estimates: The preparation of financial statements is in conformity with generally accepted accounting principles, which requires management to make estimates and assumptions that affect the reported amounts of such assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the end of the reporting period. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from the estimates.

c) Fixed Assets : Fixed Assets are stated at cost less depreciation and cost of assets includes acquisition and installation expenses which are directly attributable for bringing the assets into working condition.

d) Depreciation : Depreciation has been provided on straight line method at the rates specified in the schedule XIV of the Companies Act,1956.

e) Inventories : i) Stocks of raw materials, packing materials, house plots and consumables are valued at lower of cost and net realisable value. Rates are determined on FIFO basis ii) Finished goods are valued at cost of conversion and other cost incurred in bringing the inventories to their present location and condition (plus other overheads) or net realisable value, whichever is lower.

f) Revenue Recognition: Revenue from sales of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the customer, which generally coincides with their delivery to customer. Sales are stated including sales tax and excise duty excluding returns.

g) Borrowing Costs : Borrowing Costs are charged to profit & loss account, except in cases where the borrowings are directly attributable to the acquisition, construction or production of the qualifying asset.

h) Cenvat : Cenvat benefit is accounted for by reducing from the purchase cost of raw materials and adjusted against the excise duty liability. i) Excise Duty: Excise duty in respect of goods manufactured by the company and lying in the Factory is accounted on accrual basis. j) Investments : Investments are stated at cost. All the investments are long term and diminution in market value is not considered unless diminution is permanent.

k) Foreign Currency Transaction : Foreign currency transactions are recorded at the exchange rates prevailing as on the date of transaction. Earning or losses due to fluctuations in exchange rates are recorded as income or expenditure in the year of settlement and charged to Profit & Loss A/c.

l) Employees Benefits

A) Short term employee Benefits :AII employee benefits payable within twelve months of rendering services are classified as short term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards exgratia, performance pay etc., and the same are recognized in the period in which the employee renders the related service.

B) Post Employment Benefits :

i) Defined Contribution Plans : Central Government Provident Fund Scheme is defined Contribution plan of the company. The contributions paid or payable under the schemes are recognized during the period in which the employee renders the related service. ii) Defined Benefit Plans : The employees gratuity scheme is defined benefit plan of the company. The present value of the obligations under such defined benefit plan is determined based on the actuarial valuation provided by LIC of India at the date of Balance Sheet. Necessary disclo sures as required under AS15 are furnished in Notes to Accounts.

m) The Company has taken into consideration the Provisions of AS28 - Impairment of assets. The Company assess at the each Balance sheet date whether there is any indication that an asset may be impaired. If any such indication is there, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. If recoverable amount is less than its carrying amount, the carrying amount is reduced to its recoverable amount