Accounting Policies of Purity Flex Pack Ltd. Company

Mar 31, 2025

1. Corporate information

Purity Flexpack Limited(“the Company”) (CIN: L25200GJ1988PLC010514)is a limited company domiciled and
incorporated in India. The registered office of the Company is at Vanseti, Post Tajpura, Near Halol, Dist Panchmahal-389
350.

The Company is mainly engaged in the business of manufacturing of Flexible Packaging Materials.

The Board of Directors approved the Financial Statements for the year ended March 31,2025 and authorised for issue on
24th May, 2025

2. BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES

This note provides a list of the material accounting policies adopted in the presentation of thesefinancial statements.

A. BASIS OF PREPARATION:

-COMPLIANCE WITH IND AS

This Financial Statements comply in all material respects with Indian Accounting Standard (‘Ind AS'') as notified by the
Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (Act) read with Companies (Indian
Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act. These financial statements
includes Balance Sheet as at 31 March 2025, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Cash flows and Statement of changes in equity for the year ended 31 March 2025, and a
summary of material accounting policies and other explanatory information (together hereinafter referred to as
“Financial Statements”).

The accounting policies are applied consistently to all the periods presented in the Financial Statement.

i. Historical cost convention:

The Financial Statements have been prepared on a historical cost basis, except for the following:

a) Certain financial assets and liabilities (including derivative instruments) that are measured at fair value

b) Defined benefit plans: plan assets measured at fair value

ii. Rounding of Amounts:

The financial statements are presented in INR and all values are rounded to the nearest lakhs, except when
otherwise indicated.

The Company has prepared the financial statements on the basis that it will continue to operate as a going concern.

B. SIGNIFICANT ESTIMATES, JUDGEMENTS AND ASSUMPTIONS

The preparation of financial statements in conformity with Ind AS requires the management to make estimates,
assumptions and exercise judgment in applying the accounting policies that affect the reported amount of revenues,
expenses, assets, liabilities and disclosure of contingent liabilities at the end of the financial statements and reported
amounts of income and expense during the year.

The management believes that these estimates are prudent and reasonable and are based on management''s best
knowledge of current events and actions. Actual results could differ from these estimates and difference between
actual results and estimates are recognised in the period in which results are known or materialised.

(i) Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting
period, that have a significant risk of causing a material adjustment to the carrying amounts of assets, liabilities, income
and expenses within the next financial year are discussed below:

Allowances for doubtful debts

The Company makes allowances for doubtful debts based on an assessment of the recoverability of trade and other
receivables. The identification of doubtful debts requires use of judgments and estimates. Where the expectation is
different from the original estimate, such difference will impact the carrying value of the trade and other receivables and
doubtful debts expenses in the period in which such estimate has been changed.

Allowances for inventories

Management reviews the inventory age listing on a periodic basis. This review involves comparison of the carrying value
of the aged inventory items with the respective net realizable value. The purpose is to ascertain whether an allowance is
required to be made in the financial statements for any obsolete and slow moving items. Management is satisfied that
adequate allowance for obsolete and slow-moving inventories has been made in the financial statements.

Liability for sales return

In making judgment for liability for sales return, the management considered the detailed criteria for the recognition of
revenue from the sale of goods set out in Ind AS 115 and in particular, whether the Company had transferred to the
buyer the significant risk and rewards of ownership of the goods. Following the detailed quantification of the Company''s
liability towards sales return, the management is satisfied that significant risk and rewards have been transferred and
that recognition of the revenue in the current year is appropriate, in conjunction with the recognition of an appropriate
liability for sales return. Accruals for estimated product returns, which are based on historical experience of actual sales
returns and adjustment on account of current market scenario is considered by Company to be reliable estimate of
future sales returns.

Useful lives of property, plant and equipment (‘PPE’) and intangible assets

Management reviews the estimated useful lives and residual value of PPE and Intangibles at the end of each reporting
period. Factors such as changes in the expected level of usage, technological developments and product life-cycle,
could significantly impact the economic useful lives and the residual values of these assets. Consequently, the future
depreciation charge could be revised and may have an impact on the profit of the future years.

Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification
of a lease requires significant judgement. The Company uses significant judgement in assessing the lease term
(including anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by
an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an
option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the
Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease,
it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the
option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if
there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a
portfolio of leases with similar characteristics.

Defined benefit plans:

The cost and present obligation of Defined Benefit Gratuity Plan and Compensated Absences are determined using
actuarial valuation. An actuarial valuation involves making various assumptions that may differ from actual developments
in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to
complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are assumed at each reporting date.

Fair Value measurement of Financial Instruments:

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using appropriate valuation techniques. The
inputs for these valuations are taken from observable sources where possible, but where this is not feasible, a degree of
judgement is required in establishing fair values. Judgements include considerations of various inputs including liquidity
risk, credit risk, volatility etc. Changes in assumptions/judgements about these factors could affect the reported fair value
of financial instruments.

Taxes:

Deferred tax, subject to the consideration of prudence, is recognised on temporary differences between the taxable
income and accounting income that originate in one period and are capable of reversal in one or more subsequent
periods. Deferred tax assets are recognised to the extent that there is reasonable certainty that sufficient future tax
income will be available against which such deferred tax assets can be realized.

Impairment of financial assets:

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates.
The company uses judgement in making these assumptions and selecting the inputs to the impairment calculation,
based on Company''s past history, existing market conditions as well as forward looking estimates at the end of each
reporting period.

C. RECENT PRONOUNCEMENT :

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. On March 31, 2025, MCA has not notified any new
standards or amendments to the existing standard applicable to the Company.

The material accounting policies are set out below.

2.1 Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually
defined terms of payment and excluding taxes or duties collected on behalf of the government.

Revenue is recognised in the Statement of Profit and Loss to the extent that it is probable that the economic benefits will
flow to the company and the revenue and costs, if applicable, can be measured reliably. Goods & Service Tax (GST) is not
received by the Company on its own account,rather, it is tax collected on value added to the commodity by the Company
on behalf of the Government. Accordingly, these are excluded from revenue.

Sale of Goods and Services

Revenue is recognised when the customer obtains control of the goods. The customer obtains control of goods at the
different point in time based on the delivery terms. Accordingly, company satisfies its performance obligation at the time of
dispatch of goods from the factory/stockyard/storage area/port as the case may be and accordingly revenue is recognised.
Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns
and allowances, trade discounts and volume rebates.

The determination of transaction price, its allocation to promised goods and allocation of discount or variable
compensation (if any) is done based on the contract with the customers.

Interest Income

Interest income from is recognised using the effective interest rate method and shown under interest income in statement
of profit and loss. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to the gross carrying amount of a financial asset.

Dividend Income

Dividend income from investment is recognised when the right to receive payment is established, which is generally when
shareholders approve the dividend.

2.2 Foreign Exchange Transactions

The functional currency of the Company is Indian Rupees which represents the currency of the primary economic
environment in which it operates.

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Monetary items denominated in foreign currencies at the year-end are restated at closing rates. Translation
differences on assets and liabilities carried at fair value are reported as part of the fair value gain/ (loss).

Nonmonetary items which are carried in terms of historical cost denominated ina foreign currency are reported using the
exchange rate at the date of the transaction and non-monetary items which are carried at fair value or other similar
valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were
determined.

Foreign exchange gain/(loss) resulting from the settlement of such transactions and from the translation of monetary
assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or
loss.

Exchange difference arising in respect of long term foreign currency monetary items that relates to acquisition of a
depreciable capital asset are added to or deducted from the cost of the asset and are depreciated over the remaining
useful life of an asset.

2.3 Borrowing Costs

Borrowing costs specifically identified to the acquisition or construction or production of qualifying assets is capitalized as
part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended
use.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

2.4 Employee Benefits

Employee benefits include provident fund, gratuity and leave encashment.

Short-term employee benefits

Short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized
undiscounted during the period the employee renders services. These benefits include salary, wages and bonus.

Post-employment benefit plans

Defined contribution Plans(Provident Fund)

Employee benefit under defined contribution plan comprising of provident fund is recognized based on the amount of
obligation of the Company to contribute to the plan. The contribution is paid to Regional Provident Fund Commissioner,
which is expensed during the year.

Defined benefit Plans(Gratuity)

The Company''s gratuity plan is a defined benefit plan. The present value of the obligation under such defined benefit plan
is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service
as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final
obligation. The obligation is measured at the present value of the estimated future cash flows. The discount rate used for
determining the present value of the obligation under defined benefit plans, is based on the prevailing market yields on
government bond as at the balance sheet date.

Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and
the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit
recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other
comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service
cost is recognised in profit or loss in the period of a plan amendment or curtailment. Net interest is calculated by applying
the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are
categorized as follows:

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

- Net interest expense or income; and

- Remeasurement

The Company has instituted a Group - cum - Life Insurance Scheme with the Life Insurance Corporation of India, so far as
gratuity is concerned.

2.5 Earnings Per Share

Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity
shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit after tax by the
weighted average number of equity shares considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

Antidilutive options are not considered in computing dilutive earning per share.

2.6 Cash Flow Statement

Cash flows are reported using the indirect method, where by profit after tax is adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows are segregated into operating, investing and
financing activities.

2.7 Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax'' as reported in
the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and
items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted
or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary

differences to the extent that it is probable that taxable profits will be available against which those deductible temporary
differences can be utilised.

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

Current and deferred tax for the year

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

Minimum alternate tax (MAT)

MAT paid in a year is charged to the Statement of profit and loss as current tax. MAT credit entitlement is recognised as
an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the
specified period, which is the period for which MAT credit is allowed to be carried forward. Such asset is reviewed at each
balance sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a
convincing evidence to the effect that the Company will pay normal income tax during the specified period.

2.8 Property, plant and equipment

Property, plant and equipment (other than freehold land) are stated at cost less accumulated depreciation and
accumulated impairment losses, if any The cost comprises purchase price, borrowing costs if capitalization criteria are met
and directly attributable cost of bringing the asset to its working condition for the intended use. Capitalization of costs in
the carrying amount of property, plant and equipment ceases when the item is in the location and condition necessary for it
to be capable of operating in the manner intended by the Company. Any trade discounts and rebates are deducted in
arriving at the purchase price.

Buildings held for use in the production or supply of goods, or for administrative purposes, are stated in the Balance Sheet
at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditure that is
directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the
manner intended by the management.

Subsequent expenditures

''Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases
the future benefits from the existing asset beyond its previously assessed standard of performance. Incomes and
expenses related to the incidental operations not necessary to bring the item to the location and the condition necessary
for it to be capable of operating in the manner intended by the Company are recognized in the Statement of profit and loss.
All other expenses on existing property, plant and equipment, including day-to-day repair and maintenance expenditure
and cost of replacing parts, are charged to the Statement of Profit & Loss for the year in which such expenses are
incurred.

Capital work-in-progress

Property, Plant and Equipment (PPE) in the course of construction for production, supply or administrative purposes are
carried at cost, less any recognised impairment loss. The cost of an asset comprises its purchase price or its construction
cost (net of applicable tax credits) and any cost directly attributable to bring the asset into the location and condition
necessary for it to be capable of operating in the manner intended by the Management. It includes professional fees and,
for qualifying assets, borrowing costs capitalised in accordance with the Company''s accounting policy. Such properties are
classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.
Parts of an item of PPE having different useful lives and material value and subsequent expenditure on PPE arising on
account of capital improvement or other factors are accounted for as separate components.

Depreciation of these PPE commences when the assets are ready for their intended use.

''An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or
when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of
property, plant and equipments 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 & Loss when the asset is derecognized.

Depreciation

Depreciation is provided on the cost of PPE less their residual values, using the straight line method over the useful life of
PPE as specified in Schedule II to the Companies Act, 2013 except in case of certain items of PPE where useful life has
been considered based on technical assessment. Estimated useful lives of the assets are as follows:

Depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate
accounted for on a prospective basis.

2.9 Intangible Assets

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization or depletion. All
costs, including finance cost till commencement of commercial production, net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

The useful life is assessed as either finite or indefinite. Intangible with finite lives are amortised on straight line basis over
the useful lives of the assets and assessed for impairment. The amortization expense on intangible assets with finite lives
is recognized in the statement of profit and loss.

Intangible assets with infinite lives are amortized on a straight line basis over the estimated useful economic life, company
has estimated economic useful life of 10 years for such assets. All intangible assets are assessed for impairment
whenever there is an indication that the intangible asset may be impaired. The amortization expense on intangible assets
is recognized in statement of profit and loss.

2.10 Impairment of PPE

At the end of each reporting period, the Company reviews the carrying amounts of its PPE and intangible assets of a cash
generating unit to determine whether there is any indication that those assets have suffered an impairment loss. If any
such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment
loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the
recoverable amount of the cash generating unit to which the asset belongs.

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

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is
recognised immediately in statement of profit and loss.

An assessment is made at the end of each reporting period to see if there are any indications that impairment losses
recognized earlier may no longer exist or may have come down. The impairment loss is reversed, if there has been a
change in the estimates used to determine the asset''s recoverable amount since the previous impairment loss was
recognized. If it is so, the carrying amount of the asset is increased to the lower of its recoverable amount and the carrying
amount that have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior
years. After a reversal the depreciation charge is adjusted in future periods to allocate the asset''s revised carrying amount,
less any residual value, on a systematic basis over its remaining useful life. Reversals of Impairment loss are recognized
in the statement of profit and loss.

2.11 Inventories

Inventoriesare valued at lower of cost and net realizable value. Cost of inventories comprises of purchase cost,conversion
cost and other costs incurred in bringing inventories to their present location and condition. The cost has been determined
as under:

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Mar 31, 2024

2. BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES

This note provides a list of the material accounting policies adopted in the presentation of these standalone financial
statements.

A. BASIS OF PREPARATION:

COMPLIANCE WITH IND AS

This Financial Statements comply in all material respects with Indian Accounting Standard (''Ind AS'') as notified
by the Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (Act) read with
Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.
These financial statements includes Balance Sheet as at 31 March 2024, the Statement of Profit and Loss
including Other Comprehensive Income, Statement of Cash flows and Statement of changes in equity for the
year ended 31 March 2024, and a summary of material accounting policies and other explanatory information
(together hereinafter referred to as "Financial Statements").

The accounting policies are applied consistently to all the periods presented in the Financial Statement.

i. Historical cost convention:

The Financial Statements have been prepared on a historical cost basis, except for the following:

a) Certain financial assets and liabilities (including derivative instruments) that are measured at fair value

b) Defined benefit plans: plan assets measured at fair value

ii. Rounding of Amounts:

The financial statements are presented in INR and all values are rounded to the nearest lakhs, except when
otherwise indicated.

The Company has prepared the financial statements on the basis that it will continue to operate as a going
concern.

B. SIGNIFICANT ESTIMATES, JUDGEMENTS AND ASSUMPTIONS

The preparation of financial statements in conformity with Ind AS requires the management to make estimates,
assumptions and exercise judgment in applying the accounting policies that affect the reported amount of
assets, liabilities and disclosure of contingent liabilities at the end of the financial statements and reported
amounts of income and expense during the year.

The management believes that these estimates are prudent and reasonable and are based on management''s
best knowledge of current events and actions. Actual results could differ from these estimates and difference
between actual results and estimates are recognised in the period in which results are known or materialised.

(i) Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of
the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year are discussed below:

Allowances for doubtful debts

The Company makes allowances for doubtful debts based on an assessment of the recoverability of trade
and other receivables. The identification of doubtful debts requires use of judgments and estimates.
Where the expectation is different from the original estimate, such difference will impact the carrying
value of the trade and other receivables and doubtful debts expenses in the period in which such estimate
has been changed.

Allowances for inventories

Management reviews the inventory age listing on a periodic basis. This review involves comparison of the
carrying value of the aged inventory items with the respective net realizable value. The purpose is to
ascertain whether an allowance is required to be made in the financial statements for any obsolete and
slow moving items. Management is satisfied that adequate allowance for obsolete and slow-moving
inventories has been made in the financial statements.

Liability for sales return

In making judgment for liability for sales return, the management considered the detailed criteria for the
recognition of revenue from the sale of goods set out in Ind AS 115 and in particular, whether the
Company had transferred to the buyer the significant risk and rewards of ownership of the goods.
Following the detailed quantification of the Company''s liability towards sales return, the management is
satisfied that significant risk and rewards have been transferred and that recognition of the revenue in the
current year is appropriate, in conjunction with the recognition of an appropriate liability for sales return.
Accruals for estimated product returns, which are based on historical experience of actual sales returns
and adjustment on account of current market scenario is considered by Company to be reliable estimate of
future sales returns.

Useful lives of property, plant and equipment (''PPE'') and intangible assets

Management reviews the estimated useful lives and residual value of PPE and Intangibles at the end of
each reporting period. Factors such as changes in the expected level of usage, technological developments
and product life-cycle, could significantly impact the economic useful lives and the residual values of these
assets. Consequently, the future depreciation charge could be revised and may have an impact on the
profit of the future years.

Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgement. The Company uses significant judgement in
assessing the lease term (including anticipated renewals) and the applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together with both
periods covered by an option to extend the lease if the Company is reasonably certain to exercise that
option; and periods covered by an option to terminate the lease if the Company is reasonably certain not
to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to
extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and
circumstances that create an economic incentive for the Company to exercise the option to extend the
lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a
change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease being
evaluated or for a portfolio of leases with similar characteristics.

Defined benefit plans:

The cost and present obligation of Defined Benefit Gratuity Plan and Compensated Absences are
determined using actuarial valuation. An actuarial valuation involves making various assumptions that may
differ from actual developments in the future. These include the determination of the discount rate, future
salary increases and mortality rates. Due to complexities involved in the valuation and its long term nature,
a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
assumed at each reporting date.

Fair Value measurement of Financial Instruments:

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using appropriate
valuation techniques. The inputs for these valuations are taken from observable sources where possible,
but where this is not feasible, a degree of judgement is required in establishing fair values.
Judgementsinclude considerations of various inputs including liquidity risk, credit risk, volatility etc.
Changes in assumptions/judgements about these factors could affect the reported fair value of financial
instruments.

Taxes:

Deferred tax, subject to the consideration of prudence, is recognised on temporary differences between
the taxable income and accounting income that originate in one period and are capable of reversal in one

or more subsequent periods. Deferred tax assets are recognised to the extent that there is reasonable
certainty that sufficient future tax income will be available against which such deferred tax assets can be
realized.

Impairment of financial assets:

The impairment provision for financial assets are based on assumptions about risk of default and expected
loss rates. The company uses judgement in making these assumptions and selecting the inputs to the
impairment calculation, based on Company''s past history, existing market conditions as well as forward
looking estimates at the end of each reporting period.

C. RECENT PRONOUNCEMENT :

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2024, MCA has not
notified any new standards or amendments to the existing standard applicable to the Company.

The material accounting policies are set out below.

2.1 Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually
defined terms of payment and excluding taxes or duties collected on behalf of the government.

Revenue is recognised in the Statement of Profit and Loss to the extent that it is probable that the economic benefits
will flow to the company and the revenue and costs, if applicable, can be measured reliably. Goods & Service Tax (GST)
is not received by the Company on its own account, rather, it is tax collected on value added to the commodity by the
Company on behalf of the Government. Accordingly, these are excluded from revenue.

Sale of Goods and Services

Revenue is recognised when the customer obtains control of the goods. The customer obtains control of goods at the
different point in time based on the delivery terms. Accordingly, company satisfies its performance obligation at the
time of dispatch of goods from the factory/stockyard/storage area/port as the case may be and accordingly revenue is
recognised. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable,
net of returns and allowances, trade discounts and volume rebates.

The determination of transaction price, its allocation to promised goods and allocation of discount or variable
compensation (if any) is done based on the contract with the customers.

Interest Income

Interest income from is recognised using the effective interest rate method and shown under interest income in
statement of profit and loss. The effective interest rate is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to the gross carrying amount of a financial asset.

Dividend Income

Dividend income from investment is recognised when the right to receive payment is established, which is generally
when shareholders approve the dividend.

2.2 Foreign Exchange Transactions

The functional currency of the Company is Indian Rupees which represents the currency of the primary economic
environment in which it operates.

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Monetary items denominated in foreign currencies at the year-end are restated at closing rates.
Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain/ (loss).

Nonmonetary items which are carried in terms of historical cost denominated in a foreign currency are reported using
the exchange rate at the date of the transaction and non-monetary items which are carried at fair value or other
similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the
values were determined.

Foreign exchange gain/(loss) resulting from the settlement of such transactions and from the translation of monetary
assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or
loss.

Exchange difference arising in respect of long term foreign currency monetary items that relates to acquisition of a
depreciable capital asset are added to or deducted from the cost of the asset and are depreciated over the remaining
useful life of an asset.

2.3 Borrowing Costs

Borrowing costs specifically identified to the acquisition or construction or production of qualifying assets is capitalized
as part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for
intended use.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

2.4 Employee Benefits

Employee benefits include provident fund, gratuity and leave encashment.

Post-employment benefit plans

Defined contribution Plans (Provident Fund)

Employee benefit under defined contribution plan comprising of provident fund is recognized based on the amount of
obligation of the Company to contribute to the plan. The contribution is paid to Regional Provident Fund
Commissioner, which is expensed during the year.

Defined benefit Plans (Gratuity)

The Company''s gratuity plan is a defined benefit plan. The present value of the obligation under such defined benefit
plan is determined based on actuarial valuation using the projected unit credit method, which recognizes each period
of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build
up the final obligation. The obligation is measured at the present value of the estimated future cash flows. The
discount rate used for determining the present value of the obligation under defined benefit plans, is based on the
prevailing market yields on government bond as at the balance sheet date.

Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and
the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit
recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other
comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service
cost is recognised in profit or loss in the period of a plan amendment or curtailment. Net interest is calculated by
applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit
costs are categorized as follows:

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

- Net interest expense or income; and

- Remeasurement

The Company has instituted a Group - cum - Life Insurance Scheme with the Life Insurance Corporation of India, so
far as gratuity is concerned.

2.5 Earnings Per Share

Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity
shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit after tax by the
weighted average number of equity shares considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
Antidilutive options are not considered in computing dilutive earning per share.

2.6 Cash Flow Statement

Cash flows are reported using the indirect method, where by profit after tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and item of income or expenses associated with investing or financing cash flows. The cash flows are segregated into
operating, investing and financing activities.

2.7 Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as
reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in
other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates
that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

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

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

Current and deferred tax for the year

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

Minimum alternate tax (MAT)

MAT paid in a year is charged to the Statement of profit and loss as current tax. MAT credit entitlement is recognised
as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax
during the specified period, which is the period for which MAT credit is allowed to be carried forward. Such asset is
reviewed at each balance sheet date and the carrying amount of the MAT credit asset is written down to the extent
there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the
specified period.

2.8 Property, plant and equipment

Property, plant and equipment (other than freehold land) are stated at cost less accumulated depreciation and
accumulated impairment losses, if any The cost comprises purchase price, borrowing costs if capitalisation criteria
are met and directly attributable cost of bringing the asset to its working condition for the intended use.
Capitalisation of costs in the carrying amount of property, plant and equipment ceases when the item is in the
location and condition necessary for it to be capable of operating in the manner intended by the Company. Any trade
discounts and rebates are deducted in arriving at the purchase price.

Buildings held for use in the production or supply of goods, or for administrative purposes, are stated in the Balance
Sheet at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditure
that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of
operating in the manner intended by the management.

Subsequent expenditures

''Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it
increases the future benefits from the existing asset beyond its previously assessed standard of performance.
Incomes and expenses related to the incidental operations not necessary to bring the item to the location and the
condition necessary for it to be capable of operating in the manner intended by the Company are recognized in the
Statement of profit and loss. All other expenses on existing property, plant and equipment, including day-to-day
repair and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit & Loss for
the year in which such expenses are incurred.

Capital work-in-progress

Property, Plant and Equipment (PPE) in the course of construction for production, supply or administrative purposes
are carried at cost, less any recognised impairment loss. The cost of an asset comprises its purchase price or its
construction cost (net of applicable tax credits) and any cost directly attributable to bring the asset into the location
and condition necessary for it to be capable of operating in the manner intended by the Management. It includes
professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Company''s accounting
policy. Such properties are classified to the appropriate categories of property, plant and equipment when
completed and ready for intended use. Parts of an item of PPE having different useful lives and material value and
subsequent expenditure on PPE arising on account of capital improvement or other factors are accounted for as
separate components.

Depreciation of these PPE commences when the assets are ready for their intended use.

''An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal
or when no future economic benefits are expected from its use or disposal. Gains or losses arising from
derecognition of property, plant and equipments are measured as the difference between the net disposal proceeds

2.9 Intangible Assets

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization or
depletion. All costs, including finance cost till commencement of commercial production, net charges on foreign
exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are
capitalized.

The useful life is assessed as either finite or indefinite. Intangible with finite lives are amortised on straight line basis
over the useful lives of the assets and assessed for impairment. The amortization expense on intangible assets with
finite lives is recognized in the statement of profit and loss.

Intangible assets with infinite lives are amortized on a straight line basis over the estimated useful economic life,
company has estimated economic useful life of 10 years for such assets. All intangible assets are assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The amortization expense on
intangible assets is recognized in statement of profit and loss.

2.10 Impairment of PPE

At the end of each reporting period, the Company reviews the carrying amounts of its PPE and intangible assets of a
cash generating unit to determine whether there is any indication that those assets have suffered an impairment
loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent
of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the
Company estimates the recoverable amount of the cash generating unit to which the asset belongs.

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

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is
recognised immediately in statement of profit and loss.

An assessment is made at the end of each reporting period to see if there are any indications that impairment losses
recognized earlier may no longer exist or may have come down. The impairment loss is reversed, if there has been a
change in the estimates used to determine the asset''s recoverable amount since the previous impairment loss was
recognized. If it is so, the carrying amount of the asset is increased to the lower of its recoverable amount and the
carrying amount that have been determined, net of depreciation, had no impairment loss been recognized for the
asset in prior years. After a reversal the depreciation charge is adjusted in future periods to allocate the asset''s
revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. Reversals of
Impairment loss are recognized in the statement of profit and loss.

2.11 Inventories

Inventories are valued at lower of cost and net realizable value. Cost of inventories comprises of purchase cost,
conversion cost and other costs incurred in bringing inventories to their present location and condition. The cost has
been determined as under:

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Mar 31, 2015

A Basis of Preparation of Financial Statements

The financial statemants are prepared in accordance with indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprise 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 the provision of the Act (to the extent notified).Accounting policies have been consistently applied except where a newly issued Accounting Standard is intially adopted or a revision to an existing accounting standards requires a change in the accounting policy hitherto in use.

B Use of Estimates

The preparation of financial statements in conformity with the GAAP requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements, the reported amount of revenues and expenses during the reporting period and the disclousers relating to contingent liabilities as of the date of the financial statements. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in outcomes difference from the estimates. Difference between the actual results and estimates are recognised in the period in which the results are known or materialised.

Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in the current and future periods.

C Revenue Recognition

a) Sales

Sales and job work are recognized on shipment or dispatch to customer and are net of excise duty, VAT, trade discounts and returns if any.

b) Other Income

Other Income is recognized on accrual basis except when realisation of such income is uncertain.

Export incentives, insurance and other claims, where quantum of accruals cannot be ascertained with reasonable certainty, are accounted on acceptance basis.

D Fixed Assets

Fixed Assets are stated at cost, net of CENVAT credit, if any, after reducing accumulated depreciation until the date of the Balance Sheet. Direct cost are capitalized until the assets are ready for use and include financing costs relating to any borrowing attributable to acquisition. Capital work - in- progress includes the cost of fixed assets that are not yet ready for the intended use, advances paid to acquire fixed assets and the cost of assets not put to use before the balance sheet date.

E Method of Depreciation

a) Depreciation on fixed assets has been provided on Straight Line method over the useful life of the Asset.

b) Effective 1st April, 2014, the Company depreciates its fixed assets over the useful life in the manner prescribed in Schedule II of the Act, as against the earlier practise of depreciating at the retes prescribed in Schedule XIV of the Companies Act 1956.

c) Depreciation on additions to assets or on sale/discardment of assets, is calculated pro rata from the date of such addition / put to use or upto the date of such sale/discardment, as the case may be.

F Intangible Assets

Intangible assets are recognized as per the criteria specified in Accounting Standard (AS) 26 "Intangible Assets" issued by the Institute of Chartered Accountants of India and are amortized over their respective individual estimated useful lives on a straight line basis, commencing from the date the asset is available to the company for its use.

G Investments

Long Term Investments are stated at cost of acquisition, but in case of permanent diminution in value of long term investment, provision is made to recognise the decline.

H Foreign Exchange Transaction

Foreign currency transactions during the year are recorded at rates of exchange prevailing on the date of transactions. Foreign currency assets and liabilities are translated into Rupees at the rate of exchange prevailing on the date of the Balance Sheet. All exchange differences are dealt with in the statement of profit and loss, except those relating to the acquisition of fixed assets which are adjusted in the cost of the assets till it is ready for the intended use.

Exchange differences arising on account of rollover / cancellation of forward contracts are recognized as income / expense of the period in line with the movement in the underlying exposures.

I Inventories

All the items of Inventories are valued Lower of cost or net realisable value. The basis of determining cost for various categories of inventories is stated hereunder: -

a) Raw materials Lower of Cost / Net realisable value (FIFO)

b) Packing Materials . Lower of Cost / Net realisable value (FIFO)

c) Material in Transit Actual cost

d) Work in process Material cost plus appropriate share of Labor, Mfg overheads

e) Finished Goods Material cost plus appropriate share of Labor, Mfg overheads

f) Scrap At realisable value

g) Stores & others At cost

h) Cylinders At cost less amortization in case of old cylinders

J Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of such assets. A qualifying asset is an asset that necessarily takes a 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.

K Retiring Benefits

a) Provident Fund

Contribution to Provident Fund is made to Government / Recognized provident fund as required by the statutes / rules.

b) Gratuity

The Company has instituted a Group - cum - Life Insurance Scheme with the Life Insurance Corporation of India, so far as gratuity is concerned.

c) Leave Encashment

The benefit of encashment of the leave is given to the employees of the company during the year.

L Provision, Contingent Liabilities and Contingent Assets

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

M Taxes On Income

The provision for taxation is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income-tax Act, 1961.

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

N Prior Period Adjustments

All identifiable items of income and expenditure pertaining to prior period are accounted through "Prior Period Adjustments Account"

O Impairment Of Assets

The company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit & Loss Account. If at the Balance Sheet date, there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

P Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss after tax for the period attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

Q Cash and cash equivalent

Cash and cash equivalents for the purposes of financial statement includes cash in hand, Balances with Banks and Fixed deposits with banks.

R Government Grants and Subsidies

a) Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached thereto and that the grants will be received.

b) Capital Government Grants or Subsidies relating to specific fixed assets are deducted from the gross value of the respective fixed assets and other capital grants are credited to Capital Reserve.

c) Other Government Grants or Subsidies relating to an expense item are recognised as income over the period to match them on a systematic basis to the costs or deducted from related expenses.

S Current / Non-Current

All assets and liabilities are presented as Current or Non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation, the Company has ascertained its operating cycle as 12 months for the purpose of Current / Non current classification of assets and liabilities.

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Mar 31, 2014

A. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention on accrual basis of accounting and in accordance with applicable Accounting Standards and relevant presentational requirement of the Companies Act, 1956 read with the General Circular 8/2014 dated 4th April, 2014 issued by Ministry of Companies Affairs regarding various Provisions/Schedules/Rules.

B. Use of Estimates

The preparation of financial statements in conformity with the GAAP requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements, the reported amount of revenues and expenses during the reporting period and the disclosures relating to contingent liabilities as of the date of the financial statements. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in outcomes difference from the estimates. Difference between the actual results and estimates are recognised in the period in which the results are known or materialised.

Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in the current and future periods.

C. Revenue Recognition

a) Sales

Sales and job work are recognized on shipment or dispatch to customer and are net of excise duty, VAT, trade discounts and returns if any.

b) Other Income

Other Income is recognized on accrual basis except when realisation of such income is uncertain.

Export incentives, insurance and other claims, where quantum of accruals cannot be ascertained with reasonable certainty, are accounted on acceptance basis.

D. Fixed Assets

Fixed Assets are stated at cost, net of CENVAT credit, if any, after reducing accumulated depreciation until the date of the Balance Sheet. Direct cost are capitalized until the assets are ready for use and include financing costs relating to any borrowing attributable to acquisition. Capital work-in-progress includes the cost of fixed assets that are not yet ready for the intended use, advances paid to acquire fixed assets and the cost of assets not put to use before the balance sheet date.

Depreciation on fixed assets has been provided on Straight Line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions to the Fixed Assets are provided on pro-rata basis from the date of put to use.

E. Intangible Assets

Intangible assets are recognized as per the criteria specified in Accounting Standard (AS) 26 "Intangible Assets" issued by the Institute of Chartered Accountants of India and are amortized over their respective individual estimated useful lives on a straight line basis, commencing from the date the asset is available to the company for its use.

F. Investments

Long Term Investments are stated at cost of acquisition, but in case of permanent diminution in value of long term investment, provision is made to recognise the decline.

G. Foreign Exchange Transaction

Foreign currency transactions during the year are recorded at rates of exchange prevailing on the date of transactions. Foreign currency assets and liabilities are translated into Rupees at the rate of exchange prevailing on the date of the Balance Sheet. All exchange differences are dealt with in the statement of profit and loss, except those relating to the acquisition of fixed assets which are adjusted in the cost of the assets till it is ready for the intended use.

Exchange differences arising on account of rollover/cancellation of forward contracts are recognized as income/expense of the period in line with the movement in the underlying exposures.

H. Inventories

All the items of Inventories are valued Lower of cost or net realisable value. The basis of determining cost for various categories of inventories is stated hereunder:-

a) Raw materials : Lower of Cost/Net realisable value (FIFO)

b) Packing Materials : Lower of Cost/Net realisable value (FIFO)

c) Material in Transit : Actual cost

d) Work in process : Material cost plus appropriate share of Labor, Mfg overheads

e) Finished Goods : Material cost plus appropriate share of Labor, Mfg overheads

f) Scrap : At realisable value

g) Stores & others : At cost

h) Cylinders : At cost less amortization in case of old cylinders

I. Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of such assets. A qualifying asset is an asset that necessarily takes a 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.

J. Retiring Benefits

a) Provident Fund

Contribution to Provident Fund is made to Government/Recognized provident fund as required by the statutes/rules.

b) Gratuity

The Company has instituted a Group-cum-Life Insurance Scheme with the Life Insurance Corporation of India, so far as gratuity is concerned.

c) Leave Encashment

The benefit of encashment of the leave is given to the employees of the company during the year.

K. Provision, Contingent Liabilities and Contingent Assets

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

L. Taxes On Income

The provision for taxation is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income-tax Act, 1961.

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

M. Prior Period Adjustments

All identifiable items of income and expenditure pertaining to prior period are accounted through "Prior Period Adjustments Account".

N. Impairment Of Assets

The company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit & Loss Account. If at the Balance Sheet date, there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

O. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss after tax for the period attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

P. Cash and cash equivalent

Cash and cash equivalents for the purposes of financial statement includes cash in hand, Balances with Banks and Fixed deposits with banks.

Q. Government Grants and Subsidies

a) Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached thereto and that the grants will be received.

b) Capital Government Grants or Subsidies relating to specific fixed assets are deducted from the gross value of the respective fixed assets and other capital grants are credited to Capital Reserve.

c) Other Government Grants or Subsidies relating to an expense item are recognised as income over the period to match them on a systematic basis to the costs or deducted from related expenses.

R. Current/Non-Current

All assets and liabilities are presented as Current or Non-current as per the Company''s normal operating cycle and other criteria set out in the Revised Schedule VI of the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation, the Company has ascertained its operating cycle as 12 months for the purpose of Current/Non current classification of assets and liabilities.

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Mar 31, 2011

BASIS OF ACCOUNTING

The financial statements have been prepared under the historical cost convention on accrual basis of accounting and in accordance with applicable Accounting Standards and relevant presentational requirement of the Companies Act, 1956.

2 REVENUE RECOGNITION

a) Sales

Sales are recongnised on shipment or dispatch to customer and are inclusive of income from job work, excise duty and VAT, net of trade discounts and returns

b) Other Income

Other Income is recongnised on accrual basis except when realisation of such income is uncertain.

Claims lodged with the Insurance Company in respect of risks covered are accounted for as and when admitted by the Insurance Company

3 FIXED ASSETS

Fixed Assets are stated at cost, net of CENVAT credit, if any, after reducing accumulated depreciation until the date of the Balance Sheet. Direct cost are capitalized until the assets are ready for use and include financing costs relating to any borrowing attributable to acquisition. Capital work - in- progress includes the cost of fixed assets that are not yet ready for the intended use, advances paid to acquire fixed assets and the cost of assets not put to use before the balance sheet date

Depreciation on fixed assets has been provided on Straight Line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions to the Fixed Assets are provided on pro-rata basis from the succeeding month in which put to use.

4 INVESTMENTS

Long Term Investments are stated at cost of acquisition, but in case of permanent diminution in value of long term

investment, provision is made to recognise the decline.

5 INVENTORIES

All the items of Inventories are valued Lower of cost or net realizable value. The basis of determining cost for various categories of inventories is stated here under:-

a) Raw materials Lower of Cost / Net realisable value First in First out basis

b) Packing Materials Lower of Cost / Net realisable value First in First out basis

c) Material in Transit Actual cost

d) Work in process Material cost plus appropriate share of Labour, Mfg overheads

e) Finished Goods Material cost plus appropriate share of Labour, Mfg overheads

f) Scrap At realisable value

g) Stores & others At cost

h) Cylinders At cost less amortization in case of old cylinders

6 BORROWING COSTS

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of such assets. A qualifying asset is an asset that necessarily takes a 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,

7 INTANGIBLE ASSETS

Intangible assets are recognized as per the criteria specified in Accounting Standard (AS) 26 "Intangible Assets" issued by the Institute of Chartered Accountants of India and are amortized over their respective individual estimated useful lives on a straight line basis, commencing from the date the asset is available to the company for its use.

8 RETIRING BENEFITS

a) Provident Fund

Contribution to Provident Fund is made to Government / Recognized provident fund as required by the statutes / rules.

b) Gratuity

Liability with regard to gratuity has been determined by actuarial valuation as at the balance sheet date. The company contributes to the group gratuity plan of LIC of India. The same Is accounted on cash basis.

c) Leave Encashment

The company extends the benefit of encashment of leave to it's' employees while in service as well as on retirement basis. The encashment of leave while in service, being at the option of employees Is being accounted on cash basis.

9 FOREIGN EXCHANGE TRANSACTION

Foreign currency transactions during the year are recorded at rates of exchange prevailing on the date of transactions. Foreign currency essets and liabilities are translated into Rupees at the rate of exchange prevailing on the date of the Balance Sheet. All exchange differences are dealt with in the statement of profit and loss, except those relating to the acquisition of fixed assets which are adjusted in the cost of the assets.

10 CONTINGENT LIABILITIES

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

11 TAXES ON INCOME

The provision for taxation is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income-tax Act, 1961.

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

12 PRIOR PERIOD ADJUSTMENTS

All identifiable items of income and expenditure pertaining to prior period are accounted through "Prior Period Adjustments Account"

13 IMPAIRMENT OF ASSETS

The company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit & Loss Account. If at the Balance Sheet date, there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

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Mar 31, 2010

1 BASIS OF ACCOUNTING

The financial statements have been prepared under the historical cost convention on accrual basis of accounting and in accordance with applicable Accounting Standards and relevant presentational requirement of the Companies Act, 1956.

2 REVENUE RECOGNITION

a) Sales

Sales are recongnised on shipment or dispatch to customer and are inclusive of income from job work, excise duty and VAT, net of trade discounts and returns

b) Other Income

Other income is recongnised on accrual basis except when realisation of such income 8s uncertain.Claims lodged with the Insurance Company in respect of risks covered are accounted for as and when admitted by the Insurance Company

3 FiXED ASSETS

Fixed Assets are stated at cost, net of GENVAT credit, if any, after reducing accumulated depreciation until the date of the Balance Sheet. Direct cost are capitalized until the assets are ready for use and include financing costs relating to any borrowing attributable to acquisition. Capital work - in- progress includes the cost of fixed assets that are not yet ready for the intended use, advances paid to acquire fixed assets and the cost of assets not put to use before the balance sheet date.

Depreciation on fixed assets has been provided on Straight Line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions to the Fixed Assets are provided on pro-rata basis from the succeeding month in which put to use.

4 INVESTMENTS

Long Term Investments are stated at cost of acquisition, but in case of permanent diminution In value of long term investment, provision is made to recognise the decline.

5 INVENTORIES

All the items of Inventories are valued Lower of cost or net realizable value. The basis of determining cost for various categories of inventories is stated hereunder:-

a) Raw materials Lower of Cost / Net realisable value First in First out basis

b) Packing Materials Lower of Cost / Net realisable value First in First out basis

c) Material in Transit Actual cost

d) Work in process Material cost plus appropriate share of Labour, Mfg overheads

e) Finished Goods Material cost plus appropriate share of Labour, Mfg overheads

f) Scrap At realisable value

g) Stores & others At cost

h) Cylinders At cost less amortization in case of old cylinders

6 BORROWING COSTS

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of such assets. A qualifying asset is an asset that necessarily takes a 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.

7 INTANGIBLE ASSETS

Intangible assets are recognized as per the criteria specified in Accounting Standard (AS) 26 Intangible Assets" issued by the Institute of Chartered Accountants of India and are amortized over their respective individual estimated useful lives on a straight line basis, commencing from the date the asset is available to the company for its use.

8 RETIRING BENEFITS

a) Provident Fund

Contribution to Provident Fund is made to Government / Recognized provident fund as required by the statutes / rules.

b) Gratuity

Liability with regard to gratuity has been determined by actuarial valuation as at the balance sheet date. The company contributes to the group gratuity plan of LIC of India. The same is accounted on cash basis.

c) Leave Encashment

The company extends the benefit of encashment of leave to its employees while in service as well as on retirement basis. The encashment of leave while in service, being at the option of employees is being accounted on cash basis.

9 FOREIGN EXCHANGE TRANSACTION

Foreign currency transactions during the year are recorded at rates of exchange prevailing on the date of transactions. Foreign currency assets and liabilities are translated into Rupees at the rate of exchange prevailing on the date of the Balance Sheet. All exchange differences are dealt with in the statement of profit and loss, except those relating to the acquisition of fixed assets which are adjusted in the cost of the assets.

10 CONTINGENT LIABILITIES

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

11 TAXES ON INCOME

The provision for taxation is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income-tax Act, 1961.

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

12 PRIOR PERIOD ADJUSTMENTS

All identifiable items of income and expenditure pertaining to prior period are accounted through "Prior Period Adjustments Account"

13 IMPAIRMENT OF ASSETS

The company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit & Loss Account. If at the Balance Sheet date, there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.