Accounting Policies of RDB Rasayans Ltd. Company

Mar 31, 2025

3 Material accounting policies

a) Operating Cycle

All assets and liabilities have been classified as current or non-current as
per the Company''s normal operating cycle and other criteria set out in
the Schedule III to the Companies Act, 2013 and Ind AS 1 - Presentation of
Financial Statements based on the nature of products and the time
between the acquisition of assets for processing and their realisation in
cash and cash equivalents.

b) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of
one entity and a financial liability or equity instrument of another entity.

i. Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the
case of financial assets not recorded at fair value through profit or
loss, transaction costs that are attributable to the acquisition of the
financial asset. However, trade receivables that do contain a
significant financing component are measured at transaction price.
Regular way purchase and sale of financial assets are accounted for
at trade date.

Note 3 : Statement of Material Accounting Policy
Subsequent measurement

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

• Amortised cost

• Fair value through other comprehensive income (FVTOCI)

• Fair value through profit or loss (FVTPL)Financial assets are not
reclassified subsequent to their initial recognition, except if and
in the period the Company changes its business model for
managing financial assets.

Financial assets at amortised cost:

A financial asset is measured at amortised cost if it is held within a
business model whose objective is to hold the asset in order to
collect contractual cash flows and the contractual terms of the
financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount
outstanding.

Financial assets at FVTOCI :

A financial asset is measured at FVTOCI if it is held within a business
model whose objective is achieved by both collecting contractual
cash flows and selling financial assets and the contractual terms of
the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount
outstanding.

Financial assets included within the FVTOCI category are measured
initially as well as at each reporting date at fair value. Fair value
movements are recognized in the other comprehensive income
(OCI).

Financial assets at FVTPL:

A financial asset which is not classified in any of the above categories
are measured at FVTPL. Financial assets included within the FVTPL
category are measured at fair value with all changes recognised in
the Statement of Profit & Loss.

Other equity investments

All other equity investments are measured at fair value, with value
changes recognised in Statement of Profit and Loss, except for those

equity investments for which the Company has elected to present
the value changes in ''Other Comprehensive Income''.

Derecognition

The Company derecognizes a financial asset when the contractual
rights to the cash flows from the financial asset expire or it transfers
the financial asset and the transfer qualifies for derecognition under
Ind AS 109.

ii. Financial liability

Initial recognition and measurement

Financial liabilities are initially recognised at fair value plus any
transaction cost that are attributable to the acquisition of the
financial liabilities except financial liabilities at fair value through
profit or loss which are intially measured at fair value.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are
classified in following categories:

• Financial liabilities through profit or loss (FVTPL)

• Financial liabilities at amortised cost
Financial liabilities through FVTPL

A financial liability is classified as at FVTPL if it is classified as held-for-
trading, or it is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured at fair value
and net gains and losses, including any interest expense, are
recognised in profit or loss.

Financial liabilities at amortised cost

Other financial liabilities are subsequently measured at amortised
cost using the effective interest method. Interest expense and any
gain or loss on derecognition are recognised in profit or loss.

Interest bearing loans and borrowings are subsequently measured
at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised as
well as through the EIR amortisation process. For trade and other
payables maturing within one year from the balance sheet date, the
carrying amounts approximates fair value due to the short maturity
of these instruments.

Derecognition

A financial liability (or a part of a financial liability) is derecognized
from the Company''s Balance Sheet when the obligation specified in
the contract is discharged or cancelled or expires.

iii. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount
presented in the balance sheet when, and only when, the Company
currently has a legally enforceable right to set off the amounts and it
intends either to settle them on a net basis or to realise the asset and
settle the liability simultaneously.

) Property, Plant and Equipment
Recognition and measurement

Items of property, plant and equipment are measured at cost, which
includes capitalised borrowing costs, less accumulated depreciation and
accumulated impairment losses, if any. The cost of an item of property,
plant and equipment comprises its purchase price, including import
duties and non-refundable purchase taxes, after deducting trade
discounts and rebates, any directly attributable cost of bringing the item
to its working condition for its intended use and estimated costs of
dismantling and removing the item and restoring the site on which it is
located. Borrowing costs directly attributable to the acquisition or

construction of those qualifying property, plant and equipment, which
necessarily take a substantial period of time to get ready for their
intended use, are capitalised.

If significant parts of an item of property, plant and equipment have
different useful lives, then they are accounted for as separate
components of property, plant and equipment.

Assets retired from active use and held for disposal are stated at the
lower of their net book value and net realisable value and shown under
''Other current assets''.

Property, plant and equipment is eliminated from the financial
statements on disposal or when no further benefit is expected from its
use and disposal. Any gain or loss on disposal of an item of property, plant
and equipment is recognised in profit or loss.

Expenses incurred relating to project, net of income earned during the
project development stage prior to its intended use, are considered as
pre - operative expenses and disclosed under Capital Work - in - Progress.

ii. Subsequent expenditure

Subsequent expenditure is capitalized only when it is probable that the
future economic benefits associated with the expenditure will flow to the
Company. Ongoing repairs and maintenance are expensed as
incurred.

iii. Depreciation and amortisation

Depreciation and amortisation for the year is recognised in the
Statement of Profit and Loss.

Depreciation on property, plant & equipments are provided on straight
line method over the useful lives of assets, at the rates and in the manner
specified in Part C of Schedule II of the Act.

Freehold land is not depreciated. Leasehold land (includes development
cost) is amortised on a straight line basis over the period of respective
lease, except land acquired on perpetual lease.

Depreciation methods, useful lives and residual values are reviewed at
each financial year end and adjusted as appropriate.

d) Intangible Assets

Intangible assets with finite useful lives that are acquired separately are
carried at cost less accumulated amortisation and any accumulated
impairment losses. Amortisation is recognised on a straight-line basis over
their estimated useful lives. An intangible asset is derecognised on disposal,
or when no future economic benefits are expected from use or disposal.
Estimated useful life of the Computer Software is 5 years.

e) Inventories

Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and other costs
including manufacturing overheads net of recoverable taxes incurred in
bringing them to their respective present location and condition. Cost of
raw materials is determined on FIFO basis.Value of stores and spares,
packing materials, trading and other products are determined on
weighted average basis.

f) Impairment

Impairment of non-financial assets

The Company''s non-financial assets are reviewed at each reporting date
to determine whether there is any indication of impairment. For
impairment testing, assets that do not generate independent cash
inflows are grouped together into cash-generating units (CGUs). Each
CGU represents the smallest Company of assets that generates cash
inflows that are largely independent of the cash inflows of other assets or
CGUs. If any such indication exists the recoverable amount of an asset or

CGU is estimated to determine the extent of impairment, if any. When it is
not possible to estimate the recoverable amount of an individual asset,
the Company estimates the recoverable amount of the CGU to which the
asset belongs. An impairment loss is recognised in the Statement of Profit
and Loss to the extent, asset''s carrying amount exceeds its recoverable
amount. The recoverable amount is higher of an asset''s fair value less
cost of disposal and value in use. Value in use is based on the estimated
future cash flows, discounted to their present value using pre-tax
discount rate that reflects current market assessments of the time value
of money and risk specific to the assets.The impairment loss recognised in
prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.

g) Employee Benefits

i. Short-term employee benefits

The undiscounted amount of short term employee benefits expected to
be paid in exchange for the services rendered by employees are
recognised as an expense during the period when the employees render
the services.

ii. Defined contribution plans

A defined contribution plan is a post-employment benefit plan under
which the Company makes specified monthly contributions towards
Provident Fund. The Company''s contribution is recognised as an expense
in the Statement of Profit and Loss during the period in which the
employee renders the related service.

iii. Defined benefit plans

The Company pays gratuity to the employees whoever has completed
five years of service with the Company at the time of resignation. The
gratuity is paid @15 days salary for every completed year of service as
per the Payment of Gratuity Act 1972.

The liability in respect of gratuity and other post-employment benefits is
calculated using the Projected Unit Credit Method and spread over the
period during which the benefit is expected to be derived from
employees'' services.Re-measurement of defined benefit plans in respect
of post-employment are charged to the Other Comprehensive Income.

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Mar 31, 2024

3 Material accounting policies

a) Operating Cycle

All assets and liabilities have been classified as current or noncurrent as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1 - Presentation of Financial Statements based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents.

b) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

i. Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables that do contain a significant financing component are measured at transaction price. Regular way purchase and sale of financial assets are accounted for at trade date.

Subsequent measurement

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

• Amortised cost

• Fair value through other comprehensive income (FVTOCI)

• Fair value through profit or loss (FVTPL)Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets."

Financial assets at amortised cost :

"A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to

collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at FVTOCI:

"A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.Financial assets included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI)."

Financial assets at FVTPL:

"A financial asset which is not classified in any of the above categories are measured at FVTPL. Financial assets included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit & Loss."

Other equity investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in ''Other Comprehensive Income''. Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109 i. Financial liability

Initial recognition and measurement

Financial liabilities are initially recognised at fair value plus any transaction cost that are attributable to the acquisition of the financial liabilities except financial liabilities at fair value through profit or loss which are intially measured at fair value.

Subsequent measurement

"For purposes of subsequent measurement, financial liabilities are classified in following categories:

• Financial liabilities through profit or loss (FVTPL)

• Financial liabilities at amortised cost"

Financial liabilities through FVTPL

A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss.

Financial liabilities at amortised cost

"Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and any gain or loss on derecognition are recognised in profit or loss.

Interest bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximates fair value due to the short maturity of these instruments."

Derecognition

A financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires iii. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

c) Property, Plant and Equipment

i. Recognition and measurement

"Items of property, plant and equipment are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation and accumulated impairment losses, if any. The cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located. Borrowing costs directly attributable to the acquisition or construction of those qualifying property, plant and equipment, which necessarily take a substantial period of time to get ready for their intended use, are capitalised.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate components of property, plant and equipment.

Assets retired from active use and held for disposal are stated at the lower of their net book value and net realisable value and shown under ''Other current assets''.

Property, plant and equipment is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss.

Expenses incurred relating to project, net of income earned during the project development stage prior to its intended use, are considered as pre - operative expenses and disclosed under Capital Work - in - Progress.

ii) Subsequent expenditure

Subsequent expenditure is capitalized only when it is probable that the future economic benefits associated with the expenditure will flow to the Company. Ongoing repairs and maintenance are expensed as incurred. iii. Depreciation and amortisation

"Depreciation and amortisation for the year is recognised in the Statement of Profit and Loss.

Depreciation on property, plant & equipments are provided on straight line method over the useful lives of assets, at the rates and in the manner specified in Part C of Schedule II of the Act.

Freehold land is not depreciated. Leasehold land (includes development cost) is amortised on a straight line basis over the period of respective lease, except land acquired on perpetual lease.

Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted as appropriate."

d) Intangible Assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and any accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Estimated useful life of the Computer Software is 5 years.

e) Inventories

"Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes incurred in bringing them to their respective present location and condition. Cost of raw materials is determined on FIFO basis.

Value of stores and spares, packing materials, trading and other products are determined on weighted average basis."

f) Impairment

Impairment of non-financial assets

"The Company''s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. For impairment testing, assets that do not generate independent cash inflows are grouped together into cashgenerating units (CGUs). Each CGU represents the smallest Company of assets that generates cash inflows that are largely independent of the cash inflows of other assets or CGUs. If any such indication exists the recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the CGU to which the asset belongs.

An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset''s carrying amount exceeds its recoverable

amount. The recoverable amount is higher of an asset''s fair value less cost of disposal and value in use. Value in use is based on the estimated future cash flows, discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and risk specific to the assets.

The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount."

g) Employee Benefits

i. Short-term employee benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.

ii. Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which the Company makes specified monthly contributions towards Provident Fund. The Company''s contribution is recognised as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service.

iii. Defined benefit plans

The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation. The gratuity is paid @15 days salary for every completed year of service as per the Payment of Gratuity Act 1972.

The liability in respect of gratuity and other postemployment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees'' services.Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive Income."

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Mar 31, 2018

1. Significant accounting policies

a) Operating Cycle

All assets and liabilities have been classified as current or noncurrent as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1 - Presentation of Financial Statements based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents.

b) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

i. Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Trade receivables are initially measured at transaction price. Regular way purchase and sale of financial assets are accounted for at trade date.

Subsequent measurement

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

- Amortised cost

- Fair value through other comprehensive income (FVTOCI)

- Fair value through profit or loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

Financial assets at amortised cost

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The effective interest rate (EIR) amortisation is included in finance income in the profit or loss.

Financial assets at FVTOCI

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI).

Financial assets at FVTPL

A financial asset which is not classified in any of the above categories are measured at FVTPL.

Financial assets included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit & Loss.

Other equity investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in ‘Other Comprehensive Income’.

Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109.

ii. Financial liability

Initial recognition and measurement

Financial liabilities are initially recognised at fair value plus any transaction cost that are attributable to the acquisition of the financial liabilities except financial liabilities at fair value through profit or loss which are intially measured at fair value.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in following categories:

- Financial liabilities through profit or loss (FVTPL)

- Financial liabilities at amortised cost Financial liabilities through FVTPL

A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss.

Financial liabilities at amortised cost

Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and any gain or loss on derecognition are recognised in profit or loss.

Interest bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximates fair value due to the short maturity of these instruments.

Derecognition

A financial liability (or a part of a financial liability) is derecognized from the Company’s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

iii. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

c) Property, Plant and Equipment

i. Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation and accumulated impairment losses, if any. The cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located. Borrowing costs directly attributable to the acquisition or construction of those qualifying property, plant and equipment, which necessarily take a substantial period of time to get ready for their intended use, are capitalised.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate components of property, plant and equipment.

Assets retired from active use and held for disposal are stated at the lower of their net book value and net realisable value and shown under ‘Other current assets’.

A fixed asset is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss.

Expenses incurred relating to project, net of income earned during the project development stage prior to its intended use, are considered as pre - operative expenses and disclosed under Capital Work - in - Progress.

ii. Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as at 1st April, 2016, measured as per the previous GAAP, and use that carrying value as the deemed cost of such property, plant and equipment.

iii. Subsequent expenditure

Subsequent expenditure is capitalized only when it is probable that the future economic benefits associated with the expenditure will flow to the Company. Ongoing repairs and maintenance are expensed as incurred.

iv. Depreciation and amortisation

Depreciation and amortisation for the year is recognised in the Statement of Profit and Loss.

Depreciation on fixed assets are provided on straight line method over the useful lives of assets, at the rates and in the manner specified in Part C of Schedule II of the Act.

Freehold land is not depreciated. Leasehold land (includes development cost) is amortised on a straight line basis over the period of respective lease, except land acquired on perpetual lease.

Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted as appropriate.

d) Intangible Assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and any accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Estimated useful life of the Computer Software is 5 years.

e) Inventories

Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes incurred in bringing them to their respective present location and condition. Cost of raw materials is determined on FIFO basis.

Value of stores and spares, packing materials, trading and other products are determined on weighted average basis.

f) Impairment

i. Impairment of financial instruments: financial assets

Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financials assets in FVTPL category.

For financial assets other than trade receivables, as per Ind AS 109, the Company recognises 12 month expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk of the financial asset has not increased significantly since its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset increases significantly since its initial recognition. The Company’s trade receivables do not contain significant financing component and loss allowance on trade receivables is measured at an amount equal to life time expected losses i.e. expected cash shortfall.

The impairment losses and reversals are recognised in Statement of Profit and Loss.

ii. Impairment of non-financial assets

The Company’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. For impairment testing, assets that do not generate independent cash inflows are grouped together into cash-generating units (CGUs). Each CGU represents the smallest Company of assets that generates cash inflows that are largely independent of the cash inflows of other assets or CGUs. If any such indication exists the recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the CGU to which the asset belongs.

An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset’s carrying amount exceeds its recoverable amount. The recoverable amount is higher of an asset’s fair value less cost of disposal and value in use. Value in use is based on the estimated future cash flows, discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and risk specific to the assets.

The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

g) Employee Benefits

i. Short-term employee benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.

ii. Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which the Company makes specified monthly contributions towards Provident Fund. The Company’s contribution is recognised as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service.

iii. Defined benefit plans

The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation. The gratuity is paid @15 days salary for every completed year of service as per the Payment of Gratuity Act 1972.

The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees’ services.

Re-measurement of defined benefit plans in respect of postemployment are charged to the Other Comprehensive Income.

h) Provisions (other than for employee benefits)

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

i) Revenue Recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured, regardless of when the payment is being made. 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 from the sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer. No revenue is recognised if there are significant uncertainties regarding recovery of the amount due, associated costs or the possible return of goods.

j) Leases

Leases of property, plant and equipment that transfer to the Company substantially all the risks and rewards of ownership are classified as finance leases. The leased assets are measured initially at an amount equal to the lower of their fair value and the present value of the minimum lease payments. The minimum lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in the Statement of Profit and Loss.

Assets held under leases that do not transfer to the Company substantially all the risks and rewards of ownership (i.e. operating leases) are not recognised in the Company’s Balance Sheet. Payments made under operating leases are recognized in the Statement of Profit or Loss on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with general inflation.

k) Recognition of dividend income, interest income or expense

Dividend income is recognised in profit or loss on the date on which the Company’s right to receive payment is established.

Interest income or expense is recognised using the effective interest method.

l) Income tax

Income tax expense comprises of current and deferred tax. Current tax and deferred tax is recognized in the statement of profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in OCI.

i. Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.

ii. 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 and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

m) Borrowing costs

Borrowing costs are interest and other costs incurred in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.

Where there is an unrealised exchange loss which is treated as an adjustment to interest and subsequently there is a realised or unrealised gain in respect of the settlement or translation of the same borrowing, the gain to the extent of the loss previously recognised as an adjustment is recognised as an adjustment to interest.

n) Foreign currencies transactions

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in Statement of Profit and Loss.

o) Government Grant

Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions.

Government grants relating to income are deferred and recognised in the Statement of Profit and Loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income.

Government grants relating to the purchase of property, plant and equipment are included in noncurrent liabilities as deferred income and are credited to Statement of Profit and Loss on a straight-line basis over the expected lives of the related assets and presented within other income.

p) Earnings per Share

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

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

---

Mar 31, 2016

1.1 Basis of preparation of financial statements

These financial statements are prepared under historical cost convention on accrual basis as a going concern and in accordance with the Generally Accepted Accounting Principles (GAAP), Companies Act, 2013 and in compliance with Companies (Accounts) Rules, 2014 except those with significant uncertainty. Accounting policies not stated explicitly otherwise are consistent with Generally Accepted Accounting Principles.

1.2 Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statement. Actual results could differ from those estimated. Such differences are recognized in the period in which they are known or materialized.

1.3 Revenue recognition

a) Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the buyer which generally coincides with dispatch of goods from factory.

b) All other Income are accounted on accrual basis except otherwise stated.

c) Claims and refunds due from Government Authorities are recognized in the accounts on receipt basis due to significant uncertainty regarding their realizations.

1.4 Fixed assets-tangible assets and capital work-in-progress

a) Leasehold lands are stated at cost including cost incurred for its development.

b) Fixed Assets except leasehold land are stated at cost of acquisition inclusive of freight incurred, non-refundable duties or taxes and incidental expenses less accumulated depreciation.

c) Capital work-in-progress comprises of the cost of fixed assets, that are not yet ready for their intended use at the reporting date.

1.5 Depreciation

Depreciation on fixed assets except leasehold lands has been provided on straight line method at the rates and in the manner specified in Schedule II of the Companies Act, 2013. No depreciation has been provided on Leasehold lands.

1.6 Impairment of assets

An asset is treated as impaired when the carrying cost of the same exceeds its recoverable amount. Such impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

1.7 Inventories

a) Raw Materials are valued at lower of cost determined on FIFO basis or net realizable value. Cost comprises all cost of purchases, including duties and taxes (other than those subsequently recoverable from the revenue authorities), freight inwards and other expenditure directly attributable to the purchases.

b) Work-in-progress are valued at cost computed on the basis of cost of raw material, appropriated share of employment cost and related factory overheads.

c) Finished goods are valued at lower of, cost determined on the basis of absorption costing method or net realizable value inclusive of Excise duty.

d) Packing & printing materials, stores & spares are valued at lower of cost determined on weighted average basis or net realizable value.

e) Wastage is valued at estimated realizable value.

1.8 Sales

Sales represent invoice value of finished goods sold inclusive of Excise duty, VAT/CST and cost of transportation, if any, net of sales return.

1.9 Excise duty

Excise duty is accounted on the basis of both, payments made in respect of goods cleared and also provision made for goods lying in stock at factory.

1.10 Value Added Tax and Central Sales Tax

VAT, CST and other local taxes on sales are charged to the Statement of Profit and Loss.

1.11 Foreign currency transaction

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the yearend are reported at year end rates. Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

1.12 Claims/Refunds

Claims or refunds are accounted for on the basis of settlement.

1.13 Export benefits

Excise duty on goods cleared for exports from factory are claimed as refund.

1.14 Employees benefits

i) Short term employee benefits

Short term employee benefits including bonus are recognized as an expense in the Statement of Profit and Loss of the year in which the related services are rendered.

ii) Post-employment benefits

a) Defined contribution plan: Employee benefits in the form of Provident fund etc are considered as defined contribution plan and the same are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due.

b) Defined benefit plan: Employee benefits in the form of Gratuity, Leave encashment are considered as defined benefit plan and are provided for on the basis of an independent actuarial valuation, using projected unit credit method, as at the Balance Sheet date as per requirements of Accounting Standard-15 (Revised 2005) on “Employee Benefits” notified by Central Government in exercise of powers conferred u/s 133 of Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules 2014. Actuarial gains / losses, if any, are immediately recognized in the Statement of Profit and Loss.

1.15 Taxes on income

a) Current tax: Current tax is determined as the amount of tax payable in respect of taxable income for the year determined in accordance with the provisions of the Income Tax Act, 1961. Minimum Alternative Tax credit available if any under section 115JBof the Income Tax Act, 1961 is accounted in the year in which the credit is claimed.

b) Deferred tax: Deferred tax is recognized subject to consideration of prudence on the basis of timing difference being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. Deferred Tax Asset is recognized and carried forward only to the extent that there is reasonable certainty that the asset will be realized in future.

1.16 Provision/Contingencies

A provision is recognized for a present obligation as a result of past events if it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation as at the Balance Sheet date. In case actual outcome differs from that estimated, the difference is accounted for at the time the result are known / materialized.

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and are disclosed by way of notes to the accounts.

1.17 Prior period adjustments

Adjustment of identifiable items of income and expenditure pertaining to prior period are accounted for as prior period adjustments.

1.18 Share issue expenses

Such expenditures incurred are capitalized and written off on straight line basis over a period of five years.

---

Mar 31, 2015

1.1 Basis of preparation of financial statements

These financial statements are prepared under historical cost convention on accrual basis as a going concern and in accordance with the Generally Accepted Accounting Principles (GAAP), Companies Act, 2013 and in compliance with Companies (Accounts) Rules, 2014 except those with significant uncertainty. Accounting policies not stated explicitly otherwise are consistent with Generally Accepted Accounting Principles.

1.2 Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statement. Actual results could differ from those estimated. Such differences are recognized in the period in which they are known or materialized.

1.3 Revenue recognition

a) Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the buyer which generally coincides with dispatch of goods from factory.

b) All other Income are accounted on accrual basis except otherwise stated.

c) Claims and refunds due from Government Authorities are recognized in the accounts on receipt basis due to significant uncertainty regarding their realizations.

1.4 Fixed assets-tangible assets and capital work-in-progress

a) Leasehold lands are stated at cost including cost incurred for its development.

b) Fixed Assets except leasehold land are stated at cost of acquisition inclusive of freight incurred, non-refundable duties or taxes and incidental expenses less accumulated depreciation.

c) Capital work-in-progress comprises of the cost of fixed assets, that are not yet ready for their intended use at the reporting date.

1.5 Depreciation

Depreciation on fixed assets except leasehold lands has been provided on straight line method at the rates and in the manner specified in Schedule II of the Companies Act, 2013. No depreciation has been provided on Leasehold lands.

1.6 Impairment of assets

An asset is treated as impaired when the carrying cost of the same exceeds its recoverable amount. Such impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

1.7 Inventories

a) Raw Materials are valued at lower of cost determined on FIFO basis or net realizable value. Cost comprises all cost of purchases, including duties and taxes (other than those subsequently recoverable from the revenue authorities), freight inwards and other expenditure directly attributable to the purchases.

b) Work-in-progress are valued at cost computed on the basis of cost of raw material, appropriated share of employment cost and related factory overheads.

c) Finished goods are valued at lower of, cost determined on the basis of absorption costing method or net realizable value inclusive of Excise duty.

d) Packing & printing materials, stores & spares are valued at lower of cost determined on weighted average basis or net realizable value.

e) Wastage is valued at estimated realizable value.

1.8 Sales

Sales represent invoice value of finished goods sold inclusive of Excise duty, VAT/CST and cost of transportation, if any, net of sales return.

1.9 Excise duty

Excise duty is accounted on the basis of both, payments made in respect of goods cleared and also provision made for goods lying in stock at factory.

1.10 Value Added Tax and Central Sales Tax

VAT, CST and other local taxes on sales are charged to the Statement of Profit and Loss.

1.11 Foreign currency transaction

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are reported at year end rates. Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

1.12 Claims / Refunds

Claims or refunds are accounted for on the basis of settlement.

1.13 Export benefits

Excise duty on goods cleared for exports from factory are claimed as refund.

1.14 Employees benefits

i) Short term employee benefits

Short term employee benefits including bonus are recognized as an expense in the Statement of Profit and Loss of the year in which the related services are rendered.

ii) Post-employment benefits

a) Defined contribution plan: Employee benefits in the form of Provident fund etc are considered as defined contribution plan and the same are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due.

b) Defined benefit plan: Employee benefits in the form of Gratuity, Leave encashment are considered as defined benefit plan and are provided for on the basis of an independent actuarial valuation, using projected unit credit method, as at the Balance Sheet date as per requirements of Accounting Standard-15 (Revised 2005) on "Employee Benefits" notified by Central Government in exercise of powers conferred u/s 133 of Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules 2014. Actuarial gains / losses, if any, are immediately recognized in the Statement of Profit and Loss.

1.15 Taxes on income

a) Current tax: Current tax is determined as the amount of tax payable in respect of taxable income for the year determined in accordance with the provisions of the Income Tax Act, 1961. Minimum Alternative Tax credit available if any under section 115JB of the Income Tax Act, 1961 is accounted in the year in which the credit is claimed.

b) Deferred tax: Deferred tax is recognized subject to consideration of prudence on the basis of timing difference being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. Deferred Tax Asset is recognized and carried forward only to the extent that there is reasonable certainty that the asset will be realized in future.

1.16 Provision / Contingencies

A provision is recognized for a present obligation as a result of past events if it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation as at the Balance Sheet date. In case actual outcome differs from that estimated, the difference is accounted for at the time the result are known / materialized.

Liabilities which are material and whose future outcome can not be ascertained with reasonable certainty are treated as contingent and are disclosed by way of notes to the accounts.

1.17 Prior period adjustments

Adjustment of identifiable items of income and expenditure pertaining to prior period are accounted for as prior period adjustments.

1.18 Share issue expenses

Such expenditures incurred are capitalized and written off on straight line basis over a period of five years.

---

Mar 31, 2014

1 Basis of preparation of financial statements

These financial statements are prepared under historical cost convention on accrual basis as a going concern and in accordance with the Generally Accepted Accounting Principles (GAAP), Companies Act, 1956 and in compliance with Companies (Accounting Standard) Rules, 2006 as notified u/s 211(3C) of Companies Act, 1956 except those with significant uncertainty. Accounting policies not stated explicitly otherwise are consistent with Generally Accepted

2 Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statement. Actual results could differ from those estimated. Such differences are recognized in the period in which they are known or

3. Revenue recognition

a) Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the buyer which generally coincides with dispatch of goods from factory.

b) All other Income are accounted on accrual basis except otherwise stated.

c) Claims and refunds due from Government Authorities are recognized in the accounts on receipt basis due to significant uncertainty regarding their realizations.

4. Fixed assets-tangible assets and capital work-in-progress

a) Leasehold lands are stated at cost including cost incurred for its development.

b) Fixed Assets except leasehold land are stated at cost of acquisition inclusive of freight incurred, non-refundable duties or taxes and incidental expenses less accumulated

c) Capital work-in-progress comprises of the cost of fixed assets, that are not yet ready for

5. Depreciation

Depreciation on fixed assets except leasehold lands has been provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. No

6. Impairment of assets

An asset is treated as impaired when the carrying cost of the same exceeds its recoverable amount. Such impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

7. Inventories

a) Raw Materials are valued at lower of cost determined on FIFO basis or net realizable value. Cost comprises all cost of purchases, including duties and taxes (other than those subsequently recoverable from the revenue authorities), freight inwards and other

b) Work-in-progress are valued at cost computed on the basis of cost of raw material,

c) Finished goods are valued at lower of, cost determined on the basis of absorption costing

d) Packing & printing materials, stores & spares are valued at lower of cost determined on weighted average basis or net realizable value.

e) Wastage is valued at estimated realizable value.

8. Sales

Sales represent invoice value of finished goods sold inclusive of Excise duty, VAT/CST and cost

9. Excise duty

Excise duty is accounted on the basis of both, payments made in respect of goods cleared and also provision made for goods lying in stock at factory.

10. Value Added Tax and Central Sales Tax

VAT and CST paid are charged to the Statement of Profit and Loss.

11. Foreign currency transaction

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are reported at year end rates. Any income or expenses on account of exchange difference either on settlement or on translation

12. Claims/Refunds

Claims or refunds are accounted for on the basis of settlement.

13. Export benefits

Export duty on goods cleared Excise duty on goods cleared for exports from factory are claimed as refund.

14. Employee benefits

i) Short term employee benefits

Short term employee benefits including bonus are recognized as an expense in the Statement of Profit and Loss of the year in which the related services are rendered.

ii) Post-employment benefits

a) Defined contribution plan: Employee benefits in the form of Employees State Insurance Corporation, Provident fund etc are considered as defined contribution plan and the same are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due.

b) Defined benefit plan: Employee benefits in the form of Gratuity, Leave encashment are considered as defined benefit plan and are provided for on the basis of an independent actuarial valuation, using projected unit credit method, as at the Balance Sheet date as per requirements of Accounting Standard-15 (Revised 2005) on "Employee Benefits" notified by Central Government in exercise of powers conferred u/s 211(3C) of Companies Act, 1956. Actuarial gains / losses, if any, are immediately

15. Taxes on Income

a) Current Tax: Current tax is determined as the amount of tax payable in respect of taxable income for the year determined in accordance with the provisions of the Income Tax Act, 1961. Minimum Alternative Tax credit available if any under section 115JB of the Income Tax Act, 1961 is accounted in the year in which the credit is claimed.

b) Deferred tax: Deferred tax is recognized subject to consideration of prudence on the basis of timing difference being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. Deferred Tax Asset is recognized and carried forward only to the extent that there is reasonable certainty that the asset will be realized in future.

16. Provision / Contingencies

A provision is recognized for a present obligation as a result of past events if it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation as at the Balance Sheet date. In case actual outcome differs from that estimated, the difference is accounted for at the time the result are known / materialized.

Liabilities which are material and whose future outcome can not be ascertained with reasonable certainty are treated as contingent and are disclosed by way of notes to the accounts.

17. Prior period adjustments

Adjustment of identifiable items of income and expenditure pertaining to prior period are accounted for as prior period adjustments.

18. Share issue expenses

Such expenditures incurred are capitalized and written off on straight line basis over a period of five years.

---

Mar 31, 2013

1.1 Basis of preparation of financial statements

These financial statements are prepared under historical cost convention on accrual basis as a going concern and in accordance with the Generally Accepted Accounting Principles (GAAP), Companies Act, 1956 and in compliance with Companies (Accounting Standard) Rules, 2006 as notified u/s 211(3C) of Companies Act, 1956 except those with significant uncertainty. Accounting policies not stated explicitly otherwise are consistent with Generally Accepted Accounting Principles.

1.2 Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statement. Actual results could differ from those estimated. Such differences are recognized in the period in which they are known or materialized.

1.3 Revenue recognition

a) Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the buyer which generally coincides with dispatch of goods from factory.

b) All other Income are accounted on accrual basis except otherwise stated.

c) Claims and refunds due from Government Authorities are recognized in the accounts on receipt basis due to significant uncertainty regarding their realizations.

1.4 Fixed assets-tangible assets and capital work-in-progress

a) Leasehold lands are stated at cost including cost incurred for its development.

b) Fixed Assets except leasehold land are stated at cost of acquisition inclusive of freight incurred, non-refundable duties or taxes and incidental expenses less accumulated depreciation.

c) Capital work-in-progress comprises of the cost of fixed assets, that are not yet ready for their intended use at the reporting date.

1.5 Depreciation

Depreciation on fixed assets except leasehold lands has been provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. No depreciation has been provided on Leasehold lands.

1.6 Impairment of assets

An asset is treated as impaired when the carrying cost of the same exceeds its recoverable amount. Such impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

1.7 Inventories

a) Raw Materials are valued at lower of cost determined on FIFO basis or net realizable value. Cost comprises all cost of purchases, including duties and taxes (other than those subsequently recoverable from the revenue authorities), freight inwards and other expenditure directly attributable to the purchases.

b) Work-in-progress are valued at cost computed on the basis of cost of raw material, appropriated share of employment cost and related factory overheads.

c) Finished goods are valued at lower of, cost determined on the basis of absorption costing method or net realizable value inclusive of Excise duty.

d) Packing & printing materials, stores & spares are valued at lower of cost determined on weighted average basis or net realizable value.

e) Wastage is valued at estimated realizable value.

1.8 Sales

Sales represent invoice value of finished goods sold inclusive of Excise duty, VAT/CST and cost of transportation, if any, net of sales return.

1.9 Excise duty

Excise duty is accounted on the basis of both, payments made in respect of goods cleared and also provision made for goods lying in stock at factory.

1.10 Value Added Tax and Central Sales Tax

VAT and CST paid are charged to the Statement of Profit and Loss.

1.11 Foreign currency transaction

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are reported at year end rates. Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

1.12 Claims / Refunds

Claims or refunds are accounted for on the basis of settlement.

1.13 Export benefits

Excise duty on goods cleared for exports from factory are claimed as refund.

1.14 Employees benefits

i) Short term employee benefits

Short term employee benefits including bonus are recognized as an expense in the Statement of Profit and Loss of the year in which the related services are rendered. ii) Post-employment benefits

a) Defined contribution plan: Employee benefits in the form of Employees State Insurance Corporation, Provident fund etc are considered as defined contribution plan and the same are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due.

b) Defined benefit plan: Employee benefits in the form of Gratuity, Leave encashment are considered as defined benefit plan and are provided for on the basis of an independent actuarial valuation, using projected unit credit method, as at the Balance Sheet date as per requirements of Accounting Standard-15 (Revised 2005) on "Employee Benefits" notified by Central Government in exercise of powers conferred u/s 211(3C) of Companies Act, 1956. Actuarial gains / losses, if any, are immediately recognized in the Statement of Profit and Loss.

1.15 Taxes on income

a) Current tax: Current tax is determined as the amount of tax payable in respect of taxable income for the year determined in accordance with the provisions of the Income Tax Act, 1961. Minimum Alternative Tax credit available if any under section 115JB of the Income Tax Act, 1961 is accounted in the year in which the credit is claimed.

b) Deferred tax: Deferred tax is recognized subject to consideration of prudence on the basis of timing difference being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. Deferred Tax Asset is recognized and carried forward only to the extent that there is reasonable certainty that the asset will be realized in future.

1.16 Provision / Contingencies

A provision is recognized for a present obligation as a result of past events if it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation as at the Balance Sheet date. In case actual outcome differs from that estimated, the difference is accounted for at the time the result are known / materialized.

Liabilities which are material and whose future outcome can not be ascertained with reasonable certainty are treated as contingent and are disclosed by way of notes to the accounts.

1.17 Prior period adjustments

Adjustment of identifiable items of income and expenditure pertaining to prior period are accounted for as prior period adjustments.

1.18 Share issue expenses

Such expenditures incurred are capitalized and written off on straight line basis over a period of five years.

---

Mar 31, 2012

1.1 Basis of preparation of financial statements

These financial statements are prepared under historical cost convention on accrual basis as a going concern and in accordance with the Generally Accepted Accounting Principles (GAAP), Companies Act, 1956 and in compliance with Companies (Accounting Standard) Rules, 2006 as notified u/s 211(3C) of Companies Act, 1956 except those with significant uncertainty. Accounting policies not stated explicitly otherwise are consistent with Generally Accepted Accounting Principles.

1.2 Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statement. Actual results could differ from those estimated. Such differences are recognised in the period in which they are known or materialised.

1.3 Revenue recognition

a) Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer which generally coincides with dispatch of goods from factory.

b) All other Income are accounted on accrual basis except otherwise stated.

c) Claims and refunds due from Government Authorities are recognised in the accounts on receipt basis due to significant uncertainty regarding their realisations.

1.4 Fixed assets-tangible assets and capital work-in-progress

a) Leasehold lands are stated at cost including cost incurred for its development.

b) Fixed Assets except leasehold land are stated at cost of acquisition inclusive of freight incurred, non-refundable duties or taxes and incidental expenses less accumulated depreciation.

c) Capital work-in-progress comprises of the cost of fixed assets, that are not yet ready for their intended use at the reporting date.

1.5 Depreciation

Depreciation on fixed assets except leasehold lands has been provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. No depreciation has been provided on Leasehold lands.

1.6 Impairment of assets

An asset is treated as impaired when the carrying cost of the same exceeds its recoverable amount. Such impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

1.7 Inventories

a) Raw Materials are valued at lower of cost determined on FIFO basis or net realisable value. Cost comprises all cost of purchases, including duties and taxes (other than those subsequently recoverable from the revenue authorities), freight inwards and other expenditure directly attributable to the purchases.

b) Work-in-progress are valued at cost computed on the basis of cost of raw material, appropriated share of employment cost and related factory overheads.

c) Finished goods are valued at lower of, cost determined on the basis of absorption costing method or net realisable value inclusive of Excise duty.

d) Packing & printing materials, stores & spares are valued at lower of cost determined on weighted average basis or net realisable value.

e) Wastage is valued at estimated realisable value.

1.8 Sales

Sales represent invoice value of finished goods sold inclusive of Excise duty, VAT/CST and cost of transportation, if any, net of sales return.

1.9 Excise duty

Excise duty is accounted on the basis of both, payments made in respect of goods cleared and also provision made for goods lying in stock at factory.

1.10 Value Added Tax and Central Sales Tax

VAT and CST paid are charged to the Statement of Profit and Loss.

1.11 Foreign currency transaction

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are reported at year end rates. Any income or expenses on account of exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss.

1.12 Claims / Refunds

Claims or refunds are accounted for on the basis of settlement.

1.13 Export benefits

Excise duty on goods cleared for exports from factory are claimed as refund.

1.14 Employees benefits

i) Short term employee benefits

Short term employee benefits including bonus are recognised as an expense in the Statement of Profit and Loss of the year in which the related services are rendered.

ii) Post-employment benefits

a) Defined contribution plan: Employee benefits in the form of Employees State Insurance Corporation, Provident Fund etc are considered as defined contribution plan and the same are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due.

b) Defined benefit plan: Employee benefits in the form of Gratuity, Leave encashment are considered as defined benefit plan and are provided for on the basis of an independent actuarial valuation, using projected unit credit method, as at the Balance Sheet date as per requirements of Accounting Standard-15 (Revised 2005) on "Employee Benefits" notified by Central Government in exercise of powers conferred u/s 211(3C) of Companies Act, 1956. Actuarial gains/ losses, if any, are immediately recognised in the Statement of Profit and Loss.

1.15 Taxes on income

a) Current tax: Current tax is determined as the amount of tax payable in respect of taxable income for the year determined in accordance with the provisions of the Income Tax Act, 1961. Minimum Alternative Tax credit available if any under section 115JB of the Income Tax Act, 1961 is accounted in the year in which the credit is claimed.

b) Deferred tax: Deferred tax is recognised subject to consideration of prudence on the basis of timing difference being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. Deferred Tax Asset is recognised and carried forward only to the extent that there is reasonable certainty that the asset will be realised in future.

1.16 Provision / Contingencies

A provision is recognised for a present obligation as a result of past events if it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on best estimate of the amount required to settle the obligation as at the Balance Sheet date. In case actual outcome differs from that estimated, the difference is accounted for at the time the result are known / materialised.

Liabilities which are material and whose future outcome can not be ascertained with reasonable certainty are treated as contingent and are disclosed by way of notes to the accounts.

1.17 Prior period adjustments

Adjustment of identifiable items of income and expenditure pertaining to prior period are accounted for as prior period adjustments.

1.18 Share issue expenses

Such expenditures incurred are capitalised and written off on straight line basis over a period of five years.

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Mar 31, 2011

A.FINANCIAL STATEMENTS

The financial statements are prepared as a going concern under historical cost conventional accrual basis except those with significant uncertainty and in accordance with the Companies Act,9956.Accounting policies not stated explicitly otherwise are consistent with Generally Accepted Accounting Principles.

B USE OF ESTIMATSS

The preparation of financial statements in conformity with Indian GAAP requires management of make estimates and assumptions that affect the balances of assets and inabilities and disclosure relating to contingent liabilities as at the reporting date of the financial statement and amounts of income an expensed during the year of accounts. Examples of such estimates include contract costs expected to bi incurred complete construction contracts; provision for doubtful debts, income taxes and future obligation undue employee retirement benefit plans. Management periodically assesses whether their is an indication Thaana asset may be impaired and makes provision in the accounts for any impairment losses estimated. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated Actual results could differ from those estimates. The effects of adjustment arising from revisions meat to the estimate are included in the Profit and Loss statement of the year in which revisions are made.

C REVENUE RECOGNITION

a) Revenue from Sale of Goods is recognized on transfer of all significant risks and rewards of ownership to the buyer which generally coincides with dispatch of goods from factory

b) All other Income are accounted for an accrual basis except otherwise stated.

D. FIXED ASSETS

a) Leasehold Land is stated at cost.

b) Fixed Assets except leasehold land are stated at cost of acquisition inclusive of freight incurred duties and taxes (net of CENVAT/ VAT) and incidental expenses less accumulated depreciation.

E. DEPRECIATION

Depreciation on fixed assets except leasehold land has been provided on straight line method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956 No depreciation has been navies on Lease Hold Land. P provided on

F.INVESTMENTS

Investments are stated at cost.

G. INVENTORIES

a) Raw Materials are valued at lower of cost determined on FIFO basis or net realize value. cost comprises all cost of purchase including duties and taxes (other than those subsequently recoverable from the from the taxing authorities), freight inwards and other expenditure directly attributable to the acquisition.

b) Work Progress ii valued at cost computed on the basis of cost of raw mat and a share of employment cost and related factory overheads appropriated

c) Finished Goods valued at cost determined on abortion cost method or net realizable value whichever is lower.

d) Packing & Printing Materials and Stores & Spares are valued at lower of cost determined on weighted average basis or net realizable value.

e) Wastage as valued at estimated realizable value

H. EXICSE DUTY

Excise duty has been accounted on the basis of payments made in respect of goods cleared and also provision on excise duty on finished goods lying as stock in factory has been considered for valuation.

FOREIGN CURRENCY TRANSACTION

foreign currency transaction are recorded in the reporting currency applying to foreign currency amount toe exchange rate between the reporting currency and the foreign currency tt thud data of transaction Foreign currency monetary items are reported using the closing rates. Exchanged difference arising nn reporting company s monetary items at rates different from those at which they weir initially recorded during the year are recognized as income or as expense in the year in which they arise. '

J.SALES

Sales represent invoice value of finish goods sold inclusive of Excise Duya and VAn net of sales return.

K. SUBSIDIES

Interest and Employment Generation Subsidy will be accounted for on receipt basis.

L. CLAIMS/REFUNDS

Excise, Insurance and other claims I refunds are accounted for on acceptance / actuary receipt P Payment bass.

M, EXPORT BENEFITS

Export entitlements in the form of Duty Drawback and/or Duty Entitlement Pass Book (DEPB scheme are recognized in the profit and loss account when the right to receive credit as pet the terms of the scSLffc established in respect of exports made and when there is no significant uncertainty rereading the ultimate collection of the relevant export proceeds.

N. EMPLOYEES BENEFITS

a) Defined Contribution Plan: Employee benefits in the form of ESIC and Provident Fund are considered as defined contribution plan and the contributions are charged to the Profit and loss account of the year when the contributions to the respective funds are due

b) Defined Benefit Plan: Employee benefits in the form of Gratuity Leave Encashment considered a defined benefit plan and are being accounted for on an accrual basis

O.TAXES ON INCOME.

a) Current Tax: Current tax is determined as the amount of tax payable income for the year determined in accordance with the provisions of the income tax act 1961. Minimum Alternative Tax credit available if any under section 115JB of the income tax act,7961 is accounted in the year in which the benefits are claimed

b) Deferred Tax: Deferred tax misrecognized subject to consideration of Prudence on the basis of timing differences being the differences between taxable income and accounting income that originate in one period and dupable our resale in one or more subsequent period using the tax rate and laws that have been enacted our substantially enacted as on the balance sheet date. The Different tax Asset is recognized and deride forward only to the extent that there is reasonable certainty that the asset will be realized ii future. reasonable certainty that the asset will

P. PRIOR PERIOD ADJUSTMENTS

Adjustment of identifiable items of Income & Expenditure pertaining to the rigor period is

Q. CONTINGENCIES

Liabilities, which are material and whose future outcome can not be ascertained with reasonable certainty are treated as contingent and are disclosed by way of noted to the accounts.

R. INTANGIBLE ASSETS

The company has not changed its accounting for recognition of intangible assets.