Accounting Policies of Sunil Agro Foods Ltd. Company

Mar 31, 2025

2. MATERIAL ACCOUNTING POLICIES

2.1 (i) BASIS FOR PREPARATION OF FINANCIAL STATEMENT:

The Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as
prescribed under Section 133 of the Companies Act 2013 (“the Act”), as notified under the Companies
(Indian Accounting Standard) Rules, 2015 and other relevant provision of the Act, to the extent applicable
and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant
Schedule III), as applicable to the Standalone Financial Statement.

The financial statements have been prepared under historical cost convention and on an accrual basis,
except for the following items which have been measured as required by relevant Ind AS:

a) Financial Instruments classified as fair value through other comprehensive income.

b) The defined benefit (loss)/profit is recognized as at the present value of defined benefit obligation less
fair value of plan assets through other comprehensive income.

Accounting policies have been consistently applied except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting standard requires a change in the accounting policy
hitherto in use. The Company’s management evaluates all recently issued or revised accounting standards
on an on-going basis.

For the year ended 31st March, 2025, MCA has not notified any new standards or amendments to the
existing standards applicable to the Company.

Where changes are made in presentation, the comparative figures of the previous years are regrouped and
re-arranged accordingly.

(ii) USE OF ESTIMATES AND JUDGEMENT

The presentation of financial statement in conformity with Ind AS requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and accompanying notes.
Although these estimates are based on management best knowledge of current events and actions the
company may undertake in future, actual results ultimately may differ from the estimates.

2.2 INVENTORY VALUATION:

• Raw Materials, Finished Products, Packing Materials, Stores and Spares are stated at lower of cost or net
realizable value.

• Finished goods and process stock include all cost of purchases, cost of conversion and other related costs
incurred in bringing the inventories to their present location and condition.

• Finished goods are valued at cost or net realizable value whichever is lower.

2.3 CASH FLOW STATEMENT:

Cash flows are reported using the indirect method, whereby net profit (loss) before tax is adjusted for the
effective transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or
payments.

The cash flow from regular revenue generating, investing and financing activities of the group are segregated.

2.4 Equity

a) Ordinary Shares

Ordinary shares are classified as Equity Share capital. Incremental costs directly attributable to the
issuance of new shares and buyback are recognized as a deduction from equity, net of any tax effects.

b) Securities Premium

The amount received in excess of the par value of equity shares has been classified as securities
premium.

c) Retained Earnings

Retained earnings represent the amount of accumulated earnings of the company.

2.5 REVENUE RECOGNITION:

• Sales are recognized when the significant risk attached to the goods is passed on to the seller and
are recorded net of trade discounts, rebates but excluding GST wherever tax applicable.

• The company recognizes revenue significant terms of the arrangement are enforceable, services
have been delivered and the collectability is reasonably assured. The method for recognizing
revenues and cost depends on the nature of the services rendered.

• Dividend income is recognized when the right to receive the dividend is established.

• Interest income is recognized on an accrual basis.

• Rental income on leased property is recognized on accrual basis, based on the terms and conditions
agreed with the lessee.

2.6 PROPERTY, PLANT AND EQUIPMENT:

• Fixed Assets are stated at cost of acquisition and subsequent improvements thereto including non¬
refundable taxes, duties, freight and other incidental expenses related to acquisition and installation.

• Interest on term loan taken for acquisition of assets is capitalized up to the date of asset being ready
for use.

• Capital work in progress comprises of the cost of Fixed Assets that are not put to use as at the
Balance Sheet date.

• Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the company and the cost of the item can be measured reliably. The carrying amount of any
component as a separate asset is derecognized when replaced. All other repairs and maintenance

• are charged to profit and loss during the reporting period in which they are incurred.

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

• Depreciation on Property, Plant & Equipment is provided on straight-line basis on the useful life of the
asset as mentioned in Schedule II to the companies Act, 2013. Free hold land and Investment
Property is not depreciated. The estimated useful life of assets is reviewed annually.

• Depreciation in respect of additions to assets has been charged on pro rata basis with reference to
the period when the assets are ready for use. The Provision for Depreciation for the multiple shifts has
been made in respect of eligible assets on the basis of operation of respective units.

• Useful lives of the Property, Plant and Equipment as notified in Schedule II to the Companies Act,
2013 are as follows

2.7 IMPAIRMENT OF ASSETS:

At each balance sheet date, the Company reviews the carrying amount of property, plant and equipment to
determine whether there is any indication of impairment loss. If any such indication exists, the recoverable
amount of the assets is estimated in order to determine the extent of impairment loss. The recoverable
amount is higher of the net selling price and the value in use, determined by discounting the estimated
future cash flows expected from the continuing use of the asset to their present value.

2.8 INVESTMENT PROPERTY:

Investment Property are stated at original cost less accumulated depreciation and impairment losses
except freehold land which is carried at cost. Cost includes cost of acquisition, construction and other
incidental expenses related to the acquisition, trial run expenses (net of revenue) and pre-operative
expenses including attributable borrowing costs incurred during pre-operational period.

However Company having Investment Property stated at cost .No depreciation is charges as company
expects the fair market value of immovable property is much higher than the book value.

2.9 FOREIGN CURRENCY TRANSACTION:

• Initial recognition - Foreign currency transactions are recorded in the reporting currency, by applying
to the foreign currency amount the exchange rate between the reporting currency and the foreign
currency approximately at the date of the transaction.

• Conversion - Foreign currency monetary items are reported using the closing rate. Non-monetary
items, which are carried in terms of historical cost denominated in a foreign currency, are reported
using the exchange rate at the date of transaction.

• Exchange Differences - Exchange differences arising on the settlement or conversion of monetary
items are recognized as income or as expenses in the period in which they arise.

2.10 INVESTMENTS:

The company carries certain equity instruments which are not held for trading. The company has elected
the FVTOCI irrevocable option for these instruments. Movements in fair value of these investments are
recognized in other comprehensive income and the gain or loss is not reclassified to statement of profit or
loss. Dividends from these investments are recognized in statement of profit and loss when the company’s
right to receive dividends is established.

2.11 EMPLOYEE BENEFITS:

2.11.1 Gratuity:

The company has taken Group Gratuity Scheme for its eligible employees from Life Insurance Corporation
of India, for the gratuity liability. The same has been provided for on the basis of third party actuarial
valuation, using the projected unit credit method, as at the date of the Balance Sheet. Every Employee who
has completed five years or more of service is entitled to Gratuity on terms not less favorable than the
provisions of The Payment of Gratuity Act, 1972.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial
assumptions of the defined benefit obligation are recognized in the period in which they occur, directly in
other comprehensive income. They are included in retained earnings in the statement of changes in equity
and in the balance sheet.

2.11.2 Leave Encashment:

Leave Encashment Liability of eligible employees is accounted as and when incurred.

2.11.3 Provident Fund:

Company’s contribution to provident fund is charged to Profit & Loss Account and the same is remitted to
provident fund Commissioner along with the employee contribution.

2.12 BORROWING COST:

Borrowing cost that is specifically attributable to the acquisition, construction or production of qualifying
asset is capitalized as part of the cost of such asset. A qualifying asset is an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale. Other borrowing costs are recognized as
an expense in the period in which they are incurred.

2.13 SEGMENT REPORTING:

The company is engaged in the business of manufacturing and trading of wheat and wheat products and
therefore has only one reportable segment in accordance with IND AS-108 “Operating Segments”.

2.14 INCOME TAX:

• Tax expenses comprises of current and deferred tax.

Current Income tax is computed using the tax effect accounting method, where taxes are accrued in
the same period in which the related revenue and expenses arise. A provision is made for income tax
annually, based on the tax liability computed, after considering tax allowances and exemptions.
Provisions are recorded when it is estimated that a liability due to disallowances or other matters is
probable.

Deferred income taxes reflect the impact of current year timing differences between the taxable
income and accounting income for the year and reversal of timing differences of earlier years, based
on the tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred
tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will
be available, against which such deferred tax assets can be realized. If the company has carry
forward of unabsorbed depreciation and tax losses, all deferred tax assets are recognized only if there
is virtual certainty supported by convincing evidence that they can be realized against future taxable
profits. Unrecognized deferred tax assets of earlier years are reassessed and recognized to the
extent that it has become reasonably certain or virtually certain, as the case may be that future
taxable income will be available against which such deferred tax asset can be realized.

Deferred tax is recognized in the statement of profit and loss, except to the extent that it relates to
items recognized in other comprehensive income. As such, deferred tax is also recognized in other
comprehensive income.

Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the Deferred Tax Assets and Deferred Tax
Liabilities relate to taxes on income levied by same governing taxation laws.

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Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 (i) BASIS FOR PREPARATION OF FINANCIAL STATEMENT:

The Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act 2013 (“the Act”), as notified under the Companies (Indian Accounting Standard) Rules, 2015 and other relevant provision of the Act, to the extent applicable and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the Standalone Financial Statement.

The financial statements have been prepared under historical cost convention and on an accrual basis, except for the following items which have been measured as required by relevant Ind AS:

a) Financial Instruments classified as fair value through other comprehensive income.

b) The defined benefit (loss)/profit is recognized as at the present value of defined benefit obligation less fair value of plan assets through other comprehensive income.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The Company''s management evaluates all recently issued or revised accounting standards on an on-going basis.

For the year ended 31st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Where changes are made in presentation, the comparative figures of the previous years are regrouped and re-arranged accordingly.

(ii) USE OF ESTIMATES AND JUDGEMENT

The presentation of financial statement in conformity with Ind AS requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management best knowledge of current events and actions the company may undertake in future, actual results ultimately may differ from the estimates.

2.2 INVENTORY VALUATION:

• Raw Materials, Finished Products, Packing Materials, Stores and Spares are stated at lower of cost or net realizable value.

• Finished goods and process stock include all cost of purchases, cost of conversion and other related costs incurred in bringing the inventories to their present location and condition.

• Finished goods are valued at cost or net realizable value whichever is lower.

2.3 CASH FLOW STATEMENT:

Cash flows are reported using the indirect method, whereby net profit (loss) before tax is adjusted for the effective transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

The cash flow from regular revenue generating, investing and financing activities of the group are segregated.

2.4 Equity

a) Ordinary Shares

Ordinary shares are classified as Equity Share capital. Incremental costs directly attributable to the issuance of new shares and buyback are recognized as a deduction from equity, net of any tax effects.

b) Securities Premium

The amount received in excess of the par value of equity shares has been classified as securities premium.

c) Retained Earnings

Retained earnings represent the amount of accumulated earnings of the company.

2.5 REVENUE RECOGNITION:

• Sales are recognized when the significant risk attached to the goods is passed on to the seller and are recorded net of trade discounts, rebates but excluding GST wherever tax applicable.

• The company recognizes revenue significant terms of the arrangement are enforceable, services have been delivered and the collectability is reasonably assured. The method for recognizing revenues and cost depends on the nature of the services rendered.

• Dividend income is recognized when the right to receive the dividend is established.

• Interest income is recognized on an accrual basis.

• Rental income on leased property is recognized on accrual basis, based on the terms and conditions agreed with the lessee.

2.6 PROPERTY, PLANT AND EQUIPMENT:

• Fixed Assets are stated at cost of acquisition and subsequent improvements thereto including nonrefundable taxes, duties, freight and other incidental expenses related to acquisition and installation.

• Interest on term loan taken for acquisition of assets is capitalized up to the date of asset being ready for use.

• Capital work in progress comprises of the cost of Fixed Assets that are not put to use as at the Balance Sheet date.

• Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. The carrying amount of any component as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit and loss during the reporting period in which they are incurred.

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

• Depreciation on Property, Plant & Equipment is provided on straight-line basis on the useful life of the asset as mentioned in Schedule II to the companies Act, 2013. Free hold land and Investment Property is not depreciated. The estimated useful life of assets is reviewed annually.

• Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period when the assets are ready for use. The Provision for Depreciation for the multiple shifts has been made in respect of eligible assets on the basis of operation of respective units.

• Useful lives of the Property, Plant and Equipment as notified in Schedule II to the Companies Act, 2013 are as follows

Category Useful Life

Buildings - RCC Structure 60 years

Without RCC Structure 30 years

Plant & Machinery 15 years (Double shift)

Computer 3 years

Equipment 5 years

Furniture & Fixture 10 years

Vehicles 8 years

2.7 IMPAIRMENT OF ASSETS:

At each balance sheet date, the Company reviews the carrying amount of property, plant and equipment to determine whether there is any indication of impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and the value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

2.8 INVESTMENT PROPERTY:

Investment Property are stated at original cost less accumulated depreciation and impairment losses except freehold land which is carried at cost. Cost includes cost of acquisition, construction and other incidental expenses related to the acquisition, trial run expenses (net of revenue) and pre-operative expenses including attributable borrowing costs incurred during pre-operational period.

However Company having Investment Property stated at cost .No depreciation is charges as company expects the fair market value of immovable property is much higher than the book value.

2.9 FOREIGN CURRENCY TRANSACTION:

• Initial recognition - Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency approximately at the date of the transaction.

• Conversion - Foreign currency monetary items are reported using the closing rate. Non-monetary items, which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of transaction.

• Exchange Differences - Exchange differences arising on the settlement or conversion of monetary items are recognized as income or as expenses in the period in which they arise.

2.10 INVESTMENTS:

The company carries certain equity instruments which are not held for trading. The company has elected the FVTOCI irrevocable option for these instruments. Movements in fair value of these investments are recognized in other comprehensive income and the gain or loss is not reclassified to statement of profit or loss. Dividends from these investments are recognized in statement of profit and loss when the company''s right to receive dividends is established.

2.11 EMPLOYEE BENEFITS:

2.11.1 Gratuity:

The company has taken Group Gratuity Scheme for its eligible employees from Life Insurance Corporation of India, for the gratuity liability. The same has been provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. Every Employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions of the defined benefit obligation are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

2.11.2 Leave Encashment:

Leave Encashment Liability of eligible employees is accounted as and when incurred.

2.11.3 Provident Fund:

Company''s contribution to provident fund is charged to Profit & Loss Account and the same is remitted to provident fund Commissioner along with the employee contribution.

2.12 BORROWING COST:

Borrowing cost that is specifically attributable to the acquisition, construction or production of qualifying asset is capitalized as part of the cost of such asset. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Other borrowing costs are recognized as an expense in the period in which they are incurred.

2.13 SEGMENT REPORTING:

The company is engaged in the business of manufacturing and trading of wheat and wheat products and therefore has only one reportable segment in accordance with IND AS-108 “Operating Segments”.

2.14 INCOME TAX:

• Tax expenses comprises of current and deferred tax.

Current Income tax is computed using the tax effect accounting method, where taxes are accrued in the same period in which the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

Deferred income taxes reflect the impact of current year timing differences between the taxable income and accounting income for the year and reversal of timing differences of earlier years, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will be available, against which such deferred tax assets can be realized. If the company has carry forward of unabsorbed depreciation and tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. Unrecognized deferred tax assets of earlier years are reassessed and recognized to the extent that it has become reasonably certain or virtually certain, as the case may be that future taxable income will be available against which such deferred tax asset can be realized.

Deferred tax is recognized in the statement of profit and loss, except to the extent that it relates to items recognized in other comprehensive income. As such, deferred tax is also recognized in other comprehensive income.

Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the Deferred Tax Assets and Deferred Tax Liabilities relate to taxes on income levied by same governing taxation laws.

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Mar 31, 2015

2.1 BASIS FOR PREPARATION OF FINANCIAL STATEMENT:

The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India ("ICAI"), relevant provisions of the Companies Act, 2013 and guidelines issued by the Securities and Exchange Board of India.

The financial statements have been prepared under historical cost convention on an accruals basis. The accounting policies have been consistently applied by the company and are consistent with those used during the previous year. The presentation of financial statement in conformity with generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management best knowledge of current events and actions the company may undertake in future, actual results ultimately may differ from the estimates.

2.2 INVENTORY VALUATION:

Raw Materials, Finished Products, Packing Materials, Stores and Spares are stated at lower of cost or net realizable value.

2.3 CASH FLOW STATEMENT:

Cash flows are reported using the indirect method, whereby net profit (loss) before tax is adjusted for the effective transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, investing and financing activities of the group are segregated.

2.4 DEPRECIATION:

Depreciation on Tangible Assets is provided on straight- line basis on the useful life of the asset as mentioned in Schedule II to the companies Act, 2013.

2.5 REVENUE RECOGNITION:

* Sales are recognized when the significant risk attached to the goods are passed on to the seller and are recorded net of trade discounts, rebates but includes Sales Tax wherever applicable.

* Dividend income is recognized when the right to receive the dividend is established.

* Interest income is recognized on an accrual basis.

* Rental income on leased property is recognized on accrual basis, based on the terms and conditions agreed with the lessee.

2.6 FIXED ASSETS:

* Fixed Assets are stated at cost of acquisition and subsequent improvements thereto including taxes, duties, freight and other incidental expenses related to acquisition and installation.

* Interest on term loan taken for acquisition of assets is capitalized upto the date of asset being ready for use.

* Capital work in progress comprises of the cost of Fixed Assets that are not put to use as at the Balance Sheet date and advance paid towards acquisition of Fixed Assets.

2.7 FOREIGN CURRENCY TRANSACTION:

* Initial recognition - Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency approximately at the date of the transaction.

* Conversion - Foreign currency monetary items are reported using the closing rate. Non monetary items, which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of transaction.

* Exchange Differences - Exchange differences arising on the settlement or conversion of monetary items are recognized as income or as expenses in the period in which they arise.

2.8 INVESTMENTS:

Long Term Investments are valued at their acquisition cost. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary in the opinion of the management.

2.9 EMPLOYEE BENEFITS:

2.9.1 Gratuity:

The company has taken Group Gratuity Scheme for its eligible employees from Life Insurance Corporation of India, for the gratuity liability. The premium payable to Life Insurance Corporation of India is provided on an actuarial basis.

2.9.2 Leave Encashment:

Leave Encashment Liability of eligible employees is accounted on actuarial basis.

2.9.3 Provident Fund:

Company's contribution to provident fund is charged to Profit & Loss Account and the same is remitted to provident fund Commissioner along with the employee contribution.

2.10 BORROWING COST:

Borrowing cost that are specifically attributable to the acquisition, construction or production of qualifying asset are capitalized as part of the cost of such asset. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Other borrowing costs are recognized as an expense in the period in which they are incurred.

2.11 SEGMENT REPORTING:

The companies operations predominantly relate to trading in wheat and manufacturing & trading in wheat products. The company has business segment as primary segment & geographical segment as secondary segment. Income and direct expenses in relation to segments is categorized bases on item that are individually identifiable to that segment and based on their relationship to the operating activity of that segment. Certain expenses such as depreciation, financial charges which form part of a segment component of total expense, are not specifically allocable to specific segment on a reasonable basis, have been included under unallocated corporate expenses.

Geographical revenues are segregated based on the location of the customer who is invoiced are in relation to which revenue is otherwise recognized.

2.12 ACCOUNTING OF LEASE:

Leases where the lessor effectively retains the substantially all risks and benefits of the ownership over the lease term are classified as operating lease. Operating lease payments are recognized as expenses in the profit and loss account on the straight-line basis over the lease term.

2.13 INCOME TAX:

* Tax expenses comprises of current, deferred and fringe benefit tax. Current tax and fringe benefit tax are measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax act, 1961.

* Deferred income taxes reflect the impact of current year timing differences between the taxable income and accounting income for the year and reversal of timing differences of earlier years, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will be available, against which such deferred tax assets can be realized. If the company has carry forward of unobserved depreciation and tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. Unrecognized deferred tax assets of earlier years are reassessed and recognized to the extent that it has become reasonably certain or virtually certain, as the case may be that future taxable income will be available against which such deferred tax asset can be realized.

2.14 PROVISIONS:

Provision is recognized when the company has a present obligation as a result of past events: it is probable that the outflow of resources will be required to settle this obligation, in respect of which reliable estimate can be made. The provision is not discounted at present value and are determined based on the best estimate is required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

2.15 CONTINGENT LIABILITIES:

All known liabilities wherever material are provided for. Liabilities that are material, whose future outcome cannot be ascertained with reasonable certainty are contingent and disclosed by way of notes to accounts.

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Mar 31, 2014

Not Available.

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Mar 31, 2012

1.1 BASIS FOR PREPARATION OF FINANCIAL STATEMENT:

The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India ("ICAI"), relevant provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India.

The financial statements have been prepared under historical cost convention on an accruals basis. The accounting policies have been consistently applied by the company and are consistent with those used during the previous year. The presentation of financial statement in conformity with generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management best knowledge of current events and actions the company may undertake in future, actual results ultimately may differ from the estimates.

1.2 INVENTORY VALUATION:

Raw Materials, Finished Products, Packing Materials, Stores and Spares are stated at lower of cost or net realizable value.

1.3 CASH FLOW STATEMENT:

Cash flows are reported using the indirect method, whereby net profit (loss) before tax is adjusted for the effective transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, investing and financing activities of the group are segregated.

1.4 DEPRECIATION:

Depreciation on Fixed Assets is provided on straight- line basis at the rates mentioned in Schedule XIV of the companies Act, 1956, on proportionate basis.

1.5 REVENUE RECOGNITION:

- Sales are recognized when the significant risk attached to the goods are passed on to the seller and are recorded net of trade discounts, rebates but includes Sales Tax wherever applicable.

- Dividend income is recognized when the right to receive the dividend is established.

- Interest income is recognized on an accrual basis.

- Rental income on leased property is recognized on accrual basis, based on the terms and conditions agreed with the lessee.

1.6 FIXED ASSETS:

- Fixed Assets are stated at cost of acquisition and subsequent improvements thereto including taxes, duties, freight and other incidental expenses/elated to acquisition and installation.

- Interest on term loan taken for acquisition of assets is capitalized upto the date of asset being ready for use.

- Capital work in progress comprises of the cost of Fixed Assets that are not put to use as at the Balance Sheet date and advance paid towards acquisition of Fixed Assets.

1.7 FOREIGN CURRENCY TRANSACTION:

- Initial recognition - Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency approximately at the date of the transaction.

- Conversion - Foreign currency monetary items are reported using the closing rate. Non monetary items, which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of transaction.

- Exchange Differences - Exchange differences arising on the settlement or conversion of monetary items are recognized as income or as expenses in the period in which they arise.

1.8 INVESTMENTS:

Long Term Investments are valued at their acquisition cost. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary in the opinion of the management.

1.9 EMPLOYEE BENEFITS:

1.9.1 Gratuity:

The company has taken Group Gratuity Scheme for its eligible employees from Life Insurance Corporation of India, for the gratuity liability. Liability for Gratuity is provided on Actuarial basis.

1.9.2 Leave Encashment:

Leave Encashment Liability of eligible employees is accounted on accrual basis.

1.9.3 Provident Fund:

Company's contribution to provident fund is charged to Profit & Loss Account and the same is remitted to provident fund Commissioner along with the employee contribution.

1.10 BORROWING COST:

Borrowing cost that are specifically attributable to the acquisition, construction or production of qualifying asset are capitalized as part of the cost of such asset. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Other borrowing costs are recognized as an expense in the period in which they are incurred.

1.11 SEGMENT REPORTING:

The companies operations predominantly relate to trading in wheat and manufacturing & trading in wheat products. The company has business segment as primary segment & geographical segment as secondary segment. Income and direct expenses in relation to segments is categorized bases on item that are individually identifiable to that segment and based on their relationship to the operating activity of that segment. Certain expenses such as depreciation, financial charges which form part of a segment component of total expense, are not specifically allocable to specific segment on a reasonable basis, have been included under unallocated corporate expenses.

Geographical revenues are segregated based on the location of the customer who is invoiced are in relation to which revenue is otherwise recognized.

1.12 ACCOUNTING OF LEASE:

Leases where the lessor effectively retains the substantially all risks and benefits of the ownership over the lease term are classified as operating lease. Operating lease payments are recognized as expenses in the profit and loss account on the straight-line basis over the lease term.

1.13 INCOME TAX:

- Tax expenses comprises of current, deferred and fringe benefit tax. Current tax and fringe benefit tax are measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax act, 1961.

- Deferred income taxes reflect the impact of current year timing differences between the taxable income and accounting income for the year and reversal of timing differences of earlier years, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will be available, against which such deferred tax assets can be realized. If the company has carry forward of unobserved depreciation and tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. Unrecognized deferred tax assets of earlier years are reassessed and recognized to the extent that it has become reasonably certain or virtually certain, as the case may be that future taxable income will be available against which such deferred tax asset can be realized.

1.14 PROVISIONS:

Provision is recognized when the company has a present obligation as a result of past events: it is probable that the outflow of resources will be required to settle this obligation, in respect of which reliable estimate can be made. The provision is not discounted at present value and are determined based on the best estimate is required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

1.15 CONTINGENT LIABILITIES:

All known liabilities wherever material are provided for. Liabilities that are material, whose future outcome cannot be ascertained with reasonable certainty are contingent and disclosed by way of notes to accounts.

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Mar 31, 2011

1. BASIS FOR PREPARATION OF FINANCIAL STATEMENT:

The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India ("ICAI"), relevant provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India.

The financial statements have been prepared under historical cost convention on an accruals basis. The accounting policies have been consistently applied by the company and are consistent with those used during the previous year. The presentation of financial statement in conformity with generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management best knowledge of current events and actions the company may undertake in future, actual results ultimately may differ from the estimates.

2. INVENTORY VALUATION:

Raw Materials, Finished Products, Packing Materials, Stores and Spares are stated at lower of cost or net realizable value.

3. CASH FLOW STATEMENT:

Cash flows are reported using the indirect method, whereby net profit (loss) before tax is adjusted for the effective transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, investing and financing activities of the group are segregated.

4. DEPRECIATION:

Depreciation on Fixed Assets is provided on straight- line basis at the rates mentioned in Schedule XIV of the companies Act, 1956, on proportionate basis.

5. REVENUE RECOGNITION:

- Sales are recognized when the significant risk attached to the goods are passed on to the seller and are recorded net of trade discounts, rebates but includes Sales Tax wherever applicable.

- Dividend income is recognized when the right to receive the dividend is established.

- Interest income is recognized on an accrual basis.

- Rental income on leased property is recognized on accrual basis, based on the terms and conditions agreed with the lessee.

6. FIXED ASSETS:

- Fixed Assets are stated at cost of acquisition and subsequent improvements thereto including taxes, duties, freight and other incidental expenses related to acquisition and installation.

- Interest on term loan taken for acquisition of assets is capitalized upto the date of asset being ready for use.

- Capital work in progress comprises of the cost of Fixed Assets that are not put to use as at the Balance Sheet date and advance paid towards acquisition of Fixed Assets.

7. FOREIGN CURRENCY TRANSACTION:

- Initial recognition - Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency approximately at the date of the transaction. •

- Conversion - Foreign currency monetary items are reported using the closing rate. Non monetary items, which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of transaction.

- Exchange Differences - Exchange differences arising on the settlement or conversion of monetary items are recognized as income or as expenses in the period in which they arise.

8. INVESTMENTS:

Long Term Investments are valued at their acquisition cost. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary in the opinion of the management.

9. EMPLOYEE BENEFITS:

9.1 Gratuity:

The company has taken Group Gratuity Scheme for its eligible employees from Life Insurance Corporation of India, for the gratuity liability. Liability for Gratuity is provided on Actuarial basis.

9.2 Leave Encashment:

Leave Encashment Liability of eligible employees is accounted on accrual basis.

9.3 Provident Fund:

Company's contribution to provident fund is charged to Profit & Loss Account and the same is remitted to provident fund Commissioner along with the employee contribution.

10. BORROWING COST:

Borrowing cost that are specifically attributable to the acquisition, construction or production of qualifying asset are capitalized as part of the cost of such asset. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Other borrowing costs are recognized as an expense in the period in which they are incurred.

11. SEGMENT REPORTING:

The companies operations predominantly relate to trading in wheat and manufacturing & trading in wheat products. The company has business segment as primary segment & geographical segment as secondary segment. Income and direct expenses in relation to segments is categorized bases on item that are individually identifiable to that segment and based on their relationship to the operating activity of that segment. Certain expenses such as depreciation, financial charges which form part of a segment component of total expense, are not specifically allocable to specific segment on a reasonable basis, have been included under unallocated corporate expenses.

Geographical revenues are segregated based on the location of the customer who is invoiced are in relation to which revenue is otherwise recognized.

12. ACCOUNTING OF LEASE:

Leases where the lessor effectively retains the substantially all risks and benefits of the ownership over the lease term are classified as operating lease. Operating lease payments are recognized as expenses in the profit and loss account on the straight-line basis over the lease term.

13. INCOME TAX:

- Tax expenses comprises of current, deferred and fringe benefit tax. Current tax and fringe benefit tax are measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax act, 1961.

- Deferred income taxes reflect the impact of current year timing differences between the taxable income and accounting income for the year and reversal of timing differences of earlier years, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will be available, against which such deferred tax assets can be realized. If the company has carry forward of unobserved depreciation and tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. Unrecognized deferred tax assets of earlier years are reassessed and recognized to the extent that it has become reasonably certain or virtually certain, as the case may be that future taxable income will be available against which such deferred tax asset can be realized.

14. PROVISIONS:

Provision is recognized when the company has a present obligation as a result of past events: it is probable that the outflow of resources will be required to settle this obligation, in respect of which reliable estimate can be made. The provision is not discounted at present value and are determined based on the best estimate is required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

15. CONTINGENT LIABILITIES:

All known liabilities wherever material are provided for. Liabilities that are material, whose future outcome cannot be ascertained with reasonable certainty are contingent and disclosed by way of notes to accounts.

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Mar 31, 2010

1. BASIS FOR PREPARATION OF FINANCIAL STATEMENT:

The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India ("ICAI"), relevant provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India. The Financial Statements have been prepared under historical cost convention on an accrual basis. The Accounting Policies have been consistently applied by the Company and are consistent with those used during the previous year. The presentation of Financial Statement in conformity with Generally Accepted Accounting Principles ("GAAP") requires Management to make estijnates and assumptions that affect the amounts reported in the Financial Statements and accompanying notes. Although these estimates are based on management best knowledge of current events and actions the Company may undertake in future, actual results ultimately may differ from the estimates.

2. INVENTORY VALUATION:

Raw Materials, Finished Products, Packing Materials, Stores and Spares are stated at lower of cost or net realizable, value.

3. CASH FLOW STATEMENT:

Cash flows are reported using the indirect method, whereby net profit (loss) before tax is adjusted for the effective transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, investing and financing activities of the group are segregated.

4. DEPRECIATION:

Depreciation on Fixed Assets is provided on straight- line basis at the rates mentioned in Schedule XIV of the Companies Act, 1956, on proportionate basis.

5. REVENUE RECOGNITION:

- Sales are recognized when the significant risk attached to the goods are passed on to the seller and are recorded net of trade discounts, rebates but includes Sales Tax wherever applicable.

- Dividend income is recognized when the right to receive the dividend is established.

- Interest income is recognized on an accrual basis.

- Rental income on leased property is recognized on accrual basis, based on the terms and conditions agreed with the lessee.

6. FIXED ASSETS:

- Fixed Assets are stated at cost of acquisition and subsequent improvements thereto including taxes, duties, freight and other incidental expenses related to acquisition and installation.

- Interest on term loan taken for acquisition of assets is capitalized upto the date of asset being ready for use.

- Capital work in progress comprises of the cost of Fixed Assets that are not put to use as at the Balance Sheet date and advance paid towards acquisition of Fixed Assets.

7. FOREIGN CURRENCY TRANSACTION:

- Initial recognition - Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency approximately at the date of the transaction.

- Conversion - Foreign currency monetary items are reported using the closing rate. Non monetary items, which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of transaction.

- Exchange Differences - Exchange differences arising on the settlement or conversion of monetary items are recognized as income or as expenses in the period in which they arise.

8. INVESTMENTS:

Long Term Investments are valued at their acquisition cost. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary in the opinion of the management.

9. EMPLOYEE BENEFITS:

9.1 Gratuity:

The company has taken Group Gratuity Scheme for its eligible employees from Life Insurance Corporation of India, for the gratuity liability. Liability for Gratuity is provided on Actuarial basis.

9.2 Leave Encashment:

Leave Encashment Liability of eligible employees is accounted on accrual basis.

9.3 Provident Fund:

Companys contribution to provident fund is charged to Profit & Loss Account and the same is remitted to provident fund Commissioner along with the employee contribution.

10. BORROWING COST:

Borrowing cost that are specifically attributable to the acquisition, construction or production of qualifying asset are capitalized as part of the cost of such asset. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Other borrowing costs are recognized as an expense in the period in which they are incurred.

11. SEGMENT REPORTING:

The companys operations predominantly relate to trading in wheat and manufacturing & trading in wheat products. The Company has business segment as primary segment & geographical segment as secondary segment. Income and direct expenses in relation to segments is categorized based on item that are individually identifiable to that segment and based on their relationship to the operating activity of that segment. Certain expenses such as depreciation, financial charges which form part of a segment component of total expense, are not specifically allocable to specific segment on a reasonable basis, have been included under unallocated corporate expenses. Geographical revenues are segregated based on the location of the customer who is invoiced are in relation to which revenue is otherwise recognized.

12. ACCOUNTING OF LEASE:

Leases where the lessor effectively retains substantially all risks and benefits of the ownership over the lease term are classified as operating lease. Operating Jease payments are recognized as expenses in the profit and loss account on the straight-line basis over the lease term.

13. INCOME TAX:

- Tax expenses comprises of current, deferred and fringe benefit tax. Current tax and fringe benefit tax are measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax act, 1961.

- Deferred income taxes reflect the impact of current year timing differences between the taxable income and accounting income for the year and reversal of timing differences of earlier years, based on the tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is reasonable certainty that sufficient future taxable income will be available, against which such deferred tax assets can be realized. If the Company has carry forward balance of unobserved depreciation and tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. Unrecognized deferred tax assets of earlier years are reassessed and recognized to the extent that it has become reasonably certain or virtually certain, as the case may be that future taxable income will be available against which such deferred tax asset can be realized.

14. PROVISIONS:

Provision is recognized when the Company has a present obligation as a result of past events, it is probable that the outflow of resources will be required to settle this obligation, in respect of which reliable estimate can be made. The provision is not discounted at present value and are determined based on the best estimate as required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.

15. CONTINGENT LIABILITIES:

All known liabilities wherever material are provided for Liabilities that are material, whose future outcome cannot be ascertained with reasonable certainty are contingent and disclosed by way of notes to accounts.