Accounting Policies of Teesta Agro Industries Ltd. Company

Mar 31, 2025

2. SIGNIFICANT ACCOUNTING POLICIES
2 1 Basis of preparation:

The financial statements of the company have been prepared in accordance with Indian
Accounting Standards (Ind AS)'' on accrual basis and under the historical cost
convention pursuant to section 133 of the Companies Act. 2013 read with rule 3 of
Companies (Indian Accounting Standards) Rules. 2015 and Companies (Indian
Accounting Standards) Ammended Rules, 2016.

2 2 Use of estimates:

The preparation of financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent liabilities at the date of the financial statements and the results of operations
during the reporting period Although these estimates are based upon management s
best knowledge of current events and actions actual results could differ from these
estimates Difference between the actual results and estimates are recognised in th>
period m which the results are known/ materialized

2 3 Current versus non-current classification:

Any asset or liability is classified as current if it satisfies any of the following conditions
(i) The asset/hablhty is expected to be realized/settled in the Company''s norm ¦.
operating cycle

(ti) The asset is intended for sale or consumption;

(in) The asset/llability is held primarily for the purpose of trading,

(iv) The asset/liability is expected to be realized/settled within twelve months after the
reporting period;

(v) The asset is cash or cash equivalent unless it is restricted from being exchanged or
used to settle a liability for atleasi twelve months after the reporting date

(vi) In me case of liability, the Company does not have an unconditional right to defer
settlement of the liability for at least twelve months after the reporting date.

All other assets and liabilities are classified as non-current assets and liabilities
Deferred tax assets and liabilities are classified as non-current assets and l abilities
For The purpose of currenl/ndn-current classification of assets and liabilities, the
company has ascertained its normal operating cycle as twelve months. This is based on

the nature of services and the time between the acquisition of assets or inventories fo
processing and their realization in cash and cash equivalents

2 4 Property, plant and equipment:

Property, plant & equipment (PPE) and capital work in progress are stated at cost less
accumulated depreciation and accumulated impairment losses if any Cost comprises
the purchase price including duties and other non refundable taxes or levies directlv
attributable cost of bringing the assets to its working condition borrowing costs if
capitalization criteria are met and indirect cost specifically attributable to construction of
a project or to the acquisition of a fixed asset

Depreciation on PPE is calculated using the straight-line method to allocate their cost
net of their residual values, over their estimated useful lives as per schedule II of
Companies Act. 2013.

Losses arising from the retirement of. and gams or losses arising from disposal of PPE
are recognized in the Statement of Profit and Loss.

2 5 Impairment of Asset:

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

*

2 6 Inventories:

Inventories are valued at cost

(a) Inventories of stores & spares and packing materials are valued at FIFO basis.

(b) Major raw materials are valued at cost on FIFO basis: Raw materials for NPK are
valued at average cost price

(c ) Finished goods aie valued at lower of cost and net realisable value

Cost includes cost of purchase duties taxes and all other costs incurred in bunging the
inventories to their present location.

2 7 Revenue Recognition:

a) Sales exclusive of Excise Duty, VAT and GST are recognised as revenue on

dispatches

b) Dividend income on investments is accounted for when the right to receive th
payment is established

c) Interest income is accounted on time proportion basis taking mto account the amount
outstanding and applicable interest rate

d) Income from rent from Property is recognized when the right to receive the payment
is established

2.8 Subsidy:

Subsidy receivable from Government on sale of S S P & G S.S.P Fertilizer is included
in income and recognised on accrual basis. Where the grant or subsidy relates to an
asset, it''s value is deducted in arriving at the carrying amount of the related asset

2.9 Foreign currency Transactions:

Transactions in foreign currencies are recorded at the rates of exchange prevailing on
the dates when the relevant transactions take place: assets and liabilities valued at
contract/yearend rate and resultant loss or gain is accounted for in the profit and loss
account

2.10 Investments:

Long term investments are stated at cost and provision for diminution is made, if such
diminution is other than temporary in nature. Considering the year end rates, no
diminution is there in the value of long term investments Short term investments are
stated at cost as there is no diminution in yearend value

2.11 Borrowing costs:

Borrowing Cost relating to (i) funds borrowed for acquisition/construction of qualifying
assets are capitalized up to the date the assets are put to use. and (ii) funds boirowed
for other purposes are charged to Profit and Loss Account

2.12 Tax Liability:

Tax liability is estimated considering the provisions of the Income Tax Act 1S61
Deferred tax is recognized on timing difference, being the difference between taxable
income and accounting income that originate in one''penod and are capable of reversal
in one or more subsequent periods On prudent basis, Deferred tax asset is recognize
and carried forward only when there Is a reasonable certainty that sufficient futurs
taxable income will be available against which such deferred tax assets can be realized

2.13 Employee Benefits:

Contributions to Provident fund and Superannuation Fund which are defined
contribution schemas are made to a government administered Provident Fund and L
recognized trust respectively and are charged to tne Profit and Loss account as
incurred The company has no further obligations beyond its contributions to Ihest
funds.

Provision for gratuity, under a LIC administered fund, and leave encashment, which are
in the nature of defined benefit plans, are provided based on actuarial va'' lation based
on projected unit credit method as at the balance sheet date

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Mar 31, 2024

1. CORPORATE INFORMATION

The company, is a public listed company domiciled in India and 5 incorporated unde: the provisions Of the Companies Ac; applicable In India its shares are -is tec on The Bombay Stock Exchange of India. The r&gistered office of the company is located at Mazaban. PO-Rajganj, D Fit -Jalpaiguu, Bengal PIN 73d⁴34

The Company is principally engaged in the business of manufacturing and marketing Fertilizers

2. SIGNIFICANT ACCOUNTING POLICIES

2A Basis of preparation:

The Financial statements of the company have been prepared 111 gpgordafifte with Iridiar Accounting Standards (Ind AS) or; accrual bas.s and uncer the hj''sE&ri^l cost convention pursuant to sec;,on 133 of the Companies Act, 20 read with rule 3 oi Companies (Indian Accounting Standards! Rules, 2015 and Companies {Indian AccDLintmg Standards) Am mended Rules, 2016.

2.2 Use of estimates:

The preparation oⁱ financtel sta® mentis re ] ipei r magemon: to make jsffftjates 1 d assumptions that affect the reported amounts of assets and liahii ties anti disclosure ef contingent liabilities at the date of rhe financial statements and the resulte of operations dunng the reporting period. Although these est.mates are based upon management''s best Knowledge ol currant events and actons, actual lesults could differ from there estimates. Difference between the actual results and estimates are recog- .seel the period in which the resu ts are knuw.''i/ materia I feed

2.3 Current versus non-current classification:

Any asset liability is classified as current 11 it satisfies any o^f the following .ondrtions

(i) The asset/liability is expected to be realized/settled ir Ilia Company''s normal Operating cycle;

(ii) The; asset is intended for sa e or gon&urr ption:

(iii) 1 he asset/liabllity is bold primarily fpr the purpose of trad.ng,

(iv) The ateet/iiability is expected to be reoiizeti/settled withm twelve months after the reporting period,

tv) The asset is cash or cash equivalent unless it is restricted from being exchanged m used to settle a liability for atleast twelve months after the reporting date {vi} In tlie case of liaoility the Company dees not have an uncondihunal right to defer settlement ot the liability tor at least twelve magnths after the reporting dare All other assets and liabilities are classified as non-current assets ar d iiabii ties... Deterred tax assets and liabilities are classified as non-cuneiit assets and iiati ities For the purpose of curre''d/non-current classification of assets and i abi.l lies tee company has ascertained its normal Operating cycle as twelve mom r Th''fe is oased >

live naiure oT services and the time between me acquisition of asseis or inventories For processing and their lealjza''^on in cash and cash equivalents

2.4 Property, plant and equipment:

Property, plant & equipment fPFEt and capital work in progress are stated al tost teas accumulated depreciation and accumulated impairment losses, Y any Cost nomP^r se? the purchase price including duiies and other non refundable :axti v evies directly attributable cost of bringing the assets Co its working condition, borrowing costs if capitalization criteua are met and Indirect cost specifically attributable to construct on of a prefect or to the acquisition ot a Fixed asset

Depreciation on PPE 5 calculated usir.g the Straight line method -o a locate their cof.i net of the! resjdual values ove^- their estimate^ useful lives as nef sona''d''tile il ¦ '' Companies Act, 2013

Losses arising from the retibsment of. and gains or losses arising from d sposal of PPE are recognized in the Statement of Profit and Loss,

2.5 Impairment of Asset:

An asset "5 treated as impaired when the carrying cost Ol the same exceeds i ¦ recoverable amount. An impairment is charged to the Profit ana Loss Account in the yegr 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 26 Inventories:

Inventories are val ;ed at gob:

(a) JnvetHori.es of stores £ spates and packing materials brd valued a^r FIFO basis

(b) Major law materials arc valued at cost on FIFO basis; Raw materials for NPK are valued at average cost price.

to \- Finished goods are valued at lower ol cost arid net realisable value

Cosi nck.''des cost of purchase, duties, taxes and all other costs Incurred 1'' tri iging the inventories to their present location.

2 7 Revenue Recognition:

aj Sales exclusive of Excise Duty, VAT and GST are recognised as revenue on dispatches.

hi Dividend income on investments is accounted tor when the \ciin to recewe payment is established

e) Interest income is accounted on t me proportion basis taking into account the ano.i it outstanding and applicable interest rate.

d> Income from rarit from Pruusrty is recognized whan the right lb receiv''d the payrnenl is established

2.8 Subsidy:

Subsidy receivable From Government ion sa^!e of S.S P 3 G.8.S.P Fertilizer it Ini L.ded in income and recognised on accrual Oasis. Whore the grant or subsidy relates to an asset, it^:s value is deducted In arriving at ine carrying amount or the related asset

2.9 Foreign currency Transactions:

Transactions in foreign currencies are recorded at the rates of exchange ireva ling on the dates when the relevanl transactions tahe pace; assets and liabilities valuer: at conlract/yearend rate and resultant loss nr gain is accounted for in the profit arn.i loss account.

2.10 Investments:

Long term investment? are stated at cosi and provision for diminution Is made i such diminution is other than temporary in nature Considering the yeai end :ates no diminution Is there In the value ot long term investments Short term Investments are stated at cost as there is no diminution .n yearend value.

2.11 Borrowing costs:

Borrow.ny Cost relating to (it funds borrowed for acquisiLionyconstructio. of qualify assets are capita iZCd up to I he date the assets arc pul to use and hi) Givi- r.-ermwa I Tor other purposes are charged to Protit and Loss Account

2.12 Tax Liability:

Tax liability Is estimated considering the provisions of the income Ta>. Act, 196l Deferred tax is recognized on timing difference being ''he difference between teixai -income and accounting income that originate in one period anti are capable of reversal .ii one u more .subsequent periods On prudam basis, Deferred tax asset .? recognised and carried forward only when there is a reasonable certainty thai sufficient future laxaLle income Will be avsilabte against which such deferred tax asset? can he rea ized

2.13 Em ploycg Benefits:

Contributions lo Provident fund and Superannuation Fund which are defined contribution schemes are made to a government administered Provident Fund and to recognized [rust luspaclivcty and are charged to the Profit and Loss account as incurred The company has no further obligations beyond its aonthbutions to these funds

Provision fipr gratufy, under e LfC administered fund, and leave encasnnnr- l Which art n the nature of defined benefit plans, are provided based on actuarial valualion based on projected unit credit method as at the balance sheet date

2.14 Provisions, contingent liabilities and contingent assets:

Provisions involving substantial degree o'' estimation in nieas.u(finer I sie recognize! when there -s a present obligation as e result of past events and it is possible that there Will be an outflow of resources. Contingent [(abilities etc- not recognized but are disclosed- in notes, Contingent assets are nlfthitr recognized nor disclosed in the finan&iaJ statements

Other Explanatory notes and Information

2. 15 Sundry Debtors and adyanods {considered good) include certain overdue cebts/ old advances aggregating to ^Tl5 (Previous Year ^15) for which necessary steps are being taken tor realisation and as such no provision there against is considered necessary in these accounts.

2.16 Balances of certain Sundry Debtors, Sundry Creditors, Loans and Advances a Other Liabilities ar e In process ol cor firmstlpn/recpnclllalbn The mumyemenl is of Lbe opinion that an.usime¹ i if any a?-sing out of such recoticillaftton would not bo material

2 17 Minimum Alternate “ax Credit is recognized as an asset only to the extent there is convmdng evidence that ''.he Company will gay normal Income Tax during the specified period

2,18 In tire opinion of the Board the Current Assets. Loans and advances appearing in the company''s balance sheet as at the yeaiend would have value on realization In ihe normal course or business at least equal to the respective amounts at which they are stated in the balance sheet.

2 19 Under the Micro, Small and Medium Enterprises Development Act zGUfj, certain disclosures are required to he made relating to micro, small and medium enterprises, but the In formatter! is not available.

2 20 (aj Estimated amount of Capital Commitments net of advances as at 31.03.202-1 and hot provided iur iS ^ ''00 (Previous ye Fir ? 2CQ''J,

m Contingent Liabilities 202.3-24 2022-23

(Not provided for) In respect ol -

- Letter of Credit 1116 1935

- Bank Guarantees 56 37

2.2''^: Consumption of raw materials includes foreign exchange less of ^TO (Prev ous yeai loss of ^0)

2 22 Fretirement Benefits Defined Benefits F an

The company has subscribed to yroup gratuity policy with he Life Insurance Corporation of India to cover its lability towards employees'' gratuity. Graruity liability has beet) actuarial:y calculated and the same has been provided for as on Ihe dare of Balance Sheet. Summary of Gratuity Plan.

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Mar 31, 2016

1.1 The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India ("Indian GAAP") to comply with the Accounting Standards, prescribed under section 133 of the Companies Act, 2013 (''the CA 2013'') as applicable. These financial statements have been prepared on accrual basis under the historical cost convention. Where it is not possible to determine the quantum of accrual with reasonable certainty e.g. insurance and other claims etc. these continue to be accounted for on settlement basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in previous year.

1.2 The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

1.3 Fixed Assets are valued at cost less accumulated depreciation. Cost comprises the purchase price including duties and other non refundable taxes or levies directly attributable cost of bringing the assets to its working condition and indirect cost specifically attributable to construction of a project or to the acquisition of a fixed asset. Depreciation has been calculated on straight line method based on the estimated useful life of the assets as per schedule II of Companies Act, 2013.

1.4 An asset is treated as impaired when the carrying cost of the same exceeds its recoverable amount. An impairment is charged to the Profit and Loss Account 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.

1.5 Inventories are valued at cost.

(a) Inventories of stores & spares and packing materials are valued at FIFO basis.

(b) Major raw materials are valued at cost on FIFO basis; Raw materials for NPK are valued at average cost price.

(c) Finished goods are valued at lower of cost and net realizable value.

1.6 Cost includes cost of purchase, duties, taxes and all other costs incurred in bringing the inventories to their present location.

1.7 a) Sales exclusive of Excise Duty, VAT and net of dealers'' margin are recognized as revenue on dispatches.

b) Dividend income on investments is accounted for when the right to receive the payment is established.

c) Interest income is accounted on time proportion basis taking into account the amount outstanding and applicable interest rate.

1.8 Subsidy receivable from Government on sale of S.S.P. & G.S.S.P. Fertilizer is also recognized on accrual basis. Where the grant or subsidy relates to an asset, it''s value is deducted in arriving at the carrying amount of the related asset.

1.9 Transactions in foreign currencies are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place; assets and liabilities valued at contract/yearend rate and resultant loss or gain is accounted for in the profit and loss account.

1.10 Long term investments are stated at cost and provision for diminution is made, if such diminution is other than temporary in nature. Considering the year end rates, no diminution is there in the value of long term investments.

1.11 Borrowing cost relating to (i) funds borrowed for acquisition/construction of qualifying assets are capitalized up to the date the assets are put to use, and (ii) funds borrowed for other purposes are charged to Profit and Loss Account.

1.12 Tax liability is estimated considering the provisions of the Income Tax Act, 1961. Deferred tax is recognized on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. On prudent basis, Deferred tax asset is recognized and carried forward only when there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.13 Contributions to Provident fund and Superannuation Fund, which are defined contribution schemes are made to a government administered Provident Fund and to recognized trust respectively and are charged to the Profit and Loss account as incurred. The company has no further obligations beyond its contributions to these funds.

Provision for gratuity, under a LIC administered fund, and leave encashment, which are in the nature of defined benefit plans, are provided based on actuarial valuation based on projected unit credit method, as at the balance sheet date.

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

2. Other Explanatory notes and Information

2.1 Sundry Debtors and advances (considered good) include certain overdue debts/ old advances aggregating toRs.8 (Previous YearRs.8) for which necessary steps are being taken for realization and as such no provision there against is considered necessary in these accounts.

2.2 Balances of certain Sundry Debtors, Sundry Creditors, Loans and Advances and Other Liabilities are in process of confirmation/reconciliation. The management is of the opinion that adjustment if any arising out of such reconciliation would not be material.

2.3 Sales tax remission was granted to the company by State Government initially for a period of 13 (Thirteen) years and subsequently reduced to 9 (Nine) years which ended on 30.03.2010. The management is of the opinion that as per the law the company is entitled for remission for 13 (thirteen) years i.e. up to 30.03.2014 and necessary legal steps are being taken in this regard. VAT from the year 2014-15 is paid by the Company since there is no remission coverage from this year. VAT liability under dispute from 31.03.2010 to 30.03.2014 aggregating Rs.177 is shown under the head Contingent Liability.

2.4 Excise duty on sulphuric acid principally used for captive consumption of SSP (Finished Goods) has not been considered for valuation of stock of sulphuric acid consistently over the years. However, excise duty on fertilizers which is chargeable since 1st March, 2011 has been considered for valuation of fertilizer inventory as on 31.03.2016.

2.5 In the opinion of the Board the Current Assets, Loans and advances appearing in the company''s balance sheet as at the yearend would have value on realization in the normal course of business at least equal to the respective amounts at which they are stated in the balance sheet.

2.6 Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to micro, small and medium enterprises but the information is not available.

2.7 (a) Estimated amount of Capital Commitments net of advances as at 31.03.2016, and not provided for isRs.15 (Previous year Rs.10).

2.8 Consumption of raw materials includes foreign exchange gain ofRs.nil (Previous year gain of Rs.nil).

2.9 Retirement Benefits

Defined Benefits Plan

The company has subscribed to group gratuity policy with the Life Insurance Corporation of India to cover its liability towards employees'' gratuity. Gratuity liability has been actuarially calculated and the same has been provided for as on the date of Balance Sheet. Summary of Gratuity Plan is given below:-

The company extends the benefit of leave encashment to its employees while in service. Leave encashment benefits are accounted for on the basis of actual valuation as at year end.

Defined Contribution Plan

Contribution to Defined Contribution Plan i.e. contribution to Provident Fund amounting to Rs.23 (Previous yearRs.22) has been recognized as expenses in the year and charged to revenue account. These contributions are made to the fund administered and managed by Regional Provident Fund Commissioner, Jalpaiguri.

2.10 Segment Information

The business segments have been identified on the basis of the products manufactured by the Company i.e. Fertilizers & Sulphuric Acid. Mainly Sulphuric Acid is captivity used for production of SSP. The company is managed organizationally as one unified entity, hence there are no separate geographical segments.

2.11 Deferred Tax Accounting:-

As per the Accounting Standard 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, deferred tax credit for the year Rs.1 has been recognized in the Profit and Loss Account for the year. Details of Deferred Tax Assets/(Liabilities) as on 31.03.2016 are as follows: -

2.12 Management has evaluated value in use of its fixed assets as required by Accounting Standard 28. On evaluation, management is of the opinion that there is no impairment of the Company''s assets as on 31st March, 2016 and hence no provision is required

The company has only one class of equity shares having a par value of Rs.10 per share. Each share holder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual general Meeting. In the event of liquidation of the Company, the equity share holders are eligible to receive remaining assets of the Company, after distribution of all Preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2014

1.1 The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India. The company has prepared these Financial Statements to comply in all material respects with the accounting Standards notified under the Companies (Accounting Standards) Rules 2006 (As amended) and the relevant provisions of the Companies Act, 1956 read with general circular 8/2014 dated 4th April, 2014 issued by the Ministry of Corporate Affairs. The Financial Statements have been prepared on going concern basis under the historical cost convention . The accounting Policies adopted in the preparation of these Financial statements are consistent with those of previous years.

The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. Where it is not possible to determine the quantum of accrual with reasonable certainty e.g. insurance and other claims, refund of custom/excise duty etc. these continue to be accounted for on settlement basis.

1.2 The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates .

1.3 Fixed Assets are valued at cost less accumulated depreciation. Cost comprises the purchase price including duties and other non refundable taxes or levies directly attributable cost of bringing the assets to its working condition and indirect cost specifically attributable to construction of a project or to the acquisition of a fixed asset. Depreciation has been calculated on straight line method at applicable rates prescribed in Schedule XIV of the Companies Act, 1956.

1.4 An asset is treated as impaired when the carrying cost of the same exceeds its recoverable amount. An impairment is charged to the Profit and Loss Account 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.

1.5 Inventories are valued at cost.

(a) Inventories of stores & spares and packing materials are valued at FIFO basis.

(b) Major raw materials are valued at cost on FIFO basis; Raw materials for NPK are valued at average cost price.

(c) Finished goods are valued at lower of cost and net realisable value.

1.6 Cost includes cost of purchase, duties, taxes and all other costs incurred in bringing the inventories to their present location.

1.7 a) Sales exclusive of Excise Duty, VAT (Rs.221) and net of dealers'' margin are recognised as revenue on dispatches.

b) Dividend income on investments is accounted for when the right to receive the payment is established.

c) Interest income is accounted on time proportion basis taking into account the amount outstanding and applicable interest rate.

1.8 Rebate/Subsidy receivable from Government on sale of Single Super Phosphate Fertilizer is also recognised on accrual basis. Where the grant or subsidy relates to an asset, it''s value is deducted in arriving at the carrying amount of the related asset.

1.9 Transactions in foreign currencies are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place; assets and liabilities valued at contract/yearend rate and resultant loss or gain is accounted for in the profit and loss account.

1.10 Long term investments are stated at cost and provision for diminution is made, if such diminution is other than temporary in nature. The diminution in value of investment made in units of SBI Mid Cap Fund (Growth Option) amounting to Rs.2 is considered temporary in nature and hence no provision is required .

1.11 Borrowing cost relating to (i) funds borrowed for acquisition/construction of qualifying assets are capitalized up to the date the assets are put to use, and (ii) funds borrowed for other purposes are charged to Profit and Loss Account.

1.12 Tax liability is estimated considering the provisions of the Income Tax Act , 1961. Deferred tax is recognized on timing difference , being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. On prudent basis, Deferred tax asset is recognized and carried forward only when there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.13 Contributions to Provident fund and Superannuation Fund, which are defined contribution schemes are made to a government administered Provident Fund and to recognized trust respectively and are charged to the Profit and Loss account as incurred. The company has no further obligations beyond its contributions to these funds.

Provision for gratuity, under a LIC administered fund, and leave encashment, which are in the nature of defined benefit plans, are provided based on actuarial valuation based on projected unit credit method, as at the balance sheet date.

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

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Mar 31, 2010

1.1 Fixed Assets are valued at cost less depreciation. 12 Depreciation has been calculated on straight line method at applicable rates prescribed in Schedule XIV of the Companies Act, 1956. 1.3 Investments are valued at cost. 1.4(a) Inventories of stores & spares and packing materials are valued at FIFO basis.

(b) Raw materials are valued at cost on FIFO basis.

(c) Finished goods are valued at lower of cost and net realisable value.

Cost includes cost of purchase, duties, taxes and all other costs incurred in bringing the inventories to their present location.

1.5 Sales exclusive of Excise Duty and net of dealers margin but inclusive of VAT are recognised as revenue on dispatches.

1.6 Rebate receivable from Government on sale of Single Super Phosphate Fertilizer is also recognised on accrual basis.

1.7 Transactions in foreign currencies are reflected at rates at which transactions are settled; assets and liabilities valued at cotitract/yearend rate and resultant loss or gain is accounted for in the profit and loss account

1.8 No borrowing costs have been capitalized during the year.

1.9 Long term investments are stated at cost and provision for diminution is made, if such diminution is other than temporary in nature. The diminution in value of investment made in SBI Mid Cap Rind (Growth Option) amounting to Rs.1444 is considered temporary in nature and hence no provision is required.

2. Sundry Debtors and advances (considered good) include certain overdue debts/ old advances aggregating to Rs.1485 (Previous Year Rs.1413) for which necessary steps are being taken for realisation and as such no provision there against is considered necessary in these accounts.

3. Balances of certain Sundry Debtors, Sundry Creditors, Loans and Advances and Other Liabilities are in process of confirmation/reconciliation. The management is of the opinion that adjustment if any arising out of such reconciliation would not be material.

4. In the opinion of the Board the Current Assets, Loans and advances appearing in the companys balance sheet as at the year end would have value on realization in the normal course of business at least equal to the respective amounts at which they are stated in the balance sheet.

5. Other income includes Rs.57 (Previous Year Rs. 1682), which represent net effect of some very old outstanding balances written off/back (net).

6. Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to micro, small and medium enterprises. The company is in the process of compiling relevant information from its suppliers about their coverage under the said Act, since the relevant information is not readily available, no disclosure has been made in these accounts.