Accounting Policies of Tirupati Starch & Chemicals Ltd. Company

Mar 31, 2025

2. MATERIAL ACCOUNTING POLICIES :

A. a) Statement of Compliance :

These financial statements of the company have been prepared in accordance with Indian Accounting Standards
(IND AS) notified under the companies (Indian Accounting Standard ) Rules 2015 as amended from time to time
and presentation requirements of Division II of schedule III to the Companies Act 2013 (Ind-AS compliant
Schedule III). These financials statements have been approved for issue by the Board of Directors at its meeting
held on May 23rd, 2025.

b) Basis of Preparation :

The financial statements have been prepared on the going concern basis athistorical cost convention on the
accrual basis except for assets and liabilities which have been measured as indicated below:

i. Certain financial assets and liabilities at fair value.

ii. Employee''s Defined Benefit Plan measured as per actuarial valuation.

Fair value measurements are categorised as below based on the degree to which the inputs to the fair value
measurements are observable and the significance of the inputs to the fair value measurement in its entirety:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the
Company can access at measurement date;

• Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the assets or
liabilities, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the valuation of assets or liabilities.

Above levels of fair value hierarchy are applied consistently and generally, there are no transfers between the
levels of the fair value hierarchy unless the circumstances change warranting such transfer.

c) Presentation of financial statements :

The Balance Sheet, the Statement of Profit and Loss and the Statement of Changes in Equity are prepared and
presented in the format prescribed in the Schedule III to the Companies Act, 2013 (the Act). The Statement of
Cash Flows has been prepared and presented in accordance with Ind AS 7 "Statement of Cash Flows". The
disclosures with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the
Schedule III to the Act, are presented by way of notes forming part of the financial statements along with the
other notes required to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 as amended.

Amounts in the financial statements are presented in Indian Rupee in Lakhs rounded off to two places as
permitted by Schedule III to the Act. Per share data are presented in Indian Rupee to two decimals places.

3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements in conformity with Ind AS requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as
at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.
Although these estimates are based upon management''s best knowledge of current events and actions, the difference
between actual results and estimates are recognized in the period in which the results are known / materialized.

Classification of Assets and Liabilities as Current and non-Current:

The Company presents assets and liabilities in the balance sheet based on current / non-current classification based on
operating cycle.

An asset is treated as current when it is:

a. Expected to be realized or intended to be sold or consumed in normal operating cycle;

b. Held primarily for the purpose of Trading.

c. Expected to be realized within twelve months after the reporting period,
or

d. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

A liability is current when:-

a. It is expected to be settled in normal operating cycle.

b. It is held primarily for the purpose of Trading.

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

d. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.

All other Liabilities are classified as non-Current.

Deferred Tax Assets and Deferred Tax Liabilities are classified as non-current Assets and Liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash
equivalents. The company has identified twelve months as its operating cycle.

3.1 PROPERTY, PLANT AND EQUIPMENT (PPE) :

(i) PPE is recognised 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. PPE is stated at original cost net of tax/duty credits
availed, if any, less accumulated depreciation and cumulative impairment, if any. Freehold land is carried of cost.
All directly attributable costs related to the acquisition of PPE and, borrowing costs in case of qualifying assets
are capitalised in accordance with the Company''s accounting policy.

(ii) 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 entity and the cost
can be measured reliably. In the carrying amount of an item of PPE, the cost of replacing the part of such an
item is recognized when that cost is incurred if the recognition criteria are met. The carrying amount of those
parts that are replaced is derecognized in accordance with the derecognition principles. All other repairs and
maintenance are charged to the statement of profit and loss during the reporting period in which they are
incurred.

(iii) 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.

(iv) Depreciation on property, plant and equipment is provided on prorate basis using straight line method. Depreciation
is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.Each part

of an item of Property, Plant & Equipment with a cost that is significant in relation to total cost of the Machine
is depreciated separately, if its useful life is different than the life of the Machine.

(v) The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year end and adjusted prospectively, if appropriate.

(vi) An item of property, plant and equipment and any significant part initially recognized is derecognized upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in the income statement when the asset is derecognized.

(vii) Spare parts procured along with the Plant & Machinery or subsequently which meet the recognition criteria are
capitalized and added in the carrying amount of such item. The carrying amount of those spare parts that are
replaced is derecognized when no future economic benefits are expected from their use or upon disposal. Other
machinery spares are treated as "stores & spares" forming part of the inventory.

DEPRECIATION :

Property, plant and equipment / intangible assets are depreciated / amortized over their estimated useful lives, which
are equal to the useful life prescribed under Schedule II to the Companies Act, 2013 after taking into account estimated
residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to
determine the amount of depreciation / amortization to be recorded during any reporting period. The useful lives and
residual values are based on the Company''s historical experience with similar assets and take into account anticipated
technological changes based on a technical evaluation by the management. The depreciation / amortization for future
periods is revised if there are Significant changes from previous estimates.

INTANGIBLE ASSETS :

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/ depletion and
impairment loss if any. The cost comprises of purchase price, borrowing costs and any cost directly attributable to
bringing the asset to its working condition for the intended use.

Expenditure incurred on acquisition of intangible assets which are not ready to use at the reporting date is disclosed
under "Intangible assets under development"

Amortization Method and Periods:

Amortization is charged on a straight- line basis over the estimated useful lives andthese intangible assets are assessed
for impairment whenever there is an indication that the intangible asset may be impaired. The estimated useful lives
and amortization method are reviewed at the end of each annual reporting period with the effect of any changes in the
estimate being accounted for a prospective basis.

Computer Software''s are amortized over an estimated useful life of 3 Years.

3.2 IMPAIRMENT OF ASSETS:

3.2.1 IMPAIRMENT OF NON FINANCIAL ASSETS :

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing for an asset is required, the Company estimates the
asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or Cash Generating Units
(CGU''s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.
When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal, recent market transactions are taken into account, if no
such transactions can be identified, an appropriate valuation model is used.

3.2.2 IMPAIRMENT OF FINANCIAL ASSETS :

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

3.3 BORROWING COST :

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalized as
part of the cost of such assets up to the assets are substantially ready for their intended use or sale.

The loan origination costs directly attributable to the acquisition of borrowings (e.g. loan processing fee, upfront fee)
are amortized on the basis of the effective interest rate (EIR) method over the term of the loan.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in the
statement of profit and loss in the period in which they are incurred.

3.4 FOREIGN EXCHANGE TRANSACTIONS AND FORWARD CONTRACTS:

Items included in the financial statements are measured using the currency of the primary economic environment in
which the entity operates (''the functional currency''). The financial statements are presented in Indian rupees (''INR''),
which is also the company''s Functional currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the company at their respective Functional currency spot
rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities Denominated in foreign currencies are translated at the functional Currency spot rates
of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognized in the Statement of profit
or loss with the exception of the following:-

Exchange difference on foreign currency borrowings included in the borrowing cost when they regarded as an adjustment
to interest costs on those foreign currency borrowings.

Exchange differences on gain or loss arising on translation of non-monetary items measured at fair value which is
treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e. translation difference
on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or loss
respectively)

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 the transaction.

3.5 EMPLOYEE BENEFITS :

3.5. A. Short term employee benefits

Liabilities for wages and Salaries, Annual Leave & Bonus etc. including non monetary benefits that are expected
to be settled wholly within twelve months after the end of the period in which the employees render the related
services are recognized in respect of employee service up to the end of the reporting period and are measured
at the amount expected to be paid when the liabilities are settled. The Liabilities are presented as current
employee benefit obligations in the Balance sheet.

3.5. B. Other Long Term employee Obligation benefit plans:

(a) Defined contribution plans
Provident and other funds

The company makes contributions, determined as a specified percentage of employee salaries, in respect of
qualifying employees towards provident fund and other funds which are defined contribution plans. The Company
has no obligations other than this to make the specified contributions.

(b) Defined benefit plans
Gratuity

The Company has a defined benefit gratuity plan. Every employee is entitled to gratuity as per the provisions of
the Payment of Gratuity Act, 1972. The scheme is funded and the scheme is managed by Life Insurance
Corporation of India (LIC).

Company has covered Gratuity Liability through ''GROUP GRATUITY POLICY issued by LIC of India. The
said policy covers the following:

1. Gratuity Payable to employee at the time of retirement from the funds accumulated in employees account
with the insurance company.

2. Eligible Gratuity payable to the employee at the time of resignation or retrenchment before retirement age
from the funds accumulated in the account with the Insurance Company.

3. Gratuity payable at the time of early death (i.e. before retirement), being an amount of Full Gratuity, whichis
payable on the day of retirement.

Expenses for defined benefit gratuity payment plans are calculated as at the balance sheet date by actuary in the
manner that distributes expenses over the employees working life. The amount of shortfall defined by the
Insurance Company of the Gratuity Liability at the end of the year is being paid by the Company and considered
asexpenditure at the end of the year. These commitments are valued at the present value of the expected future
payments, with consideration for calculated future salary increases, using discounted rate corresponding to the
interest rate estimated by the actuary with a remaining term i.e. almost equivalent to the average balance

working period of employees. The services cost and the net interest cost are charged to the statement of profit
and loss, Actuarial gain and losses arise due to re-measurement result of the actual expenses and assumed
parameters and changes in the assumption used for valuation are recognized in the Other Comprehensive
Income (OCI)

3.6 REVENUE RECOGNITION :

(i) Revenue from contracts with customers:

The Company Manufactures - Maize Starch and Starch Products.

Revenue has been recognized as & when all the performance obligations in the ordinary course of business are
satisfied. The consideration of goods expected from customer reflects the promised goods actually transferred
as per the normal terms and condition attached at the time of risk and rewards and customer obtains the control
over the goods has been transferred. An entity does not deals in the packaged or combined goods and contract
with customer need not raise any future obligation, an Entity deals only in a distinct goods and all the goods
promised in the contract are a single and separate performance obligation at the time when customer obtains the
control and possess all risk and rewards attached to the distinct goods has been transferred to the customer in an
actual sense.

At the inception Entity identifies and determines the distinct goods and fixed the consideration based on explicit
and a single performance obligation i.e. no future obligation remains to be performed. There is no variable
consideration and no any events occurred that cause consideration to be variable and hence no any question of
determination transaction cost.

Revenue recognized in the result shows the actual obligation performed and does not include such other activities
to satisfy future obligation unless a goods or is actually transferred to the customer.

An Entity does not involve in such contracts which identify the multiple performance obligations and therefore
customer has no options to acquire an additional goods embedded to the original and distinct goods and accordingly
management recognized the revenue based on the terms and conditions stipulated at the time of transfer the
distinct and promised goods which has been delivered to the customers.

An Entity does not enter in to a contract to install or maintenance or incentives or warranty or discount policy
and therefore no future obligation need to be performed to adjust the consideration received and there is no
created/occurred any deferred revenue.

So based on the single performance obligation there are in the contract, price consideration recognized in the
financial statement would not materially differ. If there is an uncertainty in recovery of the recognized revenue
and does not arise the cash flow from such contracts with customers in this case management shall expediently
justify their judgment, assumption and estimation taken while the standard set.

Other Income :

(ii) Export Benefits

The amount available towards Export Benefits under duty exemption or any other Scheme during the years has
been ascertained when the right of receive credit as per terms of the scheme is established in respect of export
made at fair value of consideration received or receivable.

(iii) Interest income from a financial asset is recognized using effective interest rate (EIR) method.

(iv) Insurance claims are accounted for on the basis of claim admitted / expected to be admitted to the extent that
there is no uncertainty in receiving the claims.

(v) Other items of income are accounted as and when the right to receive such income arises and it is probable that

the economic benefits will flow to the Company and the amount of income can be measured reliably.
Exceptional items

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding
of the performance of the Company is treated as an exceptional item and disclosed as such in the financial statements.

3.7 GOVERNMENT GRANTS AND SUBSIDIES :

Grants from the government are recognized 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 that compensate the Company for expenses incurred are recognized in the statement of profit and
loss, as income or deduction from the relevant expense, on a systematic basis in the periods in which the expenses is
recognized.

Government grants relating to the purchase of property, plant and equipment are recognized by deducting the same
from carrying value of the related asset the grant is then recognized in profit or loss over the useful life of the depreciable
asset by way of a reduced depreciation charge.

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Mar 31, 2024

2. MATERIAL ACCOUNTING POLICIES :

A. a) Statement of Compliance :

These financial statements of the company have been prepared in accordance with Indian Accounting Standards (IND AS) notified under the companies (Indian Accounting Standard ) Rules 2015 as amended from time to time and presentation requirements of Division II of schedule III to the Companies Act 2013 (Ind-AS compliant Schedule III). These financials statements have been approved for issue by the Board of Directors at its meeting held on May 28, 2024.

b) Basis of Preparation :

The financial statements have been prepared on the going concern basis athistorical cost convention on the accrual basis except for assets and liabilities which have been measured as indicated below:

i. Certain financial assets and liabilities at fair value.

ii. Employee''s Defined Benefit Plan measured as per actuarial valuation.

Fair value measurements are categorised as below based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at measurement date;

• Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the assets or liabilities, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the valuation of assets or liabilities.

Above levels of fair value hierarchy are applied consistently and generally, there are no transfers between the levels of the fair value hierarchy unless the circumstances change warranting such transfer.

c) Presentation of financial statements :

The Balance Sheet, the Statement of Profit and Loss and the Statement of Changes in Equity are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 (the Act). The Statement of Cash Flows has been prepared and presented in accordance with Ind AS 7 "Statement of Cash Flows". The disclosures with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the financial statements along with the other notes required to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended.

Amounts in the financial statements are presented in Indian Rupee in Lakhs rounded off to two places as permitted by Schedule III to the Act. Per share data are presented in Indian Rupee to two decimals places.

3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements in conformity with Ind AS requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, the difference between actual results and estimates are recognized in the period in which the results are known / materialized.

Classification of Assets and Liabilities as Current and non-Current:

The Company presents assets and liabilities in the balance sheet based on current / non-current classification based on operating cycle.

An asset is treated as current when it is:

a. Expected to be realized or intended to be sold or consumed in normal operating cycle;

b. Held primarily for the purpose of Trading.

c. Expected to be realized within twelve months after the reporting period, or

d. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:-

a. It is expected to be settled in normal operating cycle.

b. It is held primarily for the purpose of Trading.

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

d. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other Liabilities are classified as non-Current.

Deferred Tax Assets and Deferred Tax Liabilities are classified as non-current Assets and Liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The company has identified twelve months as its operating cycle.

3.1 PROPERTY, PLANT AND EQUIPMENT (PPE) :

(i) PPE is recognised 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. PPE is stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation and cumulative impairment, if any. Freehold land is carried of cost. All directly attributable costs related to the acquisition of PPE and, borrowing costs in case of qualifying assets are capitalised in accordance with the Company''s accounting policy.

(ii) 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 entity and the cost can be measured reliably. In the carrying amount of an item of PPE, the cost of replacing the part of such an item is recognized when that cost is incurred if the recognition criteria are met. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition principles. All other repairs and maintenance are charged to the statement of profit and loss during the reporting period in which they are incurred.

(iii) 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.

(iv) Depreciation on property, plant and equipment is provided on prorate basis using straight line method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.Each part

of an item of Property, Plant & Equipment with a cost that is significant in relation to total cost of the Machine is depreciated separately, if its useful life is different than the life of the Machine.

(v) The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

(vi) An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

(vii) Spare parts procured along with the Plant & Machinery or subsequently which meet the recognition criteria are capitalized and added in the carrying amount of such item. The carrying amount of those spare parts that are replaced is derecognized when no future economic benefits are expected from their use or upon disposal. Other machinery spares are treated as "stores & spares" forming part of the inventory.

DEPRECIATION :

Property, plant and equipment / intangible assets are depreciated / amortized over their estimated useful lives, which are equal to the useful life prescribed under Schedule II to the Companies Act, 2013 after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortization to be recorded during any reporting period. The useful lives and residual values are based on the Company''s historical experience with similar assets and take into account anticipated technological changes based on a technical evaluation by the management. The depreciation / amortization for future periods is revised if there are Significant changes from previous estimates.

INTANGIBLE ASSETS :

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/ depletion and impairment loss if any. The cost comprises of purchase price, borrowing costs and any cost directly attributable to bringing the asset to its working condition for the intended use.

Expenditure incurred on acquisition of intangible assets which are not ready to use at the reporting date is disclosed under "Intangible assets under development"

Amortization Method and Periods:

Amortization is charged on a straight- line basis over the estimated useful lives and these intangible assets are assessed for impairment whenever there is an indication that the intangible asset may be impaired. The estimated useful lives and amortization method are reviewed at the end of each annual reporting period with the effect of any changes in the estimate being accounted for a prospective basis.

Computer Software''s are amortized over an estimated useful life of 3 Years.

3.2 IMPAIRMENT OF ASSETS:

3.2.1 IMPAIRMENT OF NON FINANCIAL ASSETS :

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or Cash Generating Units (CGU''s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account, if no such transactions can be identified, an appropriate valuation model is used.

3.2.2 IMPAIRMENT OF FINANCIAL ASSETS :

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

3.3 BORROWING COST :

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets up to the assets are substantially ready for their intended use or sale.

The loan origination costs directly attributable to the acquisition of borrowings (e.g. loan processing fee, upfront fee) are amortized on the basis of the effective interest rate (EIR) method over the term of the loan.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in the statement of profit and loss in the period in which they are incurred.

3.4 FOREIGN EXCHANGE TRANSACTIONS AND FORWARD CONTRACTS:

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (''the functional currency''). The financial statements are presented in Indian rupees (''INR''), which is also the company''s Functional currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the company at their respective Functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities Denominated in foreign currencies are translated at the functional Currency spot rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognized in the Statement of profit or loss with the exception of the following:-

Exchange difference on foreign currency borrowings included in the borrowing cost when they regarded as an adjustment to interest costs on those foreign currency borrowings.

Exchange differences on gain or loss arising on translation of non-monetary items measured at fair value which is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e. translation difference on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or loss respectively)

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 the transaction.

3.5 EMPLOYEE BENEFITS :

3.5. A. Short term employee benefits

Liabilities for wages and Salaries, Annual Leave & Bonus etc. including non monetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related services are recognized in respect of employee service up to the end of the reporting period and are measured at the amount expected to be paid when the liabilities are settled. The Liabilities are presented as current employee benefit obligations in the Balance sheet.

3.5. B. Other Long Term employee Obligation benefit plans:

(a) Defined contribution plans Provident and other funds

The company makes contributions, determined as a specified percentage of employee salaries, inrespect of qualifying employees towards provident fund and other funds which aredefined contribution plans. The Company has no obligations other than this to make thespecified contributions.

(b) Defined benefit plans Gratuity

The Company has a defined benefit gratuity plan. Every employee is entitled to gratuity as per the provisions of the Payment of Gratuity Act, 1972. The scheme is funded and the scheme is managed by Life Insurance Corporation of India (LIC).

Company has covered Gratuity Liability through ''GROUP GRATUITY POLICY issued by LIC of India. The said policy covers the following:

1. Gratuity Payable to employee at the time of retirement from the funds accumulated in employees account with the insurance company.

2. Eligible Gratuity payable to the employee at the time of resignation or retrenchment before retirement age from the funds accumulated in the account with the Insurance Company.

3. Gratuity payable at the time of early death (i.e. before retirement), being an amount of Full Gratuity, which is payable on the day of retirement.

Expenses for defined benefit gratuity payment plans are calculated as at the balance sheet date by actuary in the manner that distributes expenses over the employees working life. The amount of shortfall defined by the Insurance Company of the Gratuity Liability at the end of the year is being paid by the Company and considered as expenditure at the end of the year. These commitments are valued at the present value of the expected future payments, with consideration for calculated future salary increases, using discounted rate corresponding to the interest rate estimated by the actuary with a remaining term i.e. almost equivalent to the average balance working period of employees. The services cost and the net interest cost are charged to the statement of profit and loss, Actuarial gain and losses arise due to re-measurement as result of the actual expenses and assumed parameters and changes in the assumption used for valuation are recognized in the Other Comprehensive Income (OCI)

.6 REVENUE RECOGNITION :

(i) (i) Revenue from contracts with customers:

The Company Manufactures - Maize Starch and Starch Products.

Revenue has been recognized as & when all the performance obligations in the ordinary course of business are satisfied. The consideration of goods expected from customer reflects the promised goods actually transferred as per the normal terms and condition attached at the time of risk and rewards and customer obtains the control over the goods has been transferred. An entity does not deals in the packaged or combined goods and contract with customer need not raise any future obligation, an Entity deals only in a distinct goods and all the goods promised in the contract are a single and separate performance obligation at the time when customer obtains the control and possess all risk and rewards attached to the distinct goods has been transferred to the customer in an actual sense.

At the inception Entity identifies and determines the distinct goods and fixed the consideration based on explicit and a single performance obligation i.e. no future obligation remains to be performed. There is no variable consideration and no any events occurred that cause consideration to be variable and hence no any question of determination transaction cost.

Revenue recognized in the result shows the actual obligation performed and does not include such other activities to satisfy future obligation unless a goods or is actually transferred to the customer.

An Entity does not involve in such contracts which identify the multiple performance obligations and therefore customer has no options to acquire an additional goods embedded to the original and distinct goods and accordingly management recognized the revenue based on the terms and conditions stipulated at the time of transfer the distinct and promised goods which has been delivered to the customers.

An Entity does not enter in to a contract to install or maintenance or incentives or warranty or discount policy and therefore no future obligation need to be performed to adjust the consideration received and there is no created/occurred any deferred revenue.

So based on the single performance obligation there are in the contract, price consideration recognized in the financial statement would not materially differ. If there is an uncertainty in recovery of the recognized revenue and does not arise the cash flow from such contracts with customers in this case management shall expediently justify their judgment, assumption and estimation taken while the standard set.

Other Income :

(ii) Export Benefits

The amount available towards Export Benefits under duty exemption or any other Scheme during the years has been ascertained when the right of receive credit as per terms of the scheme is established in respect of export made at fair value of consideration received or receivable.

(iii) Interest income from a financial asset is recognized using effective interest rate (EIR) method.

(iv) Insurance claims are accounted for on the basis of claim admitted / expected to be admitted to the extent that there is no uncertainty in receiving the claims.

(v) Other items of income are accounted as and when the right to receive such income arises and it is probable that

the economic benefits will flow to the Company and the amount of income can be measured reliably. Exceptional items

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the Company is treated as an exceptional item and disclosed as such in the financial statements.

3.7 GOVERNMENT GRANTS AND SUBSIDIES :

Grants from the government are recognized 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 that compensate the Company for expenses incurred are recognized in the statement of profit and loss, as income or deduction from the relevant expense, on a systematic basis in the periods in which the expenses is recognized.

Government grants relating to the purchase of property, plant and equipment are recognized by deducting the same from carrying value of the related asset the grant is then recognized in profit or loss over the useful life of the depreciable asset by way of a reduced depreciation charge.

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Mar 31, 2023

2. MATERIAL ACCOUNTING POLICIES :

A. a) Statement of Compliance :

These financial statements of the company have been prepared in accordance with Indian AccoraitdagdSt (IN D AS) notified under the companies (Indian Accounting Standard ) Rules 2015 as amended from time and presentation requirements of Division II of schedule III to the Companies Act 2013 (Ind-ASincompl Schedule III).

b) Basis of Preparation :

The financial statements have been prepared on the going concern basis athistorical cost couveitihen accrual basis except for assets and liabilities which have been measured as indicated below :

i. Certain financial assets and liabilities at fair value.

ii. Employee''s Defined Benefit Plan measured as per actuarial valuation.

c) Functional and Presentation Currency:

These financial statements of the Company are prepaid as perInd-AS financial statements. Campariy! f statements are presented in Indian Rupees (INR), which is also its functional currency analulfe tiiieev rounded to the nearest lakhs except as otherwise indicated.

d) Standards issued but not effective :

Recent accounting pronouncements: On March 3, 2023, the Ministry of CorporateAffairs (MCAffeds noti Companies (Indian Accounting Standards) Amendment Rules, 2Q22This notification has resulted endnamts in same existing accounting standards (Ind-AS) which shall be applicable to company from Apr23 .1 : 20

i. Ind AS D1 - First time adoption of Ind AS

ii. Ind AS IE - Share Based Payment

iii. Ind AS I3 - Business Combination

iv. Ind AS 07 - Financial Instruments Disclosure

v. Ind AS 09 - Financial Instrument

vi. Ind AS 15 - Revenue From Contracts with Customers

vii. Ind AS 1 - Presentation of Financial Statements

viii. Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

ix. Ind AS 12 - Income Tax

x. Ind AS 34 - Interim Financial Reporting.

Hence such amendment are not expected to have any significant impact on the Company''s finaneiialn^tat

for the financial year ended March 3} 2023.

B. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements in conformity with Ind AS requires management tima&te es and assumptions that affect the reported amount of assets and liabilities and disclosures crelattnggent liabilities as at the date of the financial statements and the reported amounts of revenue saensddeuxrpienng the reporting period. Although these estimates are based upon management''s best knowledge of curntntanvle actions, the difference between actual results and estimates are recognized in the period iheWhesahiltts are known / materialized.

Classification of Assets and Liabilities as Current and non-Current :

The Company presents assets and liabilities in the balance sheet based on current / non-cusifeiJltidias based on operating cycle.

An asset is treated as current when it is :

a. Expected to be realized or intended to be sold or consumed in normal operating cycle;

b. Held primarily for the purpose of Trading.

c. Expected to be realized within twelve months after the reporting period, or

d. Cash or cash equivalent unless restricted from being exchanged or used to settle a liabillhysfotwiflve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:-

a. It is expected to be settled in normal operating cycle.

b. It is held primarily for the purpose of Trading.

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

d. There is no unconditional right to defer the settlement of the liability for at least twelvemonths reporting period.

All other Liabilities are classified as non-Current.

Deferred Tax Assets and Deferred Tax Liabilities are classified as non-current Assets ansd Liabilitie The operating cycle is the time between the acquisition of assets for processing and theijoirealizaslii and cash equivalents. The company has identified twelve months as its operating cycle.

. 3.1 PROPERTY, PLANT AND EQUIPMENT (PPE) :

(i) Freehold land is carried of cost. All other item of Property, plant and equipment are statpdiett ofost recoverable taxes, trade discount and rebates less accumulated depreciation and impairment lossy., Such cost includes purchase price, borrowing cost and any cost directly attributable to bringing th etasise working condition for its intended use and which are not attributable to a particular assets! hdiscated between Plant and Machineries and Building in the ratio of investment.

(ii) Subsequent costs are included in the asset''s carrying amount or recognized as a separate assetpiaisite, only when it is probable that future economic benefits associated with the item will flow fiC:ythnd3tllIe cost can be measured reliably. In the carrying amount of an item of PPE, the cost of replacing £ hauphrano item is recognized when that cost is incurred if the recognition criteria are met. The carr^yiaof‘ aboae parts that are replaced is derecognized in accordance with the derecognition principles. Ahepjtirer and maintenance are charged to the statement of profit and loss during the reporting period in which the incur r ed.

(iii) Expenses incurred relating to project, net of income earned during the project development sOageo pits intended use, are considered as pre - operative expenses and disclosed under Capital Work - gnessPro

(iv) Depreciation on property, plant and equipment is providedon proratabasisusing straight line rEeepioeb iation is provided based on useful life of the assets as prescribed in Schedule II to the CompanieB .Acjthpart of an item of Property, Plant & Equipment with a cost that is significant in relation to dfctkhecMlachine is depreciated separately, if its useful life is different than the life of the Machine.

(v) The residual values, useful lives and methods of depreciation of property, plant and equipmeeviewedrat each financial year end and adjusted prospectively, if appropriate.

(vi) An item of property, plant and equipment and any significant part initially recognized is dera^ogiBciH disposal or when no future economic benefits are expected from its use or disposal. Any gainao^singson derecognition of the asset (calculated as the difference between the net disposal proceeds aanrtJ]agc amount of the asset) is included in the income statement when the asset is derecognized.

(vii) Spare parts procured along with the Plant & Machinery or subsequently which meet the recogjeitii^micei capitalized and added in the carrying amount of such item. The carrying amount of those spalrhapafrts replaced is derecognized when no future economic benefits are expected from their use or upoul . dOpier machinery spares are treated as "stores & spares" forming part of the inventory.

DEPRECIAITION :

Property, plant and equipment / intangible assets are depreciated / amortized over their estin ddras, which are equal to the useful life prescribed under Schedule II to the Companies Act, 20B after ttdlkingdliiat estimated residual value. Management reviews the estimated useful lives and residual values of the asalits iannnder to determine the amount of depreciation / amortization to be recorded during any reporting perioitfTlhlives and residual values are based on the Company''s historical experience with similar assets and takeounttoanticipated technological changes based on a technical evaluation by the management. The depreciation / artiomt for future periods is revised if there are Significant changes from previous estimates.

Amortization Method and Periods:

Amortization is charged on a straight- line basis over the estimated useful lives andtheseeintsangibhre assessed for impairment whenever there is an indication that the intangible asset may be impaired. Thed es^erfrul lives and amortization method are reviewed at the end of each annual reporting period with the effe(Cha£ges in the estimate being accounted for a prospective basis.

Computer Software''sareamortized over an estimated useful life of 3 Years.

3.2 IMPAIRMENT OF ASSETS:

3.2.1 IMPAIRMENT OF NON FINANCIAL ASSETS :

The Company assesses at each reporting date whether there is an indication that an asset m^yebb impa any indication exists, or when annual impairment testing for an asset is required, the Compartysethisn asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or CafeflmgGdm^ra (CGU''s) fair value less costs of disposal and its value in use. it is determined for an indivtdraaileBs the asset does not generate cash inflows that are largely independent of those from other asseps of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is aonpaifeedid and is written down to its recoverable amount.

in assessing value in use, the estimated future cash flows are discounted to their presentngi|lue-tBei discount rate that reflects current market assessments of the time value of money and thefiristcsisipec asset. in determining fair value less costs of disposal, recent market transactions are takenrintif aio such transactions can be identified, an appropriate valuation model is used.

3.2.2 IMPAIRMENT OF FINANCIAL ASSETS :

The impairment provisions for financial assets are based on assumptions about risk of defanifctJnldoash loss rates. The Company uses judgment in making these assumptions and selecting the inputs paifmbntn calculation, based on Company''s past history, existing market conditions as well as forward eokmgtes at the end of each reporting period.

3.3 BORROWING COST :

Borrowing costs directly attributable to the acquisition, construction or production of qualifyinga: capitalized as part of the cost of such assets upto the assets are substantially ready for their intended, use or sa

The loan origination costs directly attributable to the acquisition of borrowings (e.g. loaning oOes supfront fee) are amortized on the basis of the effective interest rate (EIR) method over the term of the loan.

Investment income earned on the temporary investment of specific borrowings pending their expemditualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing; eiosecsognized in the statement of profit and loss in the period in which they are incurred.

3.4 FOREIGN EXCHANGE TRANSACTIONS AND FORWARD CONTRACTS:

Items included in the financial statements are measured using the currency of the primary eIcdm

Transactions and balances

Transactions in foreign currencies are initially recorded by the company at their respectivellF(un•atency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities Denominated in foreign currencies are translated at the futmetBuna^l Spot rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognizedtieirmiiii Sof profit or loss with the exception of the following:-

Exchange difference on foreign currency borrowings included in the borrowing cost when they raegaidadjustment to interest costs on those foreign currency borrowings.

Exchange differences on gain or loss arising on translation of non-monetary items measuredahlef^ich is treated in line with the recognition of the gain or loss on the change in fair value of thetitam lotion difference on items whose fair value gain or loss is recognized in OCI or profit or loss are also recdOGiedrirprofit or loss respectively)

Conversion

F oreign currency monetary items are reported using the closing rate. N on-monetary items, wfricheAiin cerms of historical cost denominated in a foreign currency, are reported using the exchange ratetatofhteidatransaction.

3.5 EMPLOYEE BENEFITS :

3.5. A. Short term employee benefits

Liabilities for wages and Salaries, Annual Leave & Bonus etc. including non monetary benefits thpected to be settled wholly within twelve months after the end of the period in which the employeesheendlat ed services are recognized in respect of employee service up to the end of the reporting periodmnalsured at the amount expected to be paid when the liabilities are settled. The Liabilities are presenjtiErlen,t; employee benefit obligations in the Balance sheet.

3.5. B. Other Long Term employee Obligation benefit plans:

(a) Defined contribution plans Provident and other funds

The Company makes contributions, determined as a specified percentage of employee salaries, inrofpec qualifying employees towards provident fund and other funds which are defined contribution phGonFpany has no obligations other than this to make the specified contributions.

(b) Defined benefit plans Gratuity

The Company has a defined benefit gratuity plan. Every employee is entitled to gratuity aspipevi stons of the Payment of Gratuity Act, 972. The scheme is funded and the schemanaged by Life Insurance Corporation of India (LIC).

(a) Short Term:

Short Term employee benefits are recognizedasanexpense at the undiscounted amount expected tcb (beepai the period of services rendered by the employees to the Company.

(b) Long Term :

i. Defined Contribution Plans

The Company pays pre-defined amounts to separate funds and does not have any legali cn formal obligation to pay additional sums. These comprise of contributions to Employees Provident F uStjl)mp^ny payments to the defined contribution plans are reported as expenses during the period in whinployiEse perform the services that the payment covers.

ii. Defined Benefit Plans

Expenses for defined benefit gratuity payment plans are calculated as at the balance sheet dutbbs sac appointed by the LIC Ltd. in the manner that distributes expenses over theemployees working afiouTth of shortfall defined by the Insurance Company of theGratuity Liability at the end of the ngaraiii bbeithe Company and considered as expenditure at the end of the year. These commitments are valued asehhe pr value of the expectedfuture payments, with consideration for calculated future salary incrngsdisciffiuinted rate corresponding to the interest rate estimated by the actuary with a remainingtermi.e.avalbrtt equthe average balance working period of employees. The services cost and the net interest cost are tohdihged statement of profit and loss, Actuarial gain and losses arise due to re-measurementas resroitiaf expenses and assumed parameters and changes in the assumption used for valuation are recognized in the Ot Comprehensive Income (OCI).

(c) Other Employee Benefit

Company has covered Gratuity Liability through ''GROUP GRATUITY POLICY issued by LIC of India said policy covers the following:

1. Gratuity Payable to employee at the time of retirement from the funds accumulated in employnes accc with the insurance company.

2. Eligible Gratuity payable to the employee at the time of resignation or retrenchment beforeitrslgseme from the funds accumulated in the account with the Insurance Company.

3. Gratuity payable at the time of early death (i.e. before retirement), being an amount of Fty whriahriis payable on the day of retirement.

3.6 REVENUE RECOGNITION :

(i) (i) Revenue from contracts with customers:

The Company Manufactures - Maize Starch and Starch Products.

Revenue has been recognized as & when all the performance obligations in the ordinary coursenf sbusie satisfied. The consideration of goods expected from customer reflects the promised goods acanaferrEd as per the normal terms and condition attached at the time of risk and rewards and customeheobtatrsl over the goods has been transferred. An entity does not deals in the packaged or combined goodsitandt with customer need not raise any future obligation, an Entity deals only in a distinct goodsthn cgca:^tls promised in the contract are a single and separate performance obligation at the time when

At the inception Entity identifies and determines the distinct goods and fixed the consideration baslicit and a single performance obligation i.e. no future obligation remains to be performed. Therearsabls v consideration and no any events occurred that cause consideration to be variable and hence no:aaliionqnf determination transaction cost.

Revenue recognized in the result shows the actual obligation performed and does not include suctetithties to satisfy future obligation unless a goods or is actually transferred to the customer.

An Entity does not involve in such contracts which identify the multiple performance obligat khar eaffot e customer has no options to acquire an additional goods embedded to the original and distinct god>asca)rdingly management recognized the revenue based on the terms and conditions stipulated at the time sE thansf distinct and promised goods which has been delivered to the customers.

An Entity doss not enter in to a contract to install or maintenance or incentives or wancajnlii^t oroldiy and therefore no future obligation need to be performed to adjust the consideration receivecTetrid ths

created/occurred any deferred revenue.

So based on the single performance obligation there are in the contract, price consideratioffiedeCnghlhe financial statement would not materially differ. If there is an uncertainty in recovery ofiizad revonue and does not arise the cash flow from such contracts with customers in this case managemeipfedihiailyex justify their judgment, assumption and estimation taken while the standard set.

(ii) Export Benefits

The amount available towards Export Benefits under duty exemption or any other Scheme duringsthasyea been ascertained when the right of receive credit as per terms of the scheme is established inf raesprt made at fair value of consideration received or receivable.

(iii) Interest income from a financial asset is recognized using effective interest rate (EIR) method.

(iv) Insurance claims are accounted for on the basis of claim admitted / expected to be admittecXtentheiiat there is no uncertainty in receiving the claims.

3.7 GOVERNMENT GRANTS AND SUBSIDIES :

Grants from the government are recognized at their fair value where there is a reasonabletlisitulirancgr ant will be received and the Company will comply with all attached conditions.

Government grants that compensate the Company for expenses incurred are recognized in the sftpimeilt and loss, as income or deduction from the relevant expense, on a systematic basis in the periodshinhwhicpenses is r ecognized.

Government grants relating to the purchase of property, plant and equipment are recognized byLgieduclsame from carrying value of the related asset the grant is then recognized in profit or loss OValrlithaofstihe depreciable asset by way of a reduced depreciation charge.

in the normal operating cycle of the business, if longer), they are classified as current aBSvaitsse athnon-current assets.

Trade receivables are measured at their transaction price unless it contains a significant component in accordance withInd-AS 15or pricing adjustments embedded in the contract.

Loss allowance for expected life time credit loss is recognized on initial recognition.

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Mar 31, 2015

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements of the Company have been prepared the under historical cost convention on accrual basis in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under the Companies (Indian Accounting Standards) Rules, 2015 and the relevant provisions of the Companies Act, 2013. The accounting policies have been consistently applied by the company unless otherwise stated.

(b) USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, the difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

(c) FIXED ASSETS :

All Tangible Fixed Assets including of its expansion project are stated at their original cost less depreciation (Net of Modat/Cenvat, VAT and Service Tax). The Preoperative and Project expenses including borrowing cost, installation cost and any cost directly attributable to bringing the assets to its working condition for its intended use and which are not attributable to a particular assets have been allocated between Plant and Machineries and Building in the ratio of investment. Company has identified that there is no material impairment of assets and as such no provision is made as per AS-28 issued by Institute of Chartered Accountants of India.

(d) INVESTMENT :

The Long-term investments are carried individually at cost less provision for diminution, other than temporary, in the value of investment whereas the current investments are carried individually, at lower of cost and fair value. The cost of investments includes acquisition charges such as brokerage, fees and duties.

(e) Foreign Currency Loans availed for acquiring fixed assets had been translated at the exchange rate prevailing at the end of the year. The exchange difference on conversion was adjusted to cost of fixed assets.

(f) DEPRECIAITION :

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the straight line method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 and on addition/deletion during the year on pro-rata quarterly basis including the quarter of addition/deletion in accordance with the provision of Schedule II of the Act. In case of fixed assets which have completed their useful life as on 1st April 2014, the carrying value (Net of residual value) amounting to Rs.8,58,928.96 (Net of deferred tax Rs.4,42,271.00) as a transitional provision has been recognized in the retained earning.

i) Further in case of other assets acquired prior to 1st April, 2014 the carrying value of assets (Net of residual values) is depreciated over the remaining useful life as determined effecting from 1st April 2014.

ii) Depreciation for the year would have been lower by Rs.1,25,950.78 had the company continued with the previous assessment of useful life of such assets.

(g) BORROWING COSTS

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit and Loss Statement in the period in which they are incurred.

(h) REVENUE RECOGNITION

Revenue from sale of goods is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, excise duty and sales during trial run period net of trade discounts. Revenue from sale of services, interest and other income are recognized on accrual basis but the dividend, government grants/subsidies (Including Capital and Revenue) is recognized in the year of receipt.

(i) INVENTORIES :

The Inventories are valued as under :

(i) Stores & Spares (at cost on FIFO basis) : It includes Coal, Sulpher, Lime, Alum, Salt, Furnace Oil, Activated Carbon, Enzymes and Packing Materials and other stores items.

(ii) Raw Material-Maize (At cost on FIFO Basis).

(iii) Stock in Process (At cost)

(a) Quantity and value of Stock in Process of Raw Starch is not ascertainable on regular basis due to constant change in its contents, which is complex and technical in nature, therefore, at the year end on actual & technical basis quantity and value was ascertained.

(b) Quantity of stock in process of Dextrose Plant is ascertained on the basis of daily records maintained by the company and value is ascertained on the basis of actual & technical valuation.

(iv) Finished Goods (At cost or market value whichever is lower) excluding DAH & DMH.

(v) By-products and DAH & DMH (At realisable value).

(vi) The Stock on Consignment lying with other parties duly acknowledged by the custodians are included in the inventories at Market value including Excise Duty paid thereon. The Closing Stock is ascertained on the basis of records available with the Company and the sale will be recognized only after receipt of Statement of Sales if any.

(vii) The sale on consignment basis is treated as sales on receipt of sales advice from the consignee.

(viii) The consignment sale is accounted for on net of expenses basis but excise, insurance and commission, freight & other expenses related to consignment are included in consignment sales separately amounting to Rs.70,25,782/- (74,98,406/-).

(j) Certain directly attributable pre-operative expenses during construction period for expansion are included under Capital work in progress and have been capitalized at the commencement of production and when the assets were put in use and in case of other expenses 33% (12.5%) of employee benefit expenses and 30% (10%) of administrative expenses and 25% of power and fuel expenses during the trial run and implementation of the project during the year have been allocated to preoperative and project expenses account for expansion and have been allocated to Fixed Assets.

(k) CENVAT CREDIT :

a. Cenvat Credit on Capital Goods has been treated as Cenvat Credit receivable by reducing the cost of fixed assets and balance if any, is included in other advances recoverable in cash or in kind or for value to be received.

b. For claim of CENVAT Credit on Capital Goods and inputs the classification between Capital Goods and inputs are made on the basis of Excise records.

c. Modvat/Centvat Credit on Purchase of raw & other material is reduced from the cost of such materials purchased at the time of purchase itself in excise records and the same is accounted for at year end in the accounts.

d. Credit for Service Tax on services is availed by reducing the cost of respective services.

(l) Interdivisional transfer is not treated as sales and Raw Material Consumption in view of announcement made by the Institute of Chartered Accountants of India on Accounting Standard (AS) 9. It is not affecting the Profit/Loss of the Company.

(m) EMPLOYEE BENEFITS:

The Company has taken a Group Gratuity Policy for providing gratuity benefits under Group Gratuity Scheme for Life Insurance Corporation of India (LIC) and the premium paid to the LIC is charged to Profit & Loss A/c. The payment is made as per computation made by LIC therefore no note is taken of the difference in the amount of actuarial liability and the balance in the fund with LIC.

The company is in process to implement it in terms of Revised AS-15 issued by the Institute of Chartered Accountants of India as regards the other employee benefit and presently recognizing the same on the actual payment basis and charged to Profit and Loss Account in the year it has been incurred.

(n) EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss after tax attributable to equity shareholders, including deferred tax provision, by the weighted average number of equity shares outstanding during the year and has been computed in accordance with Accounting Standard 20 issued by the Institute of Chartered Accountants of India.

(o) TAXATION:

Tax expenses comprises of current tax & deferred tax. Current tax is determined as per the provisions of the Income tax Act, 1961 in respect of Taxable Income for the year. Deferred Tax Liability is computed as per Accounting Standard [AS-22]. Deferred Tax Assets and Deferred Tax Liability are recognized for all timing differences subject to consideration of prudence, applying the tax rates that have been substantively enacted on closing date.

Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountant of India.

(p) IMPAIRMENT OF ASSETS:

All the fixed assets including intangible assets, if any, are assessed for any indication of impairment at the end financial year. On such indication, the impairment (being the excess of carrying value over the asset) is charged to the Profit and Loss account in the respective financial year. Recoverable amount is higher of the net selling price of an asset and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

(q) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

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

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Mar 31, 2014

(a) FIXED ASSETS:

All Tangible Fixed Assets are staged at their original cost less depreciation (Net of Medvat VA1 and Service Tax). Preoperation expanses are capitalised. Company has identfied that there is no material impairment of assets and as such no provison is mace as per AS-28 issued by Institute of Chartered Accountants of India The Company is in process of sot of its expansion project and the expenses related thereto have been kept as capital work in progress & No depreciation has been charged thereon

(b) INVESTMENT

Investments are carried at cost

(C) Foreign Currency loans evailed for acquiring fixed assets had beer translated at the exchange rate prevailing at the end of the year The exchange difference on conversion was adjusted to cost of fixed assets

(1) DEPRECIAITICN

Depreciation has beer provided an straight line method el the rotes specified in Schedule XIV of the Companies Act. 1656 so amended on prorata basis.

(e) INVENTORIES

The Inventories are valued as under

(i) Stores & Spares (at cost on FIFO basis)

It includes Coal. Sulpher, Lime Alum Sail. Funacs Oil. Activated Carbon, Enzymes and Packing Materials and other stores items

(ii) Raw Material-Maize At cos: on MFO Baser

(iII) Stock in Process (At cost)

(a) Quantity and value of Stock in Process uf Raw Starch is not ascerainable on regular basis due to constant change in its contents which is complex technical in nature, there are at the year end on actual & technical basis quantity and value was ascertained

(bi Quantity of stock In process of Dextrose? Plant are ascertained on the basis of daily records maintained by the company and value is ascertained on the basis of actual & technics vauation

(iv) Finished Goods (At cost or market value whichever is lower) excluding DAH & DMH,

(v) By-products and DAH & DMH (At -realisable value)

(vi) The-Stock on Consignment lying with other parity duly acknowledged by the custodians are included in the riventories at Market value including Excise Duty pad thereon The Cosing Stock is ascertained on the basis of records available with the Company and the sale will be recognized only after receipt of Statement of Sales if any

(vi) The sale or Consignnnent basis are treated as Sales on receipt of sales Advice from He consignee

(viii) The Consignment sale is accounted for on net of expenses basis but excise, insurance and commission, freight & othe- expenses related to consignment are included in consignment sales separately amounting to Rs. 74,98 406/- 63.31 ,616,r ).

(f) Certain directly attributable pre-operative expenses curing construction period for expansion are included under Capital work in progress and in case of other expenses 12.5% (16%) of employee benefit expenses and 10% (10%) of administrative expenses have been allocated to preoperative and project expenses account for expans on anc also included under Capital work in progress one' these exponses will be allocated to Fixed Assets when the same are ready for intended use

(g) The Preliminary and Public Issue Expenses are written off equaly ever a period of 1C years from the year of commencement of production at Dextrose Plant The expenses not related to public issue bad been transferred to Deferred Revenue Expenditure and had been written off equally over a period of 5 years from the year of commencement of production at Dextrose Plant.

(h) Cenvat Credit:

(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit Receivable by reducing the cos: of fixed assets aid balance if any s included in other advances recoverable in cash or in kind or for value to be received

(ii) For claim of CENVAT Credit on Capital Gooes and inputs the classification between Capital Goods and inputs are made on the basis of Excise records

(iii) Modval Credit on Purchase of raw & other materials is reduced from the cost of such materials purchased at :he time of purchase itself in excise records and the same is accounted for at year end ir the accounts

(iv) Credit lor Service Tax on Services are availed by reducing the Cost of respective services.

(i) Interdivisional transfer is no! treated as Sales and Raw Material Consumption in view of announcement made by the institute of Chartered Accountants of India on Accounting Standard (AS) G. It is not affecting the Profit/loss of the company,

(j) No provision has been made towards iiabibility for leave encashment benefits. The company is in process to implement i: in terms of Revised AS 15 issued by the Institute of Chartered Accountants of India The amount is not ascertainable as or Balance Sheet date and further the company is in process of implemention,

(k) The Company has taken a Group Gratuity Policy for providing gratuity benefits unde" Group Gratuity Scheme for Life insurance Corporation of India (LJC) and the premium paid to the LIC is charged to Profit & loss A/c. The payment is made as per compation made by LIC therefore no note is taken of the difference in the amount of actuarial liablily and the balance in the fund with -IC The same is subject to approval of Scheme by Commissoner of Income Tax.

The Company had opted for Group Superannuation Scheme of LIC of India for its Directors and the contribution paid to LlC of India was charged to the Statement of Profit & Loss. The same was also subject to approva of Scheme by Commissioner of income Tax During the year the company has made a payment of Rs. 36.00,000/- towards contribution tc LIC GGCA Scheme. During the year, alI the whole time directors had decided not to take remuneration w.e.f November 2013 hence there after they are continuing as the Director's and they have withdrawn the amount payable to them under the Lic GGCA Scheme,

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Mar 31, 2013

(a) FIXED ASSETS :

All Tangible Fixed Assets are stated at their original cost less depreciation (Net of Modvat VAT and Service Tax). Preoperation expenses are capitalised. Company has identified that there is no material impairment of assets and as such no provision is made as per AS-28 issued by Institute of Chartered Accountants of India. The Company is in process of set of its expansion project and the expenses related thereto have been kept as capital work in progress & No depreciation has been charged thereon.

(b) INVESTMENT : Investments are carried at cost.

(c) Foreign Currency Loans availed for acquiring fixed assets had been translated at the exchange rate prevailing at the end of the year. The exchange difference on conversion was adjusted to cost of fixed assets.

(d) DEPRECIAITION :

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

(e) INVENTORIES :

The Inventories are valued as under :

(i) Stores & Spares (at cost on FIFO basis) : It includes Coal, Sulpher, Lime, Alum, Salt, Furnace Oil, Activated Carbon, Enzymes and Packing Materials and other stores items.

(ii) Raw Material-Maize (At cost on FIFO Basis).

(iii) Stock in Process (At cost)

(a) Quantity and value of Stock in Process of Raw Starch is not ascertainable on regular basis due to constant change in its contents, which is complex technical in nature, therefore, at the year end on actual & technical basis quantity and value was ascertained.

(b) Quantity of stock in process of Dextrose Plant are ascertained on the basis of daily records maintained by the company and value is ascertained on the basis of actual & technical valuation.

(iv) Finished Goods (At cost or market value whichever is lower) excluding DAH & DMH.

(v) By-products and DAH & DMH (At realisable value).

(vi) The Stock on Consignment lying with other parties duly acknowledged by the custodians are included in the inventories at Market value including Excise Duty paid thereon. The Closing Stock is ascertained on the basis of records available with the Company and the sale will be recognized only after receipt of Statement of Sales if any.

(vii) The sale on Consignment basis are treated as Sales on receipt of Sales Advice from the consignee.

(viii) The Consignment sale is accounted for on net of expenses basis but excise, insurance and commission, freight & other expenses related to consignment are included in consignment sales separately amounting to Rs. 63,31,916/- (71,32,665/-).

(f) 20% of the preoperative expenses incurred till the commencement of production had been treated as Deferred Revenue Expenditure and the same are written off equally over a period of 5 years from the year of commencement of production at Dextrose plant.

(g) The Preliminary and Public Issue Expenses are written off equally over a period of 10 years from the year of commencement of production at Dextrose Plant. The expenses not related to public issue had been transferred to Deferred Revenue Expenditure and had been written off equally over a period of 5 years from the year of commencement of production at Dextrose Plant.

(h) Cenvat Credit :

(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit Receivable by reducing the cost of fixed assets and balance if any is included in other advances recoverable in cash or in kind or for value to be received.

(ii) For claim of CENVAT Credit on Capital Goods and inputs the classification between Capital Goods and inputs are made on the basis of Excise records.

(iii) Modvat Credit on Purchase of raw & other material is reduced from the cost of such materials purchased at the time of purchase itself in excise records and the same accounted for at year end in the accounts.

(iv) Credit for Service Tax on Services are availed by reducing the Cost of respective services.

(i) Interdivisional transfer is not treated as Sales and Raw Material Consumption in view of announcement made by the Institute of Chartered Accountants of India on Accounting Standard (AS) 9. It is not affecting the Profit/loss of the company.

(j) No provision has been made towards liability for leave encashment benefits. The company is in process to implement it in terms of Revised AS-15 issued by the Institute of Chartered Accountants of India. The amount is not ascertainable as on Balance Sheet date and further the company is in process of implementation.

(k) The Company has taken a Group Gratuity Policy for providing gratuity benefits under Group Gratuity Scheme for Life Insurance Corporation of India (LIC) and the premium paid to the LIC is charged to Profit & Loss A/c. The payment is made as per computation made by LIC therefore no note is taken of the difference in the amount of actuarial liability and the balance in the fund with LIC. The same is subject to approval of Scheme by Commissioner of Income Tax.

The Company had opted for Group Supreannuation Scheme of LIC of India for its Directors and the contribution paid to LIC of India was charged to the Statement of Profit & Loss. The same was also subject to approval of Scheme by Commissioner of Income Tax. During the year the company has made a payment of Rs.Nil (Nil).

---

Mar 31, 2012

(a) FIXED ASSETS:

All Tangible Fixed Assets are stated at their original cost less depreciation (Net of Modvat VAT and Service Tax). Preoperation expenses are capitalised. Company has identified that there is no material impairment of assets and as such no provision is made as per AS-28 issued by Institute of Chartered Accountants of India. The Company is in process of set of its expansion project and the expenses related theretohave been kept as capital work in progress & no depreciation has been charged thereon.

(b) INVESTMENT:

Investments are carried at cost.

(c) Foreign Currency Loans availed for acquiring fixed assets had been translated at the exchange rate prevailing at the end of the year. The exchange difference on conversion was adjusted to cost of fixed assets.

(d) DEPRECIATION:

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

(e) INVENTORIES:

The Inventories are valued as under:

(i) Stores & Spares (at cost on FIFO basis): It includes Coal, Sulpher, Lime, Alum, Salt, Furnace Oil, Activated Carbon, Enzymes and Packing Materials and other stores items.

(ii) Raw Material-Maize (At cost on FIFO Basis).

(iii) Stock in Process (At cost)

(a) Quantity and value of Stock in Process of Raw Starch is not ascertainable on regular basis due to constant change in its contents, which is complex technical in nature, therefore, at the year end on actual & technical basis quantity and value was ascertained.

(b) Quantity of stock in process of Dextrose Plant are ascertained on the basis of daily records maintained by the company and value is ascertained on the basis of actual & technical valuation.

(iv) Finished Goods (At cost or market value whichever is lower) excluding DAH & DMH.

(v) By-products and DAH & DMH (At realisable value).

(vi) The Stock on Consignment lying with other parties duly acknowledged by the custodians are included in the inventories at Market value including Excise Duty paid thereon. The Closing Stock is ascertained on the basis of records available with the Company and the sale will be recognized only after receipt of Statement of Sales if any.

(vii) The sale on Consignment basis are treated as Sales on receipt of Sales Advice from the consignee.

(viii) The Consignment sale is accounted for on net of expenses basis but excise, insurance and commission, freight & other expenses related to consignment are included in consignment sales separately amounting to Rs.71,32,665/-. (30,69,301/-).

(f) 20% of the preoperative expenses incurred till the commencement of production had been treated as Deferred Revenue Expenditure and the same are written off equally over a period of 5 years from the year of commencement of production at Dextrose plant.

(g) The Preliminary and Public Issue Expenses are written off equally over a period of 10 years from the year of commence- ment of production at Dextrose Plant. The expenses not related to public issue had been transferred to Deferred Revenue Expenditure and had been written off equally over a period of 5 years from the year of commencement of production at Dextrose Plant.

(h) Cenvat Credit:

(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit Receivable by reducing the cost of fixed assets and balance if any is included in other advances recoverable in cash or in kind or for value to be received.

(ii) For claim of CENVAT Credit on Capital Goods and inputs the classification between Capital Goods and inputs are made on the basis of Excise records.

(iii) Modvat Credit on Purchase of raw & other material is reduced from the cost of such materials purchased at the time of purchase itself in excise records and the same accounted for at year end in the accounts.

(iv) Credit for Service Tax on Services are availed by reducing the Cost of respective services.

(i) Interdivisional transfer is not treated as Sales and Raw Material Consumption in view of announcement made by the Institute of Chartered Accountants of India on Accounting Standard (AS) 9. It is not affecting the Profit/loss of the company.

(i) No provision has been made towards liability for leave encashment benefits. The company is in process to implement it in terms of Revised AS-15 issued by the Institute of Chartered Accountants of India. The amount is not ascertainable as on Balance Sheet date and further the company is in process of implementation.

(k) The Company has taken a Group Gratuity Policy for providing gratuity benefits under Group Gratuity Scheme from Life Insurance Corporation of India (LIC) and the premium paid to the LIC is charged to Profit & Loss A/c. The payment is made as per computation made by LIC therefore no note is taken of the difference in the amount of actuarial liability and the balance in the fund with LIC. The same is subject to approval of Scheme by Commissioner of Income Tax.

The Company had opted for Group Supreannuation Scheme of LIC of India for its Directors and the contribution paid to LIC of India was charged to Profit & Loss Account. The same was also subject to approval of Scheme by Commissioner of Income Tax. During the year the company has made a payment of Rs. Nil (6,37,200/-).

---

Mar 31, 2011

(a) FIXED ASSETS:

All Tangible Fixed Assets are stated at their original cost less depreciation (Net of Modvat VAT and Service Tax). Preparation expenses are capitalised. Company has identified that there is no material impairment of assets and as such no provision is made as per AS-28 issued by Institute of Chartered Accountants of India.

(b) INVESTMENT:

Investments are carried at cost.

(c) Foreign Currency Loans availed for acquiring fixed assets had been translated at the exchange rate prevailing at the end of the year. The exchange difference on conversion was adjusted to cost of fixed assets.

(d) DEPRECIATION:

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

(e) INVENTORIES:

The Inventories are valued as under:

(i) Stores & Spares (at cost oh FIFO basis) : It includes Coal, Sulpher, Lime, Alum, Salt, Furnace Oil, Activated Carbon, Enzymes and Packing Materials and other stores items.

(ii) Raw Material-Maize (At cost on FIFO Basis).

(iii) Stock in Process (At cost)

(a) Quantity and value of Stock in Process of Raw Starch is not ascertainable on regular basis due to constant change in its contents, which is complex technical in nature, therefore, at the year end on actual & technical basis quantity and value was ascertained.

(b) Quantity of stock in process of Dextrose Plant are ascertained on the basis of daily records maintained by the company and value is ascertained on the basis of actual & technical valuation.

(iv) Finished Goods (At cost or market value whichever is lower) excluding DAH & DMH.

(v) By-products and DAH & DMH (At realisable value).

(vi) The Stock on Consignment lying with other parties duly acknowledged by the custodians are included in the inventories at Market value including Excise Duty paid thereon. The Closing Stock is ascertained on the basis of records available with the Company and the sale will be recognized only after receipt of Statement of Sales if any.

(vii) The sale on Consignment basis are treated as Sales on receipt of Sales Advice from the consignee.

(viii) The Consignment sale is accounted for on net of expenses basis but excise, insurance and commission, freight & other expenses related to consignment are included in consignment sales separately amounting to Rs.30,69,301/-. (33,67,782/-).

(f) 20% of the preoperative expenses incurred till the commencement of production had been treated as Deferred Revenue Expenditure and the same are written off equally over a period of 5 years from the year of commencement of production at Dextrose plant.

(g) The Preliminary and Public Issue Expenses are written off equally over a period of 10 years from the year of commence- ment of production at Dextrose Plant. The expenses not related to public issue had been transferred to Deferred Revenue Expenditure and had been written off equally over a period of 5 years from the year of commencement of production at Dextrose Plant.

(h) Cenvat Credit:

(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit Receivable by reducing the cost of fixed assets and balance if any is included in other advances recoverable in cash or in kind or for value to be received.

(ii) For claim of CENVAT Credit on Capital Goods and inputs the classification between Capital Goods and inputs are made on the basis of Excise records.

(iii) Modvat Credit on Purchase of raw & other material is reduced from the cost of such materials purchased at the time of purchase itself in excise records and the same accounted for at year end in the accounts.

(iv) Credit for Service Tax on Services are availed by reducing the Cost of respective services.

(i) Interdivisional transfer is not treated as Sales and Raw Material Consumption in view of announcement made by the Institute of Chartered Accountants of India on Accounting Standard (AS) 9. It is not affecting the Profit/loss of the company.

(j) No provision has been made towards liability for leave encashment benefits. The company is in process to implement it in terms of Revised AS-15 issued by the Institute of Chartered Accountants of India. The amount is not ascertainable as on Balance Sheet date and further the company is in process of implementation.

(k) The Company has taken a Group Gratuity Policy for providing gratuity benefits under Group Gratuity Scheme from Life Insurance Corporation of India (LIC) and the premium paid to the LIC is charged to Profit & Loss A/c. The payment is made as per computation made by LIC therefore no note is taken of the difference in the amount of actuarial liability and the balance in the fund with LIC. The same is subject to approval of Scheme by Commissioner of Income Tax.

The Company had opted for Group Superannuation Scheme of LIC of India for its Directors and the contribution paid to LIC of India was charged to Profit & Loss Account. The same was also subject to approval of Scheme by Commissioner of Income Tax. During the year the company has made a payment of Rs. 6,37,200/-.

---

Mar 31, 2010

(a) FIXED ASSETS:

All Tangible Fixed Assets are stated at their original cost less depreciation (Net of Modvat VAT and Service Tax). Preoperation expenses are capitalised. Company has identified that there is no material impairment of assets and as such no provision is made as per AS-28 issued by Institute of Chartered Accountants of India.

(b) INVESTMENT: Investments are carried at cost.

(c) Foreign Currency Loans availed for acquiring fixed assets had been translated at the exchange rate prevailing at the end of the year. The exchange difference on conversion was adjusted to cost of fixed assets.

(d) DEPRECIATION:

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

(e) INVENTORIES:

The Inventories are valued as under :

(i) Stores & Spares (at cost on FIFO basis): Valuation on should be with Freight (Coal & Maize) It includes Coal, Sulpher, Lime, Alum, Salt, Furnace Oil, Activated Carbon, Enzymes and Packing Materials and other stores items.

(ii) Raw Material-Maize (At cost on FIFO Basis).

(iii) Stock in Process (At cost)

(a) Quantity and value of Stock in Process of Raw Starch is not ascertainable on regular basis due to constant change in its contents, which is complex technical in nature, therefore, at the year end on actual & technical basis quantity and value was ascertained.

(b) Quantity of stock in process of Dextrose Plant are ascertained on the basis of daily records maintained by the company and value is ascertained on the basis of actual & technical valuation.

(iv) Finished Goods (At cost or market value whichever is lower) excluding DAH & DMH.

(v) By-products and DAH & DMH (At realisable value).

(vi) The Stock on Consignment lying with other parties duly acknowledged by the custodians are included in the inventories at Market value including Excise Duty paid thereon. The Closing Stock is ascertained on the basis of records available with the Company and the sale will be recognized only after receipt of Statement of Sales if any.

(vii) The sale on Consignment basis are treated as Sales on receipt of Sales Advice from the consignee.

(viii) The Consignment sale is accounted for on net of expenses basis but excise, insurance and commission, freight & other expenses related to consignment are included in consignment sales separately amounting to Rs.33,67,782./-(36,55,018/-).

(f) 20% of the preoperative expenses incurred till the commencement of production had been treated as Deferred Revenue Expenditure and the same are written off equally over a period of 5 years from the year of commencement of production at Dextrose plant.

(g) The Preliminary and Public Issue Expenses are written off equally over a period of 10 years from the year of commencement of production at Dextrose Plant. The expenses not related to public issue had been transferred to Deferred Revenue Expenditure and had been written off equally over a period of 5 years from the year of commencement of production at Dextrose Plant.

(h) Cenvat Credit:

(i) Modvat Credit on Capital Goods has been treated as Cenvat Credit Receivable by reducing the cost of fixed assets and balance il any is included in other advances recoverabte in cash or in kind or for value to be received.

(ii) For claim of CENVAT Credit on Capital Goods and inputs the classification between Capital Goods and inputs are made on the basis of Excise records.

(iii) Modvat Credit on Purchase of raw & other material is reduced from the cost of such materials purchased at the time of purchase itself in excise records and is accounted for at year end in the accounts.

(iv) Credit for Service Tax on Services are availed by reducing the Cost of respective services.

(i) Interdivisional transfer is not treated as Sales and Raw Material Consumption in view of announcement made by the Institute of Chartered Accountants of India on Accounting Standard (AS) 9. It is not affecting the Profit/loss of the company.

(j) No provision has been made towards liability for leave encashment benefits. The company is in process to implement it in terms of Revised AS-15 issued by the Institute of Chartered Accountants of India. The amount is not ascertainable as on Balance Sheet date and further the company is in process of implementation. During the year leave encashment of Rs. 25,29,000/- has been paid to Directors for encashment of leave up to 31.03.2010

(k) The Company has taken a Group Gratuity Policy for providing gratuity benefits under Group Gratuity Scheme from Life Insurance Corporation of India (LIC) and the premium paid to the LIC is charged to Profit & Loss A/c. The payment is made as per computation made by LIC therefore no note was taken of the difference in the amount of actuarial liability and the balance in the fund with LIC. The same is subject to approval of Scheme by Commissioner of Income Tax during the year. During the year no computation was received from LIC and therefore provisional payments were made to LIC and it is subject to ascertainment of actuarial liability.

The Company had opted for Group Supreannuation Scheme of LIC of India for its Directors and the contribution paid to LIC of India was charged to Profit & Loss Account. The same was also subject to approval of Scheme by Commissioner of Income Tax. During the year the company has made a payment of Rs. 4,99,050/-.