Accounting Policies of Venus Remedies Ltd. Company

Mar 31, 2025

7. Summary of Material Accounting Policies

The financial statements have been prepared using the
material accounting policies and measurement bases
summarized below.

a. Current / Non-Current Classification

All assets and liabilities have been classified as current
or non-current as per the Company''s normal operating
cycle and other criteria set out in Schedule III of the Act.
Based on the nature of products & time between the
acquisition of the assets for processing and there are
realisation in cash & cash equivalents, the company has
ascertained its operating cycle upto 12 months for the
purpose of current/non -current classification of assets
& liabilities.

b. Property, Plant and Equipment & Depreciation

• All items of Property, Plant and Equipment are
stated at cost less accumulated depreciation and
impairment losses, if any. The cost of an item of
property, plant and equipment comprises:

> Its purchase price, including import duties
and non - refundable purchase taxes after
deducting trade discounts and rebates.

> Expenses incurred up to date of putting
them in commercial use.

• The Company is following the useful life method
of depreciation as per the useful life as specified
in Schedule II to the Act. The Carrying amount of
assets is being depreciated over the remaining
useful life of the assets. On assets sold, discarded
etc, during the year depreciation is provided up to
the date of sale/discard. Depreciation is calculated
on a straight-line basis over the estimated useful
lives of the assets.

• Useful life is reviewed at each financial year.

• Carrying value of PPE are reviewed for impairment
when events or changes in circumstances
indicates that the carrying value may not be
recoverable.

• Capital work in progress in respect of assets which
are not ready for their intended use are carried at
cost comprising of direct costs related incidental
expenses and attributable interest.

• The Company periodically reviews its Capital
work-in-progress and in case of abandoned
works, provision for unserviceable cost is provided
for, as required, basis the technical assessment.
Further, provisions made are reviewed at regular
intervals and in case work has been subsequently
taken up, then provision earlier provided for is
written back to the extent the same is no longer
required.

• The company has not taken any residual value of
Property, Plant and Equipment.

c. Intangible Assets

• Intangible assets are stated at cost less
accumulated amortisation and impairment losses,
if any. The company amortizes its intangible
assets over a period of 20 years.

• The amortization period and the amortization
method of intangible assets with a finite useful
life are reviewed at each financial year end and
adjusted prospectively, wherever required.

• Intangible assets that are acquired by the
Company and that have finite useful lives are
measured at cost less accumulated amortisation
and accumulated impairment losses, if any.
Subsequent expenditures are capitalised
only when they increase the future economic
benefits embodied in the specific asset to which
they relate.

• Research cost & related expenditures are
recognised in the Standalone Statement of Profit
and Loss in the period in which such expenditure
is incurred.

• Intangible Assets with finite lives are amortized
on a straight-line basis over the estimated useful
economic life. The amortization expense on
intangible assets with finite lives are recognized
in the Standalone Statement of Profit and Loss

d. Investment in Subsidiary

The company has elected to recognise its investments
in equity instruments in subsidiaries at cost less
impairment loss, if any in accordance with option
available in Ind AS 27 ''Separate Financial Statements''.

e. Inventories

Inventories are valued at the lower of cost and net
realisable value and Cost is determined on First in First
Out (FIFO) basis.

Costs incurred in bringing each product to its present
location and condition are accounted for as follows:

• Raw materials: cost includes cost of purchase and
other costs incurred in bringing the inventories
to their present location and condition. Cost is
determined on first in, first out basis.

• Finished goods and work in progress: cost
includes cost of direct materials and labour and a
proportion of manufacturing overheads based on
the normal operating capacity. Cost is determined
on first-in, first-out basis.

• Traded goods: cost includes cost of purchase and
other costs incurred in bringing the inventories to
their present location and condition.

• Spares and consumables: - At cost.

f. Trade Receivables

In respect of trade receivables, the Company applies
the simplified approach of Ind AS 109 ''Financial
Instruments'', which requires measurement of loss
allowance at an amount equal to lifetime expected
credit losses. Lifetime expected credit losses are the
expected credit losses that result from all possible
default events over the expected life of a financial
instrument.

g. Cash & Cash Equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant risk
of change in value and having original maturities of
three months or less from the date of purchase, to be
cash equivalents. Cash and cash equivalents consist
of balances with banks which are unrestricted for
withdrawal and usage.

h. Financial Instruments

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

Initial recognition and measurement

• Financial assets and financial liabilities are
recognized when the Company becomes a party
to the contractual provisions of the financial
instrument and are measured initially at fair value
adjusted for transaction costs through profit
or loss.

• An equity instrument is any contract that
evidences a residual interest in the assets of
an entity after deducting all of its liabilities.
Equity instruments issued by the Company are
recognised at the proceeds received, net of direct
issue cost.

Subsequent measurement of financial assets and

financial liabilities:

• All Financial liabilities and Financial Assets are
subsequently measured at Fair value through
profit & loss.

• Other than above, ''debt instrument'' is measured
as at FVTOCI if both of the following criteria are
met:

a) The objective of the business model is
achieved both by collecting contractual
cash flows and selling the financial assets,
and

b) The contractual terms of the instrument give
rise on specified dates to cash flows that are
SPPI on the principal amount outstanding.

Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements
are recognized in the other comprehensive
income (OCI) and on derecognition of the asset,
cumulative gain or loss previously recognized in
OCI is reclassified from the equity to standalone
profit or loss.

Derecognition

• The company derecognises a financial asset only
when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of
ownership of the asset to another entity.

• The Company derecognises financial liabilities
when, and only when, the Company''s obligations
are discharged, cancelled or have expired.

• The difference between the carrying amount of
a financial liability (or part of a financial liability)
extinguished or transferred to another party and
the consideration paid, including any noncash
assets transferred or liabilities assumed, shall be
recognised in the Standalone Statement of Profit
and Loss.

i. Revenue Recognition

• Revenue is recognised when control of the
products being sold has transferred to the
customer and when there are no longer
any unfulfilled obligations to the customer.
This is generally on delivery to the customer but
depending on individual customer terms, this
can be at the time of dispatch, delivery or upon
formal customer acceptance. This is considered
the appropriate point where the performance
obligations in our contracts are satisfied as
company no longer have control over the
inventory Revenue is measured based on

transaction price, which is the fair value of the
consideration received or receivable, stated net of
discounts, returns and Indirect Taxes. No element
of financing is present in the pricing arrangement.
Settlement terms for credit sales ranging up to
120 days.

• Dividend income is recognized at the time when
the right to receive is established by the entity.

• Other income is accounted for on mercantile
basis unless otherwise stated in other IND AS.

j. Employee Benefits

• Current employee benefits

a) Liabilities for wages and salaries, including
non-monetary benefits that are expected to
be settled wholly within 12 months after the
end of the period in which the employees
render the related service are recognized in
respect of employees'' services up to the end
of the reporting period and are measured at
the amounts expected to be incurred when
the liabilities are settled.

b) Expense in respect of other short-term
benefits is recognized on the basis of the
amount paid or payable for the period
during which services are rendered by the
employee.

• Post Retirement Employee Benefits

a) Payment for present liability of future
payment of Post Retirement Employee
Benefit being made to gratuity fund
which have invested in Aditya Birla Sunlife
Insurance Co Ltd. However, any deficit in
plan assets managed by fund as compared
to the liability based on an independent
actuarial valuation is recognised as a liability.

b) The company has adopted a policy of
compensated earned leave which are
accumulating in nature and is determined
by actuarial valuation at each reporting date
using projected unit credit method on the
additional amount expected to be paid /
availed as a result of the unused entitlement
that has accumulated at the balance
sheet date.

c) Gratuity liability accounted for on the basis
of actuarial valuation as per Ind AS 19
''Employee Benefits''. Liability recognized
in the Standalone Balance Sheet in
respect of gratuity is the present value
of the defined benefit obligation at the
end of each reporting period. The present
value of defined benefit is determined

by discounting the estimated future cash
outflows by reference to market yield at
the end of each reporting period. The net
interest cost is calculated by applying the
discount rate to the net balance of the
defined benefit obligation. This cost is
included in employee benefit expense in
the Standalone Statement of Profit and Loss.
Actuarial gain / loss pertaining to gratuity
are accounted for as OCI.

k. Foreign Currency Transactions

• Foreign currency transactions are recorded in the
functional currency, by applying the exchange
rate between the functional currency and the
foreign currency at the date of the transaction.

• Foreign currency monetary items outstanding
at the balance sheet date are converted to
functional currency using the closing rate.
Non-monetary items denominated in a foreign
currency which are carried at historical cost are
reported using the exchange rate at the date of
the transactions.

• Any income/expense arising from foreign
currency transactions is dealt in the standalone
statement of profit and loss for the year.

l. Borrowing Cost

Borrowing costs that are directly attributable to the
acquisition or construction of qualifying assets are
capitalized as part of costs of such assets till such time
as the assets is ready for its intended use. All other
borrowing costs are recognized as an expense in the
period in which incurred.

m. Government Grants

• The Company recognizes government grants
only when there is reasonable assurance that
the conditions attached to them shall be
complied with, and the grants will be received.
Government grants related to revenue are
recognized on a systematic basis in the
Standalone Statement of Profit and Loss over the
period necessary to match them with the related
costs which they are intended to compensate.

• Income from export incentives such as duty
drawback, merchandise export import scheme
are recognized on accrual basis.

• Income from incentives other than above are also
recognised on cash basis.

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Mar 31, 2024

Note No. -11. CORPORATE INFORMATION

Venus Remedies Limited (the ''Company'') is a public limited Company having its registered office at SCO 857, 2^nd Floor, C. No. 10 NAC Manimajra Chandigarh, 160101 and is listed on the Bombay Stock Exchange Limited (BSE), National Stock Exchange of India (NSE). The Company is one of the handful player in pharmaceutical sector to launch injectables globally. It has world-class manufacturing facilities in Panchkula and Baddi (in India), and research and development centre under the name of Venus Medicine Research Centre (in India).

MATERIAL ACCOUNTING POLICIES2. BASIS OF ACCOUNTING AND STATEMENT OF COMPLIANCE

These standalone financial statements of the company have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standards (hereinafter referred to as the "Ind AS") as notified under section 133 of the Companies Act 2013 ("the Act") read with the Companies (Indian Accounting Standards) Rules as amended from time to time and other relevant provisions of the Act and accounting principles generally accepted in India.

3. FUNCTIONAL AND PRESENTATION CURRENCY

These standalone financial statements are presented in Indian rupees which is the functional currency of the Company. The figures in the Standalone Balance Sheet and Standalone Statement of Profit & Loss for the year have been rounded off to the nearest lakhs unless otherwise indicated.

4. BASIS OF MEASUREMENT

These standalone financial statements are prepared under the historical cost convention, except for certain financial instruments which are measured at fair value at the end of each reporting period, as explained in the accounting policies below and on the basis of going concern. All assets and liabilities have been classified as current and non-current as per the Company''s normal operating cycle. Based on

the nature of services rendered to customers and time elapsed between deployment of resources and the realisation in cash and cash equivalents of the consideration for such services rendered, the Company has considered an operating cycle of 12 months.

5. USE OF ESTIMATES AND JUDGEMENTS

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported assets and liabilities, revenue and expenses and disclosures relating to contingent liabilities. Management believes that estimates used in the preparation of the financial statement are prudent and reasonable. Examples of such estimates include valuation of inventories, sales return, employee''s costs, assessment of recoverable amounts of deferred tax assets, provisions against litigations and contingencies:

• Inventories

The Company estimates the net realizable values of inventories, taking into account the most reliable evidence available at each reporting date. The future realization of these inventories may be affected by future demand or other market-driven changes that may reduce future selling prices.

• Recoverability of advances / receivables

At each balance sheet date, based on historical default rates observed over expected life, the Management assesses the expected credit losses on outstanding receivables and advances.

• Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company by their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgments and the use of estimates regarding the outcome of future events.

6. RECENT ACCOUNTING PRONOUNCEMENTS

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

7. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The financial statements have been prepared using the material accounting policies and measurement bases summarized below.

a. Current / Non-Current Classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule III of the Act. Based on the nature of products & time between the acquisition of the assets for processing and there are realisation in cash & cash equivalents, the company has ascertained its operating cycle upto 12 months for the purpose of current/non -current classification of assets & liabilities.

b. Property, Plant and Equipment & Depreciation

• All items of Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment losses, if any. The cost of an item of property, plant and equipment comprises:

> Its purchase price, including import duties and non - refundable purchase taxes after deducting trade discounts and rebates.

> Expenses incurred up to date of putting them in commercial use.

• The Company is following the useful life method of depreciation as per the useful life as specified in Schedule II to the Act. The Carrying amount of assets is being depreciated over the remaining useful life of the assets. On assets sold, discarded etc, during the year depreciation is provided up to the date of sale/discard. Depreciation is calculated on a straightline basis over the estimated useful lives of the assets.

• Useful life is reviewed at each financial year.

• Carrying value of PPE are reviewed for impairment when events or changes in circumstances indicates that the carrying value may not be recoverable.

• Capital work in progress in respect of assets which are not ready for their intended use are carried at cost comprising of direct costs related incidental expenses and attributable interest.

• The Company periodically reviews its Capital work-in-progress and in case of abandoned works, provision for unserviceable cost is provided for, as required, basis the technical assessment. Further, provisions made are reviewed at regular intervals and in case work has been subsequently taken up, then provision earlier provided for is written back to the extent the same is no longer required.

• The company has not taken any residual value of Property, Plant and Equipment.

c. Intangible Assets

• Intangible assets are stated at cost less accumulated amortisation and impairment losses, if any. The company amortizes its intangible assets over a period of 20 years.

• The amortization period and the amortization method of intangible assets with a finite useful life are reviewed at each financial year end and adjusted prospectively, wherever required.

• Intangible assets that are acquired by the Company and that have finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses, if any. Subsequent expenditures are capitalised only when they increase the future economic benefits embodied in the specific asset to which they relate.

• Research cost & related expenditures are recognised in the Standalone Statement of Profit and Loss in the period in which such expenditure is incurred.

• Intangible Assets with finite lives are amortized on a straight-line basis over the estimated useful

economic life. The amortization expense on intangible assets with finite lives are recognized in the Standalone Statement of Profit and Loss.

d. Investment in Subsidiary

The company has elected to recognise its investments in equity instruments in subsidiaries at cost less impairment loss, if any in accordance with option available in Ind AS 27 ''Separate Financial Statements''.

e. Inventories

Inventories are valued at the lower of cost and net realisable value and Cost is determined on First in First Out (FIFO) basis.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

• Raw materials: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on first in, first out basis.

• Finished goods and work in progress: cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity. Cost is determined on first-in, first-out basis.

• Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition.

Spares and consumables: - At cost.

f. Trade Receivables

I n respect of trade receivables, the Company applies the simplified approach of Ind AS 109 ''Financial Instruments'', which requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.

g. Cash & Cash Equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into

known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

h. Financial Instruments

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

Initial recognition and measurement

• Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs through profit or loss.

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue cost.

Subsequent measurement of financial assets and financial liabilities:

• All Financial liabilities and Financial Assets are subsequently measured at Fair value through profit & loss.

• Other than above, ''debt instrument'' is measured as at FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The contractual terms of the instrument give rise on specified dates to cash flows that are SPPI on the principal amount outstanding.

Debt instruments included within the FVTOCI category are measured initially as well as at each

reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI) and On derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from the equity to standalone profit or loss.

Derecognition

The company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.

The Company derecogni ses financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired.

The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred to another party and the consideration paid, including any noncash assets transferred or liabilities assumed, shall be recognised in the Standalone Statement of Profit and Loss.

i. Revenue Recognition

• Revenue is recognised when control of the products being sold has transferred to the customer and when there are no longer any unfulfilled obligations to the customer. This is generally on delivery to the customer but depending on individual customer terms, this can be at the time of dispatch, delivery or upon formal customer acceptance. This is considered the appropriate point where the performance obligations in our contracts are satisfied as company no longer have control over the inventory Revenue is measured based on transaction price, which is the fair value of the consideration received or receivable, stated net of discounts, returns and Indirect Taxes. No element of financing is present in the pricing arrangement. Settlement terms for credit sales ranging up to 120 days.

• Dividend income is recognized at the time when the right to receive is established by the entity.

• Other income is accounted for on mercantile basis unless otherwise stated in other IND AS.

j. Employee Benefits

• Current employee benefits

a) Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be incurred when the liabilities are settled.

b) Expense in respect of other short-term benefits is recognized on the basis of the amount paid or payable for the period during which services are rendered by the employee.

• Post Retirement Employee Benefits

a) Post- retirement benefits plans are determined on the basis of an actuary valuation by an independent actuary. Liability recognised in the Standalone Balance Sheet in respect of defined benefit obligation is the present value of the defined benefit obligation at the end of reporting period.

b) The company has adopted a policy of compensated earned leave which are accumulating in nature and is determined by actuarial valuation at each reporting date using projected unit credit method on the additional amount expected to be paid / availed as a result of the unused entitlement that has accumulated at the balance sheet date.

c) Gratuity liability accounted for on the basis of actuarial valuation as

per Ind AS 19 ''Employee Benefits''. Liability recognized in the Standalone Balance Sheet in respect of gratuity is the present value of the defined benefit obligation at the end of each reporting period. The present value of defined benefit is determined by discounting the estimated future cash outflows by reference to market yield at the end of each reporting period. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation. This cost is included in employee benefit expense in the Standalone Statement of Profit and Loss. Actuarial gain / loss pertaining to gratuity are accounted for as OCI.

k. Foreign Currency Transactions

• Foreign currency transactions are recorded in the functional currency, by applying the exchange rate between the functional currency and the foreign currency at the date of the transaction.

• Foreign currency monetary items outstanding at the balance sheet date are converted to functional currency using the closing rate. Non-monetary items denominated in a foreign currency which are carried at historical cost are reported using the exchange rate at the date of the transactions.

Any income/expense arising from foreign currency transactions is dealt in the standalone statement of profit and loss for the year.

l. Borrowing Cost

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of costs of such assets till such time as the assets is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which incurred.

m. Government Grants

• The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with, and the grants will be received. Government grants related to revenue are recognized on a systematic basis in the Standalone Statement of Profit and Loss over the period necessary to match them with the related costs which they are intended to compensate.

Income from export incentives such as duty drawback, merchandise export import scheme are recognized on accrual basis.

Income from incentives other than above are also recognised on cash basis.

n. Provisions, Contingent Liabilities & Contingent Assets

• Provisions involving substantial degree of estimation in management are recognized when there is present obligation as a result of past events, and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes for:

a) Possible obligations which will be confirmed only by the future events not wholly within the control of the company or

b) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are neither recognized nor disclosed except when realization of income is virtually certain, related asset is disclosed.

o. Income Tax

Income tax expenses comprises current and deferred tax. It is recognized in the Standalone Statement of Profit and Loss.

• Current Tax: Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions. Adjustments in books are made only after the completion of the assessment.

• Deferred Tax: Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for the taxation purposes. Deferred income tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.

p. Earnings per Share

Basic EPS amounts are calculated by dividing the profit or loss for the year attributable to equity holders of the Company by the weighted

average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit or loss attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares, unless the effect of potential dilutive equity shares is anti-dilutive.

q. Operating Cycle

Based on the nature of product /activities of the company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

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Mar 31, 2018

Basis of accounting and preparation of standalone financial statements:

Basis of accounting

1) These standalone financial statements of the company have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standards (hereinafter referred to as the Ind As as notified under section 133 of the Companies Act 2013 (the Act read with rule 4 of the Companies (Indian Accounting Standards) Rules 2015 as amended and other relevant provisions of the Act and accounting principles generally accepted in india. These standalone financial statements were authorized for issue by the company’s Board of Directors on May 28, 2018.

2) These standalone financial statements are the first standalone financial statements prepared in accordance with Indian Accounting standards(Ind AS). For all periods up to and including the year ended March 31,2017 the company reported its Financial statements in accordance with the accounting standards notified under the section 133 of the companies Act 2013.The financial statements for the year ended March 31, 2017 and the opening Balance Sheet as at April 1, 2016 have been restated in accordance with Ind AS for comparative information. Reconciliations and explanations of the effect of the transition from IGAAP to IND AS on the company’s Balance Sheet, Statement of Profit and Loss including other comprehensive Income and statement of Cash Flows are provided in note no 41

Functional and Presentation Currency

3) These standalone financial statements are presented in indian rupees which is the functional currency of the Company. The figures in the Balance Sheet and Profit & Loss Account for the year have been rounded off to nearest lacs.

Basis of Measurement

4) These standalone financial statements are prepared under the historical cost convention and on the basis of going concern.

Use of Estimates and Judgements

5) The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported assets and liabilities, revenue and expenses and disclosures relating to contingent liabilities. Management believes that estimates used in the preparation of the financial statement are prudent and reasonable. Examples of such estimates include estimation of useful lives of tangible and intangible assets, valuation of inventories, sales return, employees costs, assessment of recoverable amounts of deferred tax assets, provisions against litigations and contingencies.

6) Property, Plant and Equipment & Depreciation (IND AS 16)

Recognition and Measurement

Items of property, Plant and equipment at cost less accumulated depreciation and impairment losses, if any. The cost of an item of property, plant and equipment comprises:

its purchase price, including import duties and non - refundable purchase taxes after deducting trade discounts and rebates.

Expenses incurred up to date of putting them in commercial use.

The Company has elected to continue with the carrying value of all its property ,plant and equipment as recognized in the standalone financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as the deemed cost as at the transition date pursuant to the exemption under Ind As 101.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in the statement of Profit and Loss.

Capital work in progress in respect of assets which are not ready for their intended use are carried at cost comprising of direct costs related incidental expenses and attributable interest.

Depreciation

The Company is following the useful life method of depreciation as per the useful life specified Schedule II to the Act. The Carrying amount of assets is being depreciated over the remaining useful life of the assets. On assets sold, discarded etc, during the year depreciation is provided up to the date of sale/discard.

7) INTANGIBLE ASSETS (IND AS 38)

Recognition and Measurement

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The company amortizes its intangible assets over a period of 20 years.

The cost of an intangible assets comprises of its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities) and any directly attributable expenditure on making the asset ready for its intended use.

The company has changed its policy to expense all Research and Development expenditure as incurred, w.e.f. April 1, 2017. The company believes that this change presents a more objective, reliable and prudent view of the company’s financial position, especially its cash flows. This change has no material impact on the cash flow position of the company.

In order to maintain comparability of the financial statements across past years and in accordance with IND AS 8, the prior period figures presented herein (i.e. FY 2015-16 and FY 201617) have been modified to reflect this change. A reconciliation of the effect of this change on each line item of the balance sheet is presented in Note 41.

The retrospective application of this change in policy has been limited to the prior periods presented in these financial statements, as it was impracticable to determine the net cumulative effect of this policy change for the periods before those presented in these financial statements.

(8) INVENTORIES (IND AS 2)

Method of valuation of inventories adopted are as under :-

(a) Stock Raw Material and Packing Material: - At cost price.

(b) Stock of Work-in-Progress:- At material cost plus apportioned manufacturing overheads.

(c) Stock of Finished Goods:- At material cost plus apportioned manufacturing overheads and other costs incurred in bringing the inventories to their present location and condition or Net Realizable value, whichever is lower.

(d) Spares and consumables:- At cost.

(9) REVENUE RECOGNITION - IND AS -18

(a) Sales of goods and services are recognized upon passage of the title to the customer, which generally coincides with the delivery. Sale is net of sale returns. It include inter unit sale.

(b) Dividends are accounted for as and when received.

(c) Other income is accounted for on mercantile basis unless otherwise stated in other IND AS.

(10) EMPLOYEE BENEFITS (IND AS-19)

(a) Short term employees benefits are recognized as an expenses at the undiscounted amount in the profit and loss accounts of the year in which the related service is rendered.

(b) Post retirement benefits plan are determined on the basis of an actuary valuation by an independent actuary. Liability recognised in the balance sheet in respect of defined benefit obligation is the present value of the defined benefit obligation at the end of reporting period.

Remeasurement gains and losses arising from experience adjustments are recognised in the period in which they occur, directly in other comprehensive income.

(11) IMPAIRMENT OF ASSETS (IND AS 36)

The Company checks for impairment of all its intagible assets on annual basis and an assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired if there is any indication that asset may be impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Accounting policies not specially referred to are consistent with generally accepted accounting principles.

(12) FOREIGN CURRENCY TRANSACTIONS (IND AS-21)

(a) Foreign exchange transactions in respect of import payments are stated at the exchange rate prevailing at the time of transaction and variation, if any, accounted for on the date of payment is squared during the same accounting year.

(b) Monetary items denominated in foreign currencies remaining unsettled at the year end if not covered by forward exchange contracts are translated at year end rates.

(c) Any income/expense arising from foreign currency transactions is dealt in the profit and loss account for the year except in cases where they relate to acquisition of fixed assets in which case they are adjusted in the carrying cost of such assets.

(13) BORROWING COSTS (IND AS 23)

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of costs of such assets till such time as the assets is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which incurred.

(14) GOVERNMENT GRANTS (IND AS 20)

The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with, and the grants will be received. Government grants related to depreciable assets are treated as deferred income and are recognized in the statement of Profit and Loss on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in the statement of Profit and Loss over the period necessary to match them with the related costs which they are intended to compensate.

Export benefits available under prevalent scheme are accrued in the year in which the goods are exported and there is no uncertainty in receiving the same.

15) PROVISIONS AND CONTINGENT LIABILITIES( IND AS 37)

Provisions involving substantial degree of estimation in management are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes for

i) Possible obligations which will be confirmed only by the future events not wholly within the control of the company or

ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

16) INCOME TAX (IND AS 12)

Income tax expenses comprises current and deferred tax. It is recognized in statement of profit and loss

a) Current Tax : Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions. Adjustments in books are made only after the completion of the assessment.

(b) Deferred Tax: Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for the taxation purposes. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed at each reporting date.

C) MAT: Minimum Alternative Tax payable under the provisions of the income tax Act, 1961 is recognized as an asset in the year in which credit becomes eligible and is set off in the year in which the Company becomes liable to pay income taxes at the enacted tax rates and shall be reversed in the year in which it lapses.

17) FINANCIAL INSTRUMENTS (IND AS 109)

Company measures a financial asset or financial liability at fair value plus or minus, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.

A financial asset, a part of a financial asset is derecognised when the rights to receive cash flows from the asset have expired.

18) Operating Cycle :

Based on the nature of product /activities of the company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non current.

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Mar 31, 2016

STATEMENTS as on 31st March 2016.

(I) Accounting Concepts

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and incomes to the extent ascertainable are accounted for on mercantile basis unless otherwise stated in accordance with Accounting Standard - 1 (i.e. Disclosure of Accounting Policies)

(II) Fixed Assets

Fixed Assets are stated at historical cost (including expenses incurred up to the date of putting them in commercial use) less depreciation in accordance with Accounting Standard -10 i.e. Accounting for Fixed Assets.

(III) Depreciation

The Company is following the useful life method of depreciation as per the useful life specified in part C of Schedule II of the Companies Act 2013. The Carrying amount of assets is being depreciated over the remaining useful life of the assets.

On assets sold, discarded etc, during the year depreciation is provided up to the date of sale/discard.

(IV) Inventories

The inventories are valued in accordance, with the revised Accounting Standard-2 "(AS- 2)” Valuation of Inventories” and the revised "Guidance Note on Accounting Treatment for Excise Duty” issued by the Institute of Chartered Accountants of India. Accordingly the method of valuation of inventories adopted are as under

(a) Stock Raw Material and Packing Material:- At cost price.

(b) Stock of Work in Progress:- At material cost plus apportioned manufacturing overheads.

(c) Stock of Finished Goods:- At material cost plus apportioned manufacturing overheads plus excise duty and other costs incurred in bringing the inventories to their present location and condition or Net Realizable value whichever is lower.

(d) Spares and consumables:- at cost.

(V) Investments (AS-13)

(a) Long term investments are stated at cost of acquisition. Provision for Diminution is made only to recognize a decline other than temporary, if any, in the value of investments.

(b) Current investments are carried at lower of cost or fair market Value.

(VI) Retirement Benefits (AS-15)

(a) A short term employees benefits are recognized as an expenses at the undiscounted amount in the profit and loss accounts of the year in which the related service is rendered.

(b) Post employment and other long term employees benefits are recognized as an expense in the profit and loss account for the year in which the employees has rendered services. The expenses are recognized at the present value of the amount payable determined using actuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to profit and loss account.

(VII) Revenue Recognition (AS-9)

(a) Sales of goods and services are recognized upon passage of the title to the customer, which generally coincides with the delivery. Sale is net of sale returns but includes excise duty.

(b) Dividends are accounted for as and when received.

(c) Other income is accounted for on mercantile basis unless otherwise stated in other accounting standard.

(VIII) Research and Development Costs

(a) Capital Expenditure on assets for research and development is included in cost of fixed assets.

(b) (i) The revenue expenditure incurred on research & development up to research phase comprising cost of materials consumed, salary & wages and other related costs, as identified have been charged to Profit & Loss account.

(ii) Expenditure on development phase in which the activity converts the results to a marketable product but doesn''t result in to any intangible assets, such expenses incurred are not capitalized but otherwise charged to Profit & Loss account in accordance with AS-26 (Accounting Standard on Intangible Assets).

(iii) Expenditure on in-licensed development activities, where by research findings are applied to a plan or design for the production of new products and processes, is capitalized , if the cost can be reliably measured, the product and process is technically and commercially feasible and the Company has sufficient Technical, financial and other resources to complete the development and to use and sell the asset.

(IX) Intangible Assets (AS 26)

(i) The company has the policy to amortize the patent and trademarks over the period of 15 years as the estimated normal useful life of the patent is 15 years.

(X) Borrowing Costs (AS-16)

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of costs of such assets till such time as the assets is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which incurred.

(XI) Translation of Foreign Exchange Transactions (AS-11)

(a) Foreign exchange transactions in respect of import payments are stated at the exchange rate prevailing at the time of transaction and variation, if any, accounted for on the date of payment is squared during the same accounting year.

(b) Monetary items denominated in foreign currencies remaining unsettled at the yearend if not covered by forward exchange contracts are translated at year end rates.

(c) Any income/expense arising from foreign currency transactions is dealt in the profit and loss account for the year except in cases where they relate to acquisition of fixed assets in which case they are adjusted in the carrying cost of such assets.

(XII) Income Tax

a) Current Tax: Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions.

Adjustments in books are made only after the completion of the assessment.

(b) Deferred Tax: Consequent to the Accounting Standard 22 "Accounting for taxes on income” the differences that result between the profit offered for income tax and the profit as per the financial statement are identified and thereafter a deferred tax liability is recorded for timing differences, namely the differences that originate is one accounting period and reverse in another. The tax effect is calculated on the accumulated timing difference at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

c) MAT: Minimum Alternative Tax payable under the provisions of the income tax Act, 1961 is recognized as an asset in the year in which credit becomes eligible and is set off in the year in which the Company becomes liable to pay income taxes at the enacted tax rates and shall be reversed in the year in which it lapses.

(XIII) Government Grants

The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with, and the grants will be received. Government grants related to depreciable assets are treated as deferred income and are recognized in the statement of Profit and Loss on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in the statement of Profit and Loss over the period necessary to match them with the related costs which they are intended to compensate.

(XIV) Impairment of Assets (AS-28)

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired if there is any indication that asset may be impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Accounting policies not specially referred to are consistent with generally accepted accounting principles.

(XV) Provisions, Contingent Liabilities and Contingent Assets (AS-29)

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

(XVI) Forward Exchange Contracts (AS-30)

A company may enter into a forward exchange contract or another financial Instrument that is in substance a forward exchange contract, which are not intended for trading or speculation purposes, to establish the amount of the reporting currency required or available at the settlement date of the transaction. As per AS-11 (R) any premiums or discount at the inception of such a forward exchange contract are amortized over the life of the contract and exchange difference on such contracts are recognized in the statement of profit or loss in the reporting period.

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Mar 31, 2015

(I) ACCOUNTING CONCEPTS

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and incomes to the extent ascertainable are accounted for on mercantile basis unless otherwise stated in accordance of Accounting Standard — 1 (i.e. Disclosure of Accounting Policies).

(II) FIXED ASSETS

Fixed Assets are stated at historical cost (including expenses incurred upto the date of putting them in commercial use) less depreciation in accordance of Accounting Standard -10 (i.e. Accounting for Fixed Assets).

(III) DEPRECIATION

The company has changed the method of charging depreciation as prescribed by the companies act 2013. Now the Company is following the useful life method of depreciation as per the useful life specified in part C of Schedule II of the Companies Act 2013 instead of straight line method of depreciation at the rates as specified in schedule XIV of the Companies Act 1956. The Carrying amount of assets is being depreciated over the remaining useful life of the assets. In case the remaining useful life of an asset is exhausted, the depreciation amount after retaining the residual value is transferred to General Reserve.

On assets sold, discarded etc, during the year depreciation is provided up to the date of sale/discard.

(IV) INVENTORIES

The inventories are valued in accordance, with the revised Accounting Standard-2 "(AS- 2)" Valuation of Inventories" and the revised "Guidance Note on Accounting Treatment for Excise Duty" issued by the Institute of Chartered Accountants of India. Accordingly the method of valuation of inventories adopted are as under :-

(a) Stock Raw Material and Packing Material: - At cost price.

(b) Stock of Work in Progress:- At material cost plus apportioned manufacturing overheads

(c) Stock of Finished Goods:- At material cost plus apportioned manufacturing overheads plus excise duty and other costs incurred in bringing the inventories to their present location and condition or Net Realizable value whichever is lower.

(d) Spares and consumables:- at cost.

(V) INVESTMENTS (AS-13)

(a) Long term investments are stated at cost of acquisition. Provision for Diminution is made only to recognize a decline other than temporary, if any, in the value of investments.

(b) Current investments are carried at lower of cost and fair market value.

(VI) RETIREMENT BENEFITS (AS-15)

(a) A short term employees benefits are recognized as an expenses at the undiscounted amount in the profit and loss accounts of the year in which the related service is rendered.

(b) Post employment and other long term employees benefits are recognized as an expense in the profit and loss account for the year in which the employees has rendered services. The expenses are recognized at the present value of the amount payable determined using actuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to profit and loss account.

(VII) REVENUE RECOGNITION (AS-9)

(a) Sales of goods and services are recognized upon passage of the title to the customer, which generally coincides with the delivery. Sale is net of sale returns but includes excise duty.

(b) Dividends are accounted for as and when received.

(c) Other income is accounted for on mercantile basis unless otherwise stated in other accounting standard.

(VIII) RESEARCH AND DEVELOPMENT COSTS

(a) Capital Expenditure on assets for research and development is included in cost of fixed assets.

(b) (i) The revenue expenditure incurred on research & development up to research phase comprising cost of materials consumed, salary & wages and other related costs, as identified have been charged to Profit & Loss account.

(ii) Expenditure on development phase in which the activity converts the results to a marketable product but doesn't result in to any intangible assets, such expenses incurred are not capitalized but otherwise charged to Profit & Loss account in accordance with AS-26 (Accounting Standard on Intangible Assets).

(iii) Expenditure on in-licensed development activities, where by research findings are applied to a plan or design for the production of new products and processes, is capitalized, if the cost can be reliably measured, the product and process is technically and commercially feasible and the Company has sufficient Technical, financial and other resources to complete the development and to use and sell the asset.

(IX) INTANGIBLE ASSETS (AS 26)

(i) The company has changed the policy to amortise the patent and trademarks over the period of 12 years from 10 years, as the estimated normal useful life of the patent is 12 years.

(X) BORROWING COSTS (AS-16)

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of costs of such assets till such time as the assets is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which incurred.

(XI) TRANSLATION OF FOREIGN EXCHANGE TRANSACTIONS (AS-11)

(a) Foreign exchange transactions in respect of import payments are stated at the exchange rate prevailing at the time of transaction and variation, if any, accounted for on the date of payment is squared during the same accounting year.

(b) Monetary items denominated in foreign currencies remaining unsettled at the year end if not covered by forward exchange contracts are translated at year end rates.

(c) Any income/expense arising from foreign currency transactions is dealt in the profit and loss account for the year except in cases where they relate to acquisition of fixed assets in which case they are adjusted in the carrying cost of such assets.

(XII) INCOME TAX

a) Current Tax: Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions. Adjustments in books are made only after the completion of the assessment.

(b) Deferred Tax : Consequent to the Accounting Standard 22 "Accounting for taxes on income" the differences that result between the profit offered for income tax and the profit as per the financial statement are identified and thereafter a deferred tax liability is recorded for timing differences, namely the differences that originate is one accounting period and reverse in another. The tax effect is calculated on the accumulated timing difference at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

(c) MAT: Minimum Alternative Tax payable under the provisions of the income tax Act, 1961 is recognized as an asset in the year in which credit becomes eligible and is set off in the year in which the Company becomes liable to pay income taxes at the enacted tax rates and shall be reversed in the year in which it lapses.

(XIII) GOVERNMENT GRANTS

The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with, and the grants will be received. Government grants related to depreciable assets are treated as deferred income and are recognized in the statement of Profit and Loss on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in the statement of Profit and Loss over the period necessary to match them with the related costs which they are intended to compensate.

(XIV) IMPAIREMENT OF ASSETS (AS-28)

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Accounting policies not specially referred to are consistent with generally accepted accounting principles.

(XV) PROVISIONS, CONTINGENT LIABILITIES AND CONTIGENT ASSETS (AS-29)

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

(XVI) FORWARD EXCHANGE CONTRACTS (AS-30)

A company may enter into a forward exchange contract or another financial Instrument that is in substance a forward exchange contract, which are not intended for trading or speculation purposes, to establish the amount of the reporting currency required or available at the settlement date of the transaction. As per AS-11 (R) any premiums or discount at the inception of such a forward exchange contract are amortized over the life of the contract and exchange difference on such contracts are recognized in the statement of profit or loss in the reporting period.

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Mar 31, 2014

(i) Accounting Concepts

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and ncomes to the extent ascertainable are accounted for on mercantile basis unless otherwise stated in accordance of Accounting Standard - 1 (i.e. Disclosure of Accounting Policies)

(ii) Fixed Assets

Fixed Assets are stated at historical cost (including expenses incurred upto the date of putting them in commercial use) less depreciation in accordance of Accounting Standard -10 i.e. Accounting for Fixed Assets

(iii) Depreciation

Depreciation has been provided on straightline method and on single shift basis at the rates specified in the schedule XIV of the Companies Act, 1956, in accordance with accounting standard - 6 l.e accounting for depreciation

(iv) Inventories

The inventories are valued in accordance, with the revised Accounting Standard-2 "(AS- 2)" Valuation of Inventories" and the revised "Guidance Note on Accounting Treatment for Excise Duty" issued by the Institute of Chartered Accountants of ndia. Accordingly the method of valuation of inventories adopted are as under :-

(a) Stock Raw Material and Packing Material: - At cost price.

(b) Stock of Work in Progress:- At material cost plus apportioned manufacturing overheads

(c) Stock of Finished Goods:- At material cost plus apportioned manufacturing overheads plus excise duty and other costs incurred in bringing the inventories to their present location and condition or Net Realizable value whichever is lower.

(d) Spares and consumables:- at cost.

(v) Investments (AS-13)

(a) Long term investments are stated at cost of acquisition. Provision for Diminution is made only to recognize a decline other than temporary, if any, in the value of investments

(b) Current investments are carried at lower of cost and fair market value.

(vi) Retirement Benefits (AS-15)

(a) A short term employees benefits are recognized as an expenses at the undiscounted amount in the profit and loss accounts of the year in which the related service is rendered

(b) Post employment and other long term employees benefits are recognized as an expense in the profit and loss account for the year in which the employees has rendered services. The expenses are recognized at the present value of the amount payable determined using actuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to profit and loss account.

(vii) Revenue Recognition (AS-9)

(a) Sales of goods and services are recognized upon passage of the title to the customer, which generally coincides with the delivery. Sale is net of sale returns but includes excise duty.

(b) Dividends are accounted for as and when received

(c) Other income is accounted for on mercantile basis unless otherwise stated in other accounting standard

(viii) Research And Development Costs

(a) Capital Expenditure on assets for research and development is included in cost of fixed assets

(b) (i) The revenue expenditure incurred on research S development up to research phase comprising cost of materials

consumed, salary Swages and other related costs, as identified have been charged to Profit S Loss account.

(ii) Expenditure on development phase in which the activity converts the results to a marketable product but doesn''t result in to any intangible assets, such expenses incurred are not capitalized but otherwise charged to Profit S Loss account in accordance with AS-26 (Accounting Standard on Intangible Assets)

(iii) Expenditure on in-licensed development activities, where by research findings are applied to a plan or design for the production of new products and processes, is capitalized , if the cost can be reliably measured, the product and process is technically and commercially feasible and the Company has sufficient Technical, financial and other resources to complete the development and to use and sell the asset.

(iv) Expenses relating to Patents S Trademarks are written off in ten subsequent years

(ix) Borrowing Costs (AS-16)

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of costs of such assets till such time as the assets is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which incurred

(x) Translation of Foreign Exchange Transactions (AS-11)

(a) Foreign exchange transactions in respect of import payments are stated at the exchange rate prevailing at the time of transaction and variation, if any, accounted for on the date of payment is squared during the same accounting year.

(b) Monetary items denominated in foreign currencies remaining unsettled at the year end if not covered by forward exchange contracts are translated at year end rates

(c) Any income/expense arising from foreign currency transactions is dealt in the profit and loss account for the year except in cases where they relate to acquisition of fixed assets in which case they are adjusted in the carrying cost of such assets

(xi) Income Tax

(a) Current Tax: Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions. Adjustments in books are made only after the completion of the assessment.

(b) Deferred Tax: Consequent to the Accounting Standard 22 "Accounting for taxes on income"the differences that result between the profit offered for income tax and the profit as per the financial statement are identified and thereafter a deferred tax liability is recorded for timing differences, namely the differences that originate is one accounting period and reverse in another. The tax effect is calculated on the accumulated timing difference at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

(c) MAT: Minimum Alternative Tax payable under the provisions of the income tax Act, 1961 is recognized as an asset in the year in which credit becomes eligible and is set off in the year in which the Company becomes liable to pay ncome taxes at the enacted tax rates and shall be reversed in the year in which it lapses

(xii) Government Grants

The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with, and the grants will be received. Government grants related to depreciable assets are treated as deferred income and are recognized in the statement of Profit and Loss on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in the statement of Profit and Loss over the period necessary to match them with the related costs which they are intended to compensate.

(xiii) Impairement of Assets (AS-28)

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profits loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Accounting policies not specially referred to are consistent with generally accepted accounting principles

(xiv) Provisions, Contingent Liabilities and Contigentassets (AS-29)

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

(xv) Forward Exchange Contracts (AS-30)

A company may enter into a forward exchange contract or another financial Instrument that is in substance a forward exchange contract, which are not intended for trading or speculation purposes, to establish the amount of the reporting currency required or available at the settlement date of the transaction. As per AS-11 (R) any premiums or discount at the nception of such a forward exchange contract are amortized over the life of the contract and exchange difference on such contracts are recognized in the statement of profit or loss in the reporting period

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Mar 31, 2013

(i) Accounting Concepts

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and incomes to the extent ascertainable are accounted for on mercantile basis unless otherwise stated in accordance of Accounting Standard - 1 (i.e. Disclosure of Accounting Policies)

(ii) Fixed Assets

Fixed Assets are stated at historical cost (including expenses incurred upto the date of putting them in commercial use) less depreciation in accordance of Accounting Standard -10 i.e. Accounting for Fixed Assets.

(iii) Depreciation

Depreciation has been provided on straightline method and on single shift basis at the rates specified in the schedule XIV of the Companies Act, 1956, in accordance with accounting standard - 6 I.e accounting for depreciation

(iv) Inventories

The inventories are valued in accordance, with the revised Accounting Standard-2 "(AS- 2)" Valuation of Inventories" and the revised " Guidance Note on Accounting Treatment for Excise Duty" issued by the Institute of Chartered Accountants of India. Accordingly the method of valuation of inventories adopted are as under :-

(a) Stock Raw Material and Packing Material: - At cost price.

(b) Stock of Work in Progress: - At material cost plus apportioned manufacturing overheads.

(c) Stock of Finished Goods: - At material cost plus apportioned manufacturing overheads plus excise duty and other costs incurred in bringing the inventories to their present location and condition or Net Realizable value whichever is lower.

(d) Spares and consumables: - at cost.

(v) Investments (AS-13)

(a) Long term investments are stated at cost of acquisition. Provision for Diminution is made only to recognize a decline other than temporary, if any, in the value of investments.

(b) Current investments are carried at lower of cost and fair market value.

(vi) Retirement Benefits (AS-15)

(a) A short term employees benefits are recognized as an expenses at the undiscounted amount in the profit and loss accounts of the year in which the related service is rendered.

(b) Post employment and other long term employees benefits are recognized as an expense in the profit and loss account for the year in which the employees has rendered services. The expenses are recognized at the present value of the amount payable determined using actuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to profit and loss account.

(vii) Revenue Recognition (AS-9)

(a) Sales of goods and services are recognized upon passage of the title to the customer, which generally coincides with the delivery. Sale is net of sale returns but includes excise duty.

(b) Dividends are accounted for as and when received. (c) Other income is accounted for on mercantile basis unless otherwise stated in other accounting standard.

(viii) Research and Development Costs

(a) Capital Expenditure on assets for research and development is included in cost of fixed assets.

(b) (i) The revenue expenditure incurred on research & development up to research phase comprising cost of materials consumed, salary & wages and other related costs, as identified have been charged to Profit & Loss account.

(ii) Expenditure on development phase in which the activity converts the results to a marketable product but doesn''t result in to any intangible assets, such expenses incurred are not capitalized but otherwise charged to Profit & Loss account in accordance with AS-26 (Accounting Standard on Intangible Assets).

(iii) Expenditure on in-licensed development activities, where by research findings are applied to a plan or design for the production of new products and processes, is capitalized , if the cost can be reliably measured, the product and process is technically and commercially feasible and the Company has sufficient Technical , financial and other resources to complete the development and to use and sell the asset.

(ix) Borrowing Costs (AS-16)

Borrowing costs that are attributable to the acquisition or construction of fixed assets are capitalized as part of costs of such assets till such time as the assets is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which incurred.

(x) Translation of Foreign Exchange Transactions (AS-11)

(a) Foreign exchange transactions in respect of import payments are stated at the exchange rate prevailing at the time of transaction and variation, if any, accounted for on the date of payment is squared during the same accounting year.

(b) Monetary items denominated in foreign currencies remaining unsettled at the year end if not covered by forward exchange contracts are translated at year end rates.

(c) Any income/expense arising from foreign currency transactions is dealt in the profit and loss account for the year except in cases where they relate to acquisition of fixed assets in which case they are adjusted in the carrying cost of such assets.

(xi) Income Tax

a) Current Tax: Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions. Adjustments in books are made only after the completion of the assessment.

(b) Deferred Tax : Consequent to the Accounting Standard 22 "Accounting for taxes on income" the differences that result between the profit offered for income tax and the profit as per the financial statement are identified and thereafter a deferred tax liability is recorded for timing differences, namely the differences that originate is one accounting period and reverse in another. The tax effect is calculated on the accumulated timing difference at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

(c) MAT: Minimum Alternative Tax payable under the provisions of the income tax Act, 1961 is recognized as an asset in the year in which credit becomes eligible and is set off in the year in which the Company becomes liable to pay income taxes at the enacted tax rates and shall be reversed in the year in which it lapses.

(xii) Amortisation of Intangible Assets and Miscellanceous Expenditure (AS-26)

(a) Public issue expenses, Bond issue expenses and preliminary expenses are amortized over a period of five years.

(b) Expenses relating to Patents & Trademarks are written off in ten subsequent years.

(xiii) Impairement of Assets (AS-28)

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Accounting policies not specially referred to are consistent with generally accepted accounting principles.

(xiv) Provisions, Contingent Liabilies and Contigent Assets (AS-29)

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

(xv) Forward Exchange Contracts (AS-30)

A company may enter into a forward exchange contract or another financial Instrument that is in substance a forward exchange contract, which are not intended for trading or speculation purposes, to establish the amount of the reporting currency required or available at the settlement date of the transaction. As per AS-11 (R) any premiums or discount at the inception of such a forward exchange contract are amortized over the life of the contract and exchange difference on such contracts are recognized in the statement of profit or loss in the reporting period.

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Mar 31, 2011

I) Accounting Concepts

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and incomes to the extent ascertainable are accounted for on mercantile basis unless otherwise stated in accordance of Accounting Standard – 1 (i.e. Disclosure of Accounting Policies)

II) Fixed Assets

Fixed Assets are stated at historical cost (including expenses incurred on putting them in use) less depreciation in accordance of Accounting Standard -10 i.e. Accounting for Fixed Assets.

III) Depreciation (As-6)

Depreciation has been provided on straight -line method and on single shift basis at the rates specified in the schedule XIV of the Companies Act, 1956.

IV) Inventories

The inventories are valued in accordance, with the revised Accounting Standard-2 "(AS- 2)" Valuation of Inventories" and the revised " Guidance Note on Accounting Treatment for Excise Duty" issued by the Institute of Chartered Accountants of India. According the method of valuation adopted are as under :- a) Stock Raw Material and Packing Material: - At cost price.

b) Stock of Work in Progress: - At material cost plus apportioned manufacturing overheads.

c) Stock of Finished Goods: - At material cost plus apportioned manufacturing overheads plus excise duty and other costs incurred in brining the inventories to their present location and condition or Net Realizable value whichever is lower.

d) Spares and consumables: - at cost.

V) Investments (AS-13)

a) Long term investments are stated at cost of acquisition, provision for Diminution is made only to recognize a decline other than temporary, if any, in the value of investments.

b) Current investments are carried at lower of cost and fair market value.

c) Dividends are accounted for as and when received.

VI) Retirement Benefits (AS-15)

a) A short term employees benefits are recognized as an expenses at the undiscounted Amount in the profit and loss accounts of the year in which the related is rendered.

b) Post employees and other long term employees benefits are recognized as an expense in the profit and loss account for the year in which the employees has rendered services. The expenses are recognized at the present value of the amount payable determined using actuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to profit and loss account.

c) In respect of Employees Stock Option, the Reserve has already been created over the years of option and is shown under the General reserve.

VII) Revenue Recognition (AS-9)

Sales of goods and services are recognized upon passage of the title to the customer, which generally coincides with the delivery. Sale is net of sale returns but includes excise duty.

VIII)Research and Development Costs

a) Capital Expenditure on assets for research and development is included in cost of fixed assets.

b) The revenue expenditure incurred on research & development up to research phase comprising cost of materials consumed, salary & wages and other related costs, as identified have been charged to Profit & Loss account and expenditure on development phase in which the activity converts the results to a marketable product doesn't result in to any intangible assets so expenses incurred are not capitalized but otherwise charged to Profit & Loss account in accordance with AS-26 (Accounting Standard on Intangible Assets).

IX) Borrowing Costs (AS-16)

Borrowing costs that are attributable to the acquisition or construction of fixed assets are capitalized as part of costs of such assets till such time as the assets is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which incurred.

X) Translation of Foreign Exchange Transactions (AS-11)

a) Foreign exchange transactions in respect of import payments are stated at the exchange rate prevailing at the time of transaction and variation, if any, accounted for on the date of payment is squared during the same accounting year.

b) Monetary items denominated in foreign currencies remaining unsettled at the year end if not covered by forward exchange contracts are translated at year end rates.

c) Any income / expense arising from foreign currency transactions is dealt in the profit and loss account for the year except in cases where they relate to acquisition of fixed assets in which case they are adjusted in the carrying cost of such assets.

XI) Income Tax

a) Current Tax: Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions. Adjustments in books are made only after the completion of the assessment.

b) Deferred Tax : Consequent to the Accounting Standard 22 "Accounting for taxes on income" the differences that result between the profit offered for income tax and the profit as per the financial statement are identified and thereafter a deferred tax liability is recorded for timing differences, namely the differences that originate is one accounting period and reverse in another. The tax effect is calculated on the accumulated timing difference at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

c) MAT: Minimum Alternative Tax payable under the provisions of the income tax Act, 1961 is recognized as an asset in the year in which credit becomes eligible and is set off in the year in which the Company becomes liable to pay income taxes at the enacted tax rates and shall be reversed in the year in which it lapses.

XII) Amortisation of Intangible Assets and Miscellanceous Expenditure (AS-26)

a) Public issue expenses, Bond issue expenses and preliminary expenses are amortized over a period of five years.

b) Seed Marketing Expenses incurred during the year are written off equally in the subsequent five years. Seed marketing expenses comprises of expenses Relating to marketing and launching of new products, development of new products, development of new market and area, the benefits of which in the opinion of the management, will accrue to the company over the next five years.

c) Expenses relating to Patents & Trademarks are written off in ten subsequent years.

XIII) Provisions, Contingent Liabilies and Contigent Assets (AS-29)

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

XIV) Impairement of Assets (AS-28)

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Accounting policies not specially referred to are consistent with generally accepted accounting principals.

XV) Forward Exchange Contracts (AS-30)

A company may enter into a forward exchange contract or another financial Instrument that is in substance a forward exchange contract, Which are not intended for trading or speculation purposes, to establish the amount of the reporting currency required or available at the settlement date of the traction. As per AS-11 (R) any premiums or discount at the inception of such a forward exchange contract are amortized over the life of the contract and exchange difference on such contracts are recognized in the statement of profit or loss in the reporting period.

XVI) In accordance with the guidance notes of the ICAI, the company has recognized Minimum Alternative Tax of Rs. 3.00 crores related to the current year and Rs. 2.29 crores pertaining to the previous year as assets during the year.

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Mar 31, 2010

I) Accounting Concepts

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and incomes to the extent ascertainable are accounted for on mercantile basis unless otherwise stated.

II) Fixed Assets

Fixed Assets are stated at historical cost (including expenses incurred on putting them in use less depreciation).

III) Depreciation

Depreciation has been provided on straight-line-method, on single shift basis at the rates specified in the schedule XIV of the Companies Act, 1956.

IV) Inventories

The inventories are valued in accordance, with the revised Accounting Standard-2 “(AS-2)” Valuation of Inventories” and the revised “ Guidance Note on Accounting Treatment for Excise Duty” issued by the Institute of Chartered Accountants of India. According the method of valuation adopted are as under :- a) Stock Raw Material and Packing Material :- At cost price

b) Stock of Work in Progress :- At material cost plus apportioned manufacturing overheads.

c) Stock of Finished Goods :- At material cost plus apportioned manufacturing overheads plus excise duty and other costs incurred in bringing the inventories to their present location and condition or Net Realisable value whichever is lower.

d) Spares and consumable :- At cost.

V) Investments

a) Long term investments are stated at cost of acquisition, provision for diminution is made only to recognise a decline other than temporary, if any, in the value of investments.

b) Current investments are carried at lower of cost and fair market value.

c) Dividends are accounted for as and when received.

VI) Retirement Benefits

a) A short term employees benefits are recognised as an expenses at the undiscounted amount in the profit and loss accounts of the year in which the related is rendered.

b) Post employees and other long term employees benefits are recognised as an expense in the profit and loss account

for the year in which the employees has rendered services. The expenses is recognised at the present value of the amount payable determined using actuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to profit and loss account.

c) In respect of Employees Stock Option, the excess of fair price on the date of grant over the exercise price is recognised as deferred compensation cost amortised over period.

VII) Revenue Recognition

Sales of goods and services are recognised upon passage of the title to the customer, which generally coincides with the delivery. Sale is net of sale returns but includes excise duty.

VIII)Research and Development Costs

a) Capital Expenditure on assets for research and development is included in cost of fixed assets.

b) The revenue expenditure incurred on research & development up to research phase comprising cost of materials consumed, salary & wages and other related costs, as identified have been charged to Profit & Loss account and expenditure on development phase in which the activity converts the results to a marketable product doesnt result in to any intangible assets so expenses incurred are not capitalised but otherwise charged to Profit & Loss account in accordance with as -26 (Accounting Standard on Intangible Assets).

IX) Borrowing Costs Borrowing costs that are attributable to the acquisition or construction of fixed assets are capitalised as part of costs of such assets till such time as the assets is ready for its intended use. All other borrowing costs are recognised as an expense in the period in which incurred.

X) Translation of Foreign Exchange Transactions

a) Foreign exchange transactions in respect of import payments are stated at the exchange rate prevailing at the time of transaction and variation, if any, accounted for on the date of payment is squared during the same accounting year.

b) Monetary items denominated in foreign currencies remaining unsettled at the year end if not covered by forward exchange contracts are translated at year end rates.

c) Any income / expense arising from foreign currency transactions is dealt in the profit and loss account for the year except in cases where they relate to acquisition of fixed assets in which case they are adjusted in the carrying cost of such assets.

XI) Income Tax

a) Current Tax : Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions. Adjustments in books are made only after the completion of the assessment.

b) Deferred Tax : Consequent to the Accounting Standard 22 “Accounting for taxes on income” the differences that result between the profit offered for income tax and the profit as per the financial statement are identified and thereafter a deferred tax liability is recorded for timing differences, namely the differences that originate is one accounting period and reverse in another. The tax effect is calculated on the accumulated timing difference at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

c) MAT : Minimum Alternative Tax payable under the provisions of the income tax Act, 1961 is recognised as an asset in the year in which credit becomes eligible and is set off in the year in which the Company becomes liable to pay income taxes at the enacted tax rates and shall be reversed in the year in which it lapses.

XII) Amortisation of Intangible Assets and Miscellaneous Expenditure

a) Public issue expenses, Bond issue expenses and preliminary expenses are amortised over a period of five years.

b) Seed Marketing Expenses incurred during the year are written off equally in the subsequent five years. Seed marketing expenses comprises of expenses relating to marketing and launching of new products, development of new products, development of new market and area, the benefits of which in the option of the opinion of the management, will accrue to the company over the next five years.

c) Expenses relating to Patents & Trademarks are written off in ten subsequent years.

XIII)Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in management are recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

XIV)Impairment of Assets

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an assets is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Accounting policies not specially referred to are consistent with generally accepted accounting principals.

XV) Forward Exchange Contract

A company may enter into a forward exchange contract or another financial Instrument that is in substance a forward exchange contract, Which are not intended for trading or speculation purposes, to establish the amount of the reporting currency required or available at the settlement date of the traction. As per AS-11 (R) any premiums or discount at the inception of such a forward exchange contract are amortised over the life of the contract and exchange difference on such contracts are recognised in the statement of profit or loss in the reporting period.

XVI)In accordance with the guidance notes of the ICAI, the company has recognised minimum alternative tax of Rs 2 crores related to the current year and Rs 4 crores pertaining to the previous year as assets during the year.