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Accounting Policies of Astec Lifesciences Ltd. Company

Mar 31, 2016

b) Details of security for Secured Borrowings

(a) Term Loans from banks are secured by way of first mortgage/charge over entire movable and immovable Fixed Assets (Present and Future) of the Company and second pari-passu charge over Current Assets of the Company.

(b) Loans repayable on demand from Banks (Working Capital Loans) are secured by first pari-passu charge on the entire Current Assets of the Company both present and future and further secured by second pari-passu charge on entire Fixed Assets (Present and Future) of the Company.

(c) Vehicle Loans - The loan is secured by first charge on the vehicle specifically financed out of loan.

c) Terms of repayment of term Loans

Term Loans (Foreign Currency) of Rs.6,02,59,723/- from IDBI Bank Limited (Previous Year Rs.11,34,64,445/-) having Interest rate of 6 months LIBOR Plus 3.50% and service fees @ 3% p.a. are repayable in 8 semiannual Installments. Last Installment will be due on 1st January, 2017. Installments falling due in respect of the Loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Term Loan of Rs.4,44,44,440/- (Previous Year Rs.6,11,11,108/- ) from IDBI Bank Limited having Interest rate of BBR Plus 3% which is 13% (Previous Year - 13.25%) are repayable in 18 Quarterly Installments of Rs.55,55,556/- each. Last Installment will be due on 31st December, 2018. Installments falling due in respect of the Loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Term Loans (FCNR) of Rs.6,50,00,000/- from ICICI Bank Limited (Previous Year Rs.2,54,83,154/-) having Interest rate of 12.55% are repayable in 16 equal Quarterly Installments starting from the April 2016. The Loan is fully hedged. Installments falling due in respect of the Loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Vehicle Loan amounting to Rs.60,20,338/- from BMW Financials Services (Previous year Nil) was taken during the Financial Year 2015-16 and having interest @ 9.5 % p.a. The Loan is repayable in 60 monthly installments along with interest starting from December 2015. Installments falling due in respect of the Loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Vehicle Loan amounting to Rs.32,70,831/- from Daimier Financial Services India Private Limited (Previous Year Rs.39,90,000/-) was taken during the Financial Year 2014-15 and having interest @ 11.01 % p.a. The Loan is repayable in 60 monthly installments along with interest starting from April 2015. Installments falling due in respect of the Loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Vehicle Loan amounting to Rs.6,53,977/- from ICICI Bank Limited (Previous year Rs.8,19,522/-) was taken during the Financial Year 2014-15 and having interest @ 10.74 % p.a. The Loan is repayable in 60 monthly installments along with interest starting from November 2014. Installments falling due in respect of the loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Vehicle Loan amounting to Rs.4,60,932/- from Kotak Mahindra Prime Limited (Previous year Rs.7,08,219/-) was taken during the Financial Year 2015-16 and having interest @ 10.76 % p.a. The Loan is repayable in 35 monthly installments along with interest starting from January 2015. Installments falling due in respect of the Loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Vehicle Loan amounting to Rs.1,40,461/- from Axis Bank Limited (Previous year Rs.2,65,942/-) was taken during the Financial Year 2012-13 and having interest @ 11.33 % p.a. The Loan is repayable in 60 monthly installments along with interest starting from May 2012. Installments falling due in respect of the Loan up to 31st March, 2017 have been regrouped under Current Maturities of Long Term Debt.

Loans repayable on demand consists Cash Credit, Working Capital Demand Loan, Packing Credit, Buyers Credit & Overdraft Facilities, having Interest rate of 9.5% to 17% for Facilities other than Buyers Credit and for Buyers Credit having interest rate @ 3 months LIBOR plus 100 BPS to LIBOR plus 115 BPS.

Loan from Related Parties (Unsecured) - Loan from Related Parties amounting Rs. 30,00,00,000/from Cream line Dairy Products Limited was taken during the Financial Year 2015-16 and is repayable on demand having interest rate of 10%.


Mar 31, 2015

The accounting policies set out below have been applied consistently to the periods presented in these financial statements.

a) Basis of preparation of financial statements

The accompanying financial statements have been prepared in compliance with the requirements under Section 133 of the Companies Act, 2013 (to the extent notified) ('the Act'), read with Rule 7 of the Companies (Accounts) Rules, 2014, and other generally accepted accounting principles (GAAP) in India, to the extent applicable, under the historical cost convention, on the accrual basis of accounting. GAAP comprises mandatory accounting standards as specified in the Companies (Accounting Standards) Rules, 2006.

b) Use of estimates

The preparation of financial statements in conformity with GAAP in India requires management to make estimates and assumptions that affect the reported amounts of income, expenses, assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and expenses during the period reported. The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements, actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c) Current/ Non-current classification

The Schedule III to the Act requires all assets and liabilities to be classified as either current or non- current.

Assets

An asset is classified as current when it satisfies any of the following criteria:

(a) it is expected to be realised in, or is intended for sale or consumption in, the entity's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realised within twelve months after the balance sheet date;

(d) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the balance sheet date.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

(a)it is expected to be settled in, the entity's normal operating cycle;

(b)it is held primarily for the purpose of being traded;

(c)it is due to be settled within twelve months after the balance sheet date; or

(d)the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date.

All other liabilities are classified as non-current.

Operating cycle

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out above which are in accordance with the revised Schedule III to the Act.

Based on the nature of services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-non-current classification of assets and liabilities

d) Fixed assets and capital work-in-progress

Tangible assets

Fixed assets, both tangible and intangible, are stated at cost of acquisition/construction or at revalue amount less accumulated depreciation and impairment, if any. Cost includes purchase price, taxes, duties, freight and other directly attributable expenses of bringing the assets to its working condition for the intended use. Borrowing costs and exchange gain/loss on long term foreign currency loans attributable to acquisition, construction of qualifying asset (i.e. assets requiring substantial period of time to get ready for intended use) are capitalised. Other pre-operative expenses for major projects are also capitalised, where appropriate.

Capital Work-in-Progress comprises outstanding advances paid to acquire Fixed assets and cost of Fixed Assets that are not yet installed.

Intangible assets

Intangible assets that are acquired by the Company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortisation and any accumulated impairment loss. Subsequent expenditure is capitalised only when it increases the future economic benefits from the specific asset to which it relates.

Depreciation and amortisation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the following categories of assets, wherein the life of the assets has been assessed as under based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc:

Leasehold land is amortised over the duration of the lease.

Pursuant to the Act, being effective from 1 April 2014, the Company has revised the depreciation rates on fixed assets as per the useful life specified in Part 'C of Schedule II of the Act. Consequently, depreciation charge for the period from 1 April 2014 to 31 March 2015 is lower by Rs 48.91 Millions due to change in the estimated useful life of certain assets wherein the opening carrying value as at 1 April 2014 is depreciated over the remaining useful life. Written down value of the assets with balance useful life Nil of Rs 0.85 Million has been charged off to Profit & Loss Account.

e) Impairment of assets

In accordance with AS 28 'Impairment of Assets', the carrying amounts of the Company's assets are reviewed at each Balance Sheet date to determine whether there is any impairment. Impairment loss, if any, is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Impairment loss is recognised in the statement of profit and loss or against revaluation surplus, where applicable. If at the balance sheet date there is an indication that previously assessed impairment loss no longer exists the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to maximum of depreciated historical cost.

f) Investments

Long term investments are carried at cost. Provision for diminution, is made to recognise a decline, other than temporary in the value of long term investments and is determined separately for each individual investment. The fair value of a long term investment is ascertained with reference to its market value. Current investments are carried at lower of cost and fair value, computed separately in respect of each category of investment. Any gain or loss on disposal of an investment is recognised in the statement of profit and loss.

g) Inventories

Raw material, packing material, stores, spares and consumables are valued 'at cost'. Work-in-progress and finished goods are valued at lower of cost and net realisable value. Cost Comprises all the cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

h) Sales

Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer, and is stated net of trade discount and exclusive of sales tax but inclusive of excise duty. Interest income is recognised on time proportion basis.

i) Foreign currency transactions

Initial recognition

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange difference, if any, arising out of transactions settled during the year are recognized in the Profit and Loss account.

Monetary Assets and Liabilities denominated in foreign currencies as at the Balance Sheet date are translated at closing exchange rate on that date. The exchange differences if any, are recognized in the Profit and Loss account and related Assets and Liabilities are accordingly restated in the Balance Sheet.

j) Retirement Benefits

Provision for Gratuity and Leave Encashment are made and provided on actuarial valuation basis. Other retirement benefits are accounted as per Company's policy.

k) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term investments/deposit with a original maturity of three months or less.

I) Proposed Dividend

Dividend recommended by the Board of directors is provided for in the accounts, pending approval at the Annual General meeting.

m) Provisions and contingencies

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

Provision reviews at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent liabilities are disclosed for (i) Possible obligations which will be confirmed only by 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 amount of the obligation cannot be made. Contingent Liabilities are not recognised but are disclosed in the notes.

n) Earnings per share (EPS)

Basic EPS is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted EPS is calculated using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year except where the result would be anti dilutive.

o) Excise Duty and Custom Duty

Excise Duty/ Custom Duty has been accounted on the basis of payments made in respect of goods cleared. Centavos raw materials and capital goods has been accounted for, by reducing the purchase cost of raw materials and capital goods respectively.

p) Segment Reporting

In accordance with the requirements of Accounting Standard -17, Segment Reporting issued by The Institute of Chartered Accountants of India, The Company's Business Segment is "Manufacturing of Agrochemicals" and hence it has no other reportable segment.


Mar 31, 2014

1. Basis of preparation of Financial statement

(a) These Financial statement has been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the accounting principles in India, the applicable accounting standards notified under 211 (3C) and the other relevant provisions of the Companies Act, 1956.

(b) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Use of Estimates

The preparation of financial statements is in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial the reported amounts of revenues and expenses during the reporting period. Differences between actual results are recognized in the period in which the results are known/materialized.

3. Fixed Assets & Capital Work-In-Progress

(a) Fixed Assets are accounted at cost of acquisition or construction less depreciation. The company capitalized all direct and indirect costs relating to the acquisition and installation of fixed assets, interest on borrowed funds, if any used to finance acquisition / construction of fixed assets are ready for commercial use.

(b) Capital Work-In-Progress comprises outstanding advances paid to acquire Fixed Assets and cost of Fixed Assets that are not yet installed.

4. Depreciation and Amortization

a) Depreciation has been provided on straight-line method at the rates and in the manner specified in schedule XIV to the companies Act, 1956. Depreciation is provided on pro-rata to the period of use.

b) Leasehold land is amortized over the period of lease.

5. Sales

Revenue from sale of products includes sale value of goods and excise duty collected thereon, but excludes sales tax.

Sales turnover are stated at net of trade discount and rebates granted during the ordinary course of business.

6. Inventories

Inventories of Raw Materials, Packing Material, Stores and Spares are valued ''At Cost''. Finished Goods and work in Progress are stated ''at Cost or Net Realisable Value'' whichever is lower''. Cost Comprise all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

7. Investments

Investments are classified into current and long-term Investments. Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost.

8. Impairment of Fixed Assets

At each Balance Sheet date, the company reviews the carrying value of tangible and intangible assets for any possible impairment. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price or estimated future cash flows, which are discounted to their present value based on appropriate discount rates. During the year no provision for impairment of fixed assets has been made.

9. Excise Duty and Customs Duty

Excise duty / Customs duty has been accounted on the basis of payments made in respect of goods Cleared. Cenvat credit on raw materials and capital goods has been accounted for, by reducing the purchase cost of raw materials and capital goods respectively.

10. Segment Reporting

In accordance with the requirement of Accounting Standard - 17, Segment Reporting issued by the Institute of Chartered Accountants of India, the Company''s Business Segment is "Manufacturing of Agro and Pharma Chemicals" and hence it has no other reportable segment.

11. Foreign Currency Transaction

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognized in the profit & loss account.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rate on that date. The exchange differences, if any, are recognized in the profit and loss account and related assets and liabilities are accordingly restated in the balance sheet.

12. Retirement Benefits

Provision for Gratuity is made and provided on actuarial valuation basis. Other retirement benefits are accounted as per company''s policy.


Mar 31, 2013

1. Basis of preparation of Financial statement

(a) These Financial statement has been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under 211 (3C) and the other relevant provisions of the Companies Act, 1956.

(b) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial the reported amounts of revenues and expenses during the reporting period. Differences between actual results are recognized in the period in which the results are known/ materialized.

3. Fixed Assets & Capital Work-In-Progress

(a) Fixed Assets are accounted at cost of acquisition or construction less depreciation. The Company capitalized all direct and indirect costs relating to the acquisition and installation of fixed assets, Interest on borrowed funds, if any used to finance acquisition / construction of fixed assets are capitalized till the date of Commercial production.

(b) Capital Work-In-Progress comprises outstanding advances paid to acquire Fixed Assets and cost of Fixed Assets that are not yet installed.

4. Depreciation and Amortization

a) Depreciation has been provided on straight-line method at the rates and in the manner specified in schedule XIV to the companies Act, 1956. Depreciation is provided on pro-rata to the period of use.

b) Leasehold land is amortized over the period of lease.

5. Sales

Revenue from sale of products includes sale value of goods and excise duty collected thereon, but excludes sales tax.

Sales turnover are stated at net of trade discount and rebates granted during the ordinary course of business.

6. Inventories

Inventories of Raw Materials, Packing Material, Stores and Spares are valued ''At Cost''. Finished Goods and work in Progress are stated ''at Cost or Net Realisable Value'' whichever is lower''. Cost Comprise all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

7. Investments

Investments are classified into current and long-term Investments. Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost.

8. Impairment of Fixed Assets

At each Balance Sheet date, the Company reviews the carrying value of tangible and intangible assets for any possible impairment. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price or estimated future cash flows, which are discounted to their present value based on appropriate discount rates. During the year no provision for impairment of fixed assets has been made.

9. Excise Duty and Customs Duty

Excise duty / Customs duty has been accounted on the basis of payments made in respect of goods Cleared. Cenvat credit on raw materials and capital goods has been accounted for, by reducing the purchase cost of raw materials and capital goods respectively.

10. Segment Reporting

In accordance with the requirement of Accounting Standard – 17, Segment Reporting issued by the Institute of Chartered Accountants of India, the Company''s Business Segment is "Manufacturing of Agro and Pharma Chemicals" and hence it has no other reportable segment.

11. Foreign Currency Transaction

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognized in the profit & loss account.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rate on that date. The exchange differences, if any, are recognized in the profit and loss account and related assets and liabilities are accordingly restated in the balance sheet.

12. Retirement Benefits

Provision for Gratuity & Leave encashment are made and provided on actuarial valuation basis. Other retirement benefits are accounted as per Company''s policy.

13. Earning per share (EPS)

The numerator and denominator used to calculate Basic and Diluted Earning per Share:


Mar 31, 2012

I. Basis of preparation of financial statements

These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under 211 (30 and the other relevant provisions of the Companies Act, 1956.

The company generally fallows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

II. Use of Estimates

The preparation or financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial the reported amounts of revenues and expenses during the reporting period. Differences between actual results and are recognised in the period in which the results are known/materialised.

III. Fixed Assets and Capital Work in Progress

a) Fixed assets as accounted at cost of acquisition or construction less depreciation. The company capitalised all direct and indirect costs relating to the acquisition and installation of fixed assets. Interest on borrowed funds, if any used to finance acquisition/construction of fixed assets are capitalised till date of commercial production.

b) Capital work in progress comprises outstanding advances paid to acquire Fixed Assets and cost of Fixed Assets that are not yet intalled.

IV. Depreciation and Amortisation

a) Depreciation has been provided on straight-line method at the rates and in the manner specified in schedule XIV to the companies Act, 1956. Depreciation is provided on pro-rata to the period of use,

b) Leasehold land is amortised over the period of lease.

V. Sales

Revenue from sale of products includes sale value of goods and excise duty collected thereon, but excludes sales tax.

Sales turnover are staled at net of trade discount and rebates granted during the ordinary course of business.

VI. Inventories

Inventories of Raw Materials, Packing Material, Stores and Spares are valued 'at cost'. Finished Goods and Work in Progress are stated 'at cost or net realisable value, whichever is lower. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

VII. Investments

Investments are classified into Current and Long-term Investments. Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost.

VIII. Impairment of Fixed Assets

At each Balance Sheet date, the company reviews the carrying value of tangible and intangible assets for any possible impairment. An impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset's net selling price or estimated future cash flows, which are discounted to their present value based on appropriate discount rates. During the year no provision for Impairment of fixed assets has been made.

IX. Excise Duty and Custom Duty

Excise duty/Customs duty has been accounted on the basis of payments made in respect of goods Cleared, Cenvat credit on raw materials and capital goods has been accounted for, by reducing the purchase cost of raw materials and capital goods respectively,

X. Segment Reporting

In accordance with the requirement of Accounting Standard -17, Segment Reporting issued by the Institute of Chartered Accountants of India, the Company's Business Segment is "Manufacturing of Agro and Pharma Chemicals" and hence it has no other reportable segment.

Thus the segment wise revenue, Segment wise result, total carrying amount of Segment wise assets and Segment wise liability, total cost incurred to acquire Segment wise assets, total amount of charge for deprecation during the year, is as reflected in the Financial Statement as of and for the year ended March 31, 2012.

XI. Foreign Currency Transaction

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognized in the profit & loss account.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rate on that date. The exchange differences if any, are recognised in the profit and loss account and related assets and liabilities are accordingly restated in the balance sheet

XII. Retirement Benefits

Provision for Gratuity & Leave encashment are made and provided on actuarial valuation basis. Other retirement benefits are accounted as per company's policy.

XIII. In absence of information with the company, the nature of suppliers who are registered as micro. Small or medium enterprises under the Micro, Small and Medium Enterprises Development Act 2006, as at 31st March 2012 have not been given.


Mar 31, 2011

1. Basis of preparation of Financial statement

(a) The Financial statement has been prepared under the historical cost convention in accordance with the generally accepted accounting principles and applicable mandatory. Accounting Standards issued by the Institute of Chartered Accountants of India.

(b) The company generally follows mercantile system of accounting and recognizes significant items of i ncome and expenditure on accrual basis.

2. Fixed Assets & Capital Work-in-Progress

(a) Fixed Assets are accounted at cost of acquisition or construction less depreciation. The company capitalized all direct and indirect costs relating to the acquisition and installation of fixed assets, i nterest on borrowed funds, if any used to finance acquisition / construction of fixed assets are ready for commercial use.

(b) Capital Work-in-Progress comprises outstanding advances paid to acquire Fixed Assets and cost of Fixed Assets that are not yet i nstal led.

3. Depreciation and Amortization

a) Depreciation has been provided on straight-line method at the rates and in the manner specified in schedule XlVto the companies Act, 1956. Depreciation is provided on pro-rata to the period of use.

b) Leasehold land is amortized over the period of lease.

4. Sales

Revenue from sale of products includes sale value of goods and excise duty collected thereon, but excludes sales tax.

Sales turnover are stated at net of trade discount and rebates granted during the ordinary course of business.

5. Inventories

The inventories are valued at lower of cost and net realizable value. The basis of determining cost of various categories of inventories are as fo I lows:

i. Raw Materials and Stores : At cost

ii. Finished Goods : At cost or market value, whichever is lower.

iii. Work-in-Progress : Atcostor net releasable value, whichever is lower. Cost includes

material cost, proportionate share of labour & other man ufacturi ng overheads.

6. Miscel I aneous Expend itu re

Deferred revenue expenditure is being written off over a period of five years.

7. Investments

Long Term Investments are carried at cost of acquisition. Current Investment are stated at lower of cost and fair market value.

8. Impairment of Fixed Assets

At each Balance Sheet date, the company reviews the carrying value of tangible and intangible assets for any possible impairment. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset's net selling price or estimated future cash flows, which are discounted to their present value based on appropriate discount rates. During the year no provision for impairment of fixed assets has been made.

9. Excise Duty and Customs Duty

Excise duty/Customs duty has been accounted on the basis of payments made in respect of goods Cleared. Cenvat credit on raw materials and capital goods has been accounted for, by reducing the purchase cost of raw materials and capital goods respectively.

10. Segment Reporting

In accordance with the requirement of Accounting Standard -17, Segment Reporting issued by the Institute of Chartered Accountants of India, the Company's Business Segment is "Manufacturing of Agrochemicals and Pharma Intermediates" and hence it has no other reportable segment.

Thus the segment wise revenue, Segment wise result, total carrying amount of Segment wise assets and Segment wise liability, total cost incurred to acquire Segment wise assets, total amount of charge for deprecation during the year, isas reflected inthe Financial Statement as of and for the year ended March 31,2011.

11. Foreign Currency Transaction

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognized in the profit & loss account.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rate on that date. The exchange differences, if any, are recognized in the profit and loss account and related assets and liabilities are accordingly restated in the balance sheet.


Mar 31, 2010

1. Basis of preparation of Financial statement

a. The Financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI).

b. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

2. Fixed Assets & Capital Work-in-Progress

a. Fixed Assets are accounted at cost of acquisition or construction less depreciation. The Company capitalises all direct and indirect costs relating to the acquisition and installation of fixed assets, interest on borrowed funds, if any used to finance acquisition/construction of fixed assets are ready for commercial use.

b. Capital Work-in-Progress comprises outstanding advances paid to acquire Fixed Assets and cost of Fixed Assets that are not yet installed.

3. Depreciation and Amortization

a. Depreciation has been provided on straight-line method at the rates and in the manner specified in schedule XIV to the companies Act, 1956. Depreciation is provided on pro-rata to the period of use.

b. Leasehold land is amortized over the period of lease.

4. Sales

Revenue from sale of products includes sale value of goods and excise duty collected thereon, but excludes sales tax.

Sales turnover are stated at net of trade discount and rebates granted during the ordinary course of business.

5. Inventories

The inventories are valued at lower of cost and net realizable value. The basis of determining cost of various categories of inventories is as follows:

i. Raw Materials and Stores : At Cost

ii. Finished Goods : Atcost or market value, whicheveris lower.

iii. Work-in-Progress : At cost or net releasable value, whichever is lower. Cost includes

material cost, proportionate share of labour & other manufacturing overheads.

6. Miscellaneous Expenditure

Deferred revenue expenditure is being written off over a period of five years.

7. Investments

Long Term Investments are carried at cost of acquisition. Current Investment are stated at lower of cost and fair market value.

8. Impairment of Fixed Assets

At each Balance Sheet date, the Company reviews the carrying value of tangible and intangible assets for any possible impairment. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is higher of the assets net selling price or estimated future cash flows, which are discounted to their present value based on appropriate discount rates. During the year no provision for impairment of fixed assets has been made.

9. Excise Duty and Customs Duty

Excise duty/Customs duty has been accounted on the basis of payments made in respect of goods Cleared. Cenvat credit on raw materials and capital goods has been accounted for, by reducing the purchase cost of raw materials and capital goods respectively.

10. Segment Reporting

In accordance with the requirement of Accounting Standard-17, Segment Reporting issued by the Institute of Chartered Accountants of India, the Companys Business Segment is "Manufacturing of Agrochemicals and Pharma Intermediates" and hence it has no other reportable segment.

Thus the segment wise revenue, Segment wise result, total carrying amount of Segment wise assets and Segment wise IiabiIity, total cost incurred to acquire Segment wise assets, total amount of charge for deprecation during the year, is as reflected in the Financial Statement as of and for the year ended March 31,2010.

11. Foreign Currency Transaction

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognized in the profit & loss account.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rate on that date. The exchange differences, if any, are recognized in the profit and loss account and related assets and liabilities are accordingly restated in the balance sheet.

12. Retirement Benefits

Provision for Gratuity is made and provided on actuarial valuation basis. Other retirement benefits are accounted as per Companys policy.

13. In the absence of information available with the Company, the nature of suppliers who are registered as Micro, Small or medium enterprises under the Micro, Small and Medium Enterprises Development Act 2006, as at 31st March 2010, have not been given.


Mar 31, 2009

(a) The Financial statement has been prepared under the historical cost convention in accordance with the generally accepted accounting principles and applicable mandatory. Accounting Standards issued by the Institute of Chartered Accountants of India.

(h) The Company generally follows mercantile system of accounting and recognizes-significant items of income and expenditure on accrual basis.

2. Fixed Assets & Depreciation

(a) Fixed Assets are accounted at cost of acquisition or construction less depreciation. The company capitalized all direct and indirect costs relating to the acquisition and installation of fixed assets, interest an borrowed funds, if any used to finance acquisition / construction of fixed assets are ready for commercial use.

(b) Depreciation has been provided on straight-line method at the rates and in the manner specified in schedule XIV to the companies Act, 1956. Depreciation is provided on pro-rata to the period of use.

(c) Leasehold land is amortized over the period of lease.

3. Sales

Revenue from sale of products includes sale value of goods and excise duty collected thereon. Sales turnover are stated at net of trade discount and rebates granted during the ordinary course of business.

4. Inventories

The inventories are valued at lower of cost and net realizable value. The basis of determining cost of various categories of inventories is as follows:

i. Raw Materials and Stores : At Cost

ii. Finished Goods : At cost or market value, whichever is lower.

iii. Work-in-Progress : At cost or net releasable value, whichever is lower. Cost

includes material cost, proportionate share of labour & other manufacturing overheads.

Miscellaneous Expenditure

Deferred revenue expenditure is being written off over a period of five years.

6. Investments

Long Term Investments are carried at cost of acquisition. Current Investment are stated at lower of cost and fair market value.

7. Impairment of Fixed Assets

At each Balance Sheet date, the company reviews the carrying value of tangible and intangible assets for any possible impairment. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is higher of the assets net selling price or estimated future cash flows, which are discounted to their present value based on appropriate discount rates. During the year no provision for impairment of fixed assets has been made.

8. Excise Duty and Customs Duty

Excise duty / Customs duty has been accounted on the basis of payments made in respect of goods Cleared. Cenvat credit on raw materials and capital goods has been accounted for, by reducing the purchase cost of raw materials and capital goods respectively.

9. Segment Reporting

In accordance with the requirement of Accounting Standard - 17, Segment Reporting issued by the Institute of Chartered Accountants of India, the Companys Business Segment is "Manufacturing of Agro and Pharma Chemicals" and hence it has no other reportable segment.

Thus the segment wise revenue. Segment wise result, total carrying amount of Segment wise assets and Segment wise liability, total cost incurred to acquire Segment wise assets, total amount of charge for deprecation during the year, is as reflected in the Financial Statement as of and for the year ended March 31, 2009.

10. Foreign Currency Transaction

Purchase end sale in foreign currency are accounted at equivalent Rupee value incurred/ earned at the rate prevailing at the time of transaction date or at forward exchange contract rate, wherever applicable. Any difference in the exchange rate afterwards is separately accounted in difference in foreign exchange account.

11.Retirement Benefits

Provision for Gratuity" is made and provided on actuarial valuation basis. Other retirement benefits are accounted as per companys policy

12.In absence of information with the company, the nature of suppliers who are registered as micro. Small or medium enterprises under the Micor, Small and Medium Enterprises Development Act 2006, as at 31st March 2009 have not been given