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Accounting Policies of BCL Industries Ltd. Company

Mar 31, 2023

Significant Accounting Policies

A. Basis of Preparation & Presentation
A.1. Statement of Compliance

These Financial Statements have been prepared in accordance with the Indian Accounting Standards (referred to as “Ind AS”) as
prescribed under section 133 of the Companies Act, 2013 read with Rule 3 of Companies (Indian Accounting Standards) Rules, as
amended from time to time.

These Financial Statements for the year ended 31-03-2023 were authorized for issue by the Board of Directors on 29th May 2023.
A.2. Basis of Measurement

The Financial Statements have been prepared on a historical cost basis except for certain Financial Assets/Liabilities measured at
fair value. The methods used to measure fair values are discussed further in notes to Financial Statements.

A.3. Functional and Presentation Currency

These Financial Statements are presented in Indian Rupees (Rs.), which is the Company''s functional currency. All Financial
information presented in Indian Rupees has been rounded to the nearest lakhs (up to two decimals), except when otherwise
indicated.

A.4. Current and Non-Current Classification

The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.

An asset is current when it is:

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

• Held primarily for the purpose of trading;

• Expected to be realized within twelve months after the Reporting period; or

• Cash or Cash Equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after
the Reporting period.

Current assets include the current portion of Non-Current Assets.

All other Assets are classified as Non-Current.

A liability is Current when:

• It is expected to be settled in a normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the Reporting period; or

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

Current liabilities include the current portion of non-current liabilities.

All other liabilities are classified as Non-Current.

Deferred tax assets/liabilities are classified as non-current.

Operating Cycle

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

Measurement of Fair Values

A number of the Company''s Accounting Policies and disclosures require the measurement of fair values, for Financial Assets and
Liabilities.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as
follows:

- Level 1: Quoted prices (unadjusted) in active markets for identical Assets or Liabilities.

- Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as
prices) or indirectly (i.e., derived from prices)

- Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the
inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value
measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to
the entire measurement.

The Company recognizes transfer between levels of the fair value hierarchy at the end of the Reporting period during which the
change has occurred.

B. Recent Accounting Pronouncements: Ministry of Corporate Affairs (“MCA”) notifies new Standards or amendments to the
existing Standards under Companies (Indian Accounting Standards) Rules as issued from time to time.

On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below.

Ind AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material Accounting
Policies rather than their significant Accounting Policies. The effective date for adoption of this amendment is annual periods
beginning on or after April 1, 2023. The Company has evaluated the amendment and the It does not have any impact on the
current Standalone Financial Statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition
of ‘Accounting Estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from
changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April
1, 2023. The Company has evaluated the amendment and there is no impact on its Standalone Financial Statements.

Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply
to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment
is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its
Standalone Financial Statement.

C. Summary of Significant Accounting Policies

A summary of the significant Accounting Policies applied in the preparation of the Financial Statements are as given below. These
accounting policies have been applied consistently to all periods presented in the Standalone Financial Statements.

C.1. Property, Plant, and Equipment

C.1.1. Initial Recognition and Measurement

Items of Property, Plant, and Equipment are stated at cost, which includes capitalized borrowing costs, less accumulated
depreciation, and accumulated 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, any directly attributable cost of bringing the items to its working
condition for its intended use and estimated cost of dismantling and removing the item and restoring the site on which it is located.

The cost of self-constructed property, plant, and equipment comprises the cost of materials and direct labour, any other costs
directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and removing
the item and restoring the site on which it is located.

If significant parts of an item of property, plant, and equipment have different useful lives, then they are accounted for as separate
items (major components) of property, plant, and equipment.

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

C.1.2. Subsequent Costs

Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable that future economic
benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured reliably.

The cost of replacing part of an item of Property, Plant, and Equipment is recognized in the carrying amount of the item if it is
probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured
reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of Property, plant, and
equipment are recognized in Profit or Loss as incurred.

C.1.3. Decommissioning Costs

The present value of the expected cost for the decommissioning of the asset after its use is included in the cost of the respective
asset if the recognition criteria for a provision are met.

C.1.4. De-recognition

Property, Plant, and Equipment are derecognized when no future economic benefits are expected from their use or upon their
disposal. Gains and Losses on disposal of an item of Property, Plant, and Equipment are determined by comparing the proceeds
from disposal with the carrying amount of Property, Plant, and Equipment, and are recognized in the Statement of Profit and Loss.

C.1.5. Capital Work-In-Progress

Capital Work-In-Progress represents expenditure incurred in respect of the Property are carried at cost. Cost includes related
acquisition expenses, development/ construction costs, borrowing costs, and other direct expenditures.

Depreciation is charged in a Statement of Profit and Loss on a Written Down value method except in the case of Plant and
Machinery on which depreciation has been provided on a Straight-Line basis based on a technical evaluation and management
assessment. Useful Life as per management estimate is given below:

C.3. Leases

The Company, as a lessee, recognizes a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys
the right to control the use of an identified asset. The contract conveys the right to control the use of an identified asset if it
involves the use of an identified asset and the Company has substantially all of the economic benefits from the use of the asset
and has the right to direct the use of the identified asset. The cost of the right-of-use asset shall comprise the amount of the initial
measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial
direct costs incurred. The right-of-use assets are subsequently measured at cost less any accumulated depreciation, accumulated
impairment Losses, if any, and adjusted for any remeasurement of the lease liability. The right-of-use assets are depreciated using
the Straight-Line method from the commencement date over the shorter lease term or useful life of a right-of-use asset. The
Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of
the lease.

C.4. Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable Taxes, Trade Discount, and Rebates less Accumulated
Amortization/Depletion and Impairment Losses if any. Such cost includes purchase price, borrowing costs, and any cost directly
attributable to bringing the asset to its working condition for the intended use, net charges on foreign exchange contracts, and
adjustments arising from exchange rate variations attributable to the Intangible Assets. Subsequent costs are included in the
asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the entity and the cost can be measured reliably. Other Indirect Expenses incurred in relating
to a project, net of income earned during the project development stage prior to its intended use, are considered as Pre-Operative
Expenses and disclosed under Intangible Assets Under Development. Gains or Losses arising from the derecognition of an
Intangible Asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are
recognized in the Statement of Profit and Loss when the asset is derecognized. The Company''s intangible assets comprise assets
with finite useful life which are amortized over the period of their expected useful life.

C.5.1. Recognition and Initial Measurement

Investment properties are properties held to earn rentals or for capital appreciation, or both. Investment properties are measured
initially at their cost of acquisition, including transaction costs. The cost comprises purchase price, borrowing cost if capitalization
criteria are met, and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount
and rebates are deducted in arriving at the purchase price when significant parts of investment property are required to be
replaced at intervals, the Company depreciates them separately based on their specific useful life.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to Company. All other repair and maintenance costs are
recognized in the Statement of Profit and Loss as incurred.

C.5.2 Subsequent Measurement (Depreciation and Useful Lives)

Investment properties are subsequently measured at cost less accumulated depreciation and impairment Losses if any.
Depreciation on investment properties is provided on the Written Down method based on a technical evaluation and management
assessment. Useful Life as per management estimate is given below:

C.5.3 De-recognition

Investment properties are de-recognized either when they have been disposed of or when they are permanently withdrawn from
use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the
carrying amount of asset is recognized in Profit and Loss in the period of de-recognition.

C.6. Borrowing costs

Borrowing costs are interest and other costs incurred in connection with the borrowings of funds. Borrowing costs that are directly
attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such asset until such time
the assets are substantially ready for their intended use. Qualifying assets are assets that take a substantial period of time to get
ready for their intended use or sale.

Capitalization of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for their
intended uses are complete. Borrowing costs consist of interest and other costs that an entity incurs in connection with the
borrowing of funds. Income earned on the temporary investment of the borrowings pending their expenditure on the qualifying
assets will be deducted from the borrowing costs eligible for capitalization in case such a situation arises.

Other borrowing costs are recognized as an expense in the year in which they are incurred.

C.7. Impairment of Non-Financial assets

The carrying amounts of the Company''s Non-Financial Assets are reviewed at each Reporting date to determine whether there is
any indication of impairment considering the provisions of Ind AS 36 ‘Impairment of Assets''. If any such indication exists, then the
asset''s recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to disposal and its value in
use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount

rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of
impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates
cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash¬
generating unit”, or “CGU”). To determine the impairment of a corporate asset, the recoverable amount is determined for the CGUs
to which the corporate assets belong.

Impairment Losses recognized in prior periods are assessed at each Reporting date for any indications that the Loss has decreased
or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the extent that the asset''s carrying amount does not exceed the carrying amount
that would have been determined, net of Depreciation or Amortization, if no Impairment Loss had been recognized.

C.8. Inventories

Inventories are valued at the lower of Cost or Net Realisable Value after providing for obsolescence and other Losses wherever
considered necessary. Cost of inventories comprises of cost of purchase, cost of conversion, and other costs incurred in bringing
the inventories to their present location and condition. The cost of purchase consists of the purchase price including duties
and taxes other than those subsequently recoverable by the enterprise from the taxing authorities, freight inwards, and other
expenditures directly attributable for its acquisition.

Net Realizable Value is the estimated selling price in the ordinary course of business, less estimated costs of completion, and the
estimated costs necessary to make the sale.


Mar 31, 2018

A. SIGNIFICANT ACCOUNTING POLICIES

a. Basis of preparation

(1) Statement of compliance

These financial statements are prepared on accrual basis of accounting and comply with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and subsequent amendments thereto, the Companies Act, 2013 (to the extent notified and applicable). These are Company’s first Ind AS compliant standalone financial statements and Ind AS 101 ‘First Time Adoption of Indian Accounting Standards’ has been applied.

For all the periods upto and including 31st March, 2017, the Company prepared its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) in India, accounting standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, the relevant provisions of the Act to extent applicable. The Company followed the provisions of Ind AS 101 in preparing its opening Ind AS Balance Sheet as of the date of transition, viz. 1st April 2016. Some of the Company’s Ind AS accounting policies used in the opening Balance Sheet are different from its previous GAAP policies applied as at 31st March, 2016, and accordingly the adjustments were made to restate the opening balances as per Ind AS. The resulting adjustments arose from events and transactions before the date of transition to Ind AS. Therefore, as required by Ind AS 101, those adjustments were recognised directly through retained earnings as at 1st April 2016. This is the effect of the general rule of Ind AS 101 which is to apply Ind AS retrospectively.

An explanation of how the transition to Ind AS has affected the reported financial position, financial performance and cash flows of the Company is provided in note 37.

These financial statements were authorized for issue by Board of Directors on 30th May, 2018.

(2) Basis of measurement

The financial statements have been prepared on the historical cost basis except for certain financial assets/liabilities measured at fair value. The methods used to measure fair values are discussed further in notes to financial statements.

(3) Functional and presentation currency

These financial statements are presented in Indian Rupees (Rs.), which is the Company’s functional currency. All financial information presented in Indian Rupees has been rounded to the nearest lakhs (upto two decimals), except as stated otherwise.

(4) Current and non-current classification

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

An asset is current when it is:

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

- Held primarily for the purpose of trading;

- Expected to be realized within twelve months after the reporting period; or

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

Current assets include current portion of non-current financial assets.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period; or

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

Current liabilities include current portion of non-current financial liabilities.

All other liabilities are classified as non-current.

Deferred tax assets/liabilities are classified as non-current. Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

(5) Measurement of fair values

A number of the Company’s accounting policies and disclosures require the measurement of fair values, for financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values. This includes a central valuation team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the board of directors.

The central valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services,is used to measure fair values, then the central valuation team assesses the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

Significant valuation issues are reported to the Company’s board of directors.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

-Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

-Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

-Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfer between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Further information about the assumptions made in measuring fair values is included in the following notes:

- Note C- financial instruments

b. Significant accounting policies

A summary of the significant accounting policies applied in the preparation of the financial statements are as given below. These accounting policies have been applied consistently to all periods presented in the standalone financial statements.

(1) Property, plant and equipment

1.1 Initial recognition and measurement

Items of property, plant and equipment are measured at cost, which included, accumulated depreciation and accumulated impairment losses, if any.

Cost of an items of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the items to its working condition for its intended use and estimated cost of dismantling and removing the item and restoring the site on which it is located.

The cost of a self-constructed property, plant and equipment comprises the cost of materials and direct labour, any other costs directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

1.2 Subsequent costs

Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable that future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured reliably.

The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property, plant and equipment are recognized in profit or loss as incurred.

1.3 Decommissioning costs

The present value of the expected cost for the decommissioning of the asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.

1.4 Derecognition

Property, plant and equipment is derecognized when no future economic benefits are expected from their use or upon their disposal. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized in the statement of profit and loss.

1.5 Transition to Ind AS

The Company has elected to avail the option under Ind AS 101 by not applying the provisions of Ind AS 16 retrospectively and continue to use the previous GAAP carrying amount as a deemed cost under Ind AS at the date of transition to Ind AS. Therefore, the carrying amount of property, plant and equipment as per the previous GAAP as at 1 April 2016, i.e. the Company’s date of transition to Ind AS, was maintained on transition to Ind AS.

(2) Depreciation

Depreciation is recognized in statement of profit and loss on a written down value except in case of plant and machinery installed on or after 1 April, 1990, on which depreciation has been provided on over the estimated useful lives of each part of an item of property, plant and equipment specified in schedule II to the Companies Act, 2013.

Depreciation on additions to/deductions from property, plant & equipment during the year is charged on pro-rata basis from/ up to the date in which the asset is available for use/disposed.

Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. Based on technical evaluation and consequent advice, the management believes that its estimates of useful lives as given above best represent the period over which management expects to use these assets.

(3) Borrowing costs

Borrowing costs are interest and other costs incurred in connection with the borrowings of funds. Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such asset until such time the assets are substantially ready for their intended use. Qualifying assets are assets which take a substantial period of time to get ready for their intended use or sale.

When the Company borrows funds specifically for the purpose of obtaining a qualifying asset, the borrowing costs incurred are capitalized. When Company borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the capitalization of the borrowing costs is computed based on the weighted average cost of general borrowing that are outstanding during the period and used for the acquisition or construction of the qualifying asset.

Capitalization of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for their intended uses are complete. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Income earned on temporary investment of the borrowings pending their expenditure on the qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other borrowing costs are recognized as an expense in the year in which they are incurred.

(4) Impairment of non-financial assets

The carrying amounts of the Company’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment considering the provisions of Ind AS 36 ‘Impairment of Assets’. If any such indication exists, then the asset’s recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to disposal and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”, or “CGU”).

The Company’s corporate assets (eg. Central office building for providing support to various CGUs) do not generate independent cash inflows. To determine impairment of a corporate asset, recoverable amount is determined for the CGUs to which the corporate assets belongs.

Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(5) Inventories

Inventories are valued at the lower of cost and net realisable value after providing for obsolescence and other losses wherever considered necessary. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The cost of purchase consists of the purchase price including duties and taxes other than those subsequently recoverable by the enterprise from the taxing authorities, freight inwards and other expenditure directly attributable for its acquisition.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

The comparison of cost and net realizable value is made on an item-by-item basis.

The methods of determining cost of various categories of inventories are as under:

(6) Provisions and contingent liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Contingent liabilities are disclosed on the basis of judgment of the management/independent experts. These are reviewed at each balance sheet date and are adjusted to reflect the current management estimate.

(7) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

(8) Foreign currency transactions and translation

Transactions in foreign currencies are initially recorded at the functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange prevailing at the reporting date (i.e. at closing rate). Exchange differences arising on settlement or translation of monetary items are recognized in profit or loss in the year in which it arises except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets, are capitalized as cost of assets. Additionally, exchange gains or losses on foreign currency borrowings taken prior to April 1, 2017 which are related to the acquisition or construction of qualifying assets are adjusted in the carrying cost of such assets.

Non-monetary items are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in OCI or Statement of Profit and Loss are also recognized in OCI or Statement of Profit and Loss, respectively).

(9) Revenue

Revenue is recognized when the significant risks and rewards of ownership have been transferred to the customer, it is probable that the economic benefits associated with the transactions will flow to the entity, the associated costs can be estimated reliably, there is no continuing management involvement, and the amount of revenue can be measured reliably.

Revenue from rendering of services is recognised when the performance of agreed contractual task has been completed.

Revenue from operations includes sale of goods & services net of service tax & excise duty and adjusted for discounts (net), and gain/loss on corresponding hedge contracts.

In Real Estate Units percentage completion method adopted by the Company as per guidance note “Accounting for Real Estate Transaction (Revised 2012)” issued by the ICAI on 1st April, 2012 except those projects whichwere started before 2012 where project completion method had already been adopted

(10) Other income

Interest income is recognized, when no significant uncertainty as to measurability or collectability exists, on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

(11) Employee Benefits

11.1 Short term employee benefits

Short- term employee benefit obligations are measured on an undiscounted basis and are expenses as the relative service is provided. A liability is recognised for the amount expected to be paid e.g., under short-term cash bonus, if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the amount of obligation can be estimated reliably.

11.2 Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into separate entities and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognized as an employee benefits expense in profit or loss in the period during which services are rendered by employees.

The Company pays fixed contribution to government administered provident fund scheme at predetermined rates. The contributions to the fund for the year are recognized as expense and are charged to the profit or loss.

11.3 Defined benefit plan

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company’s liability towards gratuity is in the nature of defined benefit plans.

The Company’s net obligation in respect of defined benefit plan is calculated separately by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. Any unrecognized past service costs are deducted. The discount rate is based on the prevailing market yields of Indian government securities as at the reporting date that have maturity dates approximating the terms of the Company’s obligations and that are denominated in the same currency in which the benefits are expected to be paid.

The calculation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the Company, the recognised asset is limited to the total of any unrecognised past service costs. Any actuarial gains or losses are recognised in other comprehensive income in the period in which they arise.

(12) Income tax

Income tax expense comprises current and deferred tax. Current tax expense is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized in OCI or equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted and as applicable at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority.

Deferred tax is recognized in profit or loss except to the extent that it relates to items recognized directly in OCI or equity, in which case it is recognized in OCI or equity.

Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of taxable temporary differences. Deferred tax liabilities is reported in a company’s balance sheet and represents the net difference between the taxes that are paid in the current accounting period and the taxes that will be paid in the next accounting periods. The liability occurs when the accounting income is greater than the taxable income. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The company has Deferred Tax Liability (net of Deferred tax Asset) as at 31st March, 2018 and the major components of deferred tax liability as on 31st March, 2018 are as per Note 16 above.

(13) Earning per share

Basic earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the financial year.

Diluted earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

(14) Operating segment

In accordance with Ind AS 108, the operating segments used to present segment information are identified on the basis of internal reports used by the Company’s Management to allocate resources to the segments and assess their performance. The Board of Directors is collectively the Company’s ‘Chief Operating Decision Maker’ or ‘CODM’ within the meaning of Ind AS 108. The indicators used for internal reporting purposes may evolve in connection with performance assessment measures put in place.

(15) Equity investment

Equity investments in associates are measured at cost. The investments are reviewed at each reporting date to determine whether there is any indication of impairment considering the provisions of Ind AS 36 ‘Impairment of Assets’. If any such indication exists, policy for impairment of non-financial assets is followed.

(16) 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.

16.1 Financial assets Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting.

Subsequent measurement

Debt instruments at amortized cost

A ‘debt instrument’ is measured at the amortized cost if both the following conditions are met:

(a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

(b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the EIR method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss. This category generally applies to trade and other receivables.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognized (i.e. removed from the Company’s balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

(a) Financial assets that are debt instruments, and are measured at amortized cost e.g., loans, debt securities, deposits, trade receivables and bank balance.

(b) Trade receivables under Ind AS 18.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12-month ECL.

16.2 Financial liabilities Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, borrowings and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at amortized cost

After initial measurement, such financial liabilities are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance costs in the profit or loss. This category generally applies to borrowings, trade payables and other contractual liabilities.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

16.3 Offsetting

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

C. USE OF ESTIMATES AND MANAGEMENT JUDGMENTS

The preparation of financial statements requires management to make judgments, estimates and assumptions that may impact the application of accounting policies and the reported value of assets, liabilities, income, expenses and related disclosures concerning the items involved as well as contingent assets and liabilities at the balance sheet date. The estimates and management’s judgments are based on previous experience and other factors considered reasonable and prudent in the circumstances. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

In order to enhance understanding of thefinancial statements, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the standalone financial statements is as under:

(1) Useful life of property, plant and equipment

The estimated useful life of property, plant and equipment is based on a number of factors including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.

The Company reviews at the end of each reporting date the useful life of property, plant and equipment, and are adjusted prospectively, if appropriate.

(2) Recoverable amount of property, plant and equipment

The recoverable amount of plant and equipment is based on estimates and assumptions regarding in particular the expected market outlook and future cash flows. Any changes in these assumptions may have a material impact on the measurement of the recoverable amount and could result in impairment.

(3) Employee benefit plans

Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, the rate of salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate and documented. However, any changes in these assumptions may have a material impact on the resulting calculations.

(4) Leases not in legal form of lease

Significant judgment is required to apply lease accounting rules under Appendix C to Ind AS 17 ‘Determining whether an arrangement contains a lease’. In assessing the applicability to arrangements entered into by the Company, management has exercised judgment to evaluate the right to use the underlying asset, substance of the transactions including legally enforceable agreements and other significant terms and conditions of the arrangements to conclude whether the arrangement needs the criteria under Appendix C to Ind AS 17.

(5) Provisions and contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Ind AS 37, ‘Provisions, Contingent Liabilities and Contingent Assets’. The evaluation of the likelihood of the contingent events has required best judgment by management regarding the probability of exposure to potential loss. Should circumstances change following unforeseeable developments, this likelihood could alter.

(6) Liability for de-commissioning of asset

The liability for de-commissioning is measured on the basis of present estimated cost to decommission the asset, current inflation rate and discount rate. The Company considers that the assumptions used to measure its obligations are appropriate and documented. However, any changes in these assumptions may have a material impact on the resulting calculations.

d. First time adoption of Ind AS

The Company has adopted Ind AS with effect from 1st April 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April 2016. The figures for the previous period have been restated,regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

i. Share-based payment transactions

Ind AS 101 encourages, but does not require, first time adopters to apply Ind AS 102 Share based Payment to equity instruments that were vested before the date of transition to Ind AS. The Company has elected not to apply Ind AS 102 to options that vested prior to April 1, 2016.

ii. Fair value as deemed cost exemption

The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value at the transition date except for certain class of assets which are measured at fair value as deemed cost.

iii. Cumulative translation differences

The Company has elected to apply Ind AS 21 - The Effects of changes in Foreign Exchange Rate prospectively. Accordingly all cumulative gains and losses recognised are reset to zero by transferring it to retained earnings.

iv. Long Term Foreign Currency Monetary Items

The Company continues the policy of capitalizing exchange differences arising on translation of long term foreign currency monetary items.

v. Investments in subsidiaries, joint ventures and associates

The Company has elected to measure investment in subsidiaries, joint venture and associate at cost.

vi. Decommissioning liabilities

The Company has elected to apply the transitional provision with respect to recognition of Decommissioning, Restoration and Similar Liabilities.


Mar 31, 2016

1 Basis of Preparation of Financial Statements

The accounts have been prepared in accordance with the historical cost convention under accrual basis of accounting as per Indian Generally Accepted Accounting Principles (Indian GAAP). Accounts and Disclosures thereon comply with the Accounting Standards specified in Companies (Accounting Standard} Rules, other pronouncement of |CA|, provisions of the Companies Acl,2013.

2 Use of Estimates

Indian GAAP enjoins management to make estimates and assumptions that affect reported amount of assets, liabilities* revenue, expenses and contingent liabilities pertaining to years, the financial statement relate to. Actual result could differ from, such estimates. Any revision in accounting estimates is recognized prospectively from current year and material re vision, including its impact on financial Statement, is reported in notes to accounts in the year of incorporation of revision.

3 Fixed Assets Tangible As jets

Tangible assets are stated at their historical cost less accumulated depreciation, capital subsidy and impairment loss, if any. The cost of tangible assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the assets to its working condition for its intended use.

Intangible Assets

There is no intangible assets lying with the company.

4 Depreciation

Depreciation on Fixed Assets is provided to the extent of depreciable amount on Written Down Value (WDV) method except in case of plant & machinery installed on or after 1st April, 1990 on which depreciation has been provided on Straight Line Method (SLM).The depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

5 Inventories

"Inventories are valued at the lower of cost or net realizable value. Basis of determination of cost remains as follows:

a) flaw material. Packing material, Stores & Spares: Moving Weighted Average Basis

b) Work-in-progress :Cost of Input plus overhead up to the stage of completion

c) Finished Goods: Cost of Input plus Appropriate Overhead"

6 Turnover

i) Sales inclusive VAT, CST fit Excise Duty.

ii) Goods sent on consignment are accounted in sales as and when respective ''Bikri Patties" are received from the consignee?.

7 Investments

Investment are stated at cost,

S Revenue Recognisation

All incomes and expenditure are recogni7ed on accrual basis. Sales and purchases are accounted for on the bails of passing of title to the goods. merest Income is recognized on a time proportion basis taking into account the amount outstanding a n d the interest rate applicable. In Real Estate Un its percentage completion method adopted by the Company as per guidance note "Accounting for Real Estate Transaction (Revised 2012}" issued by the ICAI on 1st April, 2012 except those projects which were started before 2012 where project completion method had already been adopted.

9 Contingent Liability & Assets

I n the opinion of the Board of Directors there is n o contingent liability or asset; hence, no provision I s made.

10 Deferred Tax

Deferred Tax resulting from timing differences between book and taxable profit is accounted for using the current tax rate, to the extent that the timing differences is expected to crystallize. The major components of deferred tax assets and liabilities as on 31st March 2016 raising out of the timing differences are as per Note 4 above,

Foreign Currency Transactions

Transactions in foreign currency are accounted at exchange rate prevailing on the date of transaction. Assets & Liabilities relating to transactions involving foreign currency are converted at exchange rates prevailing at the year end, The gain / loss arising out of exchange rate difference on account of revenue transactions is adjusted in Profit and Loss Account.

Borrowing Cost

Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying assets is one that necessarily takes substantial period of time to get ready of its intended use. All other borrowing cost are charged to the Statement of Profit 4 Loss in the period in which they are incurred.

13 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before extraordinary items and tax is adjusted for the effects of transactions of n on-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

14 Retirement Benefits

Liabilities in respect of retirement benefit to employees are provided for as follow-

a) Defined Benefit Plans:

I) Leave salary of employees on the basis of accrual valuation,

ii) Gratuity Inabilities on the basis of estimated valuation.

b} Defined Contribution Plans;

i) Liability for the premium paid to Insurance company in respect of employees covered underinsurance policy,

ii) Provident Fund Hi£51 on the basis of actual liability accrued and paid to the respective authority.

15 Related Party Disclosures

As per Accounting Standard 1B, the disclosure of transactions with the related parties are given below:-

i) Pelted Party where control exists: NIL

ii) The list of related parties where significant influence exists & with whom transaction have taken place and relationship:

16 Impairment of Fixed Assets

The company has reviewed as at 31/03/20T6 the future earnings of its cash generation unit in accordance with AS-28 issued by ICAI - As the carrying amount oF the assets does not exceed the future recoverable amount, consequently no adjustment is considered necessary by the management.

17. Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current years classification/discourse.

18. In the opinion of the Board of Directors, Currant Assets, Loan and Advances etc; are realizable at the value approximately at which they are stated in the 6a lance Sheet in the ordinary course of business.

19 Provision for current tax

The Provision of Income Tax has been mad e as per the ad vice of Income Tax Advocate. If any extra demand is raised by income tax authorities that is accounted for in the year of payment/ final adjustment.

20 Segment Information

The company has identified three reportable Segments viz: Oil & Vanaspati, Distillery unit and Real Estate. The segment has been identified and reported Caking into account unit wise, nature of product and services The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting;

a) Revenue Expenses have been id entitled to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole & are not allocable to a segment on reasonable basis h a s been disclosed as" Unallocable”

b) Segment Assets & Segment Liabilities represent assets & liabilities in respective segment units. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as" UnaIlocable".


Mar 31, 2014

1. Basis of Preparation of Financial Statements

The accounts have been prepared in accordance with the historical cost convention under accrual basis of accounting as per Indian Generally Accepted Accounting Principles (Indian GAAP). Accounts and Disclosures thereon comply with the Accounting Standards specified in Companies (Accounting Standard) Rules, other pronouncement of ICAI, provisions of the Companies Act, 1956.

2. Use of Estimates

Indian GAAP enjoins management to make estimates and assumptions that affect reported amount of assets, liabilities, revenue, expenses and contingent liabilities pertaining to years, the financial statement relate to. Actual result could differ from such estimates. Any revision in accounting estimates is recognized prospectively from current year and material revision, including its impact on financial statement, is reported in notes to accounts in the year of incorporation of revision.

3. Fixed Assets & Depreciation

i) Fixed assets are stated at their historical cost less depreciation.

ii) Depreciation has been charged on fixed assets as per rates of schedule XIV of the Companies Act, 1956 on WDV method except for the addition in plant & machinery installed on or after 01/04/1990 on which depreciation has been charged on straight line method.

iii) Capital Subsidy received against fixed capital outlay is deducted from gross value of individual fixed assets forming part of subsidy scheme granted, by way of proportionate allocation of subsidy amount thereon Depreciation is charged on net fixed assets after deduction of subsidy amount.

4. Inventories

Inventories are valued at the lower of cost or net realizable value. Basis of determination of cost remains follows:

a) Raw material, Packing material, Stores & Spares : Moving Weighted Average Basis

b) Work-in-progress : Cost of Input plus Overhead upto the stage of completion

c) Finished Goods : Cost of Input plus Appropriate Overhead

5. Turnover

i) Sales inclusive VAT,CST & Excise Duty.

ii) Goods sent on consignment are accounted in sales as and when respective "Bikri Patties" are received for the consignees.

6. Investments

Investment are stated at cost.

7. Revenue Recognisation

All incomes and expenditure are recognized on accrual basis. Sales and purchases are accounted for on the basis of passing of title to the goods. Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable. In Real Estate Units percentage completion method adopted by the Company as per guidance note "Accounting for Real Estate Transaction (Revised 2012)" issued by the ICAI on 1st April, 2012 except those projects which were started before 2012 where project completion method had already been adopted.

8. Contingent Liability & Assets

In the opinion of the Board of Directors there is no contingent liability or asset, hence, no provision is made.

9. Deferred Tax

Deferred Tax resulting from timing differences between book and taxable profit is accounted for using the current tax rate, to the extent that the timing differences is expected to crystallize. The major components of deferred tax assets and liabilities as on 31st March 2014 arising out of the timing differences are as per Note 4 above.

10. Foreign Currency Transactions

Transactions in foreign currency are accounted at exchange rate prevailing on the date of transaction. Assets & Liabilities relating to transactions involving foreign currency are converted at exchange rates prevailing at the year end. The gain / loss arising out of exchange rate difference on account of revenue transcations is adjusted in Profit & Loss Account The loss arising out of exchange rate difference on account of borrowings outstanding is reported in finance costs.

11. Borrowing Cost

Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifiying assets is one that necessarilly takes substantial period of time to get ready of its inteded use. AII other borrowing cost are charged to the Statement of Profit & Loss in the period in which they are incurred.

12. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

13. Retirement Benefits

Liabilities in respect of retirement benefit to employees are provided for as follow: -

a) Defined Benefit Plans:

i) Leave salary of employees on the basis of accrual valuation.

ii) Gratuity liabilities on the basis of estimated valuation.

b) Defined Contribution Plans:

i) Liability for the premium paid to insurance company in respect of employees covered under insurance policy.

ii) Provident Fund & ESI on the basis of actual liability accrued and paid to the respective authority.


Mar 31, 2012

1 Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention on accrual basis as a going concern, in accordance with applicable Accounting Standards and statutory presentational requirements of the Companies Act, 1956.

2 Fixed Assets & Depreciation

i) Fixed assets are stated at their historical cost less depreciation.

ii) Depreciation has been charged on fixed assets as per rates of schedule XIV of the Companies Act, 1956 on WDV method except for the addition in plant & machinery installed on or after 01 /04/1990 on which depreciation has been charged on straight line method.

3 Inventories

Raw Material, Work in Progress, Finished Goods and Stores & Spares are valued at Cost or Net Realizable Value whichever is less.

4 Turnover

i) Sales inclusive VAT, CST & Excise Duty.

ii) Goods sent on consignment are accounted in sales as and when respective "Bikri Patties' are received from the consignees.

5 Investments

Investment are stated at cost.

6 Revenue Recognisation

All incomes and expenditure are recognized on accrual basis.

7 Contingent Liability & Assets

In the opinion of the Board of Directors there is no contingent liability or asset; hence, no provision is made.

8 Deferred Tax

Deferred Tax resulting from timing differences between book and taxable profit is accounted for using the current tax rate, to the extent that the timing differences is expected to crystallize. The major components of deferred tax assets and liabilities as on 31st March 2012 raising out of the timing differences are as per Note 4 above.

9 Foreigft Currency Transactions

Transactions in foreign currency are accounted at exchange rate prevailing on the date of transaction. Assets & Liabilities relating to transactions involving foreign currency are converted at exchange rates prevailing at the year end. The gain / loss arising out of exchange rate difference on account of revenue transcations is adjusted in Profit & Loss Account. The loss arising out of exchange rate difference on account of borrowings outstanding is reported in finance costs.

10 Borrowing Cost

Borrowing Cost attributable to acquisition, construction or production of qualifying assets are capitalized as part of dead assets till the month in which the assets ready for use. Other borrowing cost are recognized as an expense in the period in which these are incurred.

11 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

12 Retirement Benefits

a) Company's contribution to Provident Fund is charged to Profit & Loss Account.

b) The Provision for Gratuity is made on the estimated basis.

14 Impairment of fixed Assets

The company has reviewed as at 31 /03/2012 the future earnings of its cash generation unit in accordance with AS-28 issued by ICAI . As the carrying amount of the assets does not exceed the future recoverable amount, consequently no adjustment is considered necessary by the management.

15 Segment Reporting

The company is engaged in the manufacturing of vanaspati ghee, vegetable oil etc. The entire operations are governed by the same set of risk and returns. In addition to that the company has started in real estate & infrastructure activities, which are in progress.

16 The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/ disclosure.

17 In the opinion of the Board of Directors, Current Assets, Loan and Advances etc; are realizable at the value approximately at which they are stated in the Balance Sheet in the ordinary course of business.

18 Balance in various personal accounts remains unverified since confirmations from the parties not received.

19 Provision for current tax

The Provision of Income Tax has been made as per the advice of Income Tax Advocate. If any extra demand is raised by income tax authorities that is accounted for in the year of payment/ final adjustment.


Mar 31, 2011

1. Accounting Convention:

The Financial statements are prepared under the historical cost convention on accrual basis as a going concern, in accordance with applicable Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

2. Fixed Assets and Depreciation:

i) Fixed Assets are stated at cost net of cenvat and includes taxes, freight and other incidental expenses incurred in relation to acquisition and installation of the same less depreciation and Government Grants.

ii) Depreciation has been charged on fixed assets as per rates of schedule XIV of the Companies Act, 1956 on written down value method except for the additions in plant and machinery installed on or after 01/04/1990 on which depreciation has been charged on straight line method.

3. Stock Valuation:

a) Raw Material : Valued on the lower of cost or net realizable value. The cost is determined on a weighted average basis.

b) Work in Progress : Valued on the lower of cost or net realizable value. The cost is determined on a weighted average basis.

c) Finished Goods : Valued on the lower of cost or net realizable value.

d) Stores & Packing Material: Valued at cost on weighted average basis.

4. Investments

Investments are stated at cost.

5. Retirement Benefits:

Company's contribution to P.F. is charged to P & L Account. The provision for gratuity has been made.

6. Sales Turnover:

i) Sales includes VAT, CST and Excise Duty.

ii) Goods sent on consignment are accounted in sales as and when respective 'Bikri Patties' are received from the consignees.

7. Revenue Recognition:

Income & Expenditure are recognized on accrual basis.

8. Transaction in Foreign Currency

Transactions in foreign currency are accounted at exchange rate prevailing on the date of transaction. Assets & Liabilities relating to transactions involving foreign currency are converted at exchange rates prevailing at the year end. The loss or gain arising out of exchange rate difference is adjusted in P & L Account.

9. Borrowing Cost

Borrowing cost attributable to acquisition, construction or production of qualifying asset are capitalized as part of that asset, till the month in which the asset is ready for use. Other borrowing costs are recognized is an expense in the period in which these are incurred.

10. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961, as per advice of Tax Advocate. Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date.

11. Segment Information

The Company is engaged in the manufacturing of Vanaspati Ghee, Vegetable Oils etc. The entire operations are governed by the same set of risk & returns. Hence the same has been considered as representing a single segment. In addition to that the Company has started in Real Estate & Infrastructure activities by entering in partnership firm and from which the Company has earned a profit of Rs. 272.42 Lacs.

12. Impairment of Assets

At each Balance Sheet date an assessment is made whether any indication exists that an asset has been impaired, if any such indication exists, an impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account. As the carrying amount of the assets does not exceed the future recoverable amount consequently, no adjustment is considered necessary by the Management.

13. Provision For Contingent Liabilities & Contingent Assets.

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be no outflow of resources. Contingent liabilities are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2010

1. Accounting Convention :

The Financial statements are prepared under the historical cost convention on accrual basis as a going concern, in accordance with applicable Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

2. Fixed Assets and Depreciation :

i) Fixed Assets are stated at cost net of cenvat and includes taxes, freight and other incidental expenses incurred in relation to acquisition and installation of the same less depreciation and Government Grants.

ii) Depreciation has been charged on fixed assets as per rates of schedule XIV of the Companies Act, 1956 on written down value method except for the additions in plant and machinery installed on or after 01/04/1990 on which depreciation has been charged on straight ine method.

3. Stock Valuation :

a) Raw Material: Valued on the lower of cost or net realizable value. The cost is determined on a weighted average basis.

b) Work in Progress : Valued on the lower of cost or net realizable value. The cost is determined on a weighted average basis.

c) Finished Goods : Valued on the lower of cost or net realizable value.

d) Stores & Packing Material: Valued at cost on weighted average basis.

4. Investments:

Investments are stated at cost.

5. Retirement Benefits :

Companys contribution to P.F. is charged to P & L Account. The provision for gratuity has been made.

6. Sales Turnover:

i) Sales includes VAT, CST and Excise Duty.

ii) Goods sent on consignment are accounted in sales as and when respective Bikri Patties are received from the consignees.

7. Revenue Recognition :

Income & Expenditure are recognized on accrual basis.

8. Transaction in Foreign Currency

Transactions in foreign currency are accounted at exchange rate prevailing on the date of transaction. Assets & Liabilities relating to transactions involving foreign currency are converted at exchange rates prevailing at the year end. The loss or gain arising out of exchange rate difference is adjusted in P & L Account.

9. Borrowing Cost

Borrowing cost attributable to acquisition, construction or production of qualifying asset are capitalized as part of that asset, till the month in which the asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

10. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961, as per advice of Tax Advocate.

Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date.

11. Segment Information

The Company is solely engaged in the manufacturing of Vanaspati Ghee, Vegetable Oils etc. The entire operations are governed by the same set of risk & returns. Hence the same has been considered as representing a single segment.

12. Impairment of Assets

At each Balance Sheet date an assessment is made whether any indication exists that an asset has been impaired, if any such indication exists, an impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account. As the carrying amount of the assets does not exceed the future recoverable amount consequently, no adjustment is considered necessary by the Management.

13. Provision For Contingent Liabilities & Contingent Assets.

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be no outflow of resources. Contingent liabilities are disclosed by way of notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

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