Accounting Policies of Rasoya Proteins Ltd. Company

Mar 31, 2016

Company Overview

Rasoya Proteins Limited (the Company) is mainly engaged in the business of soya seed solvent extraction and has two oil refinery units. The company is also has a power generation plant which provides captive power and electricity to the solvent unit of the company. Over the years the company has become a leading processor of Soya seed in Maharashtra. The main products of the company are De-oiled cake (DOC), crude oil, refined edible soya oil and other various other consumer products.

The company is having following subsidiaries:

i) RPL International Trade - FZE situated in Sharjah, Dubai is fully owned subsidiary company mainly engaged in trading of edible oils.

ii) RPL (HK) Foods & Feeds Corporation Ltd, situated in Hongkong is a fully owned subsidiary company has not started its business operations.

1. SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

The financial statements have been prepared on accrual basis under the historical cost convention.

1.2 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The estimates used in preparation of the financial statements are prudent and reasonable. The differences between the actual results and the estimates are recognized in the periods in which the results are known / materialized.

1.3 Fixed Assets

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation and impairment loss. All advances of capital nature have been directly capitalized to respective heads. Fixed Assets are capitalized on the day the assets are ready for their intended use.

Borrowing Cost directly attributable to acquisition / construction of fixed assets which necessarily take a substantial time to get ready for their intended use are capitalized along with the cost of the asset.

1.4 Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization. All costs directly attributable to acquisition to the intangible assets are capitalized along with the cost of the asset.

1.5 Depreciation and Amortization

Depreciation has been provided on a straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

i) Depreciation on machinery spares of the nature of capital / insurance spares and having irregular use is provided prospectively over a period, not exceeding the useful life of the fixed assets to which they relate.

ii) Depreciation on addition to the fixed assets or on sale / discernment of assets, is calculated on pro-rata basis.

iii) Cost of Software & ERP Package is amortized over a period of five years. Net block of opening software taken as gross block for the year.

iv) Expenditure incurred on power plant, after the plant is ready for commercial production up to 31st March, 2010 are being carried forward as Deferred Revenue Expenditure and will be written off in five years from the date of commercial production.

v) The useful life of the fixed assets has to be determined in accordance with the schedule II of the companies Act 2013 effective from April 1, 2014. the company has provided the depreciation as per the schedule XIV of the companies Act 1956 for all the assets except Plant & Machinery. The depreciation on Plant & Machinery has been considered on the basis of useful life estimated as per the report obtained from chartered engineer.

vi) In case of assets whose useful life is over as per Companies Act, 2013, the depreciation for earlier years has been duly adjusted by debiting reserve account.

1.6 Investments

Investments are classified as current or long-term in accordance with Accounting Standard 13 on “Accounting for Investments”. Current investments are stated at cost or fair value whichever is less. Long term investments are stated at cost.

1.7 Revenue Recognition

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection.

Sales of goods

Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers.

Sale of Power is accounted for, based on the provisions of Energy Purchase Agreement entered into with Maharashtra State Electricity Distribution Co. Ltd. Captive consumption of steam and power are accounted for, at annual average cost plus a particular margin of the said cost or prevailing MSEDCL billing rates whichever is lower.

1.8 Other income

Interest income is accounted on accrual basis. Other income includes contract settlement income which are balances of sundry debtors and sundry creditors for goods and capital items identified by the management which are not receivable or payable in future.

1.9 Inventories

a) Raw Materials, process chemicals, stores and spares, packing materials and other products are valued at weighted average cost. Cost comprises all cost of purchases, direct expenses and other expenses incurred in bringing the inventories to the present location and condition.

b) Finished Goods are valued at cost or net realizable value, whichever is lower (including excise duty at the rates applicable). Cost of finished goods all direct costs and appropriate proportion of overheads as applicable.

c) By-products/Scrap materials are valued at net realizable value (including excise duty at the rates applicable).

1 .lO Government grants, subsidies and export incentives

Government grants and subsidies are recognized when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants / subsidy will be received.

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same. Government grants and subsidies received or receivable are reduced from the related expenses for which they are intended to compensate.

1.11 Sundry Debtors, Loans and Advances

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit and Loss Account and are stated Net of Debit/Credit Balances written off, wherever applicable. Irrecoverable amounts, if any, that may arise due to unadjusted and unsettled claims in respect of various items like rebate, discounts, short receipts defective supplies etc. are accounted and/or provided only upon final settlement of account with the parties as per the management’s judgment of the potential outcome.

1.12Retirement Benefits

a) Defined contribution plan

Provident fund and Employee'' State Insurance Corporation (ESIC) are the defined contribution schemes offered by the Company. The contributions to these schemes are charged to the profit and loss account of the year in which contribution to such schemes becomes due.

b) Defined benefit plan and Long term Employee benefits

Gratuity liability is provided on the basis of an actuarial valuation made at the end of each financial year as per Projected Unit Credit method. Actuarial gains or losses arising from such valuation are charged to revenue in the year in which they arise.

Provision for Leave Encashment is made on accrual basis on the basis of accumulated leave to the credit of the employee as at the year end, based on arithmetical calculations.

1.13Foreign currency transactions and translations

i) Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of the transaction.

ii) At each balance sheet date, foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

iii) Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Company’s monetary items at the closing rate are recognized as income or expense in the period in which they arise.

iv) The premium or the discount on forward exchange contracts not relating to firm commitments or highly probable forecast transactions and not intended for trading or speculation purpose is amortized as expense or income over the life of the contract.

1.14 Borrowing Cost

Borrowing cost directly attributable to the acquisition or construction of qualifying assets as defined in Accounting Standard 16 on “Borrowing Costs” are capitalized as part of the cost of such assets up to the date when the asset is ready for its intended use. Other borrowing cost are charged to the profit and loss account in the year in which the same is incurred.

1.15Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year computed in accordance with the Income Tax Act, 1961.

Deferred tax resulting from timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in the future.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

1.16lmpairment of Fixed Assets

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company’s fixed assets. If any indications exists, an asset’s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceed its recoverable amount. The recoverable amount would be greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.17Earnings Per Share

The Company reports basic and diluted Earnings per share (EPS) in accordance with Accounting Standard 20 on “Earnings per Share”. Basic EPS is computed 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 computed 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 as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

1.18Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organization structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under “unallocated revenue / expenses / assets / liabilities”.

1.19Cash Flow Statement

The Cash Flow Statement is prepared by the “indirect method” set out in Accounting Standard 3 on “Cash Flow Statements” and presents the cash flows by operating, investing and financing activities of the Company. Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on hand and unencumbered, highly liquid bank balances.

1.20Financial Derivatives and Hedging transactions

In respect of derivative contracts, premium paid, gains / losses on settlement and losses on restatement are recognized in the Profit and Loss account except in case where they relate to the acquisition or construction of fixed assets, in which case, they are adjusted to the carrying cost of such assets.

1.21 Provisions, Contingent liabilities and Contingent Assets

Contingent liabilities as defined in Accounting Standard 29 on “Provisions, Contingent Liabilities and Contingent Assets” are disclosed by way of notes to the accounts. Disclosure is not made if the possibility of an outflow of future economic benefits is remote. Provision is made if it is probable that an outflow of future economic benefits will be required to settle the obligation.

1.22 Insurance claims

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

Reuse See Point No. 813 rectors and Key Managerial Personnel of the Directors Report.

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Mar 31, 2015

1.1 Basis of preparation of financial statements

The financial statements of the Company have been pre pared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013 .

The financial statements have been prepared on accrual bas is under the historical cost convention.

1.2 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The estimates used in preparation of the financial statements are prudent and reasonable. The differences between the actual results and the estimates are recognis ed in the periods in which the results are known / materialised.

1.3 Fixed Assets

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation and impairment loss. All advances of capital nature have been directly capitalized to respective heads. Fixed Assets are capitalized on the day the assets are ready for their intended use.

Borrowing Cost directly attributable to acquisition / construction of fixed assets which necessarily take a substantial time to get ready fo r their intended use are capitalized along with the cost of the asset.

1.4 Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation. All costs directly attributable to acquisition to the int angible assets are capitalized along with the cost of the asset.

1.5 DEpreciation and Amortisation

Depreciation has been provided on a straight - line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

i) Depreciation on machinery spares of the nature of capital / insurance spares and having irregular use is provided prospectively over a period, not exceeding the useful life of the fixed assets to which they relate.

ii) Depreciation on addition to the fixed assets or on sal e / discardment of assets, is calculated on pro- rata basis.

iii) Cost of Software & ERP Package is amortized over a period of five years . Net block of opening software taken as gross block for the year.

iv) Expenditure incurred on power plant , after the plant is ready for commercial production up to 31 st March, 2010 are being carried forward as Deferred Revenue Expenditure and will be written off in five years from the date of commercial production.

v) The useful life of the fixed assets has to be determined in accordance with the schedule II of the companies Act 2013 effective from April 1, 2014. the company has provided the depreciation as per the schedule XIV of the companies Act 1956 for all the assets except Plant & Machinery. The depreciation on Plant & Ma chinery has been considered on the basis of useful life estimated as per the report obtained from chartered engineer.

vi) In case of assets whose useful life is over as per Companies Act, 2013, the depreciation for earlier years has been duly adjusted by deb iting reserve account.

1.6 Investments

Investments are classified as current or long-term in accordance with Accounting Standard 13 on "Accounting for Investments". Current investments are stated at cost or fair value whichever is less. Long term investments are stated at cost.

1.7 Revenue Recognition

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection.

Sales of goods

Sales are recognised, net of returns and trade discounts, on transfer of signif icant risks and rewards of ownership to the buyer, which generally coincides with the delivery of g oods to customers.

Sale of Power is accounted for, based on the provisions of Energy Purchase Agreement entered into with Maharashtra State Electricity Distribution Co. Ltd. Captive consumption of steam and power are accounted for, at annual average cost plus a particular margin of the said cost or prevailing MSEDCL billing rates whichever is lower.

1.8 Other income

Interest income is accounted on accrual basis. Other income includes contract settlement income which are balances of sundry debtors and sundry creditors for goods and capital items identified by the management which are not receivable or payable in future.

1.9 Inventories

a) R aw Materials, process chemicals, stores and spares, packing materials and other products are valued at weighted average cost. Cost comprises all cost of purchases, direct expenses and other expenses incurred in bringing the inventories to the present location and condition.

b) Finished Goods are valued at cost or net realizable value, whichever is lower (including excise duty at the rates applicable) . Cost of finished goods all direct costs and appropriate proportion of overheads as applicable.

c) By products/Scrap materials are value d at net realisable value (including excise duty at the rates applicable).

1.10 Government grants, subsidies and export incentives

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the con ditions attached to them and the grants / subsidy will be received.

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same. Government grants and subsidies received or receivable are reduced from the related expenses for which they are intended to compensate.

1.11 Sundry Debtors, Loans and Advances

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are deb ited to the Profit and Loss Account and are stated Net of Debit/Credit Balances written off, wherever applicable. Irrecoverable amounts, if any, that may arise due to unadjusted and unsettled claims in respect of various items like rebate, discounts, short receipts defective supplies etc. are accounted and/or provided only upon final settlement of account with the parties as per the management''s judgement of the potential outcome.

1.12 Retirement Benefits

a) Defined contribution plan

Provident fund and Employee'' State Insurance Corporation (ESIC) are the defined contribution schemes offered by the Company. The contributions to these schemes are charged to the profit and loss account of the year in which contribution to such schemes becomes due.

b) Defined benefit plan and Long term Employee benefits

Gratuity liability is provided on the basis of an actuarial valuation made at the end of each financial year as per Projected Unit Credit method. Actuarial gains or losses arising from such valuation are charge d to revenue in the year in which they arise.

Provision for Leave Encashment is made on accrual basis on the basis of accumulated leave to the credit of the employee as at the year end, based on arithmetical calculations.

1.13 Foreign currency transactions and translations

i) Foreign currency transactions are recorded on initial recognition in the reporting currency using the exchange rate at the date of the transaction.

ii) At each balance sheet date, foreign currency monetary items are reported using the closing rate. Non- monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

iii) Exchange differences that arise on settlement of monetary items or on repo rting at each balance sheet date of the Company''s monetary items at the closing rate are recognised as income or expense in the period in which they arise.

iv) The premium or the discount on forward exchange contracts not relating to firm commitments or h ighly probable forecast transactions and not intended for trading or speculation purpose is amortised as expense or income over the life of the contract.

1.14 Borrowing Cost

Borrowing cost directly attributable to the acquisition or construction of qualifying assets as defined in Accounting Standard 16 on "Borrowing Costs" are capitalized as part of the cost of such assets up to the date when the asset is ready for its intended use. Other borrowing cost are charged to the profit and loss account in the year in which the same is incurred.

1.15 Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year computed in accordance with the Income Tax Act, 1961.

Deferred tax resulting from timing differenc es between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent ther e is reasonable certainty that these would be realized in the future.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

1.16 Impairment of Fixed Assets

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s fixed assets. If any indications exists, an asset''s recoverable amount is estimated. An impair ment loss is recognized whenever the carrying amount of an asset exceed its recoverable amount. The recoverable amount would be greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.17 Earnings Per Share

The Company reports basic and diluted Earnings per share (EPS) in accordance with Accounting Standard 20 on "Earnings per Share". Basic EPS is computed 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 computed 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 as adjusted for the effects of all dilutive potential equity shares, except where the results are anti - dilutive.

1.18 Segment reporting

The Company identifies primary segments based on the dom inant source, nature of risks and returns and the internal organisation structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive management in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value fac tors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

1.19 Cash Flow Statement

The Cash Flow Statement is prepared by the "indirect method" set out in Accounting Standard 3 on "Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the Company. Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on hand and unencumbered, highly liquid bank balances.

1.20 Financial Derivatives and Hedging transactions

In respect of derivative contracts, premium paid, gains / losses on settlement and losses on restatement are recognised i n the Profit and Loss account except in case where they relate to the acquisition or construction of fixed assets, in which case, they are adjusted to the carrying cost of such assets.

1.21 Provisions, Contingent liabilities and Contingent Assets

Contingent liabilities as defined in Accounting Standard 29 on "Provisions, Contingent Liabilities and Contingent Assets" are disclosed by way of notes to the accounts. Disclosure is not made if the possibility of an outflow of future economic benefits is remote. Provision is made if it is probable that an outflow of future economic benefits will be required to settle the obligation.

1.22 Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that t here is no uncertainty in receiving the claims.

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Mar 31, 2014

Company Overview

Rasoya Proteins Limited (the Company) is having to solvent extraction unit with vegetable oil refinery. The company is having power generation plant which provides captive power and electricity to the solvent unit of the company. Over the years the company has become a leading processor of Soya seed in Maharashtra. The main products of the company are De-oiled cake (DOC), crude oil, refined edibie soya oil and other various other consumer products.

RPL International Trade FZE, situated in Sharjah is fully owned subsidiary company mainly engaged in the business of trading in edible oil.

1. SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention.

1.2 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materialise.

1.3 Fixed Assets

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation and impairment loss. All advances of capital nature have been directly capitalized to respective heads. Fixed Assets are capitalized on the day the assets are ready for their intended use.

Borrowing Cost directly attributable to acquisition / construction of fixed assets which necessarily take a substantial time to get ready for their intended use are capitalized along with the cost of the asset.

1.4 Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation. All costs directly attributable to acquisition to the intangible assets are capitalized along with the cost of the asset.

1.5 Depreciation and Amortisation

Depreciation has been provided on a straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

i) Depreciation on machinery spares of the nature of capital / insurance spares and having irregular use is provided prospectively over a period, not exceeding the useful life of the fixed assets to which they relate.

ii) Depreciation on addition to the fixed assets or on sale / discernment of assets, is calculated on pro-rata basis.

iii) Cost of Software & ERP Package is amortized over a period of five years. Net block of opening software taken as gross block for the year.

iv) Expenditure incurred on power plant, after the plant is ready for commercial production up to 31st March, 2010 are being carried forward as Deferred Revenue Expenditure and will be written off in five years from the date of commercial production.

1.6 Investments

Investments are classified as current or long-term in accordance with Accounting Standard 13 on "Accounting for Investments". Current investments are stated at cost or fair value whichever is less. Long term investments are stated at cost.

1.7 Revenue Recognition

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection.

Sales of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers.

Sale of Power is accounted for, based on the provisions of Energy Purchase Agreement entered into with Maharashtra State Electricity Distribution Co. Ltd. Captive consumption of steam and power are accounted for, at annual average cost plus a particular margin of the said cost.

1.8 Other income

Interest income is accounted on accrual basis. Other income includes contract settlement income which are balances of sundry debtors and sundry creditors for goods and capital items identified by the management which are not receivable or payable in future.

1.9 Inventories

a) Raw Materials, process chemicals, stores and spares, packing materials and other products are valued at weighted average cost. Cost comprises all cost of purchases, direct expenses and other expenses incurred in bringing the inventories to the present location and condition.

b) Finished Goods are valued at cost or net realizable value, whichever is lower (including excise duty at the rates applicable). Cost of finished goods all direct costs and appropriate proportion of overheads as applicable.

c) By-products/Scrap materials are valued at net realisable value (including excise duty at the rates applicable).

1.10 Government grants, subsidies and export incentives

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants / subsidy will be received. Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same. Government grants and subsidies received or receivable are reduced from the related expenses for which they are intended to compensate.

1.11 Sundry Debtors, Loans and Advances

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit and Loss Account and are stated Net of Debit/Credit Balances written off, wherever applicable. Irrecoverable amounts, if any, that may arise due to unadjusted and unsettled claims in respect of various items like rebate, discounts, short receipts defective supplies etc. are accounted and/or provided only upon final settlement of account with the parties as per the management''s judgement of the potential outcome.

1.12 Retirement Benefits

a) Defined contribution plan

Provident fund and Employee'' State Insurance Corporation (ESIC) are the defined contribution schemes offered by the Company. The contributions to these schemes are charged to the profit and loss account of the year ir which contribution to such schemes becomes due.

b) Defined benefit plan and Long term Employee benefits

Gratuity liability is provided on the basis of an actuarial valuation made at the end of each financial year as per Projected Unit Credit method. Actuarial gains or losses arising from such valuation are charged to revenue in the year in which they arise.

Provision for Leave Encashment is made on accrual basis on the basis of accumulated leave to the credit of the employee as at the year end, based on arithmetical calculations.

1.13 Foreign currency transactions and translations

i) Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of the transaction.

ii) At each balance sheet date, foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

iii) Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Company''s monetary items at the closing rate are recognised as income or expense in the period in which they arise.

iv) The premium or the discount on forward exchange contracts not relating to firm commitments or highly probable forecast transactions and not intended for trading or speculation purpose is amortised as expense or income over the life of the contract.

1.14 Borrowing Cost

Borrowing cost directly attributable to the acquisition or construction of qualifying assets as defined in Accounting Standard 16 on "Borrowing Costs" are capitalized as part of the cost of such assets up to the date when the asset is ready for its intended use. Other borrowing cost are charged to the profit and loss account in the year in which the same is incurred.

1.15 Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year computed in accordance with the Income Tax Act, 1961.

Deferred tax resulting from timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in the future.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

1.16 Impairment of Fixed Assets

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s fixed assets. If any indications exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceed its recoverable amount. The recoverable amount would be greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.17 Earnings Per Share

The Company reports basic and diluted Earnings per share (EPS) in accordance with Accounting Standard 20 on "Earnings per Share". Basic EPS is computed 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 computed 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 as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

1.18 Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

1.19 Cash Flow Statement

The Cash Flow Statement is prepared by the "indirect method" set out in Accounting Standard 3 on "Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the Company. Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on hand and unencumbered, highly liquid bank balances.

1.20 Financial Derivatives and Hedging transactions

In respect of derivative contracts, premium paid, gains / losses on settlement and losses on restatement are recognised in the Profit and Loss account except in case where they relate to the acquisition or construction of fixed assets, in which case, they are adjusted to the carrying cost of such assets.

1.21 Provisions, Contingent liabilities and Contingent Assets

Contingent liabilities as defined in Accounting Standard 29 on "Provisions, Contingent Liabilities and Contingent Assets" are disclosed by way of notes to the accounts. Disclosure is not made if the possibility of an outflow of future economic benefits is remote. Provision is made if it is probable that an outflow of future economic benefits will be required to settle the obligation.

1.22 Insurance claims

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

a) The Working Capital loafts (Excluding working capital loan for Lecithin Plant at Wadgaon) are secured by way of first pari-passu charge among the working capital Lenders on the current assets of the company both present and future belonging to the Solvent Plant at Wani, Solvent Plant at Malkapur and Power Plant at Wani and second pari-passu charges on entire Fixed assets of the aforesaid plants (excluding the assets of Lecithin Plant at Wadgaon) of the Company. The said charge is created on behalf of the Working capital lenders in favour of SBI CAP Trustee Company Limited Mumbai as security trustee. Further these working capital loans are secured by personal guarantee of Managing Director of the Company.

The working capital loan from Karur Vysya Bank for Lecithin Plant at Wadgaon is secured by way of exclusive charge of the Karur vysya Bank on the current assets of the company both present and future belonging to the Lecithin Plant at Wadgaon and also secured by personal guarantee of Managing Director of the Company.

b) The Warehouse loan is secured by way of pledge of Warehouse Receipts issued by State Warehousing Corporation Central Warehousing Corporation & Collateral Manager covering Soya Seeds lying in the Warehouse from time to time.

c) The Company has accepted Public Deposits of Rs.3,30,35,000/- (Rupees Three Crores Thirty Lacs & Thirty Five Thousands Only) during the financial year as per the provisions of section 58 A & 58AA and relevant provisions of Companies Act 1956 and as per Companies (Acceptance of Deposits) Rules 1975.

As per the said provisions, Company has created "Deposit Redemption Reserve" for making repayment of the deposits on the due date, for an amount equivalent to 15% of the Deposits maturing during the year and up to 31st March of the following year.

---

Mar 31, 2013

1.1 Basis of preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention.

1.2 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materialise.

1.3 Fixed Assets

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation and impairment loss. All advances of capital nature have been directly capitalized to respective heads. Fixed Assets are capitalized on the day the assets are ready for tljeir intended use.

Borrowing Cost directly attributable to acquisition / construction of fixed assets which necessarily take a substantial time to get ready for their intended use are capitalized along with the cost of the asset.

1.4 Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation. All costs directly attributable to acquisition to the intangible assets are capitalized along with the cost of the asset.

1.5 Depreciation and Amortisation

Depreciation has been provided on a straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

i) Depreciation on machinery spares of the nature of capital / insurance spares and having irregular use is provided prospectively over a period, not exceeding the useful life of the fixed assets to which they relate.

ii) Depreciation on addition to the fixed assets or on sale / iscardment of assets, is calculated on pro-rata basis.

iii) Cost of Software & ERP Package is amortized over a period of five years. Net block of opening software taken as gross block for the year.

iv) Expenditure incurred on power plant, after the plant is ready for commercial production up to 31" March, 2010 are being carried forward as Deferred Revenue Expenditure and will be written off in five years from the date of commercial production.

1.6 Investments

Investments are classified as current or long-term in accordance with Accounting Standard 13 on "Accounting for Investments". Current investments are stated at cost or fair value whichever is less. Long term investments are stated at cost.

1.7 Revenue Recognition

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection.

Sales of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers.

Sale of Power is accounted for, based on the provisions of Energy Purchase Agreement entered into with Maharashtra State Electricity Distribution Co. Ltd. Captive consumption of steam and power are accounted for, at annual average cost plus 14% of the said cost.

1.8 Other income

Interest income is accounted on accrual basis. Other income includes contract settlement income which are balances of sundry debtors and sundry creditors for goods and capital items identified by the management which are not receivable or payable in future.

1.9 Inventories

a) Raw Materials, process chemicals, stores and spares, packing materials and other products are valued at weighted average cost. Cost comprises all cost of purchases, direct expenses and other expenses incurred in bringing the inventories to the present location and condition.

'' b) Finished Goods are valued at cost or net realizable value, whichever is lower (including excise duty at the rates applicable). Cost of finished goods all direct costs and appropriate proportion of overheads as applicable.

c) By-products/Scrap materials are valued at net realisable value (including excise duty at the rates applicable).

1.10 Government grants, subsidies and export incentiyes

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants / subsidy will be received. Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same. Government grants and subsidies received or receivable are reduced from the related expenses for which they''kre intended to compensate.

1.11 Sundry Debtors, Loans and Advances

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit and Loss Account and are stated Net of Debit/Credit Balances written off, wherever applicable. Irrecoverable amounts, if any, that may arise due to unadjusted and unsettled claims in respect of various items like rebate, discounts, short receipts defective supplies etc. are accounted and/or provided only upon final settlement of account with the parties-as per the management''s judgement of the potential outcome.

1.12 Retirement Benefits

a) Defined contribution plan

Provident fund and Employee'' State Insurance Corporation (ESIC) are the defined contribution schemes offered by the Company. The contributions to these schemes are charged to the profit and loss account of the year in which contribution to such schemes becomes due.

b) Defined benefit plan and Long term Employee benefits

Gratuity liability is provided on the basis of an actuarial valuation made at the end of each financial year as per Projected Unit Credit method. Actuarial gains or losses arising from such valuation are charged to revenue in the year in which they arise.

Provision for Leave Encashment is made on accrual basis on the basis of accumulated leave to the credit of the employee as at the year end, based on arithmetical calculations.

1.13 Foreign currency transactions and translations

i) Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of the transaction.

ii) At each balance sheet date, foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

iii) Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Company''s monetary items at the closing rate are recognised as income or expenses in the period in which they arise.

iv) The premium or the discount on forward exchange contracts not relating to firm commitments or highly probable forecast transactions and not intended for trading or speculation purpose is amortised as expenses or income over the life of the contract.

1.14 Borrowing Cost

Borrowing cost directly attributable to the acquisition or construction of qualifying assets as defined in Accounting Standard 16 on "Borrowing Costs" are capitalized as part of the cost of such assets up to the date when the asset is ready for its intended use. Other borrowing cost are charged to the profit and loss account in the year in which the same is incurred.

1.15 Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year computed in accordance with the Income Tax Act, 1961.

Deferred tax resulting from timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in the future.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

1.16 Impairment of Fixed Assets

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s fixed assets. If any indications exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceed its recoverable amount. The recoverable amount would be greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.17 Earnings Per Share

The Company reports basic and diluted Earnings per share (EPS) in accordance with Accounting Standard 20 on "Earnings per Share". Basic EPS is computed by dividing the net profit or loss for the year attributable to equity snareholders by the weighted average number of equity shares outstanding during the year. Diluted EPS is computed 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 as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

1.18 Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

1.19 Cash Flow Statement

The Cash Flow Statement is prepared by the "indirect method" set out in Accounting Standard 3 on "Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the Company. Cash and Cash equivalents presented in the Cash Flow Statement consist of ca&h on hand and unencumbered, highly liquid bank balances.

1.20 Financial Derivatives and Hedging transactions

In respect of derivative contracts, premium paid, gains / losses on settlement and losses on restatement are recognised in the Profit and Loss account except in case where they relate to the acquisition or construction of fixed assets, in which case, they are adjusted to the carrying cost of such assets.

1.21 Provisions, Contingent liabilities and Contingent/Assets

Contingent liabilities as defined in Accounting Standard 29 on "Provisions, Contingent Liabilities and Contingent Assets" are disclosed by way of notes to the accounts. Disclosure is not made if the possibility of an outflow of future economic benefits is remote. Provision is made if it is probable that an outflow of future economic benefits will be required to settle the obligation. ,

1.22 Insurance claims ,

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

---

Mar 31, 2012

1.1 Basis of preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention.

1.2 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materialise.

1.3 Fixed Assets

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation and impairment loss. All advances of capital nature have been directly capitalized to respective heads. Fixed Assets are capitalized on the day the assets are ready for their intended use.

Borrowing Cost directly attributable to acquisition / construction of fixed assets which necessarily take a substantial time to get ready for their intended use are capitalized along with the cost of the asset.

1.4 Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation. All costs directly attributable to acquisition to the intangible assets are capitalized along with the cost of the asset.

1.5 Depreciation and Amortisation

Depreciation has been provided on a straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

i) Depreciation on machinery spares of the nature of capital / insurance spares and having irregular use is provided prospectively over a period, not exceeding the useful life of the fixed assets to which they relate.

ii) Depreciation on addition to the fixed assets or on sale / discardment of assets, is calculated on pro-rata basis.

iii) Cost of Software & ERP Package is amortized over a period of five years. Net block of opening software taken as gross block for the year.

iv) Expenditure incurred on power plant, after the plant is ready for commercial production up to 31st March, 2010 are being carried forward as Deferred Revenue Expenditure and will be written off in five years from the date of commercial production.

1.6 Investments

Investments are classified as current or long-term in accordance with Accounting Standard 13 on "Accounting for Investments". Current investments are stated at cost or fair value whichever is less. Long term investments are stated at cost.

1.7 Revenue Recognition

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection.

Sales of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers.

Sale of Power is accounted for, based on the provisions of Energy Purchase Agreement entered into with Maharashtra State Electricity Distribution Co. Ltd. Captive consumption of steam and power are accounted for, at annual average cost plus 14% of the said cost.

1.8 Other income

Interest income is accounted on accrual basis. Other income includes contract settlement income which are balances of sundry debtors and sundry creditors for goods and capital items identified by the management which are not receivable or payable in future.

1.9 Inventories

a) Raw Materials, process chemicals, stores and spares, packing materials and other products are valued at weighted average cost. Cost comprises all cost of purchases, direct expenses and other expenses incurred in bringing the inventories to the present location and condition.

b) Finished Goods are valued at cost or net realizable value, whichever is lower (including excise duty at the rates applicable). Cost of finished goods all direct costs and appropriate proportion of overheads as applicable.

c) By-products/Scrap materials are valued at net realisable value (including excise duty at the rates applicable).

1.10 Government grants, subsidies and export incentives

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants / subsidy will be received.

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same. Government grants and subsidies received or receivable are reduced from the related expenses for which they are intended to compensate.

1.11 Sundry Debtors, Loans and Advances

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit and Loss Account and are stated Net of Debit/Credit Balances written off, wherever applicable. Irrecoverable amounts, if any, that may arise due to unadjusted and unsettled claims in respect of various items like rebate, discounts, short receipts defective supplies etc. are accounted and/or provided only upon final settlement of account with the parties as per the management's judgement of the potential outcome.

1.12 Retirement Benefits

a) Defined contribution plan

Provident fund and Employee' State Insurance Corporation (ESIC) are the defined contribution schemes offered by the Company. The contributions to these schemes are charged to the profit and loss account of the year in which contribution to such schemes becomes due.

b) Defined benefit plan and Long term Employee benefits

Gratuity liability is provided on the basis of an actuarial valuation made at the end of each financial year as per Projected Unit Credit method. Actuarial gains or losses arising from such valuation are charged to revenue in the year in which they arise.

Provision for Leave Encashment is made on accrual basis on the basis of accumulated leave to the credit of the employee as at the year end, based on arithmetical calculations.

1.13 Foreign currency transactions and translations

I) Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of the transaction.

ii) At each balance sheet date, foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

iii) Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Company's monetary items at the closing rate are recognised as income or expense in the period in which they arise.

iv) The premium or the discount on forward exchange contracts not relating to firm commitments or highly probable forecast transactions and not intended for trading or speculation purpose is amortised as expense or income over the life of the contract.

1.14 Borrowing Cost

Borrowing cost directly attributable to the acquisition or construction of qualifying assets as defined in Accounting Standard 16 on "Borrowing Costs" are capitalized as part of the cost of such assets up to the date when the asset is ready for its intended use. Other borrowing cost are charged to the profit and loss account in the year in which the same is incurred.

1.15 Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting year computed in accordance with the Income Tax Act, 1961.

Deferred tax resulting from timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in the future.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company

1.16 Impairment of Fixed Assets

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's fixed assets. If any indications exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceed its recoverable amount. The recoverable amount would be greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.17 Earnings Per Share

The Company reports basic and diluted Earnings per share (EPS) in accordance with Accounting Standard 20 on "Earnings per Share". Basic EPS is computed 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 computed 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 as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

1.18 Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

1.19 Cash Flow Statement

The Cash Flow Statement is prepared by the "indirect method" set out in Accounting Standard 3 on "Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the Company. Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on hand and unencumbered, highly liquid bank balances.

1.20 Financial Derivatives and Hedging transactions

In respect of derivative contracts, premium paid, gains / losses on settlement and losses on restatement are recognised in the Profit and Loss account except in case where they relate to the acquisition or construction of fixed assets, in which case, they are adjusted to the carrying cost of such assets.

1.21 Provisions, Contingent liabilities and Contingent Assets

Contingent liabilities as defined in Accounting Standard 29 on "Provisions, Contingent Liabilities and Contingent Assets" are disclosed by way of notes to the accounts. Disclosure is not made if the possibility of an outflow of future economic benefits is remote. Provision is made if it is probable that an outflow of future economic benefits will be required to settle the obligation.

1.22 Insurance claims

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

---

Mar 31, 2011

A. GENERAL -

i. The Accounts have been prepared on the historical cost basis and on the accounting principles of a going concern and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

ii. Accounting Policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

iii. All expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

B. FIXED ASSETS -

i. Fixed assets are stated at cost of acquisition or construction less accumulated depreciation and impairment loss. All advances of capital nature have been directly capitalized to respective heads. Fixed Assets are capitalized on the day the assets are ready for their intended use.

ii. Borrowing Cost directly attributable to acquisition / construction of fixed assets which necessarily take a substantial time to get ready for their intended use are capitalized.

C. DEPRECIATIONS AMORTIZATION -

i) Depreciation has been provided on a straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

ii) Depreciation on machinery spares of the nature of capital / insurance spares and having irregular use is provided prospectively over a period, not exceeding the useful life of the fixed assets to which they relate.

iii) Depreciation on addition to the fixed assets or on sale / discardment of assets, is calculated on pro-rata basis.

iv) Cost of Software œt ERP Package is amortized at the rate applicable to Computers under Schedule XIV of the CompaniesAct, 1956 on SLM method.

v) Expenditure incurred, after the plant is ready for commercial production up to 31st March, 2010 are being carried forward as Deferred Revenue Expenditure and will be written off in five years from the date of commercial production.

D. INVESTMENTS -

Investments are classified as current or long-term in accordance with Accounting Standard 13 on "Accounting for Investments". Current investments are stated at cost or fair value whichever is less. Long term investments are stated at cost.

F. DEFERRED REVENUE EXPENDITURE -

Deferred Revenue Expenditure is charged to Profit & Loss Account over a period of 5 years from the year of commencement of commercial production.

G. REVENUE RECOGNITION -

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection.

Sales of goods are recognized when goods are supplied and are recorded net of trade discounts.

Sale of Power is accounted for, based on the provisions of Energy Purchase Agreement entered into with Maharashtra State Electricity Distribution Co. Ltd. Captive consumption of steam and power are accounted for, at annual average cost plus 14% of the said cost.

H. INVENTORIES -

a) Raw Materials are valued at Cost (Weighted Average)

b) Finished Goods are valued at cost or net realizable value, whichever is lower (including excise duty at the rates applicable)

c) Cost comprises all cost of purchases, cost of conversion and other costs incurred in bringing the inventories to the present location and condition. Cost formulae used is weighted average cost.

d) By-products/Scrap materials are valued at net realisable value (including excise duty at the rates applicable).

I. SUNDRY DEBTORS AND LOANS AND ADVANCES -

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit and Loss Account and are stated Net of Debit/Credit Balances written off, wherever applicable. Irrecoverable amounts, if any, that may arise due to unadjusted and unsettled claims in respect of various items like rebate, discounts, short receipts defective supplies etc. are accounted and/or provided only upon final settlement of account with the parties as per the management's judgement of the potential outcome.

J. RETIREMENT BENEFITS -

a) Defined contribution plan: Provident fund, Superannuation fund and Employee' State Insurance Corporation (ESIC) are the defined contribution schemes offered by the Company. The contributions to these schemes are charged to the profit and loss account of the year in which contribution to such schemes becomes due.

b) Defined benefit plan and Long term Employee benefits : Gratuity liability is provided on the basis of an actuarial valuation made at the end of each financial year as per Projected Unit Credit method. Actuarial gains or losses arising from such valuation are charged to revenue in the year in which they arise.

Provision for Leave Encashment is made on accrual basis on the basis of accumulated leave to the credit of the employee as at the year end, based on arithmetical calculations.

K. FOREIGN CURRENCYTRANSACTIONS. FORWARD CONTRACTS a DERIVATIVES -

i) Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of the transaction.

ii) At each balance sheet date, foreign currency monetary items are reported using the closing rate. Non- monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

iii) Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Company's monetary items at the closing rate are recognised as income or expense in the period in which they arise.

iv) The premium or the discount on forward exchange contracts not relating to firm commitments or highly probable forecast transactions and not intended for trading or speculation purpose is amortised as expense or income over the life of the contract

L. RESEARCH & DEVELOPMENT EXPENSES -

Revenue expenditure in respect of Research & Development Expenses are charged to revenue account in the year in which they are incurred and capital expenditure added to the cost of fixed assets. In view of the Guidance note of the ICAI on "Accounting for Miscellaneous Expenditure" appropriate amounts have been allocated to intangible assets & disclosed under the head "Miscellaneous Expenditure".

M. BORROWING COST -

Borrowing cost directly attributable to the acquisition or construction oT qualifying assets as defined in Accounting Standard 16 on "Borrowing Costs" are capitalized as part of the cost of such assets up to the date when the asset is ready for its intended use. Other borrowing cost are charged to the profit and loss account in the year in which the same is incurred.

N. TAXES ON INCOME -

Provision for current tax is made on the basis of estimated taxable income for the current accounting year computed in accordance with the Income Tax Act, 1961.

Deferred tax resulting from timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in the future.

0. IMPAIRMENT OF FIXED ASSETS -

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's fixed assets. If any indications exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceed its recoverable amount. The recoverable amount would be greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

P. EARNINGS PER SHARE -

The Company reports basic and diluted Earnings per share (EPS) in accordance with Accounting Standard 20 on "Earnings per Share". Basic EPS is computed 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 computed 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 as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

Q. GLOBAL DEPOSITORY RECEIPTS (GDR) ISSUE EXPENSES -

The GDR issue expenses and foreign exchange fluctuation loss are adjusted against Securities Premium in accordance with Section 78 of the Companies Act, 1956.

R. CASH FLOW STATEMENT -

The Cash Flow Statement is prepared by the "indirect method" set out in Accounting Standard 3 on "Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the Company. Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on hand and unencumbered, highly liquid bank balances.

S. CONTINGENT LIABILITIES -

Contingent liabilities as defined in Accounting Standard 29 on "Provisions, Contingent Liabilities and Contingent Assets" are disclosed by way of notes to the accounts. Disclosure is not made if the possibility of an outflow of future economic benefits is remote. Provision is made if it is probable that an outflow of future economic benefits will be required to settle the obligation.

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Mar 31, 2010

A. GENERAL -

i. The Accounts have been prepared on the historical cost basis and on the accounting principles of a going concern and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

ii. Accounting Policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

iii. All expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

B. FIXED ASSETS -

i. Fixed assets are stated at cost. All advances of capital nature have been directly capitalized to respective heads. Fixed Assets are capitalized on the day the assets are put to use.

ii. Borrowing Cost directly attributable to acquisition / construction of fixed assets which necessarily take a substantial time to get ready for their intended use are capitalized.

iii. Capital Work in Progress includes advances paid for capital contracts.

C. DEPRECIATION & AMORTIZATION -

i) Depreciation has been provided on a straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

ii) Depreciation on machinery spares of the nature of capital/insurance spares and having irregular use is provided prospectively over a period, not exceeding the useful life of the fixed assets to which they relate.

iii) INTANGIBLE ASSETS : Cost of Software & ERP Package is amortized at the rate applicable to Computers under Schedule XIV of the Companies Act, 1956 on SLM method.

iv) Expenditure incurred, after the plant is ready for commercial production up to 31 st March, 2010 are being carried forward as Deferred Revenue Expenditure and will be written off in three years from the date of commercial production.

D. INVESTMENTS - Investments are stated at cost.

E. PRELIMINERY & SHARE ISSUE EXPENSES -

Preliminary and Share Issue Expenses are charged to Profit & Loss Account over a period of 10 years.

F. DEFERRED REVENUE EXPENDITURE -

Deferred Revenue Expenditure is charged to Profit & Loss Account over a period of 5 years.

G. REVENUE RECOGNITION -

Sales are recognized when goods are supplied and are recorded net of trade discounts.

H. INVENTORIES -

a) Raw Materials are valued at Cost (Weighted Average).

b) Finished Goods are valued at cost or net realizable value, whichever is lower (including excise duty at the rates applicable).

c) Cost comprises all cost of purchases, cost of conversion and other costs incurred in bringing the inventories to the present location and condition. Cost formula used is weighted average cost.

d) By-products/Scrap materials are valued at net realisable value (including excise duty at the rates applicable).

I. SUNDRY DEBTORS AND LOANS AND ADVANCES -

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit and Loss Account and are stated Net of Debit/Credit Balances written off, wherever applicable. Irrecoverable amounts, if any, that may arise due to unadjusted and unsettled claims in respect of various items like rebate, discounts, short receipts defective supplies etc. are accounted and/or provided only upon final settlement of account with the parties as per the managements judgement of the potential outcome.

J. RETIREMENT BENEFITS -

a) Defined contribution plan : Provident fund, Superannuation fund and Employee State Insurance Corporation (ESIC) are the defined contribution schemes offered by the Company. The contributions to these schemes are charged to the profit and loss account of the year in which contribution to such schemes becomes due.

b) Defined benefit plan and Long term Employee benefits : Gratuity liability is provided on the basis of an actuarial valuation made at the end of each financial year as per Projected Unit Credit method. Actuarial gains or losses arising from such valuation are charged to revenue in the year in which they arise.

Provision for Leave Encashment is made on accrual basis on the basis of accumulated leave to the credit of the employee as at the year end, based on arithmetical calculations.

L. RESEARCH & DEVELOPMENT EXPENSES -

Revenue expenditure in respect of Research & Development Expenses are charged to revenue account in the year in which they are incurred and capital expenditure added to the cost of fixed assets. In view of the Guidance note of the ICAI on "Accounting for Miscellaneous Expenditure" appropriate amounts have been allocated to intangible assets & disclosed under the head "Miscellaneous Expenditure".

M. BORROWING COST -

Borrowing cost directly attributable to the acquisition or construction of fixed assets are capitalized as part of the assets up to the date the assets are put to use. Other borrowing cost are charged to the profit and loss account in the year in which the same is incurred.

N. TAXES ON INCOME -

Provision for current tax is made on the basis of estimated taxable income for the current accounting year computed in accordance with the Income Tax Act, 1961.

Deferred tax resulting from timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in the future.

O. IMPAIRMENT OF FIXED ASSETS -

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Companys fixed assets. If any indications exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceed its recoverable amount. The recoverable amount would be greater of the net selling price and

value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

---

Mar 31, 2009

A. GENERAL -

i. The Accounts have been prepared on the historical cost basis and on the accounting principles of a going concern and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

ii. Accounting Policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

iii. All expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

B. FIXED ASSETS -

i. Fixed assets are stated at cost. All advances of capital nature have been directly capitalized to respective heads. Fixed Assets are capitalized on the day the assets are put to use.

ii. Borrowing Cost directly attributable to acquisition / construction of fixed assets which. necessarily take a substantial time to get ready for their intended use are capitalized.

iii. Capital Work in Progress includes advances paid for capital contracts.

C. DEPRECIATION & AMORTIZATION -

i) Depreciation has been provided on a straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

ii) Depreciation on machinery spares of the nature of capital/insurance spares and having irregular use is provided prospectively over a period, not exceeding the useful life of the fixed assets to which they relate.

iii) INTANGIBLE ASSETS : Cost of Software & ERP Package is amortized at the rate applicable to Computers under Schedule XIV of the Companies Act, 1956 on SLM method.

D. INVESTMENTS - Investments are stated at cost.

E. PRELIMINERY & SHARE ISSUE EXPENSES -

Preliminary and Share Issue Expenses are charged to Profit&Loss Account over a period of 10 years.

F. DEFERRED REVENUE EXPENDITURE -

Deferred Revenue Expenditure is charged to Profit & Loss Account over a period of 5 years.

G. REVENUE RECOGNITION -

Sales are recognized when goods are supplied and are recorded net of trade discounts.

H. INVENTORIES -

a) Raw Materials are valued at Cost (Weighted Average).

b) Finished Goods are valued at cost or net realizable value, whichever is lower (including excise duty at the rates applicable).

c) Cost comprises all cost of purchases, cost of conversion and other costs incurred in bringing the inventories to the present location and condition. Cost formula used is weighted average cost.

d) By-products/Scrap materials are valued at net realisable value (including excise duty at the rates applicable).

I. SUNDRY DEBTORS AND LOANS AND ADVANCES -

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit and Loss Account and are stated Net of Debit/Credit Balances written off, wherever applicable. Irrecoverable amounts, if any, that may arise due to unadjusted and unsettled claims in respect of various items like rebate, discounts, short receipts defective supplies etc. are accounted and/or provided only upon final settlement of account with the parties as per the managements judgement of the potential outcome.

J. RETIREMENT BENEFITS -

a) Provident Fund and other contributions as required under the relevant statutes/rules are accounted for on accrual basis.

b) Provision for Gratuity is made on accrual basis at year end based on arithmetical calculations.

c) Provision for Leave Encashment is made on accrual basis on the basis of accumulated leave to the credit of the employee as at the year end, based on arithmetical calculations.

K. RESEARCH & DEVELOPMENT EXPENSES -

Revenue expenditure in respect of Research & Development Expenses are charged to revenue account in the year in which they are incurred and capital expenditure added to the cost of fixed assets. In view of the Guidance note of the ICAI on "Accounting for Miscellaneous Expenditure"

appropriate amounts have been allocated to intangible assets & disclosed under the head "Miscellaneous Expenditure.

L. BORROWING COST -

Borrowing cost directly attributable to the acquisition or construction of fixed assets are capitalized as part of the assets up to the date the assets are put to use. Other borrowing cost are charged to the profit and loss account in the year in which the same is incurred.

M. TAXES ON INCOME -

Provision for current tax is made on the basis of estimated taxable income for the current accounting year computed in accordance with the Income Tax Act, 1961.

Deferred tax resulting from timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in the future.

N. IMPAIRMENT OF FIXED ASSETS -

Consideration is given at each balance sheet date to determine whether there is any indication of* impairment of the carrying amount of the Companys fixed assets. If any indications exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceed its recoverable amount. The recoverable amount would be greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

---

Mar 31, 2008

A. GENERAL -

1. The Accounts have been prepared on the historical cost basis and on the accounting principles of a going concern and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

ii. Accounting Policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

iii. All expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

B. FIXED ASSETS -

Fixed assets are stated at cost. All advances of capital nature have been directly capitalized to respective heads. Fixed Assets are capitalized on the day the assets are put to use.

C. DEPRECIATION-

i) Depreciation has been provided on a straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

ii) Depreciation on machinery spares of the nature of capital/insurance spares and having irregular use is provided prospectively over a period, not exceeding the useful life of the fixed assets to which they relate.

D. INVESTMENTS- Investments are stated at cost.

E. PRELIMINERY & SHARE ISSUE EXPENSES -

Preliminary and Share Issue Expenses are charged to Profit&Loss Account over a period of 10 years.

F. DEFERRED REVENUE EXPENDITURE -

Deferred Revenue Expenditure is charged to Profit & Loss Account over a period of 5 years.

G. REVENUE RECOGNITION - Sales are recognized when goods are supplied and are recorded net of trade discounts.

H. INVENTORIES -

a) Raw Materials are valued at Cost (Weighted Average)

b) Finished Goods are valued at cost or net realizable value, whichever is lower (including excise duty at the rates applicable)

c) Cost comprises all cost of purchases, cost of conversion and other costs incurred in bringing the inventories to the present location and condition. Cost formula used is weighted average cost.

d) By-products/Scrap materials are valued at net realisable value (including excise duty at the rates applicable).

L. SUNDRY DEBTORS AND LOANS AND ADVANCES -

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit and Loss Account and are stated Net of Debit/Credit Balances written off, wherever applicable. Irrecoverable amounts, if any, that may arise due to unadjusted and unsettled claims in respect of various items like rebate, discounts, short receipts defective supplies etc. are accounted and/or provided only upon final settlement of account with the parties as per the managements judgement of the potential outcome.

J. RETIREMENT BENEFITS -

a) Provident Fund and other contributions as required under the relevant statutes/rules are accounted for on accrual basis.

b) Provision for Gratuity is made on accrual basis at year end based on arithmetical calculations.

c) Provision for Leave Encashment is made on accrual basis on the basis of accumulated leave to the credit of the employee as at the year end, based on arithmetical calculations.

K. FOREIGN CURRENCY TRANSACTIONS -

Transactions in foreign currencies are accounted for at the rate prevailing on the date of transaction. Any exchange gain or loss is accounted for in the profit and loss account.

L RESEARCH & DEVELOPMENT EXPENSES -

Revenue expenditure in respect of Research & Development Expenses are charged to revenue account in the year in which they are incurred and capital expenditure added to the cost of fixed assets. In view of the Guidance note of the ICAI on "Accounting for Miscellaneous Expenditure" appropriate amounts have been allocated to intangible assets & disclosed under the head "Miscellaneous Expenditure."

M. BORROWING COST -

Borrowing cost directly attributable to the acquisition or construction of fixed assets are capitalized as part of the assets up to the date the assets are put to use. Other borrowing cost are charged to the profit and loss account in the year in which the same is incurred.

N. TAXES ON INCOME -

Provision for current tax is made on the basis of estimated taxable income for the current accounting year computed in accordance with the Income Tax Act, 1961. Deferred tax resulting from timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in the future.

0. IMPAIRMENT OF FIXED ASSETS -

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Companys fixed assets. If any indications exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceed its recoverable amount. The recoverable amount would be greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

---

Mar 31, 2007

1. SIGNIFICANT ACCOUNTING POLICIES :

A. GENERAL -

i. The Accounts have been prepared on the historical cost basis and on the accounting principles of a going concern and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

ii. Accounting Policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

iii. All expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

B. FIXED ASSETS -

Fixed assets are stated at cost. All advances of capital nature have been directly capitalized to respective heads. Fixed Assets are capitalized on the day the assets are put to use.

C. DEPRECIATION -

i) Depreciation has been provided on a straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

ii) Depreciation on machinery spares of the nature of capital/insurance spares and having irregular use is provided prospectively over a period, not exceeding the useful life of the fixed assets to which they relate.

D. INVESTMENTS - Investments are stated at cost.

E. PRELIMINARY & SHARE ISSUE EXPENSES -

Preliminary and Share Issue Expenses are charged to Profit&Loss Account over a period of 10 years.

F. DEFERRED REVENUE EXPENDITURE -

Deferred Revenue Expenditure is charged to Profit & Loss Account over a period of 5 years.

G. REVENUE RECOGNITION - Sales are recognized when goods are supplied and are recorded net of trade discounts.

H. INVENTORIES -

a) Raw Materials are valued at Cost (Weighted Average)

b) Finished Goods are valued at cost or net realizable value, whichever is lower (including excise duty at the rates applicable)

c) Cost comprises all cost of purchases, cost of conversion and other costs incurred in bringing the inventories to the present location and condition. Cost formula used is weighted average cost.

d) By-products/Scrap materials are valued at net realisable value (including excise duty at the rates applicable).

I. SUNDRY DEBTORS AND LOANS AND ADVANCES -

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit and Loss Account and are stated Net of Debit/Credit Balances written off, wherever applicable. Irrecoverable amounts, if any, that may arise due to unadjusted and unsettled claims in respect of various items like rebate, discounts, short receipts defective supplies etc. are accounted and/or provided only upon final settlement of account with the parties as per the management's judgement of the potential outcome.

J. RETIREMENT BENEFITS -

a) Provident Fund and other contributions as required under the relevant statutes/rules are accounted for on accrual basis.

b) Provision for Gratuity is made on accrual basis at year end based on arithmetical calculations.

c) Provision for Leave Encashment is made on accrual basis on the basis of accumulated leave to the credit of the employee as at the year end, based on arithmetical calculations.

K. FOREIGN CURRENCY TRANSACTIONS -

Transactions in foreign currencies are accounted for at the rate prevailing on the date of transaction. Any exchange gain or loss is accounted for in the profit and loss account.

L. RESEARCH & DEVELOPMENT EXPENSES -

Revenue expenditure in respect of Research & Development Expenses are charged to revenue account in the year in which they are incurred and capital expenditure added to the cost of fixed assets. In view of the Guidance note of the ICAI on "Accounting for Miscellaneous Expenditure" appropriate amounts have been allocated to intangible assets & disclosed under the head "Miscellaneous Expenditure."

M. BORROWING COST -

Borrowing cost directly attributable to the acquisition or construction of fixed assets are capitalized as part of the assets up to the date the assets are put to use. Other borrowing cost are charged to the profit and loss account in the year in which the same is incurred.

N. TAXES ON INCOME -

Provision for current tax is made on the basis of estimated taxable income for the current accounting year computed in accordance with the Income Tax Act, 1961.

Deferred tax resulting from timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in the future.

O. IMPAIRMENT OF FIXED ASSETS -

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's fixed assets. If any indications exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceed its recoverable amount. The recoverable amount would be greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

---

Mar 31, 2006

A. GENERAL -

i. The Accounts have been prepared on the historical cost basis and on the accounting principles of a going concern and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

ii. Accounting Policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

iii. All expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

B. FIXED ASSETS -

Fixed assets are stated at cost. All advances of capital nature have been directly capitalized to respective heads. Fixed Assets are capitalized on the day the assets are put to use.

C. DEPRECIATION -

i) Depreciation has been provided on a straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

ii) Depreciation on machinery spares of the nature of capital/insurance spares and having irregular use is provided prospectively over a period, not exceeding the useful life of the fixed assets to which they relate.

D. INVESTMENTS - Investments are stated at cost.

E. PRELIMINERY & SHARE ISSUE EXPENSES -

Preliminary and Share Issue Expenses are charged to Profit&Loss Account over a period of 10 years.

F. DEFERRED REVENUE EXPENDITURE -

Deferred Revenue Expenditure is charged to Profit & Loss Account over a period of 5 years.

G. REVENUE RECOGNITION -

Sales are recognized when goods are supplied and are recorded net of trade discounts.

H. INVENTORIES -

a) Raw Materials are valued at Cost (Weighted Average)

b) Finished Goods are valued at cost or net realizable value, whichever is lower (including excise duty at the rates applicable)

c) Cost comprises all cost of purchases, cost of conversion and other costs incurred in bringing the inventories to the present location and condition. Cost formula used is weighted averagecost.

d) By-products/Scrap materials are valued at net realisable value (including excise duty at the rates applicable).

I. SUNDRY DEBTORS AND LOANS AND ADVANCES -

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit and Loss Account and are stated Net of Debit/Credit Balances written off, wherever applicable. Irrecoverable amounts, if any, that may arise due to unadjusted and unsettled claims in respect of various items like rebate, discounts, short receipts defective supplies etc. are accounted and/or provided only upon final settlement of account with the parties as per the managements judgement of the potential outcome.

J. RETIREMENT BENEFITS -

a) Provident Fund and other contributions as required under the relevant statutes/rules are accounted for on accrual basis.

b) Provision for Gratuity is made on accrual basis at year end based on arithmetical calculations.

c) Provision for Leave Encashment is made on accrual basis on the basis of accumulated leave to the credit of the employee as at the year end, based on arithmetical calculations.

K. FOREIGN CURRENCY TRANSACTIONS -

Transactions in foreign currencies are accounted for at the rate prevailing on the date of transaction. Any exchange gain or loss is accounted for in the profit and loss account.

L. RESEARCH & DEVELOPMENT EXPENSES -

Revenue expenditure in respect of Research & Development Expenses are charged to revenue account in the year in which they are incurred and capital expenditure added to the cost of fixed assets. In view of the Guidance note of the ICAI on "Accounting for Miscellaneous Expenditure" appropriate amounts have been allocated to intangible assets & disclosed under the head "Miscellaneous Expenditure."

M. BORROWING COST -

Borrowing cost directly attributable to the acquisition or construction of fixed assets are capitalized as part of the assets up to the date the assets are put to use. Other borrowing cost are charged to the profit and loss account in the year in which the same is incurred.

N. TAXES ON INCOME -

Provision for current tax is made on the basis of estimated taxable income for the current accounting year computed in accordance with the Income Tax Act, 1961.

Deferred tax resulting from timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in the future.

O. IMPAIRMENT OF FIXED ASSETS -

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Companys fixed assets. If any indications exists, an assets recoverable amount is estimated. An impairment loss is. recognized whenever the carrying amount of an asset exceed its recoverable amount. The recoverable amount would be greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

---

Mar 31, 2005

A. GENERAL -

i. The Accounts have been prepared on the historical cost basis and on the accounting principles of a going concern and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

ii. Accounting Policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

iii. All expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

B. FIXED ASSETS -

Fixed assets are stated at cost. All advances of capital nature have been directly capitalized to respective heads. Fixed Assets are capitalized on the day the assets are put to use.

C. DEPRECIATION -

i) Depreciation has been provided on a straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

ii) Depreciation on machinery spares of the nature of capital/insurance spares and having irregular use is provided prospectively over a period, not exceeding the useful life of the fixed assets to which they relate.

D. INVESTMENTS -

Investments are stated at cost.

E. PRELIMINERY & SHARE ISSUE EXPENSES -

Preliminary and Share Issue Expenses are charged to Profit & Loss Account over a period of 10 years.

F. DEFERRED REVENUE EXPENDITURE -

Deferred Revenue Expenditure is charged to Profit & Loss Account over a period of 5 years.

G. REVENUE RECOGNITION -

Sales are recognized when goods are supplied and are recorded net of trade discounts.

H. INVENTORIES -

a) Raw Materials are valued at Cost

b) Finished Goods are valued at cost or net realizable value, whichever is lower (including excise duty at the rates applicable)

c) Cost comprises all cost of purchases, cost of conversion and other costs incurred in bringing the inventories to the present location and condition. Cost formula used is weighted average cost.

d) By-products/Scrap materials are valued at net realisable value (including excise duty at the rates applicable).

I SUNDRY DEBTORS AND LOANS AND ADVANCES -

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit and Loss Account and are stated Net of Debit/Credit Balances written off, wherever applicable. Irrecoverable amounts, if any, that may arise due to unadjusted and unsettled claims in respect of various items like rebate, discounts, short receipts defective supplies etc. are accounted and/or provided only upon final settlement of account with the parties as per the managements judgement of the potential outcome.

J. RETIREMENT BENEFITS -

a) Provident Fund and other contributions as required under the relevant statutes/rules are accounted for on accrual basis.

b) Provision for Gratuity and Leave Encashment is made on accrual basis based on arithmetical calculations.

K. FOREIGN CURRENCY TRANSACTIONS -

Transactions in foreign currencies are accounted for at the rate prevailing on the date of transaction. Any exchange gain or loss is accounted for in the profit and loss account.

L. RESEARCH & DEVELOPMENT EXPENSES -

Revenue expenditure in respect of Research & Development Expenses are charged to revenue account in the year in which they are incurred and capital expenditure added to the cost of fixed assets. In view of the Guidance note of the ICAI on "Accounting for Miscellaneous Expenditure" appropriate amounts have been allocated to intangible assets & disclosed under the head "Miscellaneous Expenditure."

M. BORROWING COST -

Borrowing cost directly attributable to the acquisition or construction of fixed assets are capitalized as part of the assets up to the date the assets are put to use. Other borrowing cost are charged to the profit and loss account in the year in which the same is incurred.

N. TAXES ON INCOME -

Provision for current tax is made on the basis of estimated taxable income for the current accounting year computed in accordance with the Income Tax Act, 1961.

Deferred tax resulting from timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in the future.

---

Mar 31, 2004

1. SIGNIFICANT ACCOUNTING POLICIES :

A. GENERAL -

i. The Accounts have been prepared on the historical cost basis and on the accounting principles of a going concern and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

ii. Accounting Policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

iii. All expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

B. FIXED ASSETS

Fixed assets are stated at cost. All advances of capital nature have been directly capitalized to respective heads. Fixed Assets are capitalized on the day the assets are put to use.

C. DEPRECIATION

i) Depreciation has been provided on a straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

ii) Depreciation on machinery spares of the nature of capital/insurance spares and having irregular use is provided prospectively over a period, not exceeding the useful life of the fixed assets to which they relate.

D. INVESTMENTS

Investments are stated at cost.

E. PRELIMINERY & SHARE ISSUE EXPENSES

Preliminary and Share Issue Expenses are charged to Profit & Loss Account over a period of 10 years.

F. DEFERRED REVENUE EXPENDITURE

Deferred Revenue Expenditure is charged to Profit & Loss Account over a period of 5 years.

G. REVENUE RECOGNITION

Sales are recognized when goods are supplied and are recorded net of trade discounts.

H. INVENTORIES

a) Raw Materials are valued at Cost

b) Finished Goods are valued at cost or net realizable value, whichever is lower (including excise duty at the rates applicable)

c) Cost comprises all cost of purchases, cost of conversion and other costs incurred in bringing the inventories to the present location and condition. Cost formula used is weighted average cost.

d) By-products/Scrap materials are valued at net realisable value (including excise duty at the rates applicable).

I. SUNDRY DEBTORS AND LOANS AND ADVANCES

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit and Loss Account and are stated. Net of Debit/Credit Balances written off, wherever applicable. Irrecoverable amounts, if any, that may arise due to unadjusted and unsettled claims in respect of various items like rebate, discounts, short receipts defective supplies etc. are accounted and/or provided only upon final settlement of account with the parties as per the managements judgement of the potential outcome.

J. RETIREMENT BENEFITS

a) Provident Fund and other contributions as required under the relevant statutes/rules are accounted for on accrual basis.

b) Provision for Gratuity and Leave Encashment is made on accrual basis based on arithmetical calculations.

K. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are accounted for at the rate prevailing on the date of transaction. Any exchange gain or loss is accounted for in the profit and loss account.

L. RESEARCH & DEVELOPMENT EXPENSES

Revenue expenditure in respect of Research & Development Expenses are charged to revenue account in the year in which they are incurred and capital expenditure added to the cost of fixed assets. In view of the Guidance note of the ICAI on "Accounting for Miscellaneous Expenditure" appropriate amounts have been allocated to intangible assets & disclosed under the head "Miscellaneous Expenditure."

M. BORROWING COST

Borrowing cost directly attributable to the acquisition or construction of fixed assets are capitalized as part of the assets up to the date the assets are put to use. Other borrowing cost are charged to the profit and loss account in the year in which the same is incurred.

N. TAXES ON INCOME

Provision for current tax is made on the basis of estimated taxable income for the current accounting year computed in accordance with the Income Tax Act, 1961. Deferred tax resulting from timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that, these would be realized in the future.

---

Mar 31, 2003

A. GENERAL:

i. The Accounts have been prepared on the historical cost basis and on the accounting principles of a going concern and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

ii. Accounting Policies not specifically referred to otherwise are consistant and are in consonance with generally accepted accounting principles.

iii. All expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

B. FIXED ASSETS :

Fixed assets are stated at cost. All advances of capital nature have been directly capitalised to respective heads. Fixed Assets are capitalised on the day the assets are put to use.

C. DEPRECIATION :

i. Depreciation has been provided on a straight-line method at the rates and in the manner prescribed in schedule XIV to the Companies Act,1956.

ii. Depreciation on machinery spares of the nature of capital/insurance spares and having irregular use is provided prospectively over a period, not exceeding the. useful life of the fixed assets to which they relate.

D. INVESTMENTS:

Investments are stated at cost.

E. PRELIMINERY & SHARE ISSUE EXPENSES :

Preliminery and Share Issue Expenses are charged to Profit & Loss Account over a period of 10 years.

F. DEFERRED REVENUE EXPENDITURE:

Deferred Revenue Expenditure is charged to Profit & Loss Account over a period of 5 years. Deferred Advertisements Expenses have been amortised over a period of 2 years.

G. REVENUE RECONGNITION :

Sales are recognised when good are supplied and are recorded net of trade discounts.

H. INVENTORIES :

a) Raw Materials are valued at cost and Finished goods are valued at cost or net realisable value, whichever is lower.

b) Cost comprises of all cost of purchases, cost of conversion and other costs incurred in bringing the inventories to the present location and condition. Cost formulae used is weighted average cost.

I. SUNDRY DEBTORS AND LOANS AND ADVANCES:

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit & Loss account and are stated Net of Debit/Credit Balance written off, wherever applicable. Irrecoverable amounts, if any, that may arise due to unadjusted and unsettled claims in respect of various items like rebate, discounts, short receipts defactive supplies etc. are accounted and/or provided only upon final settlement of account with the parties as per the managements judgement of the potential outcome.

J. RETIREMENT BENEFITS :

a) Provident Fund and other constrbutions as required under the relevant statues/rules are accounted for on accrual basis.

b) Provision for Gratuity and Leaves Encashment is made on accrual basis based on arithmetical calculations.

K. FOREIGN CURRENCY TRANSACTIONS :

Transactions in foreign currencies are accounted for at the rate prevailing on the date of transacation. Any exchange gain or loss is accounted for in the profit and loss account.

L. RESEARCH & DEVELOPMENT EXPENSES:

Revenue expenditure in respect of Research & Development Expenses are charged to revenue account in the year in which they are incurred and capital expenditure added to the cost of fixed assets.

M. BORROWING COST :

Borrowing cost directly attributable to the acquisition or construction of fixed assets are capitalized as part of the assets up to the date, the assets are put to use. Other borrowing cost are charged to the profit & Loss Account in the year in which the same is incurred

N. TAXES ON INCOME :

Provision for current tax is made on the basis of estimated taxable income for the current accounting year computed in accordance with the income tax Act, 1961. Deffered tax resulting from timing differences between the book profits and tax profit for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deffered tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be relized in the future.

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Mar 31, 2002

A. GENERAL:

i. The Accounts have been prepared on the historical cost basis and on the accounting principles of a going concern and company with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

ii. Accounting Policies not specifically referred to otherwise are consistant and are in consonance with generally accepted accounting principles.

iii. All expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

B. FIXED ASSETS:

i. Fixed assets are stated at cost. All advances of capital nature have been directly capitalised to respective heads. Fixed Assets are capitalised on the day the assets are put to use.

C. DEPRECIATION :

Depreciation has been provided on a straight line method at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956.

D. INVESTMENTS:

Investments are stated at cost.

E. PRELIMINERY & SHARE ISSUE EXPENSES :

Preliminery and Share issue Expenses are charged to Profit & Loss Account over a period of 10 years.

F. DEFERRED REVENUE EXPENDITURE :

Deferred Revenue Expenditure is charged to Profit & Loss Account over a period of 5 years. Deferred Advertisement Expenses have been amortised over a period of 2 years.

G. REVENUE RECONGNITION :

Sales are recognised when goods are supplied and are recorded net of trade discounts and inclusive of Schemes to Consumers and Retailers.

H. INVENTORIES:

a) Raw Materials are valued at estimated cost and Finished Goods are valued at estimated cost or net realisable value, whichever is lower.

b) The Stock has been valued, as per the existing policy, on the basis of monthly weighted average cost method.

I. SUNDRY DEBTORS AND LOANS AND ADVANCES:

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit & Loss account and are stated Net of Debit/Credit Balances written off, wherever applicable.

J. RETIREMENT BENEFITS:

a) Provident Fund and other contributions as required under the relevant statutes/rules are accounted for on accrual basis.

b) Provision for Gratuity and Leave Encashment is made on accrual basis based on arithmetical calculations.

K. FOREIGN CURRENCY TRANSACTIONS: Transactions in foreign currencies are accounted for at the rate prevailing on the date of transaction. Any exchange gain or loss is accounted for in the profit and loss account.

L. RESEARCH & DEVELOPMENT EXPENSES : Research & Development Expenses are charged to revenue under the respective heads of accounts in the year in which they are incurred.

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Mar 31, 2001

A. GENERAL :

i. The Accounts have been prepared on the historical cost basis and on the accounting principles of a going concern.

ii. Accounting Policies not specifically referred to otherwise are consistant and are in consonance with generally accepted accounting principles.

iii. Ail expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

B. FIXED ASSETS :

i. Fixed assets are stated at cost. All advances of capital nature have been directly capitalised to respective heads.

C. DEPRECIATION :

Depreciation has been provided on a straight line method at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956.

D. INVESTMENTS :

Investments are stated at cost.

E. PRELIMINERY & SHARE ISSUE EXPENSES :

Preliminery and Share Issue Expenses are charged to Profit & Loss Account over a period of 10 years.

F. DEFERRED REVENUE EXPENDITURE :

Deferred Revenue Expenditure is charged to Profit & Loss Account over a period of 5 years.

G. REVENUE RECONGNiTiON :

Sales are recognised when goods are supplied and are recorded net of trade discounts.

H. INVENTORIES :

a) Raw Materials are vaiued at estimated cost and Finished Goods are valued at estimated cost or net reahsable value, whichever is lower.

b) The Stock has been valued on the basis of weighted average cost method.

I. SUNDRY DEBTORS AND LOANS AND ADVANCES :

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts. The debts written off are debited to the Profit & Loss account and are stated Net of Debit/Credit Balances written off.

J. RETIREMENT BENEFITS :

a) Provident Fund and other contributions as required under the relevant statutes/rules are accounted for on accrual basis.

b) Provision for Gratuity and Leave Encashment is made on accrual basis based on arithmetical calculations.

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Mar 31, 2000

A. GENERAL :

i. The Accounts have been prepared on the historical cost basis and on the accounting principles of a going concern.

ii. Accounting Policies not specifically referred to otherwise are consistant and are in consonance with generally accepted accounting principles.

iii. All expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

B. FIXED ASSETS :

i. Fixed assets are stated at cost. All advances of capital nature have been directly capitalised to respective heads.

C. DEPRECIATION :

Depreciation has been provided on a straight line method at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956.

D. INVESTMENTS :

Investments are stated at cost.

E. PRELIMINARY & SHARE ISSUE EXPENSES :

Preliminary and Share Issue Expenses are charged to Profit & Loss Account over a period of 10 years.

F. DEFERRED REVENUE EXPENDITURE :

Deferred Revenue Expenditure is charged to Profit & Loss Account over a period of 5 years.

G. REVENUE RECOGNITION :

Sales are recognised when goods are supplied and are recorded net of trade discounts.

H. INVENTORIES :

Raw Materials are valued at cost and Finished Goods are valued at cost or net realisable value, whichever is lower.

I. SUNDRY DEBTORS AND LOANS AND ADVANCES :

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts.

J. RETIREMENT BENEFITS :

Provident Fund and other contributions as required under the relevant statutes/rules are accounted for on accrual basis. Payments for Liability towards Gratuity and Leave Encashment is considered on Cash basis.

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Mar 31, 1999

1. GENERAL :

i. The Accounts have been prepared on the historical cost basis and on the accounting principles of a going concern.

ii. Accounting Policies not specifically referred to otherwise are consistant and are in consonance with generally accepted accounting principles.

iii. All expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

2. FIXED ASSETS :

Fixed Assets are stated at Cost. All advances of capital nature have been directly capitalised to respective heads.

Cost comprises of purchase price (net of Rebate & discounts), duties, levies and any direct attributable cost of bringing the assets to its working condition.

3. DEPRECIATION :

Depreciation has been provided on a prorata basis, on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

4. INVESTMENTS :

Investments are stated at cost.

5. PRELIMINARY & SHARE ISSUE EXPENSES :

Preliminary and Share Issue Expenses are charged to Profit & Loss A/c. over a period of 10 years.

6. DEFERRED REVENUE EXPENDITURE :

Deferred Revenue Expenditure is charged to Profit & Loss A/c. over a period of 5 years.

7. REVENUE RECOGNITION :

Sales are recognised when goods are supplied and are recorded net of trade discounts.

8. INVENTORIES :

Inventories are valued at lower of Cost and Estimated Net Realisable Value except Raw Materials, Packing Materials and Stores and Spares, which are valued at Cost. The method of determination of Cost of various categories of inventories are as follows :-

a) Raw Materials, Packing Materials and Stores and Spares at rates determined on `first-in-first-out' Method.

b) Finished Goods - Absorption Costing Method based on last quarters average cost of production.

9. SUNDRY DEBTORS AND LOANS AND ADVANCES :

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts.

10. RETIREMENT BENEFITS :

Contribution to Provident Fund and Family Pension Fund are made monthly, at a predetermined rate and debited to the Profit and Loss account on an accrual basis. We are informed that necessary formalities in connection with registration under The Gratuity Act are in process. Hence, no provision is made for gratuity payable.

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Mar 31, 1998

1. GENERAL :

The Accounts have been prepared on the historical cost basis and on the accounting principles of a going concern.

ii. Accounting Policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

iii. All expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

2. FIXED ASSETS :

i. FIXED ASSETS ARE STATED AT COST :

All advances of capital nature have been directly capitalised to respective heads.

3. DEPRECIATION :

Depreciation has been provided on a straight line method at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956.

4. INVESTMENTS :

Investments are stated at cost.

5. PRELIMINARY & SHARE ISSUE EXPENSES :

Preliminary and Share Issue Expenses are charged to Profit & Loss A/c. over a period of 10 years.

6. DEFERRED REVENUE EXPENDITURE :

Deferred Revenue Expenditure is charged to Profit & Loss A/c. over a period of 5 years.

7. REVENUE RECOGNITION :

Sales are recognised when goods are supplied and are recorded net of trade discounts.

8. INVENTORIES :

Raw Materials are valued at cast & finished goods are valued at cost or net realisable value whichever is lower.

9. SUNDRY DEBTORS AND LOANS AND ADVANCES :

Sundry Debtors and Loans and Advances are stated after making adequate provision for doubtful debts.

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Mar 31, 1996

A. GENERAL:

i. These accounts have been prepared on the historical cost basis and on the accounting principles of a going concern.

ii. Accounting Policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles.

iii. All expenses and incomes to the extent considered payable and receivable respectively have been accounted for on mercantile basis.

B. FIXED ASSETS:

i. Fixed Assets are stated at cost.

ii. Capital work-in-progress is valued at actual cost.

C. DEPRECIATION:

Depreciation has been provided on straight line method at the rates and in the manner prescribed in the Schedule XIV to the Companies Act, 1956.

D. INVESTMENTS:

Investments are stated at Cost.

E. PRELIMINARY & SHARE ISSUE EXPENSES:

Preliminary & Share Issue Expenses will be amortised over a period of ten years from the year of the commencement of commercial production