Accounting Policies of Ador Multiproducts Ltd. Company

Mar 31, 2015

A) Basis of preparation:

i. These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India ('Indian GAAP') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.

ii. The financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial instruments which are measured at fair value.

b) Use of estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles in India requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabiiities (including contingent liabilities) and the reported incomes and expenses during the reporting period. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable and based upon management's best knowledge of current events and actions. However, actual results could differ from these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materalise.

c) Fixed assets:

Fixed assets are stated at cost, less accumulated depreciation / amortisation. Costs include all expenses incurred to bring the asset to its present location and condition.

Tangible assets

Tangible assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of tangible assets comprise its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets. Subsequent expenditure related to an item of tangible assets are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Intangible assets

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the assets to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variation attributable to the intangible assets.

d) Depreciation and amortization:

In respect of fixed assets acquired during the year, depreciation/ amortisation is charged on a straight line basis as per Schedule II of the Companies Act. For the assets acquired prior to April 1,2014, the carrying amount as on April 1,2014 is depreciated over the remaining useful life of the fixed assets.

e) Impairment

The Management periodically assesses using external and internal sources whether there is an indication that assets of concerned cash generating unit may be impaired. Impairment loss, if any, is provided as per Accounting Standard (AS-28) on Impairment of Assets.

f) Investments:

Long-term investments and current maturities of long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments, except for current maturities of long-term investments, comprising investments in mutual funds are stated at the lower of cost and fair value.

g) Employee benefits:

Employee benefits include contributions to gratuity fund, superannuation fund and provident fund and liability for compensated absences:

i. Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial basis and the amount is charged to the Statement of Profit & Loss.

ii. Superannuation: The Company contributes towards its Employees' Superannuation Fund, for future payment of retirement benefits to employees. The contributions accruing during each year are charged to the Statement of Profit and Loss.

iii. Leave encashment liabilities are determined by actuarial valuation done at the end of the year and the charge for the current year is debited to the Statement of Profit and Loss.

iv Employer's contribution to Provident fund is charged to the Statement of Profit and Loss.

h) Revenue recognition

i. Revenue from sale of goods is recognised when significant risks and rewards of ownership of the goods have been passed to the buyer which is generally at the time of dispatch of goods to the customers

ii. Income from Conversion job is recognized on its completion and on its acceptance by the customers.

iii. Revenue from traded goods is recognised on sale of materials.

iv. Dividends are recorded when the right to receive payment is established. Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

i) Taxation

i. Current taxation:

Provision for current tax is computed after considering tax allowances and exemptions.

ii. Minimum Alternate tax :

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the balance sheet if there is evidence that the Company will pay normal tax in the future and when the resultant asset can be measured reliably.

iii. Deferred tax:

Deferred tax assets & liabilities are measured using the current tax rates. When there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only to the extent that there is virtual certainty of realisation of deferred tax assets. Other deferred tax assets are recognised to the extent, there is reasonable certainty of realisation of deferred tax assets. Such deferred tax assets & other unrecognised deferred tax assets are re-assessed at each Balance Sheet date and the carrying value of the same are adjusted recognising the change in the value of each such deferred tax assets.

j) Foreign currency transactions:

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognised in the Statement of profit and loss.

k) Inventories

i. Trading goods - at cost or net realisable value, whichever is lower;

ii. Raw materials & packing materials - At cost or net realisable value, whichever is lower.

iii. Process stock - At cost or estimated realisable value, whichever is lower and

iv. Finished goods - At cost or net realisable value, whichever is lower and are inclusive of Cenvat thereon.

v. Cost is determined as per weighted average basis.

l) Provisions, contingent liabilities and contingent assets:

In accordance with the Accounting Standard AS - 29 issued by The Institute of Chartered Accountants of India:

i. Provisions are made for the present obligations where amount can be estimated reliably, and

ii. Contingent liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of the liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of the Company. Contingent assets are neither recognised nor disclosed in the financial statements.

m) Cash and cash equivalents:

Cash and cash equivalents comprises of the Company's cash and deposits with banks, balances in current accounts with banks, which also includes restricted bank balances [reported with adequate disclosures]

n) Cash flow statement:

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. Cash flows from operating, investing and financing activities of the Company are segregated, accordingly.

o) Leases:

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vests with the lessor, are recognised as operating lease. Lease rentals under operating lease are recognised in the statement of profit and loss on a straight-line basis.

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Mar 31, 2014

Basis of preparation of the Financial Statements:

i The financial statements have been prepared in compliance with all material aspects with the Accounting Standards notified by the Companies (Accounting Standards) Rules 2006(as amended) and the relevant provisions of the Companies Act, 1956 read with General Circular No. 15/2013 dated 13th September 2013 issued by the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

ii Financial statements have been prepared on accrual basis under the historical cost convention.

iii The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

iv The preparation of financial statements in confirmity with the generally accepted accounting principles in India requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabiiities (including contingent liabilities) and the reported incomes and expenses during the reporting period. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable and based upon management''s best knowledge of current events and actions. However, actual results could differ from these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materalise.

The significant accounting policies adopted in the preparation and presentation of these financial statements are:

A Revenue recognition:

i Revenue from sale of goods is recognised on transfer of significant risks and rewards of owndership of the goods have been passed to the buyer which is generally at the time of dispatch of goods to the customers. ii Income from Conversion job is recognized on its completion and on its acceptance by the customers. iii Dividend income is accounted for in the year in which the right to receive the same is established. iv Interest income is recognized using the time-proportion method, based on rates implicit in the transaction.

B Fixed assets:

Tangible assets shown under gross block are valued at cost of acquisition inclusive of inward freight, duties, taxes & other incidental expenses related to its acquisition. All such direct costs are capitalized until the tangible fixed assets are ready for use.

Intangible assets relating to product development are recorded at actual cost incurred on development of products and are capitalized once the products receives approvals from the relevant authorities and the same are carried at cost less accumulated amortisation.

C Depreciation and amortisation:

i Depreciation on tangible assets has been calculated in accordance with the revised Schedule XIV of the Companies Act, 1956, as under:

a At the Cosmetics unit, tangible assets (except vehicles) being depreciated on the straight line method. In respect of vehicles, the written down value method has been adopted.

b At the Trading division, tangible assets being depreciated on written down value method. ii Depreciation on additions to fixed assets during the current year is charged on prorata basis, for the period of use. iii Intangible assets:-

a Product development are amortised over their estimated useful lives, which are amortised over a period of four years

b Website development costs are capitalised & amortised over a period of four years.

D Impairment of assets:

The Management periodically assesses using external and internal sources whether there is an indication that assets of concerned cash generating unit may be impaired. Impairment loss, if any, is provided as per Accounting Standard (AS-28) on Impairment of Assets.

E Investments:

Investments are valued at cost.

F Inventories are valued as under:

i Trading goods - at cost or net realisable value, whichever is lower;

ii Raw materials & packing materials - At cost or net realisable value, whichever is lower.

iii Process stock - At cost or estimated realisable value, whichever is lower and

iv Finished goods - At cost or net realisable value, whichever is lower and are inclusive of Cenvat thereon.

v Cost is determined as per weighted average basis.

G Employee benefits:

Employee benefits include contributions to gratuity fund, superannuation fund and provident fund and liability for compensated absences:

i Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial basis and the amount is charged to the Statement of Profit & Loss.

ii Superannuation: The Company contributes towards its Employees'' Superannuation Fund, for future payment of retirement benefits to employees. The contributions accruing during each year are charged to the Statement of Profit and Loss.

iii Leave encashment liabilities are determined by actuarial valuation done at the end of the year and the charge for the current year is debited to the Statement of Profit and Loss.

iv Employer''s contribution to Provident fund is charged to the Statement of Profit and Loss.

H Foreign currency transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of transaction. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

Assets & liabilities in foreign currency are restated at the year-end exchange rates.

I Leases:

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the lessed assets, are classified are operating leases.

Lease rental payments under operating leases are recognized as an expense on a straight line basis over the term of lease in the Statement of Profit and loss.

J Taxes on income:

i Current taxation:

Provision for current tax is computed after considering tax allowances and exemptions.

ii Minimum Alternate tax :

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the balance sheet if there is evidence that the Company will pay normal tax in the future and when the resultant asset can be measured reliably.

iii Deferred tax:

Deferred tax assets & liabilities are measured using the current tax rates. When there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only to the extent that there is virtual certainty of realisation of deferred tax assets. Other deferred tax assets are recognised to the extent, there is reasonable certainty of realisation of deferred tax assets. Such deferred tax assets & other unrecognised deferred tax assets are re-assessed at each Balance Sheet date and the carrying value of the same are adjusted recognising the change in the value of each such deferred tax assets.

K Provisions, contingent liabilities and contigent assets:

In accordance with the Accounting Standard AS – 29 issued by The Institute of Chartered Accountants of India:

a provisions are made for the present obligations where amount can be estimated reliably, and

b contingent liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of the liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of the company. Contingent assets are neither recognised nor disclosed in the financial statements.

L Cash flow statement :

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. Cash flows from operating, investing and financing activities of the Company are segregated, accordingly.

M Segment reporting policies:

The Company prepares the segment information in conformity with accounting polices adopting for preparing and presenting the financial statements of the Company.

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Mar 31, 2013

Basis of preparation of the Financial Statements:

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) in India and presented under the historical cost basis of accounting and evaluated on a going concern basis, with revenues recognized and expenses accounted for on their accrual to comply in all material aspects with the applicable Accounting Principles, the applicable Accounting Standards notified u/s. 211 (3C) of the Companies Act, 1956, other relevant provisions of the Companies Act, 1956 and the guidelines issued by the Securities and Exchange Board of India (SEBI).

Use of estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported balances of assets on the date of the financial statements and the reported amount of revenues and expenses during the . reporting period. Accounting estimates could change from period to period. Actual results could differ from these estimates. Appropriate changes in estimates are made as and when the Management becomes aware of changes in the circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which the changes are made and if material, their effects are disclosed in the notes to the financial statements.

Significant accounting policies adopted in the preparation and presentation of these financial statements are:

A. Revenue recognition:

i. Sales are recognized when goods are supplied and are recorded net of discounts. Sale revenues are presented net of value-added taxes in the Statement of Profit and Loss.

ii Income from conversion job is recognized on its completion and on its acceptance by the customers.

iii Dividend income is accounted for in the year in which the right to receive the same is established.

iy Interest income is recognized using the time-proportion retched, based on rates implicit in the transaction.

B. Fixed assets:

Tangible assets shown under gross block are valued at cost of acquisition inclusive of inward freight, duties, taxes and other incidental expenses related to its acquisition. All such direct costs are capitalized when the tangible fixed assets are ready for use.

Intangible assets relating to product development are recorded at actual cost incurred on development of products and are capitalized once the products receive approvals from the relevant authorities and the same are carried at cost less accumulated amortization.

C. Depreciation and amortization: .

i Depreciation on tangible assets have been calculated in accordance with the revised Schedule XIV of the Companies Act, 1956 as under:

a. At the cosmetics unit, tangible assets (except vehicles) being depreciated on straight line method. In respect of vehicles, written down value method has been adopted.

b. At the Trading division, tangible assets being depreciated on written down value method.

ii Depreciation on additions to fixed assets during the current year is charged on prorate basis, for the period of use.

iii Intangible assets are amortized over their estimated useful lives.

D. Impairment of assets: .

Impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. *

E. Investments:

Investments are valued at cost.

F. Inventories are valued as under:

i Trading goods - at cost or net realizable value, whichever is lower;

ii Raw materials and packing materials - At cost or net realizable value, whichever is lower.

iii Process stock - At cost or estimated realizable value, whichever is lower and

iv Finished goods - At cost or net realizable value, whichever is lower and are inclusive of canvas thereon. Note: Cost is determined on a weighted average basis.

G. Employee benefits: .

i Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial basis and the amount is charged to the Statement of Profit and Loss.

ii Superannuation: The Company contributes towards superannuation fund, for future payment of retirement benefits to employees. The contributions accruing during each year are charged to the Statement of Profit and Loss.

iii Leave encashment liabilities are determined by actuarial valuation done at the end of the year and the charge for the current year is debited to the Statement of Profit and Loss.

iv Employer''s contribution to Provident fund is charged to the Statement of Profit and Loss.

H. Foreign currency transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate on the date of transaction. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss. Assets and -Liabilities payable in foreign currencies are restated at the year-end exchange rates.

I. Leases:

Lease rental payments under operating leases are recognized as an expense on a straight line basis in the Statement of Profit and Loss over the lease term.

J. Taxes on income:

i Current tax:

Provision for current tax is computed after considering tax allowances and exemptions.

ii Minimum Alternate tax :

Minimum alternate tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income -tax liability, is recognized as an asset in the Balance Sheet if there is evidence that the Company will pay normal tax in the future and when the resultant asset can be measured reliably.

iii Deferred tax:

Provision for deferred taxation is made using the applicable rate of taxation, for all timing differences which arise during the year and are reversed in subsequent periods.

K. Provisions and contingent liabilities

Based on the best estimate of the Management, provisions are determined on the outflow of economic benefits which are required to settle the obligation as at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation that may, but probably will not; require an outflow of the Company''s resources.

L. Cash flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. Cash flows from operating, investing and financing activities of the Company are segregated, accordingly.

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Mar 31, 2012

A. Revenue recognition:

i) Sales are recognized when goods are supplied and are recorded net of discounts. Sale revenues are presented net of value-added taxes in its Statement of profit and loss.

ii) Income from Conversion job is recognized on its completion and on its acceptance by the customers.

Ni) Dividend income is accounted for in the year in which the right to receive the same is established.

iv) Interest income is recognized using the time-proportion method, based on rates implicit in the transaction.

B. Fixed assets:

Tangible assets shown under gross block are valued at cost of acquisition inclusive of inward freight, duties, taxes & other incidental expenses related to its acquisition. All such direct costs are capitalized until the tangible fixed assets are ready for use. Intangible assets relating to product development are recorded at actual cost incurred on development of products and are capitalized once the products receive approval from the relevant authorities and the same are carried at cost less accumulated depreciation.

C. Depreciation and amortization:

i) Depreciation on tangible assets has been calculated in accordance with the revised Schedule XIV of the Companies Act, 1956 as under:.

a) At the Cosmetics unit, tangible assets (except vehicles) being depreciated on straight line method. In respect of vehicles, the written down value method has been adopted.

b) At the Trading division, tangible assets being depreciated on written down value method.

ii) Depreciation on additions to fixed assets during the current year is charged on prorata basis, for the period of use.

iii) Intangible assets are amortized over their estimated useful lives.

D. Impairment of assets:

Impairment loss is charged to the Statement of Profit & Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

E Investments:

Investments are valued at cost.

F. Inventories are valued as under:

i) Trading goods - at cost or net realizable value, whichever is lower;

ii) Raw materials & packing materials - At cost or net realizable value, whichever is lower

iii) Process stock - At cost or estimated realizable value, whichever is lower and

iv) Finished goods - At cost or net. realizable value, whichever is lower and are inclusive of Cenvat thereon. Cost is determined on a weighted average basis.

G. Employee benefits:

i) Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial basis and the amount is charged to the Statement of Profit & Loss.

ii) Superannuation: The Company contributes towards its Employees' Superannuation Fund, for future payment of retirement benefits to employees. The contributions accruing during each year are charged to the Statement of Profit and Loss.

iii) Leave encashment liabilities are determined by actuarial valuation done at the end of the year and the charge for the current year is debited to the Statement of Profit and Loss.

iv) Employer's contribution to Provident fund is charged to the Statement of Profit and Loss.

H Foreign currency transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of transaction. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

Liabilities payable in foreign currency are restated at the year-end exchange rates.

I. Leases:

Lease rental payments under operating leases are recognized as an expense on a straight line basis in the Statement of Profit and loss over the lease term.

J. Taxes on income:

i) Current taxation:

Provision for current tax is computed after considering tax allowances and exemptions.

ii) Minimum alternate tax:

Minimum alternate tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the balance sheet if there is evidence that the Company will pay normal tax in the future and when the resultant asset can be measured reliably.

iii) Deferred tax:

Provision for deferred taxation is made using the applicable rate of taxation, for all timing differences which arise during the year and are reversed in subsequent periods.

K. Provisions and contingent liabilities:

Based on the best estimate of the Management, provisions are determined of the outflow of economic benefits which are required to settle the obligation as at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation that may, but probably will not, require an outflow of the Company's resources.

L. Cash flow statement:

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. Cash flows from operating, investing and financing activities of the Company are segregated, accordingly.

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Mar 31, 2011

These accounts are prepared under the historical cost basis of accounting and evaluated on a going concern basis, with revenues recognised and expenses accounted for on their accrual to comply in all material aspects with the applicable accounting principles, the applicable Accounting Standards notifies u/s. 211 (3C) of the Companies Act, 1956 and other relevant provisions of the Companies Act, 1956.

(A) The following significant accounting policies adopted in the preparation and presentation of these financial statements are:

i) Sales are recognized when goods are supplied and recorded net of discounts, vat and sales tax thereon.

ii) Income from Conversion job is recognized on its completion and on acceptance by the customers.

iii) Dividend income is accounted for in the year in which the right to receive the same is established.

iv) Fixed assets shown under gross block are valued at cost of acquisition inclusive of inward freight, duties & taxes & incidental expenses related to acquisition & also include cost of installation, wherever incurred.

v) Depreciation on fixed assets has been calculated by adopting the revised rates of depreciation specified in Schedule XIV of the Companies Act, 1956 as under:

Depreciation on fixed assets has been calculated in accordance with the Schedule XIV of the Companies Act, 1956. Fixed assets at the Companys Cosmetics unit has been depreciated on the straight line method as contemplated in Section 205(2)(a) of the said Act, except on vehicles, on which the written down value method has been adopted. In respect of other assets of the Trading division, the written down value method has been adopted at rates specified therein. Depreciation on additions to fixed assets during the current year is charged on prorata basis, for the period of use. The Company incurred expenditure towards product development. The same has been capitalized during the year and shown under miscellaneous expenditure as product development charges. The same will be written off in three installments.

vi) Investments are valued at cost, inclusive of dividend reinvested thereon.

vii) Inventories are value as under:

a. Trading goods - at cost or net realisable value, whichever is lower;

b. Raw materials & packing materials - At weighted average cost or net realisable value;

c. Process stock - At cost or estimated realisable value, whichever is lower and

d. Finished goods - At cost or net realisable value, whichever is lower and is inclusive of excise duty thereon.

viii) Employee benefits:

a. Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial basis and the charge for the current year is debited to the Profit and Loss Account.

b. Superannuation: The Company contributes towards its Employees Superannuation Fund, for future payment of retirement benefits to its employees. The contributions accruing during each year are charged to the Profit and Loss Account.

c. Leave encashment liabilities are determined by actuarial valuation done at the end of the year and the charge for the current year is debited to the Profit and Loss Account.

d. Employers contribution to Provident fund is charged to the Profit and Loss Account.

ix) Foreign exchange transactions:

All receipts in foreign currencies are recorded at banks buying rates that prevailed on the dates on which the relevant transactions took place. Liabilities payable in foreign currency are restated at the year end exchange rates.

x) Taxes on income:

a. Current taxation:

Provision for current tax is made based on the tax liability computed after considering tax allowances and exemptions.

b. Deferred tax:

Provision for deferred taxation is made using the applicable rate of taxation, for all timing differences which arise during the year and are reversed in subsequent periods.

xi) All contractual liabilities connected with the business operations of the Company are appropriately provided for. xii) Product development expenses to be amortised over a period of three years.

(B) Events happening after the Balance Sheet date:

93,239 warrants have been converted into Equity Shares of the Company pursuant to the Board resolution dated April 29, 2011 and consequent to the same the paid up Equity Share Capital and Share Premium Account have increased to Rs. 2,61,41,780/- and Rs. 1,33,35,662, reduction in share warrants respectively.

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Mar 31, 2010

These accounts are prepared under the historical cost basis of accounting and evaluated on a going concern basis, with revenues recognised and expenses accounted for on their accrual to comply in all material aspects with the applicable accounting principles, the applicable Accounting Standards notifies u/s. 211 (3C) of the Companies Act, 1956 and other relevant provisions of the Companies Act, 1956

This financial statements have been prepared in conformity with generally accepted accounting principles with the same accounting policies adopted as in the previous year.

(A) The following significant accounting policies adopted in the preparation and presentation of these financial statements are:

i) Sales are recognized when goods are supplied and recorded net of discounts, vat and sales tax thereon.

ii) Income from Conversion job is recognized on its completion and on acceptance by the customers.

iii) Dividend income is accounted for in the year in which the right to receive the same is established.

iv) Fixed assets shown under gross block are valued at cost of acquisition inclusive of inward freight, duties & taxes & incidental expenses related to acquisition & also include cost of installation, wherever incurred.

v) Depreciation on fixed assets has been calculated by adopting the revised rates of depreciation specified in Schedule XIV of the Companies Act, 1956 as under:

Depreciation on fixed assets has been calculated in accordance with the Schedule XIV of the Companies Act, 1956. Fixed assets at the Companys Cosmetics unit has been depreciated on the straight line method as contemplated in Section 205(2)(a) of the said Act, except on vehicles, on which the written down value method has been adopted. In respect of other assets of the Trading division, the written down value method has been adopted at rates specified therein. Depreciation on additions to fixed assets during the current year is charged on prorata basis, for the period of use.

vi) Investments are valued at cost, inclusive of dividend reinvested thereon.

vii) Inventories are value as under:

a. Trading goods - at cost or net realisable value, whichever is lower;

b. Raw materials & packing materials - At weighted average cost or net realisable value;

c. Process stock - At cost or estimated realisable value, whichever is lower and

d. Finished goods - At cost or net realisable value, whichever is lower and is inclusive of excise duty thereon. viii) Employee benefits:

a. Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial basis and the charge for the current year is debited to the Profit and Loss Account.

b. Superannuation: The Company contributes towards its Employees Superannuation Fund, for future payment of retirement benefits to its employees. The contributions accruing during each year are charged to the Profit and Loss Account.

c. Leave encashment liabilities are determined by actuarial valuation done at the end of the year and the charge for the current year is debited to the Profit and Loss Account.

d. Employers contribution to Provident fund is charged to the Profit and Loss Account.

ix) Foreign exchange transactions:

All receipts in foreign currencies are recorded at banks buying rates that prevailed on the dates on which the relevant transactions took place. Liabilities payable in foreign currency are restated at the year end exchange rates.

x) Taxes on income:

a. Current taxation:

Provision for current tax is made based on the tax liability computed after considering tax allowances and exemptions.

b. Deferred tax:

Provision for deferred taxation is made using the applicable rate of taxation, for all timing differences which arise during the year and are reversed in subsequent periods.

xi) All contractual liabilities connected with the business operations of the Company are appropriately provided for. 2. Quantitative information as required under paragraphs 3 and 4 of Part II of the Companies Act, 1956