Accounting Policies of Lake Shore Realty Ltd. Company

Mar 31, 2025

1. Corporate information

Mahaan Foods Limited (MFL) is an ISO 9001/2000 & HACCUP certified company, domiciled and headquartered in Delhi. It was incorporated in 1987. The Company is primarily engaged in manufacturing of dairy products and pharma nutritional products.

2. Significant Accounting Policies

This notes provides a list of significant accounting policies adopted in preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.

a. Basis of preparation:

(i) Historical Cost Convention:-

The financial statements have been prepared on the historical cost convention on going concern basis except for following assets and liabilities which have been measured at fair value amount.

(ii) Statement of Compliance:-

The financial statements of the Company have been prepared to comply with the Indian Accounting standards (''Ind AS''), including the rules notified under the relevant provisions of the Companies Act, 2013 and other provisions of the Act.

(iii) Functional and presentation currency:-

Company''s financial statements are presented in Indian Rupees, which is also its functional currency. Further, all the values in the financial statements are rounded off to the nearest hundreds unless otherwise stated.

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

b. Current versus non- current classification :

c. Property, Plant and Equipment:

(i) Recognition & Measurement:-

Property, Plant and Equipment (PPE) are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price (net of Input Credit), borrowing costs if capitalization criteria are met and directly attributable

cost of bringing the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Depreciation/Amortization

Depreciation is provided on Straight Line Method as per rates computed based on useful life prescribed in schedule II of the Companies Act, 2013. Depreciation on appreciation upon Property, Plant and Equipment (PPE) is directly charged to Revaluation Reserve. No Amortization is being provided on leasehold land.

Impairment

Property, Plant and Equipment (PPE) are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss is recognized in the Statement of Profit and Loss if the carrying amount of an asset exceeds its recoverable amount.

Use of estimates

The preparation of financial statements is in conformity with (INDAS) requires the management to make judgments, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities and disclosure of contingent liabilities at the end of the reporting period. Although these estimate are based on the management''s best knowledge of current event and action.

(1) Leases

(i) Lease liability is initially recognized and measured at an amount equal to the present value of minimum lease payments during the lease term that are not yet paid.

(ii) Right of use asset is recognized and measured at cost, consisting of initial measurement of lease liability plus any lease payments made to the lessor at or before the commencement date less any lease incentives received, initial estimate of the restoration costs and any initial direct costs incurred by the lessee.

(iii) The lease liability is measured in subsequent periods using the effective interest rate method. The right-of-use asset is depreciated in accordance with the requirements in Ind AS 16, Property, Plant and equipment.

(iv) Recognition and measurement exemption are available for low-value assets and short term leases. Assets of low value include IT equipment or office furniture. No monetary threshold has been defined for low-value assets. Short-term leases are defined as leases with a lease term of 12 months or less.

(2) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as NonCurrent investments. Current and Non-Current investments are carried at fair value determined on an individual investment basis. Where Current investment are recognized at fair value its difference with cost is routed through profit and Loss a/c and Where NonCurrent investment are recognized at fair value its difference with cost is routed through Other Comprehensive Income/ (Loss).

(3) Retirement and other benefits

(i) Retirement benefits in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the statement of profit and loss for the year when the contributions to respective funds are due.

(ii)

(iii) Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit (PUC) method made at the end of each financial year.

(4) Contingent liability

Contingent liability is not provided for in the accounts and is recognized by way of notes.

i. Tax demands
Sr. no.	As at 31-03-2025	As at 31-032024
Under GST	Nil	Nil
Under Sales tax	44,68,428	44,68,428
Under central excise ----------	Nil	Nil
Entry tax	5,31,614	5,31,614
Punjab vat	2,91,000	2,91,000
Orissa vat	1,37,000	1,37,000
Under service tax	Nil	Nil
. Claims against company not acknowledged as debts	Nil	Nil

2. Other accounting policies

i. Borrowing costs

Borrowing cost directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

ii. Inventories

Finished and semi-finished products produced and purchased by the Company are carried at lower of cost and net realizable value. Raw materials purchased are carried at cost. Store and spare parts are carried at cost. Cost has been determined by using the FIFO method.

iii. Revenue Recognition

(i) Sale of goods: Revenue from sale of goods is recognized net of rebates and discounts on transfer of significant risks and rewards of ownership to the buyer.

(ii) Income from Services: Revenue from services is accounted for in accordance with the terms of contracts, as and when these services are rendered.

(iii) Interest: Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

(iv) Dividend: Dividend Income is recognized when right to receive is established.

iv. Balance confirmation

Balances of debtors creditors and loans and advances are subject to confirmation from respective parties.

v. Tax Expenses

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which case, the tax is also recognized in other comprehensive income or equity.

vi. Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.

vii. Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively

enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of each reporting period.

viii. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

ix. Financial Instruments i) Financial Assets

A. Initial recognition and measurement

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

B. Subsequent measurement

a) Financial assets carried at amortised cost (AC)

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

c) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL.

C. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in Other Comprehensive Income''.

D. Impairment of financial assets

In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument)

For trade receivables Company applies ''simplified approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

Financial liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

a) Exemptions from retrospective application

(i) Business combination exemption

The Company has applied the exemption as provided in Ind AS 101 on non-application of Ind AS 103, "Business Combinations" to business combinations consummated prior to April 1, 2015 (the "Transition Date"), pursuant to which Goodwill / capital reserve arising from a business combination has been stated at the carrying amount prior to the date of transition under Indian GAAP. The Company has also applied the exemption for past business combinations to acquisitions of investments in subsidiaries / associates / joint ventures consummated prior to the Transition Date.

(ii) Share-based payment transactions

Ind AS 101 encourages, but does not require, first time adopters to apply Ind AS 102 Share based Payment to equity instruments that were vested before the date of transition to Ind AS. The Company has elected not to apply Ind AS 102 to options that vested prior to April 1, 2015.

(iii) Fair value as deemed cost exemption

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

(iv) Decommissioning liabilities

The Company has elected to apply the transitional provision with respect to recognition of

Decommissioning, Restoration and Similar Liabilities.

x. The Company has not traded or invested in crypto currency or virtual currency.

xi. Indusind Bank & State Bank of Patiala Both bank accounts need to be written off as Indusind bank amount has been transferred to RBI and SBOP Bombay- There are no such documents and balance stands from 1/4/2008 onwards.

xi. Related Party Disclosure

Associates: Ace International LLP, Alpha Overseas, Mahaan Milk Foods Ltd, Ever Bright Estates Pvt Ltd

Key Management Personnel: Mr. Sanjeev Goyal, Managing Director and Mrs. Saloni Goyal, Director

Key Management Personnel''s relatives: Mr. Amar Nath Goyal (Father of Mr. Sanjeev Goyal), Sanya Goyal (Daughter of Mr. Sanjeev Goyal), Aditya Goyal (Son of Sanjeev Goyal)

xiii. Explanation for the fluctuation in the Ratio''s

Comments: there is no fluctuation more than reasonable limit ( 5% )

Comments: Healthy on account of sharp rise in share price.

xiv. The company depreciates Property, Plant and

Equipment over their estimated useful life using Straight Line Method.

The estimated useful life of assets as estimated by management are as follows:

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Mar 31, 2024

1. Significant Accounting Policies

This note provides a list of significant accounting policies adopted in preparation of these financial statements.
These policies have been consistently applied to all the years presented, unless otherwise stated.

a. Basis of preparation:

(i) Historical Cost Convention:-

The financial statements have been prepared on the historical cost convention on going concern basis except for
following assets and liabilities which have been measured at fair value amount.

(ii) Statement of Compliance:-

The financial statements of the Company have been prepared to comply with the Indian Accounting standards
(‘Ind AS’) prescribed under the Section 133 and other applicable provisions of the Companies Act, 2013
(“Act”) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time
to time) and presentation requirements of Divisions II of Schedule III of the Act (Ind AS Compliant Schedule
III), as applicable to the financial statement.

(iii) Functional and presentation currency:-

Company’s financial statements are presented in Indian Rupees, which is also its functional currency. Further,
all the values in the financial statements are rounded off to the nearest hundreds unless otherwise stated.

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

b. Current versus non- current classification :

All Assets and Liabilities have been classified as current or non-current as per the Company’s normal operating
cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of product
& activities of the Company and their realization in cash and cash equivalent, the Company has determined its
operating cycle as twelve months for the purpose of current and non-current classification of assets and
liabilities. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

c. Property, Plant and Equipment:

(i) Recognition & Measurement-

Property, Plant and Equipment (PPE) are stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. The cost comprises purchase price (net of Input Credit), borrowing costs if
capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for its
intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

(ii) Depreciation/Amortization

Depreciation is provided on Straight Line Method as per rates computed based on useful life prescribed in
schedule II of the Companies Act, 2013. Depreciation on appreciation upon Property, Plant and Equipment
(PPE) is directly charged to Revaluation Reserve. No Amortization is being provided on leasehold land.

(iii) Impairment

Property, Plant and Equipment (PPE) are reviewed for impairment whenever events or changes in
circumstances indicate that their carrying amount may not be recoverable. An impairment loss is recognized in
the Statement of Profit and Loss if the carrying amount of an asset exceeds its recoverable amount.

(iv) Use of estimates

The preparation of financial statements is in conformity with (INDAS) requires the management to make
judgments, estimates and assumptions that affect the reported amount of revenues, expenses, assets and
liabilities and disclosure of contingent liabilities at the end of the reporting period. Although these estimate are
based on the management’s best knowledge of current event and action.

(v) Subsequent Expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the
expenditure will flow to the Company.

d. Leases

(i) Lease liability is initially recognized and measured at an amount equal to the present value of minimum
lease payments during the lease term that are not yet paid.

(ii) Right of use asset is recognized and measured at cost, consisting of initial measurement of lease liability
plus any lease payments made to the lessor at or before the commencement date less any lease incentives
received, initial estimate of the restoration costs and any initial direct costs incurred by the lessee.

(iii) The lease liability is measured in subsequent periods using the effective interest rate method. The right-of-
use asset is depreciated in accordance with the requirements in Ind AS 16, Property, Plant and equipment.

(iv) Recognition and measurement exemption are available for low-value assets and short-term leases. Assets
of low value include IT equipment or office furniture. No monetary threshold has been defined for low-value
assets. Short-term leases are defined as leases with a lease term of 12 months or less.

e. Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current
investments. All other investments are classified as Non-Current investments. Current and Non-Current
investments are carried at fair value determined on an individual investment basis. Where Current investment
are recognized at fair value its difference with cost is routed through profit and Loss a/c and Where Non¬
Current investment are recognized at fair value its difference with cost is routed through Other Comprehensive
Income/ (Loss).

f. Retirement and other benefits

(i) Retirement benefits in the form of Provident Fund is a defined contribution scheme and the contributions
are charged to the statement of profit and loss for the year when the contributions to respective funds are due.

(ii) Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on
projected unit credit (PUC) method made at the end of each financial year.

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Mar 31, 2015

A) The financial statements are prepared under the historical cost convention and have been prepared in accordance with applicable mandatory Accounting Standards and relevant presentational requirements of the Companies Act, 2013.

b) The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principle in India.

Accounting policies are consistently applied and consistent with those used in previous year.

c) The preparation of financial statement in conformity with generally accepted accounting principle requires management to make estimates and assumption that affect the reported amount of assets and liabilities and disclosure of contingent liabilities and commitments at the end of the reporting period and results of operations during the reporting period. Although these estimates are based upon the management's best knowledge of current events and actions, actual results could differ from those estimates. Difference between the actual result and estimates are recognized in the period which the results are known/ materialized.

d) Fixed Assets are stated at cost less depreciation. The cost of fixed assets includes interest on specific borrowings obtained for the purpose or acquiring fixed assets up to the date of commissioning of the assets and other incidental expenses incurred up to that date.

e) Plant and machinery includes expenses incurred on erection and commissioning, foundation, laboratory equipment, air and water pollution devices, electric installations, technical know-how fees, tools, and miscellaneous fixed assets other than land, building, furniture & fixture, vehicles, office equipments, computer equipments and air conditioning equipments. Technical know-how fee is inseparable and hence treated as part of plant & machinery. No adjustment is required to be made as per accounting standard 26 on intangible assets, issued by the Institute of Chartered Accountants of India.

f) Expenditure related to and incurred during implementation of new /expansion-cum- modernization projects is included under capital work in progress and the same is allocated to the respective tangible assets on completion of its construction/erection.

g) Long term investments are valued at cost. Where investments are reclassified from current to long term, transfers are made at the lower of cost and fair value at the date of transfer.

h) Inventories of raw materials, stock-in-process, semi finished products, stores, packing materials, spares and loose tools, finished products are valued at lower of cost or net realizable value. In determining the cost, first in first out method is used .

i) Prior year expenses / income, if any are adjusted in the respective head of expenses/ income. This has no effect on the working result of the Company.

j) Till the year ended March 31,2014, Schedule XIV to the Companies Act, 1956, prescribed requirement concerning depreciation of Fixed Assets. From the current year. depreciation has been provided on the straight-line method at rates and in the manner prescribed in Schedule II of the Companies Act, 2013 Unless stated otherwise, the impact mentioned for the current year is likely to hold good for future years also..Depriciation on addition to assets or sales / transfer/ discardment of assets is calculated on pro rata basis from the date of such addition or upto the date of such discardment/transfer/sale as the case may be.

k) Provision for employee benefits charged on accrual basis is determined based on Accounting standard (AS) 15 (Revised) "Employees Benefits" issued by the Institute of Chartered Accountants of India as under:

I) Contribution to provident fund scheme is charged to revenue.

II) Liability for gratuity and privilege leave is determined on actuarial basis..

l) The Government grants are recognized only on the assurance that the same will be received. The Government grants in respect of capital investment have been shown as capital reserve.

m) Contingent liabilities are not provided for and are disclosed by way of notes. This has no effect on the working result of the Company.

n) Taxes are accounted for in accordance with Accounting Standard -22 on Accounting for Taxes on Income. Income Tax Comprise of both current and deferred Tax.

Current Tax is measured at the amount expected to be paid to / recovered from the revenue authorities, using applicable tax rates and laws.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as Deferred Tax Asset or Deferred Tax Liability. Deferred Tax Assets and Liabilities are recognized for future tax consequences attributable to timing differences. They are measured using substantively enacted tax rates and tax regulations.

o) Foreign currency transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

p) Borrowing costs are directly attributable to the acquisition, construction or production of qualifying assets is capitalized till the month in which the assets is ready to use as part of the cost of that asset. Other interest and borrowing costs are charged to revenue.

q) In case of the new industrial unit, all the operating expenditure (including borrowing costs) specifically for the project, incurred upto the date of installation, is capitalized and added pro-rata to the cost of fixed assets.

r) Revenue from sale of goods is recognized on transfer of significant risks and rewards of ownership to the buyer. Gross revenue from operations comprises of sale of products and others operating incomes. However Consignment sale is shown at net of expenses and are recognized when goods are sold to a third party.

s) Excise duty is not applicable on the finished goods manufactured by the company.

t) The earning considered in ascertaining the company's Earning per share (E.P.S.) comprise of the net profit after tax attributable to equity shareholders.

u) In the opinion of the company's Management, there is no impairment to the assets to which Accounting Standard 28 "Impairment of Assets" applied requiring any revenue recognition.

v) The cash flow statement has been prepared under the "Indirect Method" as set out in Accounting Standard-3 "Cash Flow Statement".

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Mar 31, 2014

A) The financial statements are prepared under the historical cost convention and have been prepared in accordance with applicable mandatory Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

b) The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principle in India. Accounting policies are consistently applied and consistent with those used in previous year.

c) The preparation of financial statement in conformity with generally accepted accounting principle requires management to make estimates and assumption that affect the reported amount of assets and liabilities and disclosure of contingent liabilities and commitments at the end of the reporting period and results of operations during the reporting period. Although these estimates are based upon the management''s best knowledge of current events and actions, actual results could differ from those estimates. Difference between the actual result and estimates are recognized in the period which the results are known/ materialized.

d) Fixed Assets are stated at cost less depreciation. The cost of fixed assets includes interest on specific borrowings obtained for the purpose or acquiring fixed assets up to the date of commissioning of the assets and other incidental expenses incurred up to that date.

e) Plant and machinery includes expenses incurred on erection and commissioning, foundation, laboratory equipment, air and water pollution devices, electric installations, technical know-how fees, tools, and miscellaneous fixed assets other than land, building, furniture & fixture, vehicles, office equipments, computer equipments and air conditioning equipments. Technical know-how fee is inseparable and hence treated as part of plant & machinery. No adjustment is required to be made as per accounting standard 26 on intangible assets, issued by the Institute of Chartered Accountants of India.

f) Expenditure related to and incurred during implementation of new /expansion-cum- modernization projects is included under capital work in progress and the same is allocated to the respective tangible assets on completion of its construction/erection.

g) Long term investments are valued at cost. Where investments are reclassified from current to long term, transfers are made at the lower of cost and fair value at the date of transfer.

h) Inventories of raw materials, stock-in-process, semi finished products, stores, packing materials, spares and loose tools, finished products are valued at lower of cost or net realizable value. In determining the cost, first in first out method is used .

I) Prior year expenses / income, if any are adjusted in the respective head of expenses/ income. This has no effect on the working result of the Company.

j) Depreciation has been provided on the straight-line method at rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.Depriciation on addition to assets or sales / transfer/ discardment of assets is calculated on pro rata basis from the date of such addition or upto the date of such discardment/transfer/sale as the case may be.

k) Provision for employee benefits charged on accrual basis is determined based on Accounting standard (AS) 15 (Revised)"Employees Benefits" issued by the Institute of Chartered Accountants of India as under:

I) Contribution to provident fund scheme is charged to revenue.

II) Liability for gratuity and privilege leave is determined on actuarial basis..

l) The Government grants are recognized only on the assurance that the same will be received. The Government grants in respect of capital investment have been shown as capital reserve.

m) Contingent liabilities are not provided for and are disclosed by way of notes. This has no effect on the working result of the Company.

n) Taxes are accounted for in accordance with Accounting Standard -22 on Accounting for Taxes on Income. Income Tax Comprise of both current and deferred Tax.

Current Tax is measured at the amount expected to be paid to / recovered from the revenue authorities, using applicable tax rates and laws.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as Deferred Tax Asset or Deferred Tax Liability. Deferred Tax Assets and Liabilities are recognized for future tax consequences attributable to timing differences. They are measured using substantively enacted tax rates and tax regulations.

o) Foreign currency transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

p) Borrowing costs are directly attributable to the acquisition, construction or production of qualifying assets is capitalized till the month in which the assets is ready to use as part of the cost of that asset. Other interest and borrowing costs are charged to revenue.

q) In case of the new industrial unit, all the operating expenditure (including borrowing costs) specifically for the project, incurred upto the date of installation, is capitalized and added pro-rata to the cost of fixed assets.

r) Revenue from sale of goods is recognized on transfer of significant risks and rewards of ownership to the buyer. Gross revenue from operations comprises of sale of products and others operating incomes. However Consignment sale is shown at net of expenses and are recognized when goods are sold to a third party.

s) Excise duty is not applicable on the finished goods manufactured by the company.

t) The earning considered in ascertaining the company''s Earning per share (E.P.S.) comprise of the net profit after tax attributable to equity shareholders.

u) In the opinion of the company''s Management, there is no impairment to the assets to which Accounting Standard 28"Impairment of Assets" applied requiring any revenue recognition.

v) The above cash flow statement has been prepared under the "Indirect Method" as set out in Accounting Standard-3"Cash Flow Statement".

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Mar 31, 2012

A) The financial statements are prepared under the historical cost convention and have been prepared in accordance with applicable mandatory Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

b) Fixed Assets are stated at cost less depreciation. The cost of fixed assets includes interest on specific borrowings obtained for the purpose or acquiring fixed assets up to the date of commissioning of the assets and other incidental expenses incurred up to that date.

c) Plant and machinery includes expenses incurred on erection and commissioning, foundation, laboratory equipment, air and water pollution devices, electric installations, technical know-how fees, tools, and miscellaneous fixed assets other than land, building, furniture & fixture, vehicles, office equipments, computer equipments and air conditioning equipments. Technical know-how fee is inseparable and hence treated as part of plant & machinery. No adjustment is required to be made as per accounting standard 26 on intangible assets, issued by the Institute of Chartered Accountants of India.

d) Long term investments are valued at cost. Where investments are reclassified from current to long term, transfers are made at the lower of cost and fair value at the date of transfer.

e) Inventories of raw materials, stock-in-process, semi finished products, stores, packing materials, spares and loose tools, finished products are valued at lower of cost or net realizable value. In determining the cost, first in first out method is used .

f) Prior year expenses / income, if any are adjusted in the respective head of expenses/ income. This has no effect on the working result of the Company.

g) Depreciation has been provided on the straight-line method at rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.Depriciation on addition to assets or sales / discardment of assets is calculated on pro rata basis from the date of such addition or upto the date of such discardment as the case may be.

h) Provision for employee benefits charged on accrual basis is determined based on Accounting standard (AS) 15 (Revised) "Employees Benefits" issued by the Institute of Chartered Accountants of India as under:

I) Contribution to provident fund scheme is charged to revenue.

II) Liability for gratuity and privilege leave is determined on actuarial basis..

i) The Government grants are recognized only on the assurance that the same will be received. The Government grants in respect of capital investment have been shown as capital reserve.

j) Contingent liabilities are not provided for and are disclosed by way of notes. This has no effect on the working result of the Company.

k) Taxes are accounted for in accordance with Accounting Standard -22 on Accounting for Taxes on Income. Income Tax comprises of both current and deferred Tax.

Current Tax is measured at the amount expected to be paid to / recovered from the revenue authorities, using applicable tax rates and laws.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as Deferred Tax Asset or Deferred Tax Liability. Deferred Tax Assets and Liabilities are recognized for future tax consequences attributable to timing differences. They are measured using substantively enacted tax rates and tax exchange rate prevailing at the time of the transaction.

m) Borrowing costs are directly attributable to the acquisition, construction or production of qualifying assets is capitalized till the month in which the assets is ready to use as part of the cost of that asset. Other interest and borrowing costs are charged to revenue.

n) In case of the new industrial unit, all the operating expenditure (including borrowing costs) specifically for the project, incurred upto the date of installation, is capitalized and added pro-rata to the cost of fixed assets.

o) Consignment sale is shown at net of expenses and are recognized when goods are sold to a third party.

p) In the opinion of the companys Management, there is no impairment to the assets to which Accounting Standard 28 "Impairment of Assets" applied requiring any revenue recognition.

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Mar 31, 2011

A) The financial statements are prepared under the historical cost convention and have been prepared in accordance with applicable mandatory Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

b) Fixed Assets are stated at cost less depreciation. The cost of fixed assets includes interest on specific borrowings obtained for the purpose or acquiring fixed assets up to the date of commissioning of the assets and other incidental expenses incurred up to that date.

c) Plant and machinery includes expenses incurred on erection and commissioning, foundation, laboratory equipment, air and water pollution devices, electric installations, technical know-how fees, tools, and miscellaneous fixed assets other than land, building, furniture & fixture, vehicles, office equipments, computer equipments and air conditioning equipments. Technical know-how fee is inseparable and hence treated as part of plant & machinery. No adjustment is required to be made as per accounting standard 26 on intangible assets, issued by the Institute of Chartered Accountants of India.

d) Long term investments are valued at cost. Where investments are reclassified from current to long term, transfers are made at the lower of cost and fair value at the date of transfer.

e) Inventories of raw materials, stock-in-process, semi finished products, stores, packing materials, spares and loose tools, finished products are valued at lower of cost or net realizable value. In determining the cost, first in first out method is used .

f) Prior year expenses / income, if any are adjusted in the respective head of expenses/ income. This has no effect on the working result of the Company.

g) Depreciation has been provided on the straight-line method at rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.Deprivation on addition to assets or sales / discardment of assets is calculated on pro rata basis from the date of such addition or upto the date of such discernment as the case may be.

h) Provision for employee benefits charged on accrual basis is determined based on Accounting standard (AS) 15 (Revised) "Employees Benefits" issued by the Institute of Chartered Accountants of India as under:

I) Contribution to provident fund scheme is charged to revenue.

II) Liability for gratuity and privilege leave is determined on actuarial basis..

i) The Government grants are recognized only on the assurance that the same will be received. The Government grants in respect of capital investment have been shown as capital reserve.

j) Contingent liabilities are not provided for and are disclosed by way of notes. This has no effect on the working result of the Company.

k) Income Tax are accounted for in accordance with Accounting Standard -22 on Accounting for Taxes on Income. Income Tax Comprise of both current and deferred Tax.

Current Tax is measured at the amount expected to be paid to / recovered from the revenue authorities, using applicable tax rates and laws.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as Deferred Tax Asset or Deferred Tax Liability. Deferred Tax Assets and Liabilities are recognized for future tax consequences attributable to timing differences. They are measured using substantively enacted tax rates and tax regulations.

l) Foreign currency transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

m) Borrowing costs are directly attributable to the acquisition, construction or production of qualifying assets is capitalized till the month in which the assets is ready to use as part of the cost of that asset. Other interest and borrowing costs are charged to revenue.

n) In case of the new industrial unit, all the operating expenditure (including borrowing costs) specifically for the project, incurred upto the date of installation, is capitalized and added pro-rata to the cost of fixed assets.

o) Consignment sale is shown at net of expenses and are recognized when goods are sold to a third party.

p) In the opinion of the company's Management, there is no impairment to the assets to which Accounting Standard 28 Impairment of Assets" applied requiring any revenue recognisition.

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Mar 31, 2010

A) The financial statements are prepared under the historical cost convention and have been prepared in accordance with applicable mandatory Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

b) Fixed Assets are stated at cost less depreciation. The cost of fixed assets includes interest on specific borrowings obtained for the purpose or acquiring fixed assets up to the date of commissioning of the assets and other incidental expenses incurred up to that date.

c) Plant and machinery includes expenses incurred on erection and commissioning, foundation, laboratory equipment, air and water pollution devices, electric installations, technical know-how fees, tools, and miscellaneous fixed assets other than land, building, furniture & fixture, vehicles, office equipments, computer equipments and air conditioning equipments. Technical know-how fee is inseparable and hence treated as part of plant & machinery. No adjustment is required to be made as per accounting standard 26 on intangible assets, issued by the Institute of Chartered Accountant of India.

d) Long term investments are valued at cost. Where investments are reclassified from current to long term, transfers are made at the lower of cost and fair value at the date of transfer.

e) Inventories of raw materials, stock-in-process, semi finished products, stores, packing materials, spares and loose tools, finished products are valued at lower of cost or net realizable value. In determining the cost, first in first out cost method is used.

f) Prior year expenses / income, if any are adjusted in the respective head of expenses/ income. This has no effect on the working result of the Company.

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

h) Provision for employee benefits charged on accrual basis is determined based on Accounting standard (AS) 15 (Revised) "Employees Benefits" issued by the Institute of Chartered Accountants of India as under:

I) Contribution to provident fund scheme is charged to revenue.

II) Liability for gratuity and privilege leave is determined on actuarial basis..

i) The Government grants are recognized only on the assurance that the same will be received. The Government grants in respect of capital investment have been shown as capital reserve.

j) Contingent liabilities are not provided for and are disclosed by way of notes. This has no effect on the working result of the Company.

k) Current Income tax liability is provided for in accordance with the provisions of the Income tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

l) Foreign currency transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

m) Borrowing costs are directly attributable to the acquisition, construction or production of qualifying assets is capitalized till the month in which the assets is ready to use as part of the cost of that asset. Other interest and borrowing costs are charged to revenue.

n) In case of the new industrial unit, all the operating expenditure (including borrowing costs) specifically for the project, incurred upto the date of installation, is capitalized and added pro-rata to the cost of fixed assets.

o) Consignment sale is shown at net of expenses and are recognized when goods are sold to a third party. This has no effect on the working result of the Company.