Accounting Policies of MPS Pharma Ltd. Company

Mar 31, 2024

II SIGNIFICANT ACCOUNTING POLICIES

a. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the company have been prepared in accordance with the Indian Accounting Standards (Ind AS)
notified under the Companies (Indian Accounting Standards) Rules 2015 as amended from time to time by the Ministry of
Corporate Affairs (MCA), the provisions of Companies Act, 2013, and guidelines issued by the Securities and Exchange Board of
India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Financial statements of the company are prepared under the historical cost convention except for the certain financial assets
and liabilities measured at fair value as mentioned in applicable accounting policies.

b. USE OF ESTIMATES AND JUDGEMENTS

The preparation of the financial statements is in conformity with Ind AS requires management to make estimates, judgments
and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported
amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period.
Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware
of changes in circumstances surrounding the estimates.

The estimates and underlying assumptions are reviewed on going concern basis.

Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that
period, in the period of the revision and future periods if the revision affects both current and future

c. CLASSIFICATION OF EXPENDITURE/INCOME

Except Otherwise Indicated:-

(i) All expenditure and income are accounted for under the natural heads of account.

(ii) All expenditure and income are accounted for on accrual basis except when ultimate realisation of income is uncertain.

d. CURRENT VERSUS NON-CURRENT CLASSIFICATION

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

An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period, or

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

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
The Company classifies all other liabilities as non-current.

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

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

e. REVENUES

(i) Revenues from sales of goods are recognized when the significant risk and rewards of the ownership of the goods have
been transferred to the buyer, recovery of the consideration is probable, the associated costs and involvement with,
the goods and the amount of revenue can be measured reliably. The timing of transfers of risks and rewards normally
happen upon shipment.

(ii) Sales returns / rate differences are adjusted from the sales of the year in which the returns take place / rate differences
accepted.

(iii) Further, revenues are recognized at gross value of consideration received excluding the amount of Goods & Service
Tax(GST).

f. PROPERTY, PLANT AND EQUIPMENT (PPE)

Recognition and measurement:

Property, plant and equipment are initially recognized at cost of acquisition or construction after deducting refundable
purchase taxes and including the cost directly attributable for bringing the asset to the location and conditions necessary for it
to be capable of operating in the manner intended by the management, borrowing cost in accordance with the established
accounting policy, cost of restoring and dismantling, if any, initially estimated by the management. After the initial recognition
the property, plant and equipment are carried at cost less accumulated depreciation and impairment losses.

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

The estimated useful lives, residual values and depreciation method are reviewed at each financial year end and the effect of
any change is accounted for on prospective basis. Depreciation on plant & equipment''s are provided as per below schedule:-

The carrying amount of the all property, Plant and equipment are derecognized on its disposal or when no future economic
benefits are expected from its use or disposal and the gain or loss on de-recognition is recognized in the statement of profit &
loss.

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as
capital advances and cost of assets not put to use before such date are disclosed under ''capital work-in-progress''.

g. INVENTORIES

Raw materials, stock-in-trade, work-in-progress, finished goods and packing materials are valued at the lower of weighted
average cost and net realizable value. Cost of finished goods and work-in-progress includes cost of materials, direct labour and
an appropriate portion of overheads to bring the inventory to the present location and condition. Stores and maintenance
spares are valued at average cost.

The net realizable value of work-in-progress is determined with reference to the selling price of related finished goods. Raw
materials and other supplies held for use in production of inventories are not written down below cost except in cases where
material prices have declined and it is estimated that the cost of the finished products will exceed their net realizable value.

Obsolete stocks are identified every year on the basis of technical evaluation and are charged off to revenue.

Finished goods expiring within 60 days(near expiry inventory) as at the balance sheet date have been fully provided for.

h. CASH AND CASH EQUIVALENTS

For the purpose of presentation in the cash flow statement, cash and cash equivalents includes cash on hand, deposits held at
call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value

i. TRADE RECEIVABLES

T rade receivables represents amount billed to customers as credit sales and are net off;

a. any amount billed but for which revenues are reversed under the different accounting standard and

b. Impairment for trade receivables, which is estimated for amounts not expected to be collected in full."

j. FINANCIAL INSTRUMENTS
Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the
instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade
receivables/payables and where cost of generation of fair value exceeds benefits, which are initially measured at transaction
price. Transaction costs directly related to the acquisition or issue of the financial assets and financial liabilities (other than
financial assets and financial liabilities through profit & loss account) are added to or deducted from the cost of financial assets
or financial liabilities. Transaction cost directly attributed to the acquisition of financial assets or financial liabilities at fair value
through profit & loss account are recognized immediately in the statement of profit & loss.

Subsequent measurement

(i) Financial assets carried at amortized cost: A financial asset is subsequently measured at amortized 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.

(ii) Financial assets at fair value through other comprehensive income: A financial asset is subsequently measured at fair
value through other comprehensive income 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.

The Company has made an irrevocable election for its investments which are classified as equity instruments (all being not held
for trading), to present the subsequent changes in fair value in other comprehensive income based on its business model.

Fair value of the listed equity instruments are measured using the rate quoted in the stock exchange wherein the securities are
actively traded as on the last working day of the period of reporting. In respect of unlisted equity instruments, fair value is
determined based on the latest audited financial statements and considering the open market information available, failing
which it shall be measured at cost..

(c) Financial liabilities

(i) Financial liabilities are initially recognized at the fair value of the consideration received less directly attributable
transaction cost.

(ii) Subsequent to initial measurement, financial liabilities are measured at amortised cost. The difference in the initial
carrying amount of the financial liabilities and their redemption value is recognized in the statement of profit & loss over
the contractual term using the effective interest rate method. This category includes the following class of liabilities;
trade and other payables, borrowing; and other financial liabilities.

(iii) Financial liabilities are further classified as current and non-current depending whether they are payable within 12
months after the balance sheet date or beyond.

(iv) Financial liabilities are derecognized when the company is discharge from its obligation; they expire, are cancelled or
replaced by a new liability with substantial modified terms

k. IMPAIRMENT
Financial assets

The company recognizes loss allowances using the expected credit loss model for the financial assets which are not fair valued
through statement of profit and loss. Loss allowance on trade receivables, with no significant financing component is measured
at an amount equal to lifetime expected credit loss. For all financial assets expected credit losses are measured at an amount
equal to 12-month ECL unless there has been significant increase in credit risk from initial recognition in which case these are
measured at lifetime expected credit loss. The amount of expected credit losses or reversal that is required to adjust the loss
allowance at the reporting date to the amount that is required to be recognized is recognized as an impairment gain or loss in
the profit or loss for the period.

Intangible assets, property, plant and equipment

Intangible assets, property plant & equipment are evaluated for recoverability wherever events or changes in circumstances
indicate that their carrying amount may not be recoverable.

For impairment testing, assets that do not generate independent cash flows are grouped together into cash generating units
(CGUs).

For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value in
use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of
those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.

If such asset is considered to be impaired, the impairment to be recognized in the statement of profit and loss is measured by
the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment
loss is reversed in the statement of profit & losses if there have been changes in the estimates used to determine the
recoverable amount. The carrying amount is increased to its revised recoverable amount, provided that this amount does not
exceeds the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no
impairment loss has been recognized for the asset in prior years.

l. EARNING PER SHARE

Basic Earnings Per Share is computed by dividing the net profit attributable to the equity shareholders of the company to the
weighted average number of Shares outstanding during the period & Diluted earnings per share is computed by dividing the
net profit attributable to the equity shareholders of the company after adjusting the effect of all dilutive potential equity shares
that were outstanding during the period, the weighted average number of shares outstanding during the period including the
weighted average number of equity shares that could have issued upon conversion of all dilutive potential.

m. INCOME TAXES

Income tax expense or credit represents the sum of the current tax and deferred tax.

Current and deferred tax is recognised in the Statement of Profit and Loss except to the extent it relates to items recognised in
''Other comprehensive income'' or directly in equity, in which case it is recognised in ''Other comprehensive income'' or directly
in equity, respectively.

Current income tax

Current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the Statement of
profit and loss because some items of income or expense are taxable or deductible in different years or may never be taxable
or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the
end of the reporting period.

Current tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current
tax liabilities and when they relate to income taxes levied by the same taxation authority. The Company periodically evaluates
positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate. It establishes provisions where appropriate on the basis of amounts expected to be
paid to the tax authorities.

MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay
normal income tax during the specified period. In the year in which the Minimum Alternative tax (MAT) credit becomes eligible
to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of
Chartered Accountants of India, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as
MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of
MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal
Income Tax during the specified period.

Deferred Tax

Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purpose at reporting date.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively
enacted by the balance sheet date and are expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and
liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A
deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against
which the deductible temporary differences and tax losses can be utilized.

The carrying amount of deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be utilised. Unrecognized
deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that
future taxable profits will allow deferred tax assets to be recovered.

The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the
recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability
simultaneously.

n. EMPLOYEE BENEFITS EXPENSES AND LIABILITIES IN RESPECT OF EMPLOYEE BENEFITS ARE RECORDED IN ACCORDANCE WITH
INDIAN ACCOUNTING STANDARD 19 - EMPLOYEE BENEFITS.

(i) Provident Fund

The Company pays contributions toward provident fund to the regulatory authorities as per local regulations where the
Company has no further payment obligations. The contributions are recognised as employee benefit expense when they
are due.

The Company makes contribution Employee State Insurance in accordance with Employee State Insurance Act, 1948.

The Company has no obligation, other than the contribution payable to the provident fund.

(ii) Gratuity and other post-employment benefits

Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability recognised in the balance
sheet in respect of gratuity is the present value of the defined benefit/obligation at the balance sheet date less the fair
value of plan assets, together with adjustment for unrecognized actuarial gains or losses and past service costs. The defined
benefit/obligation is calculated at or near the balance sheet date by an independent actuary using the projected unit credit
method.

Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized in other
comprehensive income. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the
discount rate used to measure the defined benefit obligations recognized in Other Comprehensive Income. The effect of
any plan amendments are recognized in net profits in the Statement of Profit and Loss.

(iii) Other Short Term Benefits

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12months
after the end of the period in which the employees render the related service are recognised in respect of employees''
services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

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Mar 31, 2015

A) Basis of preparation of financial statements

The financial statement have been prepared and presented under the historical cost convention on an accrual basis of accounting and in accordance with the accounting principles generally accepted in India and comply with the accounting standards referred in the Companies (Accounting Standards) Rules 2006 which continue to apply under section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Account) rules, 2014 and other relevant provisions of the Companies Act, 1956 to the extent applicable.

b) Uses of Estimates

The preparation of financial statements in conformity with Generally accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the application of the accounting policies and the reported amount of asserts, liabilities, income and expenses and the disclosure of contingent liabilities on the date of financial statement. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods. Estimates and underlying assumptions are review on an ongoing basis.

c) Current and 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 schedule III of the Companies Act, 2013. Based on the nature of it's activates and the time between the acquisition of assets for processing and their realization in cash or cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

d) Revenue Recognition

Revenue from sale of goods in the course of ordinary activities is recognized when the significant risk and rewards in respect of ownership are transferred to the customer and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of the goods as well as regarding its collection. Revenue is net of excise duty & sales tax.

Export incentive entitlements are recognized as income when the right to receive credit as per the terms of the scheme is established in respect of the exports made, and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.

e) Tangible Fixed Assets and Depreciation

Tangible fixed assets are stated at the cost of acquisition or construction, less accumulated depreciation and impairment losses, if any. The cost of an item or tangible fixed asset comprises its purchase price excluding cenvat credit but including of non-refundable taxes or levies and any attributable cost of bringing the asset to its working condition for its intended use. Advances paid towards acquisition of tangible fixed assets outstanding at each Balance sheet date, are shown in fixed assets schedule as advances paid.

Depreciation on fixed assets upto 31st March 2014 was provided on straight line method at the higher of the rates determined by the Company based on the estimated useful life of the assets or the rates specified in Schedule XIV of the Companies Act, 1956.

Pursuant to the notification of the Schedule II of the Companies Act, 2013 with effect from 01st April, 2014, depreciation for the year has been provided as per the rates determined in Part C of Schedule II or based on estimated useful life of the assets determined by the management. Accordingly, for assets which has no residual life as at 1st April, 2014, the book value has been adjusted against Surplus (net of deferred tax)

The policy of company is to provide depreciation on the Building, Plant & Machinery and Other Fixed Assets from the date of commercial production/put to use.

f) Impairment of Assets

In accordance with Accounting Standard 28(AS 28) an "Impairment of assets" where there is an indication of impairment of the Company's assets, the carrying amounts of the Company's assets are reviewed at each balance sheet date to determine whether there is any impairment. An impairment loss is recognized whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. Impairment loss is recognized in the statement of profit & loss.

g) Borrowing Costs

Borrowing costs are interest and other costs incurred by the Company in connection with the borrowing of funds. Borrowing cost directly attributable to acquisition or construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use is capitalised. All other borrowing costs are treated as period cost and charged to the profit and loss account in the year in which it was incurred.

h) Inventories

Inventories comprises raw materials, work-in-progress, finished goods, stock-in-trade and stores and spares are carried at the lower of cost and net realizable value. Cost of inventories comprises all costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition In case of manufactured inventories and WIP, fixed production overheads are allocated on the basis of normal capacity of production facilities. Excise duty liability is included in the valuation of closing inventory of finished goods.

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

i) Employee Retirement Benefits

1. Defined contribution plan: Company's contribution paid/payable during the year to provident fund, ESIC and labour welfare fund are charged to statement of profit and loss account on due basis.

2. Defined benefit plan : Company's liabilities towards gratuity and long term compensated absences are generally provided for based on actuarial valuation carried out at the close of each year.

j) Foreign Exchange Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign currency transaction settled during the period are recognized in the statement of Profit & Loss.

Monetary assets and liabilities denominated in foreign currencies as at the Balance Sheet date are transacted at period end rates. The resultant exchange differences are recognised in the Statement of Profit & Loss. Non - monetary assets are at the rate prevailing on the date of transaction.

k) Income taxes

Current Tax: Income tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is based on the results for the year, in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) Credit: Minimum Alternate Tax credit is recognized, as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Profit & Loss Account and shown as MAT Credit Entitlement under Loans & Advances. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

Deferred Tax: Deferred Tax is recognized, subject to the consideration of prudence, as the tax effect of timing difference between the taxable income & accounting income computed for the current accounting year and reversal of earlier years' timing difference. Deferred Tax Assets are recognized and carried forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation and carry forward losses, which are recognized to the extent that there is virtual certainty, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

l) Investments

Investments that are readily realizable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investments are classified as long-term investments. The provision for any diminution in the value of long term investments is made only if such a decline is other than temporary.

m) Cash Flow Statement

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

n) Provisions & Contingencies

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Liabilities which are material, and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent, and disclosed by way of notes to the account. Contingent Assets are neither recognized nor disclosed in the financial statements.

These are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

o) Earning per share

Earnings per Share (EPS) is calculated by dividing the Net Profit or Loss for the period attributable to equity shareholders by the Weighted Average Number of equity shares outstanding during the period.

For the purpose of calculating Diluted Earnings per Share, the Net Profit or Loss for the period attributable to equity shareholders is divided by the Weighted Average Number of shares outstanding during the period after adjusted for the effects of all dilutive potential equity shares.

p) Other Accounting policies

Accounting Policies not specifically referred to are in accordance with generally accepted accounting principles.

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Mar 31, 2014

A) Basis of Accounting

These financial statements have been prepared and presented on the accrual basis of accounting and comply with the Accounting Standards prescribed in the Companies (Account Standards) rules 2006 issued by the Central Government and in compliance with the applicable Accounting Standards((AS) referred to in sub-section (3C) of Section 211 (read with section 133 of Companies Act, 2013) of the said Act. The accounting policies, except otherwise stated, have been consistently applied by the Company.

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 Revised Schedule VI to the Companies Act, 1956. Based on the nature of the services and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

b) Uses of Estimates

The presentation of financial statements in conformity with the generally accepted accounting principles requires management to judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses and disclosure of contingent liabilities on the date of the financial statements. Difference between the actual results and estimates are recognized in the year in which the results are known/materialized.

c) Revenue Recognition

Revenue from sale of goods in the course of ordinary activities is recognized when the significant risk and rewards in respect of ownership are transferred to the customer and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of the goods as well as regarding its collection. Revenue is net of excise duty & sales tax.

Export incentive entitlements are recognized as income when the right to receive credit as per the terms of the scheme is established in respect of the exports made, and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.

d) Tangible Fixed Assets and Depreciation

Tangible fixed assets are stated at the cost of acquisition or construction, less accumulated depreciation and impairment losses, if any. the cost of an item or tangible fixed asset comprises its purchase price excluding cenvat credit but including of non refundable taxes or levies and any attributable cost of bringing the asset to its working condition for its intended use. Advances paid towards acquisition of tangible fixed assets outstanding at each Balance sheet date, are shown in fixed assets schedule as advances paid.

Depreciation on tangible fixed assets, is provided on a pro-rata basis, using the straight-line method and at the rates specified in Schedule-XIV to the Companies Act, 1956. Depreciation on fixed assets costing upto Rs. 5000/- is provided @ 100% over a period of one(1) year. The policy of company is to provide depreciation on the Building, Plant & Machinery and Other Fixed Assets from the date of commercial production/put to use.

e) Impairment of Assets

An asset is impaired if there is sufficient indication that the carrying cost would exceed the recoverable amount of cash generating asset. In that event an impairment loss so computed would be recognized in the accounts in the relevant year.

f) Borrowing Costs

Borrowing costs are interest and other costs incurred by the Company in connection with the borrowing of funds. Borrowing cost directly attributable to acquisition or construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use is capitalised. All other borrowing costs are treated as period cost and charged to the profit and loss account in the year in which it was incurred.

g) Inventories

Inventories comprises raw materials, work-in-progress, finished goods, stock-in-trade and stores and spares are carried at the lower of cost and net realizable value. Cost of inventories comprises all costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition In case of manufactured inventories and WIP, fixed production overheads are allocated on the basis of normal capacity of production facilities. Excise duty liability is included in the valuation of closing inventory of finished goods.

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

h) Employee Retirement Benefits

1. Defined contribution plan: Company''s contribution paid/payable during the year to provident fund, ESIC and labour welfare fund are charged to statement of profit and loss account on due basis.

2. Defined benefit plan : Company''s liabilities towards gratuity and long term compensated absences are provided for based on actuarial valuation carried out at the close of each year. The actuarial valuation is done by an Independent Actuary as per projected unit credit method.

i) Foreign Exchange Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign currency transaction settled during the period are recognized in the statement of Profit & Loss.

Monetary assets and liabilities denominated in foreign currencies as at the Balance Sheet date are transacted at period end rates. The resultant exchange differences are recognised in the Statement of Profit & Loss. Non –monetary assets are at the rate prevailing on the date of transaction.

j) Income taxes

Current Tax: Provision for Taxation is ascertained on the basis of assessable profit computed in accordance with the provisions of Income Tax Act, 1961.

Minimum Alternate Tax (MAT) Credit: Minimum Alternate Tax credit is recognized, as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Profit & Loss Account and shown as MAT Credit Entitlement under Loans & Advances. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

Deferred Tax: Deferred Tax is recognized, subject to the consideration of prudence, as the tax effect of timing difference between the taxable income & accounting income computed for the current accounting year and reversal of earlier years'' timing difference. Deferred Tax Assets are recognized and carried forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation and carry forward losses, which are recognized to the extent that there is virtual certainty, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

k) Investments

Investments that are readily realizable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investments are classified as long-term investments. The provision for any diminution in the value of long term investments is made only if such a decline is other than temporary.

l) Cash Flow Statement

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

m) Provisions & Contingencies

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Liabilities which are material, and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent, and disclosed by way of notes to the account. Contingent Assets are neither recognized nor disclosed in the financial statements.

These are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

n) Earning per share

Earnings per Share (EPS) is calculated by dividing the Net Profit or Loss for the period attributable to equity shareholders by the Weighted Average Number of equity shares outstanding during the period.

For the purpose of calculating Diluted Earnings per Share, the Net Profit or Loss for the period attributable to equity shareholders is divided by the Weighted Average Number of shares outstanding during the period after adjusted for the effects of all dilutive potential equity shares.

o) Other Accounting policies

Accounting Policies not specifically referred to are in accordance with generally accepted accounting principles.

Pursuant to approval of shareholders by way of Special Resolution accorded in compliance with provisions of Section 81(1A) and other applicable provisions, if any, of the Companies Act, 1956 (including any amendment(s) or re-enactment thereof), and in-principle approval received from BSE Limited, copies of which are placed before the meeting and initialed by the Chairman for the purpose of identification thereof, and subject to the provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (hereinafter referred to as "SEBI (ICDR) Regulations") and in accordance with other existing Guidelines, rules and regulations of the Securities and Exchange Board of India ("SEBI") including the SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 and subject to enabling provisions of the Memorandum and Articles of Association of the Company, the Board of Directors hereby allot 56,75,350 (Fifty Six Lakhs Seventy Five Thousand Three Hundred and Fifty Only) Equity Shares of Rs. 10/- (Rupees Ten Only) each and 40,82,650 (Forty Lakhs Eighty Two Thousand Six Hundred and Fifty Only) Warrants, to be convertible at the option of warrant holders in one or more tranches, within 18 months from the date of allotment into equivalent number of fully paid up Equity Share of face value of Rs.10/- each for cash at an exercise price of Rs. 10/- (Rupees Ten only) each or such other price as may be determined in accordance with the provisions of SEBI (ICDR) Regulations, 2009, on Preferential basis to the persons belonging to the Promoters and Non-Promoter. In Principal Approval of the above mentioned Equity Shares & Shares Warrants has been received from BSE on 21.11.2013.

A. The company has only one class of shares having a par value of Rs10/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholder''s in the ensuring General Meeting.

B. In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company in proportion to their number of equity shares after distribution of all preferential amounts.

(a) Term loan from Indian Overseas Bank of Rs. 90,65,098/- which carries interest base rate 3.75% and is repayable in 60 installments of Rs. 2,06,000/- from October, 2012. The loan is secured by all immovable & movable fixed assets of the company.

(b) Term loan from Indian Overseas Bank of Rs. 1,95,59,433/- which carries interest base rate 3.75% and is repayable in 84 installments of Rs. 3,28,000/- from October, 2012. The loan is secured by all immovable & movable fixed assets of the company.

(c) Term loan includes Working Capital Term Loan of Rs. 1,24,72,000/- from Indian Overseas Bank which carries interest base rate 3.75% and is repayable in 60 monthly installments of Rs. 2,83,000/- from October, 2012. The loan is secured by 1st charge on the current and fixed assets of the company.

(d) Vehicle Finance loan carries interest @ 10% p.a. and repayable in 36 equal monthly installments. The loan is secured by hypothecation of vehicle.

Working capital loan availed from Indian overseas bank are secured by hypothecation of inventories and book debts ( present & future) also first charge by way of mortgage on all immovable properties and by way of hypothecation on all the fixed assets of the company both present & future and guaranteed by director/promoter. The said facility is repayable on demand.

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Mar 31, 2013

A) Basis of Preparation of Financial Statements

The Financial statements of the company have been prepared to comply with all material aspects of the applicable Accounting Principles in India, the Accounting Standards issued by The Institute of Chartered Accountants of India and the relevant provision of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention and on the basis of going concern basis. The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

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 Revised Schedule VI to the Companies Act, 1956. Based on the nature of the services and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

b) Uses of Estimates

The presentation of financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management''s evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may diverge from these estimates.

c) Fixed Assets & Depreciation

1. Fixed Assets

i. Fixes Assts are stated at cost of acquisition less accumulated depreciation. Cost includes all expenses, borrowing cost and other incidental expenses incurred up to the date of installation/put to use.

ii) Convert Credit/Value Added tax availed on purchase of fixed assets are reduced from the cost of respective assets.

2. Depreciation

Depreciation is provided on straight line method at the rates specified in schedule XIV of the Companies Act, 1956 on pro rata basis. The policy of company is to provide depreciation on the Building, Plant & Machinery and Other Fixed Assets from the date of commercial production/put to use.

d) Impairment of Assets

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statements of Profit & Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is increase/reverses where there has been change in the estimate o recoverable value. The recoverable value is the higher of the assets net selling prices and value in use.

e) Borrowing Costs

Borrowing costs directly attributable to the acquisition or construction of fixed assets are capitalized as part of the cost of the assets, upto the date the assets is put to use. Other costs are charged to the statement of profit and loss account in the year in which they are incurred.

f) Inventories

Inventories are valued at lower of cost or net realizable value (Cost is determined on weighted average basis). The Cost of work-in-progress and finished goods comprises of raw materials, direct labour, other direct costs and related production overheads & Excise duty as applicable. Net realizable value is the estimate of the selling price in the ordinary course of business as applicable.

g) Employee Retirement Benefits

1. Defined contribution plan : Company''s contribution paid/payable during the year to provident fund, ESIC and labor welfare fund are charged to statement of profit and loss account.

2. Defined benefit plan : Company''s liabilities towards gratuity and leave encashment are determined using the projected unit credit method which considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Past services are recognized on a straight line basis over the average period until the amended benefits become vested. Actuarial gain and losses are recognized immediately in the statement of profit and loss account as income or expenses. Obligations is measured at the present value of estimated future cash flow using a discounted rate that is determined by the reference to market yields at the balance sheet date on government bonds where the currency and terms of government bonds are consistent with the currency and estimated terms of the defined benefit obligation.

h) Foreign Currency Transactions

1. Transactions in foreign currency are recorded at the exchange rate prevailing as on date of transaction.

2. Foreign currency assets/liabilities as on the balance sheet date are translated at the exchange rate prevailing on the date of balance sheet.

I) Taxes on Income

Tax expenses comprised of current tax, deferred tax charge or credit. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. The deferred tax charged or credit is recognized using prevailing enacted or substantively annexed tax rate where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty or realization such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each balance sheet date based on developments during the period. MAT Credit Entitlement is shown under the current Assets in the Balance Sheet. The same will be charged to profit & loss account in coming years as per provisions of Section 115JB of Income Tax Act, 1961.

j) Investments

Investments: Long term investments are stated at cost. Provision for diminution in value is made only if, in the opinion of management such a decline is other than temporary.

k) Revenue Recognition

Sales are recognized when goods are supplied and are recorded net of returns, sales tax & excise duty. Expenses are accounted for on accrual basis.

l) Provisions & Contingencies

A provision is recognized when the company has a present obligation as a result of past event. It is probable that an outflow of resources embodying economic benefit will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate of the expenditure required to settle the obligation at the balance sheet date.

These are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

m) Earning per share

In accordance with the Accounting Standard-20(AS-20) "Earning Per Share" issued by the Institute of Chartered Accountants of India, earning per share is computed by dividing the profit after tax with the weighted average number of shares outstanding at the year end.

n) Other Accounting policies

Accounting Policies not specifically referred to are in accordance with generally accepted accounting principles.

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Mar 31, 2012

A) Basis of Preparation

The Financial Statements are prepared to comply in all material aspects with applicable accounting principles in India, the accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956 and are in consonance with generally accepted accounting principles.

b) Fixed Assets

All Fixed Assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. In case of fixed assets acquired for new project/expansions, interest cost on borrowings and other related expenses incurred up to the date of completion of project are capitalized.

c) Depreciation on Fixed Assets

Depreciation is provided pro-rata to the period of use on the Straight Line method at the rates prescribed under Schedule XIV to the Companies Act, 1956 on fixed assets used for the purpose of business. No Depreciation is provided if there is any deletion of assets during the year.

d) Impairment of Assets

The Company assesses at each Balance sheet whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the assets. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit & Loss Account. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

e) Inventories

Inventories are valued at lower of cost or net realizable value (Cost is determined on weighted average basis). The Cost of work-in-progress and finished goods comprises of raw materials, direct labor, other direct costs and related production overheads & Excise duty as applicable. Net realizable value is the estimate of the selling price in the ordinary course of business as applicable.

f) Employee Retirement Benefits

Short Term Employee benefits- All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. These benefits include compensated absences such as paid annual leave and sickness leave. The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expenses during the months.

Long Term employee benefits plans: Provident Fund contributions are made to Employee Provident Fund Organization framed by Govt. of India in the year 1952. The company & eligible employees make monthly contributions to the Provident Fund Organization equal to specified percentage of the covered employee's salary. The Interest rate payable by the Provident Fund organization to the beneficiaries every year is being notified by the Government. The Company contributes to Employee's State Insurance Fund & Employee's Pension Scheme 1995 & has no further obligation to the plan beyond its monthly contribution.

Gratuity & Leave encashment plan: The Company has Defined Benefits Plan comprising of Gratuity Fund & Leave Encashment Fund. The Liability for the Gratuity & Leave Encashment plan is determined on the basis of an independent actuarial valuation done at the year end. The actuarial valuation method used for measuring the liability is the Projected Unit Credit method. The obligations are measured as the present value of estimated future cash flows discounted at rates reflecting the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligations. The estimate of future salary increase considered takes into account the inflation, seniority, promotion and other relevant factors. Actuarial gains and losses are recognized immediately in the Profit & Loss Account.

g. Taxes on Income

Income Tax & Deferred Tax : Provision for Tax is made on the basis of taxable income for the year at current rates. Tax represents the amount of Income Tax payable in respect of the taxable income for the reporting period. Deferred Tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. The Deferred Tax Asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

h) Investments

Investments: Long term investments are stated at cost as reduced by amounts written off/provision made for diminution in value. Current investments are stated at cost or fair value, whichever is lower.

i) Revenue Recognition

Sales are recognized upon delivery of products and are recorded exclusive of sales tax, excise duty & net of returned.

j) Provisions & Contingencies

The Company recognizes a provision when there is a present obligation as a result of a past event that probably required and outflow of resource & a reliable estimate can be made of the amount of the obligations. A disclose for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood or outflow of resources' is remote, no provisions or disclosure is made.

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Mar 31, 2010

I. Financial Statements: The Financial Statements are prepared to comply in all material aspects with applicable accounting principles in India, the accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956 and are in consonance with generally accepted accounting principles.

II. Fixed Assets: All Fixed Assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. In case of fixed assets acquired for new project/expansions, interest cost on borrowings and other related expenses incurred upto the date of completion of project are capitalized.

III. Depreciation: Depreciation is provided pro-rata to the period of use on the Straight Line method at the rates prescribed under Schedule XIV to the Companies Act, 1956 on fixed assets used for the purpose of business. No Depreciation is provided if there is any deletion of assets during the year.

IV. Impairments of Assets: The Company assesses at each Balance sheet whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the assets. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit & Loss Account. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

V. Inventories: Inventories are valued at lower of cost or net realizable value (Cost is determined on weighted average basis). The Cost of work-in-progress and finished goods comprises of raw materials, direct labour, other direct costs and related production overheads & Excise duty as applicable. Net realizable value is the estimate of the selling price in the ordinary course of business as applicable.

VI. Employee Benefits:- Short Term Employee benefits- All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. These benefits include compensated absences such as paid annual leave and sickness leave. The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expenses during the months.

Long Term employee benefits plans: Provident Fund contributions are made to Employee Provident Fund Organization framed by Govt. of India in the year 1952. The company & eligible employees make monthly contributions to the Provident Fund Organization equal to specified percentage of the covered employees salary. The Interest rate payable by the Provident Fund organization to the beneficiaries every year is being notified by the Government. The Company contributes to Employees State Insurance Fund & Employees Pension Scheme 1995 & has no further obligation to the plan beyond its monthly contribution.

Gratuity & Leave encashment plan: The Company has Defined Benefits Plan comprising of Gratuity Fund & Leave Encashment Fund. The Liability for the Gratuity & Leave Encashment plan is determined on the basis of an independent actuarial valuation done at the year end. The actuarial valuation method used for measuring the liability is the Projected Unit Credit method. The obligations are measured as the present value of estimated future cash flows discounted at rates reflecting the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligations. The estimate of future salary increase considered takes into account the inflation, seniority, promotion and other relevant factors. Actuarial gains and losses are recognized immediately in the Profit & Loss Account.

VII. Income Tax & Deferred Tax : Provision for Tax is made on the basis of taxable income for the year at current rates. Tax represents the amount of Income Tax payable in respect of the taxable income for the reporting period. Deferred Tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. The Deferred Tax Asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

VIII. Investments: Long term investments are stated at cost as reduced by amounts written off/provision made for diminution in value. Current investments are stated at cost or fair value, whichever is lower.

IX. Revenue Recognition: Sales are recognized upon delivery of products and are recorded exclusive of sales tax, excise duty & net of returned.

X. Contingent Liability: The Company recognizes a provision when there is a present obligation as a result of a past event that probably required and outflow of resource & a reliable estimate can be made of the amount of the obligations. A disclose for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood or outflow of resources is remote, no provisions or disclosure is made.