Accounting Policies of NCC Blue Water Products Ltd. Company

Mar 31, 2025

1 Corporate information

The company main business is implementation of an Integrated Aqua Culture Project. The Indian Aqua Industry continued to pass through a difficult period, in view of Virus and other related issues. Due to persistent viral attacks most of the corporate aquaculture companies had discontinued their operations and shut their processing plants incurring heavy losses. The company is considering various possibilities to restructure its business operations.

2 Significant accounting and preparation of financial statements2.1 Statement of compliance

The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) specified under Section 133 of the Companies Act, 2013, read with Rule 3 of the Companies (Indian Accounting Standards) Rules,

2015, as amended.

2.2 Basis of accounting and preparation of financial statements

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (''Act'') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules,

2016. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities

to fair value but are not fair value, such as a net realisable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

• Level 2 inputs are other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

2.2.1 Revenue Recognition

Sale of goods is recognised at the point of dispatch of goods to the customers.

Other income:

a) Interest income : Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

b) Rental income : Rental income from operating leases is generally recognised over the term of the relevent lease.

2.2.2 Employee Benefits:Retirement benefit costs and termination benefits

Payment to defined contribution retirement benefit plans are recognised as an expenses when employees have rendered service entitling them to the contributions.

Provident Fund

Contribution to provident fund is charged to

revenue

Gratuity

Every Employee who has completed 5 years or more of service eligible for gratuity on departure

@ 15 days salary ( last drawn salary) for each completed year of service as per the provsions of Payment of Gratuity Act, 1972.

2.2.3 Taxation

Income tax expense represents sum of the tax currently payable and deferred tax Current Tax

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income-tax Act, 1961 and other applicable tax laws that have been enacted or substantively enacted by the end of the reporting period.

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 are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary differences arise from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Current and deferred tax for the year Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

2.2.4 Investment Property

Properties, including those under construction, held to earn rentals and/or capital appreciation are classified as investment property and are measured and reported at cost, including transaction costs and borrowing cost capitalised for qualifying assets, in accordance with the Company''s accounting policy. Depreciation, if any, is charged as per the useful life of the Asset.

2.2.5 Provisions, Contingent Liabilities and Contingent Assets :

The Company recognises provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for Contingent liabilities is made in the notes on accounts when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Contingent assets are disclosed in the financial statements when flow of economic benefit is probable.

2.2.6 Financial instruments:

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Financial assets

Financial asset is

1. Cash / Equity Instrument of another Entity,

2. Contractual right to -

a) receive Cash / another Financial Asset from another Entity, or

b) exchange Financial Assets or Financial Liabilities with another Entity under conditions that are potentially favourable to the Entity.

Subsequent measurement of the financial assets

(i) Financial assets carried at amortised cost

A financial asset is subsequently 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.

(ii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(iii) The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. 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 recognised is recognized as an impairment gain or loss in statement of profit or loss.

Financial liabilites

Financial liability is:

Contractual Obligation to

a) deliver Cash or another Financial Asset to another Entity, or

b) exchange Financial Assets or Financial Liabilities with another Entity under conditions that are potentially unfavourable to the Entity.

Subsequent measurement of the financial liabilites

Financial liabilities are subsequently 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 the fair value due to the short maturity of these instruments. Derecognition of financial instruments The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the

Company''s balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may or may not be realized.

2.2.7 Impairment of Assets:

Investment Property: Investment Properties are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. 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 assets are 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 and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

Fair value measurement The Company measures certain financial instruments at fair value at each reporting date. Fair value is the price that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

a. In the principal market for the asset or liability, or

b. In the absence of principal market, in the most advantageous market for the asset or liability.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

2.2.8 Leases :

The Company''s leasing arrangements are mainly in respect of operating leases for premises and construction equipment. The leasing arrangements range from 11 months to 10 years generally and are usually cancellable / renewable by mutual consent on agreed terms.Lease payments under operating leases are recognised as an expense on a straight line basis in the statement of profit and loss over the lease term except where the lease payments are structured to increase in line with expected general inflation.

2.2.9 Earnings Per Share :

Basic earnings per equity share is computed by dividing the net profit for the year attributable to the Equity Shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit for the year, adjusted for the effects of dilutive potential equity shares, attributable to the Equity Shareholders by the weighted average number of the equity shares and dilutive potential equity shares outstanding during the year except where the results are antidilutive.

Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit / (loss) 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, investing and financing activities of the Company are segregated based on the available information. Cash comprises cash on hand and demand deposits with banks. Cash equivalents are shortterm balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into

known amounts of cash and which are subject to insignificant risk of changes in value.

Key sources of estimation uncertainty:The

following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year

Items requiring significant estimate	Assumption and estimation uncertainty
Useful lives of property, plant and equipment	The company reviews the estimated useful lives of property plant and equipment at the end of each reporting period. During the current year, there has been no change in life considered for the assets.
Provision for doubtful receivables	The company makes provision for doubtful receivables based on a provision matrix which takes into account historical credit loss experience and adjusted for current estimates.

Exceptional Items:

Exceptional Items represents the nature of transactions which are not in recurring nature during the ordinary course of business but lead to increase / decrease in profit / loss for the year. Operating cycle:

The Company adopts operating cycle based on the project period and accordingly all project related assets and liabilities are classified into current and non current. Other than project related assets and liabilities, 12 months period is considered as normal operating cycle.

Recent Accounting pronouncements Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the period ended March 31,2025 MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

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Mar 31, 2024

2 Significant accounting and preparation of financial

statements

2.1 Statement of compliance

The financial statements have been prepared in
accordance with the Indian Accounting Standards
(Ind AS) specified under Section 133 of the
Companies Act, 2013, read with Rule 3 of the
Companies (Indian Accounting Standards) Rules,

2015, as amended.

2.2 Basis of accounting and preparation of financial
statements

These financial statements are prepared in
accordance with Indian Accounting Standards
(Ind AS) under the historical cost convention
on the accrual basis except for certain financial
instruments which are measured at fair values,
the provisions of the Companies Act, 2013 (''Act'')
(to the extent notified) and guidelines issued by
the Securities and Exchange Board of India (SEBI).
The Ind AS are prescribed under Section 133 of
the Act read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 and Companies
(Indian Accounting Standards) Amendment Rules,

2016. Historical cost is generally based on the fair
value of the consideration given in exchange for
goods and services.

Fair value is the price that would be received to
sell an asset or paid to transfer a liability in an
orderly transaction between market participants
at the measurement date, regardless of whether
that price is directly observable or estimated using
another valuation technique. In estimating the
fair value of an asset or a liability, the Company
takes into account the characteristics of the asset
or liability if market participants would take those
characteristics into account when pricing the asset
or liability at the measurement date. Fair value for
measurement and/ or disclosure purposes in these
financial statements is determined on such a basis,
except for share-based payment transactions
that are within the scope of Ind AS 102, leasing

transactions that are within the scope of Ind AS
17, and measurements that have some similarities
to fair value but are not fair value, such as a net
realisable value in Ind AS 2 or value in use in Ind AS

36.

In addition, for financial reporting purposes, fair
value measurements are categorised into Level
1, 2 or 3 based on the degree to which the inputs
to the fair value measurements are observable
and the significance of the inputs to the fair value
measurement in its entirety, which are described
as follows:

• Level 1 inputs are quoted prices (unadjusted)
in active markets for identical assets or
liabilities that the entity can access at the
measurement date;

• Level 2 inputs are other than quoted prices
included within Level 1, that are observable
for the asset or liability, either directly or
indirectly; and

• Level 3 inputs are unobservable inputs for
the asset or liability.

2.2.1 Revenue Recognition

Sale of goods is recognised at the point of
dispatch of goods to the customers.

Other income:

a) Interest income : Interest income from
a financial asset is recognised when it
is probable that the economic benefits
will flow to the company and the
amount of income can be measured
reliably. Interest income is accrued on a
time basis, by reference to the principal
outstanding and at the effective interest
rate applicable, which is the rate that
exactly discounts estimated future cash
receipts through the expected life of
the financial asset to that asset''s net
carrying amount on initial recognition.

b) Rental income : Rental income from
operating leases is generally recognised
over the term of the relevent lease.

2.2.2 Employee Benefits:

Retirement benefit costs and termination
benefits

Payment to defined contribution retirement
benefit plans are recognised as an expenses
when employees have rendered service
entitling them to the contributions.

Provident Fund

Contribution to provident fund is charged to
revenue

Gratuity

Every Employee who has completed 5 years
or more of service eligible for gratuity on
departure @ 15 days salary ( last drawn salary)
for each completed year of service as per the
provsions of Payment of Gratuity Act, 1972.

2.2.3 Taxation

Income tax expense represents sum of the
tax currently payable and deferred tax

Current Tax

Current tax is the amount of tax payable on
the taxable income for the year as determined
in accordance with the applicable tax rates
and the provisions of the Income-tax Act,
1961 and other applicable tax laws that have
been enacted or substantively enacted by
the end of the reporting period.

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 are generally
recognised for all taxable temporary
differences. Deferred tax assets are generally
recognised for all deductible temporary
differences to the extent that it is probable
that taxable profits will be available
against which those deductible temporary
differences can be utilised. Such deferred
tax assets and liabilities are not recognised
if the temporary differences arise from the
initial recognition (other than in a business
combination) of assets and liabilities in a
transaction that affects neither the taxable
profit nor the accounting profit. In addition,
deferred tax liabilities are not recognised
if the temporary difference arises from the
initial recognition of goodwill.

The carrying amount of deferred tax assets is
reviewed at the end of each reporting period
and reduced to the extent that it is no longer
probable that sufficient taxable profits will
be available to allow all or part of the asset
to be recovered. Deferred tax assets and
liabilities are measured at the tax rates that
are expected to apply in the period in which
the liability is settled or the asset realised,
based on tax rates (and tax laws) that have

been enacted or substantively enacted by
the end of the reporting period.

Current and deferred tax for the year

Current and deferred tax are recognised in
profit or loss, except when they relate to items
that are recognised in other comprehensive
income or directly in equity, in which case, the
current and deferred tax are also recognised
in other comprehensive income or directly in
equity respectively.

2.2.4 Property, plant and equiptment:

Property, plant and equipment are carried
at cost less accumulated depreciation
and impairment losses, if any. The cost of
Property, plant and equipment comprises
of purchase price, applicable duties and
taxes, any directly attributable expenditure
on making the asset ready for its intended
use, other incidental expenses and interest
on borrowings attributable to acquisition
of qualifying fixed assets, upto the date the
asset is ready for its intended use."The initial
estimate of the costs of dismantling and
removing the item and restoring the site on
which it is located is required to be included
in the cost of the respective item of property
plant and equipment” "Cost of major
inspections is recognised in the carrying
amount of property, plant and equipment
as a replacement, if recognition criteria
are satisfied and any remaining carrying
amount of the cost of previous inspection is
derecognised”

Property, Plant and equipment retired from
active use and held for sale are stated at
the lower of their net book value and net
realizable value and are disclosed separately.

An item of property, plant and equipment
is derecognised upon disposal or when no
future economic benefits are expected to
arise from the continued use of the asset.
Any gain or loss arising on the disposal or
retirement of an item of property, plant and
equipement is determined as the difference
between the sales proceeds and the carrying
amount of the asset and is recognised in
profit or loss.

For transition into Ind AS,the company
has elected to continue with the carrying
value of all its property, plant & equipment
recognised as of April 1, 2016 ( transition
date) measured as per the previous GAAP
and use that carrying value as its deemed
cost as of the transition date.

2.2.5 Depreciation and Amortisation:

Depreciable amount for assets is the cost of
an asset, or other amount substituted for cost
less its estimated residual value.

Depreciation on Property, Plant and
equipment has been provided on the straight
line method as per the useful life prescribed
in Schedule II to the Companies Act, 2013
in whose case the life of the assets has been
assessed based on technical assesment,
taking into account the nature of asset, the
estimated usage of the asset, the operating
conditions of the asset, past history of
replacement, anticipated technological
changes, maintenance, etc.

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Mar 31, 2014

Basis of accounting and preparation of financial statements

a) Fixed assets are accounted at cost of acquisition inclusive of inward freight, duties and taxes and incidentals relating to acquisition.

b) Depreciation on fixed assets is provided on straight-line method at the rates specified under schedule XIV of the Companies Act 1956 in force.

c) Assets under installation or under construction as at the Balance Sheet date are shown under Capital Work in Progress.

d) Finished goods are valued at actual cost or net realisable value whichever is less.

Raw materials, stores and spares are valued at Purchase cost. Seed and stock in process are valued at actual cost.

e) Revenue Recognition:

i. Sale of goods is recognised at the point of dispatch of goods to the customers. ii. Interest income on deposit with banks is reckoned on accrual basis.

f) Foreign Currency Transactions:

i. Transactions in foreign currency are recorded in the reporting currency by applying the exchange rate prevalent at the date of transaction.

ii The exchange differences arising on foreign currency transactions are recognised in the period in which they arise, except exchange difference on account of forward exchange contracts, which are recognised over the life of the contract.

g) Share issue and preliminary expenses are written off to profit and loss account over a period of ten years. Deferred revenue expenses are written off to profit and loss account over a period of 5 years.

h) Retirement Benefits:

i Contribution to provident fund is charged to revenue

ii Gratuity and leave encashment liabilities have been provided for on an estimated basis on the assumption that such benefits are payable to all the employees at the end of accounting year.

i) Receipts from Government such as CST reimbursement, subsidies etc are accounted on receipt basis

j) Government Grants: Capital investments subsidy received by the company is treated as capital reserve.

k) Borrowing Costs: Interest on Bank Borrowings and other short term and long-term borrowings is recognised as expenses in the year in which they are incurred.

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Mar 31, 2013

A) Fixed assets are accounted at cost of acquisition inclusive of inward freight, duties and taxes and incidentals relating to acquisition.

b) Depreciation on fixed assets is provided on straight-line method at the rates specified under schedule XIV of the Companies Act 1956 in force.

c) Assets under installation or under construction as at the Balance Sheet date are shown under Capital Work in Progress.

d) Finished goods are valued at actual cost or net realisable value whichever is less.

Raw materials, stores and spares are valued at Purchase cost.

Seed and stock in process are valued at actual cost.

e) Revenue Recognition:

i. Sale of goods is recognized at the point of dispatch of goods to the customers.

ii. Interest income on deposit with banks is reckoned on accrual basis.

f) Foreign Currency Transactions:

i. Transactions in foreign currency are recorded in the reporting currency by applying the exchange rate prevalent at the date of transaction.

ii The exchange differences arising on foreign currency transactions are recognized in the period in which they arise, except exchange difference on account of forward exchange contracts, which are recognized over the life of the contract.

g) Share issue and preliminary expenses are written off to profit and loss account over a period of ten years.

Deferred revenue expenses are written off to profit and loss account over a period of 5 years.

h) Retirement Benefits:

i Contribution to provident fund is charged to revenue

ii Gratuity and leave encashment liabilities have been provided for on an estimated basis on the assumption that such benefits are payable to all the employees at the end of accounting year.

i) Receipts from Government such as CST reimbursement, subsidies etc are accounted on receipt basis

j) Government Grants: Capital investments subsidy received by the company is treated as capital reserve. k) Borrowing Costs: Interest on Bank Borrowings and other short term and long-term borrowings is recognized as expenses in the year in which they are incurred.

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Mar 31, 2012

Basis of accounting and preparation of financial statements

a) Fixed assets are accounted at cost of acquisition inclusive of inward freight' duties and taxes and incidentals relating to acquisition.

b) Depreciation on fixed assets is provided on straight-line method at the rates specified under schedule XIV of the Companies Act 1956 in force.

c) Assets under installation or under construction as at the Balance Sheet date are shown under Capital Work in Progress.

d) Finished goods are valued at actual cost or net realizable value whichever is less.

Raw materials' stores and spares are valued at Purchase cost.

Seed and stock in process are valued at actual cost.

e) Revenue Recognition:

i. Sale of goods is recognized at the point of dispatch of goods to the customers.

ii. Interest income on deposit with banks is reckoned on accrual basis.

f) Foreign Currency Transactions:

i. Transactions in foreign currency are recorded in the reporting currency by applying the exchange rate prevalent at the date of transaction. ii . The exchange differences arising on foreign currency transactions are recognized in the period in which they arise' except exchange difference on account of forward exchange contracts' which are recognized over the life of the contract.

g) Share issue and preliminary expenses are written off to profit and loss account over a period of ten years.

Deferred revenue expenses are written off to profit and loss account over a period of 5 years.

h) Retirement Benefits:

i Contribution to provident fund is charged to revenue

ii Gratuity and leave encashment liabilities have been provided for on an estimated basis on the assumption that such benefits are payable to all the employees at the end of accounting year.

i) Receipts from Government such as CST reimbursement' subsidies etc are accounted on receipt basis

j) Government Grants: Capital investments subsidy received by the company is treated as capital reserve.

k) Borrowing Costs: Interest on Bank Borrowings and other short term and long-term borrowings is recognized as expenses in the year in which they are incurred.

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Mar 31, 2011

A) Fixed assets are accounted at cost of acquisition inclusive of inward freight, duties and taxes and incidentals relating to acquisition.

b) Depreciation on fixed assets is provided on straight-line method at the rates specified under schedule XIV of the Companies Act 1956 in force.

c) Assets under installation or under construction as at the Balance Sheet date are shown under Capital Work in Progress.

d) Finished goods are valued at actual cost or net realisable value whichever is less. Raw materials, stores and spares are valued at Purchase cost. Seed and stock in process are valued at actual cost.

e) Revenue Recognition:

i. Sale of goods is recognised at the point of dispatch of goods to the customers.

ii. Interest income on deposit with banks is reckoned on accrual basis.

f) Foreign Currency Transactions:

I. Transactions in foreign currency are recorded in the reporting currency by applying the exchange rate prevalent at the date of transaction.

II. The exchange differences arising on foreign currency transactions are recognised in the period in which they arise, except exchange difference on account of forward exchange contracts, which are recognised over the life of the contract.

g) Share issue and preliminary expenses are written of to profit and loss account over a period of ten years. Deferred revenue expenses are written of to profit and loss account over a period of 5 years.

h) Retirement Benefits:

I. Contribution to provident fund is charged to revenue

II. Gratuity and leave encashment liabilities have been provided for on an estimated basis on the assumption that such benefits are payable to all the employees at the end of accounting year.

i) Receipts from Government such as CST reimbursement, subsidies etc are accounted on receipt basis.

j) Government Grants: Capital investments subsidy received by the company is treated as capital reserve.

k) Borrowing Costs: Interest on Bank Borrowings and other short term and long-term borrowings is recognised as expenses in the year in which they are incurred.

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Mar 31, 2010

A) Fixed assets are accounted at cost of acquisition inclusive of inward freight, duties and taxes and incidentals relating to acquisition.

b) Depreciation on fixed assets is provided on straight-line method at the rates specified under schedule XIV of the Companies Act 1956 in force.

c) Assets under installation or under construction as at the Balance Sheet date are shown under Capital Work in Progress.

d) Finished goods are valued at actual cost or net realisable value whichever is less.Raw materials, stores and spares are valued at Purchase cost.Seed and stock in process are valued at actual cost.

e) Revenue Recognition:

i. Sale of goods is recognised at the point of dispatch of goods to the customers.

ii. Interest income on deposit with banks is reckoned on accrual basis.

f) Foreign Currency Transactions:

I. Transactions in foreign currency are recorded in the reporting currency by applying the exchange rate prevalent at the date of transaction.

II. The exchange differences arising on foreign currency transactions are recognised in the period in which they arise, except exchange difference on account of forward exchange contracts, which are recognised over the life of the contract.

g) Share issue and preliminary expenses are written off to profit and loss account over a period of ten years.

Deferred revenue expenses are written off to profit and loss account over a period of 5 years.

h) Retirement Benefits:

I. Contribution to provident fund is charged to revenue

II. Gratuity and leave encashment liabilities have been provided for on an estimated basis on the assumption that such benefits are payable to all the employees at the end of accounting year.

i) Receipts from Government such as CST reimbursement,subsidies etc are accounted on receipt basis.

j) Government Grants: Capital investments subsidy received by the company is treated as capital reserve.

k) Borrowing Costs: Interest on Bank Borrowings and other short term and long- term borrowings is recognised as expenses in the year in which they are incurred.