Accounting Policies of Piccadily Agro Industries Ltd. Company

Mar 31, 2023

Significant Accounting Policies

a) Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated
impairment loss, if any. Cost of acquisition or construction is inclusive of freight, duties, taxes, other
directly attributable incidental expenses and gains or losses on effective portion of cash flow hedges
related to purchase in foreign currency and interest on loans attributable to the acquisition or
construction of assets up to the date of commissioning of assets.

The Company is following straight line method of depreciation in respect of buildings, plant and
equipment and other assets.

Depreciation on all tangible assets is provided on the basis of estimated useful life and residual value
determined by the management based on a technical evaluation considering nature of asset, past
experience, estimated usage of the asset, vendor''s advice etc., which coincides with the useful life as
prescribed under Schedule II of the Companies Act 2013 except for certain items of Plant and
Equipment.

b) Inventories

Inventories are valued as follows: Raw materials, stores and spares, Material in transit and packing
materials Valued at lower of cost and net realizable value. However, materials and other items held for use in
the production of inventories are not written down below cost if the finished products in which they will be
incorporated are expected to be sold at or above cost. Cost is determined on FIFO Basis. Finished goods
Valued at lower of cost and net realizable value. Cost includes direct materials, labour and a proportion of
manufacturing overheads based on normal operating capacity. Work-in-process Valued at lower of cost and
net realizable value up to estimated stage of process. Cost includes direct materials, labour and a proportion
of manufacturing overheads based on normal operating capacity. Net realizable value is the estimated
selling price in the ordinary course of business, less estimated costs of completion and the estimated costs
necessary to make the sale. By-products are valued at Net realizable value.

c) Revenue recognition

Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured, regardless of when the payment is being made. Revenue from sale
of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to
the customer and is stated net of trade discounts, sales returns. Effective from April 1,2018, the Company
has applied Ind AS 115 which establishes a comprehensive framework for determining whether, how much
and when revenue is to be recognized. The Company has adopted Ind AS 115 retrospectively from the date
of initial application (i.e. April 1,2018). The impact of the adoption of the standard on the financial statements
of the Company is insignificant. Revenue includes excise duty however, sales tax/ value added tax
(VAT)/Goods and Services Tax(GST) is not received by the company on its own account. Rather, it is tax
collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is
excluded from revenue. Income against claims of the company, viz., export incentives, insurance claims,
etc., is recognized on accrual/right to receive basis.

d) Other revenue streams
Interest Income

For all debt instruments measured either at amortized cost or at fair value through other comprehensive
income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly
discounts the estimated future cash payments or receipts over the expected life of the financial instrument or
a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortized
cost of a financial liability. When calculating the effective interest rate, the Company estimates the expected
cash flows by considering all the contractual terms of the financial instrument(for example, prepayment,
extension, call and similar options) but does not consider the expected credit losses. Interest income is
included in finance income in the statement of profit and loss.

e) . Employee benefits

(i) Defined contribution plans

Company''s contribution paid/payable during the year to provident fund and superannuation fund are
recognized in the statement of profit and loss.

(ii) Defined benefit plans

The liability recognized in respect of gratuity is the present value of defined benefit obligation at the end of
the reporting period less the fair value of plan assets, where applicable. The defined benefit obligation is
calculated annually by actuary using the Projected Unit Credit Method. Re-measurement comprising
actuarial gains and losses and return on plan assets (excluding net interest) are recognized in the other
comprehensive income for the period in which they occur and is not reclassified to profit or loss.

(iii) Bonus Plans

The company recognises a liability and an expense for bonus. The Company recognises a provision where
contractually obliged or where there is a past practice that has created a constructive obligation.

(iv) Gratuity:

The Company has defined benefit plans for post employment benefits in the form of gratuity for its
employees in India. Liability for defined benefit plans is provided on the basis of actuarial valuations, as at
the Balance Sheet date, carried out by an independent actuary. The actuarial valuation method used by
independent actuary for measuring the liability is the projected unit credit method.

(v) Long Term Defined Contribution Plan

The Company has defined contribution plans for post employment benefits in the form of provident fund,
employees’ state insurance and Labour Welfare Fund.

f) Foreign currency transactions

The functional currency and the presentation currency of the Company is Indian rupee (INR). Transactions
in foreign currencies are recorded on initial recognition at the exchange rate prevailing on the date of the
transaction.

Monetary items (i.e. receivables, payable, loans etc) denominated in foreign currency are reported using the
closing exchange rate on each reporting date.

The exchange difference arising on the settlement of monetary items or on reporting these items at rates
different from rates at which these were initially recorded/reported in previous financial statements are
recognized as income/expense in the period in which they arise except for exchange difference on foreign
currency borrowings relating to asset under construction for future use, which are included in the cost of
those assets when they are regarded as an adjustment to interest cost on those foreign currency
borrowings.

g) Financial instruments- Initial Recognition:

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
financial asset or financial liabilities, as appropriate, on initial recognition.

All financial instruments are recognized initially at fair value. Transaction costs that are attributable to the
acquisition of the financial asset (other than financial assets recorded at fair value through profit or loss) are
included in the fair value of the financial assets. Purchase or sales of financial assets that require delivery of
assets within a time frame established by regulation or convention in the market place (regular way trade)
are recognized on trade date. While, loans and borrowings and payables are recognized net of directly
attributable transaction costs.

For the purpose of subsequent measurement, financial instruments of the Company are classified in the
following categories: non derivative financial assets comprising amortized cost, debt instruments at fair
value through other comprehensive income (FVTOCI), equity instruments at FVTOCI or fair value through
profit and loss account (FVTPL) and non-derivative financial liabilities at amortized cost or FVTPL. The
classification of financial instruments depends on the objective of the business model for which it is held.
Management determines the classification of its financial instruments at initial recognition.

Subsequent measurement:

A. Non-derivative financial instruments

(i) Financial assets carried at amortized cost

A financial asset is subsequently measured at amortized cost if it is held 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. A financial asset is measured
at amortized cost if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to
collect contractual cash flows and

(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding. They are presented as
current assets, except for those maturing later than 12 months after the reporting date which are presented
as non-current assets.

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

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

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

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

(iv) Financial liabilities

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

De-recognition 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.

h) Impairment

i) Financial assets

The Company recognizes loss allowances using the expected credit loss for the financial assets which are
not measured at fair value through profit or loss. Loss allowance for trade receivables with no significant
financing component is measured at an amount equal to lifetime expected credit loss.

At each Balance Sheet date, the Company assesses whether there is any indication that an asset may be
impaired. If any such indication exists, management estimates the recoverable amount. Recoverable
amount is higher of an asset’s net selling price and value in use. Value in use is the present value of
estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the
end of its useful life. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss
is recognized in the Profit and Loss Statement to the extent carrying amount exceeds recoverable amount.
Assessment is also done at each Balance sheet date as to whether there is any indication that an
impairment loss recognized for an asset in prior accounting periods may no longer exists or may have
decreased.

ii) Non-financial assets: Tangible and intangible assets

Property, plant and equipment and intangible assets are evaluated for recoverability whenever there is any
indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable
amount (i.e. 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 cash generating unit (CGU) to which
the asset belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying
amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized in the
statement of profit or loss. The Company review/assess at each reporting date if there is any indication that
an asset may be impaired
i) Income taxes

The Income-tax liability is provided in accordance with the provisions of the Income-tax Act, 1961.
Deferred income tax assets and liabilities are recognized for all temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets
are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the
related tax benefit will be realized.

Income tax and deferred tax are measured on the basis of the tax rates and tax laws enacted or
substantively enacted at the end of the reporting period and are recognized in profit or loss, except when
they relate to items that are recognized in other comprehensive income or directly in equity, in which case,
the income tax and deferred tax are also recognized in other comprehensive income or directly in equity,
respectively.

j) Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration.

As per Ind AS 116 each lease component within the contract is accounted as a lease separately from non¬
lease components of the contract and the consideration in the contract is allocated to each lease component
on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of
the non-lease components. A right-of-use asset representing its right to use the underlying asset for the
lease term at the lease commencement date is recognized. The cost of the right-of-use asset measured at
inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease
payments made at or before the commencement date less any lease incentives received, plus any initial
direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the
underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is
subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any
and adjusted for any re-measurement of the lease liability. The right-of-use assets is depreciated using the
straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use
asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of
property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any
indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognized in the
statement of profit and loss.

The lease liability is measured at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit in the
lease, if that rate can be readily determined. If that rate cannot be readily determined, the incremental
borrowing rate is used.

The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the
lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the
carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed
lease payments. The amount of the re-measurement of lease liability due to modification is recognized as
an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of
modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further
reduction in the measurement of the lease liability, the Company recognises any remaining amount of the
re-measurement in statement of profit and loss.

Company as a lessee:

The Company has elected not to apply the requirements of Ind AS 116 Leases on short-term leases of all
assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value.
The lease payments associated with these leases are recognized as an expense on a straight-line basis
over the lease term.

k) Borrowing Costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalized during the period of time that is required to complete and
prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a
substantial period of time to get ready for their intended use or sale. Investment income earned on the
temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in
which they are incurred.

l) Government Grants

Grants from the government are recognized at their fair value where there is a reasonable assurance
that the grant will be received and the Company will comply with all attached conditions. Government grants
relating to income are deferred and recognized in the profit or loss over the period necessary to match them
with the costs that they are intended to compensate and presented within other income. Government grants
relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred
income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets
and presented within other income.

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Mar 31, 2016

1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with generally accepted accounting principles in India. The Company has prepared these financial statements to comply in all material respects with the Accounting Standards, notified under section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

2 USE OF ESTIMATES

The preparation of financial statements in conformity with Accounting Principles generally accepted in India, requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

3 Fixed Assets & Depreciation :

Due to application of schedule II to the Companies Act, 2013 with effect from April 1, 2014, the management has re-estimated useful life and residual values of all its fixed assets and determined separate useful life for each major asset, if they have useful life i.e. materially different from that of remaining asset. The management believes that the depreciation rates currently used fairly reflect its estimate of the useful life and residual value of fixed asset. If asset has zero remaining useful life on the date of Schedule II becoming effective, i.e. April 01, 2014, its carrying amount, after retaining any residual value, is charged to the opening balance of retained earnings. The carrying amount of other assets i.e., whose remaining useful life is not nil on April 01, 2014, is depreciated over their remaining useful life.

4 Inventories:

Raw Material At Cost on FIFO Basis

Work in Process At estimated cost including expenses attributable to production on

percentage completion basis/Net Realizable value, whichever is low.

Finished Goods At weighted average cost/ net realizable value whichever is low,

including Excise duty and all expenses attributable to production

By Products At net Realizable value inclusive of Excise Duty.

Stores and spares At Cost.

5 FOREIGN CURRENCY TRANSACTIONS

a. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

b. Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognized as exchange difference.

c. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

6 INVESTMENTS

Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Long-term investments are stated at cost.

7 RECOGNITION OF INCOME AND EXPENDITURE

Sale are recognized when goods are supplied and are recorded net of rebates and sale tax but inclusive of excise duty. Expenses are accounted for on accrual basis.

8 CURRENT & DEFERRED TAX

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that them is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.

Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

9 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision is recognized in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognized nor disclosed in the financial statements.

10 Accounting policies not specifically referred to are in consistent with generally accepted accounting principles.

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Mar 31, 2015

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared In accordance with generally accepted accounting principles in India. The Company has prepared these financial statements to comply in all material respects with the Account- ing Standards, notified under section 133 of the Companies Act. 2013 read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention The accounting policies adopted in the preparation of financial statements are consistent with those of previous year,

2 USE OF ESTIMATES

The preparation of financial statements in conformity with Accounting Principles generally accepted In India, requires judgements, estimates and assumptions to be made that affect the reported amount of assets and li- abilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

3 Fixed Assets & Depreciation

Due to application of schedule II to the Companies Act, 2013 with effect from April 1,2014, the management has re-estimated useful life and residual values of all Its fixed assets and determined separate useful life for each major asset, if they have useful life i.e. materially different from that of remaining asset. The management believes that the depreciation rates currently used fairly reflect its estimate of the useful life and residual value of fixed asset. If asset has zero remaining useful life on the date of Schedule II becoming effective, i.e. April 01, 2014, its carrying amount, atter retaining any residual value, is charged to the opening balance of retained earnings. The carrying amount of other assets I.e.. whose remaining useful life is not nil on April 01, 2014, is depreciated over their remaining useful life Uplo March 2014. the assets are depreciated on Straight Line Method as per Schedule XIV of the Companies Act, 1956

4 Inventories:

Raw Matena! At cost on FIFO basis

Work in Process At estimated cost including expenses attrib- utable to production on percentage completion basis/ Net Realizable value, whichever Is low.

Finished Goods At weighted average cost/net realizable value which ever is low, including Excise duty and all expenses attributable to production.

By Products At Net realisable value inclusive ol Excise Duty.

Stores and spares At Cost

5 FOREIGN CURRENCY TRANSACTIONS

a Transactions denominated in foreign currencies are recorded at the exchange rale prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

b. Monetary items denominated In foreign currencies at Ihe year end are restated at year end rates. In case of Hems which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference.

c. Any income or expense on account of exchange difference either on settlement or on translation is recognised In the Statement of Profit and Loss.

6 INVESTMENTS

Current investments are carried at lower of cost and quoted/fair value, computed category-wise.

Long-term investments are stated at cost.

7 RECOGNITION OF INCOME AND EXPENDITURE

Sale are recognised whe goods are supplied and are recorded net of rebates and sale tax bul inclusive of excise duty Expenses are accounted for an accrual basis.

8 CURRENT & DEFERRED TAX

Tax expense comprises of current tax and deferred tax. Current lax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of liming differences of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed deprecia- tion or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same.

Deferred tax assets and liabilities are measured using the tax rales and tax law that have been enacted or sub- stantively enacted by the Balance Sheet date.

9 PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision is recognised in the accounts when there is a present obfigation as a result of past event(s) and it is probable lhat an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognised nor disclosed in the financial statements.

10 CORPORATE SOCIAL RESPONSIBILITY (CSR)

In accordance with the clarification issued by the Institute of Chartered Accountants of India, vide FAQ's on the provisions of CSR applicability under the Companies Act, 2013, the Company has adopted the policy to charge CSR expenditure incurred as an appropriation of prdlfit with effect from April 0t. 2014.

11 Accounting policies not specificajly referred to are in consistent with generally accepted accounting principles.

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Mar 31, 2014

1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The Company prepares its accounts on accrual basis, except otherwise stated, in accordance with the normally accepted Accounting Principles and Accounting Standards & Relevant Provisions of The Companies Act, 1956. The financial statements are prepared on accrual basis under the historical cost convention and on the basis of going concern.

2 USE OF ESTIMATES

The preparation of financial statements in conformity with Accounting Principles generally accepted in India, requires judgements, estimates and assumptions to be made to that affect the reported amount of assets and liablities, disclosure of contingent liabili- ties on the date of the financial statements and the reported amount of revenues and expenses during the reporting periood. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised.

3 Fixed Assets & Depreciation : Fixed Assets are stated at their original cost of acquisition including all related expenses on acquisition and installation. Depreciation on fixed assets (includes composite depreciation charged on factory building and other building) has been provided on straight line method on pro-rata basis as per rates briefed in schedule - XIV of the Companies Act, 1956. Fixed Assets individ- ually costing less than Rs. 5,000/- are depreciated at the rate of 100% in the year of purchase.

4. Inventories

Raw Material : At cost on FIFO basis

Work in Process : At estimated cost including expenses attributable to production on percentage

completion basis/ Net Realizable value, whichever is low. Finished Goods : At weighted average cost/net realizable value which ever is low, including

Excise duty and all expenses attributable to production. By Products : At Net realisable value inclusive of Excise Duty.

Stores and spares : At cost

5 FOREIGN CURRENCY TRANSACTIONS

a. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

b. Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are cov- ered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference.

c. Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss.

6 INVESTMENTS

Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Long-term investments are stated at cost.

7 RECOGNITION OF INCOME AND EXPENDITURE

Sale are recognised when goods are supplied and are recorded net of rebates and sale tax but inclusive of excise duty. Expenses are accounted for on accrual basis.

8 CURRENT & DEFERRED TAX

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future tax- able income will be available to realise the same.

Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

9 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements.

10 Accounting policies not specifically referred to are in consistent with generally accepted accounting principles.

2. RIGHT OF SHAREHOLDERS

A) Each Shareholder is entitled to one vote per share.

B) Each Shareholder has the right in profit/surplus in proportion to amount paid up with respect to share holding.

C) In the event of winding up, the equity shareholders will be entitled to receive the remaining balance of assets, if any, in propor- tionate to their individual shareholding in the paid up equity capital of the company.

D) There is no change in the Number of Share outstanding at the beginning and at the end of the Financial year.

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Mar 31, 2012

1. The Company prepares its accounts on accrual basis, except otherwise stated, in accordance with the normally accepted • Accounting Principles and Accounting Standards & Relevant Provisions of The Companies Act, 1956.

2. Fixed Assets & Depreciation

a) Fixed Assets are stated at their original cost of acquisition including all related expenses on acquisition and installation. Depreciation on fixed assets (includes composite depreciation charged on factory building and other building) has been provided on straight line method on pro-rata basis as per rates briefed in schedule - XIV of the Companies Act, 1956. Fixed Assets individ- ually costing less than Rs. 5,000/- are depreciated at the rate of 100% in the year of purchase.

3. Inventories:

a) Raw Material : At cost on FIFO basis.

b) Work in Process: At estimated cost including expenses attributable to production on percentage completion basis/ Net Realizable value, whichever is low.

c) Finished Goods:- At weighted average cost/net realizable value which ever is low, including Excise duty and all expenses attribut- able to production.

d) By Products: At Net realisable value inclusive of Excise Duty.

e) Stores and spares: At cost

4. Sales are inclusive of Excise Duty.

5. Borrowing cost directly attributable to acquisition / construction of qualifying assets have been capitalized as part of cost of that asset.

6. Long term investments are carried at cost.

7. Contingent liabilities are not provided for and are disclosed by way of notes.

8. Accounting policies not specifically referred to are consistent with generally accepted accounting principles.

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Mar 31, 2010

1. The Company prepares its accounts on accrual basis, except otherwise stated, in accordance with the normally accepted accounting principles andAccounting Standards & Relevant Provisions of The Companies Act, 1956.

2. Fixed Assets & Depreciation

a) Fixed Assets are stated at their original cost of acquisition including all related expenses on acquisition and installation. Depreciation on fixed assets (includes composite depreciation charged on factory building and other building) has been pro- vided on straight line method on pro-rata basis as per rates briefed in schedule - XIV of the Companies Act, 1956. Fixed Assets individually costing less than Rs. 5,000/- are depreciated at the rate of 100% in the year of purchase.

3. Inventories:

a) Raw Material : At cost on FIFO basis.

b) Work in Process : At estimated cost including expenses attributable to production on percentage completion basis/ Net Realisable value, whichever is low.

c) Finished Goods:- At weighted average cost/net realisable value which ever is low, including Excise duty and all expenses attributable to production.

d) By Products: At Net realisable value inclusive of Excise Duty.

e) Stores and spares: At cost

4. Sales are inclusive of Excise Duty.

5. Gratuity Liability has been provided on the basis of acturial valuation.

6. Borrowing cost directly attributable to acquisition / construction of qualifying assets have been capitalized as part of cost of that asset.

7. Long term investments are carried at cost.

8. Contingent liabilities are not provided for and are disclosed by way of notes.

9. Accounting policies not specifically referred to are consistent with generally accepted accounting principles.