Accounting Policies of Sarda Proteins Ltd. Company

Mar 31, 2015

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) 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.

B. USE OF ESTIMATES

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income 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 the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

C. FIXED ASSETS

i. Fixed Assets are stated at historical cost less

depreciation. The cost comprises directly attributable costs such as freight, insurance and specific installation charges for bringing the assets to their working condition for intended use.

ii. Intangible Assets are recognized on the basis of recognition criteria as set out in Accounting Standard AS- 26 "Intangible Assets".

D. DEPRECIATION

Depreciation is provided on the basis of Straight Line Method as per the rates and in the manner prescribed in Schedule II of the Companies Act, 2013.

E. INVENTORIES

i. Finished Goods are valued at cost or net realizable value whichever is lower.

ii. Raw materials are valued at lower of cost or net realizable value (NRV).

iii. By products are valued at estimated realizable price.

iv. Stores and Spare parts are valued at/or under cost.

Cost for the purpose of inventory valuation is computed on FIFO (First In First Out) basis.

F. REVENUE RECOGINTION

Revenue is recognized on mercantile basis except for claims/insurance claims, which are accounted for on ascertainment basis in view of uncertainty involved in determining the final amount.

Interest income on fixed deposit with bank is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend income from investments is recognized when the Company's right to receive payment is established.

G. CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

H. SUBSIDIES

State subsidies are accounted for on receipt basis.

I. RETIREMENT BENEFITS

I. GRATUITY

Provision for Gratuity in the nature of defined benefit obligation is considered on the basis of revised Accounting Standard (AS-15) on actuarial valuation. The discount rate and other actuarial assumptions are based on the parameters defined in the Accounting Standard.

ii. PROVIDENT FUND

Company's contribution to the Provident Fund in the nature of Defined Contribution Plan is being charged to Statement of Profit & Loss Account in the year in which services are rendered by the employees.

iii. LEAVE ENCASHMENT

Short term benefits are provided for on accrual basis on the basis of management estimates.

J. TAXES ON INCOME

Income tax expense is accounted for in accordance with AS-22, "Accounting for Taxes on Income", as stated below:

i. Provision for current tax is made based on taxable income

for the year computed in accordance with provisions of the Income Tax Act, 1961.

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

iii. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws.

iv. Deferred tax asset is recognized and carried forward to the extent that there is a reasonable certainty of realization. In the case of unabsorbed depreciation and carry forward tax losses deferred tax asset is recognized, to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

K. IMPAIRMENT OF ASSETS

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss account and carrying amount of the asset is reduced to its recoverable amount. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

L. PROVISIONS, CONTINGENT LIABILITIES AND

CONTINGENT ASSETS

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation 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 in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

M. EARNINGS PER SHARE

Basic earnings per share are 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 and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

N. SEGMENT POLICIES

The Company's reporting segments are identified based on activities/products, risk and reward structure, organization structure and internal reporting systems.

O. INVESTMENTS

Investments intended to be held for more than a year are classified as long term investments. All other investments are classified as current investments. Current investments are stated at lower of cost and market/fair value. Long term investments are stated at cost. Decline in value of long term investments is recognized, if considered other than temporary.

P. BORROWING COSTS

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

Q. CASH FLOW STATEMENT

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

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Mar 31, 2014

A. BASIS OF PREPARATION

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except as stated otherwise. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

B. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Difference between the actual result and estimates are recognised in the period in which the results are known / materialized.

C. FIXED ASSETS

i. Fixed Assets are stated at historical cost less depreciation. The cost comprises directly attributable costs such as freight, insurance and specific installation charges for bringing the assets to their working condition for intended use.

ii. Intangible Assets are recognized on the basis of recognition criteria as set out in Accounting Standard AS-26 "Intangible Assets".

D. DEPRECIATION

Depreciation is provided on the basis of Straight Line Method as per the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

E. INVENTORIES

i. Finished Goods are valued at cost or net realizable value whichever is lower.

ii. Raw materials are valued at lower of cost or net realizable value (NRV).

iii. By products are valued at estimated realizable price.

iv. Stores and Spare parts are valued at/or under cost.

Cost for the purpose of inventory valuation is computed on FIFO (First In First Out) basis.

F. REVENUE RECOGINTION

Revenue is recognized on mercantile basis except for claims/insurance claims, which are accounted for on ascertainment basis in view of uncertainty involved in determining the final amount.

Interest income on fixed deposit with bank is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend income from investments is recognized when the Company''s right to receive payment is established.

G. CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

H. SUBSIDIES

State subsidies are accounted for on receipt basis.

I. RETIREMENT BENEFITS

i. GRATUITY

Provision for Gratuity in the nature of defined benefit obligation is considered on the basis of revised Accounting Standard (AS-15) on actuarial valuation. The discount rate and other actuarial assumptions are based on the parameters defined in the Accounting Standard.

ii. PROVIDENT FUND

Company''s contribution to the Provident Fund in the nature of Defined Contribution Plan is being charged to Statement of Profit & Loss Account in the year in which services are rendered by the employees.

iii. LEAVE ENCASHMENT

Short term benefits are provided for on accrual basis on the basis of management estimates.

TAXES ON INCOME

Income tax expense is accounted for in accordance with AS-22, "Accounting for Taxes on Income", as stated below:

i. Provision for current tax is made based on taxable income for the year computed in accordance with provisions of the Income

Tax Act, 1961.

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

iii. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws.

iv. Deferred tax asset is recognized and carried forward to the extent that there is a reasonable certainty of realization. In the case of unabsorbed depreciation and carry forward tax losses deferred tax asset is recognized, to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

K. IMPAIRMENT OF ASSETS

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss account and carrying amount of the asset is reduced to its recoverable amount. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

L. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if

i. the Company has a present obligation as a result of a past event,

ii. a probable outflow of resources is expected to settle the obligation and

iii. the amount of the obligation can be reliably estimated.

Contingent Liability is disclosed in the case of

i. a present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

ii. a possible obligation, unless the probability of outflow of resources is remote.

Contingent Assets are neither recognized nor disclosed.

Provisions, Contingent liabilities and Contingent assets are reviewed at each Balance Sheet date.

M. EARNINGS PER SHARE

Basic earnings per share are 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 and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

N. SEGMENT POLICIES

The Company''s reporting segments are identified based on activities/products, risk and reward structure, organization structure and internal reporting systems.

O. INVESTMENTS

Investments intended to be held for more than a year are classified as long term investments. All other investments are classified as current investments. Current investments are stated at lower of cost and market/fair value. Long term investments are stated at cost. Decline in value of long term investments is recognized, if considered other than temporary.

P. BORROWING COSTS

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

(iii) Terms / Rights attached to Equity Shares

The company has only one class of Equity Shares having a par value of Rs.10/= each. Each holder is entitled to one vote per share if fully paid up. No dividend is proposed by the Board of Directors in the ensuing Annual General Meeting. In the event of liquidation of the company, the holder of Equity Shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held and amount paid per share.

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Mar 31, 2013

A. BASIS OF PREPARATION

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except as stated otherwise. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

B. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Difference between the actual result and estimates are recognised in the period in which the results are known / materialized.

C. FIXED ASSETS

i. Fixed Assets are stated at historical cost less depreciation. The cost comprises directly attributable costs such as j freight, insurance and specific installation charges for bringing the assets to their working condition for intended use. Intangible Assets are recognized on the basis of recognition criteria as set out in Accounting Standard 26 "Intangible Assets".

D. DEPRECIATION

Depreciation is provided on the basis of Straight Line Method as per the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

E. INVENTORIES

i. Finished Goods are valued at cost or net realizable value whichever is lower. ii. Raw materials are valued at lower of cost or net realizable value. Hi. By products are valued at estimated realizable price. iv. Stores and Spare parts are valued at/or under cost.

Cost for the purpose of inventory valuation is computed on FIFO (First In First Out) basis.

F. REVENUE RECOGINTION

i. Revenue is recognized on mercantile basis except for claims/insurance claims, which are accounted for on I ascertainment basis in view of uncertainty involved in determining the final amount.

ii. Interest income on fixed deposit with bank is recognized on time proportion basis taking into account the amount outstanding and the rate applicable. iii. Dividend income from investments is recognized when the Company''s right to receive payment is established. G SUBSIDIES ! State subsidies are accounted for on receipt basis.

H. RETIREMENT BENEFITS

i. GRATUITY

Provision for Gratuity in the nature of defined benefit obligation is considered on the basis of revised Accounting Standard -15 on actuarial valuation. The discount rate and other actuarial assumptions are based on the parameters defined in the Accounting Standard. ii. PROVIDENT FUND Company''s contribution to the Provident Fund in the nature of Defined Contribution Plan is being charged to Statement of Profit & Loss in the year in which services are rendered by the employees.

iii. LEAVE ENCASHMENT Short term benefits are provided for on accrual basis on the basis of management estimates.

I. TAXES ON INCOME

Income tax expense is accounted for in accordance with AS-22, "Accounting for Taxes on Income", as stated below: i. Provision for current tax is made based on taxable income for the year computed in accordance with provisions of the Income Tax Act, 1961.

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

iii. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws.

iv. Deferred tax asset is recognized and carried forward to the extent that there is a reasonable certainty of realization. In the case of unabsorbed depreciation and carry forward tax losses deferred tax asset is recognized, to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

J. IMPAIRMENT OF ASSETS

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss and carrying amount of the asset is reduced to its recoverable amount. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased. K. EARNINGS PER SHARE

Basic earnings per share are 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 and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. L. SEGMENT POLICIES

The Company''s reporting segments are identified based on activities/products, risk and reward structure, organization structure and internal reporting systems. M. INVESTMENTS

Investments intended to be held for more than a year are classified as long term investments. All other investments are classified as current investments. Current investments are stated at lower of cost and market/fair value. Long term investments are stated at cost. Decline in value of long term investments is recognized, if considered other than temporary. N. BORROWING COSTS

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. O. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if

i. the Company has a present obligation as a result of a past event,

ii. a probable outflow of resources is expected to settle the obligation and

iii. the amount of the obligation can be reliably estimated. Contingent Liability is disclosed in the case of i. a present obligation arising from the past event, when it is not probable that an utflow of resources will be required to settle the obligation. ii. a possible obligation, unless the probability of outflow of resources is remote. Contingent Assets are neither recognized nor disclosed.

Provisions, Contingent liabilities and Contingent assets are reviewed at each Balance Sheet date. P. CASH AND CASH EQUIVALENTS Cash and cash equivalents comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

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Mar 31, 2012

A. BASIS OF PREPARATION

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except as stated otherwise. The accounting policies have been consistently applied by the Company and are consistent with those used Ih the previous year.

B. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Difference between the actual result and estimates are recognised in the period in which the results are known / materialized.

C. PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

During the year ended March 31, 2012, the revised schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

D. FIXED ASSETS

i. Fixed Assets are stated at historical cost less depreciation. The cost comprises directly attributable costs such as freight, insurance and specific installation charges for bringing the assets to their working condition for intended use.

ii. Intangible Assets are recognized on the basis of recognition criteria as set out in Accounting Standard AS-26 "Intangible Assets".

E DEPRECIATION

Depreciation is provided on the basis of Straight Line Method as per the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

F. INVENTORIES

i. Finished Goods are valued at cost or net realizable value whichever is lower.

ii. Raw materials are valued at lower of cost or net realizable value (NRV).

iii. By products are valued at estimated realizable price.

iv. Stores and Spare parts are valued at/or under cost.

Cost for the purpose of inventory valuation is computed on FiFO (First In First Out) basis.

G. REVENUE RECOGINTION

Revenue is recognized on mercantile basis except for claims/insurance claims, which are accounted for on ascertainment basis in view of uncertainty involved in determining the final amount.

Interest income on fixed deposit with bank is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend income from investments is recognized when the Company's right to receive payment is established.

H. CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

I. SUBSIDIES

State subsidies are accounted for on receipt basis.

J. RETIREMENT BENEFITS

i. GRATUITY

Provision for Gratuity in the nature of defined benefit obligation is considered on the basis of revised Accounting Standard (AS-15) on actuarial valuation. The discount rate and other actuarial assumptions are based on the parameters defined in the Accounting Standard.

ii. PROVIDENT FUND

Company's contribution to the Provident Fund in the nature of Defined Contribution Plan is being charged to Statement of Profit & Loss Account in the year in which services are rendered by the employees.

iii. LEAVE ENCASHMENT

Short term benefits are provided for on accrual basis on the basis of management estimates.

K. TAXES ON INCOME

Income tax expense is accounted for in accordance with AS-22, "Accounting for Taxes on Income", as stated below:

i. Provision for current tax is made based on taxable income for the year computed in accordance with provisions of the Income Tax Act, 1961.

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

iii. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws.

Deferred tax asset is recognized and carried forward to the extent that there is a reasonable certainty of realization. In the case of unabsorbed depreciation and carry forward tax losses deferred tax asset is recognized, to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

L. IMPAIRMENT OF ASSETS

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss account and carrying amount of the asset is reduced to its recoverable amount. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if

i. the Company has a present obligation as a result of a past event,

ii. a probable outflow of resources is expected to settle the obligation and

iii. the amount of the obligation can be reliably estimated. Contingent Liability is disclosed in the case of

i. a present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

ii. a possible obligation, unless the probability of outflow of resources is remote.

Contingent Assets are neither recognized nor disclosed.

Provisions, Contingent liabilities and Contingent assets are reviewed at each Balance Sheet date.

N. EARNINGS PER SHARE

Basic earnings per share are 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 and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

O. SEGMENT POLICIES

The Company's reporting segments are identified based on activities/products, risk and reward structure, organization structure and internal reporting systems.

P. INVESTMENTS

Investments intended to be held for more than a year are classified as long term investments. All other investments are classified as current investments. Current investments are stated at lower of cost and market/fair value. Long term investments are stated at cost Decline in value of long term investments is recognized, if considered other than temporary,

R. BORROWING COSTS

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

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Mar 31, 2010

I. General

The accounts have been drawn up on historical cost convention and on the basis of applicable Accounting standards as notified under the Companies (Accounting Standards) Rules, 2006 and disclosure requirements of Schedule V! of the Companies Act. 1956.

ii Fixed Assets

Fixed Assets are stated at historical cost less depreciation. The cost comprises directly attributable costs such as freight, insurance and specific installation charges for bringing the assets to their working condition for intended use.

iii Depreciation

Depreciation is provided on the basis of straight-line method as per the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

iv Inventory

a. Finished Goods are valued at cost or market value whichever is lower.

b. Raw materials are valued at lower of cost or net realisable value.

c. By-Products are vaiued at estimated realisable price.

d. Stores and Spare parts are valued at or under cost.

Cost for the purpose of inventory valuation is computed on weighted average basis. v Revenue Recognition Revenue is recognised on mercantile basis including marine insurance except for claims / insurance claims, which are accounted for on ascertainment basis in view of uncertainty involved in determining the final amount.

vi Subsidies

State Subsidies are accounted for on receipt basis,

vii Retirement Benefits and leave encashment

a. Gratuity- Provision for Gratuity in the nature of defined benefit obligation is considered on the basis of revised Accounting Standard (AS-15) on actuarial valuation. The discount rate and other actuarial assumptions are based on the paramenters defined in the Accounting Standared.

b. Provident Fund - Companys contribution to the Provident Fund in the nature of Defined Contribution Plan are being charged to the Profit & Loss Account in the year in which services are rendered by the employees.

C. Leave Encashment - Short term benefits are provided for on accrual basis on the basis of Management estimates.

viii Income Tax Provision of current income tax is made considering various allowances and benefits available to the company under the provisions of income tax laws. In pursuance of Accounting Standard AS - 22 Accounting for Taxes on Income, deferred tax is recognized on timing difference arising between book income and taxable income to the extent such timing differences are capable of reversal in one or more subsequent periods. Deferred Tax Asset on account of unabsorbed losses and depreciation are recog- nized only to the extent thai there is a virtual certainty of sufficient future taxable income available to realize such assets.

ix Intangible Assets

Intangible Assets are recognised on the basis of recognition criteria as set out in Accounting Standard AS -26 Intangible Assets issued by the Institute of Chartered Accountants of India.

x Impairment of Assets

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss account and carrying amount on the asset is reduced to its recoverable amount. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life. Reversal of impairment losses recognized in prior year is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

xi Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised for liabilities that can be measured by using a substantial degree of estimation, if

a) the Company has a present obligation as a result of a past event,

b) a probable outflow of resources is expected to settle the obligation and

c) the amount of the obligation can be reliably estimated.

Contingent Liability is disclosed in the case of

a) a present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) a possible obligation, unless the probability of outflow of resources is remote.

Contingent Assets are neither recognised nor disclosed.

Provisions, Contingent liabilities and Contingent assets are reviewed at each Balance Sheet date.

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Mar 31, 2009

I. General

The accounts have been drawn up on historical cost convention and on the basis of applicable accounting standards and disclosure requirements of Schedule VI of the Companies Act. 1956.

ii Fixed Assets

Fixed Assets are stated at historical cost Jess depreciation.

iii Depreciation

Depreciation is provided on the basis of straight-line method as per the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

iv Inventory

a. Finished Goods are valued at cost or market value whichever is lower.

b. Raw materials are valued at lower of cost or net realisable value.

c. By-Products are valued at estimated realisable price.

d. Stores and Spare parts are valued at or under cost.

v Revenue Recognition

Revenue is recognised on mercantile basis including marine insurance except for claims / insurance claims, which are accounted for on ascertainment basis.

vi Subsidies

State Subsidies are accounted for on receipt basis.

vii Retirement Benefits and leave encashment

a. Gratuity- Provision for Gratuity in the nature of defined benefit obligation is considered on the basis of revised Accounting Standard (AS-15) on actuarial valuation. The discount rate and other actuarial assumptions are based on the paramenters defined in the Accounting Standared.

b. Provident Fund - Companys contribution to the Provident Fund in the nature of Defined Contribution Plan are being charged to the Profit & Loss Account.

C. Leave with Wages- Short term benefits are provided for on accrual basis on the basis of Management estimates.

viii Income Tax

Provision of current income tax is made considering various allowances and benefits available to the company under the provisions of income tax laws. In pursuance of Accounting Standard AS - 22 Accounting for Taxes on Income issued by the Institute of Chartered Accounts of India, deferred tax is recognised on timing differences arising between book income and taxable income to the extent such timing differences are capable of reversal in one or more subsequent periods. Deferred tax assets on account of unabsorbed taxes and depreciation are recognised only to the extent that there is a virtual certainty of sufficient future taxable income available to realise such assets.

ix Miscellaneous Expenditure

Share issue expenses and preliminary expenses are written off over ten years.

x Intangible Assets

Intangible Assets are recognised on the basis of recognition criteria as set out in Accounting Standard AS -26 Intangible Assets issued by the Institute of Chartered Accountants of India!

xi Impairment of Assets

Impairment loss is recognized wherever the carrying amount of an asset is- in excess of its recoverable amount and the same is recognized as an. expense in the statement of profit and loss account and carrying amount on the asset is reduced to its recoverable amount. Post impairment, depreciation is provided on the revised carrying value of the asset over its remaining useful life. Reversal" of impairment losses recognized in prior year is recorded when there is an indication that the impairment losses recognized for the asset no. longer exist or have decreased.

xii Contingent Liabilities

Contingent Liabilities, if material are disclosed by way of notes.

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Mar 31, 2004

I. General

The accounts have been drawn upon historical cost convention and on the basis of applicable accounting standards and disclosure requirements of Schedule VI of the Companies Act, 1956.

ii. Fixed Assets

Fixed Assets are stated at historical cost less depreciation.

iii. Depreciation

Depreciation is provided on the basis of straight-line method as per the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

iv. Inventory

a. Finished Goods are valued at cost or market value whichever is lower.

b. Raw materials are valued at lower of cost or net realisable value.

c. By-Products are valued at estimated realisable price.

d. Stores and spare parts are valued at or under cost.

v. Revenue Recognition

Revenue is recognised on mercantile basis except for claims/ insurance claims, which are accounted for on ascertainment basis.

vi. Subsidies

State Subsidies are accounted for on receipt basis.

vii. Retirement Benefits

Provision for gratuity are accounted as per AS-15 on accrual basis.

viii. Income Tax

Provision of current income tax is made considering various allowances and benefits available to the company under the provisions of income tax laws. In pursuance of Accounting Standard AS-22 Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India, deferred tax is recognised on timing differences arising between book income and taxable income to the extent such timing differences are capable of reversal in one or more subsequent periods. Deferred tax assets on account of unabsorbed taxes and depreciation are recognised only to the extent that there is a virtual certainty of sufficient future taxable income available to realise such assets.

ix. Miscellaneous Expenditure

Share issue expenses and preliminary expenses are written off over ten years.

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Mar 31, 2003

I. General

The accounts have been drawn upon historical cost convention and on the basis of applicable accounting standards and disclosure requirements of Schedule VI of the Companies Act, 1956.

ii. Fixed Assets

Fixed Assets are stated at historical cost less depreciation.

iii. Depreciation

Depreciation is provided on the basis of straight-line method as per the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

iv. Inventory Valuation

a. Finished Goods are valued at cost or market value whichever is lower.

b. Raw materials are valued at lower of cost or net realisable value.

c. Stores and spare parts are valued at or under cost.

d. By-Products are valued at estimated realisable price.

v. Revenue Recognition

Revenue is recognised on mercantile basis except for claims/ insurance claims, which are accounted for on ascertainment basis.

vi. Subsidies

State Subsidies are accounted for on receipt basis.

vii. Retirement Benefits

Provision for gratuity is made on accrual basis.

viii. Taxes on Income

Provision of current income tax is made considering various allowances and benefits available to the company under the provisions of income tax laws. In pursuance of Accounting Standard AS-22 Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India, deferred tax is recognised on timing differences arising between book income and taxable income to the extent such timing differences are capable of reversal in one or more subsequent periods. Deferred tax assets on account of unabsorbed taxes and depreciation are recognised only to the extent that there is a virtual certainty of sufficient future taxable income available to realise such assets.

ix. Miscellaneous Expenditure

Share issue expenses and preliminary expenses are written off over ten years.

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Mar 31, 2002

I. General

The accounts have been drawn upon historical cost convention and on the basis of applicable accounting standards and disclosure requirements of Schedule VI of the Companies Act, 1956.

ii. Fixed Assets

Fixed Assets are stated at historical cost less depreciation.

iii. Depreciation

Depreciation is provided on the basis of straight-line method as per the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. iv. Inventory Valuation

a. Finished Goods are valued at cost or market value whichever is lower.

b. Raw materials are valued at lower of cost or net realisable value.

c. Stores and spare parts are valued at or under cost.

d. By-Products are valued at estimated realisable price.

v. Revenue Recognition

Revenue is recognised on mercantile basis except for claims/ insurance claims, which are accounted for on ascertainment basis.

vi. Subsidies

State Subsidies are accounted for on receipt basis.

vii. Taxes on Income

Provision of current income tax is made considering various allowances and benefits available to the company under the provisions of income tax laws.

In pursuance of Accounting Standard AS-22 Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India, deferred tax is recognised on timing differences arising between book income and taxable income to the extent such timing differences are capable of reversal in one or more subsequent periods. Deferred tax assets on account of unabsorbed taxes and depreciation are recognised only to the extent that there is a virtual certainty of sufficient future taxable income available to realise such assets.

viiil. Miscellaneous Expenditure

Share issue expenses and preliminary expenses are written off over ten years.