Accounting Policies of Thrive Future Habitats Ltd. Company

Mar 31, 2025

COMPANY INFORMATION

Ador Multi Products Limited (''the Company'') was incorporated in India on July 23, 1948 under the provisions of the Companies Act applicable in India and is a Toiletries preparation & Cosmetics organisation that operates on the Manufacturing of cosmetics with its clients in recommending. The Company is dedicated to the supply of products, services of Lotions, Hand sanitizers, shampoo needs of its end-users under the broad of ''Life enhancement. The Company is a public limited company [CIN: L85110MH1948PLC310253] domiciled in India and is listed on the Bombay Stock Exchange (BSE). The registered at Ador House, 5th Floor, 6 K Dubash Marg, Fort, Mumbai, Mumbai City, Maharashtra, India, 400001.

BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (''The Act''") read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

These financial statements have been prepared on a historical cost and accrual basis, except for the following :

a) certain financial assets and liabilities and defined benefit plan assets and liabilities, that are measured at fair value.

b) Employee defined benefit plans , recognized at the net total of the fair value of plan asset in the present value of the defined benefit obligation.

c) Financial Statements are presented in Rs. which is the functional currency of the company and all values are rounded to the nearest lakhs except when otherwise indicated.

1. Significant accounting policies

a. Investment in subsidiaries and joint ventures

Subsidiaries are entities that are controlled by the Company. The Company controls an entity when the Company is exposed, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the investee. Investments in subsidiaries are accounted at cost less impairment, if any.

A Joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Investments in joint ventures are accounted at cost less impairment, if any.

Investments in subsidiary and joint venture are accounted at cost less impairment ,if any, in accordance with Ind AS 27 -Separate financial statements.Refer to note 2.2 for the list of investments.

b. Property plant and equipment

Freehold Land is carried at historical cost. All other items of property, plant and equipment are states at historical cost less depreciation. Historical cost are stated at cost of acquisition inclusive of all attributable cost of bringing the assets to their working condition, accumulated depreciation and accumulated impairment losses, if any.

Subsequent expenditure related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Items of property, plant and equipment that have been retired from active use and are held for disposal are stated at the lower of their net book value and net realisable value and are shown separately in the financial statements. Any expected loss is recognised immediately in the Statement of Profit and Loss.

Losses arising from the retirement of, and gains or losses arising from disposal of tangible assets which are carried at cost are recognised in the Statement of Profit and Loss.

Schedule II to the Companies Act, 2013 prescribes useful lives for property, plant and equipments and allows Companies to use higher/lower useful lives and residual values if such useful lives and residual values can be technically supported and justification for difference is disclosed in the financial statements. Considering the applicability of Schedule II, the management has re-estimated useful life and residual values of all its fixed assets. The management believes that the depreciation rates currently used fairly reflect its estimate of the useful lives and residual values of property, plant and equipment.

The Company provides depreciation on all assets (except leasehold land) on straight line basis and the Leasehold land is being amortised on straight line basis over the period of lease.

Assets not yet ready for use are recognised as capital work in progress.

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

c. Intangible Assets (Including Capital Work in Progress)

Intangible assets relating to product development are recorded at actual cost incurred on the development of products and are capitalised once the products receive approval from relevant authorities and the same are carried at cost less accumulated amortisation.

Intangible assets are amortised on a straight line basis over their estimated useful life of approximately four years, so as to effectively depreciate the assets over the specified useful life. Intangible assets are derecognised on disposal or when no future economic benefits are expected from its use or disposal.

Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Statement of Profit and Loss.

d. Impairment of Non-Financial Assets

The carrying amount of the non-financial assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal /external factors. An impairment loss , if any, is recognised in the statement of profit and loss whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. The recoverable amount of the assets (or where applicable, that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use.

After impairment, depreciation / amortisation is provided on the revised carrying amount of the asset over its remaining useful life.

A previously recognised impairment loss, if any, is increased or reversed depending on changes in circumstances. However, the carrying value after reversal ,if any, is not increased beyond the carrying value that would have prevailed by charging usual depreciation / amortisation if there were no impairment.

f. Investments and financial assets Classification

The company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

• those measured at amortised cost.

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

The company reclassifies debt investments when and only when its business model for managing those assets changes. Measurement

At initial recognition, the company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

Measurement of debt instruments

Subsequent measurement of debt instruments depends on the company''s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the company classifies its debt instruments:

• Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

• Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

• Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in profit or loss and presented net in the statement of profit and loss within other gains/(losses) in the period in which it arises. Interest income from these financial assets is included in other income.

Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables only, the company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

De-recognition of financial assets

A financial asset is derecognised only when

• The company has transferred the rights to receive cash flows from the financial asset or

• retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

g. Borrowings and other financial liabilities

Borrowings and other financial liabilities if any are initially recognised at fair value (net of transaction costs incurred). Difference between the fair value and the transaction proceeds on initial stage, if any, is recognised as an asset / liability based on the underlying reason for the difference. All financial liabilities , if any, are measured at amortised cost using the effective interest rate method

h. Inventories

(a) Traded goods, raw materials and packing materials: At cost or net realisable value, whichever is lower.

(b) Process stock: At cost or estimated realisable value, whichever is lower.

(c) Finished goods: At cost or net realisable value, whichever is lower and are inclusive of cenvat thereon.

i. Revenue Recognition

Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. The amounts recognised as sale is exclusive of goods and service tax.

Income from conversion job is recognised on its completion and on its acceptance by the customers.

j. Other Income

Interest income for all debt instruments, is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. 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.

Dividend are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the company, and the amount of the dividend can be measured reliably.

Management and marketing fees are recognised as and when the services are rendered.

k. Retirement and Other Employee Benefits

Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial valuation basis which is determined based on project unit credit method and the charge for current year is debited to the Statement of Profit and Loss. Actuarial gains and losses, if any, arising on the measurement of defined benefit obligation is charged/ credited to other comprehensive income.

Leave encashment: Liabilities are determined at the end of the year as per the management estimates and policy framed by the company and the charge for the current year is debited to the Statement of Profit and Loss

Presentation and disclosure : For the purpose of presentation ,the allocation between the short term and the long term provisions has been made as determined by a actuary.

Superannuation: The Company contributes towards superannuation fund, for future payment of retirement benefits to employees. Thecontributions accruing during each year are charged to the Statement of Profit and Loss.

Provident fund: Employer''s contribution to provident fund is charged to the Statement of Profit and Loss.

l. Segment Reporting

Operating segments , if any, are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.The Board of directors has been identified as being the chief operating decision maker.The board of directors of Ador Multi Products Limited assesses the financial performance and position of the group, and makes strategic decisions

m. Taxation

Current tax : The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period.

Deferred Tax : Deferred income tax is provided in full, using the balance sheet approach, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

n. Leases

The determination of whether an arrangement is a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Company as a lessee: Lease in which a significant portion of the risks and rewards of ownership of an asset are classified as operating leases. Lease Payments is recognised in the statement of profit and loss on a straight - line basis over the lease term.

Company as a lessor: Lease in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease Income is recognised in the statement of profit and loss on a straight - line basis over the lease term. Costs, including depreciation, are recognised as an expense in the statement of profit and loss.

o. Foreign Currency Transactions

Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions. Monetary assets and liabilities as at the Balance Sheet date are translated at the rates of exchange prevailing at the date of the Balance Sheet. Gains and losses arising on account of differences in foreign exchange rates on settlement/ translation of monetary assets and liabilities are recognised in the Statement of Profit and Loss. Non-monetary foreign currency items are carried at cost.

p. Provisions and Contingent Liabilities

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

q. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss (excluding other comprehensive income) for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events such as bonus issue, bonus element in a right issue, shares split and reserve share splits (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss (excluding other comprehensive income) for the year attributable to equity share holders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

r. Post-sale-client support and warranties

The Company provides its clients with a fixed-period warranty for corrections of errors and support on all its fixed-price, fixed-time frame contracts. Costs associated with such support services are accrued at the time when related revenues are recorded and included in the Statement of Profit and Loss.

s. Cash flow statement

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of 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. Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of 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.

t. Critical estimates and judgements

The preparation of Financial Statements in conformity with Ind AS which requires management to make estimates, assumptions and exercise judgement in applying the accounting policies that affect the reported amount of assets, liabilities and disclosure of contingent liabilities at the date of financial statements and the reported amounts of income and expenses during the year.

The Management believes that these estimates are prudent and reasonable and are based upon the Management''s best knowledge of current events and actions. Actual results could differ from these estimates and differences between actual results and estimates are recognised in the periods in which the results are known or materialised.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.

Defined benefit obligation: The cost of post-employment benefits is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, expected rate of return on assets, future salary increases and mortality rates. Due to the long term nature of these plans such estimates are subject to significant uncertainty.

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Mar 31, 2024

a. Investment in subsidiaries and joint ventures_

Subsidiaries are entities that are controlled by the Company. The Company controls an entity when the Company is exposed,
or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its
power over the investee. Investments in subsidiaries are accounted at cost less impairment, if any.

A Joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net
assets of the joint arrangement. Investments in joint ventures are accounted at cost less impairment, if any.

Investments in subsidiary and joint venture are accounted at cost less impairment ,if any, in accordance with Ind AS 27 -
Separate financial statements.

Refer to note 2.2 for the list of investments.

b. Property plant and equipment_

Freehold Land is carried at historical cost. All other items of property, plant and equipment are states at historical cost less
depreciation. Historical cost are stated at cost of acquisition inclusive of all attributable cost of bringing the assets to their
working condition, accumulated depreciation and accumulated impairment losses, if any.

Subsequent expenditure related to an item of tangible asset are added to its book value only if they increase the future benefits
from the existing asset beyond its previously assessed standard of performance.

Items of property, plant and equipment that have been retired from active use and are held for disposal are stated at the lower
of their net book value and net realisable value and are shown separately in the financial statements. Any expected loss is
recognised immediately in the Statement of Profit and Loss.

Losses arising from the retirement of, and gains or losses arising from disposal of tangible assets which are carried at cost are
recognised in the Statement of Profit and Loss.

Schedule II to the Companies Act, 2013 prescribes useful lives for property, plant and equipments and allows Companies to
use higher/lower useful lives and residual values if such useful lives and residual values can be technically supported and
justification for difference is disclosed in the financial statements. Considering the applicability of Schedule II, the
management has re-estimated useful life and residual values of all its fixed assets. The management believes that the
depreciation rates currently used fairly reflect its estimate of the useful lives and residual values of property, plant and
equipment.

The Company provides depreciation on all assets (except leasehold land) on straight line basis and the Leasehold land is
being amortised on straight line basis over the period of lease.

Assets not yet ready for use are recognised as capital work in progress.

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

c. Intangible Assets(Including Capital Work in Progress)_

Intangible assets relating to product development are recorded at actual cost incurred on the development of products and are
capitalised once the products receive approval from relevant authorities and the same are carried at cost less accumulated
amortisation.

Intangible assets are amortised on a straight line basis over their estimated useful life of approximately four years, so as to
effectively depreciate the assets over the specified useful life. Intangible assets are derecognised on disposal or when no future
economic benefits are expected from its use or disposal

Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net
disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Statement of Profit and
Loss.

d. Impairment of Non-Financial Assets_

The carrying amount of the non-financial assets are reviewed at each Balance Sheet date if there is any indication of
impairment based on internal /external factors. An impairment loss , if any, is recognised in the statement of profit and loss
whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. The recoverable amount of
the assets (or where applicable, that of the cash generating unit to which the asset belongs) is estimated as the higher of its net
selling price and its value in use.

After impairment, depreciation / amortisation is provided on the revised carrying amount of the asset over its remaining useful
life.

A previously recognised impairment loss, if any, is increased or reversed depending on changes in circumstances. However,
the carrying value after reversal ,if any, is not increased beyond the carrying value that would have prevailed by charging usual
depreciation / amortisation if there were no impairment.

f. Investments and financial assets_

Classification

The company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

• those measured at amortised cost.

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the
cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For
investments in debt instruments, this will depend on the business model in which the investment is held. For investments in
equity instruments, this will depend on whether the company has made an irrevocable election at the time of initial recognition
to account for the equity investment at fair value through other comprehensive income.

The company reclassifies debt investments when and only when its business model for managing those assets changes.
Measurement

At initial recognition, the company measures a financial asset at its fair value plus, in the case of a financial asset not at fair
value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction
costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are
solely payment of principal and interest.

Measurement of debt instruments

Subsequent measurement of debt instruments depends on the company’s business model for managing the asset and the cash
flow characteristics of the asset. There are three measurement categories into which the company classifies its debt
instruments:

• Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently
measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is
derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest
rate method.

• Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows
and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are
measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through
OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which
are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised
in OCI is reclassified from equity to profit or loss and recognised in other gains/ (losses). Interest income from these financial
assets is included in other income using the effective interest rate method.

• Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair
value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or
loss and is not part of a hedging relationship is recognised in profit or loss and presented net in the statement of profit and loss
within other gains/(losses) in the period in which it arises. Interest income from these financial assets is included in other
income.

Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost
and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase
in credit risk.

For trade receivables only, the company applies the simplified approach permitted by Ind AS 109 Financial Instruments,
which requires expected lifetime losses to be recognised from initial recognition of the receivables.

De-recognition of financial assets

A financial asset is derecognised only when

• The company has transferred the rights to receive cash flows from the financial asset or

• retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the
cash flows to one or more recipients.

g. Borrowings and other financial liabilities_

Borrowings and other financial liabilities if any are initially recognised at fair value (net of transaction costs incurred).
Difference between the fair value and the transaction proceeds on initial stage, if any, is recognised as an asset / liability based
on the underlying reason for the difference.

All financial liabilities , if any, are measured at amortised cost using the effective interest rate method

h. Inventories_

(a) Traded goods, raw materials and packing materials: At cost or net realisable value, whichever is lower.

(b) Process stock: At cost or estimated realisable value, whichever is lower.

(c) Finished goods: At cost or net realisable value, whichever is lower and are inclusive of cenvat thereon.

i. Revenue Recognition_

Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. The
amounts recognised as sale is exclusive of goods and service tax.

Income from conversion job is recognised on its completion and on its acceptance by the customers.

j. Other Income_

Interest income for all debt instruments , is recognised using the effective interest rate method. The effective interest rate is
the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross
carrying amount of a financial asset. 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.

Dividend are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic
benefits associated with the dividend will flow to the company, and the amount of the dividend can be measured reliably.

Management and marketing fees are recognised as and when the services are rendered.

k. Retirement and Other Employee Benefits_

Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial valuation
basis which is determined based on project unit credit method and the charge for current year is debited to the Statement of
Profit and Loss. Actuarial gains and losses, if any, arising on the measurement of defined benefit obligation is charged/
credited to other comprehensive income.

Leave encashment: Liabilities are determined at the end of the year as per the management estimates and policy framed by
the company and the charge for the current year is debited to the Statement of Profit and Loss

Presentation and disclosure : For the purpose of presentation ,the allocation between the short term and the long term
provisions has been made as determined by a actuary.

Superannuation: The Company contributes towards superannuation fund, for future payment of retirement benefits to
employees. The

contributions accruing during each year are charged to the Statement of Profit and Loss.

Provident fund: Employer’s contribution to provident fund is charged to the Statement of Profit and Loss.

l. Segment Reporting_

Operating segments , if any, are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker.

The Board of directors has been identified as being the chief operating decision maker.

The board of directors of Ador Multi Products Limited assesses the financial performance and position of the group, and
makes strategic decisions

m. Taxation_

Current tax : The income tax expense or credit for the period is the tax payable on the current period’s taxable income based
on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences
and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the
reporting period.

Deferred Tax : Deferred income tax is provided in full, using the balance sheet approach, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax
liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted
for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time
of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred income tax is determined using tax
rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply
when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities
and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the
liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly
in equity, respectively.

n. Leases_

The determination of whether an arrangement is a lease is based on the substance of the arrangement at the inception of the
lease. The arrangement is a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the
arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Company as a lessee

Lease in which a significant portion of the risks and rewards of ownership of an asset are classified as operating leases. Lease
Payments is recognised in the statement of profit and loss on a straight - line basis over the lease term.

Company as a lessor

Lease in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as
operating leases. Assets subject to operating leases are included in fixed

assets. Lease Income is recognised in the statement of profit and loss on a straight - line basis over the lease term. Costs,
including depreciation, are recognised as an expense in the statement of profit and loss.

o. Foreign Currency Transactions_

Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions. Monetary assets
and liabilities as at the Balance Sheet date are translated at the rates of exchange prevailing at the date of the Balance Sheet.
Gains and losses arising on account of differences in foreign exchange rates on settlement/ translation of monetary assets and
liabilities are recognised in the Statement of Profit and Loss. Non-monetary foreign currency items are carried at cost.

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Mar 31, 2015

A) Basis of preparation:

i. These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India ('Indian GAAP') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.

ii. The financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial instruments which are measured at fair value.

b) Use of estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles in India requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabiiities (including contingent liabilities) and the reported incomes and expenses during the reporting period. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable and based upon management's best knowledge of current events and actions. However, actual results could differ from these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materalise.

c) Fixed assets:

Fixed assets are stated at cost, less accumulated depreciation / amortisation. Costs include all expenses incurred to bring the asset to its present location and condition.

Tangible assets

Tangible assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of tangible assets comprise its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets. Subsequent expenditure related to an item of tangible assets are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Intangible assets

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the assets to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variation attributable to the intangible assets.

d) Depreciation and amortization:

In respect of fixed assets acquired during the year, depreciation/ amortisation is charged on a straight line basis as per Schedule II of the Companies Act. For the assets acquired prior to April 1,2014, the carrying amount as on April 1,2014 is depreciated over the remaining useful life of the fixed assets.

e) Impairment

The Management periodically assesses using external and internal sources whether there is an indication that assets of concerned cash generating unit may be impaired. Impairment loss, if any, is provided as per Accounting Standard (AS-28) on Impairment of Assets.

f) Investments:

Long-term investments and current maturities of long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments, except for current maturities of long-term investments, comprising investments in mutual funds are stated at the lower of cost and fair value.

g) Employee benefits:

Employee benefits include contributions to gratuity fund, superannuation fund and provident fund and liability for compensated absences:

i. Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial basis and the amount is charged to the Statement of Profit & Loss.

ii. Superannuation: The Company contributes towards its Employees' Superannuation Fund, for future payment of retirement benefits to employees. The contributions accruing during each year are charged to the Statement of Profit and Loss.

iii. Leave encashment liabilities are determined by actuarial valuation done at the end of the year and the charge for the current year is debited to the Statement of Profit and Loss.

iv Employer's contribution to Provident fund is charged to the Statement of Profit and Loss.

h) Revenue recognition

i. Revenue from sale of goods is recognised when significant risks and rewards of ownership of the goods have been passed to the buyer which is generally at the time of dispatch of goods to the customers

ii. Income from Conversion job is recognized on its completion and on its acceptance by the customers.

iii. Revenue from traded goods is recognised on sale of materials.

iv. Dividends are recorded when the right to receive payment is established. Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

i) Taxation

i. Current taxation:

Provision for current tax is computed after considering tax allowances and exemptions.

ii. Minimum Alternate tax :

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the balance sheet if there is evidence that the Company will pay normal tax in the future and when the resultant asset can be measured reliably.

iii. Deferred tax:

Deferred tax assets & liabilities are measured using the current tax rates. When there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only to the extent that there is virtual certainty of realisation of deferred tax assets. Other deferred tax assets are recognised to the extent, there is reasonable certainty of realisation of deferred tax assets. Such deferred tax assets & other unrecognised deferred tax assets are re-assessed at each Balance Sheet date and the carrying value of the same are adjusted recognising the change in the value of each such deferred tax assets.

j) Foreign currency transactions:

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognised in the Statement of profit and loss.

k) Inventories

i. Trading goods - at cost or net realisable value, whichever is lower;

ii. Raw materials & packing materials - At cost or net realisable value, whichever is lower.

iii. Process stock - At cost or estimated realisable value, whichever is lower and

iv. Finished goods - At cost or net realisable value, whichever is lower and are inclusive of Cenvat thereon.

v. Cost is determined as per weighted average basis.

l) Provisions, contingent liabilities and contingent assets:

In accordance with the Accounting Standard AS - 29 issued by The Institute of Chartered Accountants of India:

i. Provisions are made for the present obligations where amount can be estimated reliably, and

ii. Contingent liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of the liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of the Company. Contingent assets are neither recognised nor disclosed in the financial statements.

m) Cash and cash equivalents:

Cash and cash equivalents comprises of the Company's cash and deposits with banks, balances in current accounts with banks, which also includes restricted bank balances [reported with adequate disclosures]

n) Cash flow statement:

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of 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. Cash flows from operating, investing and financing activities of the Company are segregated, accordingly.

o) Leases:

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vests with the lessor, are recognised as operating lease. Lease rentals under operating lease are recognised in the statement of profit and loss on a straight-line basis.

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Mar 31, 2014

Basis of preparation of the Financial Statements:

i The financial statements have been prepared in compliance with all material aspects with the Accounting Standards notified by the Companies (Accounting Standards) Rules 2006(as amended) and the relevant provisions of the Companies Act, 1956 read with General Circular No. 15/2013 dated 13th September 2013 issued by the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

ii Financial statements have been prepared on accrual basis under the historical cost convention.

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

iv The preparation of financial statements in confirmity with the generally accepted accounting principles in India requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabiiities (including contingent liabilities) and the reported incomes and expenses during the reporting period. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable and based upon management''s best knowledge of current events and actions. However, actual results could differ from these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materalise.

The significant accounting policies adopted in the preparation and presentation of these financial statements are:

A Revenue recognition:

i Revenue from sale of goods is recognised on transfer of significant risks and rewards of owndership of the goods have been passed to the buyer which is generally at the time of dispatch of goods to the customers. ii Income from Conversion job is recognized on its completion and on its acceptance by the customers. iii Dividend income is accounted for in the year in which the right to receive the same is established. iv Interest income is recognized using the time-proportion method, based on rates implicit in the transaction.

B Fixed assets:

Tangible assets shown under gross block are valued at cost of acquisition inclusive of inward freight, duties, taxes & other incidental expenses related to its acquisition. All such direct costs are capitalized until the tangible fixed assets are ready for use.

Intangible assets relating to product development are recorded at actual cost incurred on development of products and are capitalized once the products receives approvals from the relevant authorities and the same are carried at cost less accumulated amortisation.

C Depreciation and amortisation:

i Depreciation on tangible assets has been calculated in accordance with the revised Schedule XIV of the Companies Act, 1956, as under:

a At the Cosmetics unit, tangible assets (except vehicles) being depreciated on the straight line method. In respect of vehicles, the written down value method has been adopted.

b At the Trading division, tangible assets being depreciated on written down value method. ii Depreciation on additions to fixed assets during the current year is charged on prorata basis, for the period of use. iii Intangible assets:-

a Product development are amortised over their estimated useful lives, which are amortised over a period of four years

b Website development costs are capitalised & amortised over a period of four years.

D Impairment of assets:

The Management periodically assesses using external and internal sources whether there is an indication that assets of concerned cash generating unit may be impaired. Impairment loss, if any, is provided as per Accounting Standard (AS-28) on Impairment of Assets.

E Investments:

Investments are valued at cost.

F Inventories are valued as under:

i Trading goods - at cost or net realisable value, whichever is lower;

ii Raw materials & packing materials - At cost or net realisable value, whichever is lower.

iii Process stock - At cost or estimated realisable value, whichever is lower and

iv Finished goods - At cost or net realisable value, whichever is lower and are inclusive of Cenvat thereon.

v Cost is determined as per weighted average basis.

G Employee benefits:

Employee benefits include contributions to gratuity fund, superannuation fund and provident fund and liability for compensated absences:

i Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial basis and the amount is charged to the Statement of Profit & Loss.

ii Superannuation: The Company contributes towards its Employees'' Superannuation Fund, for future payment of retirement benefits to employees. The contributions accruing during each year are charged to the Statement of Profit and Loss.

iii Leave encashment liabilities are determined by actuarial valuation done at the end of the year and the charge for the current year is debited to the Statement of Profit and Loss.

iv Employer''s contribution to Provident fund is charged to the Statement of Profit and Loss.

H Foreign currency transactions:

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

Assets & liabilities in foreign currency are restated at the year-end exchange rates.

I Leases:

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the lessed assets, are classified are operating leases.

Lease rental payments under operating leases are recognized as an expense on a straight line basis over the term of lease in the Statement of Profit and loss.

J Taxes on income:

i Current taxation:

Provision for current tax is computed after considering tax allowances and exemptions.

ii Minimum Alternate tax :

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the balance sheet if there is evidence that the Company will pay normal tax in the future and when the resultant asset can be measured reliably.

iii Deferred tax:

Deferred tax assets & liabilities are measured using the current tax rates. When there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only to the extent that there is virtual certainty of realisation of deferred tax assets. Other deferred tax assets are recognised to the extent, there is reasonable certainty of realisation of deferred tax assets. Such deferred tax assets & other unrecognised deferred tax assets are re-assessed at each Balance Sheet date and the carrying value of the same are adjusted recognising the change in the value of each such deferred tax assets.

K Provisions, contingent liabilities and contigent assets:

In accordance with the Accounting Standard AS – 29 issued by The Institute of Chartered Accountants of India:

a provisions are made for the present obligations where amount can be estimated reliably, and

b contingent liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of the liabilities are disclosed for possible obligations arising out of uncertain events not wholly in control of the company. Contingent assets are neither recognised nor disclosed in the financial statements.

L Cash flow statement :

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of 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. Cash flows from operating, investing and financing activities of the Company are segregated, accordingly.

M Segment reporting policies:

The Company prepares the segment information in conformity with accounting polices adopting for preparing and presenting the financial statements of the Company.

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Mar 31, 2013

Basis of preparation of the Financial Statements:

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) in India and presented under the historical cost basis of accounting and evaluated on a going concern basis, with revenues recognized and expenses accounted for on their accrual to comply in all material aspects with the applicable Accounting Principles, the applicable Accounting Standards notified u/s. 211 (3C) of the Companies Act, 1956, other relevant provisions of the Companies Act, 1956 and the guidelines issued by the Securities and Exchange Board of India (SEBI).

Use of estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported balances of assets on the date of the financial statements and the reported amount of revenues and expenses during the . reporting period. Accounting estimates could change from period to period. Actual results could differ from these estimates. Appropriate changes in estimates are made as and when the Management becomes aware of changes in the circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which the changes are made and if material, their effects are disclosed in the notes to the financial statements.

Significant accounting policies adopted in the preparation and presentation of these financial statements are:

A. Revenue recognition:

i. Sales are recognized when goods are supplied and are recorded net of discounts. Sale revenues are presented net of value-added taxes in the Statement of Profit and Loss.

ii Income from conversion job is recognized on its completion and on its acceptance by the customers.

iii Dividend income is accounted for in the year in which the right to receive the same is established.

iy Interest income is recognized using the time-proportion retched, based on rates implicit in the transaction.

B. Fixed assets:

Tangible assets shown under gross block are valued at cost of acquisition inclusive of inward freight, duties, taxes and other incidental expenses related to its acquisition. All such direct costs are capitalized when the tangible fixed assets are ready for use.

Intangible assets relating to product development are recorded at actual cost incurred on development of products and are capitalized once the products receive approvals from the relevant authorities and the same are carried at cost less accumulated amortization.

C. Depreciation and amortization: .

i Depreciation on tangible assets have been calculated in accordance with the revised Schedule XIV of the Companies Act, 1956 as under:

a. At the cosmetics unit, tangible assets (except vehicles) being depreciated on straight line method. In respect of vehicles, written down value method has been adopted.

b. At the Trading division, tangible assets being depreciated on written down value method.

ii Depreciation on additions to fixed assets during the current year is charged on prorate basis, for the period of use.

iii Intangible assets are amortized over their estimated useful lives.

D. Impairment of assets: .

Impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. *

E. Investments:

Investments are valued at cost.

F. Inventories are valued as under:

i Trading goods - at cost or net realizable value, whichever is lower;

ii Raw materials and packing materials - At cost or net realizable value, whichever is lower.

iii Process stock - At cost or estimated realizable value, whichever is lower and

iv Finished goods - At cost or net realizable value, whichever is lower and are inclusive of canvas thereon. Note: Cost is determined on a weighted average basis.

G. Employee benefits: .

i Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial basis and the amount is charged to the Statement of Profit and Loss.

ii Superannuation: The Company contributes towards superannuation fund, for future payment of retirement benefits to employees. The contributions accruing during each year are charged to the Statement of Profit and Loss.

iii Leave encashment liabilities are determined by actuarial valuation done at the end of the year and the charge for the current year is debited to the Statement of Profit and Loss.

iv Employer''s contribution to Provident fund is charged to the Statement of Profit and Loss.

H. Foreign currency transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate on the date of transaction. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss. Assets and -Liabilities payable in foreign currencies are restated at the year-end exchange rates.

I. Leases:

Lease rental payments under operating leases are recognized as an expense on a straight line basis in the Statement of Profit and Loss over the lease term.

J. Taxes on income:

i Current tax:

Provision for current tax is computed after considering tax allowances and exemptions.

ii Minimum Alternate tax :

Minimum alternate tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income -tax liability, is recognized as an asset in the Balance Sheet if there is evidence that the Company will pay normal tax in the future and when the resultant asset can be measured reliably.

iii Deferred tax:

Provision for deferred taxation is made using the applicable rate of taxation, for all timing differences which arise during the year and are reversed in subsequent periods.

K. Provisions and contingent liabilities

Based on the best estimate of the Management, provisions are determined on the outflow of economic benefits which are required to settle the obligation as 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 that may, but probably will not; require an outflow of the Company''s resources.

L. Cash flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of 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. Cash flows from operating, investing and financing activities of the Company are segregated, accordingly.

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Mar 31, 2012

A. Revenue recognition:

i) Sales are recognized when goods are supplied and are recorded net of discounts. Sale revenues are presented net of value-added taxes in its Statement of profit and loss.

ii) Income from Conversion job is recognized on its completion and on its acceptance by the customers.

Ni) Dividend income is accounted for in the year in which the right to receive the same is established.

iv) Interest income is recognized using the time-proportion method, based on rates implicit in the transaction.

B. Fixed assets:

Tangible assets shown under gross block are valued at cost of acquisition inclusive of inward freight, duties, taxes & other incidental expenses related to its acquisition. All such direct costs are capitalized until the tangible fixed assets are ready for use. Intangible assets relating to product development are recorded at actual cost incurred on development of products and are capitalized once the products receive approval from the relevant authorities and the same are carried at cost less accumulated depreciation.

C. Depreciation and amortization:

i) Depreciation on tangible assets has been calculated in accordance with the revised Schedule XIV of the Companies Act, 1956 as under:.

a) At the Cosmetics unit, tangible assets (except vehicles) being depreciated on straight line method. In respect of vehicles, the written down value method has been adopted.

b) At the Trading division, tangible assets being depreciated on written down value method.

ii) Depreciation on additions to fixed assets during the current year is charged on prorata basis, for the period of use.

iii) Intangible assets are amortized over their estimated useful lives.

D. Impairment of assets:

Impairment loss is charged to the Statement of Profit & Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

E Investments:

Investments are valued at cost.

F. Inventories are valued as under:

i) Trading goods - at cost or net realizable value, whichever is lower;

ii) Raw materials & packing materials - At cost or net realizable value, whichever is lower

iii) Process stock - At cost or estimated realizable value, whichever is lower and

iv) Finished goods - At cost or net. realizable value, whichever is lower and are inclusive of Cenvat thereon. Cost is determined on a weighted average basis.

G. Employee benefits:

i) Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial basis and the amount is charged to the Statement of Profit & Loss.

ii) Superannuation: The Company contributes towards its Employees' Superannuation Fund, for future payment of retirement benefits to employees. The contributions accruing during each year are charged to the Statement of Profit and Loss.

iii) Leave encashment liabilities are determined by actuarial valuation done at the end of the year and the charge for the current year is debited to the Statement of Profit and Loss.

iv) Employer's contribution to Provident fund is charged to the Statement of Profit and Loss.

H Foreign currency transactions:

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

Liabilities payable in foreign currency are restated at the year-end exchange rates.

I. Leases:

Lease rental payments under operating leases are recognized as an expense on a straight line basis in the Statement of Profit and loss over the lease term.

J. Taxes on income:

i) Current taxation:

Provision for current tax is computed after considering tax allowances and exemptions.

ii) Minimum alternate tax:

Minimum alternate tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the balance sheet if there is evidence that the Company will pay normal tax in the future and when the resultant asset can be measured reliably.

iii) Deferred tax:

Provision for deferred taxation is made using the applicable rate of taxation, for all timing differences which arise during the year and are reversed in subsequent periods.

K. Provisions and contingent liabilities:

Based on the best estimate of the Management, provisions are determined of the outflow of economic benefits which are required to settle the obligation as 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 that may, but probably will not, require an outflow of the Company's resources.

L. Cash flow statement:

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of 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. Cash flows from operating, investing and financing activities of the Company are segregated, accordingly.

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Mar 31, 2011

These accounts are prepared under the historical cost basis of accounting and evaluated on a going concern basis, with revenues recognised and expenses accounted for on their accrual to comply in all material aspects with the applicable accounting principles, the applicable Accounting Standards notifies u/s. 211 (3C) of the Companies Act, 1956 and other relevant provisions of the Companies Act, 1956.

(A) The following significant accounting policies adopted in the preparation and presentation of these financial statements are:

i) Sales are recognized when goods are supplied and recorded net of discounts, vat and sales tax thereon.

ii) Income from Conversion job is recognized on its completion and on acceptance by the customers.

iii) Dividend income is accounted for in the year in which the right to receive the same is established.

iv) Fixed assets shown under gross block are valued at cost of acquisition inclusive of inward freight, duties & taxes & incidental expenses related to acquisition & also include cost of installation, wherever incurred.

v) Depreciation on fixed assets has been calculated by adopting the revised rates of depreciation specified in Schedule XIV of the Companies Act, 1956 as under:

Depreciation on fixed assets has been calculated in accordance with the Schedule XIV of the Companies Act, 1956. Fixed assets at the Companys Cosmetics unit has been depreciated on the straight line method as contemplated in Section 205(2)(a) of the said Act, except on vehicles, on which the written down value method has been adopted. In respect of other assets of the Trading division, the written down value method has been adopted at rates specified therein. Depreciation on additions to fixed assets during the current year is charged on prorata basis, for the period of use. The Company incurred expenditure towards product development. The same has been capitalized during the year and shown under miscellaneous expenditure as product development charges. The same will be written off in three installments.

vi) Investments are valued at cost, inclusive of dividend reinvested thereon.

vii) Inventories are value as under:

a. Trading goods - at cost or net realisable value, whichever is lower;

b. Raw materials & packing materials - At weighted average cost or net realisable value;

c. Process stock - At cost or estimated realisable value, whichever is lower and

d. Finished goods - At cost or net realisable value, whichever is lower and is inclusive of excise duty thereon.

viii) Employee benefits:

a. Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial basis and the charge for the current year is debited to the Profit and Loss Account.

b. Superannuation: The Company contributes towards its Employees Superannuation Fund, for future payment of retirement benefits to its employees. The contributions accruing during each year are charged to the Profit and Loss Account.

c. Leave encashment liabilities are determined by actuarial valuation done at the end of the year and the charge for the current year is debited to the Profit and Loss Account.

d. Employers contribution to Provident fund is charged to the Profit and Loss Account.

ix) Foreign exchange transactions:

All receipts in foreign currencies are recorded at banks buying rates that prevailed on the dates on which the relevant transactions took place. Liabilities payable in foreign currency are restated at the year end exchange rates.

x) Taxes on income:

a. Current taxation:

Provision for current tax is made based on the tax liability computed after considering tax allowances and exemptions.

b. Deferred tax:

Provision for deferred taxation is made using the applicable rate of taxation, for all timing differences which arise during the year and are reversed in subsequent periods.

xi) All contractual liabilities connected with the business operations of the Company are appropriately provided for. xii) Product development expenses to be amortised over a period of three years.

(B) Events happening after the Balance Sheet date:

93,239 warrants have been converted into Equity Shares of the Company pursuant to the Board resolution dated April 29, 2011 and consequent to the same the paid up Equity Share Capital and Share Premium Account have increased to Rs. 2,61,41,780/- and Rs. 1,33,35,662, reduction in share warrants respectively.

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Mar 31, 2010

These accounts are prepared under the historical cost basis of accounting and evaluated on a going concern basis, with revenues recognised and expenses accounted for on their accrual to comply in all material aspects with the applicable accounting principles, the applicable Accounting Standards notifies u/s. 211 (3C) of the Companies Act, 1956 and other relevant provisions of the Companies Act, 1956

This financial statements have been prepared in conformity with generally accepted accounting principles with the same accounting policies adopted as in the previous year.

(A) The following significant accounting policies adopted in the preparation and presentation of these financial statements are:

i) Sales are recognized when goods are supplied and recorded net of discounts, vat and sales tax thereon.

ii) Income from Conversion job is recognized on its completion and on acceptance by the customers.

iii) Dividend income is accounted for in the year in which the right to receive the same is established.

iv) Fixed assets shown under gross block are valued at cost of acquisition inclusive of inward freight, duties & taxes & incidental expenses related to acquisition & also include cost of installation, wherever incurred.

v) Depreciation on fixed assets has been calculated by adopting the revised rates of depreciation specified in Schedule XIV of the Companies Act, 1956 as under:

Depreciation on fixed assets has been calculated in accordance with the Schedule XIV of the Companies Act, 1956. Fixed assets at the Companys Cosmetics unit has been depreciated on the straight line method as contemplated in Section 205(2)(a) of the said Act, except on vehicles, on which the written down value method has been adopted. In respect of other assets of the Trading division, the written down value method has been adopted at rates specified therein. Depreciation on additions to fixed assets during the current year is charged on prorata basis, for the period of use.

vi) Investments are valued at cost, inclusive of dividend reinvested thereon.

vii) Inventories are value as under:

a. Trading goods - at cost or net realisable value, whichever is lower;

b. Raw materials & packing materials - At weighted average cost or net realisable value;

c. Process stock - At cost or estimated realisable value, whichever is lower and

d. Finished goods - At cost or net realisable value, whichever is lower and is inclusive of excise duty thereon. viii) Employee benefits:

a. Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial basis and the charge for the current year is debited to the Profit and Loss Account.

b. Superannuation: The Company contributes towards its Employees Superannuation Fund, for future payment of retirement benefits to its employees. The contributions accruing during each year are charged to the Profit and Loss Account.

c. Leave encashment liabilities are determined by actuarial valuation done at the end of the year and the charge for the current year is debited to the Profit and Loss Account.

d. Employers contribution to Provident fund is charged to the Profit and Loss Account.

ix) Foreign exchange transactions:

All receipts in foreign currencies are recorded at banks buying rates that prevailed on the dates on which the relevant transactions took place. Liabilities payable in foreign currency are restated at the year end exchange rates.

x) Taxes on income:

a. Current taxation:

Provision for current tax is made based on the tax liability computed after considering tax allowances and exemptions.

b. Deferred tax:

Provision for deferred taxation is made using the applicable rate of taxation, for all timing differences which arise during the year and are reversed in subsequent periods.

xi) All contractual liabilities connected with the business operations of the Company are appropriately provided for. 2. Quantitative information as required under paragraphs 3 and 4 of Part II of the Companies Act, 1956