Bhagawati Gas Ltd. कंपली की लेखा नीति

Mar 31, 2025

(a) Property, Plant and Equipment:

Under the previous GAAP (erstwhile Indian GAAP), Property Plant and Equipments, were carried in the
balance sheet at historical cost. The Company has elected to regard those values of property as deemed cost as
at April 1, 2016 (date of transition to Ind AS).

Recognition and De-recognition

Plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if
any. Such cost includes purchase price, taxes and duties, labour cost and other direct costs incurred up to the
date the asset is ready for its intended use.

When significant parts of plant and equipment are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives. Likewise, when a major inspection is
performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the
recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as
incurred.

Projects under which assets are not ready for their intended use are shown as Capital Work-in-progress.

Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss
when the asset is de-recognised.

Subsequent Measurement (Depreciation)

Depreciation on property, plant and equipment is provided to the extent of depreciable amount on the Straight
Line (SLM) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to
the Companies Act, 2013.

Pursuant to the enactment of the Companies Act, 2013 (the Act), cost of leasehold improvements is being
amortised over the remaining period of lease of the premises. Plant and machinery - distribution equipment is
being depreciated over a period of 10 years.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year end and adjusted prospectively, if appropriate.

(b) Leases:

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.

Company as a lessee

Assets held under finance leases are initially recognised as assets of the Company at their fair value at the
inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding
liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to
achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised
immediately in profit and loss, unless they are directly attributable to qualifying assets, in which case they are
capitalized in accordance with the Company''s general policy on the borrowing costs. Contingent rentals are
recognised as expenses in the periods in which they are incurred.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that
the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of
the estimated useful life of the asset and the lease term.

Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line
basis over the lease term.

(c) Intangible Assets:

Recognition and De-recognition:

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 asset to its working condition for the intended use and net
charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to
the intangible assets.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or
loss when the asset is derecognised.

Subsequent measurement (amortisation)

The cost of intangible asset is amortized over a period of its useful life from the date of its acquisition.
Computer software is being depreciated over a period of 5 years.

(D) CURRENT AND NON-CURRENT CLASSIFICATION:

The Company presents assets and liabilities in the balance sheet based on current/noncurrent classification.
An asset is current when it is:

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

• Held primarily for the purpose of trading;

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

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

All other assets are classified as noncurrent.

A liability is current when:

• It is expected to be settled in normal operating cycle;

• It is held primarily for the purpose of trading;

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

• there is no unconditional right to defer settlement of the liability for at least twelve months after the
reporting period. All other liabilities are classified as noncurrent.

The Company recognises twelve months period as its operating cycle.

(e) Development Expenses:

Revenue expenditure pertaining to pre-production activity is charged to the Profit and Loss Statement.
Development costs of shows are charged to the Profit and Loss Statement unless a show''s feasibility has been
established, in which case such expenditure is recognised as work-in-progress.

(f) Borrowing Cost:

Borrowing costs that are directly attributable to acquisition, construction or production of a qualifying asset are
capitalised as part of the cost of that asset when it is probable that they will result in future economic benefits to
the enterprise and the costs can be measured reliably.

Other borrowing costs are recognised as an expense in the year in which they are incurred.

(g) Inventories:

Items of inventories are measured at lower of cost and net realisable value. . Cost of inventories comprises of
cost of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes
incurred in bringing them to their respective present location and condition.

(h) Impairment of Non-Financial Assets:

At each balance sheet date, the Company assesses whether there is any indication that any property, plant and
equipment and intangible assets with finite lives may be impaired. If any such impairment exists the recoverable
amount of an asset is estimated to determine the extent of impairment, if any. Where it is not possible to
estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the
cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value, using a pre-tax discount rate that reflects
current market assessment of the time value of money and the risks specific to the asset for which the estimates
of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the
asset is reduced to its recoverable amount. An impairment loss is recognized immediately in the statement of
operations.

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Mar 31, 2014

1. Basis of Accounting

i) Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles, the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

ii) The company follows the mercantile system of accounting & recognizes income & expenditure on accrual basis except those with significant uncertainties.

2. Fixed Assets

Fixed assets are stated at their cost of acquisition or construction less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and borrowing costs related to such acquisition or construction.

3. Depreciation

Depreciation on fixed assets is provided for on the Straight Line method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956.In respect of additions or deletions made during the year, depreciation has been calculated on actual basis from the date of such additions or up to the date on which the asset has been discarded, as the case may be.

4. Inventories

Inventories have been valued at lower of cost or net realizable value. In respect of stores and spares, cost has been arrived at on FIFO basis. Scrap has been valued at estimated net realizable value.

5. Revenue Recognition

i) Revenue from sales is recognized on dispatch of goods from the factory. Sales are inclusive of excise duty but exclusive of sales tax.

ii) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

6. Foreign Currency Transactions

i) Transactions denominated in the foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

ii) Monetary items denominated in foreign currencies other than those covered by forward exchange contracts are translated in to rupee equivalent at the rates of exchange prevailing on the Balance Sheet date. In the case of forward contract the difference between the forward rate and the exchange rate on the date of transaction is recognized as income or expense over the life of the contract.

iii) All exchange differences arising on settlement/ conversion of foreign currency transactions, are recognized as income or expenses in the Profit & Loss account, except in cases where they relate to the acquisition of fixed assets, in which case they are adjusted in the carrying cost of the asset.

7. Investments

Investments are classified in to current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are valued at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments.

8. Employee Benefits

i) Defined Contribution Plan: the Company''s contribution paid/payable for the year to defined contribution retirement benefit schemes are charged to Profit and Loss Account.

ii) Defined Benefit Plan: The Company''s liabilities towards defined benefits schemes are determined using the Projected Unit Credit Method. Actuarial valuations under the Projected Unit Credit Method are carried out at the balance sheet date. Actuarial gains and losses are recognized in the Profit and Loss Account in the period of occurrence of such gains and losses.

iii) Short Term Employee Benefits: Short- term employee benefits expected to be paid in exchange for the services rendered by employees are recognized undiscounted during the period employee renders services.

9. Segment Reporting

The business of the company consists of manufacturing of single product i.e. Gases. Therefore the Accounting Standard (AS-17) on Segment Reporting is not applicable.

10. Leases

Finance leases or similar arrangement, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased items, are capitalized and disclosed as leased assets. Finance charges are charged directly against income.

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a basis, which reflect the time pattern of such payment appropriately.

11. Earnings per Share

The earnings considered in ascertaining the company''s Earnings per Share (EPS) comprises the Net Profit or Loss for the period after tax and extra ordinary items. The basic EPS is computed on the basis of weighted average number of equity shares outstanding during the year. The number of shares for computation of diluted EPS comprises of weighted average number of equity shares considered for deriving basic EPS and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year unless they are issued at a later date. The diluted potential equity shares are adjusted for the proceeds receivable assuming that the shares are actually issued at fair value. The number of shares and potentially dilutive shares are adjusted for shares splits/reverse share splits (consolidation of shares) and bonus shares, as appropriate.

12. Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. Current taxes are computed at the current rate of tax in accordance with provisions of the Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between taxable profit and the profit as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized on unabsorbed depreciation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Profit & Loss Account in the year of change.

13. Impairment

The carrying values of assets of the cash- generating units at each balance sheet date are reviewed for impairment. If any indication of such impairment exists, the recoverable amounts of those assets are estimated and impairment loss is recognised, if the carrying amount of those assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the estimated future cash flows to their present value based on appropriate discount factor.

14. Contingent Liabilities

Contingent liabilities are determined on the basis of available information and are disclosed by way of note to accounts.

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Mar 31, 2011

1. BASIS OF ACCOUNTING

i) Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles, the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

ii) The company follows the mercantile system of accounting & recognizes income & expenditure on accrual basis except those with significant uncertainties.

2. FIXED ASSETS

Fixed assets are stated at their cost of acquisition or construction less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and borrowing costs related to such acquisition or construction.

3. DEPRECIATION

Depreciation on fixed assets is provided for on the Straight Line method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956. In respect of additions or deletions made during the year, depreciation has been calculated on actual basis from the date of such additions or up to the date on which the asset has been discarded, as the case may be.

4. INVENTORIES

Inventories have been valued at lower of cost or net realizable value. In respect of stores and spares, cost has been arrived at on FIFO basis. Scrap has been valued at estimated net realizable value.

5. REVENUE RECOGNITION

i) Revenue from sales is recognized on dispatch of goods from the factory. Sales are inclusive of excise duty but exclusive of sales tax.

ii) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

6. FOREIGN CURRENCY TRANSACTIONS

i) Trans a ctions denominated in the foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

ii) Monetary items denominated in foreign currencies other than those covered by forward exchange contracts are translated in to rupee equivalent at the rates of exchange prevailing on the Balance Sheet date. In the case of forward contract the difference between the forward rate and the exchange rate on the date of transaction is recognized as income or expense over the life of the contract.

iii) All exchange differences arising on settlement / conversion of foreign currency transactions, are recognized as income or expenses in the Profit & Loss account, except in cases where they relate to the acquisition of fixed assets, in which case they are adjusted in the carrying cost of the asset.

7. INVESTMENTS

Investments are classified in to current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are valued at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments.

8. EMPLOYEE BENEFITS

i) Defined Contribution Plan: the Company's contribution paid/payable for the year to defined contribution retirement benefit schemes are charged to Profit and Loss Account.

ii) Defined Benefit Plan: The Company's liabilities towards defined benefits schemes are determined using the Projected Unit Credit Method. Actuarial valuations under the Projected Unit Credit Method are carried out at the balance sheet date. Actuarial gains and losses are recognised in the Profit and Loss Account in the period of occurrence of such gains and losses.

iii) Short Te r m Employee Benefits: Short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized undiscounted during the period employee renders services.

9. SEGMENT REPORTING

The business of the company consists of manufacturing of single product i.e. Gases. Therefore the Accounting Standard (AS-17) on Segment Reporting is not applicable.

10. LEASES

Finance leases or similar arrangement, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased items, are capitalized and disclosed as leased assets. Finance charges are charged directly against income.

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a basis, which reflect the time pattern of such payment appropriately.

11. EARNINGS PER SHARE

The earnings considered in ascertaining the company's Earnings per Share (EPS) comprises the Net Profit or Loss for the period after tax and extra ordinary items. The basic EPS is computed on the basis of weighted average number of equity shares outstanding during the year. The number of shares for computation of diluted EPS comprises of weighted average number of equity shares considered for deriving basic EPS and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year unless they are issued at a later date. The diluted potential equity shares are adjusted for the proceeds receivable assuming that the shares are actually issued at fair value. The number of shares and potentially dilutive shares are adjusted for shares splits/reverse share splits (consolidation of shares) and bonus shares, as appropriate.

12. TAXES ON INCOME

Tax expense for the year comprises of current tax and deferred tax. Current taxes are computed at the current rate of tax in accordance with provisions of the Income Ta x Act, 1961

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between taxable profit and the profit as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized on unabsorbed depreciation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Profit & Loss Account in the year of change.

13. IMPAIRMENT

The carrying values of assets of the cash-generating units at each balance sheet date are reviewed for impairment. If any indication of such impairment exists, the recoverable amounts of those assets are estimated and impairment loss is recognised, if the carrying amount of those assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the estimated future cash flows to their present value based on appropriate discount factor.

14. CONTINGENT LIABILITIES

Contingent liabilities are determined on the basis of available information and are disclosed by way of note to accounts.

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Mar 31, 2010

1. BASIS OF ACCOUNTING

i) Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles, the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

ii) The company follows the mercantile system of accounting & recognizes income & expenditure on accrual basis except those with significant uncertainties.

2. FIXED ASSETS

Fixed assets are stated at their cost of acquisition or construction less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and borrowing costs related to such acquisition or construction.

3. DEPRECIATION

Depreciation on fixed assets is provided for on the Straight Line method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956.In respect of additions or deletions made during the year, depreciation has been calculated on actual basis from the date of such additions or up to the date on which the asset has been discarded, as the case may be.

4. INVENTORIES

Inventories have been valued at lower of cost or net realizable value. In respect of stores and spares, cost has been arrived at on FIFO basis. Scrap has been valued at estimated net realizable value.

5. REVENUE RECOGNITION

i) Revenue from sales is recognized on dispatch of goods from the factory. Sales are inclusive of excise duty but exclusive of sales tax.

ii) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

6. FOREIGN CURRENCY TRANSACTIONS

i) Transactions denominated in the foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

ii) Monetary items denominated in foreign currencies other than those covered by forward exchange contracts are translated in to rupee equivalent at the rates of exchange prevailing on the Balance Sheet date. In the case of forward contract the difference between the forward rate and the exchange rate on the date of transaction is recognized as income or expense over the life of the contract.

iii) All exchange differences arising on settlement / conversion of foreign currency transactions, are recognized as income or expenses in the Profit & Loss account, except in cases where they relate to the acquisition of fixed assets, in which case they are adjusted in the carrying cost of the asset.

7. INVESTMENTS

Investments are classified in to current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are valued at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments.

8. EMPLOYEE BENEFITS

i) Defined Contribution Plan : The companys contribution paid/payable for the year to defined contribution retirement benefit schemes are charged to Profit and Loss Account.

ii) Defined Benefit Plan : The companys liabilities towards defined benefits schemes are determined using the Projected Unit Credit Method. Actuarial valuations under the Projected Unit Credit Method are carried out at the balance sheet date. Actuarial gains and losses are recognised in the Profit and Loss Account in the period of occurrence of such gains and losses.

iii) Short Term Employee Benefits : Short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized undiscounted during the period employee renders services.

9. SEGMENT REPORTING

The business of the company consists of manufacturing of single product i.e. Gases. Therefore the Accounting Standard (AS-17) on Segment Reporting is not applicable.

10. LEASES

Finance leases or similar arrangement, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased items, are capitalized and disclosed as leased assets. Finance charges are charged directly against income.

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased Items are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a basis, which reflect the time pattern of such payment appropriately.

11. EARNINGS PER SHARE

The earnings considered in ascertaining the companys Earnings per Share (EPS) comprises the Net Profit or Loss for the period after tax and extra ordinary items. The basic EPS is computed on the basis of weighted average number of equity shares outstanding during the year. The number of shares for computation of diluted EPS comprises of weighted average number of equity shares considered for deriving basic EPS and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year unless they are issued at a later date. The diluted potential equity shares are adjusted for the proceeds receivable assuming that the shares are actually issued at fair value. The number of shares and potentially dilutive shares are adjusted for shares splits/reverse share splits (consolidation of shares) and bonus shares, as appropriate.

12. TAXES ON INCOME

Tax expense for the year comprises of current tax and deferred tax. Current taxes are computed at the current rate of tax in accordance with provisions of the Income Tax Act, 1961

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between taxable profit and the profit as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized on unabsorbed depreciation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Profit & Loss Account in the year of change.

13. IMPAIRMENT

The carrying values of assets of the cash-generating units at each balance sheet date are reviewed for impairment. If any indication of such impairment exists, the recoverable amounts of those assets are estimated and impairment loss is recognised, if the carrying amount of those assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the estimated future cash flows to their present value based on appropriate discount factor.

14. CONTINGENT LIABILITIES

Contingent liabilities are determined on the basis of available information and are disclosed by way of note to accounts.

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Mar 31, 2009

1. BASIS OF ACCOUNTING

i) Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles, the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

ii) The Company follows the mercantile system of accounting & recognizes income & expenditure on accrual basis except those with significant uncertainties.

2. FIXED ASSETS

Fixed assets are stated at their cost of acquisition or construction less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and borrowing costs related to such acquisition or construction.

3. DEPRECIATION

Depreciation on fixed assets is provided for on the Straight Line method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956. In respect of additions or deletions made during the year, depreciation has been calculated on actual basis from the date of such additions or up to the date on which the asset has been discarded, as the case may be.

4. INVENTORIES

Inventories have been valued at lower of cost or net realizable value. In respect of stores and spares, cost has been arrived at on FIFO basis. Scrap has been valued at estimated net realizable value.

5. REVENUE RECOGNITION

i) Revenue from sales is recognized on dispatch of goods from the factory. Sales are inclusive of excise duty but exclusive of sales tax.

ii) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

6. FOREIGN CURRENCY TRANSACTIONS

i) Transactions denominated in the foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

ii) Monetary items denominated in foreign currencies other than those covered by forward exchange contracts are translated in to rupee equivalent at the rates of exchange prevailing on the Balance Sheet date. In the case of forward contract the difference between the forward rate and the exchange rate on the date of transaction is recognized as income or expense over the life of the contract.

Hi) All exchange differences arising on settlement / conversion of foreign currency transactions, are recognized as income or expenses in the Profit & Loss account, except in cases where they relate to the acquisition of fixed assets, in which case they are adjusted in the carrying cost of the asset.

7. INVESTMENTS

Investments are classified in to current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are valued at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments.

8. EMPLOYEE BENEFITS:

a) Defined Contribution plan: Companys contribution paid/payable for the year to defined contribution retirement benefit schemes are charged to Profit and Loss Account.

b) Defined Benefit Plan: Companys liabilities towards defined benefits schemes are determined using the Projected Unit Credit Method. Actuarial valuations under the Projected Unit Credit Method are carried out at the balance sheet date. Actuarial gains and losses are recogniesed in the Profit and Loss account in the period of occurrence of such gains and losses.

c) Short Term Employee Benefits: Short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized undiscounted during the period employee renders services.

9. SEGMENT REPORTING

The business of the company consists of Manufacturing of Single Product i.e. Gases. Therefore the Accounting Standard (AS-17), Segment Reporting is not applicable.

10. LEASES

Finance leases or similar arrangement, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased items, are capitalized and disclosed as leased assets. Finance charges are charged directly against income.

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a basis, which reflect the time pattern of such payment appropriately.

11. EARNINGS PER SHARE

The earnings considered in ascertaining the companys Earnings per Share (EPS) comprises the Net Profit or Loss for the period after tax and extra ordinary items. The basic EPS is computed on the basis of weighted average number of equity shares outstanding during the year. The number of shares for computation of diluted EPS comprises of weighted average number of equity shares considered for deriving basic EPS and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year unless they are issued at a later date. The diluted potential equity shares are adjusted for the proceeds receivable assuming that the shares are actually issued at fair value. The number of shares and potentially dilutive shares are adjusted for shares splits/reverse share splits (consolidation of shares) and bonus shares, as appropriate.

12. TAXES ON INCOME

Tax expense for the year comprises of current tax and deferred tax. Current taxes are measured at the current rate of tax in accordance with provisions of the Income Tax Act, 1961.

Deferred tax Assets and Liabilities are recognized for future tax consequences attributable to the timing differences that result between taxable profit and the profit as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized on unabsorbed depreciation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Profit & Loss Account in the year of change.

13. IMPAIRMENT

The carrying values of assets of the cash-generating units at each balance sheet date are reviewed for impairment. If any indication of such impairment exists, the recoverable amounts of those assets are estimated and impairment loss is recognised, if the carrying amount of those assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the estimated future cash flows to their present value based on appropriate discount factor.

14. CONTINGENT LIABILITIES

Contingent liabilities are determined on the basis of available information and are disclosed by way of note to accounts.

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Mar 31, 2007

1. BASIS OF ACCOUNTING

i) Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles, the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

ii) The Company follows the mercantile system of accounting & recognizes income & expenditure on accrual basis except those with significant uncertainties.

2. FIXED ASSETS

Fixed assets are stated at their cost of acquisition or construction less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and borrowing costs related to such acquisition or construction.

3. DEPRECIATION

Depreciation on fixed assets is provided for on the Straight Line method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956.In respect of additions or deletions made during the year, depreciation has been calculated on actual basis from the date of such additions or up to the date on which the asset has been discarded, as the case may be.

4. INVENTORIES

Inventories have been valued at lower of cost or net realizable value. In respect of stores and spares, cost has been arrived at on FIFO basis. Scrap has been valued at estimated net realizable value.

5. REVENUE RECOGNITION

i) Revenue from sales is recognized on dispatch of goods from the factory. Sales are inclusive of excise duty but exclusive of sales tax. ii) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

6. FOREIGN CURRENCY TRANSACTIONS

i) Transactions denominated in the foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

ii) Monetary items denominated in foreign currencies other than those covered by forward exchange contracts are translated in to rupee equivalent at the rates of exchange prevailing on the.Balance Sheet date. In the case of forward contract the difference between the forward rate and the exchange rate on the date of transaction is recognized as income or expense over the life of the contract.

iii) All exchange differences arising on settlement / conversion of foreign currency transactions, are recognized as income or expenses in the Profit & Loss account, except in cases where they relate to the acquisition of fixed assets, in which case they are adjusted in the carrying cost of the asset.

7. INVESTMENTS

Investments are classified in to current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are valued at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments.

8. RETIREMENT BENEFITS

i) Retirement benefits in the form of Provident Fund is accounted on accrual basis and charged to the Profit & Loss Account.

ii) Provision for liability towards gratuity to employees and unavailed earned leave benefits is made on the basis of actuarial valuation.

9. SEGMENT REPORTING

The business of the company consists of Manufacturing of Single Product i.e. Gases. Therefore the Accounting Standard (AS-17), Segment Reporting is not applicable.

10. LEASES

Finance leases or similar arrangement, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased items, are capitalized and disclosed as leased assets. Finance charges are charged directly against income.

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased Items are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a basis, which reflect the time pattern of such payment appropriately.

11. EARNINGS PER SHARE

The earnings considered in ascertaining the companys Earnings per Share (EPS) comprises the (Vet Profit or Loss for the period after tax and extra ordinary items. The basic EPS is computed on the basis of weighted average number of equity shares outstanding during the year. The number of shares for computation of diluted EPS comprises of weighted average number of equity shares considered for deriving basic EPS and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year unless they are issued at a later date. The diluted potential equity shares are adjusted for the proceeds receivable assuming that the shares are actually issued at fair value. The number of shares and potentially dilutive shares are adjusted for shares splits/reverse share splits (consolidation of shares) and bonus shares, as appropriate.

12. TAXES ON INCOME

Tax expense for the year comprises of current tax and deferred tax. Current taxes are measured at the current rate of tax in accordance with provisions of the Income Tax Act, 1961

Deferred tax Assets and Liabilities are recognized for future tax consequences attributable to the timing differences that result between taxable profit and the profit as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized on unabsorbed depreciation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Profit & Loss Account in the year of change.

13. IMPAIRMENT

The carrying values of assets of the cash-generating units at each balance sheet date are reviewed for impairment. If any indication of such impairment exists, the recoverable amounts of those assets are estimated and impairment loss is recognised, if the carrying amount of those assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the estimated future cash flows to their present value based on appropriate discount factor.

14. CONTINGENT LIABILITIES

Contingent liabilities are determined on the basis of available information and are disclosed by way of note to accounts.

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Mar 31, 2005

1. BASIS OF ACCOUNTING

i) Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles, the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

ii) The Company follows the mercantile system of accounting & recognizes income & expenditure on accrual basis except those with significant uncertainties.

2. FIXED ASSETS

Fixed assets are stated at their cost of acquisition or construction less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and borrowing costs related to such acquisition or construction.

Fixed Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognised in the income statement. For items of fixed assets carried at cost, the recoverable amount is the higher of an assets net selling price and value in use. The net selling price is the amount obtained from the sale of an asset in an arms length transaction while value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Recoverable amounts are estimated for individual assets or, if not possible for the cash generating unit. Impairment loss recognised for an asset in earlier accounting periods is reversed, to the extent of its recoverable amount, if there has been change in the estimates used to determine the assets recoverable amount since the last impairment toss was recognised.

Effective from April 1,2004 the Company has adopted Accounting Standard 28, lmpairment of Assets (AS-28), which has not given rise to any impairment loss to be recognised in the financial statements for the year ended March 31,2005.

3. DEPRECIATION

Depreciation on fixed assets is provided for on the Straight Line method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956. ln respect of additions or deletions made during the year, depreciation has been calculated on actual basis from the date of such additions or up to the date on which the asset has been discarded, as the case may be.

4. INVENTORIES

Inventories have been valued at lower of cost or net realizable value. In respect of stores and spares, cost has been arrived at on FIFO basis. Scrap has been valued at estimated net realizable value.

5. REVENUE RECOGNITION

i) Revenue from sales is recognized on dispatch of goods from the factory. Sales are inclusive of excise duty but exclusive of sales tax.

ii) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

6. FOREIGN CURRENCY TRANSACTIONS

i) Transactions denominated in the foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

ii) Monetary items denominated in foreign currencies other than those covered by forward exchange contracts are translated in to rupee equivalent at the rates of exchange prevailing on the Balance Sheet date. In the case of forward contract the difference between the forward rate and the exchange rate on the date of transaction is recognized as income or expense over the life of the contract.

iii) All exchange differences arising on settlement/conversion of foreign currency transactions, are recognized as income or expenses in the Profit & Loss account, except in cases where they relate to the acquisition of fixed assets, in which case they are adjusted in the carrying cost of the asset.

7. INVESTMENTS

Investments are classified in to current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are valued at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments.

8. RETIREMENT BENEFITS

i) Retirement benefits in the form of Provident Fund is accounted on accrual basis and charged to the Profit & Loss Account.

ii) Provision tor liability towards gratuity to employees and unavailed earned leave benefits is made on the basis of actuarial valuation.

9. MISCELLANEOUS EXPENDITURE

Preliminary and Public Issue Expenditure are being written off over a period of ten years from the commencement of commercial production.

10. SEGMENT REPORTING

The business of the company consists of Manufacturing of Single Product i.e. Gases. Therefore the Accounting Standard (AS-17), Segment Reporting is not applicable.

11. LEASES

Finance leases or similar arrangement, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased items, are capitalized and disclosed as leased assets. Finance charges are charged directly against income.

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased Items are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a basis, which reflect the time pattern of such payment appropriately.

12. EARNINGS PER SHARE (EPS)

The earnings considered in ascertaining the companys EPS comprises the Net Profit or Loss tor the period after tax and extra ordinary items. The basic EPS is computed on the basis of weighted average number of equity shares outstanding during the year. The number of shares for computation of diluted EPS comprises "of weighted average number of equity shares considered for deriving basic EPS and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year unless they are issued at a later date. The diluted potential equity shares are adjusted for the proceeds receivable assuming that the shares are actually issued at fair value. The number of shares and potentially dilutive shares are adjusted for shares splits/reverse share splits (consolidation of shares) and bonus shares, as appropriate.

13. TAXES ON INCOME

Tax expense for the year comprises of current tax and deferred tax. Current taxes are measured at the current rate of tax in accordance with provisions of the Income Tax Act, 1961

Deferred tax Assets and Liabilities are recognized for future tax consequences attributable to the timing differences that result between taxable profit and the profit as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized on unabsorbed depreciation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Profit & Loss Account in the year of change.

14. CONTINGENT LIABILITIES

Contingent liabilities are determined on the basis of available information and are disclosed by way of note to accounts.

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Mar 31, 2004

1. BASIS OF ACCOUNTING

i) Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles, the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

ii) The Company follows the mercantile system of accounting & recognizes the income & expenditure on accrual basis except those with significant uncertainties.

2. FIXED ASSETS

Fixed assets are stated at their cost of acquisition or construction less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and borrowing costs related to such acquisition or construction.

3. DEPRECIATION

Depreciation on fixed assets is provided for on the Straight Line method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956.In respect of additions or deletions made during the year, depreciation has been calculated on actual basis from the date of such additions or up to the date on which the asset has been discarded as the case maybe.

4. INVENTORIES

Inventories have been valued at lower of cost or net realizable value. In respect of stores and spares it has been arrived at on FIFO basis. Scrap has been valued at estimated net realizable value.

5. REVENUE RECOGNITION

i) Revenue from sales is recognized on despatch of goods from the factory. Sales are inclusive of excise duty but exclusive of sales tax.

ii) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

6. FOREIGN CURRENCY TRANSACTIONS

i) Transactions denominated in the foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

ii) Monetary items denominated in foreign currencies other than those covered by forward exchange contracts are translated in to rupee equivalent at the rates of exchange prevailing on the Balance Sheet date. In the case of forward contract the difference between the forward rate and the exchange rate on the date of transaction is recognized as income or expense over the life of the contract.

iii) All exchange differences arising on settlement/conversion of foreign currency transactions, are recognized as income or expenses in the Profit & loss account, except in cases where they relate to the acquisition of fixed assets, in which case they are adjusted in the carrying cost of the asset.

7. INVESTMENTS

Investments are classified in to current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are valued at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments.

8. RETIREMENT BENEFITS

i) Retirement benefits in the form of Provident Fund is accounted on accrual basis and charged to the Profit & Loss Account.

ii) Provision for liability towards gratuity to employees and unavailed earned leave benefits is made on the basis of actuarial valuation.

9. MISCELLANEOUS EXPENDITURE

Preliminary and Public Issue Expenditure are being written off over a period of ten years from the commencement of commercial production.

10. SEGMENT REPORTING

The business of the company consists of Manufacturing of Single Product i.e. Gases. Therefore the Accounting Standard (AS-17), Segment Reporting is not applicable.

11. LEASES

Finance leases or similar arrangement, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased items, are capitalized and disclosed as leased assets. Finance charges are charged directly against income.

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased Items are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a basis, which reflect the time pattern of such payment appropriately.

12. EARNINGS PER SHARE (EPS)

The earnings considered in ascertaining the company's EPS comprises the Net Profit or Loss for the period after tax and extra ordinary items. The basic EPS is computed on the basis of weighted average number of equity shares outstanding during the year. The number of shares for computation of diluted EPS comprises of weighted average number of equity shares considered for deriving basic EPS and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential .equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year unless they are issued at a later date. The diluted potential equity shares are adjusted for the proceeds receivable assuming that the shares are actually issued at fair value. The number of shares and potentially dilutive shares are adjusted for shares splits/reverse share splits (consolidation of shares) and bonus shares, as appropriate.

13. TAXES ON INCOME

Tax expense for the year comprises of current tax and deferred tax. Current taxes are measured at the current rate of tax in accordance with provisions of the Income Tax Act, 1961

Deferred tax Assets and Liabilities are recognized for future tax consequences attributable to the timing differences that result between taxable profit and the profit as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized on unabsorbed depreciation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Profit & Loss Account in the year of change.

14. CONTINGENT LIABILITIES

Contingent liabilities are determined on the basis of available information and are disclosed by way of a note to the accounts.

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Mar 31, 2003

1. BASIS OF ACCOUNTING

i) Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles, the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

ii) The Company follows the mercantile system of accounting & recognizes the income & expenditure on accrual basis except those with significant uncertainties.

2. FIXED ASSETS

Fixed assets are stated at their cost of acquisition or construction less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and borrowing costs related to such acquisition or construction.

3. DEPRECIATION

Depreciation on fixed assets is provided for on the Straight Line method in the manner and at the rates specified-in Schedule XIV to the Companies Act, 1956 except in case of process and allied softwares where it is charged @ 20% on streight line basis.. In respect of addition or deletions made during the year, depreciation has been calculated on actual basis from the date of such addition or up to the date on which the asset has been discarded as the case may be.

4. INVENTORIES

Inventories have been valued at lower of cost or net realizable value. In respect of stores and spares it has been arrived at on FIFO basis. Scrap has been valued at estimated net realizable value.

5 REVENUE RECOGNITION

i) Revenue from sales is recognized on dispatch of goods from the factory. Sates is inclusive of excise duty but exclusive of sales tax.

ii) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

6. FOREIGN CURRENCY TRANSACTIONS

i) Transactions denominated in the foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

ii) Monetary items denominated in foreign currencies other than those covered by forward exchange contracts are translated in to rupee equivalent at the rates of exchange prevailing on the Balance Sheet date. In the case of forward contract the difference between the forward rate and the exchange rate on the date of transaction is recognized as income or expense over the life of the contract.

iii) All exchange differences arising on settlement / conversion of foreign currency transactions, are recognized as income' - or expenses in the Profit & loss account, except in cases where they relate to the acquisition of fixed assets, in which case they are adjusted in the carrying cost of the asset.

7. INVESTMENTS

Investments are classified in to current and long term investments . Current investments are stated at the lower of cost and fair value . Long term investments are valued at cost. A provision for diminution is made to recognize a decline , other than temporary , in the value of long term investments.

8. RETIREMENT BENEFITS

i) Retirement benefits in the form of Provident fund is accounted on accrual basis and charged to the Profit & Loss Account.

ii) Provision for liability towards gratuity to employees and unavailed earned leave benefits is made on the basis of actuarial valuation.

9. MISCELLANEOUS EXPENDITURE

Preliminary and Public issue Expenditure are being written off over a period of ten years from the commencement of commercial production.

10. SEGMENT REPORTING

The business of the company consists of Manufacturing of Single Product i.e. Gases. Therefore the accounting standard (AS-17) .Segment Reporting , issued by ICAI which is mandatory w.e.f. April 1 , 2001, is not considered applicable.

11. LEASES

Finance leases or similar arrangement, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased items, are capitalized and disclosed as leased assets. Finance charges are charged directly against income.

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a basis, which reflect the time pattern of such payment appropriately.

12. EARNINGS PER SHARE (EPS)

The earnings considered in ascertaining the company's EPS comprises the Net Profit or Loss for the period after tax and extra ordinary items. The basic EPS is computed on the basis of weighted average number of equity shares outstanding during the year. The number of shares for computation of diluted EPS comprises of weighted average number of equity shares considered for deriving basic EPS and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year unless they are issued at a later date. The diluted potential equity shares are adjusted "for the proceeds receivable assuming that the shares are actually issued at fair value. The number of shares and potentially dilutive shares are adjusted for shares splits/reverse share splits ( consolidation of shares) and bonus shares, as appropriate.

13. TAXES ON INCOME

Tax expense for the year comprises of current tax and-deferred tax. Current taxes are measured at the current rate of tax in accordance with provisions of the Income Tax Act ,1961.

Deferred tax Assets and Liabilities are recognised (or future tax consequenc'es attributable to the timing differences that result between taxable profit and the profit as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognised on unabsorbed depreciation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Profit & Loss Account in the year of change.

14. CONTINGENT LIABILITIES

Contingent liabilities are determined on the basis of available information and are disclosed by way of a note to the accounts.

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Mar 31, 2002

1. BASIS OF ACCOUNTING

i) Financial Statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles, the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

ii) The Company follows the mercantile system of accounting & recognizes the income & expenditure on accrual basis except those with significant uncertainties.

2. FIXED ASSETS: Fixed assets are stated at their cost of acquisition or construction less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and borrowing costs related to such acquisition or construction.

3. DEPRECIATION: Depreciation on fixed assets is provided for on the Straight Line method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956. In respect of addition or deletions made during the year, depreciation has been calculated on actual basis from the date of such addition or up to the date on which the asset has been discarded as the case may be.

4. INVENTORIES: Inventories have been valued at lower of cost or net realizable value. In respect of stores and spares it has been arrived at on FIFO basis. Scrap has been valued at estimated net realizable value.

5. REVENUE RECOGNITION:

i) Revenue from sales is recognized on dispatch of goods from the factory Sales is inclusive of excise duty but exclusive of sales tax.

ii) Interest income is recognized on a time proportion basis taking in to account the amount outstanding and the rate applicable.

6. FOREIGN CURRENCY TRANSACTIONS:

i) Transactions denominated in the foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

ii) All exchange differences arising on settlement/conversion of foreign currency transactions, are recognized as income or expenses in the Profit & loss account.

7. INVESTMENTS:

Investments are classified in to current and long term investments. Current investments are stated at the lower of cost and fair value Long term investments are valued at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investments.

8. RETIREMENT BENEFITS

i) Retirement benefits in the form of Provident fund is accounted on accrual basis and charged to the Profit & Loss Account.

ii) Provision for liability towards gratuity to employees is made on the basis of actuarial valuation.

iii) Provision for liability towards unavailed earned leaves benefit is made on accrual basis.

9. MISCELLANEOUS EXPENDITURE

Preliminary and Public issue Expenditure are being written off over a period of ten years from the commencement of commercial production.

10. SEGMENT REPORTING: The business of the company consists of Manufacturing of Single Product i. e. Gases. Therefore the accounting standard (AS-17), Segment Reporting, issued by ICAI which is mandatory w. e. f. April 1, 2001, is not considered applicable.

11. LEASES: Finance leases or similar arrangement, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased items, are capitalized and disclosed as leased assets. Finance charges are charged directly against income.

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a basis, which reflect the time pattern of such payment appropriately.

12. EARNINGS PER SHARE (EPS): The earnings considered in ascertaining the companys EPS comprises the Net Profit or Loss for the period after tax and extra ordinary items. The basic EPS is computed on the basis of weighted average number of equity shares outstanding during the year. The number of shares for computation of diluted EPS comprises of weighted average number of equity shares considered for deriving basic EPS and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year unless they are issued at a later date. The diluted potential equity shares are adjusted for the proceeds receivable assuming that the shares are actually issued at fair value. The number of shares and potentially dilutive shares are adjusted for shares splits/reverse share splits ( consolidation of shares) and bonus shares, as appropriate.

13. TAXES ON INCOME ; Tax expense for the year comprises of current tax and deferred tax. Current taxes are measured at the current rate of tax in accordance with provisions of the Income Tax Act, 1961 Deferred tax Assets and Liabilities are recognised for future tax consequences attributable to the timing differences that result between taxable profit and the profit as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognised on unabsorbed depreciation and carry forward of losses under tax laws to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Profit & Loss Account in the year of change.

14. CONTINGENT LIABILITIES: Contingent liabilities are determined on the basis of available information and are disclosed by way of a note to the accounts.

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Mar 31, 2001

1) METHOD OF ACCOUNTING : The financial statements are prepared on the historical cost convention and in accordance with .the generally accepted accounting principles .

2) FIXED ASSETS : Fixed assets have been stated at actual cost. Cost is inclusive of freight, installation charges, taxes, duties and other incidental expenditure but net of MODVAT.

3) DEPRECIATION : Depreciation has been provided for on straight line method at the rates specified in Schedule XIV to the Companies Act, 1956 (As amended).

4) INVENTORIES : Inventories are valued at cost inclusive of any tax or duty.

5) INVESTMENTS : Investments are stated at cost.

6) CONTINGENT LIABILITIES : Contingent liabilities are not provided for in the accounts but are separately disclosed in the Schedule of Notes.

7) MISCELLANEOUS EXPENDITURE : Public issue expenses are being written off over a period of ten years.

8) RECOGNITION OF INCOME & EXPENDITURE : Items of income & expenditure are accounted for on accrual basis.

9) MODVAT CREDIT : MODVAT Credit on purchases is adjusted from the excise duty paid during the year.

10) SALES : Sales are inclusive of excise duty but excluding sales tax.

11) RETIREMENT BENEFITS : Provision for gratuity to the employees is made on the basis of actuarial valuation .

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Mar 31, 2000

1) METHOD OF ACCOUNTING :- The financial statements are prepared on the historical cost convention and in accordance with the generally accepted accounting principles.

2) FIXED ASSETS : Fixed assets have been stated at actual cost. Cost is inclusive of freight, installation charges, taxes, duties and other incidental expenditure but net of MODVAT.

3) DEPRECIATION Depreciation has been provided for on straight line method at the rates specified in Schedule XIV to the Companies Act, 1956 (As amended).

4) INVENTORIES : Inventories are valued at cost inclusive of any tax or duty.

5) INVESTMENTS : Investments are stated at cost.

6) CONTINGENT LIABILITIES : Contingent liabilities are not provided for in the accounts but are separately disclosed in the Schedule of Notes.

7) MISCELLANEOUS EXPENDITURE : Public issue expenses are being written off over a period of ten years.

8) RECOGNITION OF INCOME & EXPENDITURE : Items of income & expenditure are accounted for on accrual basis.

9) MODVAT CREDIT : MODVAT Credit on purchases is adjusted from the excise duty paid during the year

10) SALES : Sales are inclusive of excise duty but excluding sales tax.

11) RETIREMENT BENEFITS : Provision for gratuity to the employees is made on the basis of actuarial valuation.

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Mar 31, 1999

1) METHOD OF ACCOUNTING

The financial statement are prepared on the historical cost convention and in accordance with generally accepted accounting principles.

2) FIXED ASSETS:

Fixed assets have been stated at actual cost. Cost is inclusive of freight, installation charges, taxes, duties and other incidental expenditure but net of MODVAT.

3) DEPRECIATION :

Depreciation has been provided for on straight line method at the rates specified in Schedule XIV to the Companies Act, 1956 (As amended).

4) INVENTORIES:

Inventories are valued at cost inclusive of any tax or duty incurred.

5) INVESTMENTS:

Investments are stated at cost.

6) CONTINGENT LIABILITIES:

Contingent liabilities are not provided for in the accounts but are separately disclosed in the Schedule of Notes.

7) MISCELLANEOUS EXPENDITURE:

Public issue expenses are written off over a period of ten years.

8) RECOGNITION OF INCOME & EXPENDITURE:

Items of income & expenditure are accounted for on accrual basis.

9) MODVAT CREDIT:

MODVAT Credit on Purchases is adjusted from the excise duty paid during the year.

10) EXCISE DUTY:

Excise duty payable on production of finished product are accounted for at the time of removal of goods from the factory premises.

11) SALES :

Sales are inclusive of excise duty but excluding sales tax.

12) RETIREMENT BENEFITS:

Provision for gratuity liability to the employees is made on the basis of actuarial valuation.

13) EXPENDITURE DURING CONSTRUCTION PERIOD:

Expenditure during construction period is being captalised and carried forward as preoperative expenses till such time the unit commences commercial production, when these are allocated to the fixed assets of the respective unit.

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Mar 31, 1998

1) METHOD OF ACCOUNTING : The financial statement are prepared on the histroicals cost convention and in accordance with generally accepted accounting principles.

2) FIXED ASSETS : Fixed Assets have been stated at actual cost. Cost is inclusive of freight, installation charges, taxes, duties and other incidental expenditure but net of MODVAT.

3) DEPRECIATION : Depreciation has been provided for on straight line method at the rates specified in Schedule XIV of the Companies Ac,t 1956 (As amended).

4) INVENTORIES : Stores & spares are stated at cost.

5) INVESTMENTS : Investments are stated at cost.

6) CONTINGENT LIABILITIES : Contingent liabilities are not provided for in the accounts but are separately disclosed in the Schedule of Notes.

7) MISCELLANEOUS EXPENDITURE : Public issue expenses are written off over a prod of ten years.

8) RECOGNITION OF INCOME & EXPENDITURE : Items of income & expenditure are accounted for on accrual basis.

9) MODVAT CREDIT

a) MODVAT Credit on duty paid goods purchased during the year is adjusted against consumption of raw material.

b) Fixed assets are net of modvat received on respective capital goods.

10) EXCISE DUTY : Excise duty payable on production of finished product are accounted for at the time of removal of goods from the factory premises.

11) SALES : Sales are inclusive of excise duty but excluding sales tax.

12) RETIREMENT BENEFITS : Provision for gratuity liability to the employees is made on the basis of actuarial valuation.

13) EXPENDITURE DURING CONSTRUCTION PERIOD : Expenditure during construction period is being capialised and carried forward as preoperative expenses till such time the unit commences commercial production, when these are allocated to the fixed assets of the respective unit.

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Mar 31, 1997

1) METHOD OF ACCOUNTING

The financial statement are prepared on the historical cost convention and in accordance with generally accepted accounting principles

2) FIXED ASSETS : Fixed assets have been stated at actual cost. Cost is inclusive of freight, installation charges, taxes, duties and other incidental expenditure but net of MODVAT.

3) DEPRECIATION : Depreciation has been provided for on straight line method at the rates specified in Schedule XIV to the Companies Act,1956 (As amended).

4) INVENTORIES : Stores & spares are stated at cost.

5) INVESTMENTS : Investments are stated at cost.

6) CONTINGENT LIABILITIES: Contingent liabilities are not provided for in the accounts but are separately disclosed in the Schedule of Notes.

7) MISCELLANEOUS EXPENDITURE : Public issue expenses are written off over a period of ten years.

8) RECOGNITION OF INCOME & EXPENDITURE: Items of income & expenditure are accounted for on accrual basis.

MODVAT CREDIT

MODVAT Credit on duty paid goods purchased during the year is adjusted against consumption of raw material.

b) Fixed assets are net of MODVAT received on respective capital goods.

10) EXCISE DUTY: Excise duty payable on production of finished product are accounted for at the time of removal of goods from the factory premises.

11) SALES : Sales are inclusive of excise duty liability excluding sales tax.

12) RETIREMENT BENEFITS :Provision for gratuity liability to the employees is made on the basis of actuarial valuation.

13) EXPENDITURE DURING CONSTRUCTION PERIOD : Expenditure during construction period is being capitalised and carried forward as pre operative expenses till such time the unit commences commercial production. when these are allocated to the fixed assets of the respective unit.

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Mar 31, 1995

A) Fixed Assets:

i) The fixed assets are stated at cost.

ii) Capital work in progress in respect & installation of 120 TPD Industrial Gases Plant at Khetri are stated at cost and have been shown separately in the fixed assets schedule.

iii) Depreciation has been provided on straight line method basis at the rates specified in Schedule XIV to the Companies Act, 1956. (As amended).

B) INVENTORIES

Stores & spares are stated at cost.

C) INVESTMENTS

Investments are stated at cost.

D) CONTINGENT LIABILITIES

Contingent liabilities are generally not provided for in the accounts and are separately shown in the Schedule of Notes.

E) RECOGNITION OF INCOME & EXPENDITURE:

Items of income & expenditure are accounted for on accrual basis

F) SALES:

Sales is inclusive of excise duty but excluding sales tax.

10. Schedule 1 to 15 form an integral part of accounts and have been duly authenticated

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Mar 31, 1994

FIXED ASSETS

i. The fixed assets are stated at cost.

ii. Capital work in progress in respect of installation of 120 TPD Industrial Gases Plant at Khetri are stated at cost and have been shown separetely in the fixed assets schedule.

iii. Depreciation has been provided on straight line method basis at the rates specified in Schedule XIV to the Companies Act, 1956 (As amended).

RECOGNITION OF INCOME & EXPENDITURE

Items of income and expenditure are accounted for on accrual basis.

SALES Sales is inclusive of excise duty but excluding sales tax.