Bombay Super Hybrid Seeds Ltd. कंपली की लेखा नीति

Mar 31, 2025

1 MATERIAL ACCOUNTING POLICIES:

A Basis of Preparation and Presentation

i) The financial statements are prepared in accordance with applicable Indian Accounting Standards (Ind AS) and
on accounting principles of going concern which are measured at fair values except Property, Plant & Equipments,
which are accounted for on historical cost basis. These financial statements have been prepared to comply with all
material aspects with the Indian accounting standards notified under section 133 of the Act, (the "Act") read with
Rule 7 of the Companies (Accounts) Rules, 2014, and the other relevant provisions of the Act.

H) Accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policies hitherto in

use.

iii) All assets and liabilities have been classified as current or non-current as per the Company''s normal operating
cycle and other criteria set out in the Schedule III to the Act. Based on the nature of products and the time between
the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has
ascertained its operating cycle as 12 months for the purpose of current classification of assets and liabilities.

B REVENUE RECONGNTION

I) Revenue is measured at the transaction valued considered as fair value of the consideration received or
receivable where the ownership and significant risk has been transferred to the buyer.

il) interest on overdue debtors is accounted for as and when received, as the collection cannot be ascertained with
reasonable certainty.

Ill) Sales return are accounted for / provided for in the year of return.

Iv) Compensation on account of crop quality discounts are accounted for as and when settled.

C PROPERTY, PLANT AND EQUIPMENTS

LViTteted ^production °^{r stJ}PP''V ^ofa°ods °r services, or for administrative purposes,

are stated in the balance sheet at cost less accumulated depreciation. Freehold land Is not depreciated.

aL^Aumu^!mpa³irmen^Pt7^: ^ ^ ^E™^{entS are Sta,ed at c}°^st -cumulated depreciation and

are^expeeled tiTa rls^ro^the^ontinu''eiS derec°9"^ised «''sposa, or when no future economic benefits

D CAPITAL WORK-IN-PROGRESS

administrative parpo... „ cHm, a, epat,

E DEPRECIATION /AMORTIZATION

Depreciation is charged on the WDV Method based on the estimated useful life prescribed under Schedule II to the

P IMPAIRMENT

asset/cash generating unit is made Assets 1™ ¦ ^ex,sls'' ^an estimate of the recoverable amount of the

ssssszi" ¦^{at th}*

accounting periods may no " ''^mPa,m,ent ^

\-n \Yv₀ ,, * J fr>l

G RESEARCH AND DEVELOPMENT EXPENDITURE:

The Research Expenditure (other than capital expenditure) incurred is charged off to the Statement of Profit &
Loss.

H INVENTORIES:

i) Inventories comprise of Unprocessed seeds, Under- Processed Seeds, Processed Seeds, Packing Material and
traded goods. Inventories are valued at the lower of cost or the net realisable value after providing for
obsolescence and other losses, where considered necessary. Cost is determined on Weighted Average basis. Cost
Includes all charges in bringing the goods to their present location and condition and receiving charges.

ii) The cost of Under-Processed Seeds and Processed Seeds comprises of direct labour, other direct costs and
related production overheads. Net realizable value is the estimated selling price in the ordinary course of business
less the estimated costs of completion and the estimated costs necessary to make the sale.

I FOREIGN CURRENCY TRANSACTIONS:

i) Transactions in foreign currency are recorded at the rate prevailing on the date of the transaction.

ii) Current Assets and Current Liabilities in foreign currency outstanding as at the year-end are stated at the rates
of exchange prevailing at the close of the year. The resultant gains/losses of the year are recognized in the
Statement of Profit and Loss.

J EMPLOYEES BENEFITS:

Liability as at the year end in respect of retirement benefits is provided for and/ or funded and charged to
Statement of Profit and Loss as follows:

i) Provident Fund / Family Pensions:

At a percentage of salary/wages for eligible employees.

ti) Retirement benefit costs and termination benefit

The Company determines the present value of the defined benefit obligation and recognizes the liability or asset in
the balance sheet.

The present value of the obligation is determined using the projected unit credit method, with actuarial valuations
being carried out at the end of each year

Defined benefit costs are composed of:

(a) service cost - recognized in profit or loss; service cost comprises (i) current cost which is the increase in the
present value of defined benefit obligations resulting from employee service in the current period, (ii) past service
cost which is the increase in the present value of defined benefit obligations resulting from employee service in the
prior periods resulting from a plan amendment, and (iii) gain or loss on settlement.

(b) remeasurements of the liability or asset - recognized in other comprehensive income.

(d) remeasurements of the liability or asset essentially comprise of actuarial gains and losses (he. changes in the
present value of defined benefit obligations resulting from experience adjustments and effects of changes in
actuarial assumptions).

Short-term benefits: A liability is recognised for benefits accruing to employees in respect of wages and salaries
annual leave and sick leave and other short term benefits in the period the refated service is rendered at the
undiscounted amount of the benefits expected to be paid in exchange for that service,

£e ^ben®^fits: ^abilities recognised in respect of other long-term employee benefits are measured at

„_rn ^P. .. ^valuf ^{of 1116 estlm}ated future cash outflows expected to be made by the Group In respect of services
provided by employees up to the reporting date.

iii) Bonus

The company recognises a liability and expense for bonus in the year of payment. The company recognises a
provision where contractually obliged or where there is past practice that has created a constructive obligation.

K BORROWING COST

L⁰Zr,n⁹|^{COStS di}™^tJ.^{y attributable to} «« acquisition, construction or production of qualifying assets, which are
r“r^C^f^an,y^^{ke 3 substantiat} P^erlod °^{f bme} Set ready for their intended use, are added to the cost of

a^recoanTse^inThe S? “ T ^SUb"^al|y ^read* ^for their intended use. All other borrowing costs

are recognised in the Statement of Profit and Loss in the period in which they are incurred The company

determines the amount of borrowing costs eligible for capitalisation as the actual borrowing costs incurred on tij

r ^,CSS ^ ^interest earned on temporary investment^ specie Arrowing_s

nnrnnco to the extent that an entity borrows tunas specifically for the

r_aSi™a_a^rf^,S,^{a q} ^ °r^Sr^L *? ^{case if thC c}°^m*>^a"Y borrows generally and uses the funds for obtaining
e^SiTes^£™_E^WeLThfc™ ** ^C™^isati°" ^{are de,ermi}"^ed by applying a capitalisation rate to the

/¦CT ACCOUNTANT’S) ^.1
|C3 1 ? * * )

vHJfoJim/ ¦* i

V/X.

l) Income from the agricultural activities is accounted for up to the stage of dispatch of goods by the Company to
the customer after processing.

ii) Expenses which are directly related to the agricultural activities have been accounted for in the books of account
under the Production Expenses. Expenses which are not related to the specific activities are allocated on the basis
of turnover (net of return and Schemes & Discounts) of Agricultural activities and Trading activities.

M EARNING PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. Earnings considered
in ascertaining the Company’s earnings per share is the net profit for the year attributable to equity share holders.
The weighted average number of equity shares outstanding during the year and for all years presented is adjusted
for events, such as bonus shares, other than the conversion of potential equity 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 for the year attributable to equity shareholders and the weighted
average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity
shares.

N TAXATION
INCOME TAX

Provision for Current Tax is made and retained in the accounts on the basis of estimated tax liability as per
applicable provisions of Income Tax Act 1961.

DEFERRED TAX

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profiL Deferred tax
liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally
recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be utilised. Such deferred tax assets and
liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounted
profit ³

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to
be recovered

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the
form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the
Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is
highly probable that future economic benefit associated with it will flow to the Company.

r,r_br,:^s::id^d₀:^ia:f^es a? ***** ^{rates are expe}°^ted 10 -w** p*** m

t habt fty is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.

°f‘l^red f^{sets and} deferred ta* liabilities are offset if a legally enforceable right exists to set off current tax
authority⁹³ "^St ^ ^{defelTed ta}*^{es relate} t0 enfi**and Z“sameSK

Current and deferred tax for the period

recognised in profit or loss, except when they relate to items that are recognised in
n ? T™ °^{r y m eqUity}’ ^{in which caae}- current and deferred tax are also recognized

nlS L?ouK^efa^Vb?_sr ^ ^reSpectJVe''y ^Where or deferred tax arises from the

combination combination, the tax effect is included In the accounting for the business

The Company recognises interest levied and penalties related to Income Tax assessments In the tax expanse.

0 USE OF ESTIMATES

Imn.?7^Parf^ati0n *°^{f Fi}''T^0ial Statements requires estimates and assumptions to be made that affect the reoorted
“f^u ^and "^{abi,ities da}‘« financial Statements and the reoorted amnl* o

tli- —^{1 a}"« - —— « recognised in

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Mar 31, 2024

1 MATERIAL ACCOUNTING POLICIES:

A Basis of Preparation and Presentation

i) The financial statements are prepared in accordance with applicable Indian Accounting Standards (Ind AS) and on accounting principles of going concern which are measured at fair values except Property, Plant & Equipments, which are accounted for on historical cast basis. These financial statements have been prepared to comply with all material aspects with the Indian accounting standards notified under section 133 of the Act, (the "Act") read with Rule 7 of the Companies (Accounts) Rules, 2014, and the other relevant provisions of the Act.

ii) Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policies hitherto in use.

iii) All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Act. Based on the nature of products and the time between tbs acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current classification of assets and liabilities.

B REVENUE REC ONGNTION

i) Revenue is measured at the transaction valued considered as fair value of the consideration received or receivable where the ownership and significant risk has been transferred to the buyer.

ii) Interest on overdue debtors is accounted for as and when received, as the collection cannot be ascertained with reasonable certainty.

iii) Sales return are accounted for / provided for in the year in which they pertain to, as ascertained till finalization of the books of account

iv) Compensation on account of crop qua ity discounts are accounted for as and when settled.

C PROPERTY, PLANT AND EQUIPMENTS

i) Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost less and accumulated depreciation. Freehold land is not depreciated.

ii) All other items of Property, Plant and Equipments are stated at cost less accumulated depredation and accumulated impairment losses.

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

D CAPITAL WORK-IN-PROGRESS

Properties in the course of construction for production, supply or administrative purposes are earned at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Company''s accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed ard ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

E DEPRECIATION AMORTIZATION

Depreciation is charged on the WDV Method based on the estimated useful life prescribed under Schedule II to the Act.

F IMPAIRMENT

Assessment is done at each Balance Sheet date as to whether there is any indication that an asset may be impaired. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets, is considered as a cash generating unit If any such indication exists, an estimate of the recoverable amount of the asset/cash generating unit is made Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount. Recoverable amount is higher of an asset''s or cash generating unit''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have decreased.

G RESEARCH AND DEVELOPMENT EXPENDITURE

The Research Expenditure (other than capital expenditure) incurred is charged off to the Statement of Profit & Loss.

H INVENTORIES:

i) Inventories comprise of Unprocessed seeds, Under- Processed Seeds, Processed Seeds, Packing Material and traded goods. Inventories are valued at the lower of cost or the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost is determined on Weighted Average basis. Cost includes all charges in bringing the goods to their present location and condition and receiving charges.

ii) The cost of Under-Processed Seeds and Processed Seeds comprises of direct tabour, other direct costs and related production overheads. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

I FOREIGN CURRENCY TRANSACTIONS:

i) Transactions in foreign currency are recorded at the rate prevailing on the date of the transaction.

ii) Current Assets and Current Uabilities in foreign currency outstanding as at the year-end are stated at the rates of exchange prevaiing at the dose of the year. The resultant gains/losses of the year are recognized in the Statement of Profit and Loss.

J EMPLOYEES BENEFITS:

Liability as at the year end in respect of retirement benefits is provided for and/ or funded and charged to Statement of Profit and Loss as follows:

i) Provident Fund / Family Pensions:

At a percentage of salary/wages for eligible employees.

ii) Retirement benefit costs and termination benefit

The Company determines the present value of the defined benefit obligation and recognizes the liability or asset in the balance sheet.

The present value of the obligation is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each year

Defined benefit costs are composed of:

(a) service cost - recognized in profit or loss; service cost comprises (i) current cost which is the increase in the present value of defined benefit obligations resulting from employee service in the current period, (ii) past service cost which is the increase in the present value of defined benefit obligations resulting from employee service in the pnor penods resulting from a plan amendment, and (iii) gain or loss on settlement.

(b) remeasurements of the liability or asset- recognized in other comprehensive income

(d) remeasurements of the liability or asset essentially comprise of actuarial gains and losses (i.e. changes in the present value of defined benefit obligations resulting from experience adjustments and effects of changes in actuarial assumptions).

Short-term benefits: A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave and other short term benefits in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

Other long-term benefits: Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Group in respect of services provided by employees up to the reporting date.

iii) Bonus

The company recognises a liability and expense for bonus In the year of payment. The company recognises a provision where contractually obliged or where there is past practice that has created a constructive obligation.

K BORROWING COST

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use. All other borrowing costs are recognised in the Statement of Profit and Loss in the period in which they are incurred. The Company determines the amount of borrowing costs eligible for capitalsation as the actual borrowing costs incurred on that borrowing during the period less any interest income earned on temporary investment of spedfic borrowings pending their expenditure on qualifying assets, to the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying asset. In case if the Company borrows generally and uses the funds for obtaining a qualifying asset, borrowing costs eligible for capitalisation are determined by applying a capitalisation rate to the expenditures on that asset The Company suspends capitalisation of borrowing costs during extended periods in which it suspends active development of a qualifying asset

L AGRICULTURAL ACTVITIES

i) Income from the agncultural activities is accounted for up to the stage of dispatch of goods by the Company to the customer after processing.

ii) Expenses which are directly related to the agricultural activities have been accounted for in the books of account under the Production Expenses Expenses which are not related to the spedfic activities are allocated on the basis of turnover (net of return and Schemes & Discounts) of Agricultural activities and Trading activities.

M EARNING PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Earnings considered in ascertaining the Company’s earnings per share is the net profit for the year attributable to equity share holders. The weighted average number of equity shares outstanding during the year and for all years presented is adjusted for events, such as bonus shares, other than the conversion of potential equity 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 for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.

N TAXATION

INCOME TAX

Provision for Current Tax is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of Income Tax Act 1961.

DEFERRED TAX

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly probable that future economic benefit associated with it will flow to the Company.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Current and deferred tax for the period

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

The Company recognises interest levied and penalties related to Income Tax assessments in the tax expanse

O USE OF ESTIMATES

The preparation of Financial Statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of Financial Statements and the reported amounts of revenues and expenses during the reporting period. Difference between the actual resdts and the estimates are recognised in the period in which the results are known/ materialised.

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Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

A Basis of Preparation and Presentation

i) The financial statements are prepared in accordance with applicable Indian Accounting Standards (Ind AS) and on
accounting principles of going concern which are measured at fair values except Property, Plant & Equipments, which are
accounted for on historical cost basis. These financial statements have been prepared to comply with all material aspects
with the Indian accounting standards notified under section 133 of the Act, (the "Act") read with Rule 7 of the Companies
(Accounts) Rules, 2014, and the other relevant provisions of the Act.

ii) Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or
a revision to an existing accounting standard requires a change in the accounting policies hitherto in use.

iii) All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and
other criteria set out in the Schedule III to the Act. Based on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as
12 months for the purpose of current classification of assets and liabilities.

B REVENUE RECONGNTION

i) Revenue is measured at the transaction valued considered as fair value of the consideration received or receivable where
the ownership and significant risk has been transferred to the buyer.

ii) Interest on overdue debtors is accounted for as and when received, as the collection cannot be ascertained with
reasonable certainty.

iii) Sales return are accounted for / provided for in the year in which they pertain to, as ascertained till finalization of the books
of account.

iv) Compensation on account of crop quality discounts are accounted for as and when settled.

C PROPERTY, PLANT AND EQUIPMENTS

i) Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated
in the balance sheet at cost less and accumulated depreciation. Freehold land is not depreciated.

ii) Office Furniture, Vehicles and office equipment are stated at cost less accumulated depreciation and accumulated
impairment losses.

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

D BIOLOGICAL ASSETS

Recognition and measurement

The company recognises the biological asset (agricultural produce) when:

(a) the company controls the asset as a result of past events;

(b) it is probable that future economic benefits associated with the asset will flow to the company; and

(c) the fair value or cost of the asset can be measured reliably

The biological asset are measured at the end of each reporting period at its fair value less costs to sell.

E CAPITAL WORK-IN-PROGRESS

Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any
recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalised in
accordance with the Company''s accounting policy. Such properties are classified to the appropriate categories of property,
plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other
property assets, commences when the assets are ready for their intended use.

F DEPRECIATION /AMORTIZATION

Depreciation is charged on the WDV Method based on the estimated useful life prescribed under Schedule II to the Act.

G IMPAIRMENT

Assessment is done at each Balance Sheet date as to whether there is any indication that an asset may be impaired. For the
purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use
that are largely independent of the cash inflows from other assets or groups of assets, is considered as a cash generating
unit. If any such indication exists, an estimate of the recoverable amount of the asset/cash generating unit is made. Assets
whose carrying value exceeds their recoverable amount are written down to the recoverable amount. Recoverable amount is
higher of an asset''s or cash generating unit’s net selling price and its value in use. Value in use is the present value of
estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful
life. Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss
recognised for an asset in prior accounting periods may no longer exist or may have decreased.

H RESEARCH AND DEVELOPMENT EXPENDITURE:

The Research Expenditure (other than capital expenditure) incurred is charged off to the Statement of Profit & Loss.

I INVENTORIES:

J FOREIGN CURRENCY TRANSACTIONS:

i) Transactions in foreign currency are recorded at the rate prevailing on the date of the transaction.

ii) Current Assets and Current Liabilities in foreign currency outstanding as at the year-end are stated at the rates of
exchange prevailing at the close of the year. The resultant gains/losses of the year are recognized in the Statement of Profit
and Loss.

K GOVERNMENT GRANTS

i) Grants are accounted for where it is reasonably certain that the ultimate collection will be made.

ii) Grants relating to Fixed Assets in the nature of Project Capital Subsidy are credited to Capital Reserve.

iii) Others are credited to Statement of Profit and Loss.

L EMPLOYEES BENEFITS:

Liability as at the year end in respect of retirement benefits is provided for and/ or funded and charged to Statement of Profit
and Loss as follows:

i) Provident Fund / Family Pensions:

At a percentage of salary/wages for eligible employees.

ii) Retirement benefit costs and termination benefit

The Company determines the present value of the defined benefit obligation and recognizes the liability or asset in the
balance sheet.

The present value of the obligation is determined using the projected unit credit method, with actuarial valuations being
carried out at the end of each year

Defined benefit costs are composed of:

(a) service cost - recognized in profit or loss; service cost comprises (i) current cost which is the increase in the present
value of defined benefit obligations resulting from employee service in the current period, (ii) past service cost which is the
increase in the present value of defined benefit obligations resulting from employee service in the prior periods resulting from
a plan amendment, and (iii) gain or loss on settlement.

(b) remeasurements of the liability or asset - recognized in other comprehensive income.

(d) remeasurements of the liability or asset essentially comprise of actuarial gains and losses (i.e. changes in the present
value of defined benefit obligations resulting from experience adjustments and effects of changes in actuarial assumptions).

Short-term benefits: A liability is recognised for benefits accruing to employees in respect of wages and salaries,
annual leave and sick leave and other short term benefits in the period the related service is rendered at the
undiscounted amount of the benefits expected to be paid in exchange for that service.

Other long-term benefits: Liabilities recognised in respect of other long-term employee benefits are measured at
the present value of the estimated future cash outflows expected to be made by the Group in respect of services
provided by employees up to the reporting date.

iii) Bonus

The company recognises a liability and expense for bonus in the year of payment. The company recognises a provision
where contractually obliged or where there is past practice that has created a constructive obligation.

M BORROWING COST

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that
necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until
such time as the assets are substantially ready for their intended use. All other borrowing costs are recognised in the
Statement of Profit and Loss in the period in which they are incurred. The Company determines the amount of borrowing
costs eligible for capitalisation as the actual borrowing costs incurred on that borrowing during the period less any interest
income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets, to the extent
that an entity borrows funds specifically for the purpose of obtaining a qualifying asset. In case if the Company borrows
generally and uses the funds for obtaining a qualifying asset, borrowing costs eligible for capitalisation are determined by
applying a capitalisation rate to the expenditures on that asset. The Company suspends capitalisation of borrowing costs
during extended periods in which it suspends active development of a qualifying asset

N AGRICULTURAL ACTVITIES

i) Income from the agricultural activities is accounted for up to the stage of dispatch of goods by the Company to the
customer after processing.

ii) Expenses which are directly related to the agricultural activities have been accounted for in the books of account under the
Production Expenses. Expenses which are not related to the specific activities are allocated on the basis of turnover (net of
return and Schemes & Discounts) of Agricultural activities and Trading activities.

O EARNING PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year. Earnings considered in ascertaining the Company’s
earnings per share is the net profit for the year attributable to equity share holders. The weighted average number of equity
shares outstanding during the year and for all years presented is adjusted for events, such as bonus shares, other than the
conversion of potential equity 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 for the year attributable
to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of
all dilutive potential equity shares.

P TAXATION
INCOME TAX

Provision for Current Tax is made and retained in the accounts on the basis of estimated tax liability as per applicable
provisions of Income Tax Act 1961.

DEFERRED TAX

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary
differences to the extent that it is probable that taxable profits will be available against which those deductible temporary
differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from
the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the
taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of
adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay
normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly probable that future
economic benefit associated with it will flow to the Company.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of
the reporting period.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Current and deferred tax for the period

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other
comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting
for a business combination, the tax effect is included in the accounting for the business combination.

The Company recognises interest levied and penalties related to Income Tax assessments in the tax expanse.

Q USE OF ESTIMATES

The preparation of Financial Statements requires estimates and assumptions to be made that affect the reported amounts of
assets and liabilities on the date of Financial Statements and the reported amounts of revenues and expenses during the
reporting period. Difference between the actual results and the estimates are recognised in the period in which the results
are known/ materialised.

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Mar 31, 2018

NOTE ANNEXED TO AND FORMING PART OF ACCOUNTS FOR THE PERIOD ENDED ON 31st March, 2018

NOTE : SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

(A) SIGNIFICANT ACCOUNTING POLICIES :

1. BASIS OF ACCOUNTING:

The company maintains its accounts on accrual basis following the historical cost convention, in accordance with generally accepted accounting principles ["GAAP"] in compliance with the provisions of the Companies Act, 2013 and the Accounting Standards as specified by Rule 7(1) of the Companies (Accounts) Rules, 2014 issued by the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. Further, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also considered, wherever applicable except to the extent where compliance with other statutory promulgations overrides the same requiring a different treatment.

2. USE OF ESTIMATES:

The preparation of financial statements in conformity with generally accepted accounting principles (Indian GAAP) requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. REVENUE RECOGNITION

In appropriate circumstances, Revenue (Income) is recognized when no significant uncertainty as to determination or realization exists.

4. FIXED ASSETS AND DEPRECIATION:

Tangible Fixed assets are stated at cost of acquisition and installation, or construction and less of accumulated depreciation thereon. Cost is inclusive of duties, taxes, freight, insurance or other directly related expenses incurred to bring the assets in its working condition but exclusive of duties and taxes available for credit against duties and taxes payable.

Tangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as "capital work-in-progress".

Tangible Assets are depreciated under the Written Down Value Method as per the rates and in the manner prescribed under Schedule XIV of the Companies Act, 2013.

5. GOVERNMENT GRANTS

The company has received subsidy for construction of factory building and plant and machinery which has been shows as deduction from the gross value of asset to arrive at book value. The grant is thus recognized in the profit and loss statement over the useful life of a depreciable asset by way of a reduced depreciation charge.

6. IMPAIRMENT

The entity evaluates the impairment losses on the fixed assets whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. If such assets are considered to be impaired the impairment loss is then recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an assets net selling price and value in use. For the purpose of assessing impairment, assets are grouped at the smallest level for which there is separately identifiable cash flows.

7. EARNING PER SHARE

Basic earnings per equity share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effects of all dilutive potential equity shares if any.

8. TAXES ON INCOME

Current Tax

Provision for current income tax is made in accordance with the provision of Income tax Act 1961.

Deferred tax

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

Deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted by the balance-sheet date.

9. PROVISION, CONTINGENT LIABILITIES AND CONTIGENT ASSETS

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

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

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

c. The amount of the obligation can be reliably estimated. ii) Contingent liability is stated in the case of:

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

b) A possible obligation, unless the probability of outflow of resources is remote. In case possibility of obligation is not appropriately and precisely assessed creating obligation over the company, same is neither ascertained nor considered to be disclosed by the company.

iii) Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.

iii) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard AS-29 on "Provisions, Contingent Liabilities and Contingent Assets" issued by the Institute of Chartered Accountants of India.

10. INVENTORIES:

Stocks of goods / materials are valued at lower of cost or net realizable value and for this purpose, cost is determined on First-in-First-out basis.

(B) NOTES ON ACCOUNTS & RELEVANT DISCLOSURES :

1. CURRENT & NON-CURRENT ASSETS, LOANS AND ADVANCES AND LIABILITIES:

In the opinion of the Board, the Value on realization of current assets, loans and advances, if realized in the ordinary course of the business, shall not be less than the amount, which is stated, in the current year Balance sheet. The Provision for all known liabilities is reasonable and not in excess of the amount considered reasonably necessary.

2. DEFERRED TAX ASSETS/LIABILITIES :

Provision for current tax is made after taking into consideration benefits admissible under the provisions of Income-tax Act, 1961. Deferred tax resulting from timing difference between book and taxation profit is accounted for using the tax rates and laws that have been enacted or substantively enacted on the date of balance sheet. The deferred tax asset and liabilities are recognized and carried forward only to the extent that there is reasonable certainty that the assets will be realized in future.

Break up of Net Deferred Tax Liability into major components is given below:

SR. NO	PARTICULARS	Opening Balance As on 01.04.17	Add / (Less) Current Year	Deferred tax (asset)/Liability as on 31.03.18
01	Depreciation (Timing Difference)	(2,45,190)	(5,57,062)	(8,02,252)
02	Disallowance U/s. 43(B)	(53,887)	(2,61,430)	(3,15,317)
	TOTAL	(2,99,077)	(8,18,492)	(11,17,569)

3. PRELIMINARY EXPENSES:

One-fifth of the Preliminary Expenses i.e. Rs. 1,18,924/- has been written off during the year under review.

4. DEBIT/CREDIT BALANCES:

Balances of sundry debtors, creditors Loans and advances and other current asset and liabilities are subject to confirmation.

5. Micro, Small & Medium Enterprises Development Act, 2006 :

The company has no details about the identification of accounts relating to small scale industrial undertaking and as such information as required as per notification No. GSR 129(E) dated 22.02.1999 issued by Department of Company Affairs are not furnished. The company has no details about micro, small and medium enterprise for the purpose of disclosure required under Micro, Small & Medium Enterprises Development Act, 2006.

6. AUDITORS'' REMUNERATION:

Auditor''s Remuneration has been provided as below:

SR. NO.	PARTICULARS	REMUNERATION
01.	Statutory Audit Fees	1,00,000/-
02.	Tax Audit Fees	60,000/-
03	Company Law Matters	45,000/-
04	Taxation Matters	45,000/-
	TOTAL	2,50,000/-

7. DIRECTORS'' REMUNERATION :

Remuneration of Rs. 1,09,00,000/- have been given to following director by way of salary during the year under review.

SR. NO.	NAME OF DIRECTORS	REMUNERATION
01	Arvindbhai Jadavjibhai Kakadia	24,00,000/-
02	Kiritbhai Jadavjibhai Kakadia	24,00,000/-
03	Jadavjibhai Devrajbhai Kakadia	24,00,000/-
04	Kishorbhai Devrajbhai Kakadia	24,00,000/-
05	Hemang Chandrakant Baxi	13,00,000/-
	TOTAL	1,09,00,000/-

8. RELATED PARTY DISCLOSURES :

Related Party Disclosures as required under the Accounting Standard - 18 on "Related Party Disclosures" as notified in the Companies (Accounting Standards) Rules, 2006 are given below: