Colinz Laboratories Ltd. कंपली की लेखा नीति

Mar 31, 2025

1. A. Background

COLINZ LABORATORIES LIMITED (“the
Company”) is a public Company
domiciled in India and incorporated
under the provisions of Companies Act,
1956. The Company is incorporated with
an object to carry on the business of
manufacturing and trading in
Pharmaceutical formulations.

The Company''s shares are listed on
Bombay Stock Exchange (BSE) in India.

B. Basis of preparation

1.1. Statement of compliance with Ind- AS

The financial statements of the Company
have been prepared in accordance with
Indian Accounting Standards (Ind-AS)
notified under Companies (Indian
Accounting Standards) Rules, 2015, as
amended from time to time

1.2. Going concern

These financials are prepared on going
concern basis on following basis:

i) Company has earned profits
during the year and in the
preceding previous years;

ii) The future business seems
prosperous for the pharma
industry.

1.3. Functional and presentation of
currency

The financial statements are prepared in
Indian Rupees which is also the
Company''s functional currency. All
amounts are rounded to the nearest
rupees.

1.4. Fair value measurement

Fair value is the price that would be
received to sell an asset or paid to
transfer a liability in an orderly
transaction

between market participants at the
measurement date.

The Company uses valuation techniques
that are appropriate in the circumstances
and for which sufficient data are
available to measure fair value,
maximizing the use of relevant
observable inputs and minimizing the
use of unobservable inputs.

Fair values, as applicable, have been
determined for measurement and / or
disclosure purpose using methods as
prescribed in “Ind-AS 113 Fair Value
Measurement”.

1.5. Use of significant accounting
estimates, judgement and
assumptions

The preparation of these financial
statements in conformity with the
recognition and measurement principles
of Ind-AS requires management to make
estimates and assumptions that affect the
reported balances of assets and

liabilities, disclosure of contingent
liabilities as on the date of financial
statements and reported amounts of
income and expenses for the periods
presented. The Company based its
assumptions and estimates on

parameters available when the financial
statements were prepared. Estimates
and underlying assumptions are

reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in
the period in which the estimates are
revised and future periods are affected.

Estimates and Assumptions

Key assumptions concerning the future
and other key sources of estimation
uncertainty at the reporting date that
have a significant risk of causing a
material adjustment to the carrying
amounts of assets and liabilities within
the next financial year are described as
below. The estimates used in the
preparation of the financial statements
are prudent and reasonable. Difference
between the actual results and estimates
are recognised in the period in which the
results are known/ materialized.

1.6. Presentation and disclosure of financial
statement

All assets and liabilities have been classified
as current and non-current as per
Company''s normal operating cycle and other
criteria set out in Schedule III of the
Companies Act, 2013 for a company whose
financial statements are made in compliance
with the Companies (India Accounting
Standards) Rules, 2015.

Based on the nature of products / services
and time between acquisition of assets for
processing / rendering of services and their
realization in cash and cash equivalents,
operating cycle is less than 12 months,
however for the purpose of current/ non¬
current classification of assets and liabilities,
period of 12 months have been considered
as its normal operating cycle.

The Company presents assets and liabilities
in the balance sheet based on current / non¬
current classification.

An asset is treated as current when it is:

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

• Held primarily for the purpose of trading

• Expected to be realized within twelve
months after the reporting period, or

• Cash or cash equivalents 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 non-current.

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 the
settlement of the liability for at least twelve
months after the reporting period.

The Company classifies all other liabilities as
non-current.

1.7. Property, Plant and Equipment and
Depreciation

Recognition and measurement

Under the previous GAAP, property,
plant and equipment were carried at
historical cost less depreciation and
impairment losses, if any. On transition
to Ind-AS, the Company has availed the
optional exemption under Ind-AS 101
and accordingly it has used the carrying
value as at the date of transition i.e. 1^st
April 2016 as the deemed cost of the
property, plant & equipment under Ind-
AS.

Properties plant and equipment are
stated at their cost of acquisition. Cost of
an item of property, plant and equipment
includes purchase price including non¬
refundable taxes and duties, borrowing
cost directly attributable to the
qualifying asset, any costs directly
attributable to bringing the asset to the
location and condition necessary for its
intended use and the present value of the
expected cost for the

dismantling/decommissioning of the
asset.

Subsequent costs are included in the
asset''s carrying amount or recognised as
a separate asset, as appropriate, only
when it is probable that future economic
benefits associated with the item will
flow to the Company. All other repair and
maintenance costs are recognised in
statement of profit and loss as incurred.

There is no Capital work-in-progress as
on 31.03.2025.

Depreciation and useful lives

Depreciation on the property, plant and
equipment (other than freehold land and
capital work in progress) is provided on a
straight-line method (SLM) over their
useful lives which is in consonance of
useful life mentioned in Schedule II to the
Companies Act, 2013. Depreciation in
respect of fixed assets put to use during the
year is provided on a pro-rata basis with
reference to the date of installation of
assets.

De-recognition:

An item of property, plant and equipment and
any significant part initially recognised is de¬
recognised upon disposal or when no future
economic benefits are expected from its use or
disposal. Any gain or loss arising on de¬
recognition of the asset (calculated as the
difference between the net disposal proceeds
and the carrying amount of the asset) is
included in the statement of profit and loss
when the asset is de-recognised.

1.8. Inventories:

Raw Material, packing material, stock in trade,
work in progress and finished goods are
valued at lower of cost and net realizable value
as per Ind- AS - 2.

Costs of finished goods, and work in
progress are determined by taking material
cost (net of GST) and relevant appropriate
overheads, but excluding borrowing costs.

1.9. Revenue recognition:

Revenue is recognised to the extent that
it is probable that the economic benefits will
flow to the Company and the revenue can be

reliably measured. Revenue is measured at the
fair value of the consideration received or
receivable, taking into account contractually
defined terms of payment and excluding taxes
or duties collected on behalf of the
government and discounts given to the
customers. The Company has applied the
guidelines mentioned in Ind- AS 18 for
Revenue Recognition.

Interest income is recognized on a time
proportionate basis taking into account the
amount outstanding and the rate as
applicable.

Dividend is recognized on actual receipt basis.

1.10. Employee benefits - Retirement
benefits

Defined Contribution Plan:

Post- Employment benefit in the form of
Provident Fund for eligible employees, the
Company has defined Contribution Plan. This
is administered by the Regional Provident
Fund Commissioner. Provident Fund is
classified as Defined Contribution Plan, as the
Company has no further obligation or liability
beyond making the contributions and
depositing the same with the authorities. The
Company''s contribution is defined by the
Provident

Fund Act and the provisions enacted from
time to time, and this contribution is charged
to Profit & Loss Account.

Leave Encashment Policy:

The Company does not have the policy of
Leave Encashment and hence there is no
liability on this account.

T ermination Benefits:

Termination Benefit, if any, are recognized
as an expense as and when incurred.

Gratuity:

The Gratuity is paid by the company as per
the Gratuity Act. As required by IND- AS 19
“Employee Benefits”, the liability is
ascertained based on the Actuarial valuation

and the current liability has been provided
for in the Profit & Loss account and the long
term gratuity liability has been disclosed as
the Contingent Liability in the Notes to
Accounts.

1.11. Taxes on income:

Tax expense comprises current and
deferred tax. Provision for current tax is
made after taking into consideration
benefits admissible under the provisions of
the Income Tax Act, 1961.

The deferred tax resulting from timing
difference between taxable and accounting
income is accounted using the tax rates and
laws that are enacted or substantively
enacted as on the balance sheet date.
Deferred Tax asset is recognised and carried
forward only to the extent that there is
virtual certainty that the asset will be
realized in future.

recognised in other comprehensive income
and accumulated in the ''Reserve for equity
instruments through other comprehensive
income''. The cumulative gain or loss is not
reclassified to profit or loss on disposal of
the investments.

There are no equity investments which are
held for trading.

1.13. Cash and cash equivalent:

Cash and cash equivalents include cash in
hand, bank balances, deposits with banks
(other than on lien) and all short term and
highly liquid investments that are readily
convertible into known amounts of cash and
are subject to an insignificant risk of changes
in value.

For the purpose of cash flow statement, cash
and cash equivalent as calculated above also
includes outstanding bank overdrafts as they
are considered an integral part of the
Company''s cash management.

1.14. Cash-flow statement:

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

1.12. Investments in equity instruments at
fair value through other comprehensive
income (FVTOCI).

The quoted and unquoted Equity
investments are initially measured at fair
value plus transaction costs. Subsequently,
they are measured at fair value with gains
and losses arising from changes in fair value

---

Mar 31, 2024

Significant Accounting Policies

Estimates and Assumptions

Key assumptions concerning the future and
other key sources of estimation
uncertainty at the reporting date that have
a significant risk of causing a material
adjustment to the carrying amounts of
assets and liabilities within the next
financial year are described as below. The
estimates used in the preparation of the
financial statements are prudent and
reasonable. Difference between the actual
results and estimates are recognised in the
period in which the results are known/
materialized.

1.6. Presentation and disclosure of financial
statement

All assets and liabilities have been classified as
current and non-current as per Company''s
normal operating cycle and other criteria set
out in Schedule III of the Companies Act, 2013
for a company whose financial statements are
made in compliance with the Companies (India
Accounting Standards) Rules, 2015.

Based on the nature of products / services and
time between acquisition of assets for
processing / rendering of services and their
realization in cash and cash equivalents,
operating cycle is less than 12 months,
however for the purpose of current/ non¬
current classification of assets and liabilities,
period of 12 months have been considered as
its normal operating cycle.

The Company presents assets and liabilities in
the balance sheet based on current / non¬
current classification.

An asset is treated as current when it is:

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

• Held primarily for the purpose of trading

• Expected to be realized within twelve months
after the reporting period, or

• Cash or cash equivalents 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 non-current.

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 the
settlement of the liability for at least twelve
months after the reporting period.

The Company classifies all other liabilities as
non-current.

1.7. Property, Plant and Equipment and
Depreciation

Recognition and measurement

Under the previous GAAP, property, plant
and equipment were carried at historical
cost less depreciation and impairment
losses, if any. On transition to Ind-AS, the
Company has availed the optional
exemption under Ind-AS 101 and
accordingly it has used the carrying value
as at the date of transition i.e. 1^st April 2016
as the deemed cost of the property, plant &
equipment under Ind- AS.

Properties plant and equipment are stated
at their cost of acquisition. Cost of an item
of property, plant and equipment includes
purchase price including non-refundable
taxes and duties, borrowing cost directly
attributable to the qualifying asset, any
costs directly attributable to bringing the
asset to the location and condition
necessary for its intended use and the
present value of the expected cost for the
dismantling/decommissioning of the asset.

Subsequent costs are included in the
asset''s carrying amount or recognised as a
separate asset, as appropriate, only when it
is probable that future economic benefits
associated with the item will flow to the
Company. All other repair and
maintenance costs are recognised in
statement of profit and loss as incurred.

There is no Capital work-in-progress as on
31.03.2024.

Depreciation and useful lives

Depreciation on the property, plant and
equipment (other than freehold land and
capital work in progress) is provided on a
straight-line method (SLM) over their useful
lives which is in consonance of useful life
mentioned in Schedule II to the Companies
Act, 2013. Depreciation in respect of fixed
assets put to use during the year is provided
on a pro-rata basis with reference to the date
of installation of assets.

De-recognition:

An item of property, plant and equipment and
any significant part initially recognised is de¬
recognised upon disposal or when no future
economic benefits are expected from its use or
disposal. Any gain or loss arising on de¬
recognition of the asset (calculated as the
difference between the net disposal proceeds
and the carrying amount of the asset) is included
in the statement of profit and loss when the asset
is de-recognised.

1.8. Inventories:

Raw Material, packing material, stock in trade,
work in progress and finished goods are valued
at lower of cost and net realizable value as per
Ind- AS - 2.

Costs of finished goods, and work in
progress are determined by taking material cost
(net of GST) and relevant appropriate
overheads, but excluding borrowing costs.

1.9. Revenue recognition:

Revenue is recognised to the extent that it
is probable that the economic benefits will flow
to the Company and the revenue can be reliably
measured. Revenue is measured at the fair value
of the consideration received or receivable,
taking into account contractually defined terms
of payment and excluding taxes or duties
collected on behalf of the government and
discounts given to the customers. The Company
has applied the guidelines mentioned in Ind- AS
18 for Revenue Recognition.

Interest income is recognized on a time
proportionate basis taking into account the
amount outstanding and the rate as applicable.

Dividend is recognized on actual receipt basis.

1.10. Employee benefits - Retirement
benefits

Defined Contribution Plan:

Post- Employment benefit in the form of
Provident Fund for eligible employees, the
Company has defined Contribution Plan. This is
administered by the Regional Provident Fund
Commissioner. Provident Fund is classified as
Defined Contribution Plan, as the Company has
no further obligation or liability beyond making
the contributions and depositing the same with
the authorities. The Company''s contribution is
defined by the Provident

Fund Act and the provisions enacted from time
to time, and this contribution is charged to Profit
& Loss Account.

Leave Encashment Policy:

The Company does not have the policy of
Leave Encashment and hence there is no
liability on this account.

T ermination Benefits:

Termination Benefit, if any, are recognized
as an expense as and when incurred.

Gratuity:

The Gratuity is paid by the company as per the
Gratuity Act. As required by IND- AS 19
“Employee Benefits”, the liability is
ascertained based on the Actuarial valuation
and the current liability has been provided for
in the Profit & Loss account and the long term
gratuity liability has been disclosed as the
Contingent Liability in the Notes to Accounts.

1.11. Taxes on income:

Tax expense comprises current and
deferred tax. Provision for current tax is made
after taking into consideration benefits
admissible under the provisions of the Income
Tax Act, 1961.

The deferred tax resulting from timing
difference between taxable and accounting
income is accounted using the tax rates and
laws that are enacted or substantively enacted
as on the balance sheet date. Deferred Tax
asset is recognised and carried forward only to
the extent that there is virtual certainty that
the asset will be realized in future.

1.12. Investments in equity instruments at
fair value through other comprehensive
income (FVTOCI).

The quoted and unquoted Equity investments
are initially measured at fair value plus
transaction costs. Subsequently, they are
measured at fair value with gains and losses
arising from changes in fair value recognised
in other comprehensive income and
accumulated in the ''Reserve for equity
instruments through other comprehensive
income''. The cumulative gain or loss is not
reclassified to profit or loss on disposal of the
investments.

There are no equity investments which are
held for trading.

1.13. Cash and cash equivalent:

Cash and cash equivalents include cash in hand,
bank balances, deposits with banks (other than
on lien) and all short term and highly liquid
investments that are readily convertible into
known amounts of cash and are subject to an
insignificant risk of changes in value.

For the purpose of cash flow statement, cash and
cash equivalent as calculated above also
includes outstanding bank overdrafts as they
are considered an integral part of the Company''s
cash management.

1.14. Cash-flow statement:

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

---

Mar 31, 2014

1.1) The company maintains its accounts on accrual basis following the historical cost convention In compliance with the accounting standards specified by Institute of Chartered Accountants of India, referred to in Section 211 ( 3C ) of the Companies Act, 1956.

1.2) i) Tangible assets are stated at original cost net of tax / duty credits availed, if any.

ii) Depreciation has been provided under Straight Line Method at the applicable rates, as provided under Schedule XIV to the Companies Act, 1956. Depreciation on additions /deletions of assets during the year is provided on a pro-rata basis

1.3) Capital work in progress:

The capital work in progress as on 31-03-2014 is Rs. Nil

1.4) Inventories:

Raw materials and packing materials are valued at cost on FIFO basis as per revised Accounting Standard AS-2 of the Institute of Chartered Accountants of India. Finished goods and semi-finished goods are valued at lower of cost or net realizable value.

1.5) Investments:

Investments are stated at cost.

1.6) Revenue Recognition

i) Income From sales of goods is recognized upon transfer of significant risk and rewards of ownership of the goods to the customers which generally coincides with delivery and acceptance of goods sold; sales are shown inclusive of excise duty and exclusive of Sales Tax (VAT).

ii) Other income:

Includes interest on Fixed Deposits with Bank and dividends received.

1.7) Research and Development Expenses:

No capitalization of Research and Development expenses is made since no capital expenditure on research and development expenditure has been incurred during the year.

1.8) Foreign Currency Transactions:

Export earnings of Rs.Nil (Previous Year - Rs.NIL)

Foreign Exchange Outgo of Rs.NIL (Previous Year - Rs. NIL /-)

1.9) Retirement Benefits:

Retirement benefit or Post separation expenses in respect of gratuity is not provided for, and liability is not ascertained.

i) Privilege leave entitlement: Privilege leave entitlements are recognized as a liability as and when the same is encashed by the employees.

ii) Provident Fund: Contribution to Government provident Fund are made as per the provisions regularly.

1.10) The figures of previous year have been regrouped wherever necessary.

1.11) As per the available records, there is no outstanding dues to enterprises registered under Micro, Small and Medium Enterprises Development Act, 2006, at the end of the year. Further no interest has been paid or payable on delayed payment of dues, if any, to such enterprises during the year.

1.12) Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs.Nil [ Previous Year : Rs. Nil ]

1.13) Contingent liabilities :

Contingent liabilities as defined in Accounting Standard 29 on " Provisions, Contingent Liabilities and Contingent Assets" are disclosed by ways of notes to the accounts. Disclosures is not made if the possibility of an outflow of future economics benefits is remote. Provision is made if it is probable that an outflow of future economics benefits will be required to settle the Obligation.

1.14) Auditors Remuneration : 2013-2014 2012-2013

Audit Fees Rs. 67,416 Rs. 67,416

Tax Audit Fees Rs. 11,236 Rs. -

Other services Rs. 13,483 Rs. 13,236

Rs. 92,135 Rs. 80,652

1.15) Segment Reporting

The Company is engaged in pharmaceutical formulation business which as per Accounting Standard - AS 17 is considered the only reportable business segment.

1.16) Related party transaction

As required by Accounting Standard - AS 18 ''Related Parties Disclosure'' issued by the Institute of Chartered Accountants of India are as follows :

i) Key Management personnel

ii) Details of Transactions.

Dr. L. S. Mani. Remuneration paid Rs. 8,85,500/-

Rent paid for the premise hired Rs. 1,80,000/-

1.17) With regard to loan given to Company, the Board of Directors are of the opinion that, no provision for doubtful debt is required to be made as the amount being recovered in installments

1.18) Earning per share

The Company reports Earning Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share ". Basic EPS is computed by dividing the net profit for the year by the weighted Average number of Equity Shares outstanding during the year. Diluted EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

1.19) Provisions for Current and Deferred Tax.

i) Provision for Current Tax is made after taking into consideration benefits admissible under the provision of Income Tax Act 1961.

ii) Deferred tax resulting from timing differences between taxable and accounting income is accounted for using the tax rate and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset arising on account of brought forward unabsorbed depreciation is recognized only to the extent there is a reasonable certainty of realization.

Deferred Tax Liability :

The break up of the deferred tax liability as at 31st March, 2014 is as under:

2013-14 2012-13 Rupees Rupees

Deferred Tax Liability :

Difference between book depreciation and depreciation as per Income Tax Act, 1961. 60,63,214 62,55,558

60,63,214 62,55,558 Deferred Tax Assets: 20,88,139 26,51,302

Net Deferred Tax Liability 39,75,075 36,04,256

1.20) AS - 28 Impairment of Assets.

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is not less than the recoverable amount of those assets. Hence there is no impairment loss on the assets of the company. In the opinion of Board of Directors, the Current Assets, Loans and advances have a value which on the realization in the ordinary course of business would at least be equal amount stated in the Balance sheet.

---

Mar 31, 2013

1.1) The company maintains its accounts on accrual basis following the historical cost convention Incompliance with the accounting standards specified by Institute of Chartered Accountants of India , referred to in Section 211 ( 3C ) of the Companies Act, 1956.

1.2)i) Tangible assets are stated at original cost net of tax / duty credits availed, if any.

ii) Depreciation has been provided under Straight Line Method at the applicable rates, as provided under Schedule XTV to the Companies Act, 1956. Depreciation on additions /deletions of assets during the year is provided on a pro-rata basis

1.3) Capital work in progress:

The capital work in progress as on 31-03-2013 is Rs. Nil

1.4) Inventories:

Raw materials and packing materials are valued at cost on FIFO basis as per revised Accounting Standard AS-2 of the Institute of Chartered Accountants of India. Finished goods and semi-finished goods are valued at lower of cost or net realizable value.

1.5) Investments: Investments are stated at cost.

1.6) Revenue Recognition

i) Income from sales of goods is recognized upon transfer of significant risk and rewards of ownership of the goods to the customers which generally coincides with delivery and acceptance of goods sold; sales are shown inclusive of excise duty and exclusive of Sales Tax (VAT).

ii) Other income:

Includes interest on Fixed Deposits with Bank and dividends received.

1.7) Research and Development Expenses:

No capitalization of Research and Development expenses is made since no capital expenditure on research and development expenditure has been incurred during the year.

1.8) Foreign Currency Transactions:

Export earnings of Rs.Nil (Previous Year - Rs.NIL)

Foreign Exchange Outgo of Rs.NIL (Previous Year - Rs. NIL /-)

1.9)Retirement Benefits:

Retirement benefit or Post separation expenses in respect of gratuity is not provided for, and liability is not ascertained.

i) Privilege leave entitlement: Privilege leave entitlements are recognized as a liability as and when the same is encashed by the employees.

ii) Provident Fund: Contribution to Government provident Fund are made as per the provisions regularly.

1.10) The figures of previous year have been regrouped wherever necessary.

1.11)As per the available records, there is no outstanding dues to enterprises registered under Micro, Small and Medium Enterprises Development Act, 2006, at the end of the year. Further no interest has been paid or payable on delayed payment of dues, if any, to such enterprises during the year.

1.12)Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs.Nil [ Previous Year : Rs. Nil ]

1.13)Contingent liabilities :

Contingent liabilities as defined in Accounting Standard 29 on "Provisions, Contingent Liabilities and Contingent Assets" are disclosed by ways of notes to the accounts. Disclosures is not made if the possibility of an outflow of future economic benefits is remote. Provision is made if it is probable that an outflow of future economic benefits will be required to settle the Obligation.

1.15)Segment Reporting

The Company is engaged in pharmaceutical formulation business which as per Accounting Standard - AS 17 is considered the only reportable business segment.

---

Mar 31, 2010

A] General:

The Financial statements are prepared under historical cost convention on an accrual basis and comply with the accounting standards referred to in Section 211 ( 3C ) of the Companies Act, 1956.

b] Fixed Assets:

Fixed assets are stated at original cost net of tax / duty credits availed, if any.

c] Capital work in progress:

The capital work in progress as on 31-03-2010 is Rs. Nil

d] Depreciation:

Fixed Assets are depreciated under Straight Line Method. The applicable rates are as provided under Schedule XIV to the Companies Act, 1956. Depreciation on additions / deletions of assets during the year is provided on a pro-rata basis.

e] Inventories:

Raw materials and packing materials are valued at cost on FIFO basis as per revised Accounting Standard AS-2 of the Institute of Chartered Accountants of India. Finished goods and semi-finished goods are valued at lower of cost or net realizable value.

f] Investments: Investments are stated at cost.

g] Sales:

Sales are recognized at the time of dispatch of goods. All sales are shown inclusive of excise duty and exclusive of Sales Tax (VAT). h] Other income:

Includes sales tax refund received, interest on Fixed Deposits with Bank and dividends received.

i] Research and Development Expenses:

No capitalization of Research and Development expenses is made since no capital expenditure on research and development expenditure has been incurred during the year.

j] Foreign Currency Transactions:

Export earnings of Rs.Nil (Previous Year - Rs.NIL)

Foreign Exchange Outgo of Rs.NIL (Previous Year - Rs. 1,17,024/-) k] Retirement Benefits:

Retirement benefit in respect of gratuity is not provided for, and liability is not ascertained.

Privilege leave entitlement: Privilege leave entitlements are recognized as a liability as and when the same is encashed by the employees.

Provident Fund: Contribution to Government provident Fund are made as per the provisions regularly.

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Mar 31, 2009

A General:

The Financial statements are prepared under historical cost convention on an accrual basis and comply with the accounting standards referred to in Section 211 ( 3C ) of the Companies Act, 1956

b Fixed Assets:

Fixed assets are stated at original cost net of tax / duty credits availed, if any

c Capital work in progress:

The capital work in progress as on 31-03-2009 is Rs Nil

d Depreciation:

Fixed Assets are depreciated under Straight Line Method The applicable rates are as provided under Schedule XIV to the Companies Act, 1956 Depreciation on additions / deletions of assets during the year is provided on a pro-rata basis

e Inventories:

Raw materials and packing materials are valued at cost on FIFO basis as per revised Accounting Standard AS-2 of the Institute of Chartered Accountants of India Finished goods and semi-finished goods are valued at lower of cost or net realisable value

f Investments :

Investments are stated at cost

g Sales:

Sales are recognised at the time of dispatch of goods All sales are shown inclusive of excise duty and exclusive of Sales Tax (VAT)

h Other income:

Includes interest on income tax refund received, interest on Fixed Deposits with Bank, dividends received and profit on motor car sold

i Research and Development Expenses:

No capitalisation of Research and Development expenses is made since no capital expenditure on research and development expenditure has been incurred during the year

j Foreign Currency Transactions :

Export earnings of Rs Nil ( Previous Year - RsNIL )

Foreign Exchange Outgo of Rs 1,17,024 ( Previous Year - Rs NIL )

k Retirement Benefits:

Retirement benefit in respect of gratuity is not provided for, and liability is not ascertained

Retirement benefit policy of the Company differs with AS15 of the Institute of Chartered Accountants of India (Employee Benefit) Quantification of amount is not possible as actuarial valuation is not done

Privilege leave entitlement: Privilege leave entitlements are recognized as a liability as and when the same is encashed by the employees

Provident Fund : Contribution to Government provident Fund is made as per the provisions regularly