Goldcoin Health Foods Ltd. कंपली की लेखा नीति

Mar 31, 2025

II Summary of Material Accounting Policies

a) Foreign Currency Transactions and Translation

i) Functional and presentation currency The financial statements are presented in Indian Rupee (INR), which is entity''s functional and presentation currency

ii) Transactions and Balances

Foreign currency transactions are translated into the functional currency, for initial recognition, using the exchange rates at the dates of the transactions. All
foreign currency denominated monetary assets and liabilities are translated at the exchange rates on the reporting date. Exchange differences arising on
settlement or translation of monetary items are recognised in Statement of Profit and Loss except to the extent of exchange differences which are regarded as
an adjustment to interest costs on foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets which are
capitalised as cost of assets. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

b) Cash & Cash Equivalents

Cash comprises cash on hand and demand deposit with banks. Cash equivalents are short-term balances (with an original maturity of three months or less
from the date of acquisition), that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

c) Property, Plant and Equipment

Recognition and Measurement

Property, Plant and Equipment, including Capital Work in Progress, are stated at cost of acquisition or construction less accumulated depreciation and
impairment losses, if any. Borrowing cost relating to acquisition / construction of Property, Plant and Equipment which takes substantial period of time to get
ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use. The present value of the expected
cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. If
significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of
property, plant and equipment.

Subsequent Measurement

Subsequent expenditure related to an item of Property, Plant and Equipment are included in its carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that the future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.
Subsequent costs are depreciated over the residual life of the respective assets. All other expenses on existing Property, Plant and Equipment, including day-
to-day repair and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit and Loss for the period during which such

expenses are incurred.

Capital Work in Progress

Expenditure related to and incurred during implementation of capital projects to get the assets ready for intended use is included under “Capital Work in
Progress”. The same is allocated to the respective items of property plant and equipment on completion of construction/ erection of the capital project/ property
plant and equipment. The cost of asset not ready for its intended use before the year end & capital inventory are disclosed under capital work in progress.
Depreciation

Depreciation is provided using straight-line method as specified in Schedule II to the Companies Act, 2013 or based on technical estimates. Depreciation on
assets added / disposed off during the year is provided on pro-rata basis with reference to the date of addition / disposal.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from continued use of the
asset. Any gain or loss arising on the disposal or retirement of property, plant and equipment is determined as the difference between the sale proceeds and
the carrying amount of the assets and is recognised in Statement of Profit and Loss,

d) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial
assets and financial liabilities are initially measured at fair value, except for trade receivables which are measured at transaction price. The financial assets
comprise of trade receivables, cash and cash equivalents, other bank balances and deposits, interest accrued, security deposits, intercorporate deposits, contract
assets and other receivables. These assets are measured subsequently at amortised cost. The financial liabilities comprise of borrowings, lease liabilities,
retention and capital creditors, interest accrued, deposit from customers, trade and other payables.

Financial assets and financial liabilities are offset when the Company has a legally enforceable right (not contingent on future events) to off-set the recognised
amounts either to settle on a net basis, or to realise the assets and settle the liabilities simultaneously. An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received,
net of direct issue costs.

A) Financial Assets

Initial Recognition

All financial assets, except trade receivables, are initially recognised at fair value.

Subsequent Measurement
Business Model Assessment

The Company makes an assessment of the objectives of the business model in which a financial asset is held because it best reflects the way business is
managed and information is provided to management. The assessment of business model comprises the stated policies and objectives of the financial assets,
management strategy for holding the financial assets, the risk that affects the performance etc. Further management also evaluates whether the contractual
cash flows are solely payment of principal and interest considering the contractual terms of the instrument. The subsequent measurement of financial assets
depends on their classification, as described below:

1) At amortised cost

A financial asset is measured at the amortised cost if both the following conditions are met: (a) The asset is held within a business model whose objective is
to hold assets for collecting contractual cash flows, and (b) Contractual terms of the asset give rise, on specified dates, to cash flows that are solely payments
of principal and interest (SPPI) on the principal amount outstanding. After initial measurement, such financial assets are subsequently measured at amortised
cost using the Effective Interest Rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the Statement of Profit and Loss. The losses arising from
impairment are recognised in the Statement of Profit and Loss. This category generally applies to trade and other receivables. The effective interest rate is the
rate that exactly discounts estimated future cash receipts (including all fees and transaction costs and other premiums or discounts) through the expected life
of the financial assets, or where appropriate, a shorter fieriod, to the gross carrying amount on initial recognition.

2) At Fair Value through Other Comprehensive Income (FVTOCI)

(a) financial asset is classified as at the FVTOCI if both of the following criteria are met: (a) The objective of the business model is achieved both by collecting
contractual cash flows and selling the financial assets, and

(b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount
outstanding.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are
recognised in the Other Comprehensive Income (OCI) and on derecognition, cumulative gain or loss previously recognised in OCI is reclassified to Statement
of Profit and Loss. For equity instruments, the Company may make an irrevocable election to present subsequent changes in the fair value in OCI. If the

Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the
OCI. There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on sale of investment.

3) At Fail- Value through Profit & Loss (FVTPL)

Financial assets which are not measured at amortised cost or FVTOCI and are held for trading are measured at FVTPL. In addition, the Company may elect
to designate a debt instrument, which otherwise meets amortised cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so
reduces or eliminates a measurement or recognition inconsistency (referred to as ‘accounting mismatch’).

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. The Company may make an irrevocable election to present in other comprehensive
income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial
recognition and is irrevocable. If the Company decides to classify an equity instrument as FVTOCI, then all fair value change s on the instrument, excluding
dividends, are recognised in the OCI. There is no recycling of the amounts from OCI to profit and loss, even on sale of investment. However, the Company
may transfer the cumulative gain or loss within equity. Equity instruments included within the FVTPL category are measured at fair value with all changes
recognised in the profit and loss.

Derecognition

On derecognition of a financial asset, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the
cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in Statement of Profit and Loss if
such gain or loss would have otherwise been recognised in Statement of Profit and Loss on disposal of that financial asset.

Impairment of financial assets

The Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the financial assets and credit risk exposure.
The Company assesses on a forward looking basis the expected credit losses associated with its receivables based on historical trends and past experience.
The Company follows ''Simplified Approach’ for recognition of impairment loss allowance on all trade receivables or contractual receivables. ECL is the
difference between all contracted cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to
receive, discounted at the original EIR. ECL impairment loss allowance (or reversal) recognised during the period is recognised as income / (expense) in the
Statement of Profit and Loss.

B) Financial Liabilities

Financial liabilities are classified, at initial recognition as at amortised cost or fair value through profit or loss. The measurement of financial liabilities depends
on their classification, as described below:

1) At amortised cost

This is the category most relevant to the Company. After initial recognition, financial liabilities are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in Statement of Profit and Loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the Statement of Profit and Loss. The effective interest method is a method of calculating the amortised cost of a
financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or
discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

2) At fair value through profit or loss (FVTPL)

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition
as such. Subsequently, any changes in fair value are recognised in the Statement of Profit and Loss.

Derecognition of Financial Liability

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. An exchange with a lender of debt instruments
with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.
Similarly, a substantial modification of the terms of an existing financial liability is accounted for as an extinguishment of the original financial liability and
the recognition of a new financial liability.

C) Derivative financial instruments

Initial recognition and subsequent measurement

The Company uses derivative financial instruments such as forward and options currency contracts to hedge its foreign currency risks. Such derivative financial
instruments are initially recognised and subsequently measured at fair value through profit or loss (FVTPL). Derivatives are carried as financial assets when
the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivative

financial instrument are recognised in the Statement of Profit and Loss and reported with foreign exchange gains/ (loss). Changes in fair value and
gains/(losses) on settlement of foreign currency derivative financial instruments relating to borrowings, which have not been designated as hedge are recorded
as finance cost.

e) Income Taxes

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred taxes are
recognised in Statement of Profit and 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 recognised in other comprehensive income or directly in equity, respectively.

f) Current Tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Current income
taxfincluding Minimum Alternate Tax (MAT)) is measured at the amount expected to be paid to the tax authorities in accordance with the Income-Tax Act,
1961 enacted in India. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted, at the reporting date. Current
income tax relating to items recognised outside the statement of profit and loss is recognised outside the statement of profit and loss (either in other
comprehensive income (OCI) or inequity). Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable
tax regulations are subject to interpretation and establishes provisions where appropriate.

g) Deferred Tax

Deferred tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and
their carrying amount, except when the deferred tax arises from the initial recognition of an asset or liability in a transaction that is not a business combination
and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred tax assets are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losse s can be
utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled,
based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax includes MAT tax credit. The Company
recognises tax credits in the nature of MAT credit as an asset only to the extent that there is convincing evidence that the Company will pay normal income
tax during the specified period, i.e., the period for which tax credit is allowed to be carried forward. In the year in which the Company recognises tax credits
as an asset, the said asset is created by way of tax credit to the statement of profit and loss. The Company reviews such tax credit asset at each reporting date
to assess its recoverability.

h) Inventories

Inventories are valued at lower of cost or net realisable value. ii)Cost of inventories have been computed to include all costs of purchases, cost of conversion,
all non-refundable duties & taxes and other costs incurred in bringing the inventories to their present location and condition, iii) The basis of calculating cost
for traded goods and stores and spares is weighted average cost method. For certain categories of traded goods it is determined based on weighted average
cost of respective commodity lot basis. iv)Net realisable value is the estimated selling price in the ordinary course of business, less estimated cost of completion
and estimated cost necessary to make the sale. Necessary adjustment for shortage / excess stock is given based on the available evidence and past experience
of the Company.

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Mar 31, 2024

NOTE: 1.1 SIGNIFICANT ACCOUNTING POLICIES

This note provides a list of the significant accounting policies adopted in the preparation of these standalone financial statements.
These Policies have been consistently applied to all the years presented, unless otherwise stated.

(i) Corporate Information

Goldcoin Health Foods Limited (bearing CIN L15419GJ1989PLC012041) was incorporated on March 27, 1989 under the
Companies Act, 1956 with the Registrar of Companies of Ahmedabad. The Company is currently engaged in the business of
dealing and trading in milk and other related materials on retail as well as on wholesale basis. The Company is listed on Bombay
Stock exchange (BSE) [Script code: GOLDCOIN],

(ii) Basis Of Preparation

The financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the
‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (‘Act’) read with of
the companies (Indian Aecounting Standards) Rules, 2015 as amended from time to time and other aceounting principal generally
accepted in India.

(iii) Basis of Measurement

These financial statements prepared and presented under the historical cost convention with the exception of certain assets and
liabilities that are required to be carried at fair value by Ind AS. The fair value is the price that would be received to sell an asset
or paid to transfer liability in an orderly transaction between the market participant at the measurement date.

The Financial Statements have been presented in Indian Rupees (INR), whieh is also the eompany’s function currency. All values
are rounded off to the nearest rupees, unless otherwise indicated.

(iv) Revenue Recognition

Effective 1st April, 2018, the Company has applied Ind AS 115 - Revenue from Contracts with Customers. Pursuant to adoption
of Ind AS 115, Revenue from contracts with customers are recognized when the control over the goods or services promised in
the contract are transferred to the customer. The amount of revenue recognized depicts the transfer of promised goods and
services to customers for an amount that reflects the consideration to which the Company is entitled to in exchange for the

goods or services.

(v) Use of Estimates

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the eompany and
are based on historical experience and various other assumptions and factors (including expectations of future events) that the
company believes to be reasonable under the existing circumstances. Difference between actual results and estimates are recognized
in the period in which the results are known/materialized. The said estimates are based on the facts and events, that existed as at
the reporting date, or that occurred after that due provide additional evidence about conditions existing as at the reporting date.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimates are revised and future periods affected. Significant judgements and estimates about the
carrying amount of assets and liabilities include useful lives of tangible and intangible assets, impairment of tangible assets,
intangible assets ineluding goodwill, investments, employee benefits and other provisions and recoverability of deferred tax

assets.

(vi) Cash Flow Statement

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

(vii) Property, Plant and Equipment (PPE)

All items of property, plant and equipment are stated at historical cost of acquisition/construction (net of recoverable taxes) less
accumulated depreciation and impairment losses, if any.

Freehold land is carried at historical cost. Subsequent costs are included in asset’s carrying amount or recognized at a separate
asset, as appropriate, only when it is probable that future eeonomie benefits assoeiated with the item will flow to the group and
the cost of the item measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized
when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are
incurred.

Historical cost includes expenditure that is directly attributable to the acquisition as well as construction/installation of the items.
Rehabilitation and resettlement expenses incurred after initial acquisition of the assets are expensed to profit or loss in the year
in which they are incurred.

The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respeetive
asset if the recognition criteria for a provision are met.

Capital Work-in-progress includes expenditure that is directly attributable to the acquisition/construction of assets, which are yet
to be commissioned.

An item of property, plant or equipment is derecognized 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 recognized in the statement of profit and loss.

Depreciation on Property, Plant & Equity (PPE) is provided in the manner prescribed in Schedule II to the Companies Aet, 2013
read with relevant circulars issued by the Department of Company Affairs. Depreciation on assets acquired/disposed off during the
year is provided on pro-rata basis.

Depreciable amount of an asset is the cost of an asset less its estimated residual value. Depreciation on PPE, including assets
taken on lease, other than freehold land is charged based on Written down method on an estimated useful life as prescribed in
Schedule IT to the Comnanies Act 2013.

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Mar 31, 2015

(i) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS.

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

(ii) REVENUE RECOGNITION.

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

(iii) FIXED ASSETS AND DEPRECIATION.

Fixed Assets are value at cost less depreciation. The depreciation has been calculated as prescribed in Companies Act, 2013 on single shift and if the Asset is purchased during the year depreciation is provided on the days of utilisation in that year.

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Mar 31, 2014

(i) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS.

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

(ii) REVENUE RECOGNITION.

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

(iii) FIXED ASSETS AND DEPRECIATION.

Fixed Assets are value at cost less depreciation. The depreciation has been calculated at the rates provided as per Companies Act, 1956 on single shift and if the Asset is purchased during the year depreciation is provided on the days of utilisation in that year.

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Mar 31, 2013

(i) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS.

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

(ii) REVENUE RECOGNITION.

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

(iii) FIXED ASSETS AND DEPRECIATION.

Fixed Assets are value at cost less depreciation. The depreciation has been calculated at the rates provided as per Companies Act, 1956 on single shift and if the Asset is purchased during the year depreciation is provided on the days of utilisation in that year.

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Mar 31, 2012

1. Bases of Accounting :

The financial statemeHits are prepared under the historical cost convention or [he Accrual Concept of accountancy in accordance with the accounting principles generally accepted In India and they comply with the Accounting Stardards prescribed in the Companies Accounting Standard! Rules, 2006 issued by the Central Governmcdt to the extent appl-cjple and with the applicable provision! of the companies Act, 1956.

7 Use of Estimates ;

The preparation of Financial statements in conformity with the Accounting standards generally accepted In india requires, the management to make estimates and assumptions that affect the reported amounts of' assets and liabilities and disclosure of contingent liabilities as at the date of tt.e financial statements and reported amounts of revenues and expenses for the year Actual results could differ from These estimates. Any revision to accounting estimates is recognised prospectively In current and future periods,

3 Fixed Assets and Depreciation :

A Fixed Assets arr- stated at histcrical cost of acquistion- / construction less accumulated deprecation and impairment loss. Cost Net of input tax credit received receivable ] Includes related expend'fjre and pre-operative and project expenses for the period up to completion of ccnstrucc'on / assets are put to use The less or gain exchange rates on long term foreign currency loans attributable to fixed assets, effective From April 1, 2007 is adjusted to the cost Of respective fixed assets.

B Depreciation is provided on 'stright Line Method' it the rates prescribed in Schedule XIv thereto,

C Depreciation on impaired assets is calculated on ts residual value, if ary, on a systematic basil over its remaining useful life.

D Leasehold land is amortised Over the period of the lease.

E Trade Marks, Technical Know-hcw Fees a--d other similar rights are amories over their estimated economic life of ten years,

F Captalised costs incurred towards purchase / development of software are amortised using straight line method over Its useful life of lour years as estimated by the management' at the time of capitalisation

G Depreciation on additions I disposals the fixed assets during the year Is provided on pro-rate basis according to the period during which assets are put to use of Impairment of Assets:

The Company, at each balance sheet dlate, assesses whether-there is any Indication of Impairment of any asset end t or cash generating unit. if such Indication exists, assets are impaired by comparing carrying amount of each asset and > or cash generating unit to the recoverable amourt being higher of The net selling price or value in use. Value In use is determined from the present value of tie estimated Future cash flows from cp continuing use of the assets,

5 Borrowing Costs :

A Borrowing costs that Aft directly attributable Id the acquistion i construct ions of a qualifying asset are capitalised as part of the cost of such assets, UP to the date, the assets arc ready for their intended use

B Othpr borrowin g costs are recognised as an expense In the period in which they are Incurred,

L Sorrowing cost also include Exchange differences arising from Foreign Currency barrowings to the extent that they are regarded as an adjustment to Interest costs, 6 Investments:

A Long term and strategic investments are stated at' cost, less any dlmmution in the value other than temporary.

B Current investments, if any, are stated at lower Of post gad fair value determined On individual investment basis.

C Investments in shares of foreign subsidiary and other Companies are expressed in Indian Currency al the rales of exchange prevailing at the time when the original investments were made

7 Inventories:

A Inventory is valued at lower of cost arid net realisable value.

8 Revenue Recognition :

A service income is recognised as per the terms of contracts with the customers when it related services are performed or the agreed milestones are achieved.

B interest income Is recognised on time proportinate method.

c Revenue In respect of other Income 1s recognised when ni significant uncertainty as to its determination or realisation exists

9 Research and Development Cost:

A Expenditure on research and development If charged to the profit and loss account of the year in which it is Incurred

B Capital expenditure on reasearch and development is given the same treatment as Fixed Assets.

10. Retirement Beneflti:

A Defined contribution Plans;

The company contributes nn a defined contribution basis to Employees' Providenit Fund towards past employment benefits' all of which arc administered by the respective Government authorities, and has no further obligation beyond makig its contribution, which is expensed in the year to which it pertains.

B Defined Benefit Plans :

The gratuity scheme is administered through the Lire insurance Corporation or India [ LIC ]. The liability for toe defined benefit plan of Gratiotuy is determined on me basis of an actuarial valuation by an Independent actuary at 1he year end, which is calculated using projected Unit credit method.

Actuarial jams and losses which comprise experience adjustment and the effect of changes in actuarial assumptions are recognised ill the profit and loss Account.

C Leave Liability :

The leave encashmentenl scheme is administered through Life Insurance Cocporaticn of ndia's Employees' Group Leave Encashment tum Life Assurance [ Cash Accumulation j scheme. The employees of the company are entitled to leave as per the leave policy pf the company The liability on account of accumulated leave as on last day of the accounting year is recognised I net of the fair value of plan asset as it the balance sneet date ] at present value a1 the defined obligation at me balance sheet date based of the actuarial valuation cabled Out by an independent actuary using projected unit credit method.

11 Employee Separation Casts :

The compensation paid to the employees under Voluntary Retirement Scheme is expensed in the year of payment,

12 Provision for Bad and Doubtful Debts ! Advances :

Provision is made In accounts for Odd and doubtful debts t advances which in the opinoce of the management are considered doubtful of recovery.

13 Taxes or income :

A Tax expenses comprise of Current and deferred Lax.

B Current tax Is Measured at the amount expected to be paid on the basis of reliefs and deductions available inaccordance wiTh the provisions of the -ncome tax Act, 1961.

C Dclerred tax reflects the impact of current year timing differences between accounting and taxable Income and reversal oftiminf differences of cor her years. Deferred lax is measured based on the tax rates and taws that have been enacted pr substantively enacted as of the palance Sheet date. Deferred tax assets a'e recognised only to the extent there is reasonable certainty that sufficient future taxable income will be avalable againsl which such deferred tax assets can be realised and are reviewed at each balance sheet date-

14 Provisions, Contingent Liabilities and Contingent Assets :

provision, is recognised when the company has a p-tesent Obligation as a result of past events and It is probable that the outflow of resources wilt be required to settle the obligation and in respect of which reliable estimates can be made. A disclosure for contingent liability Is mace when there is a possible obligation, that may, but probably wilt not require an outflow of resources. When there is a possible Obligation or a present obligation in respect of Which the likellihood of outflow of resources Is remote, no provision f disclosure is made, Contingent assets are not recognised in the financial statements Provisions and contingencies are reviewed at each balance sheet date ard adjusted to reflect the correct management estimates.

15 the Company had made Advances of Rs. 55,78 Lacs for purchase of Capital Goods. Neither the Capital Goods are purchased nor advances are refunded to the company. NO Provision has been made in accounts in respect of Such doubtful advances.

16 Hit the year ended Hatch 31, 2D12, the company was using pre- revised Scheou-e VI to the Compan-es Act, 1956 for preparation and presentation of its financial Statements. During the year ended March 31, 2D-2, tile revised Schedule VI Stifled under Companies Act '956 has become applicable to the company, The company has reclassified p'eviouiyea' figures to conform to this years classification, ftir udopilun of revised schedule VI does not impact recognition and reasuremtht principles lui.owcri lo_ preparation of fina-rial statements. However, it s-grii I'canity Imparts present at on end diSclousers made in the financial statements, particularly presentation of Balance Sheet.

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Mar 31, 2011

1. Accounting convention:

The financial statements are prepared in accordance with the accounting principles generally accepted in India (Indian GAAP) and comply with the companies (Accounting Standards) Rules, 2006, issued by the central Government and relevant provisions of companies act, 1956 and are based on the historical cost convention as modified to include the revolution of certain fixed assets.

2. USE of Estimates :

Preparation of financial statement in conformity accepted accounting principles require management to make estimates and assumptions that effect the reported amounts of the financial statements and accompanying notes. Difference between the actual results and estimates, are recognized in the period in which the result are known/ materialized.

3. Fixed Assets and Depreciation & Impairment:

Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairments loss. Other attributable cost incurred for bringing the fixed assets to its intended use are added to the cost of fixed assets. Adjustments arising from exchange rate valuation relating to transaction in foreign currencies attributable to fixed assets are capitalized.

Depreciation on fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV of the companies act, 1956.

The carrying amount of assets is reviewed at each balance sheet date for and indication of impairment based on internal/ external factors. An impairment loss is recognized wherever the carrying amount is measured as the higher of the net selling price & the value in use determined by the present value of estimated future cash flows.

4. Investments:

Investments are classified as long term investments and are stated at cost. A provision for diminutions in the value of long term investments is made for each investment individually, only if such decline is other than temporary.

5. Inventories:

Inventories are valued as under:

Inventory Valuation Method

Finished Goods At cost or net realizable value whichever is lower

Machinery Parts At lower of cost or net realizable value. Cost is determined on "Weighted Average Basis".

6. Revenue recognisation :

Sales are shown net of damages, trade discount and special scheme discount sales do not include value added tax.

7. Foreign Currency Transactions :

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

Assets and liabilities related to foreign currency transaction remaining unsettled at the end of the year are translated at the year end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference having been recognized over the life of the contract. The difference in the translation of current assets and current liabilities is recognized in the profit & loss account.

8. Provision, Contingent Liabilities and contingent assets :

Provision are recognized when the company has present legal or constructive obligation, as /a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. These are reviewed at each year end and adjusted to reflect the best current estimate.

Contingent liabilities are disclosed by way on notes to Accounts.

Contingent Assets are neither recognized nor disclosed in the financial Statements.

9. Contingencies and events occurring after balance sheet date :

All contingencies and events occurring after balance sheet date which have a material effect on the financial position of the company are considered for preparing the financial statements.

10. Borrowing cost:

Borrowing cost utilized for acquisition, construction or production of qualifying assets are capitalized as part of cost of such assets till the activities necessary for its intended use are complete. All other borrowing cost are charged in statement of profit and loss of the year in which incurred.

11. Taxes on Income and Expenses :

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred Tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is reasonable certainty of realization of such assets. Other deferred tax assets recognized only to the extent there is reasonable certainty of realization in future. Such assets a are reviewed at each Balance sheet date to reassess realization.

12. Miscellaneous Expenditure :

Upfront interest paid on restructuring of term loans is amortized over the tenure of such /loans